Annexure - 1

Organisational culture questionnaire - Profile of employee

Fill and Tick the appropriate column
1.Name (Optionl):
2. Designation General Manager Deputy Assistant Junior Manager/
Manager Manager Manager Supervisor

3. Age 4. Marital Status

Below 25 26-30 31-35 Married Un married

36-40 41-50 Above 50 Separated Widower

5. Educational School level Diploma UG PG Professional

Qualification

6. Family Less than 3 3-4 5-6 7-8 9-10 Above 10

Size

7. Personal Below 1.2 1.2-2.0 2.0-2.8 2.8-3.6 Above 3.6

Income Lakhs Lakhs Lakhs Lakhs Lakhs

8. Family Below 1.5 1.5-2.5 2.51-3.0 3.51- 4.0 Above 4

Income Lakhs Lakhs Lakhs Lakhs Lakhs

Years
Below 5 5-10 11-15
9. Experience
16-20 21-25 Above 25
 Annexure - 2
Organisational Culture Questionnaire
Please tick (
) the appropriate columns

Agree Nor
Disagree
Disagree

Disagree
Strongly

Strongly
Neither
Sl. Particulars seeking for the dimensions of

Agree
agree
No. Organisational Culture

1. The Policies and the organisation structure in our organisation have

been clearly defined.
2. In our organisation our management resents your checking
everything with them; i.e. if you think you’ve got the right approach
you just go ahead.
3. In our organisation people are rewarded in proportion to the
excellence of their job performance.
4. Our business has been built-up by taking calculated risks at the right
time.
5. A friendly atmosphere prevails among the people in our organisation.
6. In our organisation when you are on a difficult assignment you can
usually count on getting assistance from your boss and colleagues.
7. Around here there is a feeling of pressure to continually improve
our personal and group performance.
8. In our organisation the attitude of our management is that conflict
between competing units and individuals can be very healthy.
9. In our organisation people are proud of belonging to this
organisation.
10. People in our organisation are giving more ideas, information, feed
back on customers, products, service etc.
11. In our organisation the outcome of confrontation will be better role
clarity, improved problem solving, willingness to deal with
problems and also with typical ‘employees’ and customers.
12. In our organisation trusting and friendly relations are highly valued.
13. In our organisation people voluntarily ownup their mistakes
14. In our organisation people take the initiatives and also preventive
action on most matters.
15. In our organisation people are given freedom to plan and act in
one’s own sphere.
16. In our organisation people are always working together to solve
problems with team spirit.
17. In our organisation people are encouraged for innovative
approaches in solving problems.
18. In our organisation people believe that the scope or conveying their
ideas to the superior is possible.
 Agree Nor
Disagree
Disagree

Disagree
Strongly

Strongly
Neither
Sl. Particulars seeking for the dimensions of

Agree
agree
No. Organisational Culture

19. In our organisation communication is used as an effective way of

getting relevant feedback and critical information for corrective
action.
20. In our organisation leaders plan the tasks, distribute assignments
and supervise the work on the organisation.
21. In our organisation ‘High’ Performance is celebrated with
everybody joining it.
22. In our organisation senior people based on their age and service are
recognized by the organisation by offering cash awards, certificates
etc.
23. In our organisation all the people are provided with large working
tables and furniture.
24. In our organisation irrespective of the rank, and designation all are
provided with company uniform.
25. In our organisation people are provided with ‘Quality food’.
26. In our organisation informal groups and networks are used to share
the organisational information among themselves.
27. In our organisation time and punctuality is highly valued.
28. In our organisation as people know their boundary they respect the
decisions once taken jointly by a senior and junior colleague on
delegation.
29. In our organisation the main concern of people is to help one
another to develop greater skills and thereby advance in the
organisation.
30. In our organisation the atmosphere is very friendly and people
spend enough time in informal relations.
31. In our organisation supervisors are more concerned with
maintaining good relationship with their subordinates.
32. In our organisation when working on solutions to problems people
here keep in mind the needs of the organisational members as well
as society at large.
33. In our organisation a mistake by a subordinate is treated as an
experience (by the boss) from which lessons are learnt to prevent
failure and improve performance in the future.
34. In our organisation decisions are made by keeping in mind the good
of the employees and society.
35. In our organisation innovation or change is mainly initiated and
implemented through highly result oriented individuals.
 Agree Nor
Disagree
Disagree

Disagree
Strongly

Strongly
Neither
Sl. Particulars seeking for the dimensions of

Agree
agree
No. Organisational Culture

36. Our organisation cares for the financial stability of its employees
37. In our organisation supervisors use their expertise and competence
in dealing with issues
38. There is a cordial relationship between the union and management
in our organisation
39. In our organisation provision for welfare amenities is available
40. In our organisation superior always lend their help for the
subordinates.
41. In our organisation provisions are made to extend short-term and
long term facilities to its employees and their families
42. In our organisation always a higher human orientation prevails
among the supervisors
43. Top management safeguards its employees at risky situations
44. In our organisation there is a provision for Bonus and other
allowances.
45. In our organisation superiors mould the juniors for future career
developments.
46. Our organisation provides, retirement benefits to its employees.
 Organisational performance questionnaire

Agree Nor
Disagree

Disagree

Disagree
Strongly

Strongly
Neither
Sl. Annexure to Particulars seeking for the dimensions of

Agree
agree
No. Organisational Culture

1. In this organisation products are developed constantly.

2. This organisation always offers quality products
compared with its competitors
3. In this organisation employees believe that they have a
feeling of satisfaction.
4. This organisation views improved market share as an
important source of competitive advantage.
5. In this organisation increase in sales is taken as a sign for
acceptance of its products in the market.
6. In this organisation profitability is taken as a sign for its
improved performance.
7. This organisation views all round performance as a sign
of for its future growth.
8. In this organisation employees have a feeling that they
are motivated.

THANK YOU FOR TAKING THE TIME TO RESPOND

All responses will be kept confidential. Neither you nor your organisation will be revealed by
name in the subsequent analysis / interpretation. If you have any comments or would like to amplify on
any of your answers, please feel free to attach additional sheets.
THANK YOU ONCE AGAIN
Kindly return the completed questionnaire to,
M. Arumugam, M.Tech., M.B.A.,
25/13, State Bank Officers colony,
Maharajanagar, Tirunelveli-11.
Pin : 627 011. Mobile : 94432-79628.

 Data collected through this questionnaire will be kept confidential and will not be revealed to any body.
A COMPARATIVE STUDY ON ORGANISATIONAL CULTURE AND ITS
INFLUENCE ON THE BEHAVIOURAL PATTERNS OF EMPLOYEES
IN TEXTILE MANUFACTURING ORGANISATIONS
IN COIMBATORE AND MADURAI

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Madurai Kamaraj University

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Doctor of Philosophy in

Business Administration

By
M.Arumugam, M.Tech., M.B.A., MIE., C.Eng.

Under the Supervision of

Dr.P.C. Sekar, M.B.A., M.Com., Ph.D.,
Professor
Department of Management Studies
Madurai Kamaraj University
Madurai – 625 021.

MADURAI KAMARAJ UNIVERSITY

Palkalai Nagar
Madurai – 625 021
India.
August 2007
A COMPARATIVE STUDY ON ORGANISATIONAL CULTURE AND ITS INFLUENCE
ON THE BEHAVIOURAL PATTERNS OF EMPLOYEES IN TEXTILE
MANUFACTURING ORGANISATIONS IN COIMBATORE AND MADURAI

Synopsis of the Ph.D., Thesis in Business Management

Submitted to Madurai Kamaraj University, Madurai.

By
M.Arumugam.

Introduction
Organisation culture refers to various attributes of an organisation developed over a
period of time. The creation of culture may be by its founder and then shaped by his
successors as the organisation has grown. There is no single organisational culture suitable
for all types of organisations. Each organisation requires a specific culture for its growth, and
survival.

Organisational culture affects not only the behaviour but also how organisations
themselves interact with one another. Pace and Stren (1958) theorized that the concept of
culture might impose understanding individual attitudes and behaviour and it would
operationalise the environment (E) as given by Lewes formula.
B=P×E
where, B - behaviour
P - Personality
and E - environment for organisational
psychology
They postulate that behaviour is a function of the interaction of the organisation and
environment is relevant to the problem in selecting training programme for job satisfaction
and mental health in general. Organisational culture can have its influence on motivation for
job satisfaction and productivity. The type of culture an organisation has depends on the
nature of employees it has, the type of technology, educational level of the employees and
other related variables. It is argued that Organisational culture exists in the perceptions of the
employees of that Organisation.

1
 Further, the findings of the research will also suggest the organisations to modify/
build a suitable culture to improve the overall performance of the firm. In view of the above
the behavioural patterns of the employees involved could be improved further. This will lead
to improve “the quality of work life”, of employees, employed in the textile manufacturing
organisations in Tamilnadu and also to the overall development of textile Industries in
Tamilnadu.

Statement of the Problem

After globalisation and liberalization India has openedup her manufacturing sector
economy to the people of other countries at large. This has paved the way for many Indian
organisations to become Multi National Companies (MNCs) and many Multi National
Companies to start their manufacturing base in India.

The researcher’s curiosity was naturally aroused regarding the Organisational culture
of the employees of the textile manufacturing units in Tamil Nadu. Against such threats
hovering around them and destroying their peacefulness, this study attempts to take a broad
but steep study into the organisational culture and its effects on the behavioural patterns of
the employees of the Textile manufacturing organisations.

