International Multidisciplinary Research Journal 2012, 2(7):34-37

ISSN: 2231-6302
Available Online: http://irjs.info/

A study on organisational culture and its impact on employees behaviour in

automobile industry
Sirajudeen.M1, Mohamed Irshath1,Tamilenthi.S2*

1Department of Commerce, Jamal Mohamed college, Trichy-620 020, India

2Department of Earth Science, Tamil University, Thanjavur-613 010, India

Abstract
The study brings out the behavioural aspect of the employees working in Hyundai Motors India 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 Hyundai Motors India 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 of HMIL were much 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.

Keywords: Automobile industry, Organisational culture, Employee behavior and Interpersonal relationships.

INTRODUCTION
million new vehicles built each year worldwide.
Automobile Industry, industry that produces automobiles and As a result of easier and faster transportation, the United
other gasoline-powered vehicles, such as buses, trucks, and States and world economies have become dependent on the mobility
motorcycles. The automobile industry is one of the most important that automobiles, trucks, and buses provide. This mobility allowed
industries in the world, affecting not only the economy but also the remote populations to interact with one another, which increased
cultures of the world. It provides jobs for millions of people, commerce. The transportation of goods to consumers and
generates billions of dollars in worldwide revenues, and provides the consumers to goods has become an industry in itself. The
basis for a multitude of related service and support industries. automobile has also brought related problems, such as air pollution,
Automobiles revolutionized transportation in the 20th century, congested traffic, and highway fatalities. Nevertheless, the
changing forever the way people live, travel, and do business. automobile industry continues to be an important source of
The automobile has enabled people to travel and transport employment and transportation for millions of people worldwide.
goods farther and faster, and has opened wider market areas for
business and commerce. The auto industry has also reduced the Indian automobile industry
overall cost of transportation by using methods such as mass
production (making several products at once, rather than one at a Following India's growing openness, the arrival of new and
time), mass marketing (selling products nationally rather than locally), existing models, easy availability of finance at relatively low rate of
and globalization of production (assembling products with parts interest and price discounts offered by the dealers and
made worldwide). Between 1886 and 1898, about 300 automobiles manufacturers all have stirred the demand for vehicles and a strong
were built, but there was no real established industry. A century later, growth of the Indian automobile industry. The data obtained from
with automakers and auto buyers expanding globally, auto making ministry of commerce and industry, shows high growth obtained
became the world's largest manufacturing activity, with nearly 58 since 2001- 02 in automobile production continuing in the first three
quarters of the 2004-05. Annual growth was 16.0 per cent in April-
December, 2004; the growth rate in 2003-04 was 15.1 per cent the
Received: May 12, 2012; Revised: June 18, 2012; Accepted: July 20, 2012. automobile industry grew at a compound annual growth rate (CAGR)
*Corresponding Author of 22 per cent between 1992 and 1997. With investment exceeding
Tamilenthi.S Rs. 50,000 crore, the turnover of the automobile industry exceeded
Department of Commerce, Jamal Mohamed college, Trichy 620 020, India Rs. 59,518 crore in 2002-03. Including turnover of the auto-
component sector, the automotive industry's turnover, which was
Email: [email protected] above Rs. 84,000 crore in 2002-03, is estimated to have exceeded
Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
International Multidisciplinary Research Journal 2012, 2(7):34-37 35

Automobile Dealers Network in India from 146 to 180 this year. And with the companys greater focus on
the quality of its after-sales service, HMILs service network will be
In terms of Car dealer networks and authorized service expanded to over 1,000 in 2005.
stations, Maruti leads the pack with Dealer networks and workshops
across the country. The other leading automobile manufactures are Hyundai motor company
also trying to cope up and are opening their service stations and
dealer workshops in all the metros and major cities of the country. The parent company of HMIL is the Korean Car giant Hyundai
Dealers offer varying kind of discount of finances who in tern pass it Motor Company (HMC), a part of the Hyundai Motor Group
on to the customers in the form of reduced interest rates. comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis
and other affiliated companies, with a combined turnover of over
Major Manufacturers of Automobiles in India US$ 50 Billion. The Hyundai Motor Group with a presence in over
185 countries and with a combined annual sale of over 3 million units
is one of the fastest growing auto manufacturers in the world.
Maruti Udyog Ltd. General Motors India
Hyundai Motor and its sister concern Kia Motor achieved global
Ford India Ltd. Eicher Motors sales of over 3.16 million cars worldwide in 2004. The target for 2005
is an ambitious 3.7 million vehicles.
Bajaj Auto Daewoo Motors India
Hero Motors Hindustan Motors Objectives of the study
Hyundai Motor India Ltd. Royal Enfield Motors
This study is undertaken with the following objectives.
Telco TVS Motors
1. To assess the existing culture of the organization and to find its
DC Designs Swaraj Mazda Ltd
impact on employees behaviour.
2. To analyse the overall performance of the employees.
Government has liberalized the norms for foreign investment
3. To learn the employees relationship with their peers.
and import of technology and that appears to have benefited the
4. To study the employees feel about the management.
automobile sector. The production of total vehicles increased from
5. To understand how the employer encourages participation in
4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the
decision making.
production of such vehicles will exceed 10 million in the next couple
6. To find out the employees motivational factor.
of years.

