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THE IMPACT OF ORGANIZATIONAL CULTURE ON HUMAN RESOURCE MANAGEMENT PRACTICES IN PAKISTAN:
A COMPARATIVE STUDY OF PAKISTAN INTERNATIONAL AIRLINE CORPORATION (PIAC) AND NATIONAL
INSURANCE COMPANY LIMITED (NICL)
A Thesis Submitted
by Aftab Ahmad Mangi
For the Degree of Doctor of Philosophy (PhD) in Public Administration
Under the supervision of
Professor Dr. Hakim Ali Kanasro
DEPARTMENT OF PUBLIC ADMINISTRATION FACULTY OF SOCIAL SCIENCES
UNIVERSITY OF SINDH, JAMSHORO
2012
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THE IMPACT OF ORGANIZATIONAL CULTURE ON HUMAN RESOURCE MANAGEMENT PRACTICES IN PAKISTAN:
A COMPARATIVE STUDY OF PAKISTAN INTERNATIONAL AIRLINE CORPORATION (PIAC) AND NATIONAL
INSURANCE COMPANY LIMITED (NICL)
PhD Thesis
By
Aftab Ahmad Mangi
A Thesis submitted to the University of Sindh, Jamshoro. In partial fulfillment of the requirement of the Degree of Doctor of Philosophy (PhD) in Public Administration
under the supervision of
Professor Dr. Hakim Ali Kanasro
Institute of Commerce University of Sindh, Jamshoro.
DEPARTMENT OF PUBLIC ADMINISTRATION FACULTY OF SOCIAL SCIENCES
UNIVERSITY OF SINDH, JAMSHORO
2012
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In the Name of
Allah
Who is most Merciful and most Beneficent
iv
Dedicated to my
Father
Mother
Wife & Children
v
DECLARATION
I hereby declare that this thesis has been prepared and composed entirely by
myself and that all the work carried out is also my own except where
specifically stated.
Aftab Ahmed Mangi
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CERTIFICATE
This is to certify that Mr. Aftab Ahmed Mangi S/o Ali Anwar Mangi has carried
out research on the topic “The Impact of Organizational Culture on Human
Resources Management practices in Pakistan: A Comparative Study of
Pakistan Inter National Airline Corporation (PIAC) and National Insurance
Company Limited (NICL)”, under my supervision and his work is original and
distinct and his dissertation is presented as warranty to the University of Sindh
Jamshoro for the Award of the Degree of Doctor of Philosophy in Public
Administration
Professor Dr. Hakim Ali Kanasro SUPERVISOR
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ACKNOWLEDGMENT The whole family suffers when one is doing an immense work of research like this. My family including son, daughters and wife they all have contributed towards this work when I recall and recognized that it was actually their time, which I spent on this work. Naturally my all attention was towards this piece of work and I couldn’t give my family the proper attention, which they needed. Though my wife’s contribution is great because she took all the efforts to look after the whole family and I was given a full length of time and space to utilize it properly in this research work.
I express my sincere affection and gratitude to my all family members and especially my Father Ali Anwar Mangi who always encouraged me and gave enthusiasm during my research work and writing of this thesis.
I express my gratitude to the person who gave me this valuable suggestion and hives my ideas and helped me to organize the research topic and he accepted to be my Research supervisor of PhD research program. Yes, I whole heartily recognize & acknowledge the cooperation and high level scholarly guidance of Prof. Dr. Hakim Ali Kanasro, who extended some extra ordinary attention to my work and gave me, full time. I could not have moved an inch forward without his cooperation, so I am fortunate in taking this liberty and now I have completed and passed the milestone successfully.
I am thankful to my friends who helped me and support me to complete my work; Professor Dr. Muhammad Bux Burdi, Abdul Jabbar Keerio, and Javed Ahmed Solangi and Abdul Fatah Doudpoto they have extended cooperation to me at various phases of my research work. Specially, I am indebted to those colleagues & friends who extended full cooperation to start this new project and research work of such kind which has been considered as un-charming and boring one.
I also thank to my best friends Mr. Badar Soomro, Mr. Atta-ur-Rahman Memon, and Professor Dr. Zareen Abbasi for their cooperation and valuable suggestions and encouragement to complete my work successfully. I am also indebted to the staff of central Library University of Sindh, Jamshoro, who guided and encouraged me to pursue this research work and they fully cooperated to me with their sincere suggestions in improving my work. I am also grateful to all those uncountable personalities who encouraged me to complete this wok, which according to them is of a great national importance.
Aftab Ahmed Mangi
Assistant Professor
Department of Public Administration
University of Sindh, Jamshoro
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TABLE OF CONTENTS
DESCRIPTION PAGES
Title i Dedication iv Declaration v Certificate vi Acknowledgement vii Contents viii Abbreviations and Acronyms xii List of Tables xiii List of Chart xiv Abstract xv CHAPTER-1 INTRODUCTION
1.1 Background 1 1.2 Statement of the problem 2 1.3 Scope of the study 4 1.4 Objectives of study 5 1.5 Hypothesis 6 1.6 Methodology 6 1.7 Organization of study 7 1.7.1 Chapter 1: introduction 7 1.7.2 Chapter 2: literature review 7 1.7.3 Chapter 3: research methodology 8 1.7.4 Chapter 4: description of the organizations under study 8 1.7.5 Chapter 5: data-analysis- presentation of results 8 1.7.6 Chapter 6: comparative analysis of the results of PIAC and NICL. 9 1.7.7 Chapter 7: recommendations and suggestions 9 1.8 Chapter Summary 9
CHAPTER-2 REVIEW OF LITERATURE
2.1 Introduction 10 2.2 History and Background 10 2.3 Emergence of Human Resource Management as modern discipline 11 2.4 The HRM and social development theories 14 2.5 American concept of HRM 15 2.6 Functions and areas of HRM 16 2.7 HRM and globalization 18 2.8 Culture 20 2.9 Values 22 2.10 Assumptions and Beliefs 22 2.11 Culture And Values 22 2.12 Role of National Culture in shaping behavior organizations and
individuals 23
2.13 Organizational Culture 26
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2.14 Organizational Culture is combination of Subcultures 29
2.15 Strong and weak cultures 30
2.16 Healthy organizational cultures 31 2.17 Impact of organizational cultures on employees perform 32 2.18 The Impact of Culture on organization 34 2.19 HRM and Organizational Culture 35 2.20 Organizational Behavior 36 2.21 Organizational Culture and Values 36 2.22 Theories of organization and HRM 37 2.23 HRM and Work related values in Pakistan 39 2.24 Chapter Summary 42 CHAPTER-3 RESEARCH METHODOLOGY
3.1 Introduction 43 3.2 Research Design 43 3.2.1 Merits 44 3.2.2 Demerits 45 3.3 Selection of Sample Size 45 3.4 Biographical Part of Questionnaire 46 3.5 Other Parts of Questionnaire 46 3.5.1 Denison Organizational Culture Survey 46 3.5.2 Dimensions of the Survey 47 3.5.3 Socio-Cultural Adaptation 47 3.5.4 Human Resource Management Practices 47 3.5.5 Organizational Culture/ Behavior 48
3.6 Description of Rating Scale 48 3.7 Reliability and Validity of the Organizational Culture Survey 49 3.8 Statistical Methods 50 3.8.1 Descriptive Statistics 50 3.8.2 Inferential Statistics 50 3.8.3 Pearson Correlation 50 3.8.4 Analysis of Variance (ANOVA) 51
3.9 Chapter Summary 51 CHAPTER-4 DESCRIPTION OF THE ORGANIZATIONS UNDERSTUDY
4.1 Introduction of (PIAC) 52 4.2 Human Resource Management Practices in PIAC 52 4.3 Recruitment and Selection in PIAC 52 4.4 Eligibility Criteria 53 4.4.1 Qualification 53 4.4.2 Age Requirement 53 4.4.3 Physical Requirement 53
4.5 Selection Procedure 53 4.5.1 Physical Test 54 4.5.2 Grooming Test 54 4.5.3 General Test 54
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4.6 Training and Development 55 4.6 .1 Functions of Training Centre 55 4.6 .2 Courses Offered at Training 55 4.6.3 Performance Measures and Standards 56 4.6.4 Evaluator Training 56 4.6.5 Guidelines for Improvement 56
4.7 Compensation in (PIAC) 57 4.8 PIA’s Mission Statement 57 4.9 PIA’s Vision Statement 57 4.10 Functions of Pakistan International Airline Corporation (PIAC) 57 4.11 Objectives of Pakistan International Airline Corporation 58 4.12 Introduction (NICL) 58 4.13 Human Resource Management Practices in NICL 59 4.14 Recruitment and Selection 59 4.15 Eligibility Criteria 60 4.15.1 Qualification 60 4.15.2 Age Requirement 60 4.15.3 Physical Requirement 60
4.16 Selection Procedure 60 4.16.1 Training and Development 60 4.17.2 Performance Measures and Standards 61 4.17.3 Evaluator Training 61 4.17.4 Guidelines for Improvement 61
4.17 Compensation 62 4.18 Vision of NICL 62 4.19 Future Role of NICL 624.20 The Objectives of National Insurance Company Limited (NICL) 63 4.21 The Functions of National Insurance Company Limited (NICL) 63 4.22 Training and Recruitment 64 4.23 Following are the Coverage which NICL offers 65 4.24 Providing Security to Consumers 66 4.25 How to Obtain this Insurance Cover 67 4.26 The way to Buy this Insurance in Abroad 67 4.27 How To Make A Claim 68 4.28 Chapter Summary 68 CHAPTER-5 DATA ANALYSIS AND PRESENTATION OF RESULTS
5.1 Introduction 69 5.2 Demographic Information Of The Sample 69 5.3 Analysis of Demographic Data, Results and Characteristics of The
Sample (n=244) of PIAC 70
5.4 The Characteristics Of Sample (NICL) 74 5.5 Inferential Statistics Of (PIAC) 78 5.5.1 Socio-Cultural Adaptation Scale (PIAC) 79 5.5.2 Inferential Statistics Of HRM of (PIAC) 81 5.5.3 Inferential Statistics Of Organizational Culture (PIAC) 85 5.6 Inferential Statistics Of Hrm (NICL) 88 5.6.1 Socio-Cultural Adaptation Scale of (NICL) 89
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5.6.2 Inferential Statistics of Hrm Practices (NICL) 92 5.6.3 Inferential Statistics of Organizational Culture (NICL) 96 5.7 Chapter Summary 100 CHAPTER-6 COMPARATIVE ANALYSIS OF THE RESULTS OF (PIAC) AND (NICL)
6.1 Introduction 101 6.2 Comparative Analysis Of The Demographic Survey PIAC & NICL 101 6.2.1 Gender Distribution Of Respondents PIAC & NICL 102 6.2.2 Age-Wise Distribution of Respondents of (PIAC & NICL) 103 6.2.3 Department Wise Distribution of Respondents (PIAC & NICL) 104 6.2.4 Qualification Wise Distribution of Respondents Of (PIAC &
NICL) 105
6.7 Chapter Summary 111 CHAPTER-7 CONCLUSIONS AND SUGGESTIONS
7.1 Introduction 112 7.2 Conclusions 112 7.3 Suggestion 116
References 118 Appendix A: 135 Appendix B: 136 Appendix C: 137
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LIST OF ABBREVIATIONS
AGR Agree
ANOVA Analysis of Variance
ASTD American Society for Training and Development
BC Before Christ
CEO Chief Executive Officer
CV Convergent Validity
DAGR Disagree
DV Dependent Variable
ED Extreme Difficulty
GD Great Difficulty
Ha Alternative Hypothesis
HEC Higher Education Commission
Ho Null Hypothesis
HRM Human Resources Management
HRD Human Resources Development HR Human Resources
IDK I Don’t Know
IV Independent Variable
MBA Master of Business Administration
MD Moderate Difficulty
M Mean
NBP National Bank of Pakistan
ND No Difficulty
NICL National Insurance Company Limited
OCP Organizational Culture Profile
PhD Doctor of Philosophy
PIAC Pakistan International Air Line Corporation
SE Standard Error
SECP Securities and Exchange Commission of Pakistan
SD Slight Difficulty
Sig. Significant
SWAGR Somewhat Agree
SWDAGR Somewhat Disagree
SD Standard Deviation
UK United Kingdom
US United States
USA United States of America
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List of Tables # Titles P.No
Table 5.1 Variance and Standard Deviation of socio-cultural adaptation (PIAC) 79
Table 5.2 Analysis of Variance of COLUMNS of socio-cultural adaptation (PIAC) 80
Table 5.3 ANOVA of socio-cultural adaptation (PIAC) 80
Table 5.4 Correlation Between COLUMNS of socio-cultural adaptation Scale (PIAC) 81
Table 5.5 ANOVA: Rows Variance and Standard Deviation of HRM Practices (PIAC) 82
Table 5.6 Analysis of Variance of COLUMNS of HRM Practices (PIAC) 83
Table 5.7 ANOVA of HRM Practices (PIAC) 84
Table 5.8 Correlation Between COLUMNS of HRM Practices (PIAC) 84
Table 5.9 Analysis of Variance and Standard Deviation of Organizational Culture
PIAC
86
Table 5.10 Analysis of Variance of COLUMNS of Organizational Culture PIAC 87
Table 5.11 ANOVA of Organizational Culture PIAC 87
Table 5.12 Correlation Between COLUMNS PIAC 88
Table 5.13 Variance and Standard Deviation of socio-cultural adaptation-NICL 89
Table 5.14 Analysis of Variance of COLUMNS of socio-cultural adaptation-NICL 90
Table 5.15 ANOVA of socio-cultural adaptation- NICL 91
Table 5.16 Correlation Between COLUMNS- NICL 91
Table 5.17 ANOVA Rows, Variance and Standard Deviation of HRM Practices NICL 93
Table 5.18 Analysis of Variance of COLUMNS of HRM Practices NICL 94
Table 5.19 Nalysis of Variance of Hrm Practices (NICL) 94
Table 5.20 Correlation Between Columns of Hrm Practices (NICL) 95
Table 5.21 Analysis of Variance and Standard Deviation of Organizational Culture (NICL) 97
Table 5.22 Analysis of Variance of Organizational Culture (NICL) 98
Table 5.23 ANOVA of Organizational Culture (NICL) 98
Table 5.24 Correlation Between COLUMNS of Organizational Culture- NICL 99
Table 6.1 Comparative Analysis of Variance of Rows 106
Table 6.2 Comparative Analysis of Variance of Columns 107
Table 6.3 Comparative Analysis of F-Statistics and P-Value 107
Table 6.4 Comparative Summary of Results PIAC and NICL 108
xiv
List of Charts
# Title P.No.
Chart 5.1 Gender wise Distribution of Respondents (PIAC) 70
Chart 5.2 Age wise Distribution of the Respondents (PIAC) 71
Chart 5.3 Department wise Distribution of the Respondents (PIAC) 72
Chart 5.4 Distribution of Respondents According to Qualifications (PIAC) 73
Chart 5.5 Gender wise Distribution of Respondents (NICL) 74
Chart 5.6 Age wise Distribution of the Respondents (NICL) 75
Chart 5.7 Distribution of Respondents According to the Departments (NICL) 76
Chart 5.8 Distribution of Respondents According to Qualifications (NICL) 77
Chart 6.1 Gender Distribution of Respondents 102
Chart 6.2 Age Group of Respondents (PIAC & NICL) 103
Chart 6.3 Departments of Respondents (PIAC & NICL) 104
Chart 6.4 Qualifications of Respondents (PIAC & NICL) 105
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ABSTRACT This research is focused on the issues of organizational culture and its impact on the
human resources management (HRM) practices, especially in the organizations in
Pakistan. After a thorough literature review, the research objectives, methodology and
hypothesis were selected and through a questionnaire the selected organizations viz;
Pakistan International Air Line Corporation PIAC and National Insurance Company
Limited NICL) were investigated. Both are the public organizations where thousands
of the employees are working together those having different ethnic background,
languages and culture but they all have to adapt the organizational culture to carry on
their role efficiently and to see the impact of organizational culture on HRM practices
in Pakistan. A survey questionnaire was designed and used which was based on 5
point liket scale. The data analysis comprises on the characteristics of sample size the
demographic characteristics of the survey and the results shows that the majority of
the respondents are male, young, qualified and the research is concentrated on
marketing, management and technical staff. The data analysis for the ANOVA and
Correlation was carried on computer packages using the Excel program. Meanwhile
ANOVA was used to find out the level of significance of variance about the socio-
culture adaptation, human resource management and organizational culture in
organizations viz; PICL & NICL. To test and get the proper results some reliable
statistical methods such as descriptive statistics and inferential statistics were used for
this purpose the Pearson correlation and ANOVA are very important.
The results of P-value of socio-culture adaptation are statistically significant for PIAC
and NICL, that results of PIAC shows the p-value 0.00114, which is less than 0.05 at
significant level and this result have rejected the Null hypothesis of PIAC. The results
of NICL p-value is 0.7271 which is larger than 0.05 significant level that result have
accepted the null hypothesis. The hypothesis was “The socio-culture adaptation in
organization is statistically not significant for the organizational development”.
The result of p-value of HRM practices shows that the PIAC p-value is 3.42 on 0.05
significance level which accept the null hypothesis where as the results of NICL in p-
value is .009394 at 0.05 at significance level which rejects the null hypothesis that
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was “The organizational efficiency is significantly correlated with the socio-culture
adaptation and HRM practices in the organization.”
The result of organizational culture study shows that at the 0.05 significant level the
p-value of PIAC is 2.13 which accept the Null hypothesis and at NICL, the p-value is
4.8 which also accept the null hypothesis. The said hypothesis was “the positive
behavior of employees towards organizational culture in perceived to be significant
when organizations perform well” is accepted in both the organizations. The other
results of ANOVA have confirmed the results of p-value as mentioned in the study.
Key words human resources management, organizational culture, socio-culture
adaptation, organizational behavior, ANOVA, p-value, correlation, descriptive and
inferential statistics.
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CHAPTER-1
INTRODUCTION
1.1 BACKGROUND Organization culture is perceived to be a collective behavior of the employees towards
their collective goals. These include organization values, visions, beliefs, norms,
systems, symbols, working languages and habits which employees show in their
actions and also includes predictable pattern as described by Ravasi and Schultz
(2006). The individuals and groups may affect on these organizational behaviors and
so in vice-versa. The organization may vary in total or partial in their culture or sub-
culture from one another and may show different, conflicting “Own unique culture”,
culture drivers and different characteristics explored by Schien (2009).
It is generally considered that Pakistan is poor in its academic and research activities,
this notion became true when we started to find the literature of the organizational
culture and human resources management practices in relation to Pakistani
background. Very little or few research papers were found on these two and other
related areas which again pointed towards the serious problem of again a
‘culture’…yes culture of no interest in research and writing papers, articles and books,
etc. To fill the gap, this project was conceived and two organizations were selected to
put forth for research work. The Pakistan International Airlines Corporation (PIAC)
and National Insurance Company limited (NICL) were selected for under focus for
this study.
The purpose of the research on role of Organizational culture and its impact on HRM
practices in Pakistan is very necessary, because the Pakistan is the land of
opportunities and since its inception, along with successes there are many stories of
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failures as part of its organizational history, such as PIAC and NICL. The selection of
these two organizations for this project may be more justified after reading and
knowing the ups and downs of these two big organizations. Some historical
background and excerpts of the stories are given here for review:
1.2 STATEMENT OF THE PROBLEM One and half year before partition, in March 1946 Mirza Ahmed Isphani established
Orient Airways, an airline on the advice of Mr. Mohammad Ali Jinah in Calcutta and
after the independence of Pakistan the air line shifted to Karachi. This newly born
airline included some rented aero planes and started service from Karachi to Delhi,
Dacca, Quetta, Lahore and Peshawar.
In 1955, Government of Pakistan established Pakistan International Air Line under
the control of the ministry of defense and Orient air ways became the part of new air
line and shortly it became important air line in the world. In 1959 air commodore
Noor Khan took the position of managing director for six years. In 1969, Air Marshal
Asghar Khan became the chairman of PIA and then Noor Khan remained chairman
from 1973 to 1978, both chairmen lead the air line to its highest destinations.
