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org © 2021 IJCRT | Volume 9, Issue 5 May 2021 | ISSN: 2320-2882
Study on the Impact of Organizational Culture on

Employee Motivation in a Steel and Industrial
Forgings Company
Anoop Gurunathan A, NAAC Coordinator, PSM Dental College, Thrissur, Kerala, India.
Abstract
In this competitive world, every organization is striving hard for survival. In order to withstand the
competition, an organization needs to have a strong organizational culture and motivational programmes.
These factors directly reflect on the success, growth and performance level of the organization. This study
conducted at Steel and Industrial Forgings Company Limited, a Public Sector Enterprise, is aimed at
understanding the impact of organizational culture on employee motivation. Though several researches have
been conducted in this field, this study envisages to further discover the impact of various variables on
organizational culture and employee motivation. For data collection of the study, a detailed questionnaire
was prepared which covered various aspects of organization culture, motivation, interpersonal relationship,
leadership, