Litreture Review 2

Embed Size (px)

Citation preview

AUTHORS DELCARATION

I declare that the work in this dissertation was carried out in accordance with the Regulations of Glyndwr University. The work is original except where indicated by special reference in the text and no part of the dissertation has been submitted for any other degree. Any views expressed in the dissertation are those of the author and in no way represent those of Glyndwr University. This dissertation has not been presented to any other university for examination either in the United Kingdom or overseas. This dissertation is being submitted in partial fulfilment of the requirements for the degree of MBA. I hereby give consent for my dissertation, to be available for photocopying and for inter-library loan, and for the title and summary to be made available to outside organizations.

SIGNED: ............................ PRINTNAME: Shabir Ahmad Wani DATE: ............................. STUDENT NUMBER : S09002737.

Email: [email protected]

1

Impact Of Organisational Culture On Employee Motivation: A case study on Jammu & Kashmir Bank Ltd.

By:Shabir Ahmad Wani (S09002737)

A dissertation submitted to Glyndr University in accordance with the requirements of the degree of Master of Business Administration

January, 2011

Word count: 215272

Abstract The aim of this study was to investigate the impact of organizational culture on employee motivation. The domains of organizational culture (organizational values, individual beliefs, working environment, and employee relationships) and the employee motivation were investigated by the researcher in this study. In order to find the culture-motivation link, mixed method approach for data collection has been used to collect data required to complete this study. The researcher, by the help of Pearsons and Spearmans Correlation methods has been able to find a positive correlation between the two. The results of this study were that organizational culture has its impact on employee motivation and indirectly on the organizational performance as well. The better the organizational culture higher will be the motivational level of employees.

3

Chapter 1: Introduction([email protected]) 1.1introduction In this contemporary corporate world, every organisation aims to get the best possible performance from its employees. Human Resource Management is one of the important assets of an organisation as it deals with the people working over there (Griffin, 2007). By implementing suitable motivational policies and principles, HRM buys the commitment of employees. In order to achieve the organisational goals, employees of that very organisation need to be motivated properly to get the optimum results out of them. The topic of this research is Impact of Organisational Culture on Employee Motivation of Jammu and Kashmir bank ltd. (Brown, 1998) states that there is an essentially important link between organisational culture and motivational factors and thus both of them are responsible for the performance level of an organisation. Brown further described motivation as an important element to be present for better performance of an organisation. 1.2 Company Overview

J&K bank has been founded before the independence of India in 1938. The Bank is owned partly by government and partly by private sector. After the partition of India in 1947, the state of Jammu and Kashmir emerged as a disputed territory between India and Pakistan. Those circumstances hit the functioning of the bank as some of its major branches were in the regions that were occupied by Pakistan. The J&K bank along with the other organisations in the state suffered since the partition because of the political disturbance and the wars fought between India and Pakistan over the issue of Kashmir. According to Business India (vol: 642-647), the bank is currently in a developing stage with over 500 branches all over India, most of which are in Jammu & Kashmir. The bank employs over 7000 employees in whole. The Bank is also a member of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Besides the basic function like lending and accepting the deposits of money from people, the Bank has also made its ties with MET Life India insurance and Bajaj Allianz insurance Co. Ltd. Because of its semi-government ownership, the bank helps its customers to accrue tax benefits by offering desired investing schemes. In its annual reports 2006-2007, the J&K bank reiterates its commitment to making the bank a model employer and ensuring that the bank provides a work place, work culture, and work environment that engages the intellectual and emotional commitment of all employees 4

(Kazmi, 2008). As per the survey conducted in 2007, employees were not generally happy with the work culture and the developmental climate; they were dissatisfied with the reward system. Most of the employees felt that creativity was discouraged and complained that senior managers adopted a secretive attitude. In addition, it was felt that the bank adopts a reactive culture, there was a lack of autonomy, inadequate training and career planning, and computerisation was introduced haphazardly. Whole of the survey resulted in the conclusion that the HR climate was not motivating (Kazmi, A 2008). 1.3 Background

According to Ricky (2007), culture is an important part of internal environment of an organisation. Organisational culture is the set of values, beliefs, behaviours, customs, and attitudes that helps the members of the organisation understand what it stands for, how it does things, and what it considers important. In 1997, Hofstede while researching on organisational culture stated that culture of organisations is the collective programming of mind that distinguishes the members of one organisation from another. According to Hofstede, organisational cultures are different from that of national culture. Unlike national cultures, people are conscious of organisational cultures and they learn this culture later in their life at workplace (cited from Hofstede, 2005). Schneider (2004) proposed that an organisations culture establishes the rules within which people act in addition to the ways and methods in which people communicate. Through an understanding of group culture, employees know exactly what is required of them in any given situation (Deal and Kennedy, 2000) and it also replaces the need to enforce rigid procedures or control mechanisms through rigorously explicit supervision because it functions as an internal control mechanism that coordinates employee efforts (Lee-Ross and Lashley, 2003). As culture is the way things are done within a group it sets priorities and expectations, enabling people to learn and understand what is important, subsequently identifying those actions that lead to punishment and those that lead to reward. Besides, Brown, 1998 stated that there is a link between culture and motivational factors which are essential for the organisations performance. As per Schein (2009), it is tempting to emphasize the significance of corporate cultures for performance, growth, and success. In the beginning of 1980s, books identifying the characteristics of excellent companies in USA (Peters and Waterman, 1982) and the secrets

5

behind the at the time successful Japanese companies (e.g. Ouchi 1981), highlighted organisational culture. According to Boddy 2002, many organisations have been seen emerging with great success while achieving the organisational goals, then after a few years, these organisations fail to demonstrate consistency in performance and hence fail to produce goods and services in the way they used to. Boddy blames organisational culture for such outcome. According to him, organisational culture has an important and direct influence on behaviour of the people of an organisation. He believes that organisation culture can either encourage an employee to give out his best for the sake of organisational goals or it can discourage or demoralize people and can be dangerous for the performance of the organisation. Geert Hofstede started researching on national culture in 1970s and later he researched on organisational culture (Hofstede, 2005). In his primary research, he found that national culture is revealed in several ways. He described these ways as symbols and these are; Heroes, Rituals, and Values. 1.4 Research question

Critically examine and analyse the impact of organisational culture on employee motivation. 1.5 Aims and objective

Is organisational culture strong enough to motivate or de-motivate employees? Analyze the impact of organisational culture on company performance.

1.6 Justification of the topic

Alvesson, M (2002), describes organisational culture as an issue in management practise, organisation theory, and in academic research as well. He has stated many reasons for this: the cultural dimensions are central in all aspects of organisational life. Even in those organisations where cultural issues receive little explicit attention, how people think, feel, value and act are guided by ideas, meaning and beliefs of a cultural nature. Whether managers think that culture is too soft or too complicated to bother about, or whether there is no unique corporate culture, does not reduce the significance of culture. Senior organisational members are always, in one way or another managing culture. Culture is as significant and complex as it is difficult to understand and use it in a thoughtful way. Even in this contemporary business world, there is often a lack of deeper understanding of how 6

people and organisations function in terms of culture so as to achieve the organisational goals. Davenport and Prusak (2000) suggest that culture is highly significant for how companies and other organisations function: from strategic change to everyday leadership and how managers and employees relate to and interact with customers as well as to how knowledge is created, shared, maintained, and utilized. 1.7 Research limitations According to Gray et al (2007), research by its nature is limited to a range of either individual or group behaviour. Secondly, a research is not capable of generating a broad range of data about the characteristics of large populations. Patton (2000) argues that no research is perfect, there are always limitations. Moreover, this research has many limitations: Researcher had limited time to conduct this research due to time constraint. Sample size is not too large which makes research limited to few thoughts. Research was conducted on particular branches which restricts researcher to cover a broader area. 1.8 Dissertation structure This research will be based on six chapters. In chapter one, author has presented the background and introduction, research question, aims and objectives and the justification of the topic. Chapter two is literature review, which identifies and discusses some relevant literature that is already available on the subject matter. This chapter is to establish a solid background of information required to complete the research area. Third chapter is research methodology which describes how the research was conducted on the basis of questionnaires and interviews etc. There will be a detailed explanation of the usage of these methods. Chapter four will be based on summary of the results obtained from the research methodology. By analysing data, it will be possible to present the findings of the research. In chapter five, author will draw a suitable conclusion from the findings and relate them to the primary objectives in order to determine whether the research has met its objectives. Chapter six will be based on the number of suitable and realistic recommendations given to the organisation, on methods to improve the organisational culture to achieve a totally motivated team of employees.

