ORGANIZATIONAL CULTURE: A CASE STUDY

OF EICHER MOTORS
Submitted in partial fulfillment of the requirements
for the award of the degree of

Bachelor of Business Administration (BBA)

Semester-III (Paper Code-BBA 209)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by
Name of Student: SHASHANK MALHOTRA
Dr. Gagandeep Kaur Roll No.:06613701716
Batch: 2016-2019

Nurturing Excellence

Institute of Information Technology & Management,

New Delhi 110058
2017-2018

i
 Certificate

I, Mr. SHASHANK MALHOTRA Roll No. 06613701716 certify that the Minor Project

Report/Dissertation (Paper Code BBA-209) entitled Organizational culture : A case study of

Eicher motors is completed by me by collecting the material from the referenced sources. The

matter embodied in this has not been submitted earlier for the award of any degree or diploma to the

best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Minor Project Report (Paper Code BBA-209) entitled Organizational culture

: A case study of Eicher motors done by Mr. SHASHANK MALHOTRA Roll No.

06613701716 , is completed under my guidance.

Signature of the Guide

Name of the Guide:
Designation:
Date:

Countersigned

Director/Project Coordinator

ii
 ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to my project guide Dr. Gagandeep Kaur for her

valuable guidance and help in completing this project work.

Getting a project ready requires the work and effort of many people. I would like all those

persons who have contributed in completing this project.

I would like to take an opportunity to thank all the people who helped me in collecting necessary

information and making of the report. I am grateful to all of them for their time, energy and

wisdom.

SHASHANK MALHOTRA

Enrollment No.-06613701716

Date:

iii
 Institute of Information Technology & Management, New Delhi

Assignment No: BBA/209/ 06613701716

DISSERTATION WRITING: BBA SEMESTER III

Background: University Scheme

As per the syllabi of BBA (Paper Personality Development & Communication Skills code BBA-209),
students at the end of Semester II (during the summer vacation) are to write a dissertation on a topic
assigned to him/her. It is termed as Minor Project Report and comprises of 6 credits. The report is to
be submitted within Two Weeks of the commencement of Third Semester.
Objectives
The academic objectives for writing the dissertation are:

(a) Inculcate the habit of self study.

(b) Enhance analytical ability by compre hending management concepts through self study.
(c) Develop research ability by extracting the material from the different sources,
compilation and collating with references.
(d) Write comprehensive and exhaustive dissertation specific to a topic.

Scope of Dissertation

The title of the dissertation assigned is Organizational culture : A case study of Eicher
motors and the functional aspects to be covered in the body of the dissertation comprises of
(you may exceed these):
a) Concept of Organizational culture
b) Types of Organizational culture
c) About Eicher motors
d) Impact of Organizational culture on employee satisfaction
e) Conclusion
f) Suggestions and Recommendations
Each student is to collect contents/material related to the topic and the scope as mentioned above
from various sources such as books, journals, magazines, Internet etc. One copy comprising of
minimum 40 typed pages (inclusive of diagrams, references etc) is to be submitted to the
respective guide as per the schedule given in the following paragraph.

iv
Schedule & Evaluation Scheme
To be Completed by Activity Marks
Date Allotted
09th June, 2017 Briefing and allocation of Topics of study. -
09th June, 2017 Allocation of Topics and Project Guide to each student.

20th July, 2017 Mid-term Review: Submission of work done till date. 10

29th July, 2017 Submission of Draft Report to the respective guides. 10

18th August 2017 Submission of Final Report (One Spiral Binded copy) to the 10
respective guide.
12th September, 2017 BBA (M1) - Viva & Power Point Presentation to the Internal
Supervisor.
13th September, 2017 BBA (M2) - Viva & Power Point Presentation to the Internal
Supervisor.
14th September, 2017 BBA (E1) - Viva & Power Point Presentation to the Internal
15
Supervisor.
18th September, 2017 BBA (E2) - Viva & Power Point Presentation to the Internal
Supervisor.
th
25 September, 2017 Submission of 2 copies Final Hard Bound Report and 5
CD to the respective guides.
As notified by the External presentation & Viva before the external examiner. 50
University
Total Marks 100
Format for Compilation
The dissertation is to be compiled and submitted as per the format laid down in Academic
Circular 4/2009 (Revised). All students are to strictly adhere to the format.
Submission
Final dissertation completed in all respects is to be submitted to the guide as per the schedule
given above.
CAUTION: This dissertation is independent work to be conducted by each student
individually. Any previous work or borrowed work will be summarily rejected and in all
cases of rejection the work is to be repeated afresh.

Assignment Prepared by Dr. Sunitha Ravi

Dr. Gagandeep Kaur (Project Coordinator)

Countersigned
Prof. (Dr.) Rachita Rana
Director

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 CONTENTS

S No Topic Page No

1 Certificate -

2 Acknowledgement -

3 Assignment Directive -

4 List of Tables -

5 List of Figures -

6 List of Symbols -

7 List of Abbreviations -

8 Executive Summary

9 Chapter 1: Concept of Organizational culture 01-10

10 Chapter 2: Types of Organizational culture 11-20

11 Chapter 3: About Eicher motors 21-30

12 Chapter 4: Impact of Organizational culture on employee 31-34

satisfaction

13 Chapter 5: Conclusion 35

14 Chapter 6: Suggestions & Recommendations 36-38

15 References/Bibliography 39-40

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 LIST OF FIGURES

Figure No Title Page No

1L Fig 2.1 : Types of Organisational Culture 11

2I Fig 3.1 : Eicher Motors Limited 21

3S Fig 3.2 Eicher Truck in Mysore 22

4T Fig 3.3: An Eicher Multi-Axle lorry 23

5 Fig 3.4 Royal Enfield 28

O
6 Fig 3.5 : VE Commercial Vehicles Ltd. 29

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 LIST OF ABBREVIATIONS

S No Abbreviated Name Full Name

1 OCAI Organizational Culture Assessment Instrument

2 EML Eicher Motors Limited

3 EPPL Eicher Polaris Private Ltd.

4 LCVs light commercial vehicles

5 VECV VE Commercial Vehicles

viii
 CHAPTER-I

CONCEPT OF ORGANIZATIONAL CULTURE

Every company has its own unique personality, just like people do. The unique personality of an

organization is referred to as its culture. In groups of people who work together, organizational

culture is an invisible but powerful force that influences the behavior of the members of that

group. So, how do one define organizational culture?