Need for the Study

At present the textile manufacturing industry is facing a crisis within India due to
severe problems such as government policies, scarcity of raw material, increase in the power
cost and lack of modernization of the old machineries etc. A tough competition from our
neighbouring countries such as China and Pakistan is also on the wheels due to low raw
material cost and competitive low price of yarn/cloth offered by them in the international
market. Being a labour intensive industry, and a vital source of revenue generator to both the
central and state governments exchequer any crisis to this industry will affect the entire
national economy. The need of the hour is to save the same by taking some kind of corrective
measures. With this in mind, the present study has been contemplated to make a critical
appraisal of the organisational culture variables prevailing in the textile manufacturing
organisations and thus reveal the current situation.

2
Scope of the study
Organisational culture, Organisational performance vis-a-vis employee behaviour
being a vital issue, the scope of the study is vast. As textile manufacturing industries offer
employment opportunities for more than 2 million people, the study may provide necessary
guidelines for studying the various factors building the Organisational culture in the textile
manufacturing industries. Moreover the study is significant as it aims to correlate the
employee behaviour also in relation to Organisational culture and Organisational
performance. In the same manner the employees working in other manufacturing industries
can also be studied.

Objectives of the Study

The objectives of the present study are:
1. To study the prevailing organisational culture dimensions in the study units
2. To compare the organisational culture dimensions between Madurai and
Coimbatore
3. To reveal the socioeconomic profile of the employees working in the study units
4. To identify the discriminant dimensions of organisational culture and their relative
contribution among the employees in Madurai and Coimbatore
5. To analyse the impact of organisational culture dimensions on organisational
performance variables.
6. To examine the impact of organisational culture dimensions on the behavioural
variables such as, job satisfaction and motivation.
7. To identify the important discriminant behavioural variables among the
employees in Coimbatore and Madurai..

Hypotheses of the study

In order to study the above objectives the following hypothesis have been proposed.
i. There is no significant relation between the mean scores of organisational
dimensions between Madurai and Coimbatore.
ii. There is no significant relation between the organisational culture dimensions
of the employees between Madurai and Coimbatore
iii. Organisational performance has no significant impact on

Product development,

Quality of the product,

3

Market share

Sales Growth and

Profitability.
iv. There is no Significant relationship in job satisfaction between Madurai and
Coimbatore.
v. There is no significant relationship between job satisfaction index and profile
of the employees.
vi. Organisational culture dimensions have no significant impact on job
satisfaction.
vii. There is no significant relationship in motivation between Madurai and
Coimbatore.
viii. There is no significant relationship between motivation index and profile of
the employees.
ix. Organisational culture dimensions have no significant impact on motivation.
x. There is no significant difference between the mean and discriminate power of
the behavioural indices between Coimbatore and Madurai.

Conceptual frame work

Organisational culture questionnaire
From seventy statements of organisational variables the items were minimized to
forty six after conducting a pilot study. To each of these items the employee indicates
whether he strongly agrees, agrees, neither agrees nor disagrees (no opinion), disagrees and
strongly disagrees using Likert’s five point scaling technique.

Organisational performance questionnaire

The Questionnaire items measuring organisational performance were drawn from the
Dension Organisational culture survey (Dension & Neale, 1996; Dension and young 1999)
Following Denison and Mishra (1995), firm’s effectiveness was measured with eight
performance variables using five-point Likert scale. The variables measured the following
dimensions. Product development, quality of product, job satisfaction, market share, sales
growth, overall performance, profitability and motivation.

Period of the study

The study was conducted during the month of June 2006 to December 2006. The
secondary data suitable for a period of ten years between 1995-2006 are effectively used.

4
Methodology for collection of data
Research Design
Research Design is the plan, structure and strategy of investigation conceived so as to
obtain answers to research questions and to control variations.

Type of Research Design

The research design in this study is descriptive in nature and style. The basic
dimensions of organisation culture like structure, responsibility, rewards, autonomy,
leadership, supervision, communication, decision making, change etc. are studied.

Type of universe :
The number of textile spinning mills working in Coimbatore and Madurai are known
and hence the universe is finite in nature.

Sampling unit :
Textile spinning mills working in Coimbatore district and Madurai are taken up for
the research. Only private sector mills are included for the study. Spinning mills with more
than six thousand spindles and member of South India Mills Association (SIMA) with their
location are identified and segregated into 4 strata. On this basis mills from each strata is
finalized as the sampling unit.

Sampling Frame :
The details are given in the table below.
Area / Location Sample Total Mills
Coimbatore 70 102
Madurai 56 80
Total 126 182
Source : SIMA Annual Report 2005

Analytical Framework
For analyzing the data collected during the investigation, the following statistical
tools were used based on the nature of data and the objectives of the research. In the
present study statistical tools used are ‘t’ test, one way analysis of variance, factor analysis,
multiple regression and two group discriminant analysis.

5
1. ‘t’ Test
The ‘t’ test is applied to test the significant difference between two means drawn
from two group of samples.