7

Chapter 2: Literature Review2.1 introduction This part of the research is very essential and is regarded as the back bone for this dissertation. This will help in the establishment of solid background that is essential to investigate the impact of organisational culture on employee motivation. Different school of thoughts would be reviewed to understand the core concept about the topic. Relevant theories and models will be discussed and analysed in order to provide an insight to what is already known on the subject matter. 2.2 Organisational culture A glance at just a few works that use the term organisational culture reveal enormous variation in the definitions of this term and even more in the use of the term culture. Culture has no fixed or broadly agreed meaning even in anthropology (Junge, 2008), but variations in its use is especially noticeable in the literature on organisational culture. The broad variations of scientific disciplines and research orientations involved in organisational culture studies makes the field very heterogeneous. The concept of culture seems to lend itself to very different uses as collectively shared forms for example, ideas and cognition, symbols and meanings, values and ideologies, rules and norms, emotions and expressiveness, as the collective unconscious, as behaviour patterns, structures and practices etc. (Alvesson 2002). Moving on to the other definition, talking about organisational culture seems to mean talking about the importance of people of symbolismof rituals, myths, stories, and legends, and about interpretations of events, ideas, and experiences that are influenced and shaped by the groups within which they live. Organisational culture has an important role in the understanding of organisational behaviour (Alvesson, 2002; p3). However, Robbins (2006) described culture as a descriptive term, in that it is concerned with how employees perceive the characteristics of an organisations culture, not with whether or not they like them. Research on organisation seeks to measure how employees see their organisation. He further backed the definition of Alvesson (2002) and explained that organisational culture refers to a system of shared meaning held by members of an organisation, distinguishing the organisation from other organisations. This system of shared meanings is, upon closer examination, a set of key characteristics that the organisation values. According to Kumar (2001) and Robbins (2006), research suggested seven characteristics that, in aggregate, capture the essence of organisational culture. These are as follows:-

8

2.3 Characteristics of organisational Culture

Innovation and risk taking: the degree to which employees in an organisation are encouraged to be innovative and risk taking. Attention to detail: the degree to which employees are expected to exhibit precision, analysis, and attention to detail or task. Outcome orientation: the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes.

People orientation: the degree to which management decisions take into consideration the effect of outcomes on people within the organisation.

Team orientation: the degree to which work activities are organised around teams rather than individuals. Aggressiveness: the degree to which the people are aggressive and competitive regarding their work rather than easy going. Stability: the degree to which organisational activities emphasise maintaining the status quo in contrast to growth.

2.4 Organisational culture guiding employee behaviours Culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviours of employees (Kumar, N 2001). Culture by definition is elusive, implicit, and taken for granted. But every organisation develops a core set of understandings, assumptions, and implicit rules that govern day-today behaviour at work place. Until new comers learn the rules, they are not accepted as full-fledged members of the organisation. Transgressions of the rules on the part of high level executives or front line employees result in universal disapproval and powerful penalties (Jex, S 2002). The role of organisational culture in influencing employee behaviour appears to be increasingly important since last two decades. As organisations have widened spans of control, flattened structures, introduced teams, reduced formalisation, and empowered employees, the shared meaning provided by a strong culture ensures that everyone is pointed in the same direction (Borowsky 1994). Organisational culture is responsible for creating the high level of commitment and performance as per suggested by the results of the global research (Martin 2000). Organisational culture is directly proportional to the performance of the organisation. 9

Organisational culture is a significant tool for the managers to create a desired enthusiasm among the employees for the betterment of the organisational outcome. In this case, Brown (1998) suggests that managers and employees do not behave in a value free vacuum. They are governed, directed, and tempered by the organisations culture. This research will go through approaches of different dimensions of culture like gender, religion, and ethnicity in order to investigate the impact of organisations culture on employee motivation, resulting in the better performance of the organisation. There is no universal culture that could be adopted by the organisations. So, every organisation comes up with its own unique culture consisting of gender, religion, ethnicity, leadership style, communication methods and etc Wilson et al (2005). Gender is one of the significant factors having its impact on employee behaviour. There have been many cases found where men are being provided higher and better positions than women. According to Wilson et al (2005), although there are organisations who claim to be providing equal rights for both genders, but they fail to put that in practise. According to Schoenberger (1997), if the women are not given proper recognition and suitable promotion, it can cause lack of job satisfaction and resentment towards their job resulting in a big loss to an organisation. In order to get the best out of them, organisations need to reward women in the same way as they reward men. We live in a multi-cultural society and ethnical differences are too much apparent and should be accepted by the people of different ethnical backgrounds. However, Martin (2000) gave stress on ethnicity by mentioning it as a big issue for the organisations. Good communication is regarded as one of the significant factors to be present in an organisation so as to achieve the desired goals in an effective manner. Moorhead and Griffin (1995), however, stated that managers, nowadays, often fail to deliver the message to employees in a clear and precise manner. Poor communication will result in a disturbed and poor organisational behaviour and employees present there would be left in a confused environment where goals, tasks, and objectives are unclear. Hienigan (2002) stated that poor communication results in an unstable working environment and can become a cause for employee de-motivation. One of the important dimensions of culture is leadership. According to Schein (1992), there is no best style of leadership. What may work effectively in one company, may not work in other. Leadership is the heart and soul of an organisational culture. The type of leadership style management wishes to use will effect an organisation either positively or negatively. According to McNeil (2007), an effective leadership should take into consideration the all the 10

factors leading to the positive influence on employee behaviour. These include the factors leading to the motivation by providing training, offering incentives, providing promotion and recognition to the employees. These kinds of approaches would obviously make employees work harder for the success of the organisation. Dominant culture expresses the core values that are shared by the majority of the organisations members. According to Jain (2005), strong cultures have a great impact on employee behaviour and are more directly related to the reduced turnover. It is because of the strength of the culture that the core values of organisation are intensely held and widely shared. The more the members accepting the core values, the more they turn committed to those values.

2.5 Aspects of culture Definitions of culture abound in the literature and the elements of culture have been widely analysed and discussed. This research takes its starting from a definition of Hofstede. However, there is a general agreement that culture is reflected in the way things are done by a group and most researchers concur on the six aspects of culture identified by Cameron and Quinn (2005), these are as under: Cultures are the property of groups and not individuals. Cultures engage the emotions as well as the intellect. Cultures are based on shared experiences and thus on the histories of groups of people. Cultural development takes time. Cultures are infused with symbols and symbolism. Cultures continually change circumstances force people to change. Cultures are inherently fuzzy in that they incorporate contradictions, paradoxes, ambiguities, and confusion.

2.6 Cultural variability theory This is the most widely cited set of cultural dimensions. This model came from studies of IBM and was first published in 1980 (Black, 2003). Geert Hofstede (1980, 1984, 1991, 2001, and 2003) examined work attitudes across 40 cultures. His work revealed that four dimensions of cultural values were held by more than 100,000 corporate managers and employees. Power distance, uncertainty avoidance, masculinity-femininity, and

individualism-collectivism are the said four cultural dimensions observed by Hofstede from his studies and these four dimensions comprise cultural variability theory. 11

2.6.1 Power distance According to Schein (1992), the allocation of influence, power, and authority is the major issue in any group or team. He further described in 2010 that all groups and cultures have the issue of how to manage aggression and that is why broad surveys of cultures such as Hofsteds identified the dimension of power distance. Black (2003) described power distance as a dimension showing the extent to which the less powerful members of society accept that power is unequally shared. According to Hofstede (2001), power distance depends heavily on management style, willingness of subordinates to disagree with superiors, and the educational level and status accruing to particular roles. Child and Keiser (2000), in their study about organizational culture found power distance as a significant factor affecting organizational culture. Hofstede (2001) explained further that communication is affected due to large power distance, in that it is formalized, challenged, and always appropriate with the proper protocol. On the contrary, communication gets informal and with less prescribed behaviour with small power distance (Schoenberger, 1997). 2.6.2 Uncertainty avoidance According to West and Turner (2008), it can be tricky to understand uncertainty avoidance. They described that this concept refers to how tolerant or intolerant a person is of uncertainty. They further explained that the cultures that resist change and have high levels of anxiety associated with change are said to have high level of uncertainty avoidance. However, Black (2003) explained this concept as a tool to measure the extent to which people feel threatened by the uncertain or unknown happenings. Cultures with high degree of uncertainty avoidance desire predictability and need special laws to guide behavior and personal conduct. West and turner (2008) mentioned that cultures of USA, Denmark, Britain, and Switzerland have got low degree of uncertainty avoidance. They take risks comfortably and are less aggressive and less emotional. On the other hand, Greece, Chile, Portugal, Japan, and India tolerate only little uncertainty. Risky decisions are discouraged in these cultures as they increase uncertainty. 2.6.3 Masculinity-Femininity Hofstede (2001) identifies the dimensions of masculinity and femininity as the extent to which cultures represent masculine and feminine traits in their society. West and Turner (2008) suggest that this concept should not be treated like masculine as male and feminine as female, although these terms still reinforce stereotypical notions of how men and women should behave. According to Wilson (2004), masculine culture focuses on achievement, competitiveness, strength, and material success. He described the importance of money in 12

masculine cultures. On the other hand, feminine cultures emphasize on sexual equality, nurturance, quality of life, supportiveness, and affection. Compassion for the less fortune also characterizes feminine culture (West and Turner, 2008).

2.6.4 Individualism-collectivism When a culture values individualism, it prefers competition over cooperation, the individual over the group and private over the public West and Turner, 2008). Buchanan and Huczynski in their study in (2004) observed that individualism and collectivism were the most important cultural value that affected the behavior of employees to either respond positively or negatively to the team work. Individualism refers to the culture where people take care of themselves and their immediate families while in case of collectivism; a tight social framework is formed in which people distinguish between in-groups and out-groups (Deal and Kennedy, 1990, West and Turner, 2008). However, Black (2003) describes this concept as a difference between societies where a few ties beyond those of the nuclear family and those where people are in favour of cohesiveness and collective team work. 2.7 Motivation Since 1960, researchers have started showing great interest in motivation. Along with the research in the areas like HRM and organisational behaviour, employee motivation has become a fascinating topic (Gunkel, 2006). The researchers have been placing focus on the process of employee motivation as well as on the factors like rewards, work culture/environment responsible for their motivation. It is not possible for an organisation to achieve desired results without a motivated staff. Staff motivation is critical in order to get the optimum outcome from the employees for the sake of organisational goals. Incentives (intrinsic/extrinsic), rewards, leadership style and more importantly the organisational culture need to be paid strong attention in order to create an environment where the employees are committed to give their best for the sake of organisational goals (Armstrong, 2005). Ambrose and Kulik, (1999) suggested motivation as the force (both internal and external) that initiate work related behaviour. According to Khan (1997), in this contemporary corporate world, organisations have been experiencing a speedy change regarding their outcomes and performance. Companies must ensure the motivation of their employees so as to make them committed for best outcomes, in order to compete in the global competition. Flick et al. (1998) backed this view and suggested that human factors are equally responsible as others for the excellence of an organisation. He

13

stated that it is in the essence of the companies to understand the behaviour of their staff and provide the motivating factors in order to achieve success. In this regard, Riskin, (2002) came with the strong empirical support to state that effective people management and behaviour is a strong factor for an organisation to operate profitably. There is a psychological and behavioural uniqueness present in humans and that is why people tend to choose and get engaged in desired pattern of behaviours. In this regard, Mitchell (1982) has suggested four characteristics of motivation that help in the understanding of the employee motivation; Every person consists of uniqueness and different attributes; hence the major theories of motivation are based on the theme to demonstrate that uniqueness. Motivation is of versatile nature or multifaceted. Willingness of an individual to get started or activated and the force that engages him in the given behaviour are the two important factors for this multifaceted nature of motivation. To predict human behaviour is the basic purpose of motivational theories. Motivation is directly concerned with the acts and the forces (internal and external) that have its influence on an individuals choice of action. Motivation is neither behaviour nor a performance itself. Motivation, in an organisation doesnt come itself; rather it is an intentional effort. It is assumed to be under the control of the people who are influenced by it. It is now clearly understandable that in order to determine the performance of the operations of an organisation, it is essential to determine how motivated their employees are. But on the other hand, Mullins (1999) came with a different concept. According to him an employee gets motivated because of certain forces that drive him to perform a task so as to fulfil his needs and expectations. An organisations culture and philosophy of employee development determine whether the organisation treats its employees as assets or merely as resources to meet immediate business needs (London and Mone, 1987).

2.8 Motivational theories Motivation is the desire within a person causing him/her to act. People usually work to achieve any desired goal. Thus motivation is a goal-directed drive, and it seldom occurs in void. The words need, want, desire, and drive are all similar to motive, from which the word motivation is derived. There have been various approaches to understand motivation

14

because different theorists have developed their own views and models in order to understand motivation (Mathis and Jackson, 2007). Maslow (in his book motivation and personality, 1954) suggested that man has a hierarchy of five needs beginning with the basic need of physiological well being and goes up to realization of ones potential (see fig. 2.1) (Rosdahl and Kowalski, 2007). The nature hierarchy of needs given forward by Maslow lay down a systematic approach that a manager can apply to motivate his subordinates (Kondalkar, 2009). According to Smoke (2005), Maslows hierarchy theory suggest that human beings are motivated by unsatisfied needs and that certain lower level needs need to be satisfied before higher needs can be satisfied. He further mentioned that physiological, safety, love and esteem are the four general types of needs that must be satisfied before a person can act unselfishly. Maslows Hierarchy theory has been described in detail in appendix 3. However this theory has been criticized by some authors for lying down needs in particular order (Kondalkar, 2009). This is because in reality, it may not be so.

Fig.2.1: showing Maslows Hierarchy theory (Landy and conty, 2009; p369)

15

In contrast to Maslow, Fredrick Herzberg theorized that motivation in the work place is influenced by nonexclusive factors of job satisfaction. Herzberg surveyed workers to determine what they appreciated about their jobs as well as what frustrated them about their employment. His findings resulted in his two-factor theory (Davies and Hertig, 2007). According to Herzbergs suggestions, there are certain forces that collectively can provide motivation for employees. Herzberg called these motivating factors as motivators. Conversely when other factors are absent, employees become frustrated and unsatisfied. Herzberg refers to these factors as hygiene factors (Lingard and Rowlinson, 2005). These motivators and hygiene factors are shown in Fig 2.2 below;

Fig.2.2: showing Herzbergs two-factor theory (Davies, 2007; p81)

