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International Journal of Civil Engineering and Technology (IJCIET)

Volume 9, Issue 4, April 2018, pp. 110–125, Article ID: IJCIET_09_04_014

Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=4

ISSN Print: 0976-6308 and ISSN Online: 0976-6316

© IAEME Publication Scopus Indexed

ORGANIZATIONAL CULTURE AND ITS

IMPACT IN INDIAN CONSTRUCTION

INDUSTRY- A CASE STUDY

Amartya Maiti

P.G Student, M.Tech CEM, Civil Engineering Department,

SRM Institute of Science and Technology, KTR Campus, India

B. Indhu

Assistant Professor, Civil Engineering Department,

SRM Institute of Science and Technology, Kattankulathur, Chennai, India

ABSTRACT

Delay in construction projects being a very common problem that affects the

construction industry and economical growth of the country. Small scale construction

companies in India have been blamed for poor execution and low feasibility regarding

quality and benefit in the characteristics of difficulties and vulnerabilities coming

about because of the quick changing financial condition. This study hopes to research

the association between the organizational culture and the impact of organizational

culture on construction in small scale construction companies. A questionnaire survey

was regulated in small scale construction companies situated in two different regions

in India for collecting information on their organizational culture and the measure of

deferral and cost invade that they involvement in their task. In the course of recent

decades, organizational culture has been developed as an essential issue in

construction companies. Construction organizations should try and follow a "healthy

and sound" organizational culture with a specific end goal to expand profitability,

development, effectiveness. An examination of the different elements influencing the

effective finishing of task in small scale construction companies is done, and

comparison of the organizational culture between the two regions (Chennai and

Kolkata) inside immense socially broadened and culturally diversified India have been

performed. It was found from this research that both the study areas follows the

“market” type of organizational culture where the focus lingers around getting the

project done by any means, with a high competition to reach the end goal. This

prominence on winning keeps the organization together. This relationship could be

helpful to develop and perpetuate an authoritative organizational culture that can be

relied upon to diminish venture postponement and increase efficiency.

Keywords: organizational culture, construction delay, organizational culture

assessment.

Amartya Maiti and B. Indhu


Cite this Article: Amartya Maiti and B. Indhu, Organizational Culture and its Impact

in Indian Construction Industry- A Case Study, International Journal of Civil

Engineering and Technology, 9(4), 2018, pp. 110–125.

http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=4

1. INTRODUCTION

The Construction Industry of India gives a share of around 19% of the national GDP

(contributing an approximate amount of US$ 308 billion in 2011-12). This can be a indicator

that construction companies in India plays a very vital role in the gross development of the

nation. [[31]]. In the present very focused financial condition, the requirement for finishing

the construction projects within the estimated cost and time with a high level of performance

in execution is becoming vital criteria from the owners and clients [[2]]. Postponement of the

undertaking projects has dependably been one of the critical issues in the construction

industry. Postponement of projects in a development venture has serious outcomes on the

greater part of the undertaking objectives [[10];[18]]. Despite the issues explored; magnitude

of postponement of projects, causes, and remedies varies in different countries [[23]; [12]].

There are causes, like unfavorable weather conditions or shrinking economy that are outside

the capacity to be controlled by the project participants; problems like payment postponement,

changes in design which cannot be restrained by the proprietors; contractor related problems

like unspecialized labours with limited experience, poor scheduling, poor site management

skills, financial difficulties etc; which effects the progress of any construction. There are

many other factors like late delivery of materials, inaccurate inventory management,

equipment breakdown, contract related issues, natural disaster, etc. which effects the progress

of the project [[5];[14];[27]]. Studies uncover diverse reasons for postponement, which can

occur in the ventures within different nations or in the ventures inside a same nation. This

finding may be an indication that alongside the influences of national culture of the country,

which the construction company is a part of, the culture of the organization itself plays a

massive role in influencing the postponement or the cost overrun incurred in the construction

ventures. [[8]]. A healthy culture in an organizational influences the best approach to manage

the administration, leadership quality and decision making capacity of managers; and the

quality of communication and association in between the co-workers [[19]]. So it can be

assumed that there might be a relationship between the postponement of the construction

ventures by a company, and the organizational culture followed by that company, which

might vary from one country to the other.

Variety of cultures in an organization impacts the general development of the company, if

the culture isn't legitimately controlled by the best administrations of the association. Among

numerous issues, postponement and cost overwhelm are the significant two issues looked in a

development industry. Postponement in development ventures has extreme outcomes on a

large portion of the objectives that will be accomplished from the task.

Organizational culture includes qualities and practices that add to the remarkable social

and psychological environment of an organization. Organizational culture represents the

shared values, beliefs and principles of an organization. The organization's vision, values,

systems, assumptions, norms, actions, artifacts, environment, location, beliefs, and habit can

be the measuring standards for a culture inside an organization [[32]].

People spend much of their time working within organizations. The particular type of

organization doesn‟t make a difference. It must be perceived that all associations exist to

fulfill particular objectives. The qualities and the standards that are evolved within the

organization constitute a major element of the organizational culture followed by that

Organizational Culture and its Impact in Indian Construction Industry- A Case Study


company [[28]]. Qualities and Standards established by a particular organization are very

important for an organization since they provide a unifying force to tie the individuals of the

organization. [[9]]

None of the examinations talks about the relation between organizational culture and the

effects experienced in the projects due to variation of culture by the small scale construction

organizations inside different regions of India. It could be hypothetically assumed that the

organizational culture might impact delays and cost glut in the endeavours by the construction

organizations. Reducing delay in construction projects will successfully build development

profitability and will influence the economy emphatically. Understanding the interdependency

between the culture in construction organizations and its impacts in terms of delays, cost

overrun, productivity, etc; could be valuable in developing the proper organizational culture

that can lessen the postponement in development ventures. In India where the construction

industry has the national GDP offer of around 19%, it is imperative to investigate the

interdependency between organizational culture and its impacts that is experienced in the

development ventures by the construction companies. The principle goal of the investigation

is to fill this hole and to discover what sort of organizational culture is favoured in India's

focused and competitive market, what type of organizational culture small scale development

companies are following, and which culture is the best for increasing the productivity and

profitability of the development organizations.

Studies [[8]] uncover diverse reasons for postponement, which can occur in the ventures

within different nations or in the ventures inside a same nation. This finding may be an

indication that besides the influences of national culture, which the construction company is a

part of, the culture of the organization also plays a huge role in influencing the postponement

or the cost overrun incurred in the construction ventures. It additionally uncovers that the

organizational cultures in India have been expressed to take after a specific sort of

organizational culture (i.e. market culture). However, in a huge social broadened nation like

India, where different districts and states have distinctive ethnic decent varieties; the small

scale construction companies may have diverse sorts of organizational cultures.

With a specific end goal to explore the interdependency between the organizational

culture and the impacts in terms of postponement and cost overrun in the construction projects

between the two separate regions of India (Kolkata and Chennai), are researched in this

examination by surveying personnel involved in a particular construction company in the

individual areas. The two locales i.e. Kolkata and Chennai, that are drastically different from

each other regarding ethnic diversity, cultural diversity, and culture in construction; are the

best contender to be chosen for this investigation.

2. OBJECTIVE

To identify the factors affecting successful completion of project.

To compare the organizational culture between two regions inside India.

To recommend for modifications of organizational culture so as to enhance the overall

productivity of the organization

3. SCOPE

Construction Sites from two different regions in India (Chennai and Kolkata) are chosen.

Field survey of organizational cultures of small scale construction organizations will be done

in residential projects of the chosen study area.

Comparing the results, the best type of Organizational culture for Indian condition is inferred.