Organizational culture is a system of shared assumptions, values, and beliefs, which governs

how people behave in organizations. These shared values have a strong influence on the people

in the organization and dictate how they dress, act, and perform their jobs. Every organization

develops and maintains a unique culture, which provides guidelines and boundaries for the

behavior of the members of the organization.

Organizational culture is composed of seven characteristics that range in priority from high to

low. Every organization has a distinct value for each of these characteristics, which, when

combined, defines the organization's unique culture. Members of organizations make judgments

on the value their organization places on these characteristics and then adjust their behavior to

match this perceived set of values. Examine each of these seven characteristics.

1.1. Understanding Organizational Culture

Would one act the same way at a rock concert as other one would while watching a symphony

orchestra perform? Although there are no written rules that dictate the acceptable way to act at

1
either type of performance, the concert audience will try to make it very clear to one if ones

behaviour does not conform to what they consider to be appropriate.

Would one dress the same way to attend a golf tournament as one would to attend a football

game? Although both are sporting events, there are a set of unwritten rules that dictate what is

considered to be the acceptable way to dress for each type of event, and the people in attendance

will send signals as to whether or not they think one is dressed appropriately.

At concerts, sporting events, and just about everywhere that people get together, group members

convey social expectations by how they dress and act. Newcomers to the group are expected to

learn what is acceptable to the group by observing the behavior and dress code of the group

members and adapting to the situation accordingly.

1.2. Defining Organizational Culture

Every company has its own unique personality, just like people do. The unique personality of an

organization is referred to as its culture. In groups of people who work together, organizational

culture is an invisible but powerful force that influences the behavior of the members of that

group. So, how do one define organizational culture?

Organizational culture is a system of shared assumptions, values, and beliefs, which governs

how people behave in organizations. These shared values have a strong influence on the people

in the organization and dictate how they dress, act, and perform their jobs. Every organization

develops and maintains a unique culture, which provides guidelines and boundaries for the

behavior of the members of the organization. Let's explore what elements make up an

organization's culture.

2
Organizational culture is composed of seven characteristics that range in priority from high to

low. Every organization has a distinct value for each of these characteristics, which, when

combined, defines the organization's unique culture. Members of organizations make judgments

on the value their organization places on these characteristics and then adjust their behavior to

match this perceived set of values. Let's examine each of these seven characteristics.

Organizational culture encompasses values and behaviours that "contribute to the unique social

and psychological environment of an organization".According to Needle (2004),organizational

culture represents the collective values, beliefs and principles of organizational members and is a

product of such factors as history, product, market, technology, strategy, type of employees,

management style, and national culture; culture includes the organization's vision, values, norms,

systems, symbols, language, assumptions, environment, location, beliefs, and habits.

Business executive developed what he refers to as an actionable definition of organizational

culture: "Organizational culture is an emergence an extremely complex incalculable state that

results from the combination of a few simple ingredients. In "Three Bell Curves: Business

Culture Decoded" Rosauer outlines the three manageable ingredients he says guides the culture

of any business. Ingredient 1 Employee (focus on engagement) 2 The Work (focus on

eliminating waste increasing value) waste 3 The Customer (focus on likelihood of referral). The

purpose of the Three Bell Curves methodology is to bring leadership, their employees, the work

and the customer together for focus without distraction, leading to an improvement in culture and

brand. Reliance of the research and findings of Sirota Survey Intelligence, who has been

gathering employee data worldwide since 1972, the Lean Enterprise Institute, Cambridge, MA,

and Fred Reichheld/Bain/Satmetrix research relating to NetPromoterScore.

3
Ravasi and Schultz (2006) wrote that organizational culture is a set of shared assumptions that

guide what happens in organizations by defining appropriate behavior for various situations. It is

also the pattern of such collective behaviors and assumptions that are taught to new

organizational members as a way of perceiving and, even, thinking and feeling. Thus,

organizational culture affects the way people and groups interact with each other, with clients,

and with stakeholders. In addition, organizational culture may affect how much employees

identify with an organization.

Schein (1992), Deal and Kennedy (2000), and Kotter (1992) advanced the idea that

organizations often have very differing cultures as well as subcultures. Although a company may

have its "own unique culture", in larger organizations there are sometimes co-existing or

conflicting subcultures because each subculture is linked to a different management team.

Usage

Organizational culture refers to culture in any type of organization including that of schools,

universities, not-for-profit groups, government agencies, or business entities. In business, terms

such as corporate culture and company culture are often used to refer to a similar concept. The

term corporate culture became widely known in the business world in the late 1980s and early

1990s. Corporate culture was already used by managers, sociologists, and organizational

theorists by the beginning of the 80s. The related idea of organizational climate emerged in the

1960s and 70s, and the terms are now somewhat overlapping.

If organizational culture is seen as something that characterizes an organization, it can be

manipulated and altered depending on leadership and members. Culture as root metaphor sees

4
the organization as its culture, created through communication and symbols, or competing

metaphors. Culture is basic, with personal experience producing a variety of perspectives.

The organizational communication perspective on culture views culture in three different ways:

Traditionalism: views culture through objective things such as stories, rituals, and

symbols

Interpretivism: views culture through a network of shared meanings (organization

members sharing subjective meanings)

Critical-interpretivism: views culture through a network of shared meanings as well as

the power struggles created by a similar network of competing meanings

Strong and weak

Strong culture is said to exist where staff respond to stimulus because of their alignment to

organizational values. In such environments, strong cultures help firms operate like well-oiled

machines, engaging in outstanding execution with only minor adjustments to existing procedures

as needed.

