This document summarizes the organizational culture of C.L. Gupta Ltd, an export firm located in Moradabad, India. It discusses how organizational culture is defined by the shared behaviors, values, and beliefs of employees. A strong organizational culture with values aligned across the employees helps a company achieve its goals more productively. The success of C.L. Gupta Ltd is attributed to carefully selecting employees that match the company's culture and reinforcing shared values through various efforts.
A class presentation given in class in a team of three. Green HRM is an merging concept which every organisation needs to follow for the betterment of the environment.
A project study report on the training undertaken at Aerial Telecom Solutions titled ' Employee Engagement at Aerial Telecom.' - QUESTIONNAIRE BASED STUDY
This ppt is all about my Final year project which contains Rural Marketing Strategy of HUL and Findings, Recommendations and Limitations of the Project.
International Human Resource Management policy convergence and divergenceAparrajithaAriyadasa
FACTORS EFFECTING CONVERGENCE AND DIVERGENCE
Factors affecting the choice between convergence and divergence, Harris and Brewster (1999)
The extent to which there are well-defined local norms. •
The degree to which an operating unit is embedded in the local • environment.
The strength of the flow of resources – finance, information and people • – between the parent and the subsidiary.
The orientation of the parent to control. •
The nature of the industry – the extent to which it is primarily a domestic industry at local level.
The specific organizational competencies, including HRM, that are critical for achieving competitive advantage in a global environment.
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby,
reducing regional imbalances, assuring more equitable distribution of national income and
wealth. MSMEs are complementary to large industries as ancillary units and this sector
contributes enormously to the socio-economic development of the country. The Sector
consisting of 36 million units, as of today, provides employment to over 80 million persons.
The Sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. The MSME sector has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth.
OCTAPACE culture is extremely important for promoting the organizational effectiveness
and good Governance. In this context, the present paper is an endeavour to identify the major
factors responsible for non-promoting of organizational effectiveness among the managerial
and non-employees about the prevailing OCTAPACE culture and to know the preventive
measures for the same with special reference to Services Sector
Organizational Culture Dynamics (Organizational Management)Manu Alias
A presentation on Organizational culture dynamics and it's characteristics, importance, role, types, etc. It also talks about the corporate culture and it's features.
A class presentation given in class in a team of three. Green HRM is an merging concept which every organisation needs to follow for the betterment of the environment.
A project study report on the training undertaken at Aerial Telecom Solutions titled ' Employee Engagement at Aerial Telecom.' - QUESTIONNAIRE BASED STUDY
This ppt is all about my Final year project which contains Rural Marketing Strategy of HUL and Findings, Recommendations and Limitations of the Project.
International Human Resource Management policy convergence and divergenceAparrajithaAriyadasa
FACTORS EFFECTING CONVERGENCE AND DIVERGENCE
Factors affecting the choice between convergence and divergence, Harris and Brewster (1999)
The extent to which there are well-defined local norms. •
The degree to which an operating unit is embedded in the local • environment.
The strength of the flow of resources – finance, information and people • – between the parent and the subsidiary.
The orientation of the parent to control. •
The nature of the industry – the extent to which it is primarily a domestic industry at local level.
The specific organizational competencies, including HRM, that are critical for achieving competitive advantage in a global environment.
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby,
reducing regional imbalances, assuring more equitable distribution of national income and
wealth. MSMEs are complementary to large industries as ancillary units and this sector
contributes enormously to the socio-economic development of the country. The Sector
consisting of 36 million units, as of today, provides employment to over 80 million persons.
The Sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. The MSME sector has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth.
OCTAPACE culture is extremely important for promoting the organizational effectiveness
and good Governance. In this context, the present paper is an endeavour to identify the major
factors responsible for non-promoting of organizational effectiveness among the managerial
and non-employees about the prevailing OCTAPACE culture and to know the preventive
measures for the same with special reference to Services Sector
Organizational Culture Dynamics (Organizational Management)Manu Alias
A presentation on Organizational culture dynamics and it's characteristics, importance, role, types, etc. It also talks about the corporate culture and it's features.
Building an ethical workplace culture requires equal skills in policy-making and relationship-building, and equal emphasis on procedures and values. Structural concerns like codes, training and clear criteria matter, but so do storytelling, mentoring and presiding over an organization’s routines and ceremonies. In an ideal workplace, structures and relationships will work together around core values that transcend self-interest. Core values will inspire value-creating efforts as employees feel inspired to do what is right, even when the right thing is hard to do. The ethics of our workplace cultures matter because the work itself matters and requires the cooperation that only positive, virtuous ethics can sustain. Compliance keeps us out of trouble, but virtuous ethics will create value for our co-workers and for our organization.
Organisational culture as a Determinant of organisational developmentinventionjournals
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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1. EXECUTIVE SUMMARY
This project report is based on detail study of organizational culture in export firm
with special reference to C. L. Gupta Ltd. The success of any company depends in part on
the match between individuals and the culture of the organization. Organizational culture
is the set of operating principles that determine how people behave within the context of
the company. Underlying the observable behaviors of people are the beliefs, values, and
assumptions that dictate their actions.
Managers need an accurate understanding of the organization’s culture in order to
direct activities in a productive way and to avoid the destructive influence of having
employees who are not committed to the company’s goals. A shared sense of purpose
starts with the hiring process and continues with careful attention to how employees are
motivated and rewarded for their efforts. Managers need to continually transmit the values
of the culture through efforts such as story telling, rituals and firm-sponsored social
events, as well as consistent positive feedback that gives each member of the organization
a sense of importance. It is important for individual values to match organizational culture
because a culture of “shared meaning or purpose” results in actions that help the
organization achieve a common or collective goal. An organization will operate more
productively as a whole when key values are shared among the majority of its members.
To that end, employees need to be comfortable with the behaviors encouraged by the
organization so that individual motivation and group productivity remain high. High
functioning organizations are comprised of individuals whose overt behaviors are
consistent with their covert values.
1
2. INTRODUCTION
Organizational culture is the workplace environment formulated from the
interaction of the employees in the workplace. Organizational culture is defined by all of
the life experiences, strengths, weaknesses, education, upbringing, and so forth of the
employees. While executive leaders play a large role in defining organizational culture by
their actions and leadership, all employees contribute to the organizational culture.
Matching individuals to organizations is a crucial part of success for any company.
The match between people and the companies for which they work is determined by the
kind of organizational culture that exists. The degree to which an organization’s values
match the values of an individual who works for the company determines whether a
person is a good match for a particular organization.
The collective rules by which an organization operates define its culture. These
rules are formed by shared behaviors, values and beliefs. Culture forms the basis for how
individuals operate within the context of the organization. The way a group or individual
behaves, defines what is “normal” and sanctions what is not normal is determined by his
or her culture. Culture can be defined either by a set of observable behaviors or by the
underlying values that drive behavior. In large organizations, vision statements, mission
statements and statements of values are often formalized to describe the company’s
culture.
Moradabad is renowned for brass work and has carved a niche for itself in the
handicraft industry through out the world. These handicrafts are skillfully crafted by the
gifted artisans of Moradabad. It is through their sheer hard work, that they are able to
bring such perfection in their creations.
Brass metal is an alloy of copper and zinc and the quality of the metal depend on
the percentage composition of both these metals. 65% copper and 35% zinc makes the best
alloy. The alluring shine of brass is what makes it very attractive. The range of products
available in brassware is wide. From napkin rings to huge sculptures all are available. The
most important products are Candle Stands, Flower Vases, Lamps, artifacts etc. C L Gupta
are 118 year old company in Moradabad, a city 160 kms. from Delhi. An 100% Export
Orient Unit.
2
3. ORGANIZATIONAL CULTURE
Organizational culture is an idea in the field of organizational studies and
management which describes the psychology, attitudes, experiences, beliefs and values
(personal and cultural values) of an organization. It has been defined as "the specific
collection of values and norms that are shared by people and groups in an organization and
that control the way they interact with each other and with stakeholders outside the
organization."[1]
Ravisi and Schultz (2006) state that organizational culture is a set of
shared mental assumptions that guide interpretation and action in organizations by
defining appropriate behavior for various situations. Although it’s difficult to get
consensus about the definition of organizational culture, several constructs are commonly
agreed upon – that organizational culture is holistic, historically determined, related to
anthropological concepts, socially constructed, soft, and difficult to change.