According to Mukherjee (2009), two-factor theory argues that managers must reduce job dissatisfaction by providing employees with hygiene factors. These factors tend to relate to the environment in which one works and the context of that work. By providing safe working 16

conditions, reasonable wages/salary, and benefits, employers meet the hygiene needs of their employees. However, in order to engage and motivate employees in true senses requires that motivators must be implemented to encourage employee loyalty and growth. Motivators include factors related to employee self-esteem and actualization. Commonly known motivators are responsibility, advancement, and recognition etc (Henry et al, 2000). Most of the authors have stated the similarities between Herzbergs two-factor theory and Maslows Hierarchy theory. In effect, Herzbergs theory may be readily combined with the ideas presented by Maslow. Where Maslow would argue that fundamental needs must be met in the first place, Herzberg would see hygiene factors that require satisfaction (Beel, 2007). This concept is backed by Kondalkar (2009) by suggesting that certain similarities have been found between the two theories. In his study, he found that maintenance factors propagated by Herzberg are identical to the lower level needs of Maslow. The higher level needs in the hierarchy of needs of Maslow are identical to motivation factors suggested by Herzberg. In order to discuss the importance of other factors related to the motivation it is important to discuss Vrooms Expectancy theory. According to Brooks (2007), Vroom (1964) developed expectancy theory from the original work of Tolman and Honzik (1930). Vroom argues that the motivation to behave in a particular way is determined by an individuals expectation that behaviour will lead to a particular outcome, multiplied by the preference or valence that person has for that outcome. Brooks (2007) further explained that humans act according to their conscious expectations that a particular behaviour will lead to specific desirable goals. The theory, with all its consequent refinements, provides a popular explanatory framework for a range of employee behaviours including, levels of motivation, performance, employee turnover, and absenteeism, in addition to leadership effectiveness and career choice. For example, if by working diligently and for long hours an employee expects to receive promotion at some future date and he does value promotion highly (the worker is said to have valence) then, rationally, we might expect that employee to show that behaviour. Vroom argues that human behaviour is directed by subjective probability, that is, the individuals expectation that his or her behaviour will lead to a particular outcome. The expectancy theory equation is as below; Motivation (M) = Expectation (E) * Valence (V) It is assumed that the level of motivation in individual displays results from his or her conscious decision-making process. The theory also considers the value that each individual places on the estimated outcome. The basic theory recognizes the individual differences: that we are all unlikely to value the same outcomes equally. The theory also attempts to 17

measure, via a simple calculation, the strength of motivation by multiplying the individuals estimated probability (E*V as above) of an expected outcome by the value or valence that individual places on that outcome. According to the theories discussed above, it is obvious that an individuals behaviour is determined by what motivates him or her. After analyzing the motivational theories, it can be summed up that the performance of employees is subjected to their motivational level. The managers must, therefore encourage their staff to direct their efforts (driving forces) positively towards the attainment of the desired goals. According to Naylor (2004), managers need to provide both intrinsic and extrinsic benefits so as to create a motivated group of staff. Extrinsic rewards consist of job security, increase in pay, promotion, benefits, responsibilities and so on. Although a manager frequently provides extrinsic rewards, colleagues can offer them through their appreciation. On the other hand, intrinsic rewards are related to the psychological behaviour such as opportunity to use ones ability, a sense of challenge and achievement, being appreciated. Psychological rewards refer to those that can usually be determined by the actions and behaviour of individual managers. However, Bennett (1981) (cited from Ager, 2001), suggested a broad three-fold classification for the motivation to work. Primarily, he refers to economic rewards like, pay, fringe benefits, pension rights, material goods and security. Bennett called them as instrumental orientation to work and is concerned with other things. Secondly, he suggested intrinsic satisfaction which is derived from the nature of the work itself. He regarded them as concerned with one self and is known as personal orientation to work. Finally he took into consideration the social relationships such as friendship, group working, and the desire for affiliation and dependency. He called this type of orientation to work as relational and is concerned with other people. Within the same context, Cartwright (1999) suggests that the will or motivation to work is mostly influenced by the concept of psychological contract which involves a series of expectations between the employees and the organisation. Although these expectations cannot be defined formally and both the parties may not be aware of the contract, but they still have an impact on the relationships between an individual and the organisation. Beardewell (2004) states, it is essentially obvious that if the expectations are not met, it will have a natural impact on the motivation level in specific and on the performance level as a whole. He further suggests that in order to attain organisational goals successfully, managers, essentially need to find out what motivates employees at each level and at which level employee is operating, and emphasized to develop a strategy accordingly.

18

However, Rollinson (2005) projected it other way and suggested that people are motivated by the things that make them feel good at work, but there is a need to avoid the things that make them feel bad. According to him, it is the condition at the work that is responsible for the motivation or de-motivation of the staff working. Thus organisations and managers must adapt new ways and vary their behaviour accordingly as per the situations and the different needs and the motivations of the employees. 2.9 Factors of motivation All the motivational theories and models put forward by various scholars, help to understand the importance of motivation in determining employee behavior as well as the richness of potential applications that motivational theories have for Human resource development (Werner and DeSimone, 2008). 2.9.1 Rewards and incentives According to Cooper (2004), rewards and incentives are essentially to be given to employees in order to have a better motivated staff and high performance level, in that there is fair evidence that employee commitment is affected by rewards. Rewards and incentives are also included in the motivators list of two-factor theory given by Herzberg in 1968. Providing rewards does not only help in increasing the motivational level of employees but it influences the overall behavior of the employees working within an organization (Thompson, 1996). It is the role of management to create initiatives that will add to the motivational level of employees in order to achieve the organizational goals smoothly. In this regard, Bogardus (2009) suggests that organization needs to review the total rewards strategy for selecting the type of rewards to be offered, in that it is used to determine how the resources available for reward programs can be used to best advantage in attracting, motivating, and retaining employees. Organizational culture is rooted in the values and beliefs advocated by an organizations leadership and the way in which members of the organization behave (Bogardus, 2009). He further adds that total reward philosophy reflects these values and beliefs to reinforce the culture. In addition, Vrooms expectancy model (1964) emphasizes on the need of the rewards (extrinsic outcomes/rewards) that must be present so as to make an employee motivated to put forth his/her best efforts for the sake of organization. 2.9.2 Recognition At the heart of new management approaches, employee recognition is regarded as an effective mean to inspire employees and managers of an organization (Marciano, 2010). Employee recognition means to provide recognition to an employee for his performance or

19

job well done. It is a non monitory incentive and takes many forms ranging from casual words of encouragement or praise to an employee by his/her boss to presentations before large audiences of peers and senior management within the organization (Greenberg and Edwards, 2009). Recognition is one of most important job factors that Herzberg found most frequently associated with satisfaction (Pride et al, 2009). As stated by Allen and Peter (2007; p125), A recognition culture has to start at the top. The guy at the top has to believe in it, has to bring the managers together to create a recognition culture. The key is the manager of each department, who has to do things that make employees feel important. It is a basic human need. Most managers do not recognize it. These thoughts received further support by Holbeche (2005) arguing that apart from the financial tokens of appreciation, it is recognition that has the potential to have a dramatic impact on employee motivation and commitment. She further emphasized on its essence by explaining that it is an area where employees can be most creative and focus of the management should be to direct the reward system of the organization where they can be most effective.

2.9.3 Training and development According to Manning (2002), Broadly, training is the planned process by which staff is equipped to carry out their existing tasks, and development is the means by which they are prepared for future roles, for increase or wider responsibilities and to utilize employees potential within the organization. He further explains that training and development are means towards ends, not ends in themselves. Training and development plans must stem from the needs of the business and be measured by the improved business performance which they achieve. Pride et al (2009; p264) states that, training and development are extremely important because both are aimed at improving employees skills and abilities. Training has been defined as an activity that changes the behavior of the people (Khan, 1998; p30). He further emphasized that training is not important only to increase productivity but to inspire and motivate staff by letting them know how important their jobs are and provide them adequate information required to perform their job. Companies need to acknowledge the importance of training and development programs to facilitate employee motivation (laird et al, 2003). They further suggested that motivation is a fundamental component of performance. Supervisors and managers are responsible for achieving the goals of the organization through leading the performance or efforts of their employees which is possible if the employees are motivated. He further adds that performance=ability*motivation where as ability=training*resources.

20

2.10 Organisational Culture and Motivation Motivation is the key component of organisational culture. Organisational culture plays a significant role in an organisation regarding how people feel about their work, levels of motivation, commitment, and in turn job satisfaction. A strong culture brings out the positive energy of people to perform with loyalty and at deeper level while having emotional bonds of attachment with the organisation (Owens, 2004). The way in which the managers behave with their employees, shows the strength of culture within that organisation that is enacted both consciously and subconsciously. These views are further backed by Sempane et al. 2002 by explaining that people are the key factors for the competitiveness and organisations can demonstrate highly complex social structure because of their cultural strength. There is a clear mutual interdependence between organisation and its employees, where both the parties have an impact on each others potential so as to achieve success. Such a relation gives birth to the relation of employee motivation and job satisfaction (Schneider and Synder, 1975). There are evidences from the researches that motivation and job satisfaction cannot be treated in isolation. Organisational culture should be prompted to ensure employee motivation in order to achieve organisational goals (Sempane et al. 2002). So the starting point according to him is organisational culture. Organisational culture is also regarded as central theme in organisational psychology and its impact is considered as a legitimate factor responsible for the achievement of organisational goals (Bagraim, 2001). From organisational point of view, organisational culture is manifested in employee behaviour with an existence at both cognitive as well as emotional level. There has to be an explicit flow of individual objectives within the strategies of an organisation so as to motivate their employees in the best way (Schein, 1984). To ensure the motivation of the staff is considered as the key role of the management these days. Motivated staffs take pride whilst doing their job and thus feel responsible for the organisational success. But it has been an issue for some managers regarding how to motivate their employees, Management News (1990). Because of the uniqueness in the behaviour and needs of the human being, discussed above in the motivational characteristics, it has been almost impossible for the management to identify a unique solution for the motivation of the employees. Organisational behaviour is being influenced by different motives and the collection of the different aspects of organisations culture determines the employee behaviour. and developmental steps taken by the management and a growing relation between the peers According to Hofstede (2001), recognition of the work done by the employees will make them work harder in future. There would be the improvement in the performance of the people because of promotions and subordinates will

21

be a strong factor for the motivation of the work force. Hofstede emphasised that such elements come into being because of the strong organisational culture. According to Schein (1992), organisational culture has got an amazing characteristic that the employees never know how much they are influenced through it. Atmosphere of the work site should be such that the employees feel themselves as part of the team and work harder so as to achieve the organisational goals. In return of this commitment by the employees, company must feel it obligatory to reward their employees (both intrinsically and extrinsically) e.g. home loans, holiday packages, transport facilities, promotions and hike in salary. These elements will make employees become more loyal towards their employers. Regarding the type of culture to be present in an organisation, some best known classification schemes are being suggested by Harrison (1972). These include; Power culture, Role culture, Task culture, and People culture. Handy (1982), however, reworked Harrisons work and advocated that this classification has got extreme influence and they play an important role in order to understand how these organisations work. As per his suggestions, all the organisations have got at least one of these cultures within their working operations as its impact on organisational behaviour as well as employee motivation. These types of cultures are as below:-

2.11 Power Culture This is the type of organisational culture that depends heavily on trust, communication, empathy and the central power source with rays of influence from the central figure throughout the organisation. Strong central leadership style is found in such type of organisations where people always try to achieve better positions by improving their performances (Brown, 1998). Mullins (2008) backs these thoughts and stated that there is a clear centralisation of powers in such organisations and decision-making is governed by a certain key individuals. This type of culture is also depicted as spiders web and in this type of organisational culture, as name suggests, power is vested in the hands of a few individuals with a little bureaucracy. Often small entrepreneurial or family companies witness power culture. In such organisations, central powers figure manipulates all the activities of the organisation. Employees in such an organisation have to be in a well relation with the central power holder. It is a political organisation with decisions taken largely on the influential balances. Although this type of culture provides an environment with less motivational factors, employees are keen to work even harder to gain incentives and promotions available in such organisations. Organisations having affiliation and high positions as motivational factors are seen doing well (Torrinton et al 2005). 22

2.12 Role Culture Often stereotyped as a bureaucracy, in this type of culture, role of an individual is given more preference than an individual himself. Individual behaviours are ruled by logic and reason, and procedures and impersonal systems. This type of culture is mostly seen in finance, production, and purchasing companies, like banks and insurance companies. In such kind of culture, career is linked with logic and length of service and is apparently opposite to the levels of performance. Certain group of people love to work in such an organisational culture. These are the people who are looking for stability, clarity of job role and demarcation of responsibility (Mullins, 2008). Organisational tasks are done with in different departments with corresponding role heads to which employees are supposed to report. Communication gap between the staff of these departments is an apparent drawback of such culture. A research carried by select knowledge suggests that the increasing pace in the organisations has shaken up traditional role cultures. In order to create environment for adapting the change, they need to provide flexibility in jobs and abandon job descriptions. 2.13 Person Culture Unlike other types of cultures, central focus is placed on the individual. According to Mullins (2008), when group of people share same interests to team up and work together for the organisations sake, they share office space, equipments, and clerical assistance and the result of such an environment is called person culture. A group of barristers, architects, doctors, and consultants are the examples of such culture. This type of culture is least common among the four. According to Martin (2002), people in such an organisation work with full consciousness and are motivated to work together and be part of such organisation. Marks and Spencer appreciates good relations along with an effective management. Focus on the people and good human relations has added in the performance of the company. The organisation believes employees commitment behind such policies (Brian heads, 2008). Therefore, Sieff (1991) states that moral attitude is involved in good human relations. Employees should be taken care of regardless of their job positions which in turn will make employees more committed and work harder for the sake of organisational goals. The only threat to this kind of organisation is growth. Organising systems in such organisations become more significant because of the substantial growth in the size.

23

2.14 Task Culture This is a job or project oriented culture as it is concerned mainly with the completion of the task or project. Unlike power culture, power doesnt come from single source and is often associated with flexible project-based/ matrix structure. This type of culture is mostly seen in high technology and engineering companies. The main aim of this culture is to get the best individuals together for the completion of the task or project. Individual differences are sacrificed for the commitment of team work. People are adaptable and flexible in accordance with their expertise. Task culture generates a sense of unity and thus the people are more positive and committed towards their task for achieving the organisational goal. Hofstede (2001), suggests that task culture is more successful where there is more competition in market, short product life span, and the necessity of constant innovation. Purcell et al (2003) adapted from Armstrong (2003) has given emphasize on the fact that the intangible assets like culture, skill and competence, motivation, and social interaction between people, teams and business units are all likely to be the key factors of success for the organisations which combine people and process together to achieve organisations goals. Trompenaars (1993) has also written as an attempt to show a link between organisational behaviour and cultural variance. However, according to him there are aspects present in the organisations that affect the employees behaviour. Since the relation between organisational culture and motivation has been discussed, there will be a discussion on the link between the organisational culture and performance of the organisation. 2.15 Impact of Organisational Culture on Corporate Performance According to Ogbonna and Harris (2000) there has been a plenty of literature defining the link between culture and performance of an organisation. Despite the fact that some authors have written against the link between the two, but most of the theorists have come up with sufficient evidences describing the link between the organisations culture and performance of the company. Two years before, Brown (1998) suggested that one of the important consequences of the strong organisational culture is its impact on the performance of the company. Denison (1984) conducted the research on performance-culture link using the data from 34 companies of America in a period of 5 years. Based on the quantitative studies, author, constantly, examined the cultural characteristics and performance of these companies throughout the period of 5 years. He used the data of return on investment and sales to measure performance. Although there were variances among some of the measurement indicators strength to find the relation between the two, but he was successful in finding out 24

a link between the culture and organisational performance. In this research, he found that long term financial performance is linked with the decision making and work design of an organisation. Moreover, his research suggested an association between short term financial performances and leadership styles. Despite the encouraging results of the study, it had its limitations too. Lim (1995) came up with a strong criticism of Denisons studies and stated that study was based on the measurement of organisational climate rather than measuring organisational culture. Later, in 1990, Rousseau started researching the link between organisation culture and performance of that organisation. In order to overcome the limitations present in the study of Denison (1984), he chose data from 32 voluntary fund-raising service organisations. The amount of money raised at that time by the organisations was taken into account to measure performance and for the measurement of organisational culture; organisational culture inventory promoted by Cook and Lafferty (1983) was taken into consideration. Unfortunately, Rousseau was not successful to find a significant correlation between organisational culture and performance. As mentioned earlier, plenty of studies have been conducted to find the link between the two. After the Rousseaus study failed to find any significant link between the two, Kotter and Heskett conducted an extensive study in 1992 in order to find culture-performance link. Data was collected from 207 companies over the period of 5 years. Various measures of culture and economic performance data were taken into consideration to make their study successful. At the end of the study, only a minor relation was found between strong culture and long term performance which was their initial objective. However, subsequent investigations revealed that the organisations having suitable culture in accordance with their market environment have better performance than those that have not. The study was backed by Morcoulides and Heck (1993) who analyzed the culture-performance link by using data from 26 organisations. They carried the study in a slightly different way by proposing a model, using various latent variables to measure organisational culture. Variables used were; organisational values, organisational tasks, organisational structure, climate, and individual values and beliefs. In order to measure performance, capital, market and financial indicators were taken into consideration.Through their study, it was learnt that all the variabls used to measure organisational culture have an impact on the organisational performance. Moreover, workers attitude and task organisation were found the most effective variables to have a direct impact on organisational performance. Recent studies were conducted by Ogbonna and Harris (2000) in order to investigate the relation between the organisational culture and company performance. They included 25

leadership style as one more variable in their model. Data was used from 1000 registered British companies. Customer satisfaction, sales growth, market share, competitive advantage and sales volume were the variables used to measure performance. In order to measure organisational culture, innovative, competitive, bureaucratic, and community cultures were taken into account. Their study revealed that all the variables used to measure organisational culture are having their direct or indirect impact on the organisations performance. Innovative and competitive cultures were found more significant having direct effect on the performance accounting 25% of organisational performances variance. These two cultures were found externally oriented and responsible for attaining a sustained competitive advantage. While as community and bureaucratic cultures according to the results of study are internally orientated having an indirect link with organisations performance. Their study was further extended in 2002 after analyzing the link between organisational cultures, market orientation, strategic human resource management, and organisational performance. Research was carried on using the same measures as in their previous study for the measurement of organisational culture and performance. However, the results of their further studies were same as in past. Innovative and competitive cultures were found more significant having direct effect on the performance while as community and bureaucratic cultures were not found having any link with organisations performance. Chapter summary It has been observed from the literature review that organisational culture has a significant impact on employee behaviour, in that it conveys a sense of identity and unity of purpose to employees. Culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviours of employees (Kumar, N 2001). As per the motivational theories discussed, it is apparent that employees performance is determined by how motivated they are at workplace. From the empirical evidences mentioned in the chapter, it is now easy to understand there is a link between culture and motivation. As discussed in the chapter, every organisation and society has its own unique culture and employee behaviour; hence they will depend on the existing norms and values of that culture. Motivational theories discussed suggest the need for the essential factors that need to be present for the better motivation of employees. Factors like salary, recognition, rewards and incentives, training and development, and promotion are the most significant factors responsible for the motivation of employees. It was also learnt from various studies mentioned in the literature that organisational culture is also responsible for the performance of the employees (Ogbonna and Harris, 2000).

26

Chapter 3: Research methodology3.1 Introduction This is an important chapter of the research, and it aims at providing an overview of the methodology and research design selected to investigate the impact of organisational culture on employee motivation. According to Kumar (2008), research is an intensive and purposeful search for knowledge and understanding of social and physical phenomena. He further described it as a scientific activity undertaken to establish something, a fact, a theory, a principle, or an application. According to Hudson (adapted from Kothari, 2008), all progress is born of enquiry. Doubt is often better than overconfidence, for it leads to enquiry, and enquiry leads to invention. This is one of the best quotes that will help to understand the significance of research.

3.2 Research design and research methodology According to Creswell (2003), research methodology as a path or set of rules for the evolution of research claims and the validation of the knowledge gathered by the researcher, while as the research design is considered as research blueprint. His thoughts were backed by Sekaran (2003) who stated that research methodology is a regulatory framework established to collect and evaluate existing knowledge in order to serve the purpose of arriving at, gain, and validate, new knowledge. Cooper and Schindler (1998) defined research methodology as one of the important challenges confronted by a researcher. They further defined the essence of research by mentioned it as consumptive one and maintained that it must be purposeful. Besides being a simple frame of study, research methodology serves an important purpose of identifying the research tools and strategies to be applied, and finally relating their use to the research objectives. Sekaran (2003) has further mentioned its importance by stating that the significance of research methodology can be understood by the fact that it can easily define the activity of a specific research, its procedural methods, and strategies in order to measure progress that is important for the research success. Research design, on the other hand articulates the tools through which the empirical data will be collected and analysed (Punch 2000). However, Singh (2008) defines research design as a mapping strategy and maintained that it is essentially a statement of the object of the enquiry and the strategies for collecting the evidences, 27

analysing them, and finally reporting the findings. More importantly, Punch (2000) states that it helps in relating the data collected with the research objectives, hence facilitating the means to achieve the end results. Although being different academic constructs, Punch (2000) defines research methodology as more holistic then research design.

3.3 Research philosophy According to Bryman and Bell (2003), research philosophy can be divided into two different views of gaining knowledge. One is the epistemological approach, also known as positivism, or scientific method (Walliman, 2005). Another one is called interpretivism or

phenomenology (Thornhill, 2000). However, Saunders et al (2009) added pragmatism and realism as two more research philosophies. 3.3.1 Positivism, as suggested by Walliman (2005), is a critical and objective method. He further explained that it is mostly used in natural sciences and is based on quantifiable observations with generalised results. Saunders et al (2009) suggested this approach as objective and independent as the research is being carried in a value-free and credible data is provided only by observable phenomena. 3.3.2 Interpretivism, on the other hand stands opposite to that of positivism (Bryman and bell, 2007). According to Blaikie (2007), this philosophy is originated from Hermeneutics and phenomenology and is also known as anti-naturalist or anti-positivist approach. He further described that the fundamental difference between the subject matters of natural and social sciences is the central tenet of interpretivism. Saunders et al (2009) described it as subjective and stated the likeliness of the change of viewpoints during the research process. 3.3.3 Pragmatism is the third research philosophy in which a researcher has his/her focus on the research question(s) in order to adequately answer those (Saunders et al 2009). They further explained that the researcher takes both internal and external views into consideration along with the adoption of objective and subjective views as well. 3.3.4 Realism is another research philosophy related to scientific enquiry (Saunders et al 2009). They further stated it similar to that of positivist approach as it applies the structured data collection methods with the assumption of scientific approach. This philosophy presumes reality as independent of mind and is always true. Bryman and Bell (2007)

28

critically stated that the researcher with this philosophy might be influenced by the culture or his/her world view. After analysing all the four research philosophies, the author has decided to carry this research with the combination of interpretivist and pragmatist approach. This combination is supported by the analytical approach to research based on the following applied points (Saunders et al, 2009). In order to be able to answer the research question, the external view of reality has been taken into consideration. The prime focus of the research is on practical applied research. The author has adopted both objective and subjective views in order to complete the research successfully. And the qualitative data approach has been taken to collect data. 3.4 Research purpose According to Saunders et al (2000), there are three main purposes to the research activity; exploratory, descriptive, and explanatory. However, Patton (1998) adds the fourth purpose and defines it as prescriptive objective. 3.4.1 Exploratory According to Saunders et al (2000), exploratory research is concerned with group interviews, along with the structured and semi-structured conversation with experts and a search of literature review. Paneerselvam (2004) further explains it as an initial research which analyzes the data and explores the possibility of obtaining as many relationships as possible between different variables without knowing their end application. This research provides a basis for general findings as maintained by Saunders et al (2000) that the purpose of research is to explore a research problem or phenomena in order to clarify the identified complexities and composition. 3.4.2 Descriptive Paneerselvam (2004) states that descriptive research is carried out with specific objectives and hence it results in definite conclusions. However Punch (2000) states that its purpose is to collect, organise, and summarize the information regarding the research problem and issues identified there in. Dane (1990) defines that descriptive research examines the research thoroughly in order to describe the phenomenon of a specified problem by defining, measuring, and clearing it. However, Jackson (1994) states that almost all the researches are partly descriptive.

