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The Impact of Culture on the Perception of Employees and Organizational Productivity in Pharmaceutical Industries in Karachi
Anjum, Mehmood; Zia, Syed Mohammad; Shamsi, Aamir Firoz; Aziz, Abdul. Global Management Journal for Academic & Corporate Studies3.1 (2013): 210-218.
The research was conducted to test the hypotheses that suggested that there is a relationship between theculture of an organization and its impact on organizational productivity and employees' performance. The study maintains the variables; organizational culture accountable for business efficiency and also gives credit for the enhanced employee job overall performance. Using stratified and simple random sampling technique and survey questionnaire, outcomes were produced that were examined against the possible hypotheses; organizational culture has no impact on the perception of employee's job performance and organizational productivity. The results recommended the opposite and thus alternative hypotheses were chosen, and zero speculation was refused. 90% of the employees highly decided with the results and approved that there is impact of organizational culture on employee's outcome and organizational performance. The measured chisquare principles in both cases are higher than the tabulated principles. The study makes available facts of a favorable influence of organizational culture on employee's job performance of workers and organizational productivity, and also indicates offering improvement in the employee culture in order to bring improvement to performance.
Keywords : Zero Speculation, Organizational Productivity, Trouble Making Environment, Employee performance, Cultural Signs.
Flarvey Mackay said that workforce is most valuable asset and the knowledge and skills they have represent the fuel that drives the engine of organization. Employees are the main factor which plays a vital role from planning to execution of rules and strategies of organization. Employees are the central source of organization. These participants of organization are the ones who make sure day to day functions are operating and perform all activities as per strategy. Basically employees are the people who generate a company. While it is true that control performs an important part of guaranteeing a company be successful, it is the number of employees who follow through and put any ideal plan in action. Without employees, possibilities are company a continual would come to a halt.
Many sectors are using automated to substitute employees in specific job tasks; this is often beneficial and a useful cost-savings evaluate, however computer systems cannot substitute individual connections completely. There are certain components of operating that cannot successfully endure without the employees. Employees are an important asset of any business. There are many reasons why employees are important and when these factors are identified and valued, the sky is the limit. Businesses would have a pretty difficult time succeeding without employees.
In order to provide facts to find impact of organizational culture on employee's performance as well as the productivity of organization, the following hypotheses were developed and that were further examined.
HO: Organizational culture has no impact on the perception of employee's job performance and organizational productivity.
H1: Organizational culture has impact on the perception of employee's job performance and the productivity of organization.
2. Literature Review
2.1 Culture and Organizational Culture
Culture is arrangement of different features that show an organization and distinguish the firm from other one (Forehand and von Gilmer, 194). According to Dr. Hofstede (2001) "culture is the collective programming of the mind that distinguishes the members of one group or category of people from another." Schien (1990) explained that culture is set of different values and behaviors that may regarded to information to achievements. Kotterr and Heskett (1992) said that culture means fairly recognized set of behaviors, beliefs, and values of society have generally. Combined mind differentiates one group from another and determines cultural differences (Eren, 2006).
According to Morgan (1997) culture is "an active living phenomenon through which people jointly creates and recreates the world in which they live." When a group eliminates its inner essential and external difference issues, it gets to the allocated primary logic that figure out the culture of a group.
According to Wilkins and Patterson (1985), the perfect culture is recognized by an obvious supposition of value an obvious sense of combined proficiency and a capability to constantly apply the combined proficiency to new situations as well as to improve when it is necessary.
A variety of researches and analysis have been conducted that indicate the organizations with highly efficientculture performance are usually more efficient, given that they work under a particular set of conditions. The strength of employee culture can be found in how highly the employees endeavor to follow and maintain theculture of their organization. Organizational culture is the identity for an organization and identity shows its character and character is destiny.
According to (McNamara, 1999), organizational culture is an assortment of values, behaviors, disciplines, norms and requirements of execute. There are available highly effective and inadequate cultures in organizations that help make sure the performance of important values in organization in a more highly effective and gradual way, respectively. A highly effective organizational culture and good designed interpersonal skills of the employees help turn all circumstances into a win-win scenario and assures the success of organization aims and objectives. There are several aspects why employees stay in an organization and show commitment towards it. One of these aspects could be, working collaboratively and in categories or on certain projects that create feeling of commitment rather than just attraction.
2.2 Employee Performance
All organizations have been found with specific goals and objectives to achieve. Organizations use resources like men, machines, materials and money to achieve these goals and objectives. These resources are necessary but workforce is the most important than others. Workforce performs an essential part in doing projects for achieving the objectives and performance is a requirements or requirements for employee behavior at workplace. These requirements contains much more than how an employee does the work. Employees are ranked or categorized on how well they perform their duties compared with a set of requirements identified by the organization. According to Sabine Sonnentag and Michael Frese (2001), performance is the result aspect represents the impact or result of the person's behavior.
