Professional Documents
Culture Documents
OB Project
OB Project
Research Question
Prepared by: Ibttisam Israr (23110036), Ali Kumayl (23110158), Qasim Noor
TABLE OF CONTENTS
I. Abstract 3
II. Introduction 4
IV. Methodology 11
VI. Limitations 19
VII. Recommendations 20
VIII. Conclusion 20
IX. References 22
X. Appendix 25
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“Impact of organizational culture on Job satisfaction”
ABSTRACT
The study helps us evaluate the degree of satisfaction of employees with regards to the
organizational culture type practiced in their firms. The OCAI assessment results categorize the
organization's culture profile based on four organizational culture types: “Clan”, “Adhocracy”,
“Market”, and “Hierarchy”. The survey was conducted in two organizations, Unilever and
Durrani & Co. According to the Quinn and Cameron model, the participants had to follow out on
the survey that consisted of six aspects, each aspect having four questions. Through the
collection of empirical data, it was observed that all four types of cultures were prevailing. Still,
one specific culture was dominant for each organization: for Unilever, it was Market culture, and
for Durrani & Co, it was the Clan. The study was conducted because only a limited number of
studies have dealt with the Pakistani context's research question. It can be concluded from the
results obtained that an employees' job satisfaction does depend on the culture that is being
practiced within the organization. Through the results from the survey, we found out that the
employees working in Durrani & Co. were more satisfied with their job rather than those
working at Unilever; that is, Adhocracy and Clan cultures are positively linked with job
satisfaction while Hierarchy and Market cultures leads to dissatisfaction amongst the employees.
Keywords: Job satisfaction, Market culture, Organizational culture, Clan culture, Adhocracy
INTRODUCTION
different institutions because of its capacity to effect desired outcomes on an organizational and
individual basis. For this research paper, we focus on the assumed proportional relationship
between an organization's culture and its employees' degree of satisfaction. Previous research
such as that by Ahmad and Veerapandian has shown that strong organizational culture has a
significantly positive relationship with employee job satisfaction (Ahmad & Veerapandian,
2012). A strong culture entails a supportive one, too. Elvis and Asiedu have debated that a
supportive culture in any organization leads to employee job commitment, positively influencing
However, most research has taken place outside of Pakistan, and very few have tried to
analyze the effect of these two variables on each other locally. As Karadağ points out in their
paper on the same topic, most previous studies have been limited to a very Canadian or
American point of view; this has been the case because most other countries have not published
their work in English and have not added their points of view to the conversation (2015). Our
In general, humans want to retain their individual identity, even when they work in the
same organization with standard rules and regulations. As Sharma aptly put, one of the main
challenges for organizations is to accommodate people from different cultures and backgrounds,
by addressing their diverse lifestyles, individual needs, and work styles (Sharma, 2018). In
addition to that, the recent global pandemic has forced companies to rethink their preset
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“Impact of organizational culture on Job satisfaction”
methodologies and adapt to a new work environment while not leaving any employee behind. In
become significant, and the need to reevaluate the relationship between satisfaction and culture
becomes imperative.
For the reasons mentioned above, we have interviewed and confidentially surveyed the
employees of Unilever Pakistan and Durrani and Co; this constituted our primary research. The
two organizations are in Sialkot and Rahim Yar Khan in the country of Pakistan, respectively.