Conversely, there is weak culture where there is little alignment with organizational values, and

control must be exercised through extensive procedures and bureaucracy.

Research shows that organizations that foster strong cultures have clear values that give

employees a reason to embrace the culture. A "strong" culture may be especially beneficial to

firms operating in the service sector since members of these organizations are responsible for

5
delivering the service and for evaluations important constituents make about firms.

Organizations may derive the following benefits from developing strong and productive cultures:

Better aligning the company towards achieving its vision, mission, and goals

High employee motivation and loyalty

Increased team cohesiveness among the company's various departments and divisions

Promoting consistency and encouraging coordination and control within the company

Shaping employee behavior at work, enabling the organization to be more efficient

Where culture is strong, people do things because they believe it is the right thing to do, and

there is a risk of another phenomenon, groupthink. "Groupthink" was described by Irving Janis.

He defined it as "a quick and easy way to refer to a mode of thinking that people engage when

they are deeply involved in a cohesive in-group, when the members' strivings for unanimity

override their motivation to realistically appraise alternatives of action." (Irving Janis, 1972, p. 9)

This is a state in which even if they have different ideas, they do not challenge organizational

thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur, for

example, where there is heavy reliance on a central charismatic figure in the organization, or

where there is an evangelical belief in the organization's values, or also in groups where a

friendly climate is at the base of their identity (avoidance of conflict). In fact, groupthink is very

common and happens all the time, in almost every group. Members that are defiant are often

turned down or seen as a negative influence by the rest of the group because they bring conflict.

1.3. Characteristics of Organizational Culture

The seven characteristics of organizational culture are:

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1. Innovation (Risk Orientation) - Companies with cultures that place a high value on

innovation encourage their employees to take risks and innovate in the performance of

their jobs. Companies with cultures that place a low value on innovation expect their

employees to do their jobs the same way that they have been trained to do them, without

looking for ways to improve their performance.

2. Attention to Detail (Precision Orientation) - This characteristic of organizational culture

dictates the degree to which employees are expected to be accurate in their work. A

culture that places a high value on attention to detail expects their employees to perform

their work with precision. A culture that places a low value on this characteristic does

not.

3. Emphasis on Outcome (Achievement Orientation) - Companies that focus on results, but

not on how the results are achieved, place a high emphasis on this value of organizational

culture. A company that instructs its sales force to do whatever it takes to get sales orders

has a culture that places a high value on the emphasis on outcome characteristic.

4. Emphasis on People (Fairness Orientation) - Companies that place a high value on this

characteristic of organizational culture place a great deal of importance on how their

decisions will affect the people in their organizations. For these companies, it is

important to treat their employees with respect and dignity.

5. Teamwork (Collaboration Orientation) - Companies that organize work activities around

teams instead of individuals place a high value on this characteristic of organizational

7
 culture. People who work for these types of companies tend to have a positive

relationship with their coworkers and managers.

6. Aggressiveness (Competitive Orientation) - This characteristic of organizational culture

dictates whether group members are expected to be assertive or easygoing when dealing

with companies they compete with in the marketplace. Companies with an aggressive

culture place a high value on competitiveness and outperforming the competition at all

costs.

7. Stability (Rule Orientation) - A company whose culture places a high value on stability

are rule-oriented, predictable, and bureaucratic in nature. These types of companies

typically provide consistent and predictable levels of output and operate best in non-

changing market conditions.

The successful functioning of an organization depends on the effort put by each employee. Each

individual has to contribute his level best to accomplish the tasks within the desired time frame.

Every organization has a unique style of working which is often called its culture. The beliefs,

policies, principles, ideologies of an organization form its culture.

The culture of the organization is nothing but the outcome of the interaction among the

employees working for quite some time. The behaviour of the individual with his fellow workers

as well as external parties forms the culture. The management style of dealing with the

employees in its own way also contributes to the culture of the organization.

Employees working for a considerable amount of time in any particular organization tend to

make certain rules and follow some policies as per their convenience and mutual understanding.

8
Such policies and procedures practised by the employees for a long time to make the workplace a

happier place form the culture. The culture often gives the employees a sense of direction at the

workplace.

Organization culture however can never be constant. It changes with time.

Organization A was a well-known event management firm. Tom, Sandra, Peter and Jack

represented the management. All the four were in their mid-thirties and thus emphasized on

hiring young talent. No wonders this organization followed a youth culture. The employees were

aggressive, on their toes and eager to do something innovative always. The organization

followed a macho culture where the employees performing exceptionally well were appreciated

and rewarded suitably. Appraisals and promotions came in no time and feedbacks were quick.

The management also encouraged in formal get-togethers, dinners to bring the employees closer

and increase the comfort level.

After proving their mettle for quite some years, Tom, Sandra and Peter decided to move on for

better opportunities. Tim, Maria, Sara all in their fifties stepped into their shoes and took the

charge along with Jack, the only member left from the previous team. They did not somehow

approve the previous style of working. They brought their own people from their previous

organizations and thus caused problems for the existing employees. The management strongly

supported punctuality and did not quite promote parties; get-togethers at workplace. There were

no feedbacks or rewards. The employees lacked enthusiasm and never bothered to do something

innovative.

A change in the management changed the entire style of working.

9
Reasons for changes in work culture

A new management, a new team leader, a new boss brings a change in the

organization culture. A new employee but obvious would have new ideas, concepts and

try his level best to implement them. He would want the employees to work according to

him. His style of working, behaviour and ideologies would definitely bring a change in

the work culture.

Financial loss, bankruptcy, market fluctuations also lead to change in the work

culture of the organization. When an organization runs into losses, it fails to give

rewards and appraisals to the employees as it used to give earlier.

Acquiring new clients might cause a change in the work culture. The employees

might have to bring about a change in their style of working to meet the expectations of

the new clients.

The employees on their own might realize that they need to bring a change in their

attitude, perception and style of working to achieve the targets at a much faster rate. Such

self-realization also changes the work culture.