In 1960, PIA started jet engine aero planes. At that time PIA was the only air line
flying jet engine aero planes in Asia. In 1962, Boeing 270 flew a nonstop journey
from London to Karachi and completed journey in six hours, forty three minutes and
fifty one seconds which is still an unbroken world record. In1960, PIAC was among
top ten air lines of the world. The successful stories of the PIAC are spread over time
and these are ended in the year 1992. Afterwards there is about turn and a nose dive of
PIAC and a visible failure of its administration and management in general and HRM
in particular. With the nose diving situation only flying high is its financial crises, the
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deficit which went up to Rs.120 billion in year 2012, few years back PIAC had 45
aero planes and now there are 26 (20 to 25 years old age) aero planes. In the last three
years, PIAC has given a loss of Rs.150 billion to national exchequer. PIAC is over
staffed with more than 18000 employees, which means per aero plane is burdened
with 577 employees the highest ratio per aircraft in the world a record?? It may be.
The role of HRM in employment process is very weak that is 3% on merit and other
97% is on official’s quota, political quota and nepotism based. Therefore, from the
above facts this is the best organization to be studied at the academic level of PhD.
According to economic survey (2012) the insurance industry in Pakistan is relatively
small when comparing it to developing countries and regions; it stands 0.7 percent of
GDP and only US$ 6.5 per capita. Despite of all these odds the NICL had played its
vital role in the economy of Pakistan and having its monopoly over the solely
insurance of big public organizations such as Pakistan International Airline, Pakistan
Television Network, Pakistan National Shipping Corporation, National Bank of
Pakistan, Oil and Gas Development Company of Pakistan, Pak-Arab Refinery
Limited, Pakistan Petroleum Limited, Civil Aviation Authority, Kot Ado Power
Company Limited, Director General of Defense Purchase, Pakistan State Oil,
National Saving organizations, Water and Power Development Authority, Utility
Store Corporation of Pakistan, Sui Northern Gas Pipelines Ltd., Trading Corporation
of Pakistan and Sui Southern Gas Company limited (www.nicl.com.pk).
Pakistan’s culture is very predictable which follow the caste system that does not
allow the rising movements of citizens. Purpose of this study is dual, first to find out
the nature of culture that exists in the country and second to study the effects of
cultural dimensions on organizational performance in the context of Pakistan.
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The way in which socio-cultural environment influences internal work culture and
human resource management practices.
More than two decades ago, Barett and Bass (1976) observed that ‘most research in
industrial and organizational psychology is done within one cultural context. This
context puts constraints upon both our theories and our solutions to the organizational
problems. This observation stems from the variable to explain organizational behavior
and human resource practices. Most researchers were primarily concerned with
testing the generalization of North American behavioral theories and technologies in
other countries. Since that time, however, the situation has changed on two fronts.
First, because of the increasing demands of the globalized and liberalized (hence
competitive) business environment, both researchers and practitioners have started
more paying more attention to the study of culture as an explanatory variable. Second,
they have also come to realize that uncritical adaptation of HR practices and
techniques evolved in the context of Western cultural values may not be reflective in
other socio-cultural environments.
The premise of this research is the application of culture by examining the impact of
cultural variables (as represented in managerial perceptions) on HR practices in two
Pakistani organizations: Pakistan International Air Line Corporation (PIAC) and
National Insurance Corporation Limited (NICL).
1.3 SCOPE OF THE STUDY
There is an acute and chronic shortage of literature and research on Pakistani
management; HR practices and work culture. Students in our varsities go through
Western concepts without getting insights into the applicability and adaptation of
these concepts to suit Pakistan’s socio-cultural environment in the workplace. The
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study would have far reaching implications for further research in cross-cultural
organizational studies, HR practices vis-à-vis efficiency, employee reactivity, and
performance. This research would be beneficial for the academicians, professional
managers, the organizations, employees in general and researchers as particular. The
other scope of this research is that because it is partial and obligatory for the scholar
to earn the degree of PhD for to earn the academic credentials for future endeavors.
Over all scope of this study is limited.
1.4 OBJECTIVES OF STUDY
General objective: The general objective of this research is to earn the degree of
academic excellence (PhD) through doing an enormous study on the topic: “The
Impact of Organizational Culture on Human Resources Management Practices in
Pakistan: A Case Study of Pakistan International Airline Corporation (PIAC) and
National Insurance Company Limited (NICL)”. To achieve the above target following
are given the task related objectives:
To study the socio-culture adaption and its impact on organization;
To assess the impact of organizational culture on human resource
management;
To understand the behavior of employees towards organizational culture;
To measure the efficiency of management and employees;
To determine the role of human resource management practices in the overall
satisfaction of employees.
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1.5 HYPOTHESIS:
Looking the above objectives, the following hypotheses are formulated:
Hypothesis-1
Ho: The socio-culture adaption in Organization is statistically not significant
for the organizational development
Ha: The socio-culture adaption in Organization is statistically significant for
the organizational development
Hypothesis 2
Ho: The organizational efficiency is significantly correlated with the socio-
cultural adaptation and HRM practices in the organization
Ha: The organizational efficiency is insignificantly correlated with the socio-
cultural adaptation and HRM practices in the organization
Hypothesis 3
Ho: The positive behavior of employees towards organizational culture is
perceived to be significant when organization performs well
Ha: The positive behavior of employees towards organizational culture is
perceived to be insignificant when organization performs well
1.6 METHODOLOGY
The choice of research methodology is very important work which needs an
investigation of literature on the related field and topic. As mentioned above and
looking on the problem in this survey the questions are asked from the respondents
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about Socio-Cultural adaptation, Human Resources Management Practices and
organizational behavioral and it is focused to assess the impact of culture on human
resource management practices.
The sample is tested as using 244 respondents from PIAC and 160 respondents from
NICL i.e.; 404 employees from both organizations. The sample size has been
determined by the nature and convenience of this study.
The questionnaire, which is primary source developed and distributed among the
respondents of said organizations PIAC and NICL. The secondary sources comprise
on the review of literature and there is the elaboration of concepts involved for
reaching a theoretical consensus.
1.7 ORGANIZATION OF THE STUDY The chapters organized in this thesis are following
1.7.1 Chapter 1: introduction In this study the first chapter is written to introduce the background, a brief view of
PIAC and over view of NICL, major objectives of PIAC and NICL, statement of the
problem, objectives of study, hypothesis, methodology, and in end scope of the study
is given. This chapter presents the related information for the research purpose.
1.7.2 Chapter 2: literature review Chapter 2 of the thesis is center of attention on the review of literature which
comprises on the deep and thorough study and it is providing related
information from the available literature about socio cultural adaption, organizational
cultural and human resources management practices. This chapter also reveals the
existing literature on the impact of organizational culture on human resources
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management practices in Pakistan specifically selected organizations, viz: Pakistan
International Air Line Corporation PIAC and National Insurance Company limited
NICL.
1.7.3 Chapter 3: research methodology The third chapter is focused on the research methodology which is very heavy work to
design and establish the research hypotheses and to select the tools for examination
and measure the socio cultural adaption, organizational cultural and its impact on
human resources management practices. This chapter aimed to broaden the research
area and development of a conceptual framework for this research study.
1.7.4 Chapter 4: description of the organizations under study
This chapter presents information about the organizations PIAC and NICL which are
under study and focused on their Human Resources Management; selection,
training and development, compensation and rewards. Also this chapter
discusses the functions, objectives and their organizational visions.
1.7.5 Chapter 5: data-analysis- presentation of results
This chapter provides the information about the analysis of result generated from the
main data source collected through the survey questionnaires. The chapter begins
with data arrangement, screening, presentation of sample demography and tables
showing ANOVA results of human resources management, socio cultural adaption,
and organizational cultural. Finally, hypotheses examination presents result that
hypotheses are accepted or rejected and finally conclusion is provided.
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1.7.6 Chapter 6: comparative analysis of the results of PIAC and NICL.
The organization of this chapter is as the demographic analysis of PIAC and NICL
sample based on gender wise distribution of Respondents, age wise distribution of
Respondents, qualification wise distribution of respondents, department wise
distribution of respondents. In the last the tables of comparative results and
comparative summary of results are shown on the basis of hypothesis.
1.7.7 Chapter 7: recommendations and suggestions
This chapter presents the Information about the recommendations and suggestions,
which are developed on the basis of analysis of results. The data collected through
survey questionnaires focuses on these areas human resources management, socio
cultural adaption, and organizational cultural. Finally the examination of hypotheses
which are accepted or rejected, the suggestions and recommendations are presented.
1.8 CHAPTER SUMMARY
Focus of this chapter was to discuss the historical perspective of the socio-cultural
adaptation, organizational culture, human resource management practices,
organizational behavior in general and specific to Pakistan and provide the basis for
this research study. In this chapter these areas were vigorously highlighted as
background, statement of the problem, scope of study, objectives of study, hypothesis,
and methodology. The perspective was to find out the purpose of research and set the
objectives hypothesis for suggested research study.
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CHAPTER-2
LITERATURE REVIEW 2.1 INTRODUCTION
This chapter starts with the brief history of Human Resource Management, culture,
organizational culture and socio cultural adaptation, and the numerous definitions,
explanations and reviews have been given. Subsequently types and models of
organizational culture are discussed. Accordingly focus has been made on the scope
of organizational culture, Human Resource Management practices as general and
particular in Pakistan.
There is a variety of literature available which explicitly elaborates the importance of
Human Resource Management (HRM) and researchers are still choosing this subject
and its related areas in their research and focus. The HRM is now a main discipline of
learning in universities and a tool of practice in modern organizations. Before the
advent of HRM there was Personnel Management which was taught as subject and
used in organizational practice.
2.2 HISTORY AND BACKGROUND The Personnel Management activities existed in pre-historic days and the old tribes
were using selection techniques as well. The tribesman who was suitable for hunting
was a member of hunting team and he was regarded as brave and hero but weak
people were left to look after the village.
By focusing on the history of civilization we can find some of the evidence of human
resource management. As thousands of years ago, Hammurabi of Mesopotamia
settled the wages system for workers and it was followed and amended by his
predecessors.
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The name of Kautilya is very famous in the history, as he was the minister in the
government of Great Asoka density where he settled some of the principles of
organization for running government smoothly. Human Resource Management grows
due to progressive work by the experts since the beginning of civilizations. “Kautilya
has observed that there existed a sound base for systematic management of human
resources in the fourth century B.C. Moses originated the principle of division of
labor in 400 B.C. The Babylonians had a code for incentive wage plans in 1800 B.C”
P G Aquinas (2006)
2.3 EMERGENCE OF HUMAN RESOURCE MANAGEMENT (HRM) AS
MODERN DISCIPLINE In early 50s there were some traditional titles used for this discipline, such as;
industrial relations, personnel administration and, personnel management. These were
in practice to meet the requirements of organizations. Singer (1990) defines that the
“Human Resources Management, a relatively new term emerged during the 1970s”.
The recruitment and selection is also remained one of the important processes.
According to Hilary Harris, et al, (2003) the organization only can be run properly
when there is proper selection and training. He also emphasizes “The resourcing
process: making sure the organization has people of the right quality – it therefore
looks first at recruitment and selection in the context of human resource planning and
then looks at training and development”.
Before 80’s, HRM managers in their practices had less concern on recruitment,
selection, and training. Due to the market competition and computer applications in
every field, the managers realized that the selection of particular person on particular
job is very important, and to adopt the modern techniques for training of their newly
appointed candidates.
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Robert (2002) argues that Human resource managers also provide services, for
instance in recruitment, selection and training. In the areas of recruitment and
selection, human resource managers may advertise for candidates to fill a particular
job, interview and test those candidates, and prepare a short list and make a
recommendation as to which of the candidates should be appointed.
Now a day’s organizations have become extremely goal oriented, that’s why human
resource management focuses on the organizational objectives minutely to achieve the
desired goal. Aquinas (2006) stated that the Objectives of human resource
management are influenced by organizational objectives and individual and social
goals. Every organization has some objectives and every part of it should contribute
directly or indirectly to the attainment of desired objectives. It is necessary that there
should be rules, regulations and sound formal structure of an organization to meet the
challenges of organizational purposes. The purpose of formal structure is to enhance
the efficient functioning of the organization. The formal structure is partly delineated
by the organizational chart, which shows the primary areas of authority and
responsibility and the reporting relationship explained Robert (2002).
The advent of scientific management as main subject of learning in management and
administration sciences and latter on it gave birth to personnel management and then a
new form of subject Human Resources Management was introduced throughout the
last century. According to Ian B. et al (2004) “The origin of (HRM) human resource
management may be traced back to the 1930s in the United States. By the early 1980s
a number of US analysts were writing about HRM human resource management and
devising models and explanations for its emergence” conducted by Ian B. et al,
(2004).
13
Although the HRM human resource management has been considered as vide range
subject in practice. It has been observed that the Human Resources Management
practices and activities have a larger impact on the organizational performance and
its success. There are three areas of Human Resource Management practices which
are i) job enrichment, ii) empowering supervision, and; iii) performance/reward
contingency. Singer M. G. (1990) have defined that the “human resources
management is a special field that focus to develop programs, policies and activities
to promote the satisfaction of both individual and organizational needs, goals, and
objectives”.
The last millennium and in early eighties the introduction of computer in the
organizations and the use of internet and intranet have brought the idea of
globalization. This globalization has also new discussions of economies, organization
and market and its impact on HRM learning and practices “Human resource
management has become a pervasive and influential approach to the management of
employment in a wide range of market economies. The original US Prescriptions of
the early 1980s have become popularized and absorbed in a wide variety of
economic settings: there are very few major economies where the nature of human
resource management, to include its sources, operation and philosophy, is not actively
discussed” as mentioned by Ian B., et al, (2004).
Many of the scholars have defined HRM in a very simple way and they have
elaborated the use of HRM in modern organizations as Hilary elaborates HRM in a
very simple manner, “Every organization has to recruit workers, deploy them, pay
them, motivate them and eventually arrange for their departure Hilary Harris et al,
(2003).
14
Shaista E. Khilji, (2004) in her study explores the values of employees and
organizations in Pakistan, her study opens two dimensions of values which are
emerged as national and employees work related values and she used 100 interviews
and 303 questionnaires from six organizations to investigate the process and outcome
of revamping HR systems in order to develop a new organizational culture. Findings
are the younger employees in particular have experience of a transition in their value
system; and that they expect a different set of HR practices
2.4 HRM AND SOCIAL DEVELOPMENT THEORIES It is known that the social administrative theories are almost produced by the western
writers and these are implemented everywhere. The classical model of Max Weber is
one of the examples in this regard; its origin is in western philosophy but it is also
prevalent in the Asian countries like Pakistan, India and Srilanka etc. Hilary states
that “Indeed, many texts are written as if their messages are universal. However, there
is little doubt that things are done differently in different countries: not only do they
have different cultures It is defined and what is regarded as constituting good practice
is also very distinct” elaborated by Hilary Harris, et al (2003)
Although it’s true that in administrative theories some approaches are very much
universal and working effectively like planning, training, recruitment, welfare,
wages, etc. Human resources management is considered to be the responsibility of all
those who manage people as well as a description of persons who are employed as
specialists. It also refers that how employees are managed by organizations.
The field has moved from traditional to modern age and it recognizes the link between
talented workers and organizations. It is the part of management that involves
planning for human recourse needs, including recruitment and selection, training and
15
development, welfare and safety, wages, and salary, collective bargaining. It is
dealing with the most productive aspects of human resources. Management is a
science about coordination of resources of the organizations to reach on the specific
goals.
In the process of management aspect of selection is guided by revealing of necessary
characteristics are the features, qualities, and abilities of the employee for successful
performance of his professional work by means of behavioral methods and
techniques then selection from the people by means of requirements of the work. It is
necessary to select the employee for the purpose of the most adequate and productive
use of the available human resources providing achievement of the goals and
objectives.
P. G. Aquinas (2006) stated that “Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to higher levels of
performance, and ensuring that they continue to maintain their commitment to the
organization, are essential in achieving organizational objectives.
2.5 AMERICAN CONCEPT OF HRM
According to Ian and others “The origin of HRM may be traced back to the 1930s in
the United States. By the early 1980s a number of US analysts were writing about
HRM and devising models and explanations for its emergence. Among the most
significant of these commentators Devanna is one, said Ian B, et al (2004).
According to Hilary Harris, et al, (2003) HRM is a term with widely disputed
definitions: many books and articles have attempted to pinpoint its meaning. One less
often explored source of variation arises from national differences. The concept of
HRM itself originates in and builds on a particular view of the world, a view initially
16
from the United States of America. No doubt the development of modern HRM has
its roots in America but with some modifications it can be applied in the organizations
operating internationally. Every organization and its working depend upon the
employee’s behavior which reflects the organizational progress. HRM is the system
which not only manages other functions but also deals with the behavior of employees
since the induction till the retirement.
Human resource management has become a pervasive and influential approach to the
management of employment in a wide range of market economies. The original US
Prescriptions of the early 1980s have become popularized and absorbed in a wide
variety of economic settings: there are very few major economies where the nature of
human resource management, to include its sources, operation and philosophy, is not
actively discussed as mentioned in the findings of Ian Beardwell et al (2004).
2.6 FUNCTIONS AND AREAS OF HRM
Scholars are trying to give their arguments in favor and against the HRM practices
and their work is based on their observations and assumptions according to their
country’s organizational cultures and behaviors, even they propose some new
approaches. According to P G Aquinas (2006) HRM is process consisting of four
functions:
Acquisition of human resources,
Development of human resources,
Motivation of human resources; and
Maintenance of human resources.
Always researchers have been trying to develop new models and concepts to enhance
the efficiency of Organizations as this model was developed to meet the requirement
17
of modern world so that the model developed by the American Society for Training
and Development (ASTD) identifies the following human resource areas:
Training and development
Organization development
Organization/Job Design
Human resource Planning
Selection and Staffing
Personnel Research and Information Systems
Compensation/Benefits
Union/ Labor Relations.
Every development that we observe today has the deep roots to the historical events
as Chicago 1st May the labor movement that settled timing hours for the rest of the
world, so as. Robert Clark (2002) states that the effects of the industrial revolution on
the life-style of English people, and were accelerated by the ever-expanding railway
system; between the mid to late 1800s over 22,000 miles of rail-lines were laid. This
expansion was the needed to manage over 500,000 rail workers spread over a vast
expansion of countryside, enumerated by” Robert Clark & Jeremy Seward (2002).
There are three phases in the relationship between the employer and employee: the
acquisition phase when an employee joins the organization, the maintenance phase,
when the relationship ongoing and the termination phases, when the relationship ends.
The management of these phases takes place within an organizational context within a
framework of legal regulations given by Robert Clark et al (2002). Many Japanese
organizations provide schooling, housing, medical and other support facilities to assist
the worker to maximize their efforts and loyalty to the workplace. In return the
18
workers provide their time and efforts to the organization willingly, to the point where
the organization is treated like a parent, with great respect said Robert Clark et al
(2002).
Hilary Harris et al, (2003) said There will be some aspects HRM which may be
applicable in any country and in any circumstances: every org in every country has to
conduct basic HR practices such as recruitment, payment, etc. there will also be many
aspects of HRM which cannot be understood at that level and which must be explored
at different levels: workplace, sector, national or regional.
2.7 HRM AND GLOBALIZATION
The researchers and scholars of social science believe that the role of participative
management is considered very vital especially in Asian countries because in the
countries like Pakistan, India, Japan, China etc, have very strong joint family system.
there is a greater need for understanding how managers in various parts of the world
are doing to cope with issues and problems related to management of human
resources with different cultural backgrounds conducted by ” Md Khasro Miah et al
(2003). The vast majority of organizations, the cost of the people who do the work is
the largest single item of operating costs that can be controlled and adapted to
circumstances, increasingly, in the modern world, the capabilities and the knowledge
incorporated in an organization and human resource are the key to success suggested
by Hilary Harris et al, (2003).
Effective and solid leadership is one of the important tools which can bring
organizational success, and it has the great advantage to handle the all types of
circumstances and crises of organization. “It is clear that key management practices
19
involving leadership, motivation, communication, decision making and so forth, are
all embedded in fundamental features of the company’s HRM style. In other words,
cross-cultural differences in HRM practices must be explained by their embeddings in
different human recourses management styles” elaborated by Md Khasro Miah et al
(2003). Experts of human resource management believe that the pay and rewards are
important parts of the practices in organizations to enhance the performance of
employees. Compensation and legal financial benefits increase the commitment and
performance of employees. There are some general trends that seem to be spreading
across the world, but also some significant differences in the way that each country
tends to compensate its workers for the time and commitment that they bring to work
said Hilary Harris, et al (2003).
M. A. Khan (2010) narrates in his research that the Study of Oil and Gas sector in
Pakistan offered support for the hypothesized positive effects of HRM practices on
Organizational Performance. The results indicate statistically significant relationship
of rewards, and employee participation organizational performance.
Some of the experts say that the managers can control the employees through the
autocratic approach, while observing the Japanese managers practice it seems quite
reverse they apply the approach of team work. Several authors suggest that “The
reality for Japanese managers would look quite opposite: namely, beliefs in self-
directed employees under the participative HRM practices” suggested by Md Khasro
Miah et al (2003).
2.8 CULTURE Culture is comprised of distinct observable forms (e.g.) language, use of symbols,
ceremonies, customs, methods of problem solving and the use of tools or
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technologies. There are the different levels of culture which are behavior, artifacts,
values, assumptions and beliefs. Culture is deep. If you treat it as a superficial
phenomenon, if you assume that you can manipulate it and change it at will, you are
sure to fail. Furthermore, culture controls you more than you control culture Edgar H.
Schein (1999-2009).
As we know that the culture emerged due to the meeting of human beings and the
practices they use in their daily life that becomes the culture and there are some other
things which have the impact on culture like geography, environment, religion etc.
Organizational Culture is an asset of common understandings around which action is
organized finding expressions in language whose shades are specific to the group.
The organization is commonly defined as the human association for the achievement
of common goal and of course in an organization there are different people which are
working they use different language, different religion, different culture, and they
belong to different areas because of these combinations, a unique organizational
culture develops and every organization has its own cultural aspect. “The culture
commonly means ‘Civilizations’ or ‘Mental Approach’ and specially the result of
such approach, is like art, education and literature” as expressed by Hofstade, (2004).
Edgar H. Schein, (1999-2009) explained that Culture matters because it is a powerful,
tacit, and often unconscious set of forces that determine both our individual and
collective behavior, ways of perceiving, thought patterns, and values. Culture or
civilization, taken in its wide ethnographic sense is that complex whole which
includes knowledge, beliefs, art, law, custom, and any other capabilities and habits
acquired by man as member of society” said Sills, (1972). Culture is a unique
characteristic of group of people that make it possible to create and propagate society
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and pass the accumulated learning of the species from generation to generation stated
S.K Srivastava (2005).
Hofstade (2004) portrays that the ‘Culture‘ is the word for all those ways of thinking,
feeling and acting not only this but also other things of life; eating, greeting, showing,
not showing feelings, having distance from others, having love and affection or body
language. Culture is a common phenomenon among the people and it is learned that it
drives from the social and Geographical environment not inherited genetically. There
are no scientific standards for considering one group as intrinsically / by nature
Superior or inferior to another. Cultural relativism affirms that one culture has no
absolute criteria for judging the activities of another culture as “low” or “noble”.
According to the encyclopedia of the social science “Culture is the combination of
knowledge, belief, art, morals, law, custom and other capabilities and habits acquired
by man as a member of society stated Sills (1972).
Culture is a property of a group, whenever a group has enough common experience, a
culture begins to form. One finds culture at the level of small teams, families, and
work groups. Culture also arises at the level of departments, functional groups, and
other organizational units” as explained by Edgar H. Schein, (1999-2009). Fisher
(2005) says about the variation of cultures that the goal is to explain cross cultural
differences in extra-role Behavior. A view of previous multi-level research and cross
cultural research proposed that the effects of national cultural on work attitudes and
Behavior is mediated by organizational practices.
2.9 VALUES
At the next level of culture there are values. Values underlie and to a large extent
determine behavior, but they are not directly observable, as behaviors are. There may
22
be a difference between stated and operating values. People will attribute their
behavior to stated values.
2.10 ASSUMPTIONS AND BELIEFS
To understand culture, we have to get to the deepest level, the level of assumptions
and beliefs. Schein contends that underlying assumptions grow out of values, until
they become taken for granted and drop out of awareness. As the above definition
states, and as the cartoon illustrates, people may be unaware of or unable to articulate
the beliefs and assumptions forming their deepest level of culture. To understand
culture, we must understand all three levels, a difficult task. One additional aspect
complicates the study of culture: the group or cultural unit, which "owns" the culture.
An organization may have many different cultures or subcultures, or even no
discernible dominant culture at the organizational level. Recognizing the cultural unit
is essential to identifying and understanding the culture.
2.11 CULTURE AND VALUES Hero’s should be alive or dead persons, imaginary or real possessing special
characteristics which are very noble and special in the particular culture. Following
characters are known as the core of culture framed by values. Values are the basis to
perform and in the society values are known as the feelings and have negative &
positive impact, for example Good – Evil, Clean – Dirty, Beautiful – Ugly, Natural –
Un natural, Normal – Abnormal, Paradox – Logical, Rational – irrational. The values
first of all children learn not consciously, most of the psychologists believe that the
children in the age of 10 years are firm to understand values and then the changes are
very difficult. It is universally learned that the People who live in the same social
23
environment and have Collective thinking of mind which distinguishes them from one
group to another and they follow their own social principles and practices. Generally
we understand that culture is complete code of life and people follow the rules,
regulations, customs and traditions etc, some of the customs may have negative
impact in development of society for instance in China there was Imperialism in its
past and people were passing miserable life and having no development in every
aspect of life eventually revolution took place and that was the ‘cultural revolution’.
There is the influence of culture on our actions and values, and also the ongoing
tensions between the forces of convergence of cultures and those of divergence. The
concept of culture is deeply rooted in human history and its scope extends far beyond
the boundaries of organizational activity. However, organizations are the product of
the societies and times in which they exist” Hilary Harris et al, (2003).
The view of human thought and behavior as currently patterned assumes that human
beings are by nature very malleable, for they exhibit a wide variety of behavioral
forms as a result the process of socialization Adam Kuper & Jessica Kuper (1985)
explained. Taylor and lewis Henry Morgan gave the view that Culture or civilizations
are the conscious creation of rational minds for the purpose of improving the lives of
the people / society’s members Adam Kuper & Jessica Kuper (1985). Socialization is
a powerful cultural communication tool. While the transmission of information about
cultural artifacts is relatively easy, the transmission of values is more difficult. The
communication of organizational assumptions is almost impossible, since
organizational members themselves may not be consciously aware of them stated
Debra L. Nelson, James Campbell Quick, (2006).
2.12 ROLE OF NATIONAL CULTURE IN SHAPING BEHAVIOR
ORGANIZATIONS AND INDIVIDUALS
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National culture plays an important role in shaping the behavior of individuals and
organizations, this study examined the effects of Hofstede’s culture dimensions on
organizational performance for the case of Pakistan Imran Ali et al, (2010). The
scholars studied culture dimensions which are: power distance, collectivism,
masculinity, uncertainty avoidance, long/short-term orientation. The data has been
collected from 350 organizations belonging to various sectors and industries of
Pakistan. Structural equation modeling technique has been adopted for analyzing the
data and to interpret the results. The study found that culture dimensions including:
higher power distance, collectivism masculinity and short-term orientation are having
negative effects on organizational performance for the case of Pakistan. National
culture differences might affect organization structure and processes, notions of
leadership, HR practices, etc. Management scholars have consequently been inspired
to translate the work of social anthropologist to the world of work. Three European
researchers Andre Laurent, Hofstede and Fons Trompenaars have been particularly
influential in this respect Hilary Harris, et al, (2003)
Cultural differences may be seen in several aspects like rituals, heroes, symbols &
values. The symbols are known as objects, gestures & pictures have particular
meaning in culture and people understand easily like, language words, hair style, and
dresses. Rituals are known as the activities which are socially essentials the way we
give respect to others as greetings, religious social and blood relations are the
examples. Hofstade’s efforts are no doubt very vital in the cultural study he gave the
five dimensions of national culture which are “power distance, individualism,
masculinity, uncertainty avoidance, Confucian dynamism, acceptance of the
legitimacy of hierarchy and later on other experts” Kanungo; et al, (2000).
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Shaista E. Khilji.(2003) studied 11 organizations, local as well as multinationals, in
Pakistan to test the ‘culture sensitive’ view. Evidence shows enough similarities exist
between local and multinational organizations, it indicates the influence of parent
companies and the impact of their national culture. Although some policies may be
same, the practices are not same, because of adaptation of local norms. She has
suggested that balance between policies and practices be made in an organizational
analysis.
Edgar H. Schein, (1999-2009) said that “Furthermore, you begin to realize that there
is no right or wrong culture no better or worse culture, except in relation to what the
organization is trying to do and what the environment in which it is operating allows”.
Their analysis is the managers who characterized their socio-cultural environment as
fatalistic also assumed that employees, by nature were not malleable. These managers
did not administer job enrichment, empowering supervision, and performance reward
contingency. The literature contains ample definitions of national culture. In the
narrowest sense, the term is used to denote ‘a set of historically evolved, learned and
shared values, attitudes and meanings expressed Khilji (2003).
Budhwar(2000) have given important and valuable arguments that the HRM policies
and practices in an organization are influenced by the four national cultural factors,
which are national culture, institutions, competitive pressures, and business sector.
Mary Uhl-Bien et al (1990) said that the mutual belief among Japanese Managers and
workers that the relationship between the company and employee is paternalistic in
nature fosters many of the other characteristics described above: trust among workers
and managers, cooperation and harmony throughout the organization.
Those who have a strong belief in company paternalism place the interests of the
company above their own and take a career-long perspective of their treatment by the
26
company; it would follow that these individuals would demonstrate more commitment
to the welfare of the company said Mary Uhl-Bien et al, (1990). People only care
about their own good or those in their close circle especially in times of difficulty,
family members, relatives or close friends. If these events had formulated their
assumptions of reality, the on-going reform gives the common people the opportunity
and space to enact those assumptions and values expressed Siew-Huat Kong (2003).
The phenomenon of "organization" itself is to be treated as "culture" and that culture
refers to the deep structure of an organization, which is rooted in the assumptions held
by its members. In order to understand the underlying assumptions, which is the
primary objective of this study, both the values and artifacts of the structural model of
culture will have to be examined expressed Siew-Huat Kong (2003).
2.13 ORGANIZATIONAL CULTURE Clayton M. et al (2006) stated that Organizational culture affects and regulates the
members of the organization to think, feel and act within the framework of that
organization. Culture is the result of common learning experiences because culture
forms the basis of group identity and shared thought, belief, and feeling. Clayton M.
et al (2006) expressed that “One may observe that in one organization, for example,
people tend to challenge each other openly. In other organizations, people may be
more “polite” they don’t openly disagree or criticize in some organizations employees
may wear casual or even sloppy clothes, while in other they may dress more
formally”. Culture is comprised for processes, or ways of working together, and of
shared criteria for decision-making, which at one point in the organization’s history
were explicitly debated, but which have been employed so successfully so often that
they come to be adopted by assumption Clayton M. Christensen, (2006).
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Organizational cultures are created, maintained, or transformed by people. An
organization's culture is, in part, also created and maintained by the organization's
leadership. Leaders at the executive level are the principle source for the generation
and re-infusion of an organization's ideology, articulation of core values and
specification of norms. Organizational values express preferences for certain
behaviors or certain outcomes.
Organizational norms express behaviors accepted by others. They are culturally
acceptable ways of pursuing goals. Leaders also establish the parameters for formal
lines of communication and message content-the formal interaction rules for the
organization. Values and norms, once transmitted through the organization, establish
the permanence of the organization's culture.
One of the primary responsibilities of strategic leaders is to create and maintain the
organizational characteristics that reward and encourage collective effort. Perhaps the
most fundamental of these is organizational culture. But what do we really mean by
organizational culture? What influence does it have on an organization? How does
one go about building, influencing or changing an organization's culture?
These are the definitions which are given below to understand the organizational
culture. Becker and Geer (1960) said “organizational culture is a set of common
understandings around which action is organized finding expression in language
whose nuances are peculiar to the group”.
Louis (1980) stated that “organizational culture is the name of understanding which
are shared by a group of people that are largely unspoken among members and are
clearly related to the particular group”.
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“Organizational culture is a structure of information, principles for identifying,
thinking, assessing and performing that serve to relate the human communities to their
environmental backgrounds” expressed Allaire and Firsirotu (1984).
The deeper level of basic assumptions and beliefs that are: learned responses to the
group's problems of survival in its external environment and its problems of internal
integration; are shared by members of an organization; that operate unconsciously;
and that define in a basic "taken-for-granted" fashion in an organization's view of
itself and its environment Schein (1988). Any social system arising from a network of
shared ideologies consisting of two components: substance the networks of meaning
associated with ideologies, norms, and values; and forms the practices whereby the
meanings are expressed, affirmed, and communicated to members, said Trice and
Beyer (1984).
This sampling of definitions represents the two major camps that exist in the study of
organizational culture and its "application strategies." The first camp views culture as
implicit in social life. Culture is what naturally emerges as individuals transform
themselves into social groups as tribes, communities, and ultimately, nations. The
second camp represents the view that culture is an explicit social product arising from
social interaction either as an intentional or unintentional consequence of behavior. In
other words, culture is comprised of distinct observable forms (e.g., language, use of
symbols, ceremonies, customs, methods of problem solving, use of tools or
technology, and design of work settings) that groups of people create through social
interaction and use to confront the broader social environment said Wuthnow and
Witten (1988). This second view of culture is most relevant to the analysis and
29
evaluation of organizational culture and to cultural change strategies that leaders can
employ to improve organizational performance.
2.14 ORGANIZATIONAL CULTURE IS COMBINATION OF SUBCULTURES
Sociologists Gary Fine and Sherryl Kleinman discuss “how distinct societies are
composites of interacting subcultures rather than a single overarching culture”. The
organizations stand on subgroups that have exact characteristics and logic of
recognition. Within organizations, people can easily categorize themselves and others
in different social categories and groups based on classification with their prime work
group, occupational or professional skills, union membership, or age cohort. (Ouchi
1980, Ashforth and Mael 1989) explained that the Subgroups in organizations can and
do create subcultures that comprise specific networks of meaning; yet, at the same
time, they remain associated with the ideologies and values of the organization's
leadership.
The way in which socio-cultural environment influences internal work culture and
human resource management practices. This sample is tested using 404 participants
from public sector corporations like PIAC and NIC to complete 80+ item
questionnaires which will measure managerial perceptions of socio-cultural
adoptions, organizational culture and HRM practices.
More than two decades ago, Barett and Bass (1976) observed that most research in
industrial and organizational psychology is done within one cultural context. This
context puts constraints upon both our theories and our solutions to the organizational
problems. This observation stems from the variable to explain organizational behavior
and human resource practices.
30
Most researchers were primarily concerned with testing the generalization of North
American behavioral theories and technologies in other countries. Since that time,
however, the situation has changed on two fronts. First, because of the increasing
demands of the globalized and liberalized (hence competitive) business environment,
both researchers and practitioners have started more paying more attention to the
study of culture as an explanatory variable. Second, they have also come to realize
that uncritical adaptation of HR practices and techniques evolved in the context of
Western cultural values may not be reflective in other socio-cultural environments.
The premise of this research is the application of the socio-cultural adoption,
organizational culture and HRM practices by examining its impact.
2.15 STRONG AND WEAK CULTURES Strong culture can be known as, where the employees respond to inspiration because
of their association to the organizational values in such atmosphere strong culture
function more appropriately. Where there is little association with organizational
values evenly there is weak culture when the control is through centralized
bureaucracy or complex procedures it creates weak culture. The research shows that
the organizations promote strong cultures they have obvious values than employees
attract to hold the culture and no doubt strong culture is useful in running
organizations properly. Where culture is strong employees work because they believe
it right to do described Irving Janis, (1972). Research studies illustrates that the
organizations may develop the following advantages from strong cultures:
Better aligning the company towards achieving its vision, mission and goals;
High employee motivation and loyalty;
Strong team work among various divisions of organization;
31
Promoting uniformity and upholding coordination and control in organization;
Shaping behavior of employees.
2.16 HEALTHY ORGANIZATIONAL CULTURES Organization should take efforts for developing Healthy organizational cultures which
is the strong foundation for growth, efficiency and productivity and minimize
unproductive behavior of employees. Following are the characteristics of healthy
culture:
Recognition and admiration for multiplicity;
Promote fair dealing with employees and appreciate contribution of
employees;
Employee superiority and eagerness for organization;
For employee equal opportunity in organization;
Proper communication with employee about problems of organization;
Strong leadership with clear sense of direction and target;
Capability to compete in organization;
Promote learning and training employees.
In addition, performance based cultures have been revealed to have better economic
growth; such cultures have prominent employee participation, immense level of
communication, recognition and support of healthy level in order to achieve
objectives. According to Kotter and Heskett (1992), “organizations with adaptive
32
cultures perform much better than organizations with un-adaptive cultures. An
adaptive culture translates into organizational success; it is characterized by managers
paying close attention to all of their constituencies, especially customers, initiating
change when needed”.
2.17 IMPACT OF ORGANIZATIONAL CULTURES ON EMPLOYEES
PERFORM Competitive edge derived from innovation and customer service;
Consistent, efficient employee performance;
Team cohesiveness;
High employees moral;
Strong company alignment towards goal achievement.
It is also the contribution of Aycan and his co researchers; they searched and added
the sixth dimension of culture that is the ‘Paternalism’. The impact of Paternalism is
very high in the human society and especially in the Asian countries it has been
observed that people obey the orders of their fathers, elders without any argument and
they feel proud to be obedient and almost the Asian societies exist in the joint family
system, the obedience of their elders is like worship. Especially the people in Asia and
particularly people of Pakistan have the strong culture of obedience to their elders like
father mother and others this practice is the part of their life so that this dimension is
extremely applicable in the organizational practices”. In the Paternalistic relationship
there is the role of superior or elder to provide guidance, protection and care to the
youngster or subordinate and in return they have to be loyal and obedient to the
superior stated Aycan et al (2000). Researchers have suggested that the paternalism,
33
self-reliance and employee participation construct merit further exploration as doe’s
participant’s methodology. Concentrating on paternalism as form of legitimated
authority not only encourages the assumption of strategic universality against this
multi-faceted reality. It also tends to obscure the manner in which legal authority
occurs and to over- estimate the extent to which the legitimacy of management
authority is crucial to its exercise of control expressed Irene Padavic et al (1994). We
analyze modern- day paternalism as an asymmetrical power relationship, rather than
examining its institutional apparatus. Modernization theorists correctly observe that
the support for the sort of comprehensive institutional paternalism that characterized
past eras has eroded discussed Irene Padavic et al (1994).
Fatalism is the socio-cultural dimension, in almost religions this preaching is very
common that when a person cannot solve his problem then he says that I leave it on
the ‘God’ or “Fate”. Aycan (2000) have expressed that the Fatalism is the belief that
whatever happens must happen. The word fatalism is generally used to refer the
attitude of termination in the context of future events which are thought to be
inevitable usually people say that we are powerless to do anything or that man has on
power to influence the future so that they rely on the fate, as it is the common saying
that the “Man proposes God disposes” The whole discussion has been emerged by the
researchers about cultural dimensions to date is paternalism, power distance,
individualism, masculinity/feminity, uncertainty avoidance, long term
orientation/individualism/collectivism, lastly the fatalism has been discovered which
is the result of research on Asian culture and of course it has opened the doors for
researchers to work continue to find out the other un discovered cultural dimensions
according to their social circumstances. There are the six internal work culture
34
dimensions; decisions, organizational structure, people, information, rewards and
processes.
2.18 THE IMPACT OF CULTURE ON ORGANIZATION Why culture is so important in an organization Edgar Schein, an MIT Professor of
Management and author of Organizational Culture and Leadership: A Dynamic View
suggests that an organization's culture develops to help it to cope with its
environment. Today, organizational leaders are confronted with many complex issues
during their attempts to generate organizational achievement. A leader's success will
depend, to a great extent, upon understanding organizational culture. Culture is the
universal observable fact; the nations of the world have their own culture and it is the
combination of these subject’s social, economic, legal, political, religious norms,
values and traditions of the society. It is true that culture is the main source in the
development of personality and behavior. Culture is the thought that people of any
country have a unique and durable outline of behavior and personality characteristics.
Schein contends that many of the problems confronting leaders can be traced to their
inability to analyze and evaluate organizational cultures. Many leaders, when trying to
implement new strategies or a strategic plan leading to a new vision, will discover that
their strategies will fail if they are inconsistent with the organization's culture. A
CEO, political appointee, or flag officer who comes into an organization prepared to
"shake the place up" and institute sweeping changes, often experiences resistance to
changes and failure. Difficulties with organizational transformations arise from
failures to analyze an organization's existing culture.
2.19 HRM AND ORGANIZATIONAL CULTURE
35
Khan (2010) in his study expressed that the importance of human resources
management practices to achieve and sustain superior performance in changing
business environment and need for an integrated approach toward formulation and
implementation of human resources management practices. Ravichandran. A (2011)
said in his research article that the prevalent concept of organization structures are
developed from the organizational context such as year of existence or age, size,
resources, technologies, environmental dependencies, formalization, complexity and
the form ownership. The scholars of HRM consider that the organizational culture is
different from the environment and structure of organization. Japanese researchers
strongly focused on the study of organizational culture. World War II brought heavy
disaster so that they understood this study can help more for the rapid development of
their economy and gave the priority to this area of study and they could identify that
organizational culture have the major impact on the performance of an individual and
organization.
Harish Chandra (2006) stated that Management philosophy is the explicit or implicit
beliefs of key managers about the nature of the business, its role in society, and how it
should be run-particularly how it will treat and utilize employees. A manager’s
philosophy is shaped by his or her values or assumptions about the role of business in
society and the role of people in business.
Colleen ward & weining C.Chang, (1997) said that it came first time to our
knowledge, that cultural similarities and differences have been explicitly examined in
the personality domain. Ronald Fisher et al, (2005) have expressed that National
culture influences work attitudes and behavior mainly indirectly through
organizational practices. Therefore we propose that national culture effects on work
behavior are mediated by organizational culture and practices. Fisher. Fred Luthans
36
(2002) expressed in his study that with a rich historical background such as the
Hawthorne studies and an accepted scientific methodology the field of Organizational
Behavior is now an accepted academic discipline.
2.20 ORGANIZATIONAL BEHAVIOR Stephen P, et al, (2009) gave the view that Organizational Behavior is a field of study,
meaning that it is distinct area of expertise with a common body of knowledge, it
studies three determinants of Behavior in Organizations; individuals, groups, and
structure. Fred Luthans (2002) stated in his study that the academic field of
organizational behavior has been around for at least the past thirty years; problems
facing managers of human organizations have been around since the beginning of
civilizations.
2.21 ORGANIZATIONAL CULTURE AND VALUES Organizational Culture is very much important and it has the great impact on
organizational performance , but it is a debatable issue that cultural impact can be
measured or not, it is complicated to point out the situational relationships and to
assess the actual bunch of values to use as the universal trade mark across whole
organizations of the world. However within the HRM researchers they believe that the
creation of strong values among the employees and organizations are important, but
the efforts to provide a continuous training to all the employees as they are placed in a
better position to help the organization to adopt the environmental change and it is
also known as a vital part of the organizational cultural in the present environment.
The Organizational culture Profile (OCP) can help assess whether an individual’s
values match the organizations, the OCP helps individuals sort their characteristics in
37
terms of importance, which indicates what a person values expressed by Stephen P, et
al, (2009). The set goals can only be achieved by the formal organization which is
based on some principles and structure. Goel (2003) argues that “An organization is a
structure created to fulfill a purpose. It is made up of resources, structure and
technology, which is composed of people who run and manage it, there can be
different kinds of organizations – government, private, voluntary, cooperative etc.
This is the modern concept which is prevalent nowadays and can be observed in the
practices of human resources that is to focus on the betterments of both organization
and employees. Chandra said “Organizational Development is basically the process
of enhancing the effectiveness of an organization and the well- being of its members”
Chandra (2006). Organizational progress, specially addressed issues are relevant to
the business organizations as well as sources from other disciplines, the collected
information denotes the impact on the organizational culture and values. It has
increased the performance of organizations and suggests the ways through which
organizations can change their environment.
2.22 THEORIES OF ORGANIZATION AND HRM There are many theories of organization. These are the important theories: Scientific
Management, Classical theory, Human Relation theory, Bureaucratic theory, Systems
theory, and Contingency theory said Goel (2003). Organization has significant place
in the modern world; there can be no Administration without proper organization said
Khan (2005). At the turn of the 20th century, business was expanding and new
products and new markets were being created, but labor was in short supply. Two
solutions were available: (1) substitute capital for labor (2) use of labor more
efficiently Scientific Management concentrated on the second solution” Gibson,
38
(1986). “Managers implement HRM practices based on their assumptions on the
nature of both the task and the employees. However these assumptions shaped by
different environmental forces” Aycan et al (1999). Manuel Mendonca et al (1994)
discussed the internal work culture of organizations in developing countries and
effective use of human resources management practices and techniques are discussed
to uncritical adaptation in the developing countries, relating to work design,
performance management, and reward system is analyzed. Organizations differ in the
quality of organizational behavior that they develop. These differences are
substantially caused by different models of organizational behavior that dominate
management’s thought in each organization. Srivastava, et al (2005) Mendonca et al
(1994) explained that the development in HRM techniques and practices, particularly
in relation to work design, performance management, and reward systems have
enabled organizations to create conditions that foster, promote, support, and reinforce
employee’s effectiveness. Khan stated in his study that there are the positive
effects of human resources management practices on organizational Performance. The
results indicate statistically significant relationship of recruitment and selection,
training and development, performance appraisal, compensation and rewards and
employees participation with organizational Performance Khan (2010). Very true that
“Human resources are developed in many ways i.e., through formal-education, on-
the-job training, self development, improvement of health nutrition explained
Chandra (2006).
2.23 HRM AND WORK RELATED VALUES IN PAKISTAN
39
It is the prime need of time to work more on Human resource management
innovations/practices in the third world countries, so that the organization’s
performance can be better in practice and meet requirements of modern world market.
Khilji and others brought these studies and summaries that in the context of Pakistan
are organizational cultural back ground and human recourse management practices,
the research can support to increase the organizational performance and its output.
But these studies are very few still there is the extreme need of research especially on
organizational culture and socio-cultural adaptation in Pakistan. HRM and cultural
dimensions especially have emerged two distinct dimensions of values national and
employee’s work - related values. Work related values in Pakistani organizations have
changed to reflect the modern values of a market economy, and exposes generational
differences in HR satisfaction and expectations discussed Shaista Khilji (2004).
Organizational culture is the set of assumptions, beliefs, values, and norms that are
shared among its members this culture may be consciously created by its key
members, or it may have simply evolved across time expressed John W. Newstrom et
al (1993). Organizations are influenced by the national culture; the logic used to
support this view is based on the idea that the early socialization or condition process
of people is influenced by various macro institutions, such as family, education,
political and economic structures stated Shaista Khilji (2003). It’s true that the socio-
culture environment influences to the internal work culture and Human recourse
management practices and have positive impact on the organizations. Because of the
increasing concept of globalized and liberalized the researchers and practitioners have
started to pay more attention to the study of socio- culture. Researchers have also
realized that the uncritical adaptation of HR practices and techniques evolved in the
40
context of western culture values may not be reflective in other socio- culture
environment.
The quality of leadership depends on proper communication, and group dynamics; the
nature of both formal and informal organization and the influence of social
environment. These items combine to create values and culture in which the personal
attitudes of the employees and situational factors can produce motivation and goal
achievement stated John W. Newstrom et al (1993). Organizational culture becomes
perpetuated by its tendency to attract and retain people who fit its values and beliefs
just as people may choose to move to a certain region because of geographic
characteristics such as temperature humidity, and rainfall, employees also will
descend toward the organization culture they prefer as work environment explained
John W. Newstrom et al (1993). Cultural values, which represent collective beliefs,
assumptions, and feelings about what things are good, normal, rational, and valuable.
Cultural values can be quite different from organization to organization in some
cultures employees may care deeply about money, but in others they may care more
about technological innovation or employee well-being stated Don Hellriegel, John
W. Slocum, jr. (2007). Organizations are like most fingerprints and snowflakes are
unique. Each has its own history, patterns of communication, systems and procedures
mission statements and visions, stories and myths which in their totality constitute its
distinctive culture observed John W. Newstrom et al (1993).Culture is a collection of
unspoken rules and traditions that operate 24 hours a day and plays role in
determining the quality of organizations life said Don Hellriegel, John W. Slocum, jr
(2007). One of the primary responsibilities of strategic leaders is to create and
maintain the organizational characteristics that reward and encourage collective effort.
Perhaps the most fundamental of these is organizational culture discussed Hiram T.
41
Kefela, (2010). During the late 1990s, many organizations began to reassess how well
their cultures fit the expectations of the workforce. Since world II, the U.S. workforce
has changed demographically, becoming more divers stated Don Hellriegel, John W.
Slocum, jr. (2007).
Ghirmai T. Kefela, (2010) expressed that Every single person comes from different
backgrounds and lifestyles but in an organizational culture, each one of them
perceives the organizational culture in the same way, thus, this perception is one of
the shared aspects of an organizational culture. Ghirmai T. Kefela, (2010) said There
are seven dimensions of an organizational culture, namely, attention to detail,
innovation and risk taking, outcome orientation, stability, people orientation,
aggressiveness, and team orientation Organizational culture is basically a system of
shared beliefs that members of the organization have. This determines how members
in an organization act when confronted with decision-making responsibilities. In
every organization, you will notice that there are systems or patterns of values that are
constantly evolving stated Ghirmai T. Kefela, (2010). In such a mature organization,
one will find a corporate culture that reflects all the parts of the organization and
many subcultures that reflect functions, products, markets, and geographies stated
Edgar h. Schein (1999-2009). We use the concept of “culture” to describe how
members of groups understand their world and their place in it, highly productive
business invariably has a high performing organizational culture that aligns well both
internally and externally to support the overall objectives of the business Ghirmai T.
Kefela, (2010).The best thing managers and CEOs can do is to avoid culture issues is
to introduce a different culture for the company or at least make their employees
aware of what they should expect this will minimize the adverse effects of mergers on
42
the morale of the employees and ensure a smoother operations explained Ghirmai T.
Kefela, (2010).
2.24 CHAPTER SUMMARY The focus of this chapter was to discuss the historical perspective of the socio-cultural
adaptation, organizational culture, human resource management practices,
organizational behavior in general and specific to Pakistan and provide the basis for
this research study. In this chapter a thorough history of socio-cultural adaptation,
organizational culture and various definitions regarding human resource management
(HRM) were vigorously highlighted and the perspective was to find out the research
methodology and techniques for further suggested study.
43
CHAPTER-3
RESEARCH METHODOLOGY
3.1 INTRODUCTION
The choice of research methodology is very heavy work which needs an investigation
of literature on the related field and topic. After the literature review this chapter is
important for explanation of the research methodology which is selected and used to
carry on the study for achieving the study objectives and to find the results for the
stated hypotheses. This chapter is focusing on such methodology.
3.2 RESEARCH DESIGN The primary data is a basic part of the investigation through the use of structured,
closed ended questionnaire based on the Likert’s five point scale comprising of the
given area of study. The all sources of secondary data also have been used which was
necessary for this kind of study. The qualitative and quantitative research methods are
the integral parts of the research and for the purpose all necessary statistical and
measuring tools were thoroughly examined and selected before the use. The design of
questionnaire (see Appendix-C) is very important for the investigation of such studies
which are related with human interaction and their opinion. The respondents
(employees such as managers and supervisors) were given choice with close ended
questions and their opinions got quantified with the help of computer excel program
in the shape of Master Table.
The areas of studies after the demographic information of organizations under study
were focused on; the human resources management practices, socio cultural
adaptation and organizational culture/behavior. Each part comprising 12 questions,
using the sample size suggested by the Sekaran (1970) for investigating two
44
organizations in Pakistan viz; Pakistan International Airline Corporation (PIAC) and
National Insurance Company Limited (NICL). The size of sample has been
determined by the nature of organizations and for the convenience of this research.
The questionnaire, which was constructed and presented to the respondents for survey
purpose was modified by using different questionnaires of worldwide recognize
experts such as; Denison, Franck , Mouton etc: in this research. The technique of
sampling which is used in this study is purposeful. The choice for this process was
based on the impact of organizational culture on human resource management
practices and it was requested to the respondents for giving opinion to the questions
which were on likert scale. To complete and return the questionnaire was a time
consuming process for respondents so that the questionnaire was made simple for the
respondents to complete easily.Franck (2005) explains that the meaningful and
classified Sampling methods can be used to entrance a wider collection of opinions
inside the organization. Organizational culture and human resource management
practices were assessed by using a quantitative methodology. The Organizational
Culture survey and analysis which was used by Denison is applied to collect and
analyze the data. Although the Mouton (1996) has also elaborated the following
merits and demerits of the surveys:
3.2.1 Merits
It is the well-organized method of collecting data from maximum number of the
respondents. It can be used to learn, beliefs, values, behaviors, and precedent,
attitudes of person. It is identical and consequently that is free from numerous types
of errors. It is comparatively simple to manage. Following are the demerits related to
the survey which are, as mentioned by Mouton (1996).
45
3.2.2 Demerits
Data collection depends upon the respondents’ honesty, motivation sound memory
and talent to reply the survey. The reply of respondents counts to survey which is
generally short. Usually respondents are self-decided, consequently a less possibility
of sample emerged and the distinctiveness of the sample cannot be conditional.
3.3 SELECTION OF SAMPLE SIZE
Mouton (1996) has described that the population is the complete set of a data and
from data the sample is selected then the researcher desires to depict the conclusions.
Reasonably due to the specific population, the number of respondents those returned
the questionnaire from Pakistan International Airline Corporation (PIAC) is N=244
which is 81% of total and the questionnaires sent to 300 respondents. The number of
respondents those returned the questionnaire is N=156) which is 80% of total sent
questionnaires to 200 respondents from National Insurance Company Limited (NICL)
All the managers and supervisors from each section were included, and requested to
contribute in this survey. Both of the organizations consist of the departments as;
Marketing, Management, Technical, and Supporting staff. The total respondents are
(N=400) four hundred from the both organizations PIAC and NICL they responded to
the questionnaires and the received response is satisfactory. Sekaran (2000) stated that
the required response rate is 30% and that is adequate for the research purposes.
The response rate is very good that shows that the participants have got interest in
questionnaire, because they were well informed about the aims and objectives of the
research and the assurance of maintaining the secrecy of their identity. Though the
personal information of the respondents was optional and majority of them have
46
avoided giving their identity. The respondents obtained the support from the
managers, seniors and got the assistance of departmental heads for allowing time to
complete the questionnaires. Targeted gatherings and sessions with regard to data
collections were arranged through the managers and other officials to conduct the
survey from their colleagues and to give them know-how about the questionnaire and
its objectives the explanations were also given to the targeted managers for the
objective and the purpose of the survey. The respondents were ensured through the
note on questionnaire that their voluntarily participation will remain confidential. The
survey was completed in period of three months.
3.4. BIOGRAPHICAL PART OF QUESTIONNAIRE
The questionnaire was developed by the researcher as a tool which is also providing
the information of biographic and demographic of the sample. The respondents were
asked to give the information regarding their department, qualification, age, gender,
race, language and period of service in the organization where they have been
working.
3.5 OTHER PARTS OF QUESTIONNAIRE
3.5.1 Denison Organizational Culture Survey
As mentioned above that the Survey of Organizational Culture has been developed
from the model of Denison as it assesses the major aspects of culture which are
recognized in the model. Denison and Mishra (1995) elaborated that the model
focuses on the behaviors, interactions and external environment that is very important
in the understanding of behaviors in the direction of the external environment which
is ever-changing. Davidson (2004) stated that the Organizational Culture Model
47
which is given by Denison is more acceptable model that explains the directions of
the organization.
3.5.2 Dimensions of the Survey There were three main dimensions of Survey such as; the socio-cultural adaptation,
human resource management practices and the study of organizational
culture/organizational behavior in the PIAC and NICL as case studies to research
these above areas of study in Pakistani perspective.
3.5.3 Socio-Cultural adaptation The socio-cultural environment influences internal work culture and human resource
management practices. The socio- cultural adaptation and its impact on human
resources practices are studied through the techniques developed in the context of
western cultural values and the whole literature available is also in that arena,
therefore, it is also one of the big questions of validity of the same tool for the socio-
cultural study of the country like Pakistan. Looking on this problem the researcher has
modified some questions to make clarity for the respondents and they were at ease to
reflect their socio-cultural environments. In this survey 12 questions were asked from
the respondents about Socio-Cultural adaptation, behavior and interaction among the
employees and it was focused to assess the impact of culture on human resource
management practices.
3.5.4 Human resource management practices The researchers of management have searched new systems, concepts, and
approaches of HRM to face the gloomy situation of the management, organization
and employees. The development of an individual and the organizational goals are
48
needed more attention for increasing performance of management and performance
related culture in the organizations. In the survey 12 questions were asked from the
respondents about HRM which were based on selection, training, career and salary in
order to assess their satisfaction.
3.5.5 Organizational Culture/ Behavior Organizational values express preferences for certain behaviors or certain outcomes
and its norms express behaviors which are accepted by others. They are culturally
acceptable ways of pursuing goals. This issue has been studied from different
perspectives of disciplines such as anthropology and sociology, to the applied
disciplines of organizational behavior. 12 questions were developed to understand
organizational behaviors and its impact on performance and goals.
3.6 DESCRIPTION OF THE RATING SCALE Davidson (2004), stated that scale of rating is a set of words, statements, or signs on
the basis that opinion have been made and the worth of a particular feature is
recorded. The Likert scale is one of the types of rating scale which is quite easy to
make and it is reliable scale. Babbie and Mouton (2001), explained that the
importance of the Likert scale plan is clear to get the response in categories and it
makes able to assess the strength of different items. Likert scale is based on five
scales which is used in the Denison Survey and the answerer can be chosen among the
following choices:
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
49
5 = Strongly Agree
Michael Boiger (2008) used this scale in his survey, Likert scale is one of the types of
rating scale which is quite easy to make and it is reliable scale, it can be used for the
rating purpose these are the set of words used for the understanding of the level of
difficult analysis and on that basis the opinion have been made for research purpose.
Vagias, Wade M. He has explained in detail the Likert scales in his research the levels
of difficulty which scales are very useful and reliable for the analysis of data.
1= No Difficulty
2= Slight Difficulty
3= Moderate Difficulty
4= Great Difficulty
5= Extreme Difficulty
3.7 RELIABILITY AND VALIDITY OF THE ORGANIZATIONAL
CULTURE SURVEY Babbie and Mouton (2001) elaborates the validity of Survey that the concept to
measure the reliability is explained as the value of the measurement process that
advocates the data which is composed every time in normal analysis of the same
visible fact. Cho (2000) in his study explained the reliability and validity of Denison
organizational culture Survey scale analysis on the Likert scales (5 scales from each
index) to see how the five scales were unified, valid and reliable. The interpretation of
coefficients of the factors in the same method, by a level of 1.0 suggesting that the
indicator is absolutely correlated with the variable, if the coefficient level is less than
0.5 that shows a moderately weak relation between the variables. The results prove
50
that there is strong relationship and comparatively are reliable and show good support
to the results (Davidson, 2004).
3.8 STATISTICAL METHODS The tests of research hypotheses are based on the Statistical methods and for research
analysis different tools were used as these are embodied in the Microsoft’s excel
program. The inferential and descriptive statistics were used to analyze the data.
3.8.1 Descriptive Statistics
Babbie and Mouton (2001) explained the descriptive statistics as statistical
computations and expressed the significance of a sample and the relationship between
variables of a sample. It also is a precise set of sample study. The reported forms of
descriptive statistics are based on the percentages, means, frequencies, and standard
deviations. It discusses the health and reliability of the collected data.
3.8.2 Inferential Statistics
The inferential statistics are used to make conclusion or decision of a large population
from the data which is collected from a sample of the population Babbie & Mouton,
(2001). The techniques of inferential statistics are applied to find out the relations
between the variables and determine the differences between the existing or non-
existing variables. The subsequent inferential techniques were used to test the
hypotheses which were under analysis.
3.8.3 Pearson Correlation
The relationships among the dimensions of the study the Pearson Correlation was
used to conclude the significant level. Anastasi and Urbina (1997) explain that the
Pearson Correlation Coefficient is a technique which believes the person’s place in
51
the group and his diversity less or more in the group.Mouton (1996) elaborates that
the correlation coefficient as if the value is (–1) shows negative correlation, (+1) value
shows positive correlation and the (0) value shows no correlation between the
variables.
3.8.4 Analysis of Variance (ANOVA)
Babbie and Mouton (2001) expressed that the study of variance is analysis of the
statistical significance and shows the variation in the mean scores of groups in
variables. Analysis of the variance was used to find out the significant variations
about the observation of organizational culture, human resources and socio cultural
adoption in the organizations PIAC and NICL.
3.7 CHAPTER SUMMARY
This chapter focuses on the research design used to conduct the survey. The
significance for using Denison Organizational Culture Survey is its validity and
reliability that is accepted. In addition, the sample and method used to collect the data
is emphasized, the chapter came to an end with selection of the statistical methods
used to examine the data collected from the both organizations PIAC and NICL.
These methods are used in the coming chapters- 5 and 6, simultaneously.
52
CHAPTER-4
DESCRIPTION OF THE ORGANIZATIONS UNDERSTUDY
4.1 INTRODUCTION OF (PIAC)
This chapter starts with the brief explanation of Human Resource Management
practices, and the aims and objectives of the organization are also discussed.
Accordingly focus has been made on the selection and training of the employees.
Pakistan International Airline Corporation (PIAC) was established on 1948 as a
public Corporation, it is purely owned by the government under the control of
ministry of defense. First it was named as Oriental Airways which started its services
in India and after the independence it was shifted to Pakistan. This national Airline is
providing transportation services worldwide and also covers to the different
domestic routes and played very important role in the economic growth of the
country.
4.2 HUMAN RESOURCES MANAGEMENT PRACTICES IN PIAC The human resources management and practices are the major functions of the HRM
department of PIAC, which has an enormous impact on the efficiency and
performance of organization. The range of activities is greater but this research is
focused on the main activities as under.
4.3 RECRUITMENT AND SELECTION IN PIAC At PIAC, the vacancies are always announced with clear requirements in the all local
news papers. The prescribed application forms are available free in PIAC Recruitment
53
and Placement Offices at Karachi and other stations to facilitate candidates. Also
candidates can acquire Application forms from PIAC web site www.piac.com.pk..
4.4 ELIGIBILITY CRITERIA 4.4.1 Qualification The required compulsory qualification to apply for particular job may be different in
PIAC. Initially it starts from intermediate and above up to PhD degree which can
fulfill the positions of different jobs. In PIAC the minimum required education is
intermediate.
4.4.2 Age Requirement The age requirements vary for any specific post and also it depends upon the required
experience for the specific post or job, normally the requirement of age in PIAC is
starting from19years to 24years. The age relaxation is also subject to the policy of
government from time to time otherwise criteria for selection of candidates is same
that is minimum 19 years and maximum 24years.
4.4.3 Physical Requirement The physical requirement for fitness of the candidates varies in case of male
candidates and the required minimum height is 5 feet, 6 inches and for female the
required minimum height is 5 feet, 2 inches with balanced weight, for final selection
in PIAC also differs in case of gender.
4.5 SELECTION PROCEDURE Those candidates who want to join PIAC can go through a firm selection process
before being approved to become the employee of PIAC. Usually the tests are
54
conducted in three parts by the testing centre of the PIAC in order to select candidates
which are given as under:
4.5.1 Physical Test
Physical test of the candidate is considered as the first priority for selection and the
test can able the interviewer to determine either candidate is physically fit for the job
or not. Their health, weight and height are counted in the interview sitting.
4.5.2 Grooming Test Grooming test is based on the traits, manners and behavior of the candidate, those
who are selected in the physical test, they appear in this test. Grooming test is taken
from both male and female; they have to present themselves to achieve the job
especially for the job of Airhostess and their getup and makeup skills are also
considered.
4.5.3 General Test If the grooming test is passed by the candidates, the test of general knowledge is
conducted in written and then oral. The selection tests are prepared by the testing
centre. Those candidates who are selected they join training course of three to four
weeks which is controlled by the training centre. The training courses are based on
flight attendants, handle urgent situation as evacuation of passengers, first aid
training, criminal offence as hijacking and training to deal with difficult passengers.
55
4.6 TRAINING AND DEVELOPMENT Training institution of PIAC is one of the leading institutions in Pakistan. It plays
vital role in the development of organization and in the career of employees. The
training centre offers training in all areas of the Airline Corporation. It has been
known that PIAC has most advanced training institution that is worldwide recognized
by regulatory authorities. The training centre has been involved in providing trainings
to the pilots, air traffic control personnel, engineers and other employees. The
institution is also giving support to train the professionals of other airlines.
4.6.1 Functions of training centre To develop training programs to fulfill the requirements of respective
departments;
Retain training database of all PIAC employees for managing HR activity;
Uphold usual contact with salesperson about new functions and amendments
to revise training programs and educate the trainers;
Set the criteria to make possible the training of employees to accomplish the
quality in relevant fields;
Carry out courses, seminars, workshops, conventions, lectures, and to prepare
papers to make training, in the particular sections.
4.6.2 Courses offered at training
PIAC offers the courses of international standards for aviation training at reasonable
terms. Courses offered to the staff are according to the requirements of employees;
there are five types of trainings offered:
1-Customer Service
2-Engineering & Maintenance
56
3-Flight Operations
4-Information Technology
5-Management
4.6.3 Performance Measures and Standards
The job descriptions are placed and it is needed to set up performance values that
explain and composed as the levels of below-average, average, and above-average
performance. The task is to determine how to measure the potential which are
illustrated in the job description; it needs the objective and subjective methods of
evaluation. To create clear procedure and method that eliminates partiality and stop
evaluators from personally assessing what form is excellent and intolerable behavior.
Following procedure is adopted to train the evaluator for fair assessment of employee:
4.6.4 Evaluator Training The study shows that the administrators with meager communication and if there is
not the good quality performance which fulfills the objectives of the management they
collapse the corporation. The managers need good training to learn that how to
communicate proper information and how to make good judgment to assess the
reliable appraisals.
4.6.5 Guidelines for Improvement Introduce basic policies to cope with employee’s weaknesses and poor performance.
Decide to provide training or monitoring for employees exhibiting subpar
performance. Set guidelines that outline how long it should take an employee to
improve and what steps will be taken if the employee fails to show improvement.
57
4.7 COMPENSATION IN PIAC
It is the belief of PIAC that they can use compensation as an attraction to recruit and
train employees, increase satisfaction, to give reward and encourage the
performances, achieve external and internal equity, reduce turnover, and modify
practices of unions. PIAC employee believes that compensation and retention of
employees is a common goal shared by everyone. Confidence and job satisfaction of
employees are eventually affected by compensation.
4.8 PIA’S MISSION STATEMENT “As a symbol of national pride, we aspire to be a choice airline. PIAC is Operating
profitably on modern commercial concepts and capable of competing with the best in
the International as well as the domestic market”.
4.9 PIAC’S VISION STATEMENT “To be fiercely competitive, consistently exceeding customer expectations and be
the choice of employer that embraces modern technology in all spheres of its
activities”.
4.10 FUNCTIONS OF PAKISTAN INTERNATIONAL AIRLINE
CORPORATION (PIAC) Functions of PIAC are to provide better facility to its customers, develop safe,
efficient, adequate, economical and properly coordinated air transport services on
Domestic as well as International routes and also to secure the air transport services to
the greatest possible advantage in the interest of its country (Pakistan).
Provides air transport services and flights for commercial or any other
purposes.
58
Acquires, owns, runs, manages or participates in the running or managing of
any hotel or business connected.
Provides instructions and training connected with aircraft or' flight, persons
employed or desirous of being employed.
Acquires holds or disposes of property and any transport undertaking.
Repairs, overhauls, reconstructs, assembles and reconditions aircrafts, vehicles
or other machines and parts accessories and instruments.
4.11 OBJECTIVES OF PAKISTAN INTERNATIONAL AIR LINE
CORPOR ATION (PIAC) PIAC has many objectives to achieve but some of them are specified as under:
To earn money by providing better air line facility to the customers;
Purchase new fleet to improve the services;
Rebuild their name internationally in air services;
Facilitate other airline by providing them better catering services for earning
revenue;
Sell automation system program for earning revenue;
Provide better facilities at domestic stations at minimum charges;
Expand the business inside the country as well as outside the country.
4.12 INTRODUCTION (NICL) National Insurance Company Limited (NICL) was included in Pakistan on 31st March
2000 as a public limited company under the Companies Ordinance 1984 through
NICL (Reorganization) Ordinance 2000. In the year 1976 government of Pakistan
established, National Insurance Corporation (NICL). At first it was named as National
59
Insurance Corporation (NICL) formed in the year 1976 through NICL Act 1976.
National Insurance Corporation NICL is purely owned by the government and is
under control of ministry of commerce. This Company is purely providing Insurance
cover to the different organizations owned by the Government and also others in
Pakistan and running under the administrative control of the Ministry of Commerce.
The sanctioned capital of the company is six Billion and two million rupees are kept
for two hundred million shares, each share of Rs 10.The Securities and Exchange
Commission of Pakistan (SECP) is the regulatory authority of NICL. The Company is
providing full insurance coverage to the all type of assets belong to the Government,
autonomous and semi autonomous and corporations.
4.13 HUMAN RESOURCES MANAGEMENT PRACTICES IN NICL The human resources management & practices are the major function of the HRM
department of NICL, which has huge impact on the effectiveness and performance of
organization. The scope of the activities is larger but this research study is focused on
the major activities which are as under:
4.14 RECRUITMENT AND SELECTION The vacancies are always announced with clear requirements in all news papers
within country. The applications are invited from the candidates by post, mail and
other available source at NICL head office/HR department for the recruitment and
selection of the candidates at appropriate positions. The candidates can obtain
Application forms from NICL web site www.nicl.com.pk..
60
4.15 ELIGIBILITY CRITERIA 4.15.1 Qualification The required qualification to apply for particular job may be different in NICL.
Primarily it begins from the intermediate and above up to PhD degree according to the
nature of positions of jobs.
4.15.2 Age Requirement The requirements of age vary for any specific post and it depends upon the required
experience and skill for the particular post, usually the requirement of age in NICL is
initially from 19 years to 24years. The age relaxation is also subject to the policy of
government from time to time, otherwise the age criteria for candidates are same.
4.15.3 Physical Requirement
The Physical requirement for the candidates is medical fitness certificate from the
government hospital in case of any major disease candidate can be disqualified for
final selection.
4.16 SELECTION PROCEDURE For the candidates who want to join NICL can go through a firm selection process
before accepted to become the employee. The tests are conducted in written and viva-
voce examinations.
4.16.1 Training and Development NICL is providing training to the selected candidates on different positions. They
believe that the training plays important role in the development of organizational
performance and in the career development of employees. The training is given in all
61
areas of the jobs. It has been known that NICL has most advanced training setup that
is providing knowledge to the candidates by the experts.
4.16.2 Performance Measures and Standards
The job descriptions are placed very clear and it is needed to set up performance
values that explain and composed as the levels of below-average, average, and above-
average performance. The task is to determine how to measure the potential which are
illustrated in the job description; it needs the objective and subjective methods of
evaluation. To create clear procedure and method that eliminates partiality and stop
evaluators from personally assessing what form is excellent and intolerable behavior.
Following procedure is adopted to train the evaluator for fair assessment of employee.
4.16.3 Evaluator Training The study shows that the administrators with meager communication if there is not
the good quality performance which fulfills the objectives of the management
collapse the corporation. The managers need good training to learn how to
communicate proper information and how to make good judgment to assess the
reliable appraisals.
4.16.4 Guidelines for Improvement Introduce basic policies to cope with employee’s weaknesses and poor performance.
Decide to provide training or mentoring for employees exhibiting subpar
performance. Set guidelines that outline how long it should take an employee to
improve and what steps will be taken if the employee fails to show improvement.
62
4.17 COMPENSATION IN
It is the belief of NICL that they can use compensation as an attraction to recruit and
train employees, increase satisfaction, to give reward and encourage the
performances, achieve external and internal equity, reduce turnover, and modify
practices of unions. The employee believes that compensation and retention of
employees is a common goal shared by everyone. The confidence and job satisfaction
of employees are eventually affected by compensation.
4.18 VISION OF NICL
We have been successful in materializing our last year’s plan to have a new
Management Trainee program for fresh MBAs that been rolled out in April, 2009. All
HEC approved MBAs will be given a chance to work with NICL and get “On Job
Training” and NICL will also facilitate in taking the Insurance exam ACII. After
successful completion, he/she will be inducted in the Management Cadre of NICL.
Due to retirement of our officers; we are also moving to get dynamic people from the
open market with expertise in the fields of insurance, reinsurance, finance and
accounts in order to fill the future gap.
4.19 FUTURE ROLE OF NICL
Since 9/11 Pakistan’s economy is badly hit by war against terrorism due to which the
whole country remained in the grip of terror attacks. In this scenario, NICL has been
continuously playing its positive and constructive role by safeguarding the public
assets in the best interest of the country. NICL’s strong reserves, its team efforts as
well as government patronage made it all possible. It is true that NICL has the
exclusive rights of the insurance of public assets but with the passage of time many
public sector organizations have been privatized which has reduced its clientele.
63
4.20 THE OBJECTIVES OF NATIONAL INSURANCE COMPANY LIMITED (NICL)
To provide insurance cover to the Government/Semi Government
organizations at economical cost;
Reduce outflow of foreign exchange by reducing dependence on reinsurance
abroad;
Make significant contributions to public exchequer by payment of taxes &
dividends.
Make prudent investments in public as well as private sector in order to obtain
maximum returns.
NICL is working according to its planning and one of the reasons of success can be
counted the organizational peace and harmony among the employees. They have
adequate delegation system with a great governmental financial support and they use
modem technology to meet the modern day’s requirement and for success.
4.21 THE FUNCTIONS OF NATIONAL INSURANCE COMPANY
LIMITED The major function of the Company is to insure public properties;
build sufficient reserves to increase risk retention capacity;
insure properties other than public properties as and when directed by the
Federal Government;
advise the Government Departments on issue of risk management to
adequately protect their assets at minimum cost;
Transfer surplus funds after meeting all management expenses, to the
government exchequer.
64
4.22 TRAINING AND RECRUITMENT
Training of the professionals and courses for them are the essential part of national
insurance company limited NICL so that to compete in the market and to become
productive for the organization. Their annual training budget allocation is in millions
for executive development or for employees of several cadres in the organization.
They also provide to employees foreign scholarships for enhancing their education
regularly. National insurance company limited NICL have merit based policy through
advertisements. They invite candidates for recruitment, and the promotion for filling
different positions of jobs in the organization. They have local training programs for
the better performance of employees and HRM department is for their career
planning. It is true that the success of the organization depends on training and growth
of manager's, workforce, and others. Nearly 544 employees are working in the
organization, out of which 38 are executives, 14 are General Managers, 09 are skilled
managers , 23 are deputy managers, 34 are assistant managers, 37 are departmental
officers, 38are executive officers and other staff workers. They have written job
description in connection with separate management training department. The highly
qualified person performs the duty of the training department. They have established a
well reputed department for training of the employees. NICL management divided
training programs in different levels which are initial, middle and advanced. In this
regard, trainers of three different cadres since the establishment NICL articulates as it
follows initial levels of management, middle level management and advanced level
management. The expenditure to incur management-training expenses is in millions
moreover their future planning is to touch the core of the international business
market with regard to maintaining their refined standards. The budget, at that time
was 31.9 millions. Their future planning is to be the no. 1 insurance company in the
65
country as well as to maintain their high standards. Executives are promoted on merit.
Operational and professional courses are the formal training courses. Training is also
arranged on the job. Sources of recruitment are through advertisement in newspapers.
Employee's turnaround in terms of layoffs/terminations/separations is less than 10%.
Employees with experience are contented in their organization from working
conditions. Their main motivation is financial benefits. Their contentment in the
organization is the reward.
4.23 FOLLOWINGS ARE THE COVERAGE WHICH NICL OFFERS
Credit Risk and Surety ship
Property Damage
Fire Damages
Marine Cargo
Aviation Hull
Marine Hull
Motor vehicles
Workers’ Compensation
Agriculture Loans
Liability
Accident and Health
Engineering / Miscellaneous
66
4.24 PROVIDING SECURITY TO CONSUMERS NICL is one of the best companies which is ready to provide security to the people
on such events as unfortunate act including terrorism resulting in hospitalization
disability and even death so that one can spend the time with peace of mind. National
Insurance Company Limited (NICL) has adopted a very inclusive coverage plan so
that the people from abroad can be fully sheltered from any accident during the visit
of Pakistan. The Insurance cover for travel including terrorism and any mishap is also
covered at minimum cost to facilitate people and increase their confidence.
Now a day’s terrorism is at the high level especially Pakistan is facing the situation.
The visitors are usually covered while traveling by air they come with only Travel
Insurance but due to its very high cost for travel in some parts of Asia, many travelers
are deprived of its benefits. The National Insurance Company Limited NICL, being a
public sector insurance organization in Pakistan provides to people a low cost but
high profit cover in any ill-fated event of like sickness, accident, injury and even if it
caused by an act of terrorism in the Pakistan country.
This type of cover is mostly limited Worldwide. The travel within, UK, US, Europe
and South East Asia is almost safe countries. The countries of Middle East and
Pakistan, India, Srilanka etc, are considered as the High Risk Zones, and the limited
cover is being offered for those and at very expensive rates of three to five times of
normal Premium rates.
In Pakistan the National Insurance Company Limited NICL provides to its travelers a
low cost but high profit cover in any event of like, accident, injury terrorism in
comparison to other Insurance Companies it is very facilitating to consumers. More
than 850,000 visitors travel to Pakistan in a year and the National Insurance Company
67
Limited NICL has determined to provide insurance cover of higher extent in case of
terrorism act. The company is also providing the cover at minimum rates equal with
the market for providing low risk in order to facilitate its clients. The foreigners
coming to Pakistan for different purposes like visitors, officials, technocrats,
diplomats etc. even if they accompanying with their family members they can also get
the insurance cover separately by the insurance company at very nominal rates.
4.25 HOW TO OBTAIN THIS INSURANCE COVER
Forms and other information are available at the following contact: One can acquire
the form from the above contacts and to fill it up then deposit the same along with
premium given in the form for the selected insurance cover with any office of
National Insurance Company Limited Pakistan the policy will be issued immediately.
If a customer needs any information about, clarification or assistance regarding the
policy he/she can reach to the company through this email address
[email protected] or this fax numbers 92-21-9204849.
4.26 HOW TO BUY THIS INSURANCE IN ABOARD By filling the form and submit online which is available at NICL website. Get a
cashier cheque or bank draft the value of the premium is given in the form for selected
insurance cover. While reaching at airport of one’s destination in Pakistan; one has to
go to the counter of National Bank of Pakistan (NBP) available in the arrival lounge,
get identified one-self and pay the agreed premium and collect policy.
It can also be done through the credit card at the same counter and collect the policy.
Ask for the claim form along with policy for easiness. The claim will be established
within 15 days after receiving of documents. Along with family members can also
68
get the insurance cover separately. In order to claim check the policy for elimination.
NICL will assess the claim documents in the light of insurance policy adopted.
4.27 HOW TO MAKE A CLAIM In case of accident one has to collect the medical bills and receipts of payments and
discharge slips from hospital and reports of all investigations, have to submit all these
documents to the NICL offices in Pakistan within 15 days to the leaving hospital In
case of invitee/official/ guest, submit the claim along with all documents through the
concerned department.
4.28 CHAPTER SUMMARY The center of this chapter was to provide brief introduction of PIAN and NICL and
discuss the perspective of their objectives, functions and their mission, although it was
focused and discussed on the system of their training and development, selection and
recruitment, and performance measuring standards. Also this chapter thoroughly
focuses on that how these organizations dealing with their customers and providing
them services. Regarding the selection and recruitment procedure it was highlighted
properly.
69
CHAPTER-5
DATA-ANALYSIS AND PRESENTATION OF RESULTS
5.1 INTRODUCTION
To collect the first hand data (primary data) is a mammoth job for a research work
especially when it is for a doctoral work. It becomes more difficult when one is doing
research in social science. The preparation of research tools such as questionnaire
needs a lot of home work. Before going to reach a respondent, the questionnaire
should be well defined and prepared. In a manner that it should cover up and fulfills
all fields and areas those are mainly required by the data needs of a doctoral thesis.
The components which are becoming the main parts of the required data are acquired
through the questionnaire. Here are the results of the demographic information of the
sample survey and inferential statistics presented in charts and tables given below:
5.2 DEMOGRAPHIC INFORMATION OF THE SAMPLE This section consists on the results of demographic characteristics of the sample.
The questioner collected from the PIAC that is (n=244) and NICL Sample is (n=160)
70
5.3 ANALYSIS OF DEMOGRAPHIC DATA, RESULTS AND CHARACTERISTICS OF THE SAMPLE (n=244) OF PIAC
Chart-5.1 Gender Wise Distribution of Respondents
Chart- 5.1 shows the gender distribution of the PIAC sample (n=244) who were the
respondents in the research. The above graph is showing that the majority is the male
respondents (64.75%). The remaining 35.25% consist of female respondents. The
difference in the gender representation is the larger number of male employees who
are working in PIAC.
64.75
35.25
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Male
Female
71
Chart- 5.2 Age wise Distribution of the Respondents (PIAC)
Chart 5.2 shows the Age wise distribution of the sample (n=244) they were as the
respondents in the survey research. The above graph is showing that the majority of
the respondents are of the age group of over thirty five (45.90%). The age group of
over forty five (29.51%), over twenty five are (20.49%) and the minimum
respondents are over fifty five years that are (4.10%). The larger number of
respondents is in the age group of over thirty five years working in PIAC. In our
collected data the chart shows that there is the majority of the young respondents.
20.49
45.90
29.51
4.10
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
OVER TWENTY FIVE YEARS
OVER THIRTY FIVE YEARS
OVER FORTY FIVE YEARS
OVER FIFTY FIVE YEARS
72
Chart–5.3 Department Wise Distribution of the Respondents
Chart-5.3 is showing the categories of the respondents department wise. The
respondents are working in different sections and they can have the variety of issues
as cultural, behavioral and HR related. In this chart the percentage of responses are
shown, in marketing (27.87%), in the management (25.41%), in technical (24.59%),
in supporting staff (12.30%) and in ministerial (9.84%). The categories show that the
marketing is first, management second, technical third, ministerial fourth and
supporting fifth. While looking at the size of sample (n=244); the questions were
regarding cultural adoption, common behavior, interaction among people of different
culture and languages.
27.87
25.4124.59
9.84
12.30
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Marketing
Management
Technical
Ministerial
Supporting
73
Chart-5.4 Distribution of Respondents According to Qualifications
Chart- 5.4 shows that the PIAC is the organization of qualified personnel. This
statement is based on the result of our survey. Majority of the respondents have
master degree (47.54%), the graduates are (42.62%), the intermediates are (5.74%),
matriculates are (3.28%) and some of the respondents also have PhD degree (0.82%).
PIAC is the organization which is facing the high competition in the international
market so that it considers employing the highly qualified candidates to meet the
market competition.
3.28
47.54
42.62
5.74
0.82
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Ph.D
Masters
Graduate
Intermediate
Matriculate
74
5.4 THE CHARACTERISTICS OF SAMPLE (NICL)
Demographic Presentation of the Sample (N=160)
Chart-5.5 Gender Wise Distribution of Respondents
Chart-5.5 is very clear to see the arrangement of male and female respondents in our
collected data. Pakistan is a country which is culturally and religiously more male
dominant society and there is less number of female employees (22.50%) working in
the PIAC organization. The above chart is showing that there is (77.50%) are male
respondents while looking at the sample size that is (n=160)
77.50
22.50
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
Male
Female
75
Chart-5.6 Age-Wise Distribution of Respondents (Nicl)
It’s important to focus the respondents of all age groups. The collected data is shown
in the above Chart 5.6 which is showing age groups of the respondents. In the age
group of above 25 years are (25.00%), in the age group of over 35 years are (37.50%),
the age group of over forty is (21.88%), and in the age group of over forty is
(15.63%). The samples of age categories consist on 20-60 years. The above Chart
explains that the majority of the respondents almost (62%) are in the age groups of
25-35 years it shows that the majority of young employees are working in the said
organization.
25.00
37.50
21.88
15.63
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
OVER TWENTY FIVE YEARS
OVER THIRTY FIVE YEARS
OVER FORTY FIVE YEARS
OVER FIFTY FIVE YEARS
76
Chart-5.7 Distribution of Respondents According to the Departments (NICL)
The above Chart-5.7 shows that the respondents are working in different departments
and they respond like as. The respondents belong to marketing are (27.50%),
management are (36.25%), technical are (18.75%), ministerial respondents are
(13.13%) and respondents from supporting are (4.38%). The Chart shows that the
majority of respondents (63.75%) belong two departments which are marketing and
management. The respondents of ministerial and supporting staff are less as (17.51%)
data shows that there is good number of respondents from each department.
27.50
36.25
18.75
13.13
4.38
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Marketing
Management
Technical
Ministerial
Supporting
77
Chart-5.8 - Distribution of Respondents According to Qualifications (NICL)
Chart 5.8 NICL is the organization of qualified personnel. This statement is based on
the result of our survey. Majority of the respondents have master degree (45.00%), the
graduates are also in majority (46.25%), the intermediates are (4.38%), matriculates
are (4.38%) and some of the respondents also have PhD degree. the organization is
facing the high competition in the international market so that it considers employing
the highly qualified skilled candidates to meet the market competition.
0.00
45.0046.25
4.38 4.38
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Ph.D
Masters
Graduate
Intermediate
Matriculate
78
5.5 INFERENTIAL STATISTICS OF PIAC
The questionnaire regarding the part of socio-culture adaptation scale is given in
Annexure-A which is instrumental for getting the degree of adaptability (difficulty) in
this part of research study. The Hypothesis-1 is based on the data analysis and results
of the questions that were asked from the respondents. Detail of results is in the form
of descriptive and inferential statistics are given as under. The Null (Ho) and
Alternate (Ha) Hypothesis are:
Hypothesis-1
Ho: The socio-culture adaption in organization is statistically not significant for the
organizational development
Ha: The socio-culture adaption in organization is statistically significant for the
organizational development
By using the EXCEL package we have got the ANOVA of ROWS and COLUMNS
and P-Value. The ANOVA results of analysis data of PIAC on socio-cultural
adaptation scale is shown in Table-6.1
79
5.5.1 Socio-Cultural Adaptation Scale- (PIAC)
Table-5.1
Variance and Standard Deviation of Socio-Cultural Adaptation Scale- (PIAC)
Anova: ROWS
SUMMARY Count Sum Average Variance SD
Q 1 5 244 48.8 719.2 26.82
Q2 5 244 48.8 825.2 28.73
Q 3 5 244 48.8 1149.2 33.90
Q 4 5 244 48.8 1423.2 37.73
Q 5 5 244 48.8 1031.2 32.11
Q 6 5 244 48.8 663.2 25.75
Q 7 5 244 48.8 553.2 23.52
Q 8 5 244 48.8 975.2 31.23
Q 9 5 244 48.8 89.2 9.44
Q 10 5 244 48.8 7.2 2.68
Q 11 5 244 48.8 713.2 26.71
Q 12 5 244 48.8 127.7 11.30
The above table-5.1 Anova of ROWS is showing the average, variance and standard
deviation (SD) of 12 questions asked on Likert Scales. The total 244 respondents on
each question showing a different variance with averages and SDs. Accordingly the
Q4 is showing a high variance and SD and Q10 a low variance and SD, which means
that Q4 “Understanding cultural differences” is showing an unlikely behavior and
both, the variance and standard deviation are larger than all other questions and it
reveals that respondents are unclear when they are asked about the understanding the
cultural differences.
80
Table-5.2
Analysis of Variance of Columns of Socio-Cultural Adaptation Scale- (PIAC)
Anova: COLUMN
Count Sum Average Variance
ND 12 478 39.83333 214.8788
SD 12 759 63.25 440.9318
MD 12 744 62 370.9091
GD 12 569 47.41667 548.0833
ED 12 378 31.5 600.8182
The table-5.2 Anova COLUMN shows the statistics of responses on Likert scales viz:
ND which stands for No Difficulty, SD for Slight Difficulty, MD for Moderate
Difficulty, GD for Great Difficulty and ED for Extreme Difficulty. The above table
depicted the highest average to SD which is 63.25 and lowest average to ED (31.5)
Table-5.3
Anova of Socio-Cultural Adaptation Scale- (PIAC)
ANOVA
Source of
Variation SS Df MS F P-value F crit
Between
Groups 9175.767 4 2293.942 5.271923 0.001147 2.539689
Within Groups 23931.83 55 435.1242
Total 33107.6 59
The above table-5.3 ANOVA is showing the P-value which is tested on the 5%
significance level (.05). The p-value is .00114 which is less than the significance
level (.05), so the null hypothesis is rejected, because the p-value is not equal or more
than level of significance but it is less than the level of significance therefore, we can
81
reject the null hypothesis and the result is statically significant. This result also
showing that the F test result (5.27) is higher than the F.crit (2.5) which justifies that
the null hypothesis is rejected.
Table- 5.4
Correlation Between Columns of Socio-Cultural Adaptation Scale- (PIAC)
ND SD MD GD ED
ND 1
SD -0.03411 1
MD -0.19965 0.761608 1
GD -0.42362 -0.6484 -0.58553 1
ED -0.00734 -0.81539 -0.75952 0.313753 1
The above Table-5.4 is showing the Correlation between the COLUMNs. The results
are showing only two variables having positive correlation and most of the others are
showing negative or inverse correlation. The correlation between SD and MD is
showing positive correlation, which means that increase in one variable will also
bring positive effect on other variable but the correlation coefficient is 0.761 in this
above result. The other positive correlation is between GD and ED that is 0.313.
5.5.2 Inferential Statistics of Hrm Practices (PIAC) The questionnaire regarding the part of HRM practices in PIAC is given in Annexure-
A which is instrumental for getting the degree of Agreement in this part of research
study. The Hypothesis-2 is based on the data analysis and results of the questions that
were asked from the respondents. Following given are the details of the results in the
form of descriptive and inferential statistics. The Null (Ho) and Alternate (Ha)
Hypothesis are:
82
Hypothesis 2:
Ho: The organizational efficiency is significantly correlated with the Socio-cultural
adaptation and HRM practices in the organization
Ha: The organizational efficiency is insignificantly correlated with the socio-
cultural adaptation and HRM practices in the organization
By using the EXCEL package we have got the ANOVA of ROWS and COLUMNS
and P-Value. The ANOVA results and analysis of data of PIAC on HRM practices is
shown in the above tables.
Table-5.5
Anova Rows Variance and Standard Deviation of Hrm Practices (PIAC)
Anova: ROWS
SUMMARY Count Sum Average Variance SD
Q 1 5 244 48.8 3125.2 55.90
Q2 5 244 48.8 937.7 30.62
Q 3 5 244 48.8 3734.7 61.11
Q 4 5 244 48.8 1592.2 39.90
Q 5 5 244 48.8 621.2 24.92
Q 6 5 244 48.8 1454.2 38.13
Q 7 5 244 48.8 1829.2 42.77
Q 8 5 244 48.8 2964.7 54.45
Q 9 5 244 48.8 1085.2 32.94
Q 10 5 244 48.8 1729.2 41.58
Q 11 5 244 48.8 691.2 26.29
Q 12 5 244 48.8 1003.2 31.67
83
Table -5.5- Anova of ROWS is showing the average, variance and standard deviation
(SD) of 12 questions asked on Likert Scales. The total 244 respondents on each
question showing a different variance with averages and SDs. Accordingly the Q3 is
showing a high variance and SD and Q5 a low variance and SD, which means that Q3
“I prefer to ask for help from my boss for transfer or promotion rather than a
stranger” is showing an unlikely behavior and both the variance and standard
deviation are larger than all other questions and it reveals that respondents are unclear
when they are asked about the understanding the Q3.
Table-5.6
Analysis of Variance of Columns of Hrm Practices (PIAC)
The table-5.6- Anova COLUMN shows the statistics of responses on Likert scales
viz: AGR which stands for “Agree”, SWAGR for “Some What Agree”, SWDAGR for
“Some What Disagree”, DAGR for “Disagree” and IDK for “I don’t know” the
questions asked on five scales. The above table depicted the highest average to AGR
which is 104.66 and lowest average to IDK (16.41)
Anova: COLUMN
Count Sum Average Variance
AGR 12 1256 104.6667 853.5152
SWAGR 12 853 71.08333 147.1742
SWDAGR 12 312 26 196.5455
DAGR 12 310 25.83333 97.60606
IDK 12 197 16.41667 24.08333
84
Table-5.7
Anova of Hrm Practices (PIAC)
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 68563.43 4 17140.86 64.98045 3.42E-20 2.539689
Within
Groups 14508.17 55 263.7848
Total 83071.6 59
The table-5.7 ANOVA is showing the P-value which is tested on the 5% significance
level (.05). The p-value of COLUMN which is 3.4 shows a greater value than the
significance level (.05), so that the hypothesis is accepted, because the p-value is not
equal or less than level of significance therefore, we can’t reject the null hypothesis.
This result also showing that the F (51.9) is greater than the F.crit (2.5) which justifies
that the null hypothesis is accepted.
Table-5.8
Correlation Between Columns of Hrm Practices (PIAC)
AGR SWAGR SWDAGR DAGR IDK
AGR 1
SWAGR -0.7807 1
SWDAGR -0.74977 0.282224 1
DAGR -0.68369 0.426401 0.336709 1
IDK -0.50494 0.510902 0.231236 0.040938 1
The above Table-5.8 is showing the Correlation between the COLUMNs. The results
are showing negative correlation between the AGR and other variables but positive
85
correlation between all other variables accept AGR. Therefore, correlation between
AGR and SWAGR (-0.7807) and AGR and SWDAGR (-0.74977) showing strong “r”
value and AGR, DAGR (-0.68369) a weak “r” value between these columns
variables. All other variables are showing very weak “r” value.
5.5.3- Inferential Statistics of Organizational Culture (PIAC) The questionnaire regarding the part of organizational culture in PIAC is given in
Annexure-A which is instrumental for getting the degree of Agreement in this part of
research study. The Hypothesis-3 is based on the data analysis and results of the
questions that were asked from the respondents. Following given are the details of the
results in the form of descriptive and inferential statistics. The Null (Ho) and
Alternate (Ha) Hypothesis are:
Hypothesis 3
Ho: The positive behavior of employees towards organizational culture is
perceived to be significant when organization performs well
Ha: The positive behavior of employees towards organizational culture is
perceived to be insignificant when organization performs well
By using the EXCEL package we have got the ANOVA of ROWS and COLUMNS
and P-Value. The ANOVA results of analysis data of PIAC on Organizational culture
in PIAC is shown in the Table- 5.5.
Table- 5.9
Analysis of Variance and Standard Deviation of Organizational Culture (PIAC)
86
Anova: ROWS
SUMMARY Count Sum Average Variance SD
Q 1 5 244 48.8 1145.2 33.84
Q2 5 244 48.8 1601.2 40.01
Q 3 5 244 48.8 4197.2 64.79
Q 4 5 244 48.8 1193.7 34.55
Q 5 5 244 48.8 535.2 23.13
Q 6 5 244 48.8 1393.2 37.33
Q 7 5 244 48.8 1489.2 38.59
Q 8 5 244 48.8 1312.7 36.23
Q 9 5 244 48.8 1164.7 34.13
Q 10 5 244 48.8 655.2 25.60
Q 11 5 244 48.8 157.2 12.54
Q 12 5 244 48.8 775.7 27.85
Table-5.9- Anova of ROWS is showing the average, variance and standard deviation
(SD) of 12 questions asked on Likert Scales. The total 244 respondents on each
question showing a different variance with averages and SDs. Accordingly the Q3
“Have you felt that after joining this organization your worth is increased and
other competitators are asking you to join them” is showing a high variance and
SD and Q11 a low variance and SD. Which means that Q3 is showing an unlikely
behavior and both the variance and standard deviation are larger than all other
questions and it reveals that respondents are unclear when they are asked about the
understanding their career after joining this organization Q3.
Table-5.10
Analysis of Variance of Columns of Organizational Culture (PIAC)
87
Anova: COLUMN
SUMMARY Count Sum Average Variance
AGR 12 1094 91.16667 718.697
SWAGR 12 887 73.91667 217.5379
SWDAGR 12 338 28.16667 135.0606
AGR 12 286 23.83333 112.8788
IDK 12 323 26.91667 182.8106
The table-5.10- Anova COLUMN shows the statistics of responses on Likert scales
viz: AGR which stands for Agree, SWAGR for Some What Agree, SWDAGR for
Some What Disagree, DAGR for Disagree and IDK for I don’t know. The above
table is showing the highest average to AGR which is 91.16 and lowest average to
DAGR (26.91)
Table-5.11
Anova of Organizational Culture (PIAC)
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 47444.77 4 11861.19 43.3845 2.13E-16 2.539689
Within Groups 15036.83 55 273.397
Total 62481.6 59
The ANOVA table-5.11 is showing the P-value which is tested on the 5% significance
level (.05). The p-value of Rows (2.13) is greater than the significance level (.05), so
the hypothesis is accepted, because the p-value is not equal or less than level of
significance therefore, we can’t reject the null hypothesis. This result also showing
88
that the F (43.38) is greater than the F.crit (2.53) which justifies that the null
hypothesis is accepted.
Table-5.12
Correlation Between Columns (PIAC)
AGR SWAGR SWDAGR DAGR IDK
AGR 1
SWAGR -0.31839 1
SWDAGR -0.56675 -0.3839 1
DAGR -0.46717 -0.2571 0.331567 1
IDK -0.78121 0.072445 0.422439 0.135957 1
The above Table-5.12 is showing Correlation between the COLUMNs. The results are
showing only four variables having positive correlation and most of the others are
showing negative or inverse correlation. The correlation between SWAGR and IDK
(0.072) which is very weak “r” value, the other correlation of SWADGR and DAGR
(.331) and SWADGR and IDK (.422) are also showing weak “r” value. The DAGR
and IDK is 0.13 a very weak positive “r” value.
5.6 INFERENTIAL STATISTICS OF NICL
The questionnaire regarding the part of socio-culture adaptation scale is given in
Annexure-A which is instrumental for getting the degree of adaptability (difficulty) in
this part of research study. The Hypothesis-1 is based on the data analysis and results
of the questions that were asked from the respondents. Following given are the details
of the results in the form of descriptive and inferential statistics. The Null (Ho) and
Alternate (Ha) Hypothesis are:
89
Hypothesis-1
Ho: The socio-culture adaption in Organization is statistically not significant for
the organizational development
Ha: The socio-culture adaption in Organization is statistically significant for the
organizational development
By using the EXCEL package we have got the ANOVA of ROWS and COLUMNS
and P-Value. The ANOVA results and data analysis of PIAC on socio-cultural
adaptation scale is already given as under.