2. One way analysis of variance :

The one way analysis of variance is applied to find out the significant difference
among more than two groups

3. Factor analysis:
In order to identify the determinants of the Organisational culture in Textile
Manufacturing Industries in Tamil Nadu, the Factor Analysis has been used.

4. Multiple Regression analysis:

The impact of independent variables on the dependent variables are analysed with the
help of multiple regression analysis.

5. Discriminant analysis (Two group model)

The discriminant analysis is used to identify the important, discriminant variables
among two or more groups.

Limitations of the study

The study is limited to textile manufacturing industries situated in Tamilnadu
especially in Coimbatore and Madurai.

The data collected for the study is limited to 70 Organisations in Coimbatore and 56
Organisations in Madurai with 630 respondents chosen as samples.

The study is limited by the limitations of the analytical tools used for the analysis of
the data in the study.

Scheme of reporting
The study entitled “A Comparative Study on Organisational Culture and its
Influence on the Behavioural Patterns of Employees in textile Manufacturing
Organisations in Coimbatore and Madurai” is presented in seven chapters.

6
 The first chapter “Introduction and Research design of the study” introduces the title
and presents the statement of the problem, scope of the study, objectives of the study,
Hypothesis of the study, conceptual framework, operational definitions, profile of the textile
Manufacturing industries, Period of the study, Methodology for collection of data, tools for
analysis, Limitations of the study and Scheme of reporting.

The second chapter is entitled “Review of Literature” which examines the relevant
past literature available with respect to organisational culture.

The Third Chapter titled “Textile Industries in India – An overview, which depicts the
background, growth, contribution and structure of textile Industry in India, Tamilnadu,
Coimbatore and Madurai.

The Fourth Chapter discusses Textile Industry on its Global Scenario.

The Fifth chapter is devoted to analysis of the results and discussion.
The Sixth Chapter presents the findings of the Analysis.
The Seventh Chapter presents the summary of Findings and suggestions. This chapter
also gives the conclusion and scope for future research of this study.

Analysis of the Results and Findings

Organisational culture and its consequences
In the past two/three decades organisational culture has been studied by academicians
and practitioners in a wide variety of work settings in the hope that it improves job
performance and organisational effectiveness or atleast reduces tardiness, absenteeism and
employee turnover. A number of research studies have demonstrated significant relationships
between organisational culture and several behavioural out comes and organisational
performance

Organisation culture is comprised of a mixture of norms, values, expectations,

policies and procedures that influence work motivation, commitment and ultimately
individual work unit performance. Positive climate encourages while negative climate
inhibits discretionary effect. Organisational culture refers to the quality of working
environment. If people feel that their values are respected within the organisation, they are
more likely to contribute positively to the achievement of business outcomes. Creating a
healthy organisational culture requires attention to the factors which influence employee’s

7
perceptions, including the quality of leadership, the way in which decisions are made and
whether the efforts of employees are recognized.

A total of forty-six variables determining organizational culture in the textile

industries have been identified and analysed. For the purpose of convenience of analysis, the
variables of organisational culture have been grouped using Factor analysis, and the analysis
results in ten dimensions. The ten dimenstions and the associate variables are listed as below

Organisational culture Dimensions - Factor Analysis

Factor I Team work and Participative Management

Six variables namely decision making, rituals in meeting, support, openness, identity
and problem management are closely correlated and formed as the first factor which would
deserve to be called as Team work and participative management.

S.No. Variables
1 Decision Making
2 Rituals in Meeting
3 Support
4 Openness
5 Identity
6 Problem Management

Factor II Conflict Resolution Adequacy

The next factor consists of five variables namely conflict, interpersonal relation,
management of mistakes, confrontation and informal groups. All these five variables relate to
conflict resolution adequacy(CRA) and so the factor is named as CRA.

S.No. Variables
1 Conflict
2 Interpersonal Relation
3 Management of Mistakes
4 Confrontation
5 Informal Groups

8
 Factor III Employee Empowerment

The six variables namely autonomy, proactive, warmth, authenticity, celebrations and
innovation / change are clustered together to form the third factor / dimension, namely
employee empowerment

S.No. Variables
1 Autonomy
2 Proactive
3 Warmth
4 Authenticity
5 Celebrations
6 Innovation / Change

Factor IV Transactional and Transformational Leadership

The Factor IV is constituted by the variables namely voluntary help, human

orientation, moulding of subordinates, using of expertise and competence and leadership.

S.No. Variables
1 Voluntary Help
2 Human Orientation
3 Moulding of Subordinates
4 Using of expertise and competence
5 Leadership

9
Factor V- Structural and Process interventions

The variables namely structure, communication, time and punctuality, norms /

standards and boundary are forming the fifth factor.

S.No. Variables
1 Structure
2 Communication
3 Time and Punctuality
4 Norms / Standards
5 Boundary

Factor VI Extrinsic Rewards

The variables namely reward, welfare schemes, economic development of employee

and bonus are narrated into one factor by the factor analysis and is named as Extrinsic
rewards.