10
 CHAPTER -2

TYPES OF ORGANIZATIONAL CULTURE

Types of Organizational Culture

Every organization is different, and all of them have a unique culture to organize groups of

people. Yet few people know that every organization actually combines a mix of four different

types of organizational culture under one leading cultural style, according to research by business

professors Robert E. Quinn and Kim S. Cameron at the University of Michigan.

Quinn and Cameron developed the Organizational Culture Assessment Instrument (OCAI), a

validated survey method to assess current and preferred organizational cultures. The OCAI is

based on Quinn and Camerons Competing Values Framework Model, which has been used by

over 12,000 companies worldwide.

Fig 2.1 : Types of Organisational Culture
The framework explains how the four organizational cultures compete with one another. The

four parameters of the framework include internal focus and integration vs. external focus and

differentiation, and stability and control vs. flexibility and discretion. (See diagram at right.)

Based on these parameters, the framework breaks organizational cultures into four distinct

quadrants or cultural types: The Clan Culture, the Adhocracy Culture, the Market Culture, and

11
the Hierarchy Culture. Quinn and Cameron discovered that flexible organizations are more

successful than rigid ones because the best organizations are able to manage the competition

between cultures while activating each of the four value sets when needed.

To determine what type of organizational culture one belong to, here is a summary of the four

types and their specific qualities:

The Clan Culture: This culture is rooted in collaboration. Members share commonalities

and see themselves are part of one big family who are active and involved. Leadership

takes the form of mentorship, and the organization is bound by commitments and

traditions. The main values are rooted in teamwork, communication and consensus. A

prominent clan culture is Toms of Maine, the maker of all-natural hygiene products. To

build the brand, founder Tom Chappell focused on building respectful relationships with

employees, customers, suppliers and the environment itself.

The Adhocracy Culture: This culture is based on energy and creativity. Employees are

encouraged to take risks, and leaders are seen as innovators or entrepreneurs. The

organization is held together by experimentation, with an emphasis on individual

ingenuity and freedom. The core values are based on change and agility. Facebook can be

seen as a prototypical adhocracy organization, based on CEO Mark Zuckerbergs famous

admonition to, Move fast and break things unless you are breaking stuff, you are not

moving fast enough.

The Market Culture: This culture is built upon the dynamics of competition and

achieving concrete results. The focus is goal-oriented, with leaders who are tough and

demanding. The organization is united by a common goal to succeed and beat all rivals.

12
 The main value drivers are market share and profitability. General Electric under ex-CEO

Jack Welch is a good example of this culture. Welch vowed that every G.E. business unit

must rank first or second in its respective market or face being sold off. Another example

of the market culture is software giant Oracle under hard-driving Executive Chairman

Larry Ellison.

The Hierarchy Culture: This culture is founded on structure and control. The work

environment is formal, with strict institutional procedures in place for guidance.

Leadership is based on organized coordination and monitoring, with a culture

emphasizing efficiency and predictability. The values include consistency and

uniformity. Think of stereotypical large, bureaucratic organizations such as McDonalds,

the military, or the Department of Motor Vehicles.

The OCAI research reveals that its rare for companies to share equal traits from all four cultural

types, with no single dominant type. However, it is likely that departments within an

organization may exhibit subdominant traits, such as the accounting department having a mainly

Hierarchy/Control culture, while the development team is shaped by more of an

Adhocracy/Creativity culture.

Defining any one culture is difficult because it is based on a complex combination of peoples

shared attitudes, beliefs, assumptions and behaviors. Leaders can use the OCAI survey to gain

insights into the dominant culture of their organization, and to assess the gaps between their

current culture and the preferred culture.

13
One can only change a culture by first classifying it and understanding it. The OCAI and

Competing Values Framework can serve as powerful tools to make empirical comparisons of an

organizational culture before and after any major change initiative, reorganization, or merger.

Let us understand the various types of organization culture:

1. Normative Culture: In such a culture, the norms and procedures of the organization are

predefined and the rules and regulations are set as per the existing guidelines. The

employees behave in an ideal way and strictly adhere to the policies of the organization.

No employee dares to break the rules and sticks to the already laid policies.

2. Pragmatic Culture: In a pragmatic culture, more emphasis is placed on the clients and

the external parties. Customer satisfaction is the main motive of the employees in a

pragmatic culture. Such organizations treat their clients as Gods and do not follow any set

rules. Every employee strives hard to satisfy his clients to expect maximum business

from their side.

3. Academy Culture: Organizations following academy culture hire skilled individuals.

The roles and responsibilities are delegated according to the back ground, educational

qualification and work experience of the employees. Organizations following academy

culture are very particular about training the existing employees. They ensure that various

training programmes are being conducted at the workplace to hone the skills of the

employees. The management makes sincere efforts to upgrade the knowledge of the

employees to improve their professional competence. The employees in an academy

culture stick to the organization for a longer duration and also grow within it. Educational

institutions, universities, hospitals practice such a culture.

14
4. Baseball team Culture: A baseball team culture considers the employees as the most

treasured possession of the organization. The employees are the true assets of the

organization who have a major role in its successful functioning. In such a culture, the

individuals always have an upper edge and they do not bother much about their

organization. Advertising agencies, event management companies, financial institutions

follow such a culture.

5. Club Culture: Organizations following a club culture are very particular about the

employees they recruit. The individuals are hired as per their specialization, educational

qualification and interests. Each one does what he is best at. The high potential

employees are promoted suitably and appraisals are a regular feature of such a culture.

6. Fortress Culture: There are certain organizations where the employees are not very sure

about their career and longevity. Such organizations follow fortress culture. The

employees are terminated if the organization is not performing well. Individuals suffer

the most when the organization is at a loss. Stock broking industries follow such a

culture.

7. Tough Guy Culture: In a tough guy culture, feedbacks are essential. The performance of

the employees is reviewed from time to time and their work is thoroughly monitored.

Team managers are appointed to discuss queries with the team members and guide them

whenever required. The employees are under constant watch in such a culture.