5.6.1 Socio-Cultural Adaptation Scale of (NICL)
Table-5.13
Variance and Standard Deviation of Socio-Cultural Adaptation Scale (NICL)
Anova: ROWS
SUMMARY Count Sum Average Variance SD
Row 1 5 156 31.2 357.7 18.9
Row 2 5 156 31.2 441.2 21.0
Row 3 5 156 31.2 89.2 9.4
Row 4 5 156 31.2 309.2 17.6
Row 5 5 156 31.2 221.2 14.9
Row 6 5 156 31.2 221.2 14.9
Row 7 5 156 31.2 419.2 20.5
Row 8 5 156 31.2 57.2 7.6
Row 9 5 156 31.2 125.2 11.2
Row 10 5 156 31.2 104.7 10.2
Row 11 5 156 31.2 87.2 9.3
Row 12 5 156 31.2 513.2 22.7
Table-5.13 Anova ROWS is showing the average, variance and standard deviation
90
(SD) of 12 questions asked on Likert Scales. The total 160 respondents on each
question showing a different averages and SDs. Accordingly the Q12 is showing a
high average 513.2 and SD 22.7 and Q8 a low average 57.2 and SD 7.6, which means
that Q12 “Dealing with someone who is unpleasant” which is showing an unlikely
behavior and both, the average and standard deviation are larger than all other
questions and it reveals that respondents are unclear when they are asked about the
understanding the cultural differences.
Table-5.14
Analysis of Variance of Columns of Socio-Cultural Adaptation (NICL)
Anova: COLUMN
Groups Count Sum Average Variance
ED 12 404 33.66667 141.5152
GD 12 410 34.16667 178.5152
MD 12 381 31.75 157.4773
ND 12 326 27.16667 169.0606
SD 12 351 29.25 386.3864
The above table-5.14 ANOVA COLUMN shows the statistics of responses on Likert
scales viz: ND which stands for No Difficulty, SD for Slight Difficulty, MD for
Moderate Difficulty, GD for Great Difficulty and ED for Extreme Difficulty. The
table depicted the highest average to GD which is 34.16 and lowest average to SD
29.25
91
Table-5.15
Anova of Socio-Cultural Adaptation (NICL)
ANOVA
Source of
Variation SS df MS F P-value F crit
Between groups 423.1 4 105.775 0.512002 0.727129 2.539689
Within Groups 11362.5 55 206.5909
Total 11785.6 59
The table-5.15 ANOVA is showing the P-value which is tested on the 5% significance
level (.05). The p-value of Rows (0.7) is greater than the significance level (.05), so
the hypothesis is accepted, because the p-value is not equal or less than level of
significance therefore, we can’t reject the null hypothesis. This result also showing
that the F (0.5) is more than the F.crit (2.53) which justifies that the null hypothesis is
accepted.
Table- 5.16
Correlation Between Columns (NICL)
ED GD MD ND SD
ED 1
GD 0.371014 1
MD -0.09865 0.547895 1
ND -0.58735 -0.64802 -0.38472 1
SD -0.40588 -0.82538 -0.69664 0.380058 1
The above table-5.16 shows the Correlation between Columns of responses on Likert
scales viz: ND which stands for No Difficulty, SD for Slight Difficulty, MD for
92
Moderate Difficulty, GD for Great Difficulty and ED for Extreme Difficulty. The
results of above Table Correlation between the COLUMNs are showing three
variables having weak positive correlation and most of the others are showing
negative or inverse correlations. The correlations between all variables are showing a
weak “r” value except one correlation between GD and SD which is a strong “r” value
(-0.825).
5.6.2 Inferential Statistics of Hrm Practices (NICL)
The questionnaire regarding the part of human resources management is given in
Annexure ----------- which is instrumental for getting the degree of adaptability
(difficulty) in this part of research study. The Hypothesis-2 is based on the data
analysis and results of the questions that were asked from the respondents. Following
given are the details of the results in the form of descriptive and inferential statistics.
The Null (Ho) and Alternate (Ha) Hypothesis are:
Hypothesis 2:
Ho: The organizational efficiency is significantly correlated with the Socio-cultural
adaptation and HRM practices in the organization
Ha: The organizational efficiency is insignificantly correlated with the socio-
cultural adaptation and HRM practices in the organization
By using the EXCEL package we have got the ANOVA of ROWS and COLUMNS
and P-Value. The ANOVA results of analysis data of PIAC on socio-cultural
adaptation scale is shown in the following tables:
93
Table-5.17
Anova Rows, Variance and Standard Deviation of Hrm Practices (NICL)
Anova ROWS
SUMARY Count Sum Average Variance SD
Q1 5 156 31.2 93.2 9.7
Q 2 5 156 31.2 315.2 17.8
Q 3 5 156 31.2 273.2 16.5
Q 4 5 156 31.2 191.2 13.8
Q5 5 156 31.2 309.2 17.6
Q6 5 156 31.2 165.2 12.9
Q7 5 156 31.2 301.2 17.4
Q8 5 156 31.2 419.2 20.5
Q9 5 156 31.2 333.2 18.3
Q10 5 156 31.2 85.2 9.2
Q11 5 156 31.2 45.2 6.7
Q12 5 156 31.2 87.2 9.3
Table-5.17 of Anova of ROWS is showing the average, variance and standard
deviation (SD) of 12 questions asked on Likert Scales. The total 160 respondents on
each question showing a different averages and SDs. Accordingly the Q8 is showing a
high average 419.2 and SD 20.5. Q11 a low average 45.2 and SD 6.7, which means
that Q11 “Are you satisfied from your organization in order to selection policy”
is showing an unlikely behavior and both the average and standard deviation are
larger than all other questions and it reveals that respondents are uncertain when they
are asked about the understanding the Q11.
94
Table- 5.18
Analysis of Variance of Columns of Hrm Practices (NICL)
Anova: COLUMN
Groups Count Sum Average Variance
AGR 12 442 36.83333 108.697
SWAGR 12 428 35.66667 164.9697
SWDAGR 12 420 35 137.8182
DAGR 12 332 27.66667 255.1515
IDK 12 250 20.83333 82.51515
The table-5.18 of Anova COLUMN shows the statistics of responses on Likert scales
viz: AGR which stands for “Agree”, SWAGR for “Some What Agree”, SWDAGR for
“Some What Disagree”, DAGR for “Disagree” and IDK for “I don’t know” the
questions asked on five scales. The above table depicted the highest average to AGR
which is 36.83 and lowest average to IDK (20.83)
Table- 5.19
Nalysis of Variance of Hrm Practices (NICL)
ANOVA
Source of
Variation SS Df MS F P-value F crit
Between
Groups 2232.933 4 558.2333 3.725771 0.009394 2.539689
Within Groups 8240.667 55 149.8303
Total 10473.6 59
The table-5.19 of ANOVA is showing the P-value which is tested on the 5%
significance level (.05). The p-value is .009 which is less than the significance level
(.05), so the null hypothesis is rejected, because the p-value is not equal or more than
95
level of significance but it is less than the level of significance therefore, we can reject
the null hypothesis and the result is statically significant. This result also showing that
the F test result (3.72) is higher than the F.crit (2.53) which justifies that the null
hypothesis is rejected.
Table-5.20
Correlation Between Columns of Hrm Practices (NICL)
AGR SWAGR SWDAGR DAGR IDK
AGR 1
SWAGR 0.292826 1
SWDAGR -0.29265 0.359334 1
DAGR -0.36065 -0.87085 -0.59145 1
IDK -0.54939 -0.68308 -0.42454 0.651173 1
The above table-5.20 shows the Correlation between Columns of responses on Likert
scales viz: AGR which stands for “Agree”, SWAGR for “Some What Agree”,
SWDAGR for “Some What Disagree”, DAGR for “Disagree” and IDK for “I don’t
know”. The results of the table Correlation between the COLUMNs is showing three
variables having weak positive correlation and most of the others are showing
negative or inverse correlations. The correlations between all variables are showing a
weak “r” value except one correlation between SWADAGR and DAGR which is a
strong “r” value (-0.87).
96
5.6.3 Inferential Statistics of Organizational Culture (NICL)
The questionnaire regarding the part of organizational culture is given in Annexure ---
---- which is instrumental for getting the degree of adaptability (difficulty) in this part
of research study. The Hypothesis-3 is based on the data analysis and results of the
questions that were asked from the respondents. Following are the details of the
results in the form of descriptive and inferential statistics. The Null (Ho) and
Alternate (Ha) Hypothesis are:
Hypothesis 3
Ho: The positive behavior of employees towards organizational culture is
perceived to be significant when organization performs well
Ha: The positive behavior of employees towards organizational culture is
perceived to be insignificant when organization performs well
By using the EXCEL package we have got the ANOVA of ROWS and COLUMNS
and P-Value. The ANOVA results of analysis data of PIAC on socio-cultural
adaptation scale is shown in following tables:
97
Table-5.21
Analysis of Variance and Standard Deviation of Organizational Culture (NICL)
Anova Rows
SUMMARY Count Sum Average Variance SD
Q 1 5 156 31.2 525.2 22.9
Q 2 5 156 31.2 441.2 21.0
Q 3 5 156 31.2 189.2 13.8
Q 4 5 156 31.2 309.2 17.6
Q 5 5 156 31.2 285.2 16.9
Q 6 5 156 31.2 301.2 17.4
Q 7 5 156 31.2 331.7 18.2
Q 8 5 156 31.2 264.7 16.3
Q 9 5 156 31.2 269.2 16.4
Q 10 5 156 31.2 73.7 8.6
Q 11 5 156 31.2 479.7 21.0
Q 12 5 156 31.2 520.2 21.9
Table-5.21 of Anova ROWS is showing the average, variance and standard deviation
(SD) of 12 questions asked on Likert Scales. The total 160 respondents on each
question showing a different averages and SDs. Accordingly the Q1 is showing a high
average 525.2 and SD 22.9. Q10 a low average 73.7 and SD 8.6, which means that Q1
“Do you feel any change in your personality and behavior after joining this
organization” is showing an unlikely behavior and both the average and standard
deviation are larger than all other questions and it reveals that respondents are
uncertain when they are asked about understanding of the Q11.
98
Table-5.22
Analysis of Variance of Organizational Culture (NICL)
Anova : COLUMN
Groups Count Sum Average Variance
AGR 12 299 24.91 258.81
SWAGR 12 409 34.08 192.08
SWDAGR 12 482 40.16 187.78
DAGR 12 506 42.16 105.60
IDK 12 176 14.66 56.60
The above table-5.22 of Anova within the COLUMN shows the responses to the
Questions on Likert scales viz: AGR which stands for Agree, SWAGR for Some
What Agree, SWDAGR for Some What Disagree, DAGR for Disagree and IDK for I
don’t know. The above table shows the highest average to DAGR which is 42.16 and
the lowest average is to IDK which is (14.66).
Table-5.23
Anova of Organizational Culture (NICL)
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 6261.767 4 1565.442 9.77309 4.8E-06 2.539689
Within Groups 8809.833 55 160.1788
Total 15071.6 59
99
The table-5.32 of ANOVA is showing the P-value which is tested on the 5%
significance level (.05). The p-value of Rows (4.8) is greater than the significance
level (.05), so the hypothesis is accepted, because the p-value is not equal or less than
level of significance therefore, we can’t reject the null hypothesis. This result also
showing that the F (9.77) is more than the F.crit (2.53) which justifies that the null
hypothesis is accepted.
Table-5.24
Correlation Between Columns of Organizational Culture (NICL)
AGR SWAGR SWDAGR DAGR IDK
AGR 1
SWAGR -0.52145 1
SWDAGR -0.48405 -0.24659 1
DAGR -0.62128 0.265422 -0.06477 1
IDK 0.552543 -0.6405 -0.24366 -0.40839 1
The above Table-5.24 shows the Correlation between Columns of responses on Likert
scales viz: AGR which stands for “Agree”, SWAGR for “Some What Agree”,
SWDAGR for “Some What Disagree”, DAGR for “Disagree” and IDK for “I don’t
know”. The results of above table-5.10.4 Correlation between the COLUMNs are
showing three variables having weak positive correlation and most of the others are
showing negative or inverse correlation. The correlations between all variables are
showing a very weak “r” value except one correlation between SWAGR and IDK
which is also a weak “r” value (-0.64s).
100
5.7 CHAPTER SUMMARY
This chapter focuses on the data analysis and results. The sample size PIAC is
(n=244) and NICL is (n=160). The research tools prepared such as well defined
questionnaire based on these areas demographic information, Socio-culture
adaptation, Human Resources Management Practices and Organizational Culture are
used to analyze and tested the Hypothesis and brought the results which are in the
tables of ANOVA: Rows, tables of ANOVA: Columns and tables of Correlation
between Columns. The chapter came to an end with the selection of statistical
methods used to examine the data collected from the both organizations PIAC and
NICL.
101
CHAPTER-6
COMPARATIVE ANALYSIS OF RESULTS OF PIAC AND NICL 6.1 INTRODUCTION The chapter identifies the comparative analysis of the demographic survey and results
of the PIAC and NICL. There are the charts and tables in which demographic
information, Socio-culture adaptation, Human Resources Management Practices and
Organizational Culture are used to analyze and define and these areas PIAC and
NICL are tested with the Hypothesis to bring the results which are in the tables of
ANOVAs where the Significance level, Variance, Average, Standard deviation and P-
value are focused. On the basis of analysis and results the Null Hypothesis rejected or
accepted.
6.2 COMPARATIVE ANALYSIS OF THE DEMOGRAPHICS SURVEY OF
PIAC AND NICL
Following is the comparative analysis of the demographics survey of PIAC and NICL
which is shown in the given charts and tables.
102
Chart-6.1 Gender Distribution of Respondents
6.2.1 Gender Distribution of Respondents PIAC and NICL
The number of respondents is quite clear in color wise blue for male and red for
female to see the strength of male and female respondents of PIAC & NICL in our
collected data which is shown above in the Chart 6.1. Pakistan is a country which is
culturally and religiously more male dominant society and there is very less number
of female employees working in the organizations. The above chart is showing that
there are the sound majority of males and then female respondents which is also
158
124
86
36
0
20
40
60
80
100
120
140
160
180
PIAC NICL
Male
Female
103
encouraging, while looking at the size of sample. The questions were regarding
cultural and the impact of culture in a HRM practices that is well explained.
Chart-6.2 Age Group of Respondents (PIAC & NICL)
6.2.2 Age-Wise Distribution of Respondents of (PIAC & NICL)
To focus the all age groups of respondents is very important. The collected data which
is shown in the Chart 6.2 is of different age groups of respondents which are 25 years
35 years 45 years 55 years majority of respondents, in both organizations are 35 years
and the lesser number of respondents is 55 years. The above chart shows that the
majority of young people are working in both organizations. In the chart age group of
35 years are more and less in age group of 55 years. These age groups of employees
are working in the said organization. The less number of respondents are in age group
of above 55 years.
50
112
72
10
40
60
35
25
0
20
40
60
80
100
120
OVER TWENTYFIVE YEARS
OVER THIRTYFIVE YEARS
OVER FORTYFIVE YEARS
OVER FIFTY FIVEYEARS
PIAC
NICL
104
Chart-6.3 Departments of Respondents (PIAC & NICL)
6.2.3 Department Wise Distribution of Respondents (PIAC & NICL)
The chart shows the respondents of different departments of (PIAC & NICL) which
are very important for running of any organization. The collected data which is shown
above in the Chart 6.3 is showing departments of respondents marketing,
management, technical, ministerial, supporting staff. The respondents of PIAC which
are more in marketing then management then technical then supporting and
ministerial and the respondents of NICL which are more in management then
marketing then technical and ministerial and in the last is supporting. The chart shows
that the majority of the respondents are from marketing, management and technical in
the both organizations. There is the less number of respondents in ministerial and
supporting staff.
68
62 60
24
30
44
58
30
21
70
10
20
30
40
50
60
70
80
Marketing Management Technical Ministerial Supporting
PIAC
NICL
105
Chart-6.4 Qualifications of Respondents (PIAC & NICL)
6.2.4 Qualification Wise Distribution of Respondents Of (PIAC & NICL)
According to our collected data which is shown above in the Chart-6.4 the number of
respondents is very high in master and graduate degree in both organizations. The
other respondents are intermediates, matriculates and PhD which are very less.
Comparatively in PIAC the respondents are more qualified than NICL. Pakistan is a
country which has very less number of literacy. The above chart is showing that there
is the sound majority of qualified employees working in the said organizations. The
overall strength of qualified respondents of PIAC & NICL is encouraging, while
looking at the size of sample of organizations. The questions were asked from
respondents regarding cultural and the impact of culture on human recourses
management practices and the questioner is well explained.
8
116
104
14 20
72 74
7 70
20
40
60
80
100
120
140
Ph.D Masters Graduate Intermediate Matriculate
PIAC
NICL
106
Table-6.1
Comparative Analysis of Variance of Rows
COMPONENTS ITEMS PIAC NICL
SOCIO-CULTURAL ADAPTATION SCALE
Variance SD Variance SD Q 1 719.2 26.82 357.7 18.9Q2 825.2 28.73 441.2 21.0Q 3 1149.2 33.90 89.2 9.4Q 4 1423.2 37.73 309.2 17.6Q 5 1031.2 32.11 221.2 14.9Q 6 663.2 25.75 221.2 14.9Q 7 553.2 23.52 419.2 20.5Q 8 975.2 31.23 57.2 7.6Q 9 89.2 9.44 125.2 11.2Q 10 7.2 2.68 104.7 10.2Q 11 713.2 26.71 87.2 9.3Q 12 127.7 11.30 513.2 22.7
HRM PRACTICES
Q 1 3125.2 55.90 93.2 9.7Q2 937.7 30.62 315.2 17.8Q 3 3734.7 61.11 273.2 16.5Q 4 1592.2 39.90 191.2 13.8Q 5 621.2 24.92 309.2 17.6Q 6 1454.2 38.13 165.2 12.9Q 7 1829.2 42.77 301.2 17.4Q 8 2964.7 54.45 419.2 20.5Q 9 1085.2 32.94 333.2 18.3Q 10 1729.2 41.58 85.2 9.2Q 11 691.2 26.29 45.2 6.7Q 12 1003.2 31.67 87.2 9.3
ORGANIZATIONAL CULTURE
Q 1 1145.2 33.84 525.2 22.9Q2 1601.2 40.01 441.2 21.0Q 3 4197.2 64.79 189.2 13.8Q 4 1193.7 34.55 309.2 17.6Q 5 535.2 23.13 285.2 16.9Q 6 1393.2 37.33 301.2 17.4Q 7 1489.2 38.59 331.7 18.2Q 8 1312.7 36.23 264.7 16.3Q 9 1164.7 34.13 269.2 16.4Q 10 655.2 25.60 73.7 8.6Q 11 157.2 12.54 479.7 21.9Q 12 775.7 27.85 525.2 22.9
NOTE: COUNT OF COLUMN # 5 SUM OF PIAC# 244, SUM OF NICL#156 PIAC AVERAGE=48.8, NICL AVERAGE = 31.2
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Table-6.2
Comparative Analysis of Variance of Columns
RESPONSE ITEM
PIAC NICL
Sum Average Variance Sum Average Variance
SOCIO-CULTURE ADAPTATION
ND 478 39.83 214.88 404 33.66 141.52
SD 759 63.25 440.93 410 34.17 178.52
MD 744 62 370.91 381 31.75 157.48
GD 569 47.42 548.08 326 27.17 169.06
ED 378 31.5 600.81 351 29.25 386.39
HRM PRACTICES
AGR 1256 104.67 853.51 442 36.83 108.67
SWAGR 853 71.08 147.17 428 35.67 164.97
SWDAGR 312 26 196.54 420 35 137.82
DAGR 310 25.83 97.60 332 27.67 255.15
IDK 197 16.41 24.083 250 20.83 82.51
ORGANIZATIONAL
CULTURE
AGR 1094 91.16 718.69 299 24.91 258.81
SWAGR 887 73.91 217.54 409 34.08 192.08
SWDAGR 338 28.16 135.06 482 40.16 187.78
DAGR 286 23.83 112.88 506 42.16 105.60
IDK 323 26.91 182.81 176 14.66 56.60Note: 5 Point Likert scales viz:ND = No Difficulty, SD= Slight Difficulty, MD= Moderate Difficulty, GD= Great Difficulty, ED= Extreme Difficulty. AGR= Agree, SWAGR =Some What Agree, SWDAGR= Some What Disagree, DAGR=Disagree and IDK = I don’t know.