S.No. Variables
1 Reward
2 Welfare Schemes
3 Economic Development of Employees
4 Bonus

Factor VII Support and Security

The variables namely the retirement benefits, rooms and furniture, dress code and top
management support are narrated by the factor analysis into one dimension of organisational
culture namely Support and Security.

S. No. Variables
1 Retirement Benefits
2 Rooms and furniture
3 Dress code
4 Top Management Support

10
Factor VIII Parental Leadership

The Variables namely risk tolerance, responsibility and trust are clustered together to
form the eighth factor namely Parental leadership.

S.No. Variables
1 Risk Tolerance
2 Responsibility
3 Trust

Factor IX Concern for Welfare

The factor analysis narrate the four variables namely food, short term and long term
facility to employees and families, welfare amenities and union management relationship into
one dimension namely Concern for welfare since its factor loadings are higher in the
dimension of concern for welfare compared to other dimensions.

S.No. Variables
1 Food
2 Short and long term Facilities To employees and families
3 Welfare amenities
4 Union management relationship

Factor X Team Building

The last dimension narrated by the factor analysis by four variables namely beliefs
and values, orientation, experimentation and collaboration is named as Team Building.
S.No. Variables
1 Beliefs and values
2 Orientation
3 Experimentation
4 Collaboration

11
Comparison of Organisational culture dimensions in Madurai and Coimbatore
The scores on the above said ten dimensions are drawn from the mean scores of the
variables in each dimension. The mean of factor scores has been analyzed to exhibit the
organisational culture in the study area.

The findings are, the highly viewed organisational culture dimension in Madurai are
Parental Leadership, Conflict Resolution Adequacy and Support and Security since its mean
scores are 3.2768, 3.2311and 3.1143 respectively. In the case of Coimbatore these
dimensions are Team work and Participative management, Employee Empowerment and
Conflict resolution adequacy with their mean scores of 4.6441, 4.3142 and 4.0443
respectively. The poorly viewed organisational culture dimensions in Madurai are Structural
and Process Interventions, Transactional and Transformational Leadership and Team
Building with their mean scores of 2.4408, 2.5641 and 2.6911 respectively. In Coimbatore
The poorly viewed organizational culture dimensions are Team Building and Concern for
welfare since its mean scores are 2.7183 and 3.2146 respectively.

In order to find out the significant difference among the two areas namely Madurai
and Coimbatore regarding the existence of organisational culture, the ‘t’ test has been used
and the respective ‘t’ statistics are shown below.

S.No. Dimension in organisational culture ‘T’- Statistics

1 Team work and Participative Management -2.9186*

2 Conflict Resolution Adequacy -2.0642*
3 Employee Empowerment -2.3108*
4 Transactional and Transformational Leadership -217646*
5 Structural and Process Interventions -2.9193*
6 Extrinsic Rewards -1.9808*
7 Support and Security -0.8644
8 Parental Leadership -0.3917
9 Concern for Welfare -0.5086
10 Team Building -0.2183
* Significant at 5% level.

12
 Regarding the existence of organisational culture the significant difference among
Madurai and Coimbatore is identified in the dimensions namely Team work and participative
management, Conflict resolution adequacy, Employee Empowerment, Transactional and
Transformational Leadership, Structural and Process Interventions and Extrinsic Rewards
since the respective ‘t’ statistics are significant at five percent level. In general the overall
organisational culture is better in Coimbatore when compared to Madurai.

Socio-economic Profile of employees

Since there exists a significant difference in the cultural dimensions among Madurai
and Coimbatore employees, the researcher tried to find out the attributes which causes this
difference. For this purpose the researcher selected profile of the respondents and found the
association between respondents’ profile and cultural dimenstions. The summary of the
findings are

1. 34.8 percentage of the total employees working in the textile organizations in

Coimbatore and Madurai belonging to the category of Junior Managers /
Supervisors.
2. The important age group among the employees above 45 years and 41-45 years
are with 28.40 and 24.60 percentage to the total.
3. The majority age group in Madurai and Coimbatore are more than 45 years.
4. The percentage of the married employees are 82.60
5. The important level of education among the employees are Diploma holders and
Undergraduates with 52.20 percentage and 17.20 percentage respectively to the
total.
6. The noticeable family size is 3-4 and 5-6 members.
7. The major personal income is in the range of Rs. 1.2 – 2.0 lakhs (33.60%) and
below Rs. 1.2 lakhs (24.2%).
8. The important family income is in the range of Rs. 1.5-2.5 Lakhs (29.20%) and
below Rs. 1.5 lakhs (22.80%).
9. The major experience level falls between 21-25 years and above 25 years with
24.40 and 23.6 percentage respectively to the total.