The surveys were conducted in two parts, wherein the Organizational Culture & the Employee
Satisfaction Index (ESI) were assessed. We employed the use of ‘Organizational Culture
Assessment Instrument © Kim Cameron and Robert Quinn’ to catalog each organization's
dominant subculture. After the rendering of final graphs indicating the subcultures, the results
were used to arrive at conclusions when analyzed alongside the ESI. We held remote interviews,
and their responses were scripted for analysis later. The nexus between these three modes of
The report is organized as follows. Firstly, the literature review summarizes the previous
research done in the field and offers a relevant critique. Our methodology is followed by a
detailed description of the frameworks and theories we have used to analyze our data. We
declare and categorize our findings and relate them to previous studies, after that reaching
conclusions. In our limitations section, we have listed out the parts of research we could not
carry out due to our physical restraints and lack of complete information. Lastly, we will
conclude and summarize our findings, followed by our report's reference material. All figures
Literature Review
However, many researchers concur that it alludes to a system of beliefs, values, and behavior
shared amongst an organization's people (Xiaoming & Junchen, 2012). A succint definition was
offered by Schein in 2004, which stated that organizational culture is "the pattern of basic
assumptions that a group has invented or discovered in learning to cope with its problems of
external adaptation and internal integration, and that has worked well enough to be considered
valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel
in relation to those problems" (Belias et al, 2014). Furthermore, seven characteristics explain the
detail, Outcome orientation, Aggressiveness, Stability, and finally Innovation and risk-taking
classify and describe organizational culture. However, this paper only focuses on the ‘Competing
Values Framework’ created by Cameron and Quinn (Cameron & Quinn, 2006). According to
their typology, there are two facets of an organization's culture: a focus on internal versus
external relationships and a focus on mechanistic processes versus organic processes (Cameron
& Quinn, 2006). The four organizational types — Clan, Market, Adhocracy, and Hierarchy in
the Competing Values Framework (CVF) emerge from the intersection of these two dimensions,
Clan (cooperative) culture has a high affiliation, a vital concern for people, and
teamwork. Moreover, the organization operating as a family with leaders as mentors displays
trust, unity, and solidarity with visible emphasis on long-term human resource development
Hierarchy (control) culture is highly structured and formal, bearing similarities with
bureaucracy. Employee behavior is governed by rules with the efficiency of operations, stability,
the bottom line, i.e., profit. The strategic emphasis is on competitive advantages and Market
employees to take risks. Furtherthermore, employees are also given the freedom and encouraged
to take the initiative in the workplace. (Ahmad, Zakaria, and Omar, 2018).
Based on CVF, Quinn and Cameron developed the Organizational Culture Assessment
Instrument (OCAI), a framework used to diagnose and change organizational culture (Cameron
& Quinn, 2006). This tool is being used by tens of thousands of organizations worldwide to
diagnose organizational culture (Turlais & Dubkevics, 2017). In comparing various culture
measurement instruments, it was found that OCAI has better reliability and validity compared to
the other available tools such as ‘Organizational Culture Inventory’ (OCI) and Hofstede's
various local and international institutions. Therefore, it is only natural that a workplaces' welfare
has become an area of interest for theory and research, especially regarding employee
how its characteristics and workings are adjudged by its employees (Warr, 1992). It also includes
employees' mental and physical state, and their general sense of happiness and well-being; these
features can be attributed to "job satisfaction" (Grant et al., 2007). The concept has been defined
differently by different individuals over time; In 1964, Vroom expressed job satisfaction as the
result of emotions that employees possessed towards the role they have had taken up in the
workplace. Similarly, in 1938, Hoppock and Spielgler defined job satisfaction as the cumulative
employees to avow that they are content or satisfied with their jobs (Abdul Raziq, 2015).
The basis for investigating job satisfaction as a dependent variable can be traced to
Herzberg's Motivation-Hygiene theory in 1959. Job satisfaction was linked to Hygiene and
motivation factors (refer to figure 2 in Appendix C). The former cannot cause satisfaction but
can influence dissatisfaction. In contrast, the latter has long-term effects as it raises positive
feelings towards the job and converts no dissatisfaction into satisfaction (Alshmemri, Shahwan.
2017). Interestingly, Abraham Maslow's model for the theory of motivation can also explain job
satisfaction. He argued that motivation is composed of five quintessential needs (refer to figure 2
in Appendix C). Maslow arranged these five needs in a hierarchical manner; a higher job
satisfaction will be achieved if any requirement is fulfilled (Steers & Porter 2003; Ntisa, A. A.
2015).
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“Impact of organizational culture on Job satisfaction”
In 2011, Cleal and Sell proposed a model on job satisfaction to study employees'
reactions in challenging workplaces with high financial benefits and non-hazardous work
environments and low financial benefits. The study indicated that different psycho-social and
workplace variables like work environment and social support are positively related to job
satisfaction. Increasing rewards do not necessarily improve employees' satisfaction level (Sell,
Lea & Cleal, Bryan. 2011). A recent study conducted by Abdul Raziq and Raheela, found that
the working environment and job satisfaction are positively correlated by employing a regression
analysis (Abdul Raziq, 2015). In 2017, Naser Houbobi and Alireza randomly selected 125
employees of an Iranian petrochemical company to investigate the impact of job satisfaction and
work productivity and stated in their results that "the positive correlation between job satisfaction
and productivity indices was statistically significant" (Hoboubi, N., Choobineh, 2017).