Company profile REVIEW OF RELATED STUDIES

Hyundai motors india limited
Collins and Porras, 2000 identified that organizational culture
Hyundai Motor India Limited (HMIL) is a wholly owned always refers to a system of shared meaning held by members of
subsidiary of Hyundai Motor Company, South Korea and is the the society that distinguish one organization from other organizations.
second largest and the fastest growing car manufacturer in India. The members believe that these shared meanings are a set of key n
HMIL presently markets over 25 variants of passenger cars in six characteristics, and that the organization values and the essence of
segments. The Santro in the B segment, Getz in the B+ segment, the an organizations culture can be captured indifferent basic
Accent in the C segment, the Elantra in the D segment, the Sonata in characteristics.
the E segment and the Terracan in the SUV segment. According to Herzberg, F. (1968) and Hackman J. R., &
The company recorded combined sales of 215,630 cars during Oldham, G. R., 1976) Job security, salary, fringe benefits, work
the calendar year 2004 with a growth of 43% over year 2003. HMIL conditions) that do not give positive satisfaction, though
is Indias fastest growing car company having rolled-out over dissatisfaction results from their absence. These are extrinsic to the
700,000 cars in just over 70 months since its inception and is the work itself, and include aspects such as company policies,
largest exporter of passenger cars with exports of over Rs. 1,700 supervisory practices, or wages/salary.
crores. HMIL has recorded a staggering growth of 149% in exports Locke (1969) defined job satisfaction as an emotional state
over the year 2003. related to the positive or negative appraisal of job experiences. Kreis
HMILs fully integrated state-of-the-art manufacturing plant and Brockopp (1986) suggested that job satisfaction is related to
near Chennai boasts some of the most advanced production, quality self-perception of needs fulfillment through work.Valentine et al.,
and testing capabilities in the country. In continuation of its (2002) revealed Employees who are committed to their organizations
investment in providing the Indian customer global technology, HMIL may easily accept and adhere to the organizational objectives and
has announced plans for its second plant, which will produce goals
150,000 units per annum, raising HMILs total production capacity to Culture historian Raymond Williams (1992) defined culture as
400,000 per annum by 2007. The plant will be built on a 2.1 million whole way of life, or structure of feeling. It is a set of signs and rules
square meter site adjacent to the existing facility with an investment for their use that signal how we might differ from another. And it is
of $450-$500 million on its new integrated facility. HMIL is investing also a set of signs and rules about rubbing along or not depending
to expand capacity in line with its positioning as HMCs global export on the particular cultural convention of that place and time. Some
hub for compact cars. Apart from expansion of production capacity, cultures affirm their existence by thumping anyone who breaks its
HMIL plans to expand its dealer network, which will be increased rules.
36 Sirajudeen M et al.,

Mckenzie (1994) defined culture as the use of artifacts and RESEARCH METHODOLOGY
rituals to pass on notions of identity. These resources of identity Collection of data
sustain structures of feeling that organize and make sense of
everyday life. It has to do so under the extra ordinary pressure of the This study involves collection of primary data from the
modern division of labour, which fragments peoples experience, employees of Hyundai. This survey method is used considering the
such that people are always having to negotiate with each other a size of the universe and time factor. Data are collected through
cultural politics that allow different bits of identity to co-exist sounds structured Questionnaire. Questionnaire has been designed and
impossible, but it gets even harder when culture finds itself circulated personally administered
and negotiate not just through media that can simultaneously reach
millions. Sample size
Schein (1983), believes that an organizations current
customs, traditions, and general ways of doing things are largely due The universe of the study consists of employees of Hyundai
to what it has done before and the degree of success it has had with with a total number of 105. Out of the total population data could be
those endeavors. This leads us to the ultimate source of an collected from 100 persons.
organizations culture: its founders. The founders of an organization
traditionally have a major impact on that organizations early culture. ANALYSIS AND INTERPRETATION
They have a vision of what the organization should be. They are
unconstrained by previous customs or ideologies. The small size As the questions generate direct information the data were
founders imposition of their vision on all organizational members. analyzed using Statistical tools such as,Simple percentage and
Weighted average(Table. 1)