4. NEED FOR RESEARCH

There has been no such research performed to analyze the organizational culture between two

unique districts, in such a socially enhanced nation like India; been done before. Past

discoveries of the study performed so far was done regardless various geographical cultures

prevailing in India, and classifying India to follow a particular organizational culture as a

whole, leaving behind the organizational culture of various regions in India. So an exploration

is being done to break down whether diverse districts in India have distinctive Organizational

Culture.

5. LITERATURE REVIEW

The artifacts, norms and espoused values and beliefs are mainly affecting the organizational

culture. The subculture of different individual acts as subsets of organizational overall culture

and reflects the occupational identities of groups. The different elements of organizational

culture influencing the transfer of knowledge in between management levels of a project

based organization can be studied. As per studies, project managers stated clearly that, when

knowledge and information was reused viably, numerous venture related issues and problems

could be avoided, and this might led to decreasing reworks, expanses, and waste [[30]].

Objective setting and achievement, and team orientation are the two most profoundly

organizational culture factors in construction. The artifacts of any construction company have

been arranged into a seven-factored organizational culture framework likely, objective setting

and achievement, team orientation, correlation and incorporation, performance emphasis,

innovation, participation of members and reward orientation which can be the regulating

criteria for assessing the organizational culture [[22]]. Knowledge management is also found

crucial and beneficial for maintaining a organizational culture of any organization; which

does not work without the trust in between the members of an organization [[20]].

Behaviour is also shown as the main reason or the core element in understanding the

culture of the organization. B-P-O cycle or Behaviour performance outcome cycle is

elaborately describes how performance is always linked with behaviour which is directly

linked with the outcome of the organization [[21]]. Tools and criteria for assessing the cultural

diversity within a organization and its effects in multinational companies are also found and

its effect on organizational culture and the impact of multicultural employees in a

organization is assessed. Researchers have concluded the impact of linguistic diversity on the

effectiveness of task coordination for multinational construction companies [[26]]. Competing

values for understanding the organizational culture has a strong conceptual validity and a

framework for understanding organizational culture that has been presented. Managers can

use the framework to guide them in creating a strong culture in their organization [[29]].

From the studies, it was found that postponement in construction ventures occurs mainly

during the building phase or the construction phase of a project, with the involvement of one

or more parties involving in the postponement of the project [[15]]. Postponement of the

project also occurs due to flaws in planning and designing in the initial phases of

development, which impacts the overall progress of the project [[17]].

6. THEORETICAL BACKGROUND

Researchers and professional consider the culture of an organization to be a important factor

governing the company's' productivity which prompted a few examinations throughout the

years [[6]; [9]; [25]]. “The culture of a group is a pattern of shared basic assumptions that was

learned by a group as it solved its problems of external adaptation and internal integration,

that has worked well enough to be considered valid and, therefore, to be taught to new



individuals as the right method to see, think and feel in connection to those issues", as defined

by Schein [[25]].

There are a few investigations that propose hypothetical models and estimation

apparatuses for organizational culture, such as Organizational Profile Questionnaire (OPQ),

Cultural Assets Profiles (CAPS), Organizational Culture Profile (OCP); Personal, Customer

Orientation and Cultural Issues (PCOC); Organizational Culture Inventory (OCI); and

Organizational Culture Assessment Instrument (OCAI) [[8]]. Various examinations have been

endeavoured and some of these speculative estimation models have been applied to, finance,

health, construction and different other kinds of associations.

Analysts and experts of various fields have recognized the significance to realize the type

of organizational culture practiced in the execution and measuring the performance of

organizations [[4]; [9]]. Most of the previous explorations have been concentrated on the

culture of the construction-related organizations in different nations and the consequences due

to it. The past research discloses that this type of research has never been discussed and

surveyed in Indian conditions. This investigation was attempted somewhat in light of the

nonattendance of such research.

Despite the fact that there are many theoretical and estimation models for determining the

culture followed by an organization, analysts utilizes "Organizational Culture Assessment

Instrument" (OCAI), a measurement tool, approved, and all round appreciated tool for

measuring the culture followed by any organization, and can be utilized widely over a wide

range of settings.

