Climate and Culture

INTRODUCTION
Organizational climate, is often defined as the recurring patterns of behavior,

attitudes and feelings that characterize life in the organization, while an organization
culture tends to be deep and stable. Although culture and climate are related, climate
often proves easier to assess and change. At an individual level of analysis the concept
is called individual psychological climate. These individual perceptions are often
aggregated or collected for analysis and understanding at the team or group level, or
the divisional, functional, or overall organizational level.
Organizational Climate is the umbrella term to indicate the process of

quantifying the organizational culture of an organization. It is a set of properties of the
work environment, perceived directly or indirectly by the employees, that is assumed
to be a major force in influencing employee behavior.
OCL can also be defined as the recurring patterns of behavior, attitudes and
feelings that characterize life in the organization, while an organizational culture tends
to be deep and stable and involve deeply held values, beliefs and assumptions,
symbols, heroes, and rituals.
Organizational climate (sometimes known as Corporate Climate) is the process

of quantifying the “culture” of an organization; it precedes the notion of
organizational culture.
It is a set of properties of the work environment, perceived directly or indirectly

by the employees, that is assumed to be a major force in influencing employee
behavior.
Climate and culture are both important aspects of the overall context, environment or
situation.
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Organizational Climate & Culture:
“Organizational culture is connected with the nature of beliefs and expectations

about organizational life, while climate is an indicator of whether these beliefs and
expectations are being fulfilled.”
Climate of an organization is somewhat like the personality of a person. Just as

every individual has a personality that makes him unique and different from other
persons. Each organization has an organizational climate that clearly distinguishes it
from other organizations.
Basically, the organizational climate reflects a person’s perception of the

organization to which he belongs. It is a set of unique characteristics and features that
are perceived by the employees about their organizations which serves as a major
force in influencing their behaviour. Thus, organizational climate in a broad sense, can
be understood as the social setting of the organization.
A few important definitions are as given below.
According to Forehand and Gilmer, “Climate consists of a set of characteristics

that describe an organization, distinguish it from other organizations are relatively
enduring over time and influence the behaviour of people in it.”
According to Campbell, “Organizational climate can be defined as a set of

attributes specific to a particular organization that may be induced from the way that
organization deals with its members and its environment. For the individual members
within the organization, climate takes the form of a set of attitudes and experiences
which describe the organization in terms of both static characteristics (such as degree
of autonomy) and behaviour outcome and outcome- outcome contingencies.”
Thus, organizational climate is a relatively enduring quality of the internal

environment that is experienced by its members, influences their behaviour and can be
described in terms of the value of a particular set of characteristics of the organization.
It may be possible to have as many climates as there are people in the organization
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when considered collectively, the actions of the individuals become more meaningful
for viewing the total impact upon the climate and determining the stability of the work
environment. The climate should be viewed from a total system perspective. While
there may be differences in climates within departments these will be integrated to a
certain extent to denote overall organizational climate.
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NEED OF THE STUDY
Before understanding the meaning of organizational climate, we must first

understand the concept of climate.
“Climate in natural sense is referred to as the average course or condition of the

weather at a place over a period of years as exhibited by temperature, wind, velocity
and precipitation.”
However, it is quite difficult to define organizational climate incorporating the

characteristics of natural climate. This is so because the most frustrating feature of an
attempt to deal with situational variables in a model of management performance is
the enormous complexity of the management itself. People have defined
organizational climate on the basis of its potential properties.

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SCOPE OF THE STUDY
It has been seen from previous studies that organizational climate and culture
can influence behaviour, attitude and motivation of the employees. This would
produce better performance and better service from the part of the employees, thus
enhancing power plants effectiveness. Thus the findings of this study reveal that the
Indian economy on a high growth trajectory, bridging demand-supply gap is going to
be a serious challenge in coming years. The Electricity Act, 2003 stipulates long-term
open access to private power producers for inter-state transmission of electricity. The
sector has attracted private investment.
Power trading market in the country is also growing fast. This offers scope for
private developers to sell power in the merchant market through short-term contracts.
There are major opportunities emerging for Lanco in this sector keeping in mind the
power addition targets for the XI and XII Five Year Plans.
The study helps to determine which of the transformational leadership behavior
has the strongest influence to climate for organizational innovation.
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OBJECTIVES OF THE STUDY
Innovation and Risk Taking: The degree to which employees are encouraged to
be innovative and take risks.
Attention to Detail: The degree to which employees are expected exhibit

precision, analysis and attention to detail.
Outcome Orientation: The degree to which management focuses on results or

outcomes rather than on the techniques and processes used to achieve those
outcomes.
People Orientation: The degree to which management decisions are take into
consideration and the effect of outcomes on people within the organization.
Team Orientation: The degree to which work activities are organized around
teams rather than individuals.
Aggressiveness: The degree to which people are aggressive and competitive rather
easy going
Stability: The degree to which organizational activities emphasize maintaining the

status quo in contrast to growth
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LIMITATIONS OF THE STUDY
1. Transparency.
At my company, we go over all the key metrics of the business with the entire
company. The goal is for all employees to feel they know the thinking,
responsibilities, and strategy at various levels of the company and can share ideas and
feedback no matter who they are.
2. Time to disconnect.
We all need to hit the reset button once in a while -- people can't come in early
and leave late every single day without getting burnt out at some level. While you
want employees to have a work-hard founder’s mentality, you need to recognize the
work-life integration that exists and how significant it is to make sure you have
personally fulfilled, clear-thinking people. It’s important to understand that sometimes
life will get in the way of business and everyone should be allowed to take care of
pressing personal matters.
3. Empowerment and a sense of freedom.
You empower people by not micromanaging, erring on the side of giving

people general guidelines rather than explicit, detailed directions. Informed employees
are more involved and empowered in a company. And the more freedom people have
to take on tasks, manage them, find solutions, and execute them, the more they feel
connected to and woven into the company’s culture.
4. Physical space.
If you haven’t watched Susan Cane’s TED Talk on introverts, I highly

recommend it. She opened my mind to the idea that American businesses are built for
extroverts, down to the floor plans of our office spaces. Although open spaces are
great for some, other people need to be able to close the door to be at their most
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productive. It’s important to consider the comfort level of your employees before you
decide how to lay out space or what type of office space to lease.
5. Talking to customers and employees.
At different points in a company’s maturation process, you're almost

guaranteed to go through weeks or even months where you feel lost. When you
haven’t nailed a product market fit or you’re having challenges relating to your
product or corporate vision, the natural tendency is to turn your attention to where you
or your team went wrong. Another way to try to solve these problems is by talking to
your customers.
6. Your organizational design.
Simply put, organizational design is the processes, structure, and hierarchy you
put into place that allow you to put your culture into practice. It’s “how you do
things.” This will include your communication, company policies, team building,
performance indicators, performance evaluations, division of responsibilities, and
even how you schedule, and run, meetings. For example, do you have a weekly
meeting at the same time and in the same place, or do you hold meetings only when
there's something worthy of discussing at a meeting? Are meetings for all employees,
division heads, or certain team members? Do you always meet in conference rooms,
in a specific area of the office, or by conference calls, or does the setting change?
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RESEARCH METHODOLOGY:
For achieving the objectives of study, survey was conducted. For survey,
personal Interviews of the Management & workers were undertaken. Personal
interviews were selected as the mode of survey to make the study more meaningful &
so that Maximum information could be collected. For conducting the personal
interviews of the workers, a questionnaire was made. The questionnaire was
structured with Open ended & close ended questions. The Management was
interviewed on various aspects likely to have impact on the climate and culture & on
the turnover of the employee’s viz. no. facilities provided to the employees, procedure
for the promotions, increments in pay, Bonus schemes incentive sector etc. given to
the employees.
Title of the study: A study on climate and culture with reference to the GENTING
LANCO PVT LTD India.
Sample Design: 95 Respondents

Period of study: The period of study is 45 days.
Objectives: The following are the objectives of this present study:
 To know the opinions of employees regarding climate and culture in
GENTING LANCO PVT LTD.
 To know the effectiveness of climate and culture for the growth of GENTING
LANCO PVT LTD.
 To gain an insight into current working time policies and practices, as well as
climate and culture balance issues in GENTING LANCO PVT LTD.
 To complement existing foundation data and research on working time-largely
based on surveys of individual workers and on literature reviews in GENTING
LANCO PVT LTD.
 To find out the reasons for climate and culture in GENTING LANCO PVT
LTD.
 To find out the effects of climate and culture in GENTING LANCO PVT LTD.
 To find out the way to improve climate and culture life in GENTING LANCO
PVT LTD.
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Primary Data
The primary data is collected through administration of schedule and the items
in this schedule are framed carefully and clearly.
Secondary Data
The secondary data has been collected from records and other sources. Some
information is gathered by personal talks with the concerned officials.
Sampling:
The sampling purpose only 3designations the name of designations are

executives, supervisors, technicians. The total respondents are 95 the sample is drawn
equally from these five departments, through simple random sample techniques.
Analysis of Data:
The data derived from primary and secondary source are used simple random
sample and arithmetic calculations are used. research methodology is a way to
systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. The scope of research methodology is
wider than that of research methods. When we talk of research methodology we not
only talk of research methods but also consider the logic behind the methods we use in
the context of our research study and explain why we are using a particular method or
technique. RESEARCH DESIGN:
“A research design is the arrangement of conditions for collection and analysis

of data in a manner that aims to combine relevance to the research purpose with
economy in procedure”.
Research design is the conceptual structure within which research is conducted;
it constitutes the blueprint for the collection, measurement and analysis of data.
The type of research design used in the project was
Descriptive research, because it helps to describe a particular situation prevailing
within a company. Careful design of the descriptive studies was necessary to ensure
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the complete interpretation of the situation and to ensure minimum bias in the
collection of data.
SAMPLING TECHNIQUE:
Sampling is the selection of some part of an aggregate or totality on the basis of
which a judgment about the aggregate or totality is made. Simple random sampling
method was used in this project. Since population was not of a homogenous group,
Stratified technique was applied so as to obtain a representative sample. The
employees were stratified into a number of subpopulation or strata and sample items
(employees) were selected from each stratum on the basis of simple random sampling.
DATA COLLECTION METHOD:
Both the Primary and Secondary data collection method were used in the
project. First time collected data are referred to as primary data. In this research the
primary data was collected by means of a Structured Questionnaire. The
questionnaire consisted of a number of questions in printed form. It had both open-end
closed end questions in it. Data which has already gone through the process of analysis
or were used by someone else earlier is referred to secondary data. This type of data
was collected from the books, journals, company records etc.
Data Approach:-
There are several Approaches for data collection. The primary sources of data
collection are done through –
 Observation.
 Interviewing.
 Stimulation.
 Mail survey.
 Projective technique
 Questionnaire.
Observation:
Observation is a mode of primary data collection through which we directly get

