A STUDY ON ORGANISATIONAL CULTURE AND ITS IMPACT ON

EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT LTD

BY

DIVYA A.V
Reg.No:961217631017

A PROJECT REPORT
Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirements

for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY

CHENNAI – 600 025

JUNE 2019
 Loyola INSTITUTE OF TECHNOLOGY AND SCIENCE,
THOVALAI , KANYAKUMARI

CERTIFICATE

This is to certify that the project entitled “ A STUDY ON ORGANISATIONAL CULTURE

AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT

LTD” is done by DIVYA A.V (Reg. No:961217631017) student of Master of Business

Administration during the academic year 2017-2019 is submitted for the evaluation

on…………………………………….

Internal examiner External Examiner

Mrs.D.Amutha,M.Sc,M.S.,MBA.,M.Phil,
Head of the Department,
Department Of Management Studies,
LITES, Thovalai .
 DEPARTMENT OF MANAGEMENT STUDIES
Loyola INSTITUTE OF TECHNOLOGY AND SCIECE,
THOVALAI, KANYAKUMARI

CERTIFICATE

This is to certify that the project entitled “A STUDY ON ORGANISATIONAL CULTURE

AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT

LTD” is done by DIVYA A.V (Reg. No:961217631017) student of Master of Business

Administration during the academic year 2016-2018 is submitted for the evaluation

on…………………………………….

Signature of the guide Signature of the HOD

Mrs.D.Amutha,M.Sc,M.S.,MBA.,M.Phil, Mrs.D.Amutha,M.Sc,M.S.,MBA.,M.Phil,
Head of the Department, Head of the Department,
Department Of Management Studies, Department Of Management Studies,
LITES, Thovalai . LITES, Thovalai .
 ACKNOWLEDGEMENT

First I am very much greatful to God Almighty who helped me to complete the project

work and I acknowledge with sincere gratitude to all those who helped me to do the project.

I am grateful to our chairman Dr. M.T.NICHOLAS for his support, encouraging and

motivating words.

I sincerely thank to Mrs. D.AMUTHA, Head of the Department, Management Studies,

who was being a source of encouragement by providing me to undertake the project and I

express my deepest thanks to her valuable guidance throughout the project work.

I also thank all other faculty members of the Department of Management Studies,

Loyola Institute of Technology and Science, Thovalai for their support.

My sincere thanks to my guide Mrs. D.AMUTHA for being a great source of

inspiration and support.

My heartfelt gratitude to the employees of the organization for providing valuable

information for the study.

I am very much thankful to my parents, family members and my friends for their

encouragement and support to finalize this report.

DIVYA A.V
 DECLARATION

I hereby declare that the project report titled “A STUDY ON ORGANISATIONAL

CULTURE AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION

EDUCATION PVT LTD” submitted in partial fulfillment for the award of Master of Business

Administration, of the Anna University, Chennai, is a record of independent research work

carried out by me under the guidance of Mrs.D.Amutha, Head of the Department, Department

of Management Studies, Loyola Institute of Technology and Science. I also declare that this

project report is the result of my own effort and has not been submitted earlier for the award of

any other Degree/Diploma or Associate ship by Anna University or any other University.

Place:
Date: Signature
 ABSTRACT

Organizations are among the key units of the society. During their establishment and

development, a specific kind of organizational culture eventually appears. The culture of an

organization consists of the values and beliefs of the people in an organization. The

organizational culture usually has values and beliefs that support the organizational goals. Every

organization has a unique culture. Each organization’s culture differs from what it values most,

what it expects and accepts from its employees, and how it gets things done. The purpose of

organizational culture is to improve solidarity and cohesion, and to stimulate employees

enthusiasm and creativity to improve the organization’s economic efficiency. In addition,

organizational culture greatly influences employee behavior. The aim of this study is to find out

how organizational culture affects employee behavior. It is important to understand that in order

to improve the organization’s business management and let the organizational culture have the

right impact on employees. The results of the study indicate that organizational culture mainly

impacts motivation, promotes individual learning, affects communication, and improves

organizational values, group decision making and solving conflicts.

 TABLE OF CONTENTS

SL.NO PARTICULARS PAGE NO

CHAPTER 1
INTRODUCTION
1.1 Introduction about the study 1

1.2 Industry profile 5

1.3 Company profile 8

1.4 Statement of the problem 11

1.5 Objectives of the study 11

1.6 Significance of the study 11

1.7 Scope of the study 12

1.8 Period of the study 12

1.9 Area of the study 12

1.10 Limitation of the study 12

1.11 Chapterization 12
CHAPTER 2
REVIEW OF LITERATURE
2.1 Introduction 13

2.2 Review of literature 13

2.3 Conclusion 24
CHAPTER 3
RESEARCH METHODOLOY
3.1 Introduction 25

3.2 Research design 25

3.3 Methods and instruments of collection 25

3.4 Sampling technique 26

3.5 Population size 26

3.6 Sample size 26

3.7 Statistical tools 26

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.1 Introduction 29
4.2 Analysis of data 29
CHAPTER 5
FINDINGS,SUGGESTIONSANDCONCLUSIONS
5.1 Findings 58

5.2 Suggestions 59

5.3 Conclusions 60

5.4 Bibliography 60

5.5 Appendix 61
 LIST OF TABLES
SL.NO TITLE PAGE NO
4.1 Age of the respondents 29
4.2 Gender of the respondents 30
4.3 Marital status of the respondents 31
4.4 Educational qualification of the respondents 32
4.5 Monthly income of the respondents 33
4.6 Opinion regarding recall of brand 34
4.7 Opinion regarding consumption of Milma milk 35
4.8 Opinion about Milma awareness 36
4.9 Source of purchasing Milma products 37
4.10 Opinion regarding customers awareness about the brand 38
4.11 Best competitor of Milma 39
4.12 Brand different from its competitors 40
4.13 Availability of Milma milk 41
4.14 Differentiating the factor of Milma brand 42
4.15 Opinion regarding quality of milk 43
4.16 Expectation of Milma 44
4.17 Satisfaction towards Milma dairy products 45
4.18 Satisfaction level towards new Milma products 46
4.19 Comparitive to other brands 47
4.20 Purchase towards Milma again 48
4.21 Brand recommendation 49
4.22 Brand recall 50
4.23 Brand loyalty 51
4.24 Customers stick to the same product if their price is increased 52
4.25 Brand image 53
4.26 Opinion regarding brand image of Milma milk 54
4.27 Performance of Milma 55
4.28 Relationship between quality and recommend the product 56

LIST OF CHARTS
 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY

Organizational culture is defined as the underlying beliefs, assumptions, values and ways
of interacting that contribute to the unique social and psychological environment of an
organization. In a fundamental sense, a culture exists when people come to share a common
frame of reference for interpreting and reacting towards one another and towards the world in
which they live. This common frame of reference includes language, values, beliefs and
interpretation of experiences. It is reflected in customs, folkways, communication and observable
features of the community including rituals, rites, celebrations, legends, myths and heroic saga.
The culture creates good working relationships and promotes ethical communication between
employees. It also help employees in making decisions in the situations where there are no
formal rules or policies, situations that haven’t been experienced yet.
It affects the organization's productivity, performance and provides guidelines on
customer care and service, product quality and safety, attendance and punctuality, concern for
the environment. Organizational culture includes an organization's expectations, experiences,
philosophy, and values that hold it together, and is expressed in its self-image, inner workings,
interactions with the outside world, and future expectations. It is based on shared attitudes,
beliefs, customs, and written and unwritten rules that have been developed over time and are
considered valid. Also called corporate culture.
1.1.1 Characteristics of Organisational Culture