OCAI, developed by Cameron and Quinn's (1999), characterizes four noteworthy

organizational cultures. Every organization has its own mix of these four types of

organizational culture, which can be identified by completing a concise questionnaire survey.

The distinctive four type of organizational culture are “clan” culture, “adhocracy” culture,

“hierarchy” culture, and “market” culture.

Clan Culture:

This workplace is a well disposed one. Individuals have a lot of similarities, and it‟s like a

huge family. The pioneers or the official are viewed as coaches or mentors. The organization

is held together by allegiance. There is a great participation among the individuals of the

organization. Success is defined by satisfying needs of the clients and caring for the people.

The organization promotes teamwork, cooperation between participants, and harmony.

Importance to teamwork, participation, morale and loyalty

Adhocracy Culture:

This is a dynamic and innovative workplace. Employees take chances and risks. The pioneers

or the official are viewed as innovators and risk takers. People like to perform experiments.

The long term goal is to grow and develop new assets for the organization. The organization

promotes individual initiation and freedom.

Importance to Creativity, Innovation, Individual Initiation

Market Culture:

This is an outcome based association that stresses completing works and getting things done.

Pioneers are hard drivers, makers, and opponents at same time. Individuals are aggressive and

focused around objectives. They are tough and have high expectations. The prominence on

winning keeps the organization together. Market infiltration and stock are meanings of



achievement. Competitive prices and market leadership are important. The organization style

depends on rivalry.

Focus on getting job done, with goal oriented competition

Hierarchy Culture:

This is a formalized and organized workplace. Pioneers are pleased with their effectiveness

based coordination and association. Keeping the association working easily is generally

critical. Formal guidelines and arrangements keep the association together. The long term

objectives are steadiness and results, paired with efficiency and smooth execution of

assignments.

Importance to follow and maintain the formally introduced Rules and Policies at any cost.

7. METHODOLOGY

Figure 1 Methodology Flowchart

The methodology (see Fig. 1) is described in the following steps for the procedures of

case study. Keeping in mind the end goal to continue, it is estimated that correlation exists

Study Area: Organizational Culture

Literature Review

Organizational Culture types and

characteristics Analysis of factors affecting

performance of project

Formulation of Questionnaires for:

1) OCAI tool

2) Problems faced in projects

Collection of Data from the selected regions

Analysis of Data for the regions respectively

Comparison between organizational culture of the regions

Effect of Organizational culture on the project performance and output

Recommendations



between the organizational cultures and its effects in terms of postponement and cost overruns

in the construction endeavours of any organization. Firstly, for testing this esteemed

hypothesis, a questionnaire was created to collect data about the culture followed by the

organizations and the effects in terms of rate of postponement and cost overrun that the small

scale construction companies experiences in their endeavours. The questionnaire was

fabricated with the assist from the literature reviews and was split into two sections.

The first part of the questionnaire is utilized in documentation of the information about the

culture of the organizations, given by the individual respondents of a particular organization.

The OCAI tool is used for assessing the culture of these organizations.

The relative significance of the culture types in each region of the study area (i.e., the

Kolkata and the Chennai regions of India) are estimated by gathering the evaluation forms

from each respondents, who are asked to mark the six attributes or dimensions of

organizational culture, as described in Cameron and Quinn (1999). Respondents filled the

questionnaire by rating four proclamations which assesses each attribute. The respondents

have to fill and split 100 points among the four proclamations for all the six dimensions of

organizational culture. For a better perception of OCAI, the assertions used for evaluating the

qualities and attributes for organization culture, and the computation of the scores,

proofreaders are directed to Cameron and Quinn (1999) [[6]].

In the second part of the questionnaire, interviewees rated the problems are facing in their

construction sites, in a 5 point liker scale. They were also asked to state the probable

magnitude of postponement and cost overrun in the last venture in which they were involved

expressed as a percentage of the planned project duration, and cost estimation till that day.

The polls are to be flowed to development organizations of the selected study area, i.e.

companies in Chennai and Kolkata region.