Table-6.3
Comparative Analysis of F-Statistics and P-Value
PIAC NICL
F P-value F crit F P-value F crit
SOCIO-CULTURE
ADAPTATION 5.27 0.00114 2.539 0.512 0.7271 2.539
HRM PRACTICES 64.98045 3.42 2.539 3.725771 0.009394 2.539
ORGANIZATIONAL
CULTURE 43.3845 2.13 2.539 9.77309 4.8 2.539
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Table-6.4
Comparative Summary of Results
PIAC NICL SOCIO-CULTURAL
ADAPTATION SCALE ANOVA OF VARIANCE AND STANDARD DEVIATION (Source: TABLE 6.1)
The total 244 respondents on each question showing a different variances with average and SDs. Accordingly the Q4 is showing a high variance (1423.2) and SD (37.73) and Q10 a low variance (7.2) and SD (2.68), which means that Q4 “Understanding cultural differences” is showing an unlikely behavior and both, the variance and standard deviation are larger than all other questions and it reveals that respondents are unclear when they are asked about the understanding the cultural differences.
The total 156 respondents on each question showing a different variance with averages and SDs. Accordingly the Q12 is showing a high variance 513.2 and SD 22.7 and Q8 a low variance 57.2 and SD 7.6, which means that Q12 “Dealing with someone who is unpleasant” which is showing an unlikely behavior and both, the variance and standard deviation are larger than all other questions and it reveals that respondents are unclear when they are asked about the understanding the cultural differences.
ANOVA OF COLUMNS (Source:TABLE-6.2)
The above table 6.2 depicted the highest average to SD which is 63.25 and lowest average to ED (31.5). Therefore, the employees are feeling slight difficulty in socio-cultural adaptability in the PIAC
The table 6.2 depicted the highest average to SD which is 34.17 and lowest average to GD (27.17). Therefore, the employees are feeling slight difficulty in socio-cultural adaptability in the NICL.
ANOVA OF F-VALUE AND P-VALUE (Source:TABLE-6.3) Hypothesis-1 Ho: The socio-culture adaption in Organization is statistically not significant for the organizational development Ha: The socio-culture adaption in Organization is statistically significant for the organizational development
The ANOVA part is showing the P-value which is tested on the 5% significance level (.05). The p-value is .00114 which is less than the significance level (.05), so the null hypothesis is rejected. The F test result (5.27) is high than the F.crit (2.5) which justify that the null hypothesis is rejected.
The ANOVA last part is showing the P-value which is tested on the 5% significance level (.05). The p-value of Rows (0.7) is greater than the significance level (.05), so the hypothesis is accepted, This result also showing that the F (0.5) is less than the F.crit (2.53) which justify that the null hypothesis is accepted
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HRM PRACTICE
ANOVA OF VARIANCE AND STANDARD DEVIATION (Source:TABLE 6.1)
The total 244 respondents on each question showing a different variance with averages and SDs. Accordingly the Q3 is showing a high variance and SD and Q5 a low average and SD, which means that Q3 “I prefer to ask for help from my boss for transfer or promotion rather than a stranger.” is showing an unlikely behavior and both the variance and standard deviation are larger than all other questions and it reveals that employees are under the influence of their boss.
The total 156 respondents on each question showing a different variance with averages and SDs. Accordingly the Q8 is showing a high variance 419.2 and SD 20.5. Q11 a low variance 45.2 and SD 6.7, which means that Q8 “Before I go on transfer, I like to know about the reasons.” is showing an unlikely behavior and both the variance and standard deviation are larger than all other questions and it reveals that employees are uncertain about their Job placement
ANOVA OF COLUMNS (Source:TABLE-6.2)
The above table 6.2 depicted the highest average to AGR which is 104.66 and lowest average to IDK (16.41). Therefore, employees are showing a high degree of agreement with questions regarding HRM practices.
The above table depicted the highest average to AGR which is 36.83 and lowest average to IDK (20.83).Therefore, employees are showing a high degree of agreement with questions regarding HRM practices.
ANOVA OF F-VALUE AND P-VALUE (Source:TABLE-6.3) Hypothesis 2 Ho: The organizational efficiency is significantly correlated with the socio-cultural adaptation and HRM practices in the organization Ha: The organizational efficiency is insignificantly correlated with the socio-cultural adaptation and HRM practices in the organization
The ANOVA is showing the P-value which is tested on the 5% significance level (.05). The p-value is 3.4 shows a greater value than the significance level (.05), so that the hypothesis is accepted. This result also showing that the F (51.9) is greater than the F.crit (2.5) which justifies that the null hypothesis is accepted.
The ANOVA is showing the P-value which is tested on the 5% significance level (.05). The p-value is .009 which is less than the significance level (.05), so the null hypothesis is rejected; therefore the result is statistically significant. This result also showing that the F test result (3.72) is high than the F.crit (2.53) which justify that the null hypothesis is rejected.
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ORGANIZATIONAL
CULTURE ANOVA OF VARIANCE AND
STANDARD DEVIATION (Source:TABLE 6.1)
The total 244 respondents on each question showing a different variance with averages and SDs. Accordingly the Q3 “Have you felt that after joining this organization your worth is increased and other competitators are asking you to join them” is showing a high variance and SD and Q11 a low variance and SD. Which means that Q3 is showing an unlikely behavior and both the variance and standard deviation are larger than all other questions and it reveals that respondents are unclear when they are asked about the understanding their career after joining this organization. .
The total 156 respondents on each question showing a different variance with averages and SDs. Accordingly the Q1 is showing a high variance 525.2 and SD 22.9. Q10 a low variance 73.7 and SD 8.6, which means that Q1 “Do you feel any change in your personality and behavior after joining this organization” is showing an unlikely behavior and both the variance and standard deviation are larger than all other questions and it reveals that respondents are uncertain when they are asked about the organizational cultural and changes.
ANOVA OF COLUMNS (Source:TABLE-6.2)
The above table 6.2 is showing the highest average to AGR which is 91.16 and lowest average to DAGR (26.91). Therefore, employees are showing a high degree of agreement with questions regarding organizational culture.
The above table 6.2 shows the highest average to DAGR which is 42.16 and the lowest average is to IDK which is (14.66). Therefore, employees are showing a high degree of disagreement with questions regarding organizational culture
ANOVA OF F-VALUE AND P-VALUE (Source:TABLE-6.3) Hypothesis 3 Ho: The positive behavior of employees towards organizational culture is perceived to be significant when organization perform well Ha: The positive behavior of employees towards organizational culture is perceived to be insignificant when organization perform well
The ANOVA is showing the P-value which is tested on the 5% significance level (.05). The p-value (2.13) is greater than the significance level (.05), so the null hypothesis is accepted, because the p-value is not equal or less than level of significance therefore, we can’t reject the null hypothesis. This result also showing that the F (43.38) is greater than the F.crit (2.53) which justifies that the null hypothesis is accepted
The ANOVA is showing the P-value which is tested on the 5% significance level (.05). The p-value (4.8) is greater than the significance level (.05), so the hypothesis is accepted, because the p-value is not equal or less than level of significance therefore, we can’t reject the null hypothesis. This result also showing that the F (9.77) is more than the F.crit (2.53) which justify that the null hypothesis is accepted.
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6.3 CHAPTER SUMMARY
This chapter focuses on the comparative analysis of the demographic survey and
results of the PIAC and NICL. The charts and tables are well defined which are based
on these areas demographic information, Socio-culture adaptation, Human Resources
Management Practices and Organizational Culture and are used to analyze and
Hypothesis were tested on the basis of F-Statistics and P-value to brought the results
which are shown in the tables of ANOVAs. The chapter came to an end with the
results that Hypothesis rejected or accepted.
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CHAPTER-7
CONCLUSIONS AND SUGGESTIONS
7.1 INTRODUCTION The issue of organizational culture and its impact on the human resources
management practices in the organizations in developing countries generally and
focusing on Pakistani organizations particularly was the main purposes of our
research. A huge literature on the organizational culture and the human resources
management practices was reviewed to reach at the consensus for a detailed study of
two Pakistani organizations viz; Pakistani International Airline Corporation (PIAC)
and National Insurance Company Limited (NICL). To particularise the focus of the
study, the objectives and hypothesis were developed to find out the impact of
organizational culture on human resources management practices in Pakistan.
Considering the results of the above study, the conclusions and suggestion are given
accordingly.
7.2 CONCLUSIONS
Human resources management is to be a potentially powerful lever for shaping and
changing the culture of an organization to make the organizations more effective
(Schien, 1983; Ulrich, 1997). Therefore, the above study has revealed a significant,
solid and meaningful relationship between organizational culture and human
resources management practices.
The study of two large public organizations have provided the variation in the results
which justifies and support to the previous studies on the subject that “the adoption of
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human resources management practices is contingent on the specific requirements of
each organization observed” Schuler, R.S. and Jakson, S.E (1987).
Following are the conclusions as:
The result of descriptive statistics shows that the organization NICL is more
male dominant then the PIAC. The gender distribution of respondents shows
that there are more female workers in PIAC which constitute more than 35%
of total respondents whereas at NICL there are only 22.5% female workers.
This result shows a significant difference of socio-cultural characteristics
between these two organizations kept under study which reveals a clear and
significant difference of human resources management practices especially
when there is selection between male and female employees at PIAC and
NICL in Pakistan, This difference is due to different organizational culture in
two different organizations and its impact on their HRM practices. From the
above result it is evident that there is significant impact of organizational
culture on of human resources management practices.
Another result of age group and qualification shows the similarity of
organizational culture and of human resources management practices in both
organizations that the young age group and qualified employees are in
majority in both the organizations.
Based on the results of inferential statistics it is concluded that “socio-cultural
adaption in organization is statistically significant for the organizational
development in PIAC, which means that PIAC is under predominant effect of
socio-culture and its magnitude which have strong influence on HRM. It
justifies the notion that core values within organizational culture have strong
114
influence on management practices and in shaping human resources
management practices (Kanungo,(1982) and Luthans, Fred. (2oo5)).
Meanwhile the results of organization NICL on socio-cultural adaption scale
shows its rigidity towards in the socio-cultural adoption, therefore it is
concluded that PIAC has more openness towards adopting socio-cultural
changes which is not found in the NICL organization. Roger’s & Wright
(1998) concluded that there is evidence that support the relationship between
organizational performance and human resources management practices, but
this relationship is not universal.
The conclusion suggested by the research findings is derived from hypothesis
“Ho- the organizational efficiency is significantly correlated with the socio-
cultural adoption and human resources management practices in the
organization”, suggest that one organization is aware about the relationship
between human resources management practices and organization as
according to the argument given by Barney, J.B (1995), that human resource
practices were found to predict performance positively in public organization.
The results of same hypothesis applied in the organization NICL suggest
against the results of PIAC by rejecting the null hypothesis regarding human
resources management practices. Therefore the NICL results again have
justified that this organization is not adopting the modern human resources
management practices in the organization as compare to PIAC.
Bruce defines organizational culture as a complex issue that essentially
includes all of a groups shared values, attitudes, beliefs, assumptions,
artefacts, and behaviours which guides individual actions even to the extent
115
that members are not even aware that they are influenced by it. The above
study focus on the organizational culture regarding the hypothesis 3 and its
results which is “the positive behaviour of employees towards organizational
culture as perceived to be significant when organization performs well” that is
in the organization PIAC when employees “respondents have showed a high
degree of agreement with questions regarding organizational culture and the
PIAC fall under the “competing culture” therefore it is following the cultural
values such as flexibility, internal focus and external focus as well as
hierarchical organization following stereo-type large bureaucratic style.
(Bruce M. Tharp).
The results of NICL regarding the hypothesis 3 is interesting that NICL
employees “respondents” are showing a high degree of disagreement with the
questions regarding organizational culture therefore it is concluded that NICL
is highly structural and formal place to work “control culture organization
type”.
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7.3 SUGGESTIONS
It is suggested that as numerous organizational aspects are attached with
organizational culture and human resources management those might be kept
in further study by the future research scholars, which due to various
limitations this study couldn’t have touched .
Due to the limitations of this study and its results, the policy maker can not
apply or decide to bring changes in the organizations HRM practices.
Therefore, further studies are essential to completely learn and understand the
impact of organizational culture on human resources management practices in
the Pakistani organizations. For this purpose it is suggested that the explicit
models should be used in further study of public sector organizations for more
different results which can be generalized to meet the organizational and
human resources management challenges in Pakistan.
The question may arise that do human resources management policies often or
rarely get implemented? Although human resources management practices
may be culture-sensitive, do they hold a complete effect for employees? This
debate remains unexplored and, if followed, will guide to the analysis of the
correlations between the intentions and the commitments of managers, and the
impact on employees, while sustained, ‘no HRM policy is a good policy
unless it is practiced successfully’.
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Limitations of the research
Other than the age, education, gender there are language, race and income
levels are also important factors those effects on organizational culture. Due to
time constraints these were not considered in the data analysis.
The results were based on the questionnaire containing 36 items that measures
organizational culture, human resources management and socio-cultural
adoption at a superficial level. Therefore multiple level of culture measures are
required (Schien . 1985).
The effect of shifting response positions i.e., altering the “I don’t know” from
the middle positions to the end of the response option where Likert type
response scale are required.
Evaluate the organizational culture measurement tool and the unlike response
scales using the data from the same organization with matching sample.
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Appendix A:
Formal request to the participants of (PIAC) to fill the questionnaire Subject: Survey on the Impact of Organizational Culture on Human Resource
Management Practices in Pakistan International Airline Corporation (PIAC)
Dear Sir/Madam My name is Aftab Ahmed Mangi, faculty, Department of Public Administration,
University of Sindh jamshoro. I am conducting a comprehensive survey on the Impact
of Organizational Culture on Human Resource Management Practices in Pakistan as a
part of my doctoral research work.
Your esteemed organization always has been encouraging research in Pakistan,
therefore you are invited to participate in this survey to promote research culture and
help me to get your views and experience of your organization through attached
questionnaire.
Please try to answer all questions in the survey. Though there is no personal
information required in this survey but I assure you that all information will be used
solely for academic purpose and kept confidential. If you have any query about this
survey please contact on below given email address: [email protected]
I am thankful for filling and submitting the questionnaire.
Best regards Aftab Ahmed Mangi, PhD Scholar University of Sindh Jamshoro, Cell: 03003039193
136
Appendix B: Formal request to the participants (NICL) of to fill the questionnaire Dear Sir/Madam Subject: Survey on the Impact of Organizational Culture on Human Resource
Management Practices in National Insurance Company Limited (NICL) My name is Aftab Ahmed Mangi, faculty, Department of Public Administration,
University of Sindh jamshoro. I am conducting a comprehensive survey on the Impact
of Organizational Culture on Human Resource Management Practices in Pakistan as a
part of my doctoral research work.
Your esteemed organization always has been encouraging research in Pakistan,
therefore you are invited to participate in this survey to promote research culture and
help me to get your views and experience of your organization through attached
questionnaire.
Please try to answer all questions in the survey. Though there is no personal
information required in this survey but I assure you that all information will be used
solely for academic purpose and kept confidential.
If you have any query about this survey please contact on below given email address:
I am thankful for filling and submitting the questionnaire.
Best regards Aftab Ahmed Mangi, PhD Scholar University of Sindh Jamshoro, Cell: 03003039193
137
Appendix C:
Questionnaire
Note: This survey Questionnaire is part of PhD research. The purpose of this survey
is to assess the impact of organizational culture on human resource management
practices in Pakistan: a comparative study of Pakistan international airline corporation
(PIAC) and national insurance company limited (NICL). The survey Questionnaire
consists of four parts. First part is about personal information of respondents. Second
part is related to respondents view about Socio-cultural Adaptation Scale. Third part
is related to respondent’s opinion about the HRM Practices. Fourth part is related to
respondent’s judgment about the Organizational Culture. Your participation in this
Questionnaire survey is voluntarily. The Information provided will be kept
confidential and used for only Academic /Research Purpose.
___________________________________________________________________
Personal Profile
Tick the appropriate one
ORGANIZATION
1- Gender
2- Age Group
25+ 35+ 45+ 55+
Male - Female
PIAC/NICL
138
3- Department 1 Marketing
2 Management
3 Technical
4 Ministerial
5 Supporting Staff 4- Qualification 1 Ph.D
2 Masters
3 Graduate
4 Intermediate
5 Matriculation 5- Mother tongue 1 Balochi
2 Pashto
3 Punjabi
4 Sindhi
5 Siraiki
6 Urdu
7 Any Other
139
Socio-cultural Adaptation Scale .
S.# Difficulty Level
No
dif
ficu
lty
Sli
ght
dif
ficu
lty
Mod
erat
e d
iffi
cult
y
Gre
at d
iffi
cult
y
Ext
rem
e D
iffi
cult
y
1. Understanding the organizational
value system
2. Dealing with people in authority
3. Understanding your organization’s
world view
4. Understanding cultural differences
5. Taking organizational perspective on
over all Pakistani culture
6. Being able to see two sides of an
intercultural issue
7. Dealing with people harassing you
8. Communicating with people of a
different ethnic group
9. Dealing with bureaucracy
10. Relating to members of the
opposite sex
11. Understanding the Impact of Pakistan’s
political system on your organization.
12. Dealing with someone who is
unpleasant.
140
HRM Practices PIA.
S# Agreement Level
Dis
agre
e
Som
ewh
at
Dis
agre
e
Som
ewh
at
Agr
ee
Agr
ee
I d
on’t
Kn
ow
1. Are you satisfied from your career development.
2. Are you satisfied from your salary that you are getting.
3. I prefer to ask for help from my boss for transfer or promotion rather than a stranger.
4. Do you prefer the proper job rotation 5. Do you accept the ACR as it comes
from your boss.
6. Are you satisfied from your organization in order to health facility provided to you
7. In times of security concern, I like to ask my boss in order to provide proper security.
8. Before I go on transfer, I like to know about the reasons.
9. Are you satisfied from your organization in order to accommodation facility provided to you
10. In most ways my job satisfaction is close to my career development
11. Are you satisfied from your organization in order to selection policy
12. Do you prefer the promotion policy based on performance rather than seniority.
141
Organizational Culture
This last section presents a number of situations and experiences. Please indicate how much difficulty you experience in your organization in each of these areas
S# Agreement Level
Dis
agre
e
Som
ewh
at
Dis
agre
e
Som
ewh
at
Agr
ee
Agr
ee
I d
on’t
K
now
1. Do you feel any change in your personality and behavior after joining this organization
2. I feel proud when people talk about positive things of my organization
3. Have you felt that after joining this organization your worth is increased and other competitators are asking you to join them
4. My organization is adopting aggressive policies in rewarding its efficient employees properly.
5. It is culture of my organization to find innovative personnel and believe in team work rather individual
6. My organization is always on top to adopt a sophisticated state-of-art atmosphere to give its employees
7. I have always a threat of losing my job at the time of recession or uncertainty in economy
8. I have no fear of change of organizations culture if I am transferred to a new city or country
9. My organization also get interest in my personal living standards and home affairs
10. I will not prefer only monitory benefits but want to stay in the organization because of its employees friendly and congenial atmosphere
11. There is much political interference in my organization and this has created lot of problems for the organization.
12. I have got my all promotions in time and my future is secure because the seniors are telling us successful organizational stories
Thanks for your co-operation please return this Questionnaire on the following address: AFTAB AHMED MANGI Research Scholar (PhD) Assistant Professor Department of Public Administration University of Sindh, Jamshoro. 76080 E-Mail:[email protected] , Cell: 0300-3039193