8. Bet your company Culture: Organizations which follow bet your company culture take

decisions which involve a huge amount of risk and the consequences are also unforeseen.

The principles and policies of such an organization are formulated to address sensitive

issues and it takes time to get the results.

15
 9. Process Culture: As the name suggests the employees in such a culture adhere to the

processes and procedures of the organization. Feedbacks and performance reviews do not

matter much in such organizations. The employees abide by the rules and regulations and

work according to the ideologies of the workplace. All government organizations follow

such a culture.

Importance of Organization Culture

A common platform where individuals work in unison to earn profits as well as a livelihood for

themselves is called an organization. A place where individuals realize the dream of making it

big is called an organization. Every organization has its unique style of working which often

contributes to its culture. The beliefs, ideologies, principles and values of an organization form

its culture. The culture of the workplace controls the way employees behave amongst themselves

as well as with people outside the organization.

The culture decides the way employees interact at their workplace. A healthy culture

encourages the employees to stay motivated and loyal towards the management.

The culture of the workplace also goes a long way in promoting healthy competition

at the workplace. Employees try their level best to perform better than their fellow

workers and earn recognition and appreciation of the superiors. It is the culture of the

workplace which actually motivates the employees to perform.

Every organization must have set guidelines for the employees to work accordingly. The

culture of an organization represents certain predefined policies which guide the

employees and give them a sense of direction at the workplace. Every individual is

16
 clear about his roles and responsibilities in the organization and know how to accomplish

the tasks ahead of the deadlines.

No two organizations can have the same work culture. It is the culture of an organization

which makes it distinct from others. The work culture goes a long way in creating the

brand image of the organization. The work culture gives an identity to the organization.

In other words, an organization is known by its culture.

The organization culture brings all the employees on a common platform. The

employees must be treated equally and no one should feel neglected or left out at the

workplace. It is essential for the employees to adjust well in the organization culture for

them to deliver their level best.

The work culture unites the employees who are otherwise from different back

grounds, families and have varied attitudes and mentalities. The culture gives the

employees a sense of unity at the workplace.

Certain organizations follow a culture where all the employees irrespective of their

designations have to step into the office on time. Such a culture encourages the

employees to be punctual which eventually benefits them in the long run. It is the culture

of the organization which makes the individuals a successful professional.

Every employee is clear with his roles and responsibilities and strives hard to accomplish

the tasks within the desired time frame as per the set guidelines. Implementation of

policies is never a problem in organizations where people follow a set culture. The new

employees also try their level best to understand the work culture and make the

organization a better place to work.

17
 The work culture promotes healthy relationship amongst the employees. No one

treats work as a burden and moulds himself according to the culture.

It is the culture of the organization which extracts the best out of each team

member. In a culture where management is very particular about the reporting system,

the employees however busy they are would send their reports by end of the day. No one

has to force anyone to work. The culture develops a habit in the individuals which makes

them successful at the workplace.

Factors Affecting Organization Culture

Culture represents the beliefs, ideologies, policies, practices of an organization. It gives the

employees a sense of direction and also controls the way they behave with each other. The work

culture brings all the employees on a common platform and unites them at the workplace.

There are several factors which affect the organization culture:

The first and the foremost factor affecting culture is the individual working with the

organization. The employees in their own way contribute to the culture of the

workplace. The attitudes, mentalities, interests, perception and even the thought process

of the employees affect the organization culture.

Example - Organizations which hire individuals from army or defence background tend

to follow a strict culture where all the employees abide by the set guidelines and policies.

The employees are hardly late to work. It is the mindset of the employees which forms

the culture of the place. Organizations with majority of youngsters encourage healthy

18
 competition at the workplace and employees are always on the toes to perform better than

the fellow workers.

The sex of the employee also affects the organization culture. Organizations where male

employees dominate the female counterparts follow a culture where late sitting is a

normal feature. The male employees are more aggressive than the females who instead

would be caring and softhearted.

The nature of the business also affects the culture of the organization. Stock broking

industries, financial services, banking industry are all dependent on external factors like

demand and supply, market cap, earning per share and so on. When the market crashes,

these industries have no other option than to terminate the employees and eventually

affect the culture of the place. Market fluctuations lead to unrest, tensions and severely

demotivate the individuals. The management also feels helpless when circumstances can

be controlled by none. Individuals are unsure about their career as well as growth in such

organizations.

The culture of the organization is also affected by its goals and objectives. The

strategies and procedures designed to achieve the targets of the organization also

contribute to its culture.

Individuals working with government organizations adhere to the set guidelines but do

not follow a procedure of feedback thus forming its culture. Fast paced industries like

advertising, event management companies expect the employees to be attentive,

aggressive and hyper active.

19
 The clients and the external parties to some extent also affect the work culture of the

place. Organizations catering to UK and US Clients have no other option but to work in

shifts to match their timings, thus forming the culture.

The management and its style of handling the employees also affect the culture of the

workplace. There are certain organizations where the management allows the employees

to take their own decisions and let them participate in strategy making. In such a culture,

employees get attached to their management and look forward to a long term association

with the organization. The management must respect the employees to avoid a culture

where the employees just work for money and nothing else. They treat the organization

as a mere source of earning money and look for a change in a short span of time.

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 CHAPTER-3

ABOUT EICHER MOTORS

Eicher Motors Limited (EML) (BSE: 505200, NSE: EICHERMOT) incorporated in 1982, is an

Indian automaker company based in Gurgaon, India. Eicher owns Royal Enfield.

Fig 3.1 : Eicher Motors Limited

Eicher Motors Limited (EML) is the flagship company of the Eicher Group, which was a catalyst

in the green revolution in India with the production of Indias first agricultural tractor in 1959.