the data from a universe and based on that data one can carry on the research.
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Interviewing:
Interviewing is another mode of direct data collection, which provides

complete information about the universe.
Stimulation:
Stimulation is a technique of performing experiments on the model of a

particular system. The experiment is done on the model and not on the real system
because the latter will be inconvenience and expansive.
Mail survey:
Through Mail survey, we can get direct data from the universe, the responds
and the feedback based on which the research can be carried out.
Projective techniques:
Projective techniques are based on the theory that the description are the vague
objects and requires interpretation, and this interpretation can be based on the
individual own background, attitudes, and values.
Questionnaire: Questionnaire is the method of data collection, which is very much

popular, particularly in big cities. Different modes of questions are put up on the paper
and the particular
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INDUSTRY PROFILE
An Overview of the Industry:
ELECTRICITY is one of the vital Requirements in the overall development of

the Economy and is therefore, appropriately called the “Wheel of Development “.
Infact, the power Sector has played a dominant role in the Socio-Economic
development of the Country. As a Convenient Versatile and Relatively cheap form
of Energy it plays a Crucial role in Agriculture, Transport, Industry and Domestic
Sector.
Hence, Power has all along remained in the priority list of Indian Planners and
Plan Outlays have reflected this aspect. The Outlays for Power Sector have been
around 19% of the Total outlays for the Public Sector in various Plan Periods.
There has been a Spectacular Increase in the installed Generating Capacity of
Electricity in the Country. Despite Tremendous increases in the availability of power
since independence there is a cute power shortage gap between demand and supply.
The Percapita Consumption of power in the Country is very low as Compared to the
position in the developed countries. Power is a Key input for Economic Growth has
as direct Relationship with the National Productivity a also the overall Economy of
the Country.
There has been Diversification of the sources of Generation in 3 terms. They are:
 Hydel Source
 Thermal Source
 Nuclear Source.
The share of hydel in the total generating capacity had drastically come down
and that of thermal had shown noticeable increase. Another Significant change is the
increasing share of Central sectors in recent years.
The Share of the thermal Element in the installed Generating Capacity, which is also
Predominantly Coal-based, shows a steady increase. Thus, the Relatively Cheaper
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and a more desirable change in terms of a higher share of Hydel source, which is
Renewable, have not Materialized.
POWER SCENARIO:
The Power sector is at Cross roads today. There is a Chronic power Shortage in
the Country mainly Attributable to demand of power continuously outstripping the
Supply.
HYDEL POWER:
In the Present Global Energy context, there are certain aspects, which have
acquired a new significance. The development of hydro power has to be given a
major thrust in the current decade. Our Country has large untapped Hydro Power
Potential, but its development has slowed down due to lack of Financial Resources,
Interstate Rivalry, Inefficiency of certain state electricity boards, Variations in the
Course of the monsoons Etc., a concerted effort is imperative to overcome the
hurdles and enlarge the share of the Hydro Power Generation in the Country.
This will help not only in tapping a Renewable resource of energy, but will
provide essentially needed Peaking support to thermal power generation with the
pattern of demand for electricity. Since, the planners initial enthusiasm about the
large hydel projects has waned somewhat, India will do well to take resource to the
Chinese pattern of micro and mini hydel Projects wherever the terrain is suitable.
The National Hydroelectric power Corporation has been assigned a dominant

role in accelerating the development of the large Hydel Potential in India,
Particularly in the Himalayan region.
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A top level official Committee has recommended a Rs.300 corer renovation
and modernization (R & M) programmed that will seek to cover 93 Hydel Power
Plants in India and result in additional Capacity of 527.81 Mw.
The Growth of the Power Sector was marked by adequate share of Hydro Capacity
up to the end of third Five-Year plan (1961-66). However, there after there has been
a continued decline and the Proportion of hydro power has dropped from 45.86% in
1966 to about 285 by March 1992. Many of the Problems in the Power Tamilnadu
has carried out Feasibility Studies on 72 sites with a total Potential of 150Mw.
THERMAL POWER:
Thermal units have emerged as the largest source of power in India. But
unfortunately, the progress of power generation in this sector has not been marked
by any new break through. At present stress Continuous to be laid on Thermal
Power Station because of shorter Construction time. Using better project
management techniques is shortening the construction period for these plants. It has
been Possible to improve overall efficiency of thermal plant by using gas turbines
in Conjunction with Conventional steam Turbines.
The Union Government has, in order to step up Central Generation in the

Country, Established super Thermal Power Station in different regions. The
National Thermal Power Corporation (NTPC) was established in 1975 with the
object of planning promoting and organizing integrated development of thermal
power in the Country.
HIGHLIGHTS:
 Two Parts system for Thermal Tariffs and Single Tariff for Hydel Projects.
 Exchange Fluctuations to be Compensated.
 Operation and Maintenance Expenses at 2.5 percent respectively for
Thermal and Hydel units in the base year.
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 Optimal Capacity utilization norm for Thermal units, 6000 Kwh/Kw/Year
900% dependable hydrology for stations exceeding 15 HE Capacities. Tariff
to be computed for a period of five years. Rate of return on equity will be
16%.
GEOTHERMAL ENERGY:
Geo Thermal Energy can be explained in simple terms as the Thermal Energy
available at a depth of 5 meters below the ground where the Temperature remains
stable all round the year between 15-18 degrees centigrade i.e., 59-65 degrees
Fahrenheit. This Thermal Energy does not change with respect to the outside
temperature considerably.
The only change visible is very small which also has a time lag with respect to
outside temperature. The temperatures beneath the ground are supply and power
system in the country can be attributed inter alia to the declining hydro share in the
power system and Consequent growth of Thermal development in the Sub-Optimal
manner.
Government of India has recently constituted a group to identify new hydel

projects on which advance action can be taken. In order to give a boost to the
development of Hydro Power more and more Hydro Electric projects are being
planned or being implemented in the Central Sector. In order to achieve this Four
Corporations have already been set up under central or in Joint Sectors.
They are:
 National Hydro Electric Power Corporation (NHEPC)
 North Eastern Electric Power Corporation (NEEPCO)
 Tathpa Jyohri Power Corporation (NJPC)
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MINI HYDEL PLANTS:
There are a number of States in the Country where mini Hydel Projects can be
set up at comparatively lower investments to supplement other sources of Energy.
According to Reliable estimates the total Potential of Mini-Hydel Plants all over the
Country is around 5000 Mw. This includes 2000 Mw in hilly areas at “High heads
and Low Discharge “points and 300 Mw at “Low heads and Low Discharge
“points.
Many of the states have surveyed potential Mini-Hydel schemes and identified
several sites for instance, Punjab has identified 130 falls, with a Combined Capacity
of 100 Mw. Andhra Pradesh has identified Projects that could yield a total of 50Mw
while Karnataka has Estimated that some 175 Mini-Hydro Projects in the state
could yield 200 Mw.
Jammu & Kashmir have identified 54 Mini-Hydel project sites while rather cool
(15 degrees C) when in summer and warm enough ( 18 degrees C ) during winter.
This provides the feed for the Natural Air Conditioning System.
NUCLEAR ENERGY:
The Planners right from the beginning understood the importance of Nuclear
Energy in meeting the Country’s Long-term Energy needs. Recognizing that
Nuclear Technology would be subject to a Progressively Restrictive Technology
Central Regime and also that the Long-term Strategies for Exploitation of the
Country’s vast Thorium Resources are bound to be somewhat different from those
of most other Countries engaged in Nuclear Power Development, Tremendous
Emphasis was placed on achieving self reliance in technology development.
This Policy has yielded rich dividends and today one can proudly use the
realization of indigenous capability in all aspects of the Nuclear fuel Cycle.
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 Tarapur Atomic Power Station (TAPS) : It Provides Elecricity to Maharastra
and Gujarat.
 Rajasthan Atomic Power Station (RATS): It Provides Electricity to
Rajasthan.
 Madras Atomic Power Station (MAPS): It provides Electricity to Madras.
 Narora Atomic Power Station (NAPS): It Provides Electricity to up and
Delhi.
Advantages:
 Nuclear Source is clean, compact and concentrated.

 Nuclear is Economical.
 A unit of Electricity from the Nuclear Power Station at Tarapure and
Kalpakkam cost 40 to 58 paisa per Kwh compared with 60 to 90 paisa per
Kwh from Thermal Station is the respective regions.
 The Greatest advantage of Nuclear Power is that it can be installed in
location even remote from Hydel and Coal Resources.
OCEAN ENERGY:
The long Standing to tap Non-Conventional Source of Ocean Energy for power
generation is expected to get a fill up with a joint team of the Tamilnadu Electricity
Board and the Ocean Energy cell of Indian Institute of Technology, Madras
Commending the offer of the U.S. based firm Sea Solar Power (ssp) to set up 6
ocean thermal energy conversion (OTEC) plants of 100 Mw Capacities each along
the Tamilnadu coast for Serious Consideration and Recommending the setting up of
on plant to begin with at Kulasekarapatnam area.
The Capacity Cost per Kw of Power Production is estimated as US $1000 for

OTEC plant Compared to US $1100 for oil based US $2200 for Coal based, US
$2340 for hydro, and US $2450 for Nuclear Power. The Fuel Cost in the case of
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OTEC is practically nil. Moreover Valuable Bi Products are obtained from OTEC
plants. These include fresh water for Irrigation and Drinking, Hydrogen and
Oxygen which can be used as fertilizing and methanol that can be mixed with
gasoline. If the value of the power and By-products are added together, the annual
income of the typical 100Mw plant can amount to more than US $100 million.
WIND ENERGY:
Wind Energy is fast emerging as the most Cost-Effective source of power as it

combines the abundance of a natural element with modern technology. The
Growing interest in wind power technology can be attributed not only to its cost
effectiveness but also to other attractive features like Modularity, Short project
Gestation and the Non-Polluting nature of the Technology. In India, the Exercise to
hardness Wind Energy includes wind pumps, wind battery charges. Stand alone
wind electric generators and grid connected wind farms. The department of Non-
Conventional Energy Sources (DNES) in association with state agencies has been
responsible for creating and sustaining interest in the field.
SOLAR ENERGY:
Solar Energy is believed that with just 0.1 percent of the 75,000 trillion KHz of
Solar Energy that reaches the earth, Planet’s Energy Requirement can be satisfied
Electricity can be generated with the help of solar energy through the Solar
Thermal Route, as well as directly from Sunlight with the help of Solar Photo
Voltaic (SPV) Technology. SPV systems are being used for Lighting, Water
Pumping, and Telecommunications and also for village size Power plants in rural
areas. SPV systems are being used to Provide Lighting under the National
Immunization Programme, Drinking water and Power for Tele-Communications.
Indian Railways have been using this Technology for Signaling.
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Problems of the Industry:
The Power Sector in India is beset with a number of problems. They Relate to
delays in the Formulating and Implementation of various Projects, Poor Utilization
of capacity, Bottlenecks in the supply of coal to Thermal Station, and its Poor
Quality, faulty distribution and transmission arrangements and bad Planning
leading to an Injudicious hydel Thermal mix. (Ecological Problems are also vexing
this sector.)
Hurdles in Environment Clearances tend to slow down Completion of Power