29

3.4.3 Explanatory The function of explanatory research is to reveal the causality between variables (Moutan and Marais, 1984, Uys, 1991, Kothari, 2008). This thought is backed by Miles and Huberman (1994) by stating that explanatory research clarifies the relationship between variables and componential elements of the research problem. Punch (2000) further expounded upon these thoughts and suggested that it crystallises the nature of problem under investigation and helps in explaining the basis for the solution. 3.4.4 Prescriptive According to Hair et al (2003), prescriptive research aims at proposing a well defined solution to the investigated research problem. He further emphasized these solution(s) to be well-defined, comprehensively explained, and implementable blueprint for a specified solution. According to Patton (1990) maintains that prescriptive research purpose builds upon other three purposes, but it extends beyond them in one aspect. He further explained that the other three purposes are based upon the ground facts, but prescriptive research focuses on what should be. Most of the research scholars, concurring upon the significance of prescriptive research purpose have stated that the researches consisting of prescriptive purpose tend to be more valuable than those who shun it (Patton, 1990; Jackson, 1994; Punch, 2000; Cooper, 2003; Hair et al, 2003; Ghauri and Gronhaug, 2005). 3.5 Research approach According to Creswell (2003), it is critically an important decision for a researcher to select the research approach. He further explains its significance and suggests that research approach allows a researcher to critically consider various approaches and how those approaches may, contribute to, limit, his/her research study and eventually allow him/her to satisfy the objectives of research. After critical analysis of various approaches, researcher is in a position to design an approach that fits his research requirements. According to hair et al (2003), research approach embraces the quantitative versus qualitative and deductive versus inductive approach. He further describes that these sets of approaches are commonly perceived of as referring to polar opposites. However, Jackson (1994) suggests that instead of being limited to a particular approach, a researcher should go through various approaches as needed for the completion of his research.

30

3.5.1 Deductive versus Inductive approach According to Marcoulides (1998), deductive approach is the testing of theories. He stated that the researcher starts with a set of theories and his/her conceptual perceptions to formulate hypothesis. Research proceeds with this concept and in the end the proposed hypothesis are tested. This thought was backed by Saunders (2003) by stating that deductive approach is leads to the development of a theory that is subjected to a rigorous test. While as inductive approach proceeds from the collected empirical data and continues to formulate concepts and theories in accordance with the data collected (Marcoulides, 1998). According to Crowther and Lancaster (2005), inductive research is the reverse of the process found in deductive approach. Here, the researcher develops hypothesis and theories with a view to explaining empirical observations of the real world. 3.5.2 Qualitative versus Quantitative approach According to Creswell (2003), quantitative tools for data analysis are structured in a way so as to guarantee objectivity, generalisation, and reliability. However according to Lamnek (2005), quantitative research characterizes a rather inflexible procedure that is best suited to explanatory, statistical, and theory testing purposes. Accordingly, random and unbiased selection of respondents, are the research techniques used in this approach. As stated by Punch (2000) that the quantitative research is focuses more on the numbers. It tends to decentralize human behaviour, leading to the criticism by the people preferring qualitative research (Creswell, 2003). Qualitative approach according to Katsirikou and Skiadas (2007) differs markedly from the quantitative approach and is underpinned by very different epistemological and ontological foundations. This thought is backed by Johnson and Christensen (2008) by stating that it stands opposite to the quantitative approach and suggested that this approach emphasizes the need to understand society as social actors and interpret it. Consideration of human behaviour and perception is the significant factor for the reason that researchers adopt this approach (Cresswell, 2003). Cresswell (2003) further explained that qualitative research helps in understanding a phenomenon more deeply by analysing the reasons behind it, while as quantitative tools analyse the phenomenon itself, without bothering about the human perception of reason why. 3.5.3Mixed method approach According to Clarke (2007) and Tashakkori and Teddlie (2003), the combination of quantitative and qualitative approaches has been advocated by researchers to study various social phenomena in the fields of social and behavioural sciences. The combination of both these approaches is most commonly known as mixed method approach (Onwuegbuzie and 31

Jiao, 2007). The researcher mixes or combines both quantitative and qualitative research techniques into a single study and is regarded as the class of research (Tashakkori and Teddlie, 2003; Creswell and Clarke, 2007). They further defined the researches with mixed approach as an inquiry, where a researcher links both quantitative and qualitative data so as to provide a unified understanding of a research problem. Punch (2000) also advocates in favour of exploiting both the approaches so as to maximise the validation of the research. Tashakkori (2003) went on further explanation and stated that such a methodology incorporates multiple approaches in all stages of research from problem identification to research questions, data collection, data analysis, and final interference. In the last 20 years, mixed method research has come into its own as a research approach (Cresswell and Garrett, 2008). In order to provide more validation to the research, author has decided to choose the combination of both qualitative and quantitative approaches for data collection. According to Katsirikou and Skiadas (2009), since 1960s, various authors have been advocating the combining of both quantitative and qualitative approaches and this type of research is known as mixed method research. According to Saunders et al (2000), the quantitative data is analysed through the use of diagrams and statistics and is based more on numbers. In order for the completion of this research, it was important to consider the numbers from data input. This is because author needs to analyze how many employees working in the bank are motivated by the culture of that bank. More importantly, what is the percentage of employees who believe that organisational has an impact on employee motivation? In addition, according to Bryman (2003), quantitative approach is mostly used by the researcher to establish relationships or links between two or more variables. As the main objective of the research is to investigate the link between organisational culture and employee motivation, author finds it convenient to go with qualitative research approach. However, qualitative research approach was included as well, in order to add the human perception and behaviour regarding the questions asked to employees of the organisation. In this regard, Cresswell (2003) stated that this approach helps in understanding a phenomenon more deeply by analysing the reasons behind it. Questionnaires and interviews will be used as tools to collect primary data, and books, journals, past researches, and internet would be used as tools to collect secondary data. Researcher has used both qualitative and quantitative analysis of data: The Questionnaire designed by the researcher is comprised of 24 questions having both qualitative (open ended questions) and quantitative (close ended) questions, within which there are 6 questions, put in the questionnaire as per the likert scale. Questions with likert scale were essential to be included so as to test the hypothesis after the end of data collection. 32

Questions 8 to 10 determine the factors of employee motivation while as questions 13 to 15 determine the organisational culture in the questionnaire. This method has been chosen because it meets the requirements as far as the objectives are concerned. Moreover, it provides more validity to the data analysis. Moreover, telephonic interviews have been conducted with the employees of the bank as a qualitative approach to collect data. Ten people were interviewed with total of 9 questions asked to each. This part of the data collection was also essential for achieving the objectives of the dissertation. 3.6 Qualitative Data collection A business researcher must focus on to identify the type and nature of data required, instead of approaching the research with specific method of data collection in his/her mind (Cooper and Schindler, 2005). However, Ghauri and Gronhaug (2005) suggested that the researcher must not limit his selection of data collection method to the type of data required, but to the collection methods available to him. In order to carry on this research, given the fact that both primary and secondary data are needed, author has decided to collect data through three data collection methods. These are discussed below; 3.7 Primary data collection Primary data are created for the specific purpose of answering the research questions at hand (Houser, 2007). She further explained that the researcher can determine exactly what data will be collected and can identify the specific tools to be used. Author has decided to use questionnaires and telephonic interview as tools to collect primary data. Questionnaire is the most common tool used to collect primary data (Saunders et al 2009). These are the structured surveys that are self-administered by subjects. In order to collect the data necessary for this research, questionnaire based on 20 questions has been sent out to the desired participants. In order to investigate the impact of organisational culture on employee motivation, most of the questions are asked with an aim to find the link (if any) between organisational culture and employee motivation. Moreover, telephonic conversation with about 10 employees of the bank has been planned. The main objective of telephonic interviews is to gather more knowledge and the perceptions of the employees regarding the culture of the bank and how they relate it to the work motivation. As stated by Johnson (2002), questionnaire is mostly based on more close questions and it limits a participant while answering, within yes or no, while as interviews are more flexible and they provide room for interviewees to answer in more depth, helping a researcher to gain