2.3 Organizational Culture-Performance Relationships
Values like personal satisfaction, paying attention to others, unity, responsibility, trust, quality, team spirit and reliability, seemed to be favorably related with the relative growth performance of organization. Calori and Sarnin (1991) performed a longitudinal research of the relationship between organizational culture and organizational performance. The research outcomes showed that apparent cultural profile was connected with the organizational growth. Calori and Sarnin (1991) further said that strong culture could be connected with great growth performance and it has founded that organizational culture strength is completely correlated with the relative growth.
Denison (1984) found, in his study of organizational culture, that companies with a participative culturereaped a return on investment, which averaged nearly twice that of firms with less efficient cultures. His conclusion was that cultural and behavioral aspects of organizations were intimately linked to both short-term performance and long-term survival (Petty et at., 1995).
Kandula (2006) explained that culture is a key of good performance. He further preserves that due to difference in organizational culture, same techniques do not generate same outcome for two organizations in the same industry and in the same location. A constructive and powerful culture can make a normal individual execute and accomplish remarkably were as a bad and poor culture may de-motivate an excellent employee to under execute and end up with no accomplishment. Therefore organizational culture has an effective and immediate part in employee performance. Murphy and Cleveland (1995) believe that research on culture will give rise to the knowing of performance of employees.
The beneficial strategy of employees towards the organization motivates the employees to accomplish business aims and objectives and instills in them the feeling of assurance, self motivation, commitment, dedication and believe in towards the systems of organization and policies; this gradually results in the accomplishment of productivity and towards the best possible objective of maximize the profit of organization. It is a serious need of an organization to provide a good culture and a friendly work environment and appropriate workplace to the employees to help ensure employees dedication, commitment and openmindedness, innovation, and long run greater customer care. This helps create aggressive advantage within the employees as well.
Organization culture is such an energy that preserves an organization together; it features as a "normative glue" that assures that all the important places in an organization are linked together. The culture of every organization explains it and its employees, and can make distinction from other organizations with the industry. Organizational culture usually includes such values and behaviors that are regarded to be a route towards attainments, success and ultimate achievements of organizational goals, and thus should be inculcated in every new employee of the organization and should be enhanced to every old and present employee as well. Employee culture is a part of an organization that can be seen 'on the surface' and is relatively quite recognizable to the naked eye through type of cultural signs, artifacts, official and casual styles of behaviors.
However, the less visible elements of an organizational culture are values, norms and the assumption that people create about the culture. Organizational culture preserves within itself both social and psychological elements (e.g. stories, rituals, symbols, jargons) and the authority, hierarchical formation and control systems (e.g. financial, appraisals, reward systems etc.)
Organizational culture and employee behavior have found to be favorably related to employee's commitment towards their jobs and ultimate accomplishment of organization's goals. Cultural variations should be considered and recognized by employees to be able to evolve to them and function efficiently across cultures. Employees communicate and perform together under the umbrella of organizational culture and thus based on mutual understanding and regard and guarantee of the security of each other person's privileges, rights, groups are progressed. These groups are experienced by two challenges: working together individuals into an efficient and efficient body of one, and affectively changing the exterior environment to be able to function properly. These effective groups then perform together and find solutions to problems and their distributed values and presumptions based on those solution are called the 'culture' that they follow. So culture is a very highly effective power at the workplace, which is knowingly and purposely harvested and is approved on to the incoming employees. The people are the main concentrate within the organization and they are regularly enclosed by the culture.
The organization demonstrates a belief in their employee through shared decision making and encouragement of new ideas. This belief is reflected in the language used by the organization. The organization views the employee as extended family, and there is an absence of rigidity of command.
There are 3 categories of employees and their difference of cultural implementation;
* Skilled workers-these workers put in every attempt to uphold organizational employee culture and increase their performance as well as long term productivity of organization;
* Semi-skilled workersthese employees are just pay attention to their work and being paid for it, they rarely put their efforts in accomplishing organizational goals;
* Un-skilled workersthese workers generally do not like their work and work profile and in turn create a troublemaking environment and that is harmful for the organizational culture and also affects the performance of other employees. Onion Model explains the employee culture, every part of red onion peel off shows a new part that in turn is covering another part. This symbolizes the employees who collaboratively keep the culturein the organization and are connected through that culture.
Karachi is a metropolitan city of Pakistan that has various cultures and represents different social behaviors from different parts of the country. The study is an attempt of employee's culture on organizational productivity in the pharmaceutical industry in Karachi over the timeframe.