projects Compensatory a Forestation and land Acquisition has proved to be major
bottlenecks in the clearance of power projects. The main problem faced in the case
of Environmental Clearances is the shortage of land for Compensatory A
forestation.
While Project Authorities are prepared to invest funds in A forestation land, the
state governments are not able to provide the required land. The Government has
proposed to set up a task force to look in to clearances for power projects and speed
up the clearances.
THE STATE ELECTRICITY BOARDS:
The state Electricity boards (SEBs) are autonomous bodies created under the
Electricity (supply) act, 1948 and have the Statutory Responsibility of generating
and supplying power in the most Economical manner to the consumers. The
underlying idea behind the central enactment was to confer autonomy on the SEBs
so as to enable them to function strictly on commercial principals.
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ROLE OF NATIONAL THERMAL POWER CORPORATION (NTPC):
In just 17 years National Thermal Power Corporation (NTPC) has grown to be

the largest producer of electric power in the country, with over 13000 Mw
Commissioned Capacity and approved capacity of 16,835 Mw at an estimate of Rs.
23,218 crore. This installed capacity of the company accounts for about 26% of the
Thermal Capacity and 18% of the total capacity of the country.
The company has also played the lead role in the augmentation of transmission
network by setting up of around 17000 circuit Kilometers of high voltage
transmission networks across the country. These transmission systems now stand
transferred to the newly formed power grid corporation of India. NTPC has been
playing a significant role in meeting the countries power demand.
SHORT AND LONG TERM MEASURES TO COPE WITH THE ENERGY

SHORTAGES:
Short Term Strategy:

 The increased number of short gestation gas based projects to add capacity and
o stabilize power supply.
 permitting the use of gas and oil fuels at selected power plants either to
supplement
o or to substitute coal with view to increase power production.
 Undertaking renovation and modernization programs at the various thermal and
o hydro power plants to improve availability and performance and
minimize power generation. It is hoped that power Finance Corporation
would play a significant role in this regard.
 Improving the quality and ensuring consistency of coal supplies to power
plants.
 Reduction in Transmission & Distribution losses.
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Effective inter connected Operation of power systems in the various regions to
enable transfer of power from surplus to deficit systems and also ensuring delivery
of power from central sector power plants to be beneficiary states.
LONG-TERM STRATEGY:
 Acceleration of Hydro development by focusing on removing the various
inadequacies in Organization. Management funding etc, it would be
desirable and necessary to make provision of adequate funds especially
earmarks for Hydro Development.
 Training & Development programmed to remove the present inadequacies,
strengthening of the regional grids and bringing about a overall
improvement in the T & D losses.
 Coal Benefaction by adopting more Sophisticated Techniques to ensure
better and Consistent quality of Coal to the Power plants.
 Diversification of fuels and modes of Transpiration of coal to Thermal
Power Plants to ensure adequate supply of fuel of appropriate quality.
 Strengthening the Organization responsible for erection and
commissioning of power plants.
PRIVATE SECTOR PARTICIPATION IN POWER GENERATION:
The Central Government has formulated a scheme to encourage greater

Participation Private Enterprises in electricity Generation, Supply and Distribution.
Private Enterprises can set up units either as Licenses area from own Generation or
Purchased Power or as Generating Companies, Generating power for Supply to the
Grid.
The Breakup of the Capital investment is:
 20% Equity out of which at least 11% to be raised as

promoter’s Contribution.
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 80% of the Capital Investment to be raised through loans and only 50% of this
amount could be raised from Public F1s.
 Debt Equity Ratio has been raised up to 4:1.
 Increase in the Prescribed rate of return for the license has been approved from
the existing 12% to 15%.Capitalization of interest during Construction has
been permitted at the actual cost (instead of the present 1% above the Reserve
Bank Rate) for the initial project as well as for the subsequent expansions.
 Period of initial validity of the license has been increased to 30years from the
existing 20years and subsequent extension for 20 years on each Occasion.
 Private Licenses have been exempted from the Obtaining Clearance under the
MRPT act.
 To Ensure Additional Resources Mobilization it has been proposed that at least
60% of the outlays come from Sources other than Public Financial Institutions
and at least 11% through Promoter’s Contribution.
 A Special Cell to be created in department of power to deal with proposals
expeditiously for private sector Participation.
THE FUTURE:
Government’s Decision to invite the Private Sector to participate in the Power
Generation Sector is most Opportune and Constructive Approach par Excellence.
The Positive and Encouraging initiatives from the Government are bound to find
Favourable Responses from the Private Sector. The Solution to our Perennial Power
Crunch Seems to Lie in Private Participation
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COMPANY PROFILE
(The Lanco group of Companies was Established Nurtured and Developed by a

team of dedicated young Technocrats.) The burning desire to achieve Versatility in
Engineering Spawned the Magnificent decade-old growth of the present day
multifaceted Conglomerate that touches the nerve Centre of the Country.
L.Rajagopal Member of Parliament Founder Chairman – LANCO Group of

Companies
email:rajagopal@lancogroup.com
www.rajagopal.in
(L Rajagopal, a technocrat-turned industrialist, is the Founder Chairman of

LANCO Group. In addition to his entrepreneurial spirit, Rajagopal has a strong
sense of social responsibility.) He established LANCO Foundation (formerly
LIGHT), a Charitable Trust, in the year 2000 to reach out to the needy and has been
involved in various philanthropic activities. After one-and-a-half decades of
outstanding contribution to the industry, Rajagopal chose to enter public life in
2003. He is a Member of Parliament, India. His avowed mission is to make a
difference in the life of the common man.
Introduction to Genting Lanco Power (India) Private Limited
Genting Lanco Power Private (India) Private Limited is a Subsidiary of

Genting Group of Companies based at KUALA Lumpur, MALAYSIA. Genting
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group has its presence in diversified fields like Power, Plantations, Paper &
Packaging, Entertainment, Resorts & Hotels, Property development, Cruise liners,
E-Commerce, Oil and Gas.
Genting Group is Malaysia’s Leading Multi-National Corporation and one

of Asia’s best-managed Companies with over 36,000 Employees Globally. The group
is Renowned for its strong management leadership, Financial Prudence and Sound
Investment discipline.
 The Combined market Capitalization of the group is about US $ 9

billion.
 The Operation revenue for the group of Year 2004 is US $ 1.25 billion.
Genting Lanco Power (India) private Limited has entered in to a 15 years
Operations and Maintenance Agreement with Lanco Kondapalli Power Private
Limited, who is the Owners of the 368 Mw gas fired combined cycle power plant at
Kondapalli.
Genting Lanco Power (India) Private Limited has its Registered office at Lanco
Kondapalli Power Plant, Kondapalli IDA, and Krishna District.
Lanco group of companies (under power)
LANCO has proven expertise in power generation from conventional and non-
conventional sources of energy including gas, coal, biomass, hydro and wind.
Lanco has operational and under execution projects amounting to over 8000MW.
25
Operational Projects
Capacity
Plants Fuel Location
(MW)
Lanco
Kondapalli 601 Gas Andhra Pradesh
(Stage I&II)
ABAN Power 120 Gas Tamil Nadu
Lanco
Amarkantak 300 Coal Chhattisgarh
(Stage I)
Lanco,
3 Wind Energy Karnataka
Chitradurga
Lanco,
10 Wind Energy Tamil Nadu
Tirunelveli
Vamshi Hydro Himachal

10 Hydro
Energies Pradesh
Total 1044
26
Projects under Construction
Projects Capacity (MW) Fuel
Lanco Kondapalli (Stage II) 133 Gas
Lanco Amarkantak II 300 Coal
Lanco Anpara 1,200 Coal
Udupi Power I&II 1,200 Imported Coal
LANCO Green Power 70 Hydro
Vamshi Industrial Power 10 Hydro
LANCO Energy 500 Hydro
LANCO Hydro Energies 76 Hydro
Total 3489
27
Projects Under Development
Projects Capacity (MW) Fuel
Lanco Kondapalli (Stage III) 770 Gas
Lanco Amarkantak III & IV 1320 Coal
Lanco Anpara 660 Coal
Lanco, Babandh I 1320 Coal
Lanco Vidarbha Thermal 1320 Coal
Fatehpur 1320 Coal
LANCO Hydro Energies 76 Hydro
Total 6786
Company Overview
Genting Lanco Power (India) Private Limited provides power generation,

engineering, and construction and manufacturing services. It is a 355 MW (ISO)
liquid fuel-based combined cycle power plant. The company is headquartered in
Hyderabad, India. Lanco Kondapalli Power Ltd. operates as a subsidiary of Lanco
Infratech Limited.
Genting Lanco Power (India) Private Limited is an Independent Power Project

(IPP) located at Kondapalli Industrial Development Area near Vijayawada in India.
Set up at a cost of around Rs 12,400 million (US$ 275 million), this Combined
Cycle Power Project operating on Natural Gas as primary fuel is being developed in
various phases. Phase I of 368.144 MW is operational since October 2000. The
project has two Gas Turbines of GE Frame 9E, two Heat Recovery Steam
28
Generators and one Steam Turbine. Based on a Power Purchase Agreement (PPA)
for a period of 15 years, the plant supplies power to the Transmission Corporation
of Andhra Pradesh Limited (AP TRANSCO). Out of the second phase of 366 MW,
233 MW is already operational and the power has sold on merchant basis.
Genting Lanco Power (India) Private Limited is an Independent Power

Project (IPP) located at Kondapalli Industrial Development Area near Vijayawada
in India. The Plant is a 368.144 MW Combined Cycle Power Project operating on
Natural Gas as primary fuel.
The plant has two Gas Turbines of GE Frame 9E, two Heat Recovery Steam
Generators and one Steam Turbine. Based on a Power Purchase Agreement (PPA)
for a period of 15 years, the plant supplies power to APSDCL (Andhra Pradesh
Southern
Distribution Company Limited- erstwhile Transmission Corporation of Andhra

Pradesh Limited (AP TRANSCO)).
Background
The plant was set up as a short gestation power projects in the private sector on
the basis of "Tariff-Based International Competitive Bidding" as per the
Government of India's guidelines dated 18 January 1995.
Based on Andhra Pradesh State Electricity Board‘s (now the Transmission