13
Discriminant dimensions of organisational culture among the employees in Madurai
and Coimbatore

Since there exists a difference in the organizational culture dimensions to improve

upon it the decision makers should be helped with the importance of the dimensions. The
specific variables where the difference exists in the organizational culture dimensions and
their importance was analysed by means of a discriminant analysis and the findings are
established discriminant function as, z = 0. 2804 Team Work and Participative Management +
0.2343 Conflict Resolution Adequacy + 0.1817 Employee Empowerment + 0.1445
Transactional and Transformational Leadership + 0.1091 Structural and Process Interventions
+ 0.0144 Extrinsic Rewards.

A higher discriminant power of the organisational culture dimensions are identified in

the case of Conflict Resolution Adequacy, Transactional and Transformational Leadership
and concern for welfare since the respective Wilks Lambda coefficients are 0.1241, 0.1396
and 0.2463 respectively.

The relative contribution of a discriminant dimension of the organisational culture

have been computed with the help of the product among the discriminant coefficient and the
mean difference of the dimensions and the results are given below.

The highly influencing discriminant dimensions on the discriminant function

are, Team work and participative management, Conflict Resolution Adequacy and Employee
Empowerment, since the respective discriminant coefficients are 0.2804, 0.2343 and 0.1817.
The relative contribution of the dimensions of organisational culture in the total discriminant
score identified as high, in the case of Team work and participative management, Employee
Empowerment and Conflict Resolution Adequacy as 35.05, 19.74 and 15.39 percent
respectively. The established discriminant function correctly classify the cases to the extent
of 72.09 percent. The evaluation of two group discriminant analysis infers that the important
discriminant dimensions of organisational culture among the employees in Coimbatore and
Madurai are, team work and participative management and Employee Empowerment,
respectively.

14
Impact of Organisational Culture on Organisational performance variables

The organisational performance is the ultimate aim of all activities relating to an

organisation. In this research organizational performance was studied with the help of
tangible factors such as product development, quality, market share, sales growth overall
performance, and profitability and intangible variables or behavioural variables such as Job
satisfaction and motivation. The employees are asked to rate the above said eight variables on
a five point scale.

Organizational performance interms of tangible variables were analysed and

compared by measuring the level of perception of employees between Madurai and
Coimbatore textile mills. The mean scores of performance shows significant variations
among the variables namely, product development, sales growth, overall performance and
profitability which is revealed by the ‘T’ statistics calculated. As a further step a discriminant
analysis was also performed on these variables to know the contribution of each of these
variables. The outcome of the result shows organisational performance contributes to the
extent of 45.02 percent, product development contributes to the extent of 31.77 percent of
variation, profitability contributes 13.25 percent, sales growth contributes to 9.96 percent in
explaining the variation in the organisational performance among Madurai and Coimbatore.
These results revealed that there exists a distinct difference between the performance of
Madurai and Coimbatore in the perception of the Textile mill employees. Taking into
account these variations, the organizational performance index was developed. The
organizational performance index is a composite measure and is directly having bearing on
the organizational culture, hence the variables determining organizational culture was
considered as independent variables and to analyse their effect on organizational performance
a multiple regression analysis was carried out and the results were shown below.

15
 S. Dimension in organisational Regression coefficient Pooled
No. culture Madurai Coimbatore data

1 Team work and Participative

0.1014 0.1968* 0.1406*
Management
2 Conflict Resolution Adequacy 0.2302* .2143* 0.2081*
3 Employee Empowerment 0.1724* 0.1402* 0.1511*
4 Transactional and
0.1339* 0.1617* 0.1273*
Transformational Leadership
5 Structural and Process
0.1442* 0.1348* 0.1314*
Interventions
6 Extrinsic Rewards 0.1387* 0.1717* 0.1421*
7 Support and Security 0.1011 0.1082 0.0961
8 Parental Leadership 0.1563* 0.0911 0.1014
9 Concern for Welfare 0.1146 0.1246* 0.1117
10 Team Building 0.0896 0.1408* 0.1296*
Constant 1.0249 1.8149 1.7039
2
R 0.7441 0.7938 0.8347
“F” – Statistics 11.3344* 14.6983* 16.3697*
* Significant at 5% level.

The multiple regression equation is capable of explaining the total variations to the
extent of 74.41 percent in Madurai and 79.38 percent in Coimbatore. Both the regression
equations are reliable, since their F statistics values stood at 11.33 and 14.69.

Among the employees in Coimbatore Textile mills Team work and Participative
Management, Conflict Resolution Adequacy, Employee Empowerment, Transactional and
Transformational Leadership, Structural and Process Interventions, Extrinsic Rewards,
Concern for Welfare and Team Building are significantly influencing the Performance
whereas in Madurai Conflict Resolution Adequacy, Employee Empowerment, Transactional
and Transformational Leadership, Structural and Process Interventions and Extrinsic Rewards
are affecting the performance significantly. It clearly indicates that in the perception of
Madurai employees, Team work is lacking among them and also they are not given adequate
participation in the decision making process. This can be considered as a potential area of

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improvement and it may be suggested that in Madurai if the employees are given more
freedom and if the management educate them about team work and inculcate the team work
culture the performance of Madurai Textile mills can also be improved further.