EML is now a leading player in the Indian automotive space. Eicher Motors owns the iconic

Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. The

oldest motorcycle brand in continuous production world-wide, Royal Enfield has witnessed a

huge surge in demand in the recent past, and is charting its course to be the leading player in the

mid-sized motorcycle segment globally. EMLs joint venture with the Volvo group, VE

21
Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient trucks

and buses; and is leading the path in driving modernization in commercial transportation in India

and other developing markets. EMLs joint venture with US based Polaris Industries Inc formed

in 2012, EPPL launched the Multix, a new 3-in-1 vehicle purpose built for the independent

businessman in June 2015. For the fifteen months ended March 2016, Eicher Motors recorded its

highest ever total income of INR 15,689 crores (USD 2.4 billion) and is listed on the Bombay

and National Stock Exchanges. As of April 1st 2016, Eicher Motors Limited became a part of the

Nifty 50 Index.

3.1. History

Fig 3.2 Eicher Truck in Mysore

Eicher Motors is a commercial vehicle manufacturer in India. The company's origins date back

to 1948, when Goodearth Company was established for the distribution and service of imported

tractors. In 1959 the Eicher Tractor Corporation of India Private Ltd was established, jointly with

the Eicher tractor company, a German tractor manufacturer. Since 1965 Eicher in India has been

22
completely owned by Indian shareholders. The German Eicher tractor was partly owned by

Massey-Ferguson from 1970, when they bought 30%. Massey-Ferguson bought out the German

company in 1973.

In 2005 Eicher Motors Ltd sold their tractors and engines business to TAFE Tractors (Tractors

and Farm Equipment Ltd) of Chennai, the Indian licensee of Massey Ferguson tractors.

In October 1982 a collaboration agreement with Mitsubishi for the manufacture of LCVs was

signed in Tokyo and in the same period the incorporation of Eicher Motors Limited also took

place. LCVs were sold under the "Eicher Mitsubishi" brand. In February 1990, Eicher Goodearth

bought 26% stake in Enfield India Ltd and by 1993 Eicher acquired a majority stake (60% equity

shareholding) in Royal Enfield India.

In July 2008, EML and Volvo Group's 50:50 joint venture VECV designs, manufactures and

markets commercial vehicles, engineering components and provides engineering design.

Fig 3.3: An Eicher Multi-Axle lorry

At present, Volvo Group owns 45.6% of VECV.

23
 3.2. Milestones

A journey, spanning over five decades, Eicher has come a long way. These rewarding times saw

the company grow, diversify, acquire, amalgamate, consolidate and expand; winning hearts and

trust of clients, dealers/distributors and shareholders alike.

The path pursued has been illuminated with landmarks and milestones, which stand as an edifice

saluting our achievements. These milestones can be divided into 3 phases.

3.2.1. Initial Phase

1948

Goodearth Company set up to sell and service imported tractors

1952-57

Goodearth Company imported and sold about 1500 tractors in India

1958

Eicher Tractor Corporation of India Ltd. incorporated

1959

First indigenous Eicher tractor built

1959

Eicher came out with India's first indigenously built tractor from its Faridabad factory

1960

Eicher changed name from Eicher Tractor Corporation of India Pvt. Ltd. to Eicher Tractors India

Ltd.

1965-75

100% indigenization achieved in Eicher Tractors

24
 3.2.2. Mid Journey

1980

Eicher Goodearth Ltd. name given to Eicher

1982

Collaboration agreement with Mitsubishi for the manufacture of Light Commercial Vehicles

signed in Tokyo

1982

Incorporation of Eicher Motors Ltd.

1985

Silver Jubilee Year for Eicher

1986

Eicher Motors Ltd. springs into operation

1987

Eicher Tractors went public

3.2.3. More Recent

1990

Eicher Goodearth buys 26% equity stake in Enfield India Ltd.

1991

ECS launched; Eicher takes over Ramon & Demm

1992

Eicher Tractors Ltd. selected as 'Company of the Year' for 1990-91 in the four-wheeler category

comprising commercial vehicles, passenger cars, jeeps and tractors

1993

25
Eicher adopts new identifier

1993

Eicher acquires majority stake in Enfield India (60% equity shareholding)

1994

Eicher Motors Ltd. ends the technical assistance agreement with Mitsubishi after a successful

transfer of technology and achieving total indigenisation

1994

Enfield India Ltd. changed its name to Royal Enfield Motors Ltd.

1995

Eicher City Map - Delhi launched

1996

Eicher Tractors Ltd. amalgamated with Royal Enfield Motors to form Eicher Ltd.

2005

Eicher Motors Ltd. has disinvested the businesses of tractors and engines to TAFE Motors &

Tractors Ltd. (TMTL)

2008

Volvo Group and Eicher Motors Ltd. Established VECV.

2010

The company launched the VE-series of Heavy Duty trucks

2012

Royal Enfield launches the Thunderbird 500 and 350 models.

2013

26
Royal Enfield opens second manufacturing facility in Oragadam, Tamil Nadu. In September

2013, Royal Enfield globally launches the Continental GT 535cc caf racer in London, UK.

2014

Royal Enfield opens its first concept store in Saket, New Delhi and launches its first exclusive

store in London, UK.

3.3. Group structure

The Eicher Group has diversified business interests in design and development, manufacturing,

and local and international marketing of trucks, buses, motorcycles, automotive gears, and

components. Eicher has invested in the potential growth areas of management consultancy

services, customised engineering, and maps and travel guides.

VECV Limited is a joint venture between Volvo Group and Eicher Motors Limited (EML).

VECV is divided into five business units:

Eicher Trucks and Buses

Volvo Trucks India

Eicher Engineering Components

VE Powertrain

Royal Enfield Motors, the motorcycle manufacturing subsidiary, is a part of Eicher Motors.