Corporation of Andhra Pradesh Limited (AP TRANSCO) tender, Lanco Kondapalli
Power Private Limited was awarded the project on Build, Own and Operate (BOO)
basis. LPTL is the largest private sector player in the power trading market, trading
2600 Million Units (MU) in the Financial Year 2007-08. LPTL had more than 60
per cent of its volume of banking power arrangement with various utilities,
amounting to 12 per cent of the market share. LPTL traded from all the five regions
of India by covering 32 utilities from 19 States. LANCO Power Trading Ltd
(LPTL) has been awarded F Category National Power Trading Licence of CERC
(Central Electricity Regulatory Commission) under the Electricity Act 2003.
29
LANCO Kondapalli Power Pvt Ltd (LKPPL) has obtained Environmental
Clearance from the Ministry of Environment and Forests for upgrading its capacity
by another 1155 MW. This expansion project will be executed in three phases.
Operation & Maintenance
The Operations and Maintenance of the power plant is done by Genting

LANCO Power ( India) Pvt Ltd, which is jointly owned by LANCO Infratech,
India and Genting Group, Malaysia.
The Mission of company:
 Development of Society through Entrepreneurship.
 To be a leader in all areas key to development of a nation and progress of the

world.
 To be a leader in the field of Infrastructure, Manufacturing and Information

technology, private power generation.
The Vision of company:
 Most Admired Integrated Infrastructure Enterprise.
 To empower, enable and enrich partners, business and associates.
 To be the chosen vehicle of growth for the stake holders and a source of
inspiration for the society.
The Philosophy of company:
 Assemble best people, delegate authority and don’t interfere “People make the
difference”.
 Business heads are Entrepreneurs.
 Mistakes are foots of life. It’s is response to the error that counts.
30
Success…
 Create your luck by hard work.
 Trust +delegation= Growth.
Environment Policy…
We are committed to achieve Satisfaction of Interested Parties and Protect

Environment by:
 Generation of Power by Implementation of Prudent ECO friendly methods.

 Conversation of Natural Resources like Natural gas and Water.
 Complying all the relevant statutory and regulatory requirements.
 Continual Improvement in the Environmental Performance of minimizing
the Mission and Discharges.
 Enhancing Environmental awareness among Employee’s Contractor’s and
Surrounding Society.
Quality Policy…
We are committed to continually improve the Quality of our Performance

through the application of our quality policy.
 We provide a safe work place for the direct and indirect employees through
minimizing OHS risk.
 All aspects of Operations and maintenance of the Power Plant Comply with
all Environmental Requirements, National, State local Loss and Directives.
 The Operation and Maintenance activities will provide the best.
 Possible level of Commercial Performance for the benefit of all stake
holders.
 We will treat all safe and families fairly and with respect while Encouraging
Personal growth.
31
LKPPL’S Commitment to Clean and Safe Environment:
(Green Belt Management)
LANCO Commitment to Re-vegetation is
 Encourage Native Fauna to Develop.

 Contribute to a Reduction in Green House Gases.
 Reduce Noise Levels.
 Minimize the Effect of soil-Erosion.
 Help to restore the site to Sustainable System.
 Improve as the aspects of the Power Plant.
Ongoing trees Planting and maintaining theme are he important aspects of
Environmental Management Program at LANCO.
NOISE MANAGEMENT:
Efforts to minimize Noise mission from Equipment and activities.
 Acoustic linings around gas and steam turbines and boilers.

 Silencers have been provided.
 Noise Minimization Policy for Equipment.
EFFLUENT DISCHARGED FROM POWER PLANT:
Well-Developed Chemical Laboratory to cater the need for monitoring

effluent quality as per APPCD Norms.
 Gaseous Emission Management – as issues of green has become Prominent

in the Public.
 Water Management – Acknowledges importance of maintaining water
Quality.
 Community Participation.
 Environmental Awareness.
32
Promoters and Equity partners….
 Geneting group of Malaysia.
 Common wealth development corporation UK.
 Doosan heavy industries & constructions cooperative ltd in Korea.
Our Values….
Integrity: We choose to be honest in all our Business Interactions and

Transactions and remain steadfast even when challenged. We strive for consistency
between – what we Think, what we Say and what we Do
Humility & Respect : We are consistently humble in our approach to and

interactions with people. We treat every person with respect at all times,
unconditionally.
Organization Before Self : We recognize that organization interest is

supreme, above individual preferences and goals. In all our decisions, actions and
dealings we put the Organization before self.
Achievement Drive; We have an urge that drives us to intensely focus on

performance and act decisively with high energy to achieve the desired results. We
strive to continuously learn and consistently set higher Standards of Excellence.
Positive Attitude: We always demonstrate a ‘can-do’ mind-set and engage to

deliver organizational goals. We look upon challenging circumstances as
opportunities to enhance our capabilities and find ways of achieving.
33
Accountability: We own up to our words, actions and outcome. When we
commit to do something, we own it and we do it – decisively and responsibly.
Innovation: We work harmoniously with a shared vision, energized by our

collective talent. We Trust, Listen to, Share with and Empower team members and
take collective responsibility for the results.
Teamwork: We value and encourage application of creative ideas that

enhance the effectiveness of our business. We freely express ideas and take actions
to generate successful Solutions.
CORPORATE VALUES
F - First Priority is Customer
I - Integrity and Honesty
R - Respect for the Individual
S - Strive for Excellence
T - Teamwork and Commitment
34
Key Milestones
31 March 1997 Power Purchase Agreement
09 December 1998 Financial Closure
25 October 2000 COD of Combined Cycle Conversion to run on
01 September 2001 Natural Gas as Fuel
Location Advantages
 Proximity to National & state highway.

 Just 1.5 km form fuel storage facility of HP corporation ltd.
 Adjacent to 220kwh substation of APTRANSCO.
 Close to the river Krishna and up stream of the Prakasam Barrage ensuring
perennial water supply.
Other Advantages
Nearest Railway Station - Kondapalli Railway Station
Nearest Airport - Gannavaram
Access Road - National Highway No.9
Source of Water - Krishna River 9Km from the Site
Climatic Condition - Tropical Hot, Humid.
35
Plant Highlights
 First Project cleared by Central Electricity Authority (CEA) under the

International Competitive Bidding (ICB) route for Power Projects in India.
 First ICB Power Projects in India to achieve Financial Closure.
 One of the lowest in terms of evacuation cost to AP TRANSCO.
 First private sector Power Project to receive disbursement of finance from the
Power Finance Corporation Limited, India.
 Largest Independent Power Project (IPP) in South India and one of the largest
IPPs in India.
 Power purchase agreement firmed with APTRANSCO for 15 years.
 Eco-friendly, adhering to highest standards of safety & conversion of nature
resources.
 368.144 MW combined cycle power plant under build-operated-own
arrangement with the state government.
 Single largest investment in A.P, by an Andhra Pradesh based group.
Resources
Uninterrupted supply of water is met from the upstream of the Prakasam

Barrage on the River Krishna. The company gets natural gas, the primary fuel, from
GAIL ( India) Ltd based on a long term contract.
Water Supply
Water required for the plant is drawn from River Krishna by a 9 km pipe line
upstream of Prakasam Barrage.
36
Fuel Supply
Natural gas supply for the plant is based on a long-term Fuel supply Agreement
with Gas Authority of India Limited (GAIL).
Certification and Awards
 Leadership & Excellence Award in Safety, Health & Environment - 2002-

By Confederation of Indian Industries
 Certification of Environmental Management System with ISO 14001 (1996)
-LRQA, April-2003
 Environmental Excellence Award -2004 by Greentech Foundation, New
Delhi
 Certification of Quality Management System with ISO 9001 (2000) -LRQA,
April-2004
 25% Cess Rebate on water uses by APPCB
 OHSAS 18001: 1999 Certification in respect of Environmental Management
System by Lloyd's Register Quality Assurance Ltd in 2005.
 National Award for Excellence in Water Management 2005 by Cll - GBC
Green Business Centre.
 Silver Award in Gas Power Sector for Outstanding Achievement in
Environment Management for 2003-04 from Greentech Foundation.
 Leadership Efforts towards Environmental Management and Sustainable
Initiative among Corporates for 2002-03 by TERI.
 Best Environment Improvement Activity Award 2002 - 03 from FAPCCI.
 CM Leadership and Excellence Award in Safety, Health and Environment

2002.
37
Contact
CORPORATE OFFICE
LANCO Kondapalli Power Pvt Ltd

Plot No.4, Software Units Layout HITEC City,
Madhapur , Hyderabad - 500 081
Andhra Pradesh, India
Tel : +91-40-4009 0400
Fax: +91-40-2311 612
email: lkpl@lancogroup.com
PLANT OFFICE
IDA, Kondapalli
Ibrahimpatnam Mandal
Krishna District, Pin- 521 228
Andhra Pradesh, India.
Tel : +91-866-2872-804
Fax : +91-866-2872-801
email : lkpl@lancogroup.com
Other Information
ABOUT LANCO KONDAPALLI POWER PLANT
StageII
The second module of 366 MW combined cycle power plant is being executed
under stage II expansion. LKPPL has awarded EPC contract through ICB route and
issued Notice to Proceed to EPC Contractor in February 2008. Entire power
generated from stage II expansion plant shall be evacuated through a dedicated 400
kV D/C transmission line connecting plant with PGCIL - Nunna substation which is
located 20 KM from plant. A dedicated gas pipe line connecting EWPL trunk line
38
and plant is already completed and RGTIL is ready to supply gas as and when the
plant is ready.
Stage III
LKPPL has also taken up the implementation of another 2 x 385 MW

combined cycle power plant under stage III expansion project. The statutory
clearances from environment, consent for establishment and aviation are already
obtained. LKPPL has called for bids to award EPC contract through ICB route. The
EPC contract is signed and Notice to proceed issued. With the infrastructure
already available at site and the track record the company has, LKPPL is confident
to commission the power plant in open cycle and combined cycle by 21 and 26
months respectively.
The ultimate capacity of the LANCO Kondapalli Power Plant after completion
of Phase III would be around 1500 MW.
Lanco Kondapalli to go on stream shortly
The expansion of the 366-mw Lanco Kondapalli gas-based combined cycle

power project in Andhra Pradesh is likely to be commissioned in "open cycle
mode" by July 31. Lanco Kondapalli Power Pvt. Ltd plans to start commercial
operations by the second week of August 2009. To facilitate the commissioning of
the power project, the company has asked the ministry of petroleum and natural gas
for to expedite the supply of gas from the KG basin to the power project.This
project, located at Kondapalli Industrial Development Area near Vijayawada,
represents stage-II of Lanco's ultimate plan envisaging a total capacity of 1,155 mw
at the Kondapalli power station. Stage-I of 368 mw is already operational.
The company informed the petroleum ministry that, for commissioning

the power plant, gas to the tune of 0.5-1 mms cmd would be required between July
15-31, and 1.75 mms cmd from August 1, 2009, onwards. The project is located in
close proximity to Reliance Industries' 9-km east-west gas spur pipeline currently
under construction.
39
The EPC contract for the project was awarded in November 2007 and the
notice to proceed (NTP) was issued in February 2008 with a schedule of 16 months
for open cycle and 22 months for combined cycle. All equipment required for open
cycle operation has been received at site. The gas turbine and generator and its
control unit are in an advanced stage of erection. The steam turbine of 133 mw will
be commissioned in January 2010, and the 366-mw expansion project itself will be
fully commissioned in "close cycle mode" by end of January next year. A total
capacity of 233 mw will be added to the national grid after commercial operation in
open cycle begins in August. The project achieved financial closure in November
last year.
40
CONCEPTUAL FRAME WORK
Organizational Climate & culture:
Organizational climate, is often defined as the recurring patterns of behavior,

attitudes and feelings that characterize life in the organization, while an organization
culture tends to be deep and stable. Although culture and climate are related, climate
often proves easier to assess and change. At an individual level of analysis the concept
is called individual psychological climate. These individual perceptions are often
aggregated or collected for analysis and understanding at the team or group level, or
the divisional, functional, or overall organizational level.