The Impact of Organisational culture dimensions on job satisfaction

In the second phase the impact of organization culture on Job satisfaction was
measured. The job satisfaction level was compared between the employees of Madurai and
Coimbatore. There is a significant difference in the mean score was found from the results of
‘t’ test. To understand the reason for the variation in job satisfaction level, the impact of
organizational culture on job satisfaction is measured by means of an index called job
satisfaction Index and the calculated Index shows 5 levels. The results are shown in the
following table.

Job Satisfaction Index among the employees

No of Employees
Job Satisfaction Index in
S. No. Total
percent Madurai Coimbatore

1 Less than 21 39 27 66
2 21-40 25 69 94
3 41-60 76 89 165
4 61-80 38 51 89
5 Above 80 37 49 86
Total 215 285 500

Multiple regression analysis was the tool used to measure the impact of organizational
culture factors on job satisfaction. The coefficient of determination for the regression
equations for Madurai and Coimbatore are found to be 79.19 percent and 73.83 percent
respectively. This shows the organisational culture dimensions are capable of explaining the
job satisfaction to a better extent in Madurai than Coimbatore. The regression equations are
significant since the F values are 12.49 and 10.86 for Madurai and Coimbatore respectively.

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 The significant influencers among organizational culture factors for Madurai are
Team work and participative management, Conflict Resolution Adequacy, Employee
Empowerment, Transactional and Transformational Leadership, Extrinsic Rewards, Support
and Security and Concern for welfare. A unit increase in the perception on the above said
dimensions of organisational culture results in an increase in job satisfaction index by 0.2664,
0.3142, 2673, 0.1714, 0.3143, 0.2662 and 0.1473 units respectively.

The significantly influencing dimensions of organizational culture among the

employees in Coimbatore are Participative management, Conflict Resolution Adequacy,
Employee Empowerment, Transactional and Transformational Leadership, Concern for
welfare and Team Building. Since the respective regression coefficients are significant at five
percent level. The analysis of pooled data reveals that a unit increase in the perception on
Team work and participative management, Conflict Resolution Adequacy, Employee
Empowerment, Transactional and Transformational Leadership, Support and Security,
concern for welfare and Team Building, results in an increase in job satisfaction index by
0.2707, 0.3242, 0.2863, 0.1908, 0.2164, 0.1893, 0.1593 \and o. 1227 units respectively.

The Impact of Organisational Culture Dimensions on Motivation

The motivation towards the work is the other behavioral consequence of
organisational culture. It is measured by the employees attitudes on motivation. The mean
score on motivation among the employees of Coimbatore has a higher mean score of 3.7183
when compared to a lower mean score of Madurai with 3.1145. It is also evident from the
above there is a significant difference between the level of motivation among the employees
in Coimbatore and Madurai at five percent level .

In order to analyse the impact of cultural dimensions on motivation, Regression

analysis is carried out keeping motivation as a dependent variable and organisational Culture
factors as independent variables.

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Impact on Perception of employees on various dimensions of organisational culture and
Job Satisfaction

Dimension in organisational Regression coefficient

S.No. Pooled data
culture Madurai Coimbatore

1 Team work and participative

0.2664* 0.3496* 0.2707*
Management
2 Conflict Resolution Adequacy 0.3142* 0.3649* 0.3242*
3 Employee Empowerment 0.2673* 0.3108* 0.2863*
4 Transactional and
0.1714* 0.2206* 0.1908*
Transformational Leadership
5 Structural and Process
0.1942 0.1144 0.0811
Interventions
6 Extrinsic Rewards 0.3143* 0.2069 0.2164*
7 Support and Security 0.2662* 0.1083 0.1893*
8 Parental Leadership 0.0844 0.1129 0.0706
9 Concern for Welfare 0.1473* 0.2063* 0.1593*
10 Team Building 0.1141 0.1449* 0.1227*
Constant 1.2143 2.2449 1.6786
R2 0.7919 0.7386 0.8183
“F” – Statistics 12.4942* 10.8617* 14.0817*
* Significant at 5% level

The significantly influencing dimensions of organisational culture on the motivation

index among the employees in Madurai are, Team work and participative management,
Conflict Resolution Adequacy, Support and Security, concern for Welfare and Team
Building. A unit increase in the perception on the above said dimensions results in an
increase in the motivation index among the employees by 0.2148, 0.2409, 0.1723, 0.2304 and
0.1881 units respectively . The significantly influencing dimensions of organisational culture
among the employees of Coimbatore are Team work and Participative Management, Conflict
Resolution Adequacy, Employee Empowerment, Transactional and Transformational
Leadership, Extrinsic Rewards, Concern for welfare, as the respective regression coefficients
are significant at five percent level. The analysis on pooled data reveals that a unit increase in

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the perception on Team work and participative management, Conflict Resolution Adequacy,
Employee Empowerment and concern for welfare results in an increase in the motivation
index by 0.1811, 0.3224, 0.1907 and 0.1893 units respectively. The changes in perception on
various dimensions of organisational culture results changing motivation index among the
employees to the extent of 82.47 percent. The significant ‘F’ Statistics show the validity of
the fitted regression model.