This definition continues to explain organizational values, described as "beliefs
and ideas about what kinds of goals members of an organization should pursue and ideas
about the appropriate kinds or standards of behavior organizational members should use to
achieve these goals. From organizational values develop organizational norms, guidelines,
or expectations that prescribe appropriate kinds of behavior by employees in particular
situations and control the behavior of organizational members towards one another."
Strong/weak cultures
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These type of meetings are important in order to establish a strong culture in the
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Strong culture is said to exist where staff respond to stimulus because of their
alignment to organizational values. In such environments, strong cultures help firms
3
4. operate like well-oiled machines, cruising along with outstanding execution and perhaps
minor tweaking of existing procedures here and there.
Conversely, there is weak culture where there is little alignment with
organizational values and control must be exercised through extensive procedures and
bureaucracy.
Research shows that organizations that foster strong cultures have clear values that
give employees a reason to embrace the culture. A "strong" culture may be especially
beneficial to firms operating in the service sector since members of these organizations are
responsible for delivering the service and for evaluations important constituents make
about firms. Research indicates that organizations may derive the following benefits from
developing strong and productive cultures:
Better aligning the company towards achieving its vision, mission, and goals
High employee motivation and loyalty
Increased team cohesiveness among the company’s various departments and divisions
Promoting consistency and encouraging coordination and control within the company
Shaping employee behavior at work, enabling the organization to be more efficient
Characteristics of Healthy Organizational Cultures
Organizations should strive for what is considered a “healthy” organizational
culture in order to increase productivity, growth, efficiency and reduce employee turnover
and other counterproductive behavior. A variety of characteristics describe a healthy
culture, including:
Acceptance and appreciation for diversity
Regard for and fair treatment of each employee as well as respect for each employee’s
contribution to the company
Employee pride and enthusiasm for the organization and the work performed
Equal opportunity for each employee to realize their full potential within the company
Strong communication with all employees regarding policies and company issues
Strong company leaders with a strong sense of direction and purpose
Ability to compete in industry innovation and customer service, as well as price
Lower than average turnover rates (perpetuated by a healthy culture)
Investment in learning, training, and employee knowledge
4
5. Typologies of organizational cultures
Several methods have been used to classify organizational culture. While there is
no single “type” of organizational culture and organizational cultures vary widely from
one organization to the next, commonalities do exist and some researchers have developed
models to describe different organizational cultures. Some are described below:
Power distance - The degree to which a society expects there to be differences in the
levels of power. A high score suggests that there is an expectation that some individuals
wield larger amounts of power than others. A low score reflects the view that all people
should have equal rights.
Uncertainty avoidance reflects the extent to which a society accepts uncertainty and risk.
Individualism vs. collectivism - individualism is contrasted with collectivism, and refers to
the extent to which people are expected to stand up for themselves, or alternatively act
predominantly as a member of the group or organization. However, recent researches have
shown that high individualism may not necessarily mean low collectivism, and vice versa.
Research indicates that the two concepts are actually unrelated. Some people and cultures
might have both high individualism and high collectivism, for example. Someone who
highly values duty to his or her group does not necessarily give a low priority to personal
freedom and self-sufficiency
Masculinity vs. femininity - refers to the value placed on traditionally male or female
values. Male values for example include competitiveness, assertiveness, ambition, and the
accumulation of wealth and material possessions.
O’Rielly, Chatman & Caldwell (1991) developed a model based on the belief that cultures
can be distinguished by values that are reinforced within organizations. Their
Organizational Profile Model (OCP) is a self reporting tool which makes distinctions
according seven categories - Innovation, Stability, Respect for People, Outcome
Orientation, Attention to Detail, Team Orientation, and Aggressiveness. The model is not
intended to measure how organizational culture effects organizational performance, rather
it measures associations between the personalities of individuals in the organization and
the organization’s culture.
Daniel Denison’s model (1990) asserts that organizational culture can be described by four
general dimensions – Mission, Adaptability, Involvement and Consistency. Each of these
general dimensions is further described by the following three sub-dimensions:
5
6. Mission -Strategic Direction and Intent, Goals and Objectives and Vision
Adaptability -Creating Change, Customer Focus and Organizational Learning
Involvement - Empowerment, Team Orientation and Capability Development
Consistency -Core Values, Agreement, Coordination/Integration
Denison’s model also allows cultures to be described broadly as externally- or internally-
focused as well as flexible versus stable. The model has been typically used to diagnose
cultural problems in organizations.
Deal and Kennedy
Deal and Kennedy defined organizational culture as the way things get done
around here. In relation to its feedback this would mean a quick response and also
measured organizations in ition, such as oil prospecting or military aviation.
The Process Culture occurs in organizations where there is little or no feedback. People
become bogged down with how things are done not with what is to be achieved. This is
often associated with bureaucracies. While it is easy to criticize these cultures for being
overly cautious or bogged down in red tape, they do produce consistent results, which is
ideal in, for example, public services.
Charles Handy
Charles Handy (1985) popularized the 1972 work of Roger Harrison of looking at
culture which some scholars have used to link organizational structure to organizational
culture. He describes Harrison's four types thus:
A Power Culture which concentrates power among a few. Control radiates from the
center like a web. Power and influence spread out from a central figure or group. Power
desires from the top person and personal relationships with that individual matters more
than any formal title of position. Power Cultures have few rules and little bureaucracy;
swift decisions can ensue.
In a Role Culture, people have clearly delegated authorities within a highly
defined structure. Typically, these organizations form hierarchical bureaucracies. Power
derives from a person's position and little scope exists for expert power. Controlled by
procedures, roles descriptions and authority definitions. Predictable and consistent systems
and procedures are highly valued.
By contrast, in a Task Culture, teams are formed to solve particular problems.
Power derives from expertise as long as a team requires expertise. These cultures often
6
7. feature the multiple reporting lines of a matrix structure. It is all a small team approach,
who are highly skilled and specialist in their own markets of experience.
A Person Culture exists where all individuals believe themselves superior to the
organization. Survival can become difficult for such organizations, since the concept of an
organization suggests that a group of like-minded individuals pursue the organizational
goals. Some professional partnerships can operate as person cultures, because each partner
brings a particular expertise and clientele to the firm.
Factors and Elements Influencing Organizational Culture
G. Johnson described a cultural web, identifying a number of elements that can be
used to describe or influence Organizational Culture:
The Paradigm: What the organization is about; what it does; its mission; its values.
Control Systems: The processes in place to monitor what is going on. Role cultures
would have vast rulebooks. There would be more reliance on individualism in a power
culture.
Organizational Structures: Reporting lines, hierarchies, and the way that work flows
through the business.
Power Structures: Who makes the decisions, how widely spread is power, and on
what is power based?
Symbols: These include organizational logos and designs, but also extend to symbols
of power such as parking spaces and executive washrooms.
Rituals and Routines: Management meetings, board reports and so on may become
more habitual than necessary.
Stories and Myths: build up about people and events, and convey a message about
what is valued within the organization.
These elements may overlap. Power structures may depend on control systems,
which may exploit the very rituals that generate stories which may not be true.
According to Schein (1992), the two main reasons why cultures develop in
organizations is due to external adaptation and internal integration. External adaptation
reflects an evolutionary approach to organizational culture and suggests that cultures
develop and persist because they help an organization to survive and flourish. If the
culture is valuable, then it holds the potential for generating sustained competitive
advantages. Additionally, internal integration is an important function since social
structures are required for organizations to exist. Organizational practices are learned
7
8. through socialization at the workplace. Work environments reinforce culture on a daily
basis by encouraging employees to exercise cultural values. Organizational culture is
shaped by multiple factors, including the following:
External environment
Industry
Size and nature of the organization’s workforce
Technologies the organization uses
The organization’s history and ownership
Organizational values, role models, symbols and rituals shape organizational
culture. Organizations often outline their values in their mission statements, although this
does not guarantee that organizational culture will reflect them. The individuals that
organizations recognize as role models set, by example, the behavior valued by the
organization. In addition, tangible factors such as work environment act as symbols,
creating a sense of corporate identity.