The investigate hypotheses were in accordance with the question: Does culture of organization have any impact on the performance of employees and the productivity of organization? If yes, then how in terms of theperception of employees?
3.1 Survey Design and Method
The research is depended on the sampling gathered and the data collected through samples which are taken from the permanent employees of pharmaceutical companies in Karachi.
The variables are only being noticed and not managed and the hypothesis is based on the relationship between culture of organization and productivity of organization and is legitimate only for pharmaceutical sector employees. Keeping in mind the effective coverage and lower cost, a stratified sampling technique was employed to select the participants for the research. The pharmaceutical industries were stratified hierarchically and the strata based on the year they were established. Employees were selected from each different unit from pharmaceutical industries and were divided into 3 strata: senior staff, management staff, and junior staff. Only 130 employees were selected to represent the sample size by simple random sampling technique. The data gathered is quantitative and was acquired through surveying of about 23 units with 130 employees. Research was created on the gathered data and hypotheses were examined against them.
3.2 Statistical Tools
In this research, Chi square independence test is applied. Logic behind using this test is to compare the observed (O) frequencies with the frequencies that would be expected (E) if the null hypothesis of no impact is true. The test statistic which has been used is as follows:
X2=I(0-E)2/E where O represents observed frequency and E represents Expect frequency.
Null hypothesis developed for this research is organizational culture has no impact on job performance and productivity of organization and alternate is vice versa. If the null hypothesis of no impact is true, then observed and expected frequencies should be near to equal, resulting in a relatively small value of the test statistic and we will fail to reject null hypothesis. But on the other hand if X2 value is high, we will reject null hypothesis and conclude that there is an impact of organizational culture on employee's job performance and the productivity of organization.
3.3 Justification of Choosing Independence Test
The focus of the study is to evaluate qualitative aspect of an organization such as organizational culture, performance of employees and productivity. Evaluation of these components requires a non parametric statistical test to be used. Chi-Square test of independence best suits for the nature of this study and it is useful to check association and impact of variables which are qualitative in nature.
3.4 Statistical Analysis
The 130 employees chosen through simple unique random testing technique were given 130 surveys questionnaires based on appropriate questions regarding the relationship between the culture of organization, employee's performance and productivity of organization and 87 out of 130 employees' reactions were legitimate. These responses were subjected to the chi-square test for the relationship between organizational culture and long term productivity of the organization.
4. Results and Observations
In general, 87% employee's responses portrayed their opinions that there is a positive impact of organizationalculture on organizational productivity. However, 87 employees replied about their perception that there is a positive impact of organizational culture on organizational productivity and employee performance in context with the pharmaceutical industry in Karachi. These results support hypothesis 1 earlier made regarding the positive relationship between the culture of organization and the perception of employees regarding organization productivity.
It is typical work out among researchers; they are always willing to understand workplace environment and its impact on the dynamics of organization. Employees are the most important device in any organization and numerous researches have been performed in the past to figure out how employees effect the organization as well as how the organization affects employees. Formerly researches have shown the results on the relationship between employee and the productivity of organization and culture and leadership and motivation. The results proposed that workplace culture is an integral element in any organization and has positive impacts on employee job performance as well as organization productivity.
In the year of globalization, many multinational companies emerged on the scene. These mergers of severalcultures have been pioneers of a single cultural model by multinational companies and this concept of have brought major change in organizational behavior and also in employees' performance.
This research, an effort has been made to come across rate of outcome to feedback and performance of employees. The concentrate of this research is pharmaceutical industry in Karachi.
Results of the existing research recommend that there is a strong impact of organizational culture on employee's performance and productivity. Organizational behavior and its research could be linked to psychology, sociology and anthropology in universal. Each of these researches has an important impact on organizational behavior.
The study shows that a healthy workplace culture encourages and motivates the employees to function beyond organization's expectations. The performance of employees and motivation enhance when they work in a good organizational culture. A strong organizational culture has a positive impact on employee's performance.
Research performed in the last provided that organization culture constituted of such values, assumptions and beliefs that are for the advantage of the organization as well as for the employees.
The present study shows a strong positive connection between workplace culture and employee performance as well as the productivity of organization in the long run. There is a positive connection between the values that we analyzed in the existing research.
* Organizations should endeavor to figure out circumstances under which employees perform better.
* The identified circumstances should be enforced and tried to be used in the organization to be able to get the best possible production.
* Organizations should try to sustain a powerful and positive employee culture for the advantage of the organization and its employees.
* Every employee should be acquainted with the organizational culture.
* For researchers it is suggested that further studies should be performed in this respect in other industries as well.
All results and findings validate two alternative hypothesis and data provide adequate evidence against null hypothesis. On the basis of data both null hypotheses have rejected. It can be determined that there is important effect of culture on the perception of both employees' and organizational performances.
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