Climate of an organization is somewhat like the personality of a person. Just as

every individual has a personality that makes him unique and different from other
persons. Each organization has an organizational climate that clearly distinguishes it
from other organizations
Characteristics of Organizational Climate:
The nature of organizational climate will be clear from the following

characteristics:
1. General Perception:
Organizational climate is a general expression of what the organization is. It is the
summary perception which people have about the organization. It conveys the
impressions people have of the organizational internal environment within which they
work.
41
2. Abstract and Intangible Concept:
Organizational climate is a qualitative concept. It is very difficult to explain the
components of organizational climate in quantitative or measurable units.
3. Unique and District Identity:

Organizational climate gives a distinct identity to the organization. It explains how
one organization is different from other organizations.
4. Enduring Quality:
Organizational climate built up over a period of time. It represents a relatively
enduring quality of the internal environment that is experienced by the organizational
members.
5. Multi-Dimensional Concept:
Organizational climate is a multi- dimensional concept. The various dimensions of the
organizational climate are individual autonomy, authority structure, leadership style,
pattern of communication, degree of conflicts and cooperation etc.
Factors Influencing Organizational Climate:
Organizational climate is a manifestation of the attitudes of organizational members

towards the organization. Researchers have used the data relating to individual
perception of organizational properties in identifying organizational climate. Even in
this context, there is a great amount of diversity.
42
Litwin and Stringer have included six factors which affect organizational
climate. These factors are:
I. Organizational Structure: Perceptions of the extent of organizational

constraints, rules, regulations, red tape,
II. Individual Responsibility: Feeling of autonomy of being one’s own boss,
III. Rewards: Feelings related to being confident of adequate and appropriate
rewards,
IV. Risk and Risk Taking: Perceptions of the degree of challenge and risk in the
work situation,
V. Warmth and Support: Feeling of general good fellowship and helpfulness
prevailing in the work setting.
VI. Tolerance and Conflict: Degree of confidence that the climate can tolerate,
differing opinions.
Schneider AND Barlett give a broader and systematic study of climate dimensions.
They include the following factors:

I. Management Support,
II. Management Structure.
III. Concern for new employees
IV. Inter-agency conflict.
V. Agent dependence and
VI. General Satisfaction
Taguiri has identified five factors influencing the organizational climate on the
basis of information provided by managers.
43
These are:
I. Practices relating to providing a sense of direction or purpose to their jobs-
setting of objectives, planning and feedback,
II. Opportunities for exercising individual initiative,
III. Working with a superior who is highly competitive and competent.
IV. Working with cooperative and pleasant people,
V. Being with a profit oriented and sales oriented company. KATZ et. al. have
identified five factors which affect individual performance in organization;
VI. Rules orientation,
VII. The nurturance of subordinates,
VIII. Closeness of Supervision,
IX. Universalism,
X. Promotion-achievement orientation.
Lawrence James and Allan Jones have classified the following factors that
influence organizational climate:
I. Organizational Context: Mission, goals and objectives, function etc.
II. Organizational Structure: Size, degree of centralization and operating
procedures.
III. Leadership Process: Leadership styles, communication, decision making
and related processes.
IV. Physical Environment: Employee safety, environmental stresses and
physical space characteristics.
V. Organizational Values and Norms: Conformity, loyalty, impersonality
and reciprocity.
Richard M. Hodgetts has classified organizational climate into two major

categories. He has given an analogy with an iceberg where there is a part of the
iceberg that can be seen from the surface and another part that is under the water and
cannot be seen. The factors in the visible part that can be observed and measured are
called OVERT factors and the factors that are not visible and quantifiable are called
covert factors.
44
Both these factors are shown in the following figure in the form of an iceberg:
The results of the above studies show that it is very difficult to generalize the
basic contents of organizational climate, based on these studies. However, some broad
generalizations can be drawn and it can be concluded that four basic factors are
somewhat common to the findings of most studies.
These factors are:

a. Individual autonomy.
b. The degree of structure imposed upon the position.
c. Reward Orientation.
d. Consideration, warmth and support.
Another common factor can be in respect of conflict and cooperation. But this
factor is used in different perspectives by different people.
Impact of Organizational Climate:

Organizational climate influences to a great extent the performance of the
employees because it has a major impact on motivation and job satisfaction of
individual employees. Organizational climate determines the work environment in
which the employee feels satisfied or dissatisfied. Since satisfaction determines or
influences the efficiency of the employees, we can say that organizational climate is
directly related to the efficiency and performance of the employees.
45
The organizational climate can affect the human behaviour in the organization
through an impact on their performance, satisfaction and attitudes. There are four
mechanisms by which climate affect the behaviour of the employees.
1. Constraint System:
Organizational climate can operate as a constraint system in both the positive
and negative sense. This can be done by providing information to the employees about
what kind of behaviour will be rewarded, punished or ignored. Thus, behaviour can be
influenced by varying degrees of rewards and punishments. Such a constraint system
would influence the behaviour of those people who are most interested in those
specific values which are assigned to different behavioural outcomes.
2. Evaluation of Self and Others:

Organizational variables may affect behaviour through evaluation of self and
others. In this evaluation process both the physiological and psychological variables
will be associated. Such evaluation will affect the human behaviour.
3. By Acting as Stimuli:
Organizational factors can influence human behaviour by acting as stimuli. As
stimuli they influence individual’s arousal level, which is a motivational variable
directing human behaviour. The level of arousal will directly affect the level of
activation and hence performance.
4. By Helping the Individual to Form a Perception:

Organizational factors influence the behaviour by helping the individual in
forming a perception of the organization. The perception then influences behaviour.
Thus, good organizational climate is instrumental to higher employee satisfaction,
better human relations and higher productivity, the role of climate can be explained
with the help of the following figure.
46
The factors indicated in the figure represent major determinants of climate in
an organization and as such represent important areas of management concern. If
employees satisfaction and job performance are to be improved, the management must
modify these factors so that the employees view climate as favourable to them.
Various research studies also confirm the positive relationship between organizational
climate and employee performance.
Frederickson on the basis of laboratory studies involving 260 middle level

managers concludes that different organizational climate has different impact on
human performance. He summarizes his findings in the following statement.
“It appears that the amount of administrative work in the stimulated job is more
predictable in a climate that encourages innovation .than in one that encourages
standard procedures and that in an innovative climate, greater productivity can be
expected of people with skills and attitudes that are associated with independence of
thought and action and the ability to be productive in free unstructured situations.”
This study suggests that the performance was more predictable for subjects
who worked in a consistent climate than those who had to work in an inconsistent
environmental climate. Inconsistent climate was having indirect impact on
productivity. Another laboratory study shows that significant differences were found
in performance and satisfaction of people in varying organizational climates.
For example, in this study, three types of organizational climates were created:
a. Authoritarian structured.
47
b. Democratic friendly and
c. Achieving business.
It was found that the achieving organization produced the most in terms of
money volumes, numbers of new products and cost saving innovations. People in
democratic friendly environment expressed maximum satisfaction with their jobs.
However, people in the authoritarian structured organization produced goods of
highest quality because of right specifications put by government orders. Other studies
have shown the similar results.
48
Dimensions of Organizational Climate:
The important dimensions or components which collectively represent the

climate of an organization are as discussed below:
1. Dominant Orientation:
Dominant orientation of the organization is an important determinant of climate and it
is the major concern of its members. If the dominant orientation is to adhere to
established rules and regulations, the climate is characterized by control. If the
orientation is to produce excellence the climate will be characterised by achievement.
2. Inter-Personal Relationships:
The interpersonal relationships in the organizations are reflected in the way informal
groups are formed and operated. The informal groups may benefit the organization
also, but in some cases it may displace the goals of the organization.
3. Conflict Management:
In the organization, there can always be inter-group as well as intra group conflicts.
The organizational climate will depend upon how effectively these conflicts are
managed. If they are managed effectively, there will be an atmosphere of cooperation
in the organization. If they are not managed properly there will be an atmosphere of
distrust and non-cooperation.
4. Individual Autonomy:
If the individual employees are given sufficient freedom to work and exercises
authority, it will result in efficiency in operations. The autonomy will lighten the
burden of higher level executives.
49
5. Organizational Control System:
The control system of the organization can be either rigid or flexible. Rigid control
will lead to impersonal or bureaucratic atmosphere in the organization. There will be
minimum scope for self regulation.
6. Organizational Structure:
The organizational structure serves the basis of inter personal relations between
superiors and subordinates. It clarifies as to who is responsible to whom and who is to
direct whom. If there is centralization of authority, the participation in decision
making by the subordinates will be very less. On the other hand, if there is
decentralization of authority, there will be an atmosphere of participative decision
making.
7. Task Oriented or Relations Oriented Management:

The dominant style of managers will also affect the organizational climate. Task
oriented approach means that the leadership style will be autocratic. The employees
will have to show results or face the punishment. The employee morale will be low in
the long run.
If the managers are relations oriented, the climate will be considerate and supportive.
There will be team spirit in the organization because the needs and aspirations of the
workers will be given due importance.
8. Rewards and Punishments:

The system of rewards and punishments is also an important component of
organizational climate if the reward system is directly related to performance and
productivity, there will be an atmosphere of competition among the employees.
Everybody will like to work hard and earn more reward in the form of promotions and
pay rise. If there is biasedness in the distribution of rewards, the meritorious
employees will be discouraged.
50
9. Communication:
The communication system of the organization will also affect the organizational
climate. The flow of information, its direction, its dispersement and its type are all
important determinants. Proper communication system means that the subordinates
are in a position to express their ideas, suggestions and reactions, otherwise they will
feel frustrated.
10. Risk Taking:

How members respond to risks and whose help is sought in situations involving risks
are important in any organization. If individuals feel free to try out new ideas without
any fear they will not hesitate in taking risks. Such an atmosphere will be conducive to
innovative ideas.
The above dimensions or components are not mutually exclusive, they often overlap
each other. The way in which these different dimensions operate an organization
indicates the underlying philosophy of the management.
Developing a Sound Organizational Climate:
To develop a sound organizational climate is a long term proposition. Organizational

climate depends upon the organizational behaviour system. The organizational climate
should represent the goals and philosophies of those who join together to create the
organization. The type of climate that an organization seeks is contingent upon the
type of people it has, the type of technology, level of education and expect actions of
people in it.
51
The following techniques are generally helpful in improving the climate of the
organization:
1. Effective Communication System:

There should be a two way communication in the organization so that the employees
know what is going on and react to it. The manager can modify his decision on the
basis of feedback received.
2. Concern for People:

The management should be interested in the human resource development. It should
work for the welfare of employees and an improvement in their working conditions.
For developing a sound organizational climate, the management should have show
concern for the people.
3. Participative Decision Making:

The management should involve the employees in decision making process,
particularly those decisions which are related to goal setting and affect them.
Participative decision making will make the employees committed to the organization
and more cooperative also.
4. Change in Policies, Procedures and Rules:

The organizational climate can also be changed by making changes in the policies,
procedures and rules. It is a time consuming process but the changes will also be long
lasting if the workers see the changes in policies, procedures and rules as favourable
to them.
5. Technological Changes:
Generally, the workers and employees resist any innovative changes. But where
technological changes improve the working conditions of the employees, the change
will be easily accepted. Better climate will be there if the management adopts
innovative changes in consultation with the employees.
52
But all the above factors are contingent upon the assumptions of the nature of
people in general. For example, the ECONOMIC MAN is basically motivated by
money and economic security and hence, economic factors may be used to attract and
motivate him. For a SOCIAL MAN positive social relations and interactions are a
must. Thus, the creation of a climate where happy family atmosphere prevails is
appropriate for him. The self actuating man seeks achievement, accomplishment and
meaning in what he does. The organizational climate with a certain degree of freedom
is appropriate for him.
Thus, in order to build up a sound organizational climate, management must

understand the people in the organization. The importance must be given to what
motivates people’s performance in general and building an overall climate conducive
to motivation, a keen insight into the individual in particular and tailoring a personal
approach to leadership and job design to which the man will respond with
commitment. The different types of people suggest that there cannot be any all
purpose organizational climate.
Participation and Organizational Climate:
As we have emphasized earlier also, participation is a very effective tool to

develop sound organizational climate. Thus, every organization can make an attempt
to develop organizational climate based on participation. Participation is based on
democratic value of organizational life.
Bennis has given some basic features of democracy as applied to organizational

life. According to him, democracy is basically a system of values.
These values include:
(i) Full and free communication regardless of rank and power.

(ii) Reliance on consensus rather than on the more customary forms of
coercion or compromise to manage conflict.
53
(iii) The idea that influence is based on technical competence and knowledge
than on the vagaries of personal whims or prerogative of power.
(iv) An atmosphere that permits and even encourages emotional expression
as well as task oriented acts.
(v) A basically human bias, one which accepts the inevitability of conflict
between the organization and the individual but which is willing to cope
with and mediate in this conflict on rational grounds.
To summarize, we can say that there are three important ideas in this concept of
participation:
1. Mental and Emotional Involvement:

The basic feature of participative system is that there should be mental and
emotional involvement of the employees in the administration of the organization.
This involvement is psychological rather than physical. A person who participates is
ego involved rather than merely task involved. If there is no psychological
involvement of the employees, the participation is no participation but just a
manipulation. In such a situation, the manager tries to make people think that they are
participating and having an influence, while in reality they are not.
2. Acceptance of Responsibility:
A second important characteristic of participation is that people are encouraged
to accept responsibility. Since people are mentally and emotionally involved in
decision making, they have to undertake responsibilities also. Thus, they become both
decision makers and executors.
This is a social process by which people become involved in an organization

and want it to work successfully. When people want to do something, they will find a
way. Under participative conditions people perceive managers as supportive
contributors to the team. Employees are ready to work actively with managers, rather
reactively against them.
54
3. Motivation to Contribute:
Participation motivates people to contribute to the situation. They are given
opportunities to use their initiative and creativity towards the objectives of the
organization. Participation uses the creativity of all persons, thereby all of them
contribute something in decision making. Contribution is different from consent
because in consent the person only confirms what has already been decided. A consent
or does not contribute to decision making rather he merely approves what has been
decided by others.
Some Types of Culture
There are different types of culture just like there are different types of personality.
Authoritarian Culture
There is centralization of power with the leader and obedience to orders and
discipline are stressed. Any disobedience is punished severely to set an example to
others. The basic assumption is that the leader always acts in the interests of the
organization.
Participative Culture
Participative culture tends to emerge where most organizational members see
themselves as equals and take part in decision-making.
Mechanistic Culture
The mechanistic culture exhibits the values of bureaucracy. Organizational jobs
are created around narrow specializations and people think of their careers mainly
within these specializations. There is a great deal of departmental loyalty and inter-
departmental animosity. This sort of culture resists change and innovation.
Organic Culture
In this case, authority hierarchy, departmental boundaries, rules and
regulations, etc. are all frowned up. The main emphasis is on task accomplishment,
team work and free flow of communication. The culture stresses flexibility,
consultation, change and innovation.
55
Sub-cultures and Dominant culture
Each department of an organization may have its own culture representing a
sub-culture of the system. An organizational culture emerges when there is integration
of all the departments into a unified whole.
Researcher Jeffrey Sonnenfeld identified the following four types of cultures.
Academy Culture
Employees are highly skilled and tend to stay in the organization, while
working their way up the ranks. The organization provides a stable environment in
which employees can develop and exercise their skills. Examples are universities,
hospitals, large corporations, etc.
Baseball Team Culture

Employees are "free agents" who have highly prized skills. They are in high
demand and can rather easily get jobs elsewhere. This type of culture exists in fast-
paced, high-risk organizations, such as investment banking, advertising, etc.
Club Culture
The most important requirement for employees in this culture is to fit into the
group. Usually employees start at the bottom and stay with the organization. The
organization promotes from within and highly values seniority. Examples are the
military, some law firms, etc.
Fortress Culture
Employees don't know if they'll be laid off or not. These organizations often
undergo massive reorganization. There are many opportunities for those with timely,
specialized skills. Examples are savings and loans, large car companies, etc.
Importance of Organizational Culture
Employees should to be engaged in their work. They yearn for work that is
enjoyable, meaningful and engaging. When they are engaged they are safer on the job,
more productive and more willing and able to delight customers. It is for these basic
56
reasons that organizational culture matters. It is the right thing for an organization to
do - to think about the work environment, working relationships and “how employees
do things here.”
Focusing on building and sustaining an organizational culture is one way of

showing that people are the organization’s most valuable asset.
A strong culture is a talent-attractor - The organizational culture is part of the

package that prospective employees look at when assessing the 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? The organizational culture is a key component
of a person’s desire to stay.
A strong culture engages people - People want to be engaged in their work. The
culture can engage people. Engagement creates greater productivity, which can impact
profitability.
A strong culture creates energy and momentum - Build a culture that is vibrant and
allows people to be valued and express themselves and it 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 changes the view of “work” - Most people have a negative
connotation of the word ‘work’. When the organization creates a culture that is
attractive, people’s view of “going to work” will change.
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
57
know each other better, they will find new connections. These connections will lead to
new ideas and greater productivity - in other words, it will be creating synergy.
Literally, 1 + 1 + right culture = more than 10.
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
all of the 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.
Culture – Input and Output
Culture is learned. It is both a product of action and a conditioning element of

future action, an input and an output. The internal environment consists of the social
and technical systems of the organization. Thus, in part, culture is the product of these
socio-technical systems. They consist of the decision-making, planning and control
procedures of the organization, its technology, and the procedures for recruitment,
selection and training; and are influenced by the common beliefs, attitudes and values
of the members of the organization.
The strategies, structures, procedures and behaviors adopted by management

create a work environment. However, if managers have been members of the
organization for some time they are themselves a product of the culture.
As culture is both an input and an output, it is likely to be self-perpetuating and

highly resistant to change. Figure 7.2 demonstrates how culture is both an input and
output.
58
(Adapted from Williams et al 1989)
Organizational Culture vs. National Culture
Based on the research of Dr. Geert Hofstede, There are differences between
national and organizational cultures. For global companies it is important to
understand both, organizational and national culture, in order to impact organizational
performance.
In a recent ITAP seminar, Dr. Geert Hofstede discussed “Integrating Corporate

Practices and National Cultural Values.” The topic is highly relevant to organizations
operating in a volatile global economic environment. While economic turmoil creates
challenges and failures, it also creates opportunities as evidenced in a large number of
mergers and takeovers: Doosan and Bobcat, Lloyds and HBOS, Barclays and Lehman
59
Brothers, Citigroup and Wachovia. The list is long. Many of these names have strong
national brand identity. They are goliaths (giants) with offices in many economic
centers around the world. How should they integrate to become one organization?
Our national culture relates to our deeply held values regarding, for example,
good vs. evil, normal vs. abnormal, safe vs. dangerous, and rational vs.
irrational. National cultural values are learned early, held deeply and change slowly
over the course of generations.
Organizational culture, on the other hand, is comprised of broad guidelines

which are rooted in organizational practices learned on the job. Experts agree that
changing organizational culture is difficult and takes time. What is often overlooked
or at least underestimated when two or more companies merge is how the underlying
personal values of employees impact how they perceive the corporate culture, etc. A
person can learn to adapt to processes and priorities, and a person can be persuaded to
follow the exemplar behaviors of leaders in an organization. But if these priorities
and leadership traits go against the deeply held national cultural values of employees,
corporate values (processes and practices) will be undermined. What is appropriate in
one national setting is wholly offensive in another. What is rational in one national
setting is wholly irrational in another. And, corporate culture never trumps (outdoes)
national culture.
The answer, then, lies not in abandoning efforts to unify organizations after a
merger or cancelling efforts to build high performance culture, but in overlaying and
harmonizing local interpretations of corporate practices to cultural norms.
In organizational theory, culture is a commonly researched subject matter. A

link is often drawn between a strong organizational culture and dominance in the
market place. Culture is shaped by an organization’s unique history and situational
growth. It can be defined as the values, beliefs, and expectations more or less shared
by the organization’s members. It affects the way a company does business and makes
known relevant employees, customers, suppliers, and competitors. Managers and
60
upper level executives are responsible for instilling the values and norms into
employees so they not only know what is expected of them, but are eager to perform
in such a way as to benefit the company.
“A top-rate administrator is able to create sources of meaning and identification