Suggestions

1. The management may introduce open offices without cabins and partitions for its
employees.
2. The management may initiate daily shop floor meetings to solve day to day issues.
3. The management may provide subsidized Quality food and uniform to all its
employees.
4. The management may introduce small group activities such as “Quality circles”
which may improve the quality of the products.
5. Management may encourage those who are offering the company valuable
suggestions for improving the functioning of the organization.

Contribution to theory and Practice

Organisational culture though established in detail through various research models
and apt findings (as seen in the literature review) there was a lag found in the literature when
it comes to Indian context. Particularly the Indian studies focused on organizational climate
and the impact on behavioural intensions of the employees and their performances. (Singhal,
S and Sood, R., 1981; Abrol, S., 1981; Padake R. and Gandhi, P., 1981, Banral, P. 1982), to a
limited extent only.

The focus on organizational culture studies in textile industries of Southern India is a

virgin area, where more studies are warranted. This study fills the void through its major
contribution in the form of identified culture dimensions prevailing in the textile industry of
India. The role of Team work and participative management dimensions in determining the
organisational performance of textile mills is a significant addition to the organizational
literature which is established through this study.

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 Another significant addition to the literature is that the existence of varying cultural
dimensions in the same industry. In the Coimbatore city, the textile industry cultural
dimensions such as Team work and participative management, scope for advancement and
interpersonal relationship proved significant, whereas the significant textile industry cultural
dimensions in Madurai city are conflict Resolution adequacy and safety and security. This
adds a new perspective to take initiative in conducting cultural studies where different
cultural dimensions are visible within the same industry.

Beyond the contribution to the theory part, this study provides practical support to the
textile industry in India, particularly with reference to Coimbatore and Madurai areas. It is
evident from the study that the organisational cultural dimensions in Madurai are weaker than
Coimbatore, this imperative to focus on them and this will be of immensely helpful to the
textile entrepreneurs in the Madurai area.

Moreover, this study will also help to improve the interpersonal relationship
dimensions and transparency in decision making. The suggestions like having an open office
without cabins and partitions and conductance of shopfloor regular meetings from this study
may prove to be useful. Further the industry practioners may think of organizing quality
circles to ensure the important cultural dimensions and improve both productivity and
quality.

Thus, this research adds humbly a valid contribution to the theory and practice of
organizational culture among the textile industry.

Scope for future research

Culture studies in itself requires more qualitative approach to cross validate the
findings of quantitative studies like this research. So, future research warrants a quantitative
approach also for cultural studies in textile industries in India. Further a meta-analytic study
on various Indian cultures is the need of the hour. A combined reference point in the form of
a summary of all the organizational culture studies is seriously lagging. This may be
overcome by conducting a thorough meta-analytic study of the Indian organization culture
models.

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 This study also can be extended to study indepth on the role of organizational culture
on the performance of the organizations based on economic factors like profitability of the
organizations and it may prove vital for the economic functioning of textile organizations in
India. A more detailed cause and effect study using structural equation modeling may be the
next step for the cultural studies in the textile industries of India.

Beyond these studies, to enhance the cultural changes, a strategic cultural change
model is also is the need of the hour, which could help the entrepreneurs of this vital industry
of India to immediately apply in their units and to bring an organizational change.

CONCLUSION
Textiles constitute an integral part of Indian economy. Textile manufacturing units
are concentrated at these places where cotton and labour are available in plenty. Coimbatore
and Madurai are traditional centers of textile manufacturing in Tamil Nadu. Textile industry
has been opened to fierce competition since 1991, with the initiation of economic
liberalization policies of the government of India. Currently the industry is facing a crisis due
to governmental and non-governmental reasons resulting in poor performance and inability to
copeup with competitions. From the current research it could be concluded that both
organizationsal performance and the behavioural patterns of employees working in the
textile manufacturing organizations in Madurai and Coimbatore are affected by the various
dimensions of organizational culture.

About Culture
Obviously there are many more functions of organizational culture. Fact is that
organizational culture needs to be reckoned with the management. It must be managed,
aligned with the goals and strategies of the organizational functioning. In addition to the
traditional financial compensation the employees are looking for an element that could well
turn out to be the most pivotal of all, in their jobs. The deciding factor in which, whether an
employee stays back or moves on in an organization is based on the organizational culture,
especially the way it treats, values and trusts its employees. In reality organizational culture
is more complex, dynamic and consequential.

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