The founding of an organization is a critical period in the life of the organization
and the development of its culture. An organization’s founder or chief executive has an
influential impact on the development of the organization’s culture since that person is
likely to have control in hiring people with the same values and influence the choice of
strategy. By screening candidates for a cultural fit, organizations select those employees
that will be able to uphold the organizational culture. Additionally, leaders embed culture
in organizations by what they pay attention to, measure, and control; how they react to
critical incidents and crises; the behaviors they model for others; and how they allocate
rewards and other scarce resources.
Additionally, the legacy of an organizational founder may be reflected in the culture long
after that person leaves through the processes of cultural transmission (e.g. rites, stories)
where the culture perpetuates itself. The values of founders and key leaders shape
organizational cultures, but the way these cultures affect individuals is through shared
practices.
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9. Impacts of Organizational Culture
Research suggests that numerous outcomes have been associated either directly or
indirectly with organizational culture. A healthy and robust organizational culture may
provide various benefits, including the following:
Competitive edge derived from innovation and customer service
Consistent, efficient employee performance
Team cohesiveness
High employee morale
Strong company alignment towards goal achievement
Although little empirical research exists to support the link between organizational
culture and organizational performance, there is little doubt among experts that this
relationship exists. Organizational culture can be a factor in the survival or failure of an
organization - although this is difficult to prove considering the necessary longitudinal
analyses are hardly feasible. The sustained superior performance of firms like IBM,
Hewlett-Packard, Proctor and Gamble, and McDonald's may be, at least partly, a reflection
of their organizational cultures.
A 2003 Harvard Business School study reported that culture has a significant
impact on an organization’s long-term economic performance. The study examined the
management practices at 160 organizations over ten years and found that culture can
enhance performance or prove detrimental to performance. Organizations with strong
performance-oriented cultures witnessed far better financial growth. Additionally, a 2002
Corporate Leadership Council study found that cultural traits such as risk taking, internal
communications, and flexibility are some of the most important drivers of performance,
and may impact individual performance. Furthermore, innovativeness, productivity
through people, and the other cultural factors cited by Peters and Waterman (1982) also
have positive economic consequences.
Denison, Haaland, and Goelzer (2004) found that culture contributes to the success
of the organization, but not all dimensions contribute the same. It was found that the
impacts of these dimensions differ by global regions, which suggests that organizational
culture is impacted by national culture. Additionally, Clarke (2006) found that a safety
climate is related to an organization’s safety record.
Organizational culture is reflected in the way people perform tasks, set objectives,
and administer the necessary resources to achieve objectives. Culture affects the way
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10. individuals make decisions, feel, and act in response to the opportunities and threats
affecting the organization.
Adkins and Caldwell (2004) found that job satisfaction was positively associated
with the degree to which employees fit into both the overall culture and subculture in
which they worked. A perceived mismatch of the organization’s culture and what
employees felt the culture should be is related to a number of negative consequences
including lower job satisfaction, higher job strain, general stress, and turnover intent.
It has been proposed that organizational culture may impact the level of employee
creativity, the strength of employee motivation, and the reporting of unethical behavior,
but more research is needed to support these conclusions.
Organizational culture also has an impact on recruitment and retention. Individuals
tend to be attracted to and remain engaged in organizations that they perceive to be
compatible. Additionally, high turnover may be a mediating factor in the relationship
between culture and organizational performance. Deteriorating company performance and
an unhealthy work environment are signs of an overdue cultural assessment.
Organizational Culture Assessment Instrument
Robert Quinn and Kim Cameron researched what makes organizations effective
and successful. Based on the Competing Values Framework, they developed the
Organizational Culture Assessment Instrument that distinguishes four culture types. See
their book: Diagnosing and Changing Organizational Culture
Competing values produce polarities like: flexibility versus stability and internal
versus external focus. These two polarities were found to be most important in defining
organizational success.
The polarities construct a quadrant with four types of culture:
Clan Culture
-Internal focus and flexible - A friendly workplace where leaders act like father figures.
Adhocracy Culture
-External focus and flexible - A dynamic workplace with leaders that stimulate innovation.
Market Culture
-External focus and controlled - A competitive workplace with leaders like hard drivers
Hierarchy Culture
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11. -Internal focus and controlled - A structured and formalized workplace where leaders act
like coordinators.
Cameron & Quinn found six key aspects that will make up a culture. These can be
assessed in the Organizational Culture Assessment Instrument (OCAI) thus producing a
mix of these four archetypes of culture. Each organization or team will have its unique
mix of culture types.
Clan cultures are most strongly associated with positive employee attitudes and
product and service quality, whereas market cultures are most strongly related with
innovation and financial effectiveness criteria. The primary belief in market cultures is that
clear goals and contingent rewards motivate employees to aggressively perform and meet
stakeholders’ expectations; a core belief in clan cultures is that the organization’s trust in
and commitment to employees facilitates open communication and employee
involvement. These differing results suggest that it is important for executive leaders to
consider the fit, or match, between strategic initiatives and organizational culture when
determining how to embed a culture that produces competitive advantage. By assessing
the current organizational culture as well as the preferred situation, the gap and direction
to change can be made visible. This can be the first step to changing organizational
culture.
Organizational culture and change
When an organization does not possess a healthy culture, or requires some kind of
organizational culture change, the change process can be daunting. Culture change may be
necessary to reduce employee turnover, influence employee behavior, make improvements
to the company, refocus the company objectives and/or rescale the organization, provide
better customer service, and/or achieve specific company goals and results. Culture change
is impacted by a number of elements, including the external environment and industry
competitors, change in industry standards, technology changes, the size and nature of the
workforce, and the organization’s history and management.
There are a number of methodologies specifically dedicated to organizational
culture change such as Peter Senge’s Fifth Discipline. These are also a variety of
psychological approaches that have been developed into a system for specific outcomes
such as the Fifth Discipline’s “learning organization” or Directive Communication’s
“corporate culture evolution.” Ideas and strategies, on the other hand, seem to vary
according to particular influences that affect culture.
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12. Burman and Evans (2008) argue that it is 'leadership' that affects culture rather
than 'management', and describe the difference.[7]
When one wants to change an aspect of
the culture of an organization one has to keep in consideration that this is a long term
project. Corporate culture is something that is very hard to change and employees need
time to get used to the new way of organizing. For companies with a very strong and
specific culture it will be even harder to change.
Prior to a cultural change initiative, a needs assessment is needed to identify and
understand the current organizational culture. This can be done through employee surveys,
interviews, focus groups, observation, customer surveys where appropriate, and other
internal research, to further identify areas that require change. The company must then
assess and clearly identify the new, desired culture, and then design a change process.
1. Formulate a clear strategic vision
In order to make a cultural change effective a clear vision of the firm’s new
strategy, shared values and behaviors is needed. This vision provides the intention and
direction for the culture change.
2. Display Top-management commitment
It is very important to keep in mind that culture change must be managed from the top of
the organization, as willingness to change of the senior management is an important
indicator (Cummings & Worley, 2005, page 490). The top of the organization should be
very much in favor of the change in order to actually implement the change in the rest of
the organization.
3. Model culture change at the highest level
In order to show that the management team is in favor of the change, the change
has to be notable at first at this level. The behavior of the management needs to symbolize
the kinds of values and behaviors that should be realized in the rest of the company. It is
important that the management shows the strengths of the current culture as well, it must
be made clear that the current organizational does not need radical changes, but just a few
adjustments.
This process may also include creating committee, employee task forces, value
managers, or similar. Change agents are key in the process and key communicators of the
new values. They should possess courage, flexibility, excellent interpersonal skills,
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13. knowledge of the company, and patience. As McCune (May 1999) puts it, these individual
should be catalysts, not dictators.
4. Modify the organization to support organizational change
The fourth step is to modify the organization to support organizational change.
This includes identifying what current systems, policies, procedures and rules need to be
changed in order to align with the new values and desired culture. This may include a
change to accountability systems, compensation, benefits and reward structures, and
recruitment and retention programs to better align with the new values and to send a clear
message to employees that the old system and culture are in the past.