by providing an atmosphere that is rewarding for its employees and customers.” Scott
and Davis, 2007
A nation’s culture, similar to that of an organization, is comprised of the

symbols, values, rituals, and traditions of the people living in a particular region.
Language, food, and family traditions are all rooted in national culture. How people
behave in public verse, how they behave within their own home is also associated
with values and standards of their nation. Cultures usually differ in relationships
between the individual and society, ways of dealing with conflict, relationships to
authority, and conceptions of class and gender. All of these things are comparable to
organizational culture, just on a grander scale.
Of Hamburger and Social Space: Consuming McDonald’s in Beijing - The

article reviewed the development of the Western fast-food sector and the local
responses of people in Beijing. The Chinese are recognized for their great traditions
and rich culture and so, it was questioned whether McDonald’s would be able to
translate its well established business model from the West into something suitable for
people in the East. Even with all the doubt, McDonald’s was able to take Asia by
storm with irrefutable success, but how? When globalizing the golden arches, did
management try and adapt to the local culture or were they dependent on the locals
adapting to its established organizational culture; which way did the flow of
information go?
Creation of a Culture
The founders of an organization generally tend to have a large impact on

establishing the early culture. The organization’s culture results from the interaction
61
between the founder(s) biases and assumptions and what the original members of the
organization learn from their own experiences.
1. An organization’s culture comes from what it has done before and the
degree of success it has had. The ultimate source of an organization’s
culture is its founders.
2. The founders of an organization traditionally have a major impact on that
organization’s early culture.
 They had the vision; they are unconstrained by previous customs or
ideologies.
 The small size of new organizations facilitates the founders’
imposition of the vision on all organizational members.
3. Culture creation occurs in three ways:
 First, founders hire and keep only employees who think and feel the
way they do.
 Second, they indoctrinate and socialize these employees to their way
of thinking and feeling.
 The founders’ own behavior acts as a role model that encourages
employees to identify with them and thereby internalize their beliefs,
values, and assumptions.
4. When the organization succeeds, the founders’ entire personality becomes
embedded in the culture of the organization.
Keeping a Culture Alive
There are practices within the organization that act to maintain it by giving
employees a set of similar experiences. Three forces play a particularly important part
in sustaining a culture: selection practices, the actions of top management, and
socialization methods.
1. Selection
62
 The explicit goal of the selection process is to identify and hire
individuals who have the knowledge, skills, and abilities to perform the
jobs within the organization successfully.
 The final decision as to who is hired will be significantly influenced by
the decision maker’s judgment of how well the candidates will fit into
the organization. This results in the hiring of people who have values
consistent with those of the organization.
 Additionally, the selection process provides information to applicants
about the organization. Selection, therefore, becomes a two-way street.
Example—applicants for entry-level positions in brand management at Procter

& Gamble (P&G). Each encounter seeks corroborating evidence of the traits
that the firm believes correlate highly with “what counts” for success at P&G.
2. Top management
The actions of top management, what they say and how they behave, establish
norms that filter down through the organization as to:
o Risk-taking.
o How much freedom managers should give their employees.
o What is appropriate dress?
o What actions will pay off in terms of pay raises, promotions, and
other rewards?
3. Socialization
New employees are not fully indoctrinated in the organization’s culture. They
are unfamiliar with the organization’s culture and are potentially likely to
disturb the beliefs and customs that are in place.
Socialization
The process through which the employees are proselytized about the customs
and traditions of the organization is known as socialization. It is the process of
adaptation by which new employees are to understand the basic values and norms for
63
becoming ‘accepted’ members of the organization. Socialization is a process made up
of three stages: pre-arrival, encounter, and metamorphosis.
 The first stage, pre-arrival, encompasses all the learning that occurs
before a new member joins.
 In the second stage, encounter, the new employee sees what the
organization is really like and confronts the possibility that
expectations and reality may diverge.
 In the third stage, metamorphosis, the relatively long-lasting changes
take place. The new employee masters the skills required for his/her
job, successfully performs his/her new roles, and makes the
adjustments to his/her work group’s values and norm.
Socialization Process Outcomes
Productivity
Pre-arrival Encounter Metamorphosis Commitment
Turnover
How Employees Learn Culture
Stories
Stories typically contain a narrative of events about the organization’s founders,

rule breaking, rags-to-riches successes, reductions in the workforce, relocation of
64
employees, reactions to past mistakes, and organizational coping. They anchor the
present in the past and provide explanations and legitimacy for current practices:
 For the most part, these stories develop spontaneously.

 Some organizations actually try to manage this element of culture learning
Rituals
Rituals are repetitive sequences of activities that express and reinforce the key
values of the organization, what goals are most important, which people are important,
and which are expendable.
Material Symbols
The material symbols convey to employees who is important, the degree of

egalitarianism desired by top management, and the kinds of behavior that are
appropriate.
Language
Many organizations and units use language as a way to identify members of a

culture or subculture. By learning this language, members attest to their acceptance of
the culture and help to preserve it.
New employees are frequently overwhelmed with acronyms and jargon that,
after six months on the job, have become fully part of their language.
Culture is transmitted to employees in a number of ways; for example, through

stories, rituals, material symbols and language. The process of developing and
sustaining organizational culture is illustrated by the following figure by Robbins:
65
Top management
Philosophy of
Selection criteria Organization
organization’s
culture
founders
Socialization
Figure 7.1
(Adapted from Robbins 1989, page 479)
The future holds promise for companies that understand and nurture their
cultures. Cultures are not only able to create an environment, but they also adapt to
diverse and changing circumstances. As organizations begin to experience a
revolution in structures, the study of culture and the implications for change will
become more important. Understanding of work group subcultures within an
organization’s culture will influence strategies for changing organizational culture and
overcoming resistance to change programs.
Changing an organization’s culture may be extremely difficult, as the processes
that support a particular organization or a departmental method of working are both
interrelated and varied. Organizational culture is self-perpetuating and highly resistant
to change. Changes may cause confusion, conflict and resistance.
Managers need to understand the nature and role of culture and how it may be
altered. When the role of culture is more clearly defined, managers can better
understand its importance in managing organizational change and its impact on day-
to-day decision-making.
66
DATA ANALYSIS AND INTERPRETATION
Age of the respondent
Table-1
Age of respondents No of respondents No of respondents in %

Below 20 0 0%
21 to 30 30 20%
31 to 40 80 40%
41 to 50 20 20%
Chart-1
0%
20%
40%
20%
INTERPRETATION:
The above graph reveals that 40% of the employees are in between the age group of
31 to 40 .20% of the employees are in between the age group of 21 to 30 . 20% of the
employees are in between the age group of 41 to 50 .0 % of the employees are below
20.
67
2. Educational qualification of the respondents
Table-2
Educational qualification No of respondents in %
Below graduate 15
Under graduate 60
Post graduate 80
Other technical 40
Chart-2
Educational qualification
90
80
70
60
50
40
30 Educational
20 qualification
10
0
Below graduate Under graduate Post graduate Other technical
Interpretation
The above graph reveals that 15% of the employees are below graduates. 60%
of the employees educational qualification is under graduation. 80% of the employees
were having qualification of post graduation. 40% of the employees are from other
technical side.
68
3. Total Experience
Table-3
Experience No of respondents No of respondents in %
0-2 30 20
2-4 30 25
4-6 80 75
6 20 20
Chart-3
experience
0-2
2-4
4-6
6
Interpretation
The above graph reveals that 20% of the employees are having 0-2 years
experience. 25% of the employees are having 2-4 years experience. 75% of the
employees were having are having 4-6 years work experience. 20% of the employees
are having 6 years experience.
69
4. Experience In the present organization
Table-4
Experience No of respondents No of respondents in %
0-2 30 20
2-4 30 15
4-6 80 40
6 20 15
Chart-4
current organization
0-2
2-4
4-6
6
Interpretation
The above graph reveals that 20% of the employees are having 0-2 years
experience in the current organization. 15% of the employees are having 2-4 years
experience.40% of the employees are having 4-6 years work experience in the present
organization. 15% of the employees are having 6 years experience.
70
5. Working Conditions
The working conditions are easy to adapt
Table-5
Working N o of respondents in %
conditions
Strongly agree 50
Agree 35
Undecided 20
Disagree 10
Chart-5
working conditions
60
50
40
30
working conditions
20
10
0
strongly agree agree undecided disagree
Interpretation
The above graph reveals that 50% of the employees are strongly agree with the
working conditions. 35% of the employees are agree that the working conditions are
easy to adapt. 20% of the employees are undecided with the working conditions. 10 %
of the employees are disagree with the working conditions.
71
6. I feel comfortable with my present job
Table-6
Comfortable with N o of respondents in %
present job
Strongly agree 60
Agree 40
Undecided 30
Disagree 10
Strongly disagree 10
Chart-6
job satisfaction
strongly agree
agree
undecided
disagree
Strongly disagree
Interpretation
The above graph reveals that 60% of the employees are strongly agree that they
are comfortable with their present job. 40% of the employees are agree they are
comfortable with their present job. 20% of the employees are undecided with their
present job. 10 % of the employees are disagree with their present job. 10 % of the
employees are strongly disagree with their present job.
72
7. The overall infrastructure provided by the organization is satisfying
Table-7
Infrastructure N o of respondents in %
Strongly agree 75
Agree 35
Undecided 20
Disagree 15
Chart-7
infrastructure
80
60
40
infrastructure
20
0
strongly agree agree undecided disagree strongly
disagree
Interpretation
The above graph reveals that 75% of the employees are strongly agree that they are
satisfied with the infrastructure provided by the organization. 35% of the employees
are agree that they are satisfied with the infrastructure provided by the organization.
20% of the employees are undecided that they are satisfied with the infrastructure
provided by the organization. 15 % of the employees are disagree with the
infrastructure provided by the organization. 10 % of the employees are strongly
disagree with the infrastructure provided by the organization.
73
8. Use of your capacities at work
There is a possibility to perform multi tasks in the organization
Table-8
multitasks N o of respondents in %
Strongly agree 70
Agree 50
Undecided 20
Disagree 15
Chart-8
multitasks
strongly agree
agree
undecided
disagree
strongly disagree
Interpretation
The above graph reveals that 70% of the employees are strongly agree that
there is possibility to perform multitasks in the organization. 50% of the employees
are agree that there is possibility to perform multitasks in the organization.20% of the
employees are undecided that there is possibility to perform multitasks in the
organization.. 15 % of the employees are disagree with the possibility to perform
multitasks in the organization.. 10 % of the employees are strongly disagree with the
possibility to perform multitasks in the organization.
74
9. The level of work responsibility given to me is appropriate
Table-9
Level of work N o of respondents in %
Strongly agree 60
Agree 50
Undecided 20
Disagree 30
Chart-9
level of work
60
50
40
30
20
10
0 level of work
Interpretation
The above graph reveals that 60% of the employees are strongly agree that the
level of work responsibility given is appropriate. 50% of the employees are agree that
the level of work responsibility given is appropriate.20% of the employees are
undecided that the level of work responsibility given is appropriate. 30 % of the
employees are disagree with the level of work responsibility given is appropriate. 15%
of the employees are strongly disagree with the level of work responsibility given is
appropriate.
75
10. Support creativity and innovative ideas
Table-10
Creativity and innovative ideas N o of respondents in %
Strongly agree 75
Agree 55
Undecided 30
Disagree 20
Chart-10
creativity and innovative ideas

strongly agree
agree
undecided
disagree
strongly disagree
Interpretation
support creativity and innovative ideas. 55% of the employees are agree that they
support creativity and innovative ideas.30% of the employees are undecided that they
support creativity and innovative ideas. 20 % of the employees are disagree that they
support creativity and innovative ideas. 15% of the employees are strongly disagree
that they support creativity and innovative ideas .
76
11. Encourage a friendly cooperative and warm environment
Table-11
cooperative and warm environment N o of respondents in %
Strongly agree 60
Agree 45
Undecided 30
Disagree 25
Chart-11
cooperative and warm environment

5
4
3
2
1 cooperative and warm
0 environment
Interpretation
encourage a friendly cooperative and warm environment.. 45% of the employees are
agree that they encourage a friendly cooperative and warm environment.30% of the
employees are undecided that they encourage a friendly cooperative and warm
environment. 25 % of the employees are disagree that they encourage a friendly
cooperative and warm environment. 10% of the employees are strongly disagree that
encourage a friendly cooperative and warm environment .
77
12. Provide the fertile ground for people to flourish
Table-12
fertile ground to flourish N o of respondents in %
Strongly agree 60
Agree 40
Undecided 20
Disagree 15
Chart-12
fertile ground to flourish

70
60
50
40
30
20
10 fertile ground to flourish
0
Interpretation
provide the fertile ground for people to flourish.40% of the employees are agree that
they provide the fertile ground for people to flourish.20% of the employees are
undecided that they provide the fertile ground for people to flourish. 15 % of the
employees are disagree that they they provide the fertile ground for people to flourish.
12% of the employees are strongly disagree that they provide the fertile ground for
people to flourish.
.
78
FINDINGS
 The Genting Group is an equal opportunity employer that embraces diversity in

the workplace.
 They strive to maintain an inclusive work culture that supports diverse talent to
contribute positively to the growth and productivity in line with the Group’s
vision and mission.
 Employees form an integral part of Genting Group and they remain committed
to human resource development.
 Their global workforce was about 62,000 as at 31 December 2015 with 29%
Malaysians comprising Malay (10%), Chinese (16%), Indian (2%) and Others
(1%); and the remaining 71% from other countries including but not limited to
Singapore, Indonesia, China, United Kingdom, United States and Bahamas.
 The male to female employees ratio is 66:34; with age below 30 (34%),
between 30 to 55 (62%) and above 55 (4%).
 The diversity of their workforce from different culture backgrounds has helped
their various operational teams, especially in the resort and gaming properties
to be responsive in its communication and services to guests from all over the
world.
 They seek to attract and retain the best talents by fostering a secure and
enabling workplace where every individual is valued and empowered to realize
his or her full potential.
 The rights of employees are always respected.
 In engaging with their people, they exercise impartiality, consistency and
transparency.
79
SUGGESTIONS
 There is need to revise the Leave policy.

 There is demand from over three fourth of the employees for extension of
casual leave, sick leave, maternity and paternity leave.
 The perdiems of the employees need to be revised considering the rise in
inflation rate and cost of living.
 Employees at Level 4 scored less in areas: work related support, reward and
recognition.
 Work related stress was also found high in level 4 employees.
 Thus there is a need to be strengthened Level 4 employees in terms of
recruitment, induction and job related support.
 There should be a constant evaluation and review of various organizational
events.
 There is a need of a monitoring system which could ensure timely completion
of processes.
 More clarity regarding job description may be helpful.
 All the employees who have multiple reporting should be HR Policy,
specifically financial policy can be revised for every two years. This would
ensure regular revision of the perdiems automatically.
 Effective manpower planning should be there to ensure optimum utilization of
human resources.
 This would require adequate number of members in a team. Presently there are
three teams (QA, Outreach, NNRO) comprising of just two members each.
 There should be reconciliation between work and private life.
 Career development plans have to be performed efficiently.
 Recognition and communication have to be maintained.
 Ideas should be innovative so as to maintain organizational climate more
effective.
 Effective training and leadership styles should be maintained.
80
CONCLUSIONS
The future holds promise for companies that understand and nurture their
cultures. Cultures are not only able to create an environment, but they also adapt to
diverse and changing circumstances. As organizations begin to experience a
revolution in structures, the study of culture and the implications for change will
become more important. Understanding of work group subcultures within an
organization’s culture will influence strategies for changing organizational culture and
overcoming resistance to change programs.
Managers need to understand the nature and role of culture and how it may be
altered. When the role of culture is more clearly defined, managers can better
understand its importance in managing organizational change and its impact on day-
to-day decision-making.
i) Through good and well known culture and climate, an organization is able to boost
its productivity. Employees are able to carry out their activities and tasks
according to the norms of the organization, thus enhancing efficiency and
effectiveness
ii) We have also learnt that cultures which are positive can be borrowed by other
organizations to achieve their organizational goals and objectives.
iii) Various types of organization culture and climate and their application differ from
one organization to another.
iv) Culture and Climate are two different things but inter-related. Culture forms the
climate of an organization.
v) The cultures of organizations are influenced by the founders of the organization.
vi) Culture has various levels. Beliefs form values which create the artifacts of the
organization.
81
BIBLIOGRAPHY
1. Shashi K.Gupta, Organizational Behavior, First Edition, 2000; Kalyani
Publishers.
2. John W. Newstrom /Keith Davis, Organizational Behavior; Ninth Edition; Tata
McGraw-Hill publishing Company Limited.
3. Paul Heresy, Kenneth H. Blanchard Dewey E. Johnson, Management of
Organizational Behavior; Seventh Edition; Pearson Education (Singapore).
4. M Parsad, Organizational Behavior, Third Thoroughly Revised Edition 2000;
Sultan Chand and Sons.
WEBSITES
www.lancogroup.com
www.wikipedia.com
www.hrabout.com
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Questionnaire On Organizational climate and culture
_____________________________________________________________________
Designation: Age:
NAME: EID NO:
_____________________________________________________________________
Note: kindly tick all the statements without leaving any
1) Name of the respondent:
2) Designation:
3) Age
A) Below 20 C) 31 to 40
B) 21 to 30 D) 41 to 50
4) Educational qualification
A) Below under graduate C) Post graduate
B) Under graduate D) other technical
5) Total experience
A) 0-2 C) 2-4
B) 4-6 D) 6
6) Experience in the present organization
A) 0-2 C) 2-4
B) 4-6 D) 6
83
WORKING CONDITIONS
1. The working conditions are easy to adapt
A) Strongly agree B) Agree
C) Undecided D) Disagree
E) Strongly disagree
2. I feel comfortable with my present job
3. The overall infrastructure provided by the organization is satisfying
USE OF YOUR CAPACITIES AT WORK
1. There is a possibility to perform multi tasks in the organization
2. The level of work responsibility given to me is appropriate
84
3) Support creativity and innovative ideas
4) Encourage a friendly cooperative and warm environment
5) Provide the fertile ground for people to flourish
6) If you could describe your corporate culture in three words what would you say?
………………………………………………………………………………….
………………………………………………………………………………….
Signature: ______________ Thanks for filling this in.
85

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INTRODUCTION

Organizational climate, is often defined as the recurring patterns of behavior,

Organizational Climate is the umbrella term to indicate the process of

Organizational climate (sometimes known as Corporate Climate) is the process

It is a set of properties of the work environment, perceived directly or indirectly

“Organizational culture is connected with the nature of beliefs and expectations

Climate of an organization is somewhat like the personality of a person. Just as

Basically, the organizational climate reflects a person’s perception of the

A few important definitions are as given below.

According to Forehand and Gilmer, “Climate consists of a set of characteristics

According to Campbell, “Organizational climate can be defined as a set of

Thus, organizational climate is a relatively enduring quality of the internal

Before understanding the meaning of organizational climate, we must first

“Climate in natural sense is referred to as the average course or condition of the

However, it is quite difficult to define organizational climate incorporating the

“Organizational culture is connected with the nature of beliefs and expectations

Indian economy on a high growth trajectory, bridging demand-supply gap is going to

sector has attracted private investment.

The study helps to determine which of the transformational leadership behavior

has the strongest influence to climate for organizational innovation.

Attention to Detail: The degree to which employees are expected exhibit

Outcome Orientation: The degree to which management focuses on results or

Stability: The degree to which organizational activities emphasize maintaining the

3. Empowerment and a sense of freedom.

You empower people by not micromanaging, erring on the side of giving

If you haven’t watched Susan Cane’s TED Talk on introverts, I highly

5. Talking to customers and employees.

At different points in a company’s maturation process, you're almost

6. Your organizational design.

Sample Design: 95 Respondents

The sampling purpose only 3designations the name of designations are

“A research design is the arrangement of conditions for collection and analysis

Observation is a mode of primary data collection through which we directly get

Interviewing is another mode of direct data collection, which provides

Stimulation is a technique of performing experiments on the model of a

Questionnaire: Questionnaire is the method of data collection, which is very much

An Overview of the Industry:

ELECTRICITY is one of the vital Requirements in the overall development of

The National Hydroelectric power Corporation has been assigned a dominant

The Union Government has, in order to step up Central Generation in the

Government of India has recently constituted a group to identify new hydel

 Nuclear Source is clean, compact and concentrated.

The Capacity Cost per Kw of Power Production is estimated as US $1000 for

Wind Energy is fast emerging as the most Cost-Effective source of power as it

Hurdles in Environment Clearances tend to slow down Completion of Power

THE STATE ELECTRICITY BOARDS:

In just 17 years National Thermal Power Corporation (NTPC) has grown to be

SHORT AND LONG TERM MEASURES TO COPE WITH THE ENERGY

Short Term Strategy:

PRIVATE SECTOR PARTICIPATION IN POWER GENERATION:

The Central Government has formulated a scheme to encourage greater

The Breakup of the Capital investment is:

 20% Equity out of which at least 11% to be raised as

(The Lanco group of Companies was Established Nurtured and Developed by a

L.Rajagopal Member of Parliament Founder Chairman – LANCO Group of

(L Rajagopal, a technocrat-turned industrialist, is the Founder Chairman of

Introduction to Genting Lanco Power (India) Private Limited

Genting Lanco Power Private (India) Private Limited is a Subsidiary of