because of their commitment, involvement, and loyalty, which are indispensable and cannot be
identify the organizational culture that will lead to employees' satisfaction with their current job
and contribute to an organization's success (Amjad, 2011). A plethora of researches have been
carried out to analyze and determine the linkage between organizational culture and job
satisfaction. A research conducted on the National Oil Corporation of Libya revealed that the
relationship between the four types of organizational culture (Market, Clan ,Hierarchy,
Adhocracy) and job satisfaction is significant and positive (Shurbagi and Zahari, 2012). Another
research on Russian business enterprises showed that different organizational cultures result in
different job satisfaction levels (Zavyalova and Kucherov, 2014). A study on the Jordanian
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“Impact of organizational culture on Job satisfaction”
private aviation companies further explored the relationship between the four types of
organizational culture and job satisfaction. The results indicated that there exists a positive
relationship between job satisfaction, Clan and Adhocracy cultures whilst the counter is true for
marker and hierarchical subcultures (Rawashdeh, 2015). Schiuma studied Clan culture and found
that employees feel secure in a supportive environment which adds to their satisfaction, thus
suggesting a positive relationship between job satisfaction and Clan culture (Schiuma et al.
2012).
If we narrow down the context of the research question to Asia, similar studies have been
conducted. These studies reveal the relationship between organizational culture and job
satisfaction. Moreover, Y.Tsai, based on a survey of hospital nurses in Taiwan, stated that there
is significant positive correlation of organizational culture with job satisfaction and leadership
behaviour (Tsai, 2011). A recent study of India's IT sector also indicated that organizational
Furthermore, if we now look at Pakistan, a study was carried out by collecting data from
types and job satisfaction. It suggested that the type of culture strongly impacts job satisfaction.
Employees who worked under Adhocracy and Clan cultures showed more satisfaction with their
current jobs, whereas employees who worked in Market and Hierarchy cultures had lower
satisfaction or were dissatisfied. (Fatima, 2016). However, the number of similar studies is
crucial to study organizational culture and job satisfaction because it allows managers to
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“Impact of organizational culture on Job satisfaction”
understand what contributes to employee job satisfaction, ultimately impacting the organization's
Methodology
The research was conducted in a well-planned and sorted way. The intent was to learn
about the organizational culture and its correlation to the employees' job satisfaction level. A
structured interview was conducted with three managers- designation in the table in Appendix B-
from Unilever in Rahimyar Khan and Durrani and Co. To conclude a prominent relationship
between the two variables under study, the same sets of questions were asked from each
manager. It helped us to easily compare the responses in our analysis. The interview conducted
culture.
score the six facets of an organization’s culture. These are as follows: dominant characteristics,
strategic emphasis. Each aspect comprises four alternatives, and the respondent has to score each
alternative out of 100. The most aligned alternative to the organization's pre-existent culture will
receive the highest marks. All alternatives' marks should add up to 100.
environment (i.e., rigid or dynamic). 'Organizational leadership' assesses whether the leadership
is nurturing or not. The 'management of employees' assesses how teamwork and risk-taking are
important for an organization marginally. 'Organization glue' assesses the shared values that hold
the employees together. 'Strategic emphases' questions the culture based on how the employees
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“Impact of organizational culture on Job satisfaction”
approach problems at work. 'The criteria for success' gauge the basis on which promotion is
We eliminated the second round of the OCAI because it evaluates the future's preferred
organization culture. The purpose of this research is not to study the gap between the desired
A total of 17 employees from both organizations filled out the survey. Data for each
alternative (example 1A, 2A, so on forth until 6A) was summed for all questions in each separate
response and averaged out by 6. The same is calculated for all employees who filled out the
survey. To tabulate the results and have a useful model to conclude our research with, the data
for each aspect, for each organization, was carried out separately. What remained were two
averages for each element in every organization. Every input value is average of all the responses
received (rounded to the nearest multiples of 5). Subsequently, a graph was plotted for each
organization. If the average for one alternative is higher than the rest, the resulting figure is
distorted towards that quadrant; this signifies that a subculture belonging to the quadrant is
dominant in the organization. The four subcultures are as follows- Clan, Market, Adhocracy, and
Seventeen participants from Unilever Pakistan and Durrani and Co. were each asked to
fill in the survey. All employees from different designations, gender, and work experience were
used as samples. Each of the respondents was personally contacted by one of our group
members, and the purpose of the questionnaire was explained. They were asked to fill the survey
after carefully going through the scale description of each question. Confidentiality of their
responses was also ensured. This was to analyze and study the impact of organizational culture
on job satisfaction.