27
 3.4. ROYAL ENFIELD

Fig 3.4 Royal Enfield

The oldest motorcycle company in continuous production, Royal Enfield made its first

motorcycle in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-size

motorcycle segment in India with its unique and distinctive modern classic bikes. With its

enhanced manufacturing base in Chennai, India, Royal Enfield is able to grow its production

rapidly against a surge in demand for its motorcycles. With 50% growth every year for the last 3

years, Royal Enfield is fast becoming a very important player in the global mid-size motorcycle

market and is working towards re-inventing this space with motorcycles that are evocative and

engaging and great fun to ride. Royal Enfields product lineup includes the Bullet, Classic and

Thunderbird models in both 350 and 500cc displacements; and the recently introduced

Continental GT 535cc caf racer. Royal Enfield operates through 12 company-operated stores

and 380 dealers in all major cities and towns in India, and exports to over 50 countries across the

world including the USA, Japan, UK, several European and Latin American countries, as well as

the Middle East and South Asia. Royal Enfield also organizes and supports many motorcycling

events and rides , more prominently the Rider Mania an annual gathering of Royal Enfield

riders from all over India to the lovely beaches of Goa, and the Himalayan Odyssey, the most

arduous motorcycle ride over some of the toughest roads and highest mountain passes in the

28
Himalayas. Royal Enfield also conducts the popular One Ride where people around the world

ride out on their motorcycles on the first Sunday of April.

Learn more at royalenfield.com

3.5. VE Commercial Vehicles Ltd.

Fig 3.5 : VE Commercial Vehicles Ltd.

VECV is a joint venture between the Volvo Group and Eicher Motors Limited. In operation

since July 2008, the company includes the complete range of Eicher branded trucks and buses,

VE Powertrain, Eichers components and engineering design services businesses, the sales and

distribution business of Volvo Trucks as well as aftermarket support to Volvo Buses in India.

VECVs vision is to be recognized as the industry leader driving modernization in commercial

transportation in India and the developing world.

3.6. EICHER POLARIS PVT LTD

In 2012, Eicher Motors Limited signed a strategic joint venture agreement with US based Polaris

Industries Inc., to design, develop, manufacture and sell a full new range of personal vehicles

suitable for India and other emerging markets. The JV will allow Eicher Motors Ltd. to enter into

a new vehicle segment. In 2013, the JV company- EPPL, set up its manufacturing facility in

29
Jaipur, Rajasthan. The project is now in its advanced stages of development and production of

the four- wheeled personal vehicle is scheduled to begin in the second half of 2015.

3.7. Our Business

Eicher Motors Limited (EML) is the flagship company of the Eicher Group, which was a catalyst

in the green revolution in India with the production of Indias first agricultural tractor in 1959.

EML is now a leading player in the Indian automotive space. It owns the iconic Royal Enfield

motorcycle business, which leads the premium motorcycle segment in India. The oldest

motorcycle company in continuous production world-wide, Royal Enfield has witnessed a huge

surge in demand in the recent past, and is charting its course to be the leading player in the mid-

size motorcycle segment globally. EMLs joint venture with the Volvo group, VE Commercial

Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient trucks and buses;

and is leading the path in driving modernization in commercial transportation in India and other

developing markets. EMLs 50:50 strategic joint venture with US based Polaris Industries Inc.,

Eicher Polaris Private Ltd. is in start-up phase, and is currently designing and developing, and

will soon manufacture and sell a full new range of personal vehicles. In 2014, Eicher Motors

recorded its highest ever total income of INR 8738 crores (USD 1.4 billion) and is listed on the

Bombay and National Stock Exchanges.

30
 CHAPTER -4

IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE

SATISFACTION

Organizational culture provides a framework with respect to the behavior of employees in their

workplace. Depending on the type of culture that is created in an organization, it can have a

positive or negative effect on employee performance. Lets look at a few organizational

situations that result in either positive or negative employee performance.

An organizational culture where employees are considered an integral part of the growth process

of the organization fosters employee commitment towards the organization. They align their

goals and objectives with those of the organization and feel responsible for the overall well-being

of the organization. As their efforts are in turn appreciated by the management and suitably

rewarded, they have immense job satisfaction. In such organizational cultures, the employees are

committed to achieving their goals and thus have a positive effect on the overall performance of

the organization.

In organizations where managers are not facilitators but taskmasters,employees live with fear

and distrust and work is nothing but a dreary chore. Since they are not involved in the overall

organizational goals, they do not understand the implications of their tasks and hence may not be

committed to achieving them. An organization where there is no cooperation between different

departments ends up having employees working in silos or working towards undermining the

efforts of the other departments which is detrimental to the overall health of the organization.

31
Organizational culture to a large extent determines the performance of the employees. Therefore,

it is in the interest of organizations to eliminate negative factors that slow down employee

performance in order to foster a positive workplace environment or a positive organizational

culture.

Foundation set up by the Eicher Group of companies to implement its mission: "To educate

India's children with a special emphasis on the girl child starting with primary education for the

rural poor."

This mission statement emerged from the deep desire among Founder members of the company

to contribute to efforts in the field of education, which they believe is a key area for facilitating

change and progress in India.

The work of the Foundation has, as its focus, interventions for improvement in quality of

education initially in the government primary schools in rural areas.

Work started in 1996 by providing support to an initiative based in Rai Bareilly district in U.P.

This project covered 63 schools and has Goodearth Education Foundation benefited about

15,000 children over a period of 4 years. In 1998, further efforts were initiated in Thane district

(Maharashtra), Alwar district (Rajasthan) and Solan district (Himachal Pradesh) where in the

first phase they are covering a total of approximately 90 schools and 9,000 children.

32
Organizational culture has been received extraordinary attention ever since the concept was

proposed by American scholars in 1980s. By contrast with the management practice in Japanese

companies, the concept of organizational culture was proposed and related theories were

developed. The academia and managerial practitioners have reached the consensus that

organizational culture is the core competency for an organization. It will impact effectiveness or

performance of the individuals, the groups and the whole organization. Employee satisfaction

reflects the psychological state of the individuals working in an organization. Although it is

implicit, it will obviously impact the employees performance. Organizational culture can have

an influence on employee satisfaction. The relationship between them should be clarified in

order to provide managerial practitioners with more meaningful guidance to their practices. With

the development of Chinese economy, the managerial problems of specific situations in China

are attracting much more concerns. Under the case study of a Chinese family firm, this paper

attempts to quantitatively describe organizational culture and employee satisfaction, and further

to empirically explore the relationship between them.