5. Select and socialize newcomers and terminate deviants
A way to implement a culture is to connect it to organizational membership, people
can be selected and terminate in terms of their fit with the new culture.
Encouraging employee motivation and loyalty to the company is key and will also
result in a healthy culture. The company and change managers should be able to articulate
the connections between the desired behavior and how it will impact and improve the
company’s success, to further encourage buy-in in the change process. Training should be
provided to all employees to understand the new processes, expectations and systems.
6. Develop ethical and legal sensitivity
Changes in culture can lead to tensions between organizational and individual
interests, which can result in ethical and legal problems for practitioners. This is
particularly relevant for changes in employee integrity, control, equitable treatment and
job security.
It is also beneficial, as part of the change process, to include an evaluation process,
conducted periodically to monitor the change progress and identify areas that need further
development. This step will also identify obstacles of change and resistant employees and
to acknowledge and reward employee improvement, which will also encourage continued
change and evolvement. It may also be helpful and necessary to incorporate new change
managers to refresh the process. Outside consultants may also be useful in facilitating the
change process and providing employee training.
Change of culture in the organizations is very important and inevitable. Culture
innovations is bound to be because it entails introducing something new and substantially
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14. different from what prevails in existing cultures. Cultural innovation is bound to be more
difficult than cultural maintenance. People often resist changes hence it is the duty of the
management to convince people that likely gain will outweigh the losses. Besides
institutionalization, deification is another process that tends to occur in strongly developed
organizational cultures. The organization itself may come to be regarded as precious in
itself, as a source of pride, and in some sense unique. Organizational members begin to
feel a strong bond with it that transcends material returns given by the organization, and
they begin to identify with in. The organization turns into a sort of clan.
Entrepreneurial culture
Stephen McGuire defined and validated a model of organizational culture that predicts
revenue from new sources. An Entrepreneurial Organizational Culture (EOC) is a system
of shared values, beliefs and norms of members of an organization, including valuing
creativity and tolerance of creative people, believing that innovating and seizing market
opportunities are appropriate behaviors to deal with problems of survival and prosperity,
environmental uncertainty, and competitors’ threats, and expecting organizational
members to behave accordingly.
Elements of Entrepreneurial Culture
People and empowerment focused
Value creation through innovation and change
Attention to the basics
Hands-on management
Doing the right thing
Freedom to grow and to fail
Commitment and personal responsibility
Emphasis on the future
Critical views
Writers from Critical management studies have tended to express skepticism about
the functionalist and unitarist views of culture put forward by mainstream management
thinkers. Whilst not necessarily denying that organizations are cultural phenomena, they
would stress the ways in which cultural assumptions can stifle dissent and reproduce
management propaganda and ideology. After all, it would be naive to believe that a single
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15. culture exists in all organizations, or that cultural engineering will reflect the interests of
all stakeholders within an organization. In any case, Parker[11]
has suggested that many of
the assumptions of those putting forward theories of organizational culture are not new.
They reflect a long-standing tension between cultural and structural (or informal and
formal) versions of what organizations are. Further, it is perfectly reasonable to suggest
that complex organizations might have many cultures, and that such sub-cultures might
overlap and contradict each other. The neat typologies of cultural forms found in
textbooks rarely acknowledge such complexities, or the various economic contradictions
that exist in capitalist organizations.
Organizational communication perspective on culture
The organizational communication perspective on culture is divided into three
areas:
Traditionalism: Views culture through objective things such as stories, rituals, and
symbols
Interpretivism: Views culture through a network of shared meanings (organization
members sharing subjective meanings)
Critical-Interpretivism: Views culture through a network of shared meanings as well as
the power struggles created by a similar network of competing meanings
There are many different types of communication that contribute in creating an
organizational culture:
Metaphors such as comparing an organization to a machine or a family reveal employees’
shared meanings of experiences at the organization.
Stories can provide examples for employees of how to or not to act in certain situations.
Rites and ceremonies combine stories, metaphors, and symbols into one. Several
different kinds of rites that affect organizational culture:
Rites of passage: employees move into new roles
Rites of degradation: employees have power taken away from them
Rites of enhancement: public recognition for an employee’s accomplishments
Rites of renewal: improve existing social structures
Rites of conflict reduction: resolve arguments between certain members or groups
Rites of integration: reawaken feelings of membership in the organization
Reflexive comments are explanations, justifications, and criticisms of our own actions.
This includes:
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16. Plans: comments about anticipated actions
Commentaries: comments about action in the present
Accounts: comments about an action or event that has already occurred
Such comments reveal interpretive meanings held by the speaker as well as the social rules
they follow.
Fantasy Themes are common creative interpretations of events that reflect beliefs, values,
and goals of the organization. They lead to rhetorical visions, or views of the organization
and its environment held by organization members.
Schema
Schemata (plural of schema) are knowledge structures a person forms from past
experiences, allowing the person to respond to similar events more efficiently in the future
by guiding the processing of information. A person's schemata are created through
interaction with others, and thus inherently involve communication.
Stanley G. Harris argues that five categories of in-organization schemata are necessary for
organizational culture:
Self-in-organization schemata: a person’s concept of themselves within the context of
the organization, including her/his personality, roles, and behavior.
Person-in-organization schemata: a person’s memories, impressions. and expectations
of other individuals within the organization.
Organization schemata: subset of person schemata, a person’s generalized perspective on
others as a whole in the organization.
Object/concept-in-organization schemata: knowledge an individual has of organization
aspects other than of other persons.
Event-in-organization schemata: a person’s knowledge of social events within an
organization.
All of these categories together represent a person’s knowledge of an organization.
Organizational culture is created when the schematas (schematic structures) of differing
individuals across and within an organization come to resemble each other (when any one
person's schemata come to resemble another person's schemata because of mutual
organizational involvement). This is primarily done through organizational
communication, as individuals directly or indirectly share knowledge and meanings.
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17. Mergers, organizational culture, and cultural leadership
One of the biggest obstacles in the way of the merging of two organizations is
organizational culture. Each organization has its own unique culture and most often, when
brought together, these cultures clash. When mergers fail employees point to issues such
as identity, communication problems, human resources problems, ego clashes, and inter-
group conflicts, which all fall under the category of “cultural differences”. One way to
combat such difficulties is through cultural leadership. Organizational leaders must also be
cultural leaders and help facilitate the change from the two old cultures into the one new
culture. This is done through cultural innovation followed by cultural maintenance.
Cultural innovation includes:
Creating a new culture: recognizing past cultural differences and setting realistic
expectations for change
Changing the culture: weakening and replacing the old cultures
Cultural maintenance includes:
Integrating the new culture: reconciling the differences between the old cultures and
the new one
Embodying the new culture: Establishing, affirming, and keeping the new culture
Corporate culture vs. organizational culture
Corporate culture is the total sum of the values, customs, traditions, and meanings that
make a company unique. Corporate culture is often called "the character of an
organization", since it embodies the vision of the company’s founders. The values of a
corporate culture influence the ethical standards within a corporation, as well as
managerial behavior.[12]
Senior management may try to determine a corporate culture. They may wish to impose
corporate values and standards of behavior that specifically reflect the objectives of the
organization. In addition, there will also be an extant internal culture within the workforce.
Work-groups within the organization have their own behavioral quirks and interactions
which, to an extent, affect the whole system. Roger Harrison's four-culture typology, and
adapted by Charles Handy, suggests that unlike organizational culture, corporate culture
can be 'imported'. For example, computer technicians will have expertise, language and
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18. behaviors gained independently of the organization, but their presence can influence the
culture of the organization as a whole.
Organizational culture and corporate culture are often used interchangeably but it
is a mistake to state that they are different concepts. All corporations are also
organizations but not all organizations are corporations. Organizations include religious
institutions, not-for-profit groups, and government agencies. There is even the Canadian
Criminal Code definition of "organized crime" as meaning "a group comprised of three or
more persons which has, as one of its primary activities or purposes, the commission of
serious offences which likely results in financial gain." Corporations are organizations and
are also legal entities. As Schein (2009), Deal & Kennedy (2000), Kotter (1992) and many
others state, organizations often have very differing cultures as well as subcultures.