Table 1. Opinion about the organizational factors with respect to employees behavioral aspects.
S.No. Factors Weightage Score
1. I am highly involved in my work 4.21

2. I have the ability to manage my own work 4.24

3. The people I work with cooperate to get work done 3.89
4. My team members have a good interpersonal relationship with me 3.80
5. My boss consults me on important maters 3.47
6. My skills and abilities are utilized effectively by the company 3.61
7. My capabilities are viewed as an important source of competitive advantage 3.49
8. My work related suggestions are valued 3.50
9. The organization values diversity 3.67
10 There is a clear and consistent set of values 3.65
11 When disagreements occur, I work hard to achieve win-win solutions 3.82
12 It is easy for me to reach consensus, even on difficult issues 3.65
13 I feel happy to work with people from other parts of the organization also 4.07
14 It is easy for me to coordinate with different departments of the organization 4.24
15 I respond well to the organizational changes 4.31
16 I continually adopt new and improved ways to do work. 4.06
17 The companys current activities reflect a strong focus on clients 3.79
18 I am given a real opportunity to improve my skills in this organization 3.82
19 I view failure as an opportunity for learning and improvement 3.93
20 There is a clear mission that gives meaning and direction to my work 3.75
21 I am clear with the organizations long-term purpose and direction 3.90
22 I have clear idea about my companys goal 4.07
23 I continuously track my progress against the stated goals 3.95
24 I have a shared vision of what the organization will be like in the future 4.12
25 Organizations vision creates motivation for me 3.94

Inference
FINDINGS, SUGGESTIONS AND CONCLUSION
From the above table (1) it is clear that most of the Major findings
respondents gave more weightage for the statement I respond well
to the organizational changes, secondly respondents give more Majority (53%) of the respondents strongly agreed that they are
weightage for two statements I have the ability to manage my own highly involved in their work.
work & It is easy for me to coordinate with different departments of
Sizable number (47%) of the respondents strongly agreed that
the organization , third weightage for statement I am highly involved
they have ability to manage their own work.
in my work, fourth weightage for the statement I have a shared
vision of what the organization will be like in the future and the fifth Majority (65%) of the respondents agreed that the people they
position is for two statements I feel happy to work with people from work with are cooperating to get work done.
other parts of the organization also & I have clear idea about my
Sizable number (41%) of the respondents agreed that they have
companys goal.
good relationship with other members.
International Multidisciplinary Research Journal 2012, 2(7):34-37 37

I respond well to the organizational changes.

Half (50%) of the respondents are neutral that their boss consult
them on important matters.
SUGGESTIONS
Majority (56%) of the respondents agreed that the company
1. In training programmes practical sessions must receive greater
utilizes their skills and abilities effectively.
emphasize.
A good number (39%) of the respondents agreed that their 2. The management may enhance the frequency of employees
capabilities are viewed as an important source of competitive feedback on their performance.
advantage.
3. Now, only the employees who belong to committees can
Sizable number (44%) of the respondents agreed that their work participate in decision-making. The management may
related suggestions are valued by the company. encourage all the employees to participate in decision-making
Half (50%) of the respondents agreed that the organization process.
values diversity.
CONCLUSION
A good number (35%) of the respondents agreed that there is
clear and consistent set of values in the organization. The study about the organizational culture and behaviour on
Majority (58%) of the respondents agreed that while employees reveals that the workers were satisfied with their ability,
disagreements occur they work hard to achieve win-win co-operation, team work, involvement, supervisors, utilization of their
solutions. skills and rewards etc. They are highly satisfied with the current
culture of HMIL. Because of this favourable culture the employees
Sizable number (49%) of the respondents agreed that its easy show positive behaviours like high involvement, highly commitment
for them to reach solutions even on difficult issues. to the organization, highly motivated and highly flexible to the
Sizable number (44%) of the respondents strongly agreed that organizational changes etc.
they feel happy to work with people from other parts of the
organization also. REFERENCES
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Most of the respondents gave more weightage for the statement