The questionnaires are circulated to construction companies of the selected study area, i.e.

companies in Chennai and Kolkata region. Each company should have a minimum of 4

respondents, each from all organizational levels (owners, contractors and engineers) of that

organization. Questionnaires were transmitted to 20 construction companies of Kolkata and

17 construction companies of Chennai. Response from 8 companies from Kolkata were

returned yielding reaction rate of 40% and 7 companies from Chennai at a reaction rate of

41.2%, are gathered. Respondents have to fill up how they feel about their association now as

'Now' and how they will see their association in future as „Preferred‟. An excel sheet has been

planned according to OCAI to break down the obtained information manually.

Finally, statistical analysis (T-test) is computed on the gathered information, to discover

the correlation in-between the organizational culture and its effects in terms of postponement

and cost overrun of the projects. Firstly, the gathered information were dissected by

calculating the arithmetic mean scores of the four measurements of organizational culture,

(i.e., clan, hierarchy, market, and adhocracy), obtained from the respondents of the Kolkata

and Chennai organizations separately. Then the T- test was performed to look at the contrast

in the measurements of organizational culture in construction companies situated in the

Kolkata and Chennai regions. A T-test is a parametric type of statistical examination that

analyses two populations‟ means through the use of statistical examination. A t-test with two

independent samples (the Kolkata and the Chennai data) is used with small sample size,

testing the difference between the samples when there are two independent random samples

from these populations (i.e. the Kolkata and the Chennai sample population). The null

hypothesis is that there is no contrast between the organizational culture of the Kolkata and



Chennai populations. In order to test this null hypothesis, the “t” value is calculated by the

following formulas [[33]]:

[

√

] t-distribution with (n1+n2-2) degree of freedom

Where,

x1=

, x2=

S2=

S12=

(

2

S22=

(

2

Where, x1, x2 = sample means of Kolkata and Chennai region, S2 = sample variance, n1 ,n2

= sample sizes of Kolkata and Chennai region respectively. From the ''t'' value obtained, it can

be chosen whether to dismiss or acknowledge the null hypothesis. Level of significance

chosen is 0.05 (i.e. α = 0.05).

8. RESULT AND DISCUSSION

8.1. Comparison of organizational culture between Kolkata and Chennai region

of India

Figure 2 Difference of cultural profiles between Kolkata and Chennai regions

It was concluded from this examination that "market" type of organizational culture

dominates in the small scale development companies located in both the selected study area,

0

10

20

30

40

Flexibility &discretion

Adhocracy

Externalfocus

Market

Stability &control

Hierarchy

Internal focus

Clan

Overall Culture Profiles

KOLKATA CHENNAI



i.e. Kolkata and Chennai region (see Fig. 2). The characteristic features of “market” culture

following companies are that their focus lingers around getting the work done by any means,

with a high competition to reach the end goal. This prominence on winning keeps these

organizations together. This finding is steady with Hofstede (2010) [[16]] dispute that Indian

culture has both socialistic and unorthodox or individualistic attributes because of their

inclination for a bigger social system.

Form the results of the T- test, performed to examine the contrast in the dimensions of

organizational culture of construction companies located in the Kolkata and Chennai regions

of India; it was observed that we should accept the null hypothesis. It was found that there is

no such difference observed statistically at α = 0.05 in the dimensions of organizational

culture. The highest values of the mean scores are found at the "market" type of

organizational culture for both the selected regions inside India marked with '*' as given in

Table1.

Table 1 Mean Scores of Elements of Organizational Culture

Finding no statistical difference between the Kolkata and Chennai region of Indian

construction companies, it can be reasoned that there is no huge distinction of the

organizational cultures honed in this two regions of India. The mean score of the “market”

culture in both the regions are comparatively higher than the other types of organizational

culture, concluding that both the regions follow dominantly “market” type of organizational

culture. It can also be stated that India, being a developing a nation, follows “market” culture.