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19. SCOPE & IMPORTANCE
One of the most important building blocks for a highly successful organization and
an extraordinary workplace is "organizational culture." We define organizational culture
as the set of shared beliefs, truths, assumptions, and values that operate in organizations.
Organizational culture has been described as "...how people behave when no one is
looking."
There are of course many other bottom line business reasons to focus on and build
organizational culture. Here are seven of those reasons.
A strong culture is a talent attractor: Your organizational culture is part of the package
that prospective employees look at when assessing your organization. Gone are the days of
selecting the person you want from a large eager pool. The talent market is tighter and
those looking for a new organization are more selective than ever. The best people want
more than a salary and good benefits. They want an environment they can enjoy and
succeed in.
A strong culture is talent retainer: How likely are people to stay if they have other
options and don’t love where they are? Your organizational culture is a key component of
a person’s desire to stay.
A strong culture creates energy and momentum: Build a culture that is vibrant and
allows people to be valued and express themselves and you will create a very real energy.
That positive energy will permeate the organization and create a new momentum for
success. Energy is contagious and will build on itself, reinforcing the culture and the
attractiveness of the organization.
A strong culture creates greater synergy: A strong culture brings people together. When
people have the opportunity to (and are expected to) communicate and get to know each
other better, they will find new connections. These connections will lead to new ideas and
greater productivity – in other words, you will be creating synergy. Literally, 1 + 1 + right
culture = more than 10. How is that for leverage?
A strong culture makes everyone more successful: Any one of the other six reasons
should be reason enough to focus on organizational culture. But the bottom line is that an
investment of time, talent and focus on organizational culture will give you all of the
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20. above benefits. Not only is creating a better culture a good thing to do for the human
capital in the business, it makes good business sense too.
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22. REEARCH OBJECTIVES
To study the concept of organizational culture in export house with special reference to
C.L. Gupta Ltd.
To study the study of Characteristics of Healthy Organizational Cultures
To study the factors and elements Influencing Organizational Culture in export house.
To study the Impacts of Organizational Culture on export house.
To study the Organizational communication perspective on culture in export house.
To study the elements of entrepreneurial Culture
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23. RESEARCH METHODOLOGY
DEFINITION OF RESEARCH
Research is defined as human activity based on intellectual application in the
investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and the universe. Research
can use the scientific method, but need not do so.
TYPES OF RESEARCH
Qualitative research:- Qualitative research allows you to explore perceptions, attitudes
and motivations and to understand how they are formed. It provides depth of information
which can be used in its own right or to determine what attributes will subsequently be
measured in quantitative studies.
Quantitative research:- Quantitative research is descriptive and provides hard data on the
numbers of people exhibiting certain behaviours, attitudes, etc. It provides information in
breadth and allows you to sample large numbers of the population.
It is, however, structured and does not yield the reasons behind behaviour or why people
hold certain attitudes. Techniques commonly used in HE/FE include postal surveys
(particularly appropriate in the case of student populations where name and address
information is available), telephone surveys (appropriate for surveys of employers), on-
line or web-based surveys (very cost-effective for reaching audiences where e-mail
penetration is high, such as students and university/college staff) and mystery shopping (in
this case to test quantifiable aspects of the service).
RESEARCH DESIGN
Plan outlining how information is to be gathered for an assessment or evaluation
that includes identifying the data gathering method(s) , the instruments to be used/created,
how the instruments will be administered, and how the information will be organized and
analyzed.
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24. DATA COLLECTION
Data collection is a term used to describe a process of preparing and collecting data
- for example as part of a process improvement or similar project. A method of data
collection in which the situation of interest is watched and the relevant facts, actions and
behaviors are recorded.
PRIMARY DATA COLLECTION METHODS
In primary data collection, you collect the data yourself using methods such as
interviews and questionnaires. The key point here is that the data you collect is unique to
you and your research and, until you publish, no one else has access to it.
SECONDARY DATA COLLECTION METHODS
All methods of data collection can supply quantitative data (numbers, statistics or
financial) or qualitative data (usually words or text). Quantitative data may often be
presented in tabular or graphical form. Secondary data is data that has already been
collected by someone else for a different purpose to yours. For example, this could mean
using:
SAMPLE SIZE : 40
SAMPLING UNIT : Employees
DATA SOURCES : Primary & Secondary data.
DATA COLLECTION METHOD : “Survey”
RESEARCH INSTRUMENT :“Questionnaire”
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25. LIMITATIONS
Accuracy: It is observed that it is rather difficult to measure the degree of
approximation used in the collection of information as well as the competence of the
investigator in motivating the persons to supply the desired information.
Relevance: The data may not fit into the needs of investigation. There may be
difference in the units of measurement, there may be surrogated data, discrepancy of
class & data may pertain to some other period of time.
Difficulties in the identification of the source.
Difficulty to find secondary data that exactly the needs of some specific research
investigation.
The facilities or capabilities of the agency that originally collected the data might be
questionable.
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27. BRASSWARE INDUSTRY
It is believed that the brassware industry originated from Moradabad and spread to
the rest of the country. Although the art of brassware developed in the period of Mughals
only but evidence suggests that Indians from around 3000BC knew the process of
metallurgy. The discovery of a bronze statue of ‘dancing girl’ in the harappan excavation
proves that. The brassware industry in Moradabad saw the blooming period in early 19th
century and British took the art in foreign markets. Other immigrating artisans from
Benaras, Lucknow, Agra and Jalesar formed the current cluster of brassware industry in
Moradabad. In 1980’s various other metal wares like brass, EPNS, iron, aluminum etc.
were also introduced to the art industry of Moradabad. New technologies like
Electroplating, lacquering, powder coating etc. also found it’s way to the industry.
Moradabad is renowned for brass work and has carved a niche for itself in the
handicraft industry through out the world. These handicrafts are skillfully crafted by the
gifted artisans of Moradabad. It is through their sheer hard work, that they are able to
bring such perfection in their creations.
Brass metal is an alloy of copper and zinc and the quality of the metal depend on
the percentage composition of both these metals. 65% copper and 35% zinc makes the best
alloy. The alluring shine of brass is what makes it very attractive. The range of products
available in brassware is wide. From napkin rings to huge sculptures all are available. The
most important products are Candle Stands, Flower Vases, Lamps, artifacts etc.
Nowadays other metal crafted products are also manufactured here like
electroplated nickel-silver ware, copper utensils, copper alloy utensils, copper alloy ware
electroplated with nickel/silver, copper art ware, art ware of bronze/similar alloys, art ware
of bidri, art ware of aluminum.
Moradabad – ‘The City of Brass’ is located at an approximate distance of 150 kms from
New Delhi, in the western region of Uttar Pradesh. Brass Metal Handicraft is the major
trade of this town, which has given it global identity. Major sourcing of brass for
international markets for countries like USA, Britain, Canada, Germany and Middle East
Asia stems from this town with Handicrafts and exports to the tune of Rs. 2200 Crores on
yearly basis. There are about 600 export units and 5000 industries in the district.
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28. The manufacturing process however entails lot of hazards, which in absence of
safe manufacturing standards can prove fatal. Associated with this industry, as a very
prominent feature of the town is the large magnitude of children working in the
innumerable sub-contracting and household units of the Brass Metal Handicrafts. The
number of children involved in the hazardous processes of brass manufacturing and
endangering their childhood is estimated to be approximately 45,000.
ASK initiated this program in 1998 half a decade ago, which has successfully
weaned away over 200 children from work settings. Now, near their home in Rehmat
Nagar on Sambahal road is a beautiful building, which they proudly call their “Sankalp
school”. In absence of a quality school alternative, Sankalp has taken the recognition for
formal education till class 8th. Alongside the child enjoys all the games of his/her age and
takes part in dramas and role plays. They are also a part of the campaign for protecting
their and other children’s rights by approaching major stakeholders in the city.
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29. C. L. GUPTA EXPORTS LTD.
COMPANY PROFILE
C L Gupta are 118 year old company in Moradabad, a city 160 kms. from Delhi.
An 100% Export Orient Unit.
INFRASTRUCTURE
Factory Land Area: 50 acres, Covered Area: 1,200,000 sq. ft.
In – house Electricity Generation: 6.0 MW
Residential Complex within factory premises for craftsmen.
A task force of 2000 + direct & indirect
Export turn – over 2005-06: Over 110 crore
Rating
CARE has assigned a 'CARE BBB-' [CARE Triple B (Minus)] rating to the long-term
bank loan facilities of C L Gupta Exports Ltd (CLG). This rating is applicable for facilities
having tenure of over one year. Facilities with this rating are considered to offer moderate
safety for timely servicing of debt obligations. Such facilities carry moderate credit risk.
Also, CARE has assigned a 'PR 3' [PR Three] rating to the short-term facilities of
C L Gupta Exports Ltd. This rating is applicable for facilities having tenure up to one year.
Facilities with this rating would have moderate capacity for timely repayment of short
term debt obligations at the time of rating and carry higher credit risk as compared to
facilities rated higher. These ratings are assigned to outstanding long term bank loan
facility of Rs.12.43cr, fund-based limits of Rs.33.70cr and non-fund based limits of
Rs.3.42cr.
The ratings derive comfort from company's position as one of the leading exporters
of decorative and utility based items, broad range of product-mix, repeat orders from
reputed clientele and vast experience of promoters. However, the ratings are constrained
by declining profitability margins, working capital intensive nature of operations and risks
arising out of foreign currency fluctuation. Further, company's ability to sustain
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30. profitability in the wake of overall lowered demand in international markets due to
economic slowdown would be key rating sensitivity.
Background
C L Gupta Exports Ltd (CLG) started its operation in year 2000 as a partnership
firm viz. J S Gupta & sons (JSG). This 100% export oriented partnership firm was started
by M/s C L Gupta & Sons, the initial partnership firm, which is one of the old and
renowned players in brassware items from Moradabad, UP. M/s C L Gupta & Sons,
Moradabad was promoted by Late Mr. C.L Gupta, almost 120 years back. Initially, the
firm was involved in manufacturing metal (especially brass) decorative items. Later to
cater exclusively to export market, JSG was incorporated by same promoters and
diversified itself in to manufacturing of various decorative items made up of glass, wood
and metals. CLG took-over of the entire business operation of J S Gupta & Sons (JSG) on
going concern basis in March 04. However, CLG commenced its commercial operations
only in April 05. CLG is managed by Mr Ajai Gupta, in the capacity as Chairman. Mr.
Gupta has rich industry experience and primarily looks after marketing & liaison
activities. CLG is a closely held entity with promoter group (promoter & family friends)
having 100% shareholding. CLG has been granted two star export house status and
various other merit certificates for iron-crafts, woodwares and glass art-ware by Export
Promotion Council of Handicrafts. Company is managed by a Board which comprises nine
members of which seven are from promoter family looking after separate business areas.
Day-today affairs of the company are looked after by Mr. Raghav Chandra Gupta,
Managing Director and he is assisted by professionals and managers of various
departments.
Group Company/Associates
M/s C L Gupta & Sons, the initial partnership firm, is involved in brassware work on
limited scale and supplies/sells semi finished products to CLG. CLG has set-up a wholly-
owned subsidiary in USA in June 08 as its marketing arm to promote marketing and
public relations for the parent company amongst the established retailers and wholesalers
in USA.
Operations of the Company
CLG is primarily involved in manufacturing & export of decorative items made of
glass, wood and metals such as aluminum, brass, copper, zinc alloys, stain less steel, mild
steel and wrought iron manufactured at its facility situated in Moradabad (UP) near Delhi-
Moradabad highway. Over the years, metal decorative items have been the major
30
31. contributor to company sales, accounting for 55-60% of the total sales on account of
increased demand and growing realizations as compared to wood and glass items. CLG's
cost structure is dominated by raw materials and consumable stores & packing material
(53-57%) followed by manufacturing expenses (23-24%). Significant proportion (85-
89%) of raw material is held in the form of Work- In-Progress (WIP) since average order
cycle is of 4-5 months. This requires CLG to hold significant level of inventory leading to
higher working capital requirement.
Principal raw materials used are metal & scrap (67-75%), wood (24-33%), soda
ash, propane gas, and semi-finished items of metal, glass and wood. Being a labour
intensive activity, the labour costs together with raw materials and labour cost constitute
over 65% of the total operating cost.
Need based orders for raw materials are placed mainly with various local traders and
suppliers as well as imported from countries such as China, South Africa and UAE.
Company also procures various semi finished products from local manufacturers and
suppliers and M/s C L Gupta & Sons. CLG doesn't have any dealers and distribution set-
up/ network for marketing and sales. Order procurement is on the basis of participation
and displays in various trade shows, art fairs and exhibitions in the international markets
on regular basis. Major export destinations are US, UK and Germany, Spain, Sweden,
Austria, Belgium etc with repeat orders from reputed clientele such as Pottery barn, IKEA,
Wal-Mart Target stores ,Crate & Barrel ,Restoration hardware and Pier -I.
Ongoing/completed projects
In response to a new order from IKEA for supply of wooden hangers, CLG has set-
up two production lines at its existing unit at the project cost of Rs.5.37cr. Project has
been financed with debt of Rs.4.00 cr and balance from internal accruals. Equipment for
the same have been procured mainly from Taiwan. Both the lines are completely installed
& commercial production has started since September-October 08.
Financial Performance
Over the past years (2006-08), the top line of the company has stagnated.
Decorative and gift items don't fall under the category of conventional need based
commodities having general utility and as such these items don't have fixed demand and
fixed end-users. Despite rupee appreciation in FY08, company was able to maintain its
top- line on account of higher realization for metal decorative items which constitute
around 60% of overall sales and increase in the number of goods sold (glass and wood
31
32. product). For FY08, CLG has booked losses of Rs.16 lakh on account of foreign exchange
fluctuations.
Raw material cost and manufacturing expenses witnessed continuous increase in
past 2-3 years, which the company has not been able to completely pass on to its
customers resulting in a decline in operating profits over the same period. Consequent to
stagnant top-line along with declining operating profit, net cash accrual has been on a
declining trend over the last few years. Given the low debt level of the company and
moderate growth in working capital borrowings, company has been able to maintain a low
debt equity and moderate overall gearing.
There was decline in interest coverage to 4.66 times for FY08 as compared to
6.17times for FY07 on account of low profitability and high interest expenses resulting
from general hardening of interest rates during the year. Liquidity as indicated by current
ratio has declined to 1.42 times as on March 31st 2008 as compared to 1.49 times as on
March 31st 08 on account of increase in working capital borrowings.
Industry
Industry for decorative items based on metal, wood and glass etc is a part of broad
Indian handicraft industry The Indian Handicraft products reflect the rural cultural value
and its richness of heritage. The industry provides the second largest employment
opportunities to the people in rural areas. Major impetus for growth of handicrafts industry
is demand from US, Canada, EU and the West Asian countries. The global handicraft
industry is valued at US $100 billion and India has 1.2% of this market. The handicrafts
industry in India employs approximately over 5 million artisans and around 67,000
exporters tapping this market. Over the years, handicraft sector has shown an annual
average growth rate of 8.5%. Handicrafts, over the last few years have transformed their
utility from mere shelf decorative to daily useable category. It is thus the primary need of
any seller to constantly update, develop & add to his product profile. Uttar Pradesh is the
largest Brassware center in India. The state has many copper and brass making
establishments in and around Moradabad and Varanasi. With the global meltdown and
consequently lower demand from US and European market, there has been decline of
about 30 per cent in the export orders across various labour intensive and manufacturing
industries such as textiles, handicraft and decorative items. In the current year the global
economic slowdown coupled with the volatility in commodity prices is likely to have
adverse impact on exporters.
32
33. OUR MANUFACTURING CAPABILITIES
1. Brass:
In house manufacturing and finishing in variety of finished as polished brass, antq.
brass, bronze, silver plating, patinas etc.
Items:
Figurines, Fire fashion, Tableware, Decorative, Clocks, Candle-stands, Wall décor,
Bath Accessories, Window, Treatment, Hardware, Seasonal, Gift tables etc.
2. Aluminium:
In-house casting & finishing, mostly painted or polished finishes.
Items:
Garden Furniture, Garden Animals, Markers, Planters, Figurines, Potholders,
Birdbaths etc.
33
34. 3. Glass:
We have continuous Tank furnace with a capacity of 20 tonnes per day to make
mouth-blown glass, in crackle finish, frosted, seeded in clear & coloured glass.
Items:
Mostly combinations of Glass with Iron, Brass, Bronze or Silver plated bases for
Bowls, Bath Accessories, Candle holders, Lanterns, Pillar holders, Tumblers & Decanters,
Vases etc.
4. Iron:
In-house facility to manufacture Wrought & Cast Iron items with in-house 7 tank
Phosphating (rust treatment), Spray Painting, Powder Coating and Hand applied finishes.
Items:
Indoor Accent furniture (CKD), Garden Furniture, Base for Glass Vases & Candle
holders, Fire Fashion, Pillar candle holders, Armillaries, Potholders etc.
34
35. 5. Wood:
From Sawing, Seasoning, Treatment, Machining, Carpentry, Finishing (spray paint
& stain finishes).
Items:
Colonial Dutch furniture, Neo-Classical furniture & Desk sets, Candle holders,
Pillar holders, Lanterns, Photo-frames, Frames, Finials for drapery rods, Photo frames,
Trays, Bowls etc.
Major Clients
Pottery Barn Ikea
Target Stores Crate & Barrel
Restoration Hardware Cost Plus
World Market Marks & Spencer
Becara Historical Collections Schubert Varia
Pete Van Roon
35
37. DATA ANALYSIS AND INTERPRETATION
Q.1. How much time, are you working in C. L. Gupta Export Ltd.?
Table No. - 1
S. No. Options Percentage
a. 1 year 30%
b. 2 years 25%
c. 3 years 25%
d. More than 3 years 20%
Graph No. - 1
INTERPRETATION
30% respondents are working in C. L. Gupta Export Ltd. since one year, 20%
respondents are working since 2 years, 25% respondents are working since 3 years and
remaining 20% respondents are working since more than 3 years.
Q.2. Do you understand the concept of organizational culture?
37
38. Table No. - 2
S. No. Options Percentage
a. Yes 60%
b. No 20%
c. Can’t say 20%
Graph No. - 2
INTERPRETATION
60% respondents understand the concept of organizational culture, 20%
respondents don't know the concept and remaining 20% respondents were unable to say
anything.
Q.3. Does organization culture describes the belief and ideas about what kinds of goals,
members of an organization should pursue?
Table No. - 3
38
39. S. No. Options Percentage
a. Yes 50%
b. No 30%
c. Can’t say 20%
Graph No. - 3
INTERPRETATION
50% respondents say organization culture describes the belief and ideas about what
kinds of goals, members of an organization should pursue, 30% respondents say no and
remaining 20% respondents were unable to say anything.
Q.4. Which one is the very important characteristics of healthy organizational culture?
Table No. - 3
S. No. Options Percentage
a. Equal opportunity for each employees 20%
b. Strong communication with all employees 30%
39
40. c. Regard for and fair treatment of each employee 30%
d. Lower than average turnover rates 20%
Graph No. - 4
INTERPRETATION
20% respondents say that the very important characteristics of healthy
organizational culture is Equal opportunity for each employees, 30% respondents say
Strong communication with all employees, 30% respondents say Regard for and fair
treatment of each employee and remaining 20% respondents say Lower than average
turnover rates.
Q.5. Which one is the most effective benefits of strong and productive culture?
Table No. - 4
S. No. Options Percentage
a. High employee motivation and loyalty 40%
b. Increased team cohesiveness 20%
40
41. c. Promoting consistency and encouraging coordination 20%
d. Shaping employee behavior at work 20%
Graph No. - 5
INTERPRETATION
40% respondents say that the most effective benefits of strong and productive
culture is High employee motivation and loyalty, 20% respondents say Increased team
cohesiveness, 20% respondents say Promoting consistency and encouraging coordination
and remaining 20% respondents say Shaping employee behavior at work.
Q.6. Which factor and elements influence more the organizational culture?
Table No. - 6
S. No. Options Percentage
a. Control systems 35%
b. Organization structure 25%
c. Power structures 20%
d. Rituals and Routines 20%
41
42. Graph No. - 6
INTERPRETATION
35% respondents say that factor and elements influence more the organizational
culture is Control systems, 25% respondents say Organization structure, 20% respondents
say Power structures and remaining 20% respondents say Rituals and Routines.
Q.7. Does organizational culture has an impact on recruitment and retention?
Table No. - 7
S. No. Options Percentage
a. Yes 70%
b. No 10%
c. Can’t say 20%
Graph No. - 7
42
43. INTERPRETATION
70% respondents say organizational culture has an impact on recruitment and
retention, 10% respondents say no and remaining 20% respondents were unable to say
anything.
Q.8. Do you think that change of culture in the organization is very important investable?
Table No. - 8
S. No. Options Percentage
a. Yes 75%
b. No 10%
c. Can’t say 15%
Graph No. - 8
43
44. INTERPRETATION
75% respondents think that change of culture in the organization is very important
investable, 10% respondents say no and remaining 15% respondents were unable to say
anything.
Q.9. The main benefits of organization culture change is
Table No. - 9
S. No. Options Percentage
a. Reduce employee turnover 50%
b. Influence employee behavior 20%
c. Make improvement to the company 10%
d. Reflects the company objectives 20%
Graph No. - 9
44
45. INTERPRETATION
50% respondents say that the main benefits of organization culture change is
Reduce employee turnover, 20% respondents say Influence employee behavior, 10%
respondents say Make improvement to the company and remaining Reflects the company
objectives.
Q.10. As par your opinion, the organizational culture of C. L. Gupta Export Ltd. are strong
and effective?
Table No. - 10
S. No. Options Percentage
a. Yes 80%
b. No 10%
c. Can’t say 10%
Graph No. - 10
45
46. INTERPRETATION
80% respondents think that the organizational culture of C. L. Gupta Export Ltd.
are strong and effective, 10% respondents say no and remaining 10% respondents were
unable to say anything.
Q.11. Which one is the important and strong factor of healthy organization culture?
Table No. - 11
S. No. Options Percentage
a. Productivity 30%
b. Growth of the company 20%
c. Efficiency 25%
d. Employee turnover 25%
Graph No. - 11
46
47. INTERPRETATION
30% respondents say the important and strong factor of healthy organization
culture, 20% respondents say Growth of the company, 25% respondents say Efficiency
and remaining 25% respondents say Employee turnover.
Q.12. Which types of culture of C. L. Gupta Export Ltd. implement?
Table No. - 12
S. No. Options Percentage
a. Power Culture 25%
b. Role Culture 30%
c. Task Culture 20%
d. Person Culture 25%
Graph No. - 12
47
48. INTERPRETATION
25% respondents say types of culture of C. L. Gupta Export Ltd. implement is
Power Culture, 30% respondents say the Role Culture, 20% respondents say the Task
Culture and remaining 25% respondents say the Person Culture.
Q.13. Does work environments reinforce culture on a daily basis by encouraging
employees to exercise cultural values?
Table No. - 13
S. No. Options Percentage
a. Yes 65%
b. No 20%
c. Can’t say 15%
Graph No. - 13
48
49. INTERPRETATION
65% respondents think that the work environments reinforce culture on a daily
basis by encouraging employees to exercise cultural values, 20% respondents say no and
remaining 15% respondents were unable to say anything.
Q.14. Does C. L. Gupta Export Ltd. provides equal opportunity for each employee to
realize their full potential with the company?
Table No. - 14
S. No. Options Percentage
a. Yes 85%
b. No 5%
c. Can’t say 10%
Graph No. - 14
49
50. INTERPRETATION
85% respondents think that C. L. Gupta Export Ltd. provides equal opportunity for
each employee to realize their full potential with the company, 5% respondents say no and
remaining 10% respondents were unable to say anything.
Q.15. Does C. L. Gupta Export Ltd. have strong communication with all employee
regarding policies and company issues?
Table No. - 15
S. No. Options Percentage
a. Yes 60%
b. No 20%
c. Can’t say 20%
Graph No. - 15
50
51. INTERPRETATION
60% respondents think C. L. Gupta Export Ltd. have strong communication with
all employee regarding policies and company issues, 20% respondents say no and
remaining 20% respondents were unable to say anything.