33
 IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE SATISFACTION IN

EICHER MOTORS

The study brings out the behavioural aspect of the employees working in Eicher Motors Ltd. The

main objective of the study is to find the overall performance of the employees. The study is

descriptive research with the sample of 100 employees working in Eicher Motors Ltd. Data was

collected by survey method through structured questionnaire with close ended questions. The

primary data was obtained through questionnaire and secondary data from the company records

and websites. The purpose of the survey process is to provide a more accurate assessment of the

existing culture from the employees point-of-view and also to assess their behaviours with

respect to that of the existing culture. The culture of an organization consists of the values and

beliefs of the people in an organisation. The organisational culture usually has values and beliefs

that support the organisational goals. Organizational culture has an impact on employees

satisfaction. The analysis was done through simple percentage analysis and weighted average

method. From the analysis it was found that the employees were satisfied with their interpersonal

relationships, co-ordination and integration between various departments of the organization, and

also the rewards & incentives given by their management. But the management has to provide

more practical sessions in training programmes to improve their performance in their respective

fields. Such training programmes will help them to enhance their knowledge in the respective

fields.

34
 CHAPTER -5

CONCLUSION

This research makes an empirical study of organizational culture and explores the relationship

between organizational culture and employee satisfaction under the specific situation of a

Chinese family-owned firm. Since only specific relationships between organizational culture and

employee satisfaction were found, the research results are not ready to be generalized or reach a

general conclusion. But as the previous part of discussions explained, it can still provide a way to

empirically diagnose organizational culture and to make some suggestions for managers to

improve effectiveness by changing organizational culture. Besides, this paper uses employee

satisfaction as an indicator of effectiveness, and it is viable to employ other indicators such as

organizational commitment and psychological empowerment. These psychological indicators are

more important for management of employees in the knowledge-based economies.

This research has some limitations and future work can be done. Although after having a two-

days visit to this investigated firm and had some informal talks with some employees, this

research was conducted mostly in a quantitative way. It will be better to continue some

qualitative research and make comparison between qualitative and quantitative results. A second

limitation is the cross section study. It is meaningful to take a longitudinal study and can thus

explore some dynamic features of organizational culture and its relationship with effectiveness.

A third limitation comes from the sample size of survey data. It can provide more evidence to

investigate firms across industries and geographies. Finally, concerning more about individual

personalities such as gender, age and education can possibly provide fruitful results to support

managerial decisions on human resource management.

35
 CHAPTER -6

SUGGESTIONS & RECOMMENDATIONS

Here below, I talk about 8 ways one can apply on a daily basis to improve our corporate

culture and enhance our employees happiness at work.

1. Create a fun corporate culture environment.

Innovation is about practical creativity its about making new ideas useful. Max Mckeown

Make the employees feel that theyre playing while working. Holding sports, family days,

charitable activities to company outings takes off some stress from the employees. ZinePak for

example, grant half-day Fridays and holds charitable activities on working days from time to

time.

2. Live your mission.

Others have seen what is and ask why. I have seen what could be and asked why not. Pablo

Picasso

Embody what ones company stand for and show his/her employees that he/she is transparent

and working with integrity as a leader. If he/she is just starting out, he should get the employees

involved in drawing out the company mission.

3. Foster effective communication.

Genuine collaboration is an environment that promotes communication, learning, maximum

contribution, and innovation. Jane Ripley

36
Communication opens the line to suggestions and criticisms and involves important stakeholders

in decision-making. Call center protector Olivette Whipple encouraged her employees to design

their workplace. Engaging employees even to trivial matters such as wall color options to larger

issues not only give them the voice but also makes them feel their ideas are valuable too.

4. Celebrate victories.

Its easy to attack and destroy an act of creation. Its a lot more difficult to perform one. Chuck

Palahniuk

Recognize the efforts that employees put into their jobs. Whether closing a deal or getting the top

rating, take a break and celebrate even in small ways. Give the top-performing a day off, get a

cake and champagne or give him a congratulatory note, whichever way, emphasize how his

achievement is the companys achievement as well.

5. Offer variety.

Creativity arises from our ability to see things from many different angles Keri Smith

Give the employees the choice of working on different assignment or schedule to enhance

productivity. While it is generally believed that working on a task one is more familiar with

breeds productivity, the monotony will soon wear him out. Some companies do so by trusting

their employees to work on schedules they are most productive.

6. Get everyone involved.

Our ancestors have invented, we can at least innovate Amit Kalantri

37
While the need for upper management is necessary to direct the company in achieving common

goals, it is also necessary to inform and involve the employees in critical decisions. A CEO may

opt to lay-out some employees, drastically changes suppliers or make unannounced decisions

that will affect the organization in all levels, but he or she will build resentment among the

organization.

7. Be transparent.

We have to continually be jumping off cliffs and developing our wings on the way down

Kurt Vannegut

Transparency eliminates the need to question the intention of the leaders in the organization, thus

builds trust and loyalty. If one let employees see how he/she spend the company money on a

business trip, they will likely trust him/her more. Some organizations allow employees to see the

companys financial statement anytime they wish. This leads employees to see where the

company is going and how to get there.

8. Be supportive of employees goals.

I am my own experiment. I am my own work of art. Madonna

Get to know the employees a little at a more intimate level and encourage them in their dreams.

Giving them support through small talks, advice and sharing experiences can significantly

increase employee loyalty and productivity.

38
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https://creativecorporateculture.com/improving-corporate-culture-in-10-great-ways/

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_on_Job_Satisfaction_A_Study_on_Banglalion_Communication_Ltd_Bangladesh

http://www.emeraldinsight.com/doi/abs/10.1108/03055721211207752

http://www.ijtef.org/papers/259-F605.pdf

https://en.wikipedia.org/wiki/Organizational_culture

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binaries/51263_Alvesson%2C_Understanding_Org_Culture.pdf

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