With a specific end goal to look at the organizational culture of the interviewees‟

construction companies more thoroughly, the scores of each of the individual atributes of

organizational culture were plotted (see Fig 3). The differences of dominant characteristics

graph is given in Fig 3a; organizational leadership in Fig 3b; management of employees in

Fig 3c; organizational glue in Fig 3d; strategic emphasis in Fig 3e; and criteria for success in

Fig 3f, in between the Kolkata and Chennai regions. The plots for each of the individual

attributes of organizational culture demonstrate the degree to which attributes reflect the

controlling culture between the regions; and the overall cultural profile (Fig 2) gives the idea

about the type of organizational culture practiced in the selected study areas.

KOLKATA CHENNAI KOLKATA CHENNAI KOLKATA CHENNAI KOLKATA CHENNAI

Dominant Charectaristics 26.625 19 24.5 15.28 29.62 37.42 22.25 14.72

Organizational Leadership 23.37 16.85 24.125 12.28 32.75 25.28 20.25 31.85

Management of Employees 27 28.42 18.75 19.14 33 24.57 21.625 14.28

Organizational Glue 25.75 22.85 19.125 17.85 34.5 29.28 21.125 16.43

Strategic Emphasis 22.375 19 20.75 21.43 31.75 30.42 26 18.57

Criteria for Success 26 20.14 18.375 11.85 35.75 21.43 20.25 32.14

CULTURAL TYPES

Clan Adhocracy Market Hierarchy

20.75 16.2 32.75* 28.28* 21.625 21.28Overall organizational culture Profile 24.62 21

Dimensions of Organizational culture



Figure 3a The difference of the dominant characteristic feature of the organizational culture

Figure 3b The difference of the organizational leadership feature of the organizational culture

0

5

10

15

20

25

30

35Flexibility & discretion

Adhocracy

External focus

Market

Stability & control

Hierarchy

Internal focus

Clan

1. Dominant Characteristics

KOLKATA CHENNAI

05

1015202530354045


Adhocracy

External focus

Market

Stability & control

Hierarchy

Internal focus

Clan

2. Organizational Leadership

KOLKATA CHENNAI



Figure 3c The difference of the employee management feature of the organizational culture

Figure 3d The difference of the organizational glue feature of the organizational culture

0

10

20

30

40

50


Adhocracy

External focus

Market

Stability & control

Hierarchy

Internal focus

Clan

3. Management of Employees

KOLKATA CHENNAI

0

10

20

30

40

50


Adhocracy

External focus

Market

Stability & control

Hierarchy

Internal focus

Clan

4. Organization Glue

KOLKATA CHENNAI



Figure 3e The difference of the strategic emphasis characteristics of the organizational culture

Figure 3f The difference of the the criteria of success feature of the organizational culture

8.2. Connection between the culture of organizations in the construction

organizations and its impacts on development

As indicated by the outcomes (see Table1), organizations of Kolkata and Chennai regions of

Indian have the similar dominant organizational culture. This might be the reason why all the

reviewed development companies encounter relatively same level of delay in their projects. It

is worth investigating the connection between organizational culture and postponement in

construction. The discoveries displayed in Table 2a demonstrate that the construction

organizations of both the locales encounter 10-15% postponement for finishing their

0

10

20

30

40


Adhocracy

External focus

Market

Stability & control

Hierarchy

Internal focus

Clan

5. Strategic Emphases

KOLKATA CHENNAI

0

10

20

30

40


Adhocracy

External focus

Market

Stability & control

Hierarchy

Internal focus

Clan

6. Criteria of Success

KOLKATA CHENNAI



endeavours in time, with 5-10% cost overrun, as in Table 2b. This finding shows that Indian

construction companies are outperformed and less efficient in completing projects on

scheduled budget and time.