Q.16. Does C. L. Gupta Export Ltd. regard for and fair treatment of each employees as
well as respect for each employees contribution to the company?
Table No. - 16
S. No. Options Percentage
a. Yes 70%
b. No 20%
c. Can’t say 10%
Graph No. - 16
51
52. INTERPRETATION
70% respondents think that C. L. Gupta Export Ltd. regard for and fair treatment
of each employees as well as respect for each employees contribution to the company
communication with all employee regarding policies and company issues, 20%
respondents say no and remaining 10% respondents were unable to say anything.
Q.17. Does C. L. Gupta Export Ltd. has strong company leaders with a strong sense of
direction and purpose?
Table No. - 17
S. No. Options Percentage
a. Yes 90%
b. No 5%
c. Can’t say 5%
Graph No. - 17
52
53. INTERPRETATION
90% respondents think C. L. Gupta Export Ltd. has strong company leaders with a
strong sense of direction and purpose, 5% respondents say no and remaining 5%
respondents were unable to say anything.
Q.18. Do you think that C. L. Gupta Export Ltd. have healthy organizational culture?
Table No. - 18
S. No. Options Percentage
a. Yes 85%
b. No 5%
c. Can’t say 10%
Graph No. - 18
53
54. INTERPRETATION
85% respondents think C. L. Gupta Export Ltd. have healthy organizational
culture, 5% respondents say no and remaining 10% respondents were unable to say
anything.
54
55. CHAPTER - 5
FINDINGS
Almost all the respondents are working in C. L. Gupta Export Ltd. since more than 1
year.
Moderate numbers of respondents understand the concept of organizational culture.
Organization culture describes the belief and ideas about what kinds of goals, members
of an organization should pursue.
The very important characteristics of healthy organizational culture are Strong
communication with all employees and Regard for and fair treatment of each
employee.
The most effective benefits of strong and productive culture is High employee
motivation and loyalty
The factor and elements influence more the organizational culture is Control systems
55
56. Organizational culture has an impact on recruitment and retention.
Maximum numbers of respondents think that change of culture in the organization is
very important investable.
The main benefits of organization culture change is Reduce employee turnover
The organizational culture of C. L. Gupta Export Ltd. is strong and effective.
The important and strong factor of healthy organization culture is Productivity.
The types of culture of C. L. Gupta Export Ltd. implement are role culture.
Work environments reinforce culture on a daily basis by encouraging employees to
exercise cultural values.
C. L. Gupta Export Ltd. provides equal opportunity for each employee to realize their
full potential with the company.
C. L. Gupta Export Ltd. has strong communication with all employee regarding
policies and company issues.
C. L. Gupta Export Ltd. regards for and fair treatment of each employees as well as
respect for each employee's contribution to the company.
C. L. Gupta Export Ltd. has strong company leaders with a strong sense of direction
and purpose.
Almost all respondents think that C. L. Gupta Export Ltd. has healthy organizational
culture.
SUGGESTIONS
Organizational culture is the shared values or common perceptions that are held by
each member of an organization.
The development of an organizational culture has been left to chance and not included
as part of management's responsibilities or accountabilities.
The management team expressed initial confidence in their ability to build a new
facility to capitalize on this knowledge and experience.
Organizations must consciously decide what their culture will be. If it is allowed to
develop or evolve over time without a direction or plan, the results may not be either
appropriate or effective for the organization.
56
57. LIMITATIONS
Accuracy: It is observed that it is rather difficult to measure the degree of
approximation used in the collection of information as well as the competence of the
investigator in motivating the persons to supply the desired information.
Relevance: The data may not fit into the needs of investigation. There may be
difference in the units of measurement, there may be surrogated data, discrepancy of
class & data may pertain to some other period of time.
Difficulties in the identification of the source.
Difficulty to find secondary data that exactly the needs of some specific research
investigation.
The facilities or capabilities of the agency that originally collected the data might be
questionable.
57
58. CONCLUSION
The main aim of this project report is to study of organizational culture in detail in
export house with special reference to C. L. Gupta Ltd. in Moradabad. Culture spans the
range of management thinking and organizational culture has been one of the most
enduring buzzwords of popular management. Why? What is the appeal of the concept?
Organizational culture is apparently unifying and this strongly appeals to management’s
concern with projecting an image of the organization as a community of interests. Perhaps
most importantly culture penetrates to the essence of an organization – it almost analogous
with the concept of personality in relation to the individual and this acute sense of what an
organization is – its mission, core values – seems to have become a necessary asset of the
modern company. There is the vexed question of whether or not organizational culture can
be managed. Academics interested in understanding and analyzing culture tend to say no.
58
59. While there may be no definitive answer to the question, the critical and the managerial
sides of the debate and inform and renew each other so it remains important to explore
both.
BIBLIOGRAPHY
1. The Concept of the Marketing Mix" from the Journal of Advertising Research, June
1964 pp 2-7
2. "Passionate & Profitable: Why Customer Strategies Fail and 10 Steps to Do Them
Right!", Lior Arussy, John Wiley & Sons, 2005
3. "Marketing Management: Strategies and Programs", Guiltinan et al, McGraw
Hill/Irwin, 1996
4. Brown, Stephen (1993), „Postmodern Marketing?“, European Journal of Marketing
Vol. 27 No. 4, pp. 19-34
WEBLIOGRAPHY
59
60. www.clguptaltd.com
ANNEXURE
QUESTIONNAIRE
Q.1. How much time, are you working in C. L. Gupta Export Ltd.?
a. 1 year b. 2 years
c. 3 years d. More than 3 years
Q.2. Do you understand the concept of organizational culture?
a. Yes b. No c. Can't say
Q.3. Does organization culture describes the belief and ideas about what kinds of goals,
members of an organization should pursue?
a. Yes b. No c. Can’t say
Q.4. Which one is the very important characteristics of healthy organizational culture?
60
61. a. Equal opportunity for each employees
b. Strong communication with all employees
c. Regard for and fair treatment of each employee
d. Lower than average turnover rates
Q.5. Which one is the most effective benefits of strong and productive culture?
a. High employee motivation and loyalty
b. Increased team cohesiveness
c. Promoting consistency and encouraging coordination
d. Shaping employee behavior at work
Q.6. Which factor and elements influence more the organizational culture?
a. Control systems b. Organization structure
c. Power structures d. Rituals and Routines
Q.7. Does organizational culture has an impact on recruitment and retention?
a. Yes b. No c. Can't say
Q.8. Do you think that change of culture in the organization is very important investable?
a. Yes b. No c. Can't say
Q.9. The main benefits of organization culture change is
a. reduce employee turnover b. Influence employee behavior
c. Make improvement to the company d. Reflects the company objectives
Q.10. As par your opinion, the organizational culture of C. L. Gupta Export Ltd. are strong
and effective?
a. Yes b. No c. Can't say
Q.11. Which one is the important and strong factor of healthy organization culture?
a. Productivity b. Growth of the company
c. Efficiency d. Employee turnover
Q.12. Which types of culture of C. L. Gupta Export Ltd. implement?
a. Power Culture b. Role Culture
c. Task Culture d. Person Culture
Q.13. Does work environments reinforce culture on a daily basis by encouraging
employees to exercise cultural values?
a. Yes b. No c. Can't say
Q.14. Does C. L. Gupta Export Ltd. provide equal opportunity for each employee to
realize their full potential with the company?
61
62. a. Yes b. No c. Can't say
Q.15. Does C. L. Gupta Export Ltd. have strong communication with all employee
regarding policies and company issues?
a. Yes b. No c. Can't say
Q.16. Does C. L. Gupta Export Ltd. regard for and fair treatment of each employees as
well as respect for each employees contribution to the company?
a. Yes b. No c. Can't say
Q.17. Does C. L. Gupta Export Ltd. has strong company leaders with a strong sense of
direction and purpose?
a. Yes b. No c. Can't say
Q.18. Do you think that C. L. Gupta Export Ltd. have healthy organizational culture?
a. Yes b. No c. Can't say
62