33

external knowledge. Although the sample size of interview is small, but it was conducted in order to gain more and in-depth data to increase the validation of the research. 3.8 Secondary Data Collection Secondary data is as important as primary data because it helps to provide an insight into the subject matter of what is already known on it (Creswell, 2003). As suggested by Lancaster (2005), secondary data collection is of great significance, in that it is used to define and refine the approach to a research problem. This type of data collection depend on various factors like, circumstances of the data collection procedure, research objectives, amount of data available, cost and time considerations, and so on. This research

encompasses ideas and results from past studies on the subject. The author has put in the relevant literature from books by various authors. Moreover, data has been collected from various management journals. 3.9 Sampling According to Powell (2000), sampling is often one of the most crucial steps in research. In fact, rigorous sampling methods have been developed and used primarily within the context of survey of research. However, according to Lancaster (2005), the basic logic and many of the specific techniques of sampling are equally applicable to other research methods such as content analysis, experimentation, and even field research. 3.9.1 Purposive sampling According to Sekaran (2003), purposive sampling is confined to specific types of people who can provide the desired information, either because they are the only ones who have it, or conform to some criteria set by the researcher. The researcher in this study has used purposive sampling so as to gain the desired information, in that employees from specific departments and middle management have been selected such as (sales managers, insurance department, and customer advisors). In order to investigate the impact of organisational culture on employee motivation, it was essential to know how motivated people in different positions are and what their perception about the culture of the Bank is. In this type of research, purposive sampling has been found best suited to the situation, in that it makes easier to answer the research question (Sekaran, 2003). 3.10 Research hypothesis Researcher has claimed that organisational culture is one of the important factors within the working environment to have an impact on the motivation of the people working within

34

it. Although various authors have stated organisational culture as a main component of business, most of the companies till date, do not believe that the organisational culture can influence the behaviour of the employees. To obtain the correlation between employee motivation and organisational culture researcher has used variables which are represented by OC and EM. Where OC represents organisation culture and EM is for employee motivation. The hypothesis is based on six questions (3 from each variable): OC1, OC2, OC3 for organisation culture and EM1, EM2, EM3 for employee motivation. All the responses to these six questions were analysed by using SPSS software to get the corelation between the two. 3.11 Ethical issues According Saunders et al (2009), ethical issues are worth consideration in every research. They further explained that the trust building between the researchers and researched and the help by the people to gain access to the organisation are the important factors in order for a good data collection. However Cresswell (2003) states that every care is to be taken in order to build a good relationship with researched. There are various ethical issues related to every research like, building a close relationship with researched, researcher must report the data collected data without any wrong interpretations and so on (Kumar, 2009). According to Brown (2003), it is of much importance for a researcher to address issues like confidentiality, anonymity, openness of participants, and feedback to the organisation. According to Saunders et al (2009), there are some important things to be kept in mind while conducting a research and these are as below; It is the primary duty of a researcher to inform a participant, the aims, methods, anticipated benefits, potential hazards of the study (if any), or any discomfort it might entail. There has to be no pressure or threat on the researched while collecting information from him/her. 3.12 Limitations of the research According to Gray et al (2007), research by its nature is limited to a range of either individual or group behaviour. Secondly, a research is not capable of generating a broad range of data about the characteristics of large populations. Patton (2000) argues that no research is perfect, there are always limitations. Moreover, this research has many limitations: Researcher had limited time to conduct this research due to time constraint. Sample size is not too large which makes research limited to few thoughts.

35

Research was conducted on particular branches which restricts researcher to cover a broader area.

3.13 Chapter Summary As may have been deducted from the above, this research will adopt a mixed method approach by applying both qualitative and quantitative data collection approaches. Although in the first instance, it was planned to carry a quantitative approach, author found it more valuable to introduce qualitative approach in order to cover up the limitations of the former approach. There is no claim that the approach will not be without limitations, but considering research questions and the nature of the research problem, along with the time and word constraints, it was decided that the defined methodological approach would best satisfy the articulated objectives and respond to the research questions. .

36

Chapter 4: Finding and analysis4.1 introduction A steady progression of this research was being made, up until the designing of the questions to ask participants. 40 questionnaires were sent out as a quantitative tool to collect necessary data however; only 38 got the response from participants. Questionnaires were sent out to the people with different working backgrounds in order to gain responses from almost every department of the bank. In this regard, questionnaires were sent out involving participation from human resource department to sales advisors. Questionnaire consisted of 19 questions and most of the questions were asked with an aim to find link between culture and motivation. Besides, as mentioned in the last chapter, interviews were conducted as a qualitative tool to collect data. A small sample of 10 people was interviewed with an idea to gain more knowledge of how motivated people in different positions and jobs are and to find an impact of organisational culture on employee motivation. Therefore, below is the graphical presentation and detailed analysis of the data collected.

37

Question 1: Please select your gender? Gender Male Female Total Number 21 17 38 Table 4.1 This question was asked to find out the gender proportion of the sample selected. After receiving the responses, it was learned that out of the total sample of 38 employees, major portion was male with 21 participants and female were 17. The main purpose of this question was to find out whether there is the difference of thoughts between genders regarding impact of organisational culture on employee motivation. As revealed from the responses given by the participants, it was observed that female employees of the Bank tend to be more positive towards good employee relationships.

38

Question 2: are you permanent member of the staff, paid on a day rate (agency staff), or ad hoc (temporary/short time) employee?

Job status4 10% 6 16%

Permanent staff Agency Staff Ad hoc 28 74%

This question was asked to find out the type of job people are doing. According to the data collected, it is quite apparent that 28 people i.e. 74% of the employees were working on permanent bases. However, 16% i.e. 6 people were working temporarily as agency staff, while as 10% i.e. 4 of them were working on ad hoc bases. Although majority of the population are working as permanent staff, but it has to be taken into consideration that around 26% employees are working temporarily. After critically examining the overall responses by the employees, researcher found that most of the temporary workers do not believe to be affiliated with the company, hence adversely affecting motivation and performance of such employees. As explained by Levine (1997) that although temporary employment, nowadays, is used as a mechanism to reduce costs, but it is the matter of consideration that most of these employees feel psychologically unrecognized and unaffiliated and it effects their motivation level as well. Moreover, researcher has related this issue with Maslows motivational model, whereby Maslow suggests that belonging and affiliation have a direct impact on the motivation of employees (Koontz and Weihrich, 2006)

39

Question 3: How long have you been working in this organisation?

Job Tenuremore than 5 years 9

3 to 5 years 11

1 to 3 years 8

less than 1 year 10 0 2 4 6 8 10 12

Responses for this question reveal that the organisation retains employees. This might be happening because it provides job security to employees. However, few employees are working there for less than 1 year and this might be because of the new recruitments made by the organisation. It was also observed that the responses of the employees differ from senior employees to freshers. This was due to the fact that most of the employees with less than 1 year tenure were working on temporary basis.

40

Question 4: What attracts you to the company you are working for?

1 3%

Attracting Factors

10 26% 20 53% 7 18%

Reputation Job Satisfaction Package convenience

This question was asked with an idea to find out what attracts people to work in the organisation. As shown in the graph above, it is apparent that major portion of the employees is there because of the reputation of the organisation. 53% of the employees are attracted by the reputation of the organisation. However 26% are there for the package, indicating the importance of package for employees. 7% are attracted by job satisfaction while as a less population of just 3% are attracted by the convenience. After analysing the responses to this question, it has been observed that the initial factor attracting the employees to work in the organisation is the company reputation. People prefer to work for the organisation with high profile or status. After exam