Table 2a Percentage of Delay

Delay percentage in the Ongoing projects by respondents

Percentage delay Kolkata Chennai

in contract

duration Number of Percentage Number of Percentage

Respondents Respondents

0-5% 1 12.5 1 14.5

5-10% 1 12.5 0 0

10-15% 4 50 4 57

15-20% 2 25 2 28.5

>20% 0 0 0 0

Total 8 100 7 100

Table 2b Percentage of Cost Overrun

Cost Overrun percentage in the Ongoing projects by respondents Cost overrun in Kolkata Chennai

percentage of Number of Percentage

Number of Percentage

contract cost Respondents Respondents

0-5% 2 25 2 28.5

5-10% 3 37.5 3 43

10-15% 2 25 2 28.5

15-20% 1 12.5 0 0

>20% 0 0 0 0

Total 8 100 7 100

According to the survey conducted, the main problems faced by the construction

companies of both Kolkata and Chennai regions are given (see Table 3). According to the

owner, contractor and engineers of the organizations, their perspective of reason for the

postponements in their development organizations were asked and assembled. Assuming that

the occurrence and intensity of delays caused by uncontrollable events such as adverse

weather conditions, the maximum responses for causes of delay, as per the experience, from

all the respondents are given in Table 3. These findings were similar to that as discussed in

Saraf D. D. 2013 [[24]]

As per the previous study between the U.S. and the Indian construction companies, it was

concluded that U.S. companies follow “clan” type of organizational culture, and their

productivity is much higher than Indian construction companies. The low percentage of

postponement is encountered by the “clan” culture dominated construction companies in the

U.S. This recommends that a development organization seeking after a “clan” culture possibly

can help prevent delays in their projects. According to the study, construction companies may

want to rekon practicing a “clan” culture to complete their assignments and endeavours as

planned. [[8]].

The disclosure of this examination allows a prevalent understanding of the association

between the culture of the organizations and postponement in construction ventures. The

findings from this study showed that “market” culture commanded development organizations

encounter generally more postponement in their undertakings. Cameron and Quinn (1999)

[[6]] gave recommendations for performing “clan” culture by “encouraging cooperation and



agreement in decisions”, “management of environment through teamwork”, “providing a

supportive work environment” and “discouraging a competitive work environment”.

9. CONCLUSIONS

With an aim to explore the interconnection between the culture followed by the organizations

and its impacts in Indian construction companies, the case study from the selected study area,

i.e. companies in Kolkata and Chennai region reveals that a connection exists between

organizational culture followed by the construction organizations and the impacts due to it,

mostly in terms of postponement and cost overrun, in their development endeavours. By the

information gathered by questionnaire survey from the respondents of the enterprises of the

selected study area (40% response rate from Chennai and 41.2% response rate from Kolkata),

and analysing the values by “T-test”, it was revealed that statistically the sample mean scores

do not differ much in between the two selected regions.

The survey results also propose that the type of culture followed by an organizational is

related with the postponement and cost overrun of the construction companies. The results

indicate that there is a 10-15% of postponement of the ventures with 5-10% cost overrun in

both the selected study area regions. This would be arguable that solely the organizational

culture affects the progress and productivity of the construction ventures; as there are many

other factors like late delivery of the materials, inaccurate inventory management, equipment

breakdowns, complex project issues, natural disasters, contracted related issues, etc.

The case study also reveals that our study area locations, i.e., North Indian city Kolkata

and South Indian city Chennai, both have the “market” type of Organizational Culture. From

the previous studies, it was concluded that the U.S. follows the “clan” culture, and the overall

productivity of the construction companies is much better than that of the Indian companies.

Hence it can be concluded that the “clan” culture is better for construction companies than

“market” culture. But for Indian companies, how would they perform with “clan” culture, will

there be any change in the productivity of the outcome, can be a future scope of research area.

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AUTHOR PROFILE

Amartya Maiti

M. Tech Student, Department of Civil Engineering, SRM Institute of Science and

Technology-Chennai, 603203, India, E-mail: [email protected]

B. Indhu

Assistant Professor, Department of Civil Engineering, SRM Institute of Science and

Technology- Chennai, 603203, India, E-mail: [email protected]

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