Collective:
It is assumed that cultures are not created by individuals alone, but as a result of
collective actions. Belonging to a culture involves believing what the group believes and
handling things the way they handle them.
Emotional:
The substance and forms of culture are filled with emotions as well as meanings, which is
why they help to manage and overcome anxieties. Members of a group seldom doubt the core
values and attitudes of the organisational culture.
Historic:
Cultural phenomena are connected to the history of the organisation and its traditions and
cannot be separated or changed rapidly.
Symbolic:
Symbols are on the one hand a specific type of cultural form, but on the other hand they
are the most general and persuasive form of culture. Furthermore symbols are not directly
seizable, but have to be interpreted in order to understand their meaning.
Dynamic:
Even though culture is connected to the organisation’s history it still is not static, but
rather dynamic. Culture changes continually due to several factors.
Diffuse:
The more complex the circumstances are, the more diffuse the elements of
organizational culture will get.
Robbins and Judge (2011) examine seven basic characteristics of organisational culture:
Innovation and risk taking; Attention to detail; Outcome, People orientation; Team orientation;
Aggressiveness; and Stability.
1.1.2 Elements of Organizational Culture
There are many possible elements of organizational culture. The above definition
include following the elements of organizational culture.
a) Organizational Values
Values reflect what we feel is important. Organizations may have core values that reflect
what is important in the organization. These values may be guiding principles of behaviour for
all members in the organization. The core values may be stated on the organization's website. For
example, an organization could state that their core values are creativity, humor, integrity,
dedication, mutual respect, kindness and contribution to society. However, the true values can
only be tested within the organization, through the employees, based on their collective opinion
about the experience of the values.
b) Ethics
It is the code of moral principles and values that distinguishes the right behavior from
wrong. Ethical values are different from rule of law which is dictated by the legal system of the
country and have to be followed anyway. However, the laws themselves are based on some
moral principles and thus there is some natural overlap between ethics and the laws. The
geographic location of the organization and the culture of the place also influence the ethics, this
is particularly important for multi-national organization as well as domestic organization.
Irrespective how an organization depicts its ethical values, they can be tested by the two criteria.
Commitment: Whether the organization views its employees as resources required for
business activities or it intends to invest in long term relationship with its employees; reflects the
organization’s commitment to its employees. Commitment can be in various forms, maternity
leave, life-work balance, unpaid leaves, it’s strategies for downsizing or globalization.
Career: The ethical values are also echoed in organization’s interest and investment in
the career development of its employees. Whether it values specialization and narrow career
paths that runs the risk of being outdated along with technology or it values broad skill
development and offers training in new technologies at its own cost.
c) Organizational Beliefs
Beliefs that are part of an organization's culture may include beliefs about the best ways
to achieve certain goals such as increasing productivity and job motivation. For example, an
organization may convey the belief that the expression of humor in the workplace is an effective
way to increase productivity and job motivation.
d) Empowerment
The social culture and the structure of the organization influences the underlying values
related to the amount of employee empowerment.
e) Control/Decision
Management by nature is about control, the difference is how it enforces it. Well defined
guidance, job description and authority of taking decisions are formal methods of control, while
team or collective decision making is a social or cultural method of control. The functional or
divisional structure encourages formal control while process or network structures promote a
culture of employee empowerment.
f) Responsibility
The authority of decision making is closely related to issue of responsibilities. The
culture of responsibility is measured by observing whether the individuals are expected to take
responsibility of their decisions or there is a collective responsibility in case of team decisions.
g) Organizational Norms
Norms reflect the typical and accepted behaviours in an organization. They may reflect
the values and beliefs of the organization. They may reflect how certain tasks are generally
expected to be accomplished, the attributes of the work environment, the typical ways that
people communicate in the organization and the typical leadership styles in the organization. For
example, the work environment of a company may be described as relaxed, cheerful, and
pleasant. Moreover, the organization may have a participative decision making processes in
which many people in the organization are able to express their views concerning important
decisions. Also, an organization may have many meetings to discuss ideas.
1.1.3 Importance of the Organizational Culture
Organizational culture occupies an important concept for a few reasons. First,
understanding the culture of an organization may be helpful for applicants. They may have a
better idea about whether they would like to work for a company. Second, understanding the
culture of an organization may help in training new employees. Third, understanding
organizational culture may help leaders to identify possible sources of problems in the
organization. Further organizational cultural signification be elaborated as under.
1. Organizational culture motivates to employees for new innovation, good product
quality and creative thinking.
2. Responsiveness to customer needs and extraordinary devotion to customer services, so
organizational culture is important for organization.
3. Organizational culture helps to face global competition, changing patterns of
technology and environment.
4. Organizational culture teaches every members of organization how behave to
stakeholder of organization through organizational behaviour.
5. A strong organizational culture provides many fruitful point of any organization. For
example high moral in the employees, create a competitive environment in the organization.
6. Employees have company loyalty and give unmatched services to customers.
Further, the importance of organizational culture may be dealt with leadership and change too.
Organizational Culture and Leadership:
There may be at least three ways in which leadership is important with respect to
organizational culture. First, a leader of an organization may play an important role in identifying
the elements of the organization's culture. The leader could make a list of the organization's
current values, beliefs and norms. Second, after identifying the current elements of the
organization's culture, the leader can make evaluations of the elements of organizational culture
that may be negative. The leader could make a list of the specific values, beliefs, and norms that
may contribute to major problems in the organization (e.g., a lack of job motivation). Third,
after identifying the possible negative elements, the leader could develop strategies to foster a
positive organizational culture change. The leader could make a list of the elements of a more
ideal culture, develop specific ways to communicate the changes and develop techniques to
motivate people to adopt the new culture.
Organizational Culture Change:
There may be many reasons that is why the culture of an organization needs to be
changed. These reasons may include lack of morale, lack of job motivation, lack of job meaning
and changes in the business (e.g., the development of a new product) that would require a change
in the way things are done in the organization. For example, there may be too much micro
management in a company. It may be better if employees had more autonomy. This may increase
morale. Sherman (1989) found that unit morale was positively correlated with automony.
Because this finding is correlation, we cannot make causal conclusions. This process of culture
change should involve all members of the organization. This process of culture change could
involve surveys in which members describe specific elements of the organizational culture.
THE EFFECT OF ORGANIZATIONAL CULTURE ON PERFORMANCE
The fact is that today, given the hyper-competitiveness, attaining and maintaining
competitiveness becomes increasingly difficult and uncertain. The situation is very clear that the
organization will succeed or it will simply disappear from the market. Failure is not something
that organizations seek voluntarily; instead, it usually turns out that the cause of failure is the
lack of understanding of the importance of significant external factors or unrealized profit from
organizational resources and capacity.
Layers of Organisation Culture
Cultural Symbols
Shared Behaviours
Cultural Values
Shared Assumptions
 Cultural Symbols are words, gestures and picture or other physical objects that carry a
particular meaning within a culture.
Shared Behaviours are norms in the organisation which are more vixsible snd somewhat easier
to change than values.
Cultural Values represents collective beliefs, assumptions and feelings about what things are
good, normal, rational. And valuable.
Shared Assumptions represent basic beliefs about reality, human nature, and the way things
should be done.

METHOD OF MAINTAINING ORGANISATIONAL CULTURE

Methods of Maintaining Organisational

Culture:
What managers and team pay attention
to
Reactions to organisational crises
Managerial role modeling
Criteria for rewards
Criteria for selection and promotion
Organisational rites, ceremonies, stories

Recruitment of Employee Removal of Employee

who fit the culture Organisational Culture who Deviate from the
culture
1.2 INDUSTRY PROFILE