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“Impact of organizational culture on Job satisfaction”
The last three questions in the survey were employed to calculate the Employee
Satisfaction Index (ESI). The ESI is calculated using the formula shown in figure 3 Appendix
C.
The respondent chooses a number between 1 to 10 for every question. The 17 responses
to each question were averaged out, and subsequently, the mean for the three means was
calculated. This final value is the 'question mean value' to be input in the equation. The result is a
number between 1 to 100 for every organization; a higher score indicating an overall elevated
employee satisfaction.
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“Impact of organizational culture on Job satisfaction”
The results of the study postulate a positive correlation between certain culture types and
their job satisfaction levels. Unilever's OCAI assessment revealed a more Market-oriented
culture, whereas the same assessment tilted more towards a Clan culture for Durrani and Co.
This can be reaffirmed via the results attached as figure 1.2; the graphs plotted reveal the
dominant culture present in both companies. One can conclude by evaluating the degree of the
skewness of the chart, usually in the direction of a particular quadrant. The results show clearly
that Unilever has scored more in the realm of a Market dynamic, achieving a total score of 45.83
in that regard. Durrani, on the other hand, has a more robust Clan culture since it has its highest
Figure
1.2
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“Impact of organizational culture on Job satisfaction”
In the graph above, each quadrant is assigned to a culture type. While the results clearly
show both companies' affinity towards a dominant culture, it can be concluded that the Hierarchy
and Adhocracy rating for both companies are relatively close (though still Adhocracy is higher in
Durrani as compared to Unilever; this fact shall be relevant later). This allows us to isolate our
two variables; Clan and Market. Durrani's trapezium plotted on the graph also shows that the
company is inclined towards an internal focus and integration, coupled with flexibility and
discretion. The opposite is true for Unilever; its trapezium extends towards an external focus and
The aspects of a Clan culture at Durrani and Co. are highlighted through a statement by a
"some of the things that work well here as opposed to other companies … First thing is
that vertically it isn't that large, so it's very easy to reach the boss of your boss and that
person is usually very accessible. That's an advantage. Second thing is your goals and
your targets are very closely aligned with your boss' outcome, so if you're not performing
well he is incentivized to help you perform well. That's a big plus in this organization."
Employees at Durrani and Co felt valued under the Clan culture because it was
supportive and gave individual autonomy, evident from this quote of a Durrani employee;
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“Impact of organizational culture on Job satisfaction”
"Our boss comes by at the start of every day to greet us. This is what I like about this
essential aspect of Clan culture. The results related to a Clan culture resembled results reached
organization.
"We are very people-oriented; the company tries to focus on what the key drivers are for each
individual."
The culture at Unilever tends to lean towards a Market-oriented structure, evident from
"it is also outcome-based… they don't see how you got to the end goal but whether you got to the
"Our Long term focus is on competitive action and the efficient achievement of measurable goals
and targets. Competitive pricing and Market leadership are important here."
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“Impact of organizational culture on Job satisfaction”
As Unilever produces many standardized goods using assembly lines, the level of
individual freedom is constricted, and consequently, the creativity at work could suffer. For this
very reason, the Adhocracy rating for Unilever is relatively less (17.5). Besides, since all of
Unilever's research was conducted on a large manufacturing plant in Rahim Yar Khan with
mechanized and institutionalized tasks, the level of interaction between employees was low. This
can be explained by Unilever's Clan culture scoring, which sits at 16.7, the lowest among the
four.
In contrast, Durrani and Co's close-knit culture of only 200 employees, and a more
human-capital intensive nature, contributes to a higher Clan rating. Also, Unilever has a longer
Additionally, the ESI (employee satisfaction index) was used to compute the value of the
satisfaction level of both the companies employees; Unilever scored 69.8, whereas Durrani
scored 74.07. This shows how Durrani has a higher job satisfaction than Unilever, reaffirming
the positive relation between a Clan culture and job satisfaction, sharply contrasting with the
Moving forward, our results coincide with studies performed by Fatima (2016) and
Ravashdeh (2015); an Adhocracy and Clan culture are positively correlated with job satisfaction,
whereas a Hierarchical and Market culture are not. Our findings are also consistent with the
study concerning Russian business enterprises, which elaborated upon the varying level of
Noticeably, the barrier to diversity is considered a liability for an organization's culture. In the
interviews conducted, it was revealed that there was not a single female employee at Durrani and
"In the supply chain, specifically you do not find a lot of positions for women coming
from stem background- the ratio of men to women is as bad as you will find in an
Since Unilever has at least some female workers present, this could have negatively
impacted their job satisfaction. It is argued that having a minority status in a company may result
in lower job satisfaction for the said minority (Choi, 2017). For Durrani and Co, we can safely
deduce that every individual we interviewed was part of the majority. Unfortunately, the same
Limitations
The limitations of our research were predominantly due to the prevailing conditions in
this pandemic. We were unable to conduct the interview of the employees in person. Conducting
online interviews reduced the size of the data collected and impacted the accuracy of the survey.
The results of the OCAI still might not be illustrative of the entire organization—lack of
precision and a complete dataset exists. In addition to this, the data cannot be used to generalize
the organizational culture of other Unilever manufacturing sites; the workforce and management
differ everywhere. Additionally, our sample size was very small. We could only conduct ten to
twenty interviews- a size incapable of representing an entire organization. The results based on
this survey are not irrefutable enough to portray the full extent of organizational culture at
Furthermore, there are also some limitations when it comes to calculating the employee
satisfaction index. We can never mitigate the data bias because respondents give answers that are
socially accepted and prone to cognitive biases; to some extent, this also diminishes the survey's
conclusiveness. In addition to that, it can be critical to choose the right participants. In a firm,
those assigned with core tasks are generally more satisfied than the employees working in the
support role. For the survey to be effective, it is necessary to consider who is participating.
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“Impact of organizational culture on Job satisfaction”
Recommendations
• The management at Unilever needs to continue to study the various subculture types and
move for ones that are more fitting for a healthier environment. This also involves
• Unilever needs to move from its current dominant culture (Market) towards a bigger
proportion of the Clan subculture. External foci, stability, control, achievement, and
production orientation should be diluted with internal foci, flexibility, and a strong human
relations department.
• Because no single subculture is the best in all contexts, the company's management needs
to focus on strengthening and balancing the four cultural subdimensions described in this
study.
employee satisfaction surveys and understanding and rectifying the causes of discontent.
• -Managers need to work more on improving employees’ perceived satisfaction with their
salaries and try to incentivize in various ways if monetary compensation is not possible
Conclusion
The study has aimed to evaluate the indication that certain culture types result in variable
levels of job satisfaction. We have achieved this fact via a direct comparison between two
organizations, obtaining results that support that job satisfaction does indeed vary with different
organizational environments and dynamics. This variation can be comfortably linked to the
diverse features and distinctive dimensions of each subculture type employees reside in. Unilever
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“Impact of organizational culture on Job satisfaction”
and Durrani’s dominant cultures sure impact the attitudes of their workers, hence their
We have shown the validity of the OCAI and Camerons and quin’s CVF model in a
Pakistani environment, applied to two different sized manufacturing companies. Both companies
were of the same orientation gives credibility to our comparison and makes it justifiable. The
present study's findings contribute significantly in crafting internal organizational strategies that
could tune the firm's goals with their employee's perspectives to “glue” tightly the organization,
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Appendix A
There are 6 questions in the OCAI questionnaire, with each individual question having four sub-parts. A
total of 100 points are divided amongst these four sub-parts under each question. The points are
awarded to each sub-part based on the evaluation of the statement present with each sub-part. A
higher similarity of an organization with a particular sub-part would consequently result in a higher
scored being awarded.
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“Impact of organizational culture on Job satisfaction”
Appendix B
Table 1: Participants Profile
Appendix C
Figure 1
Figure 2
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Figure 3
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Appendix D
Data Collected from Unilever
Every input value is average of all the responses received (rounded to the nearest multiples of
5)
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RESULT
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ESI = 69.06318083
RESULT
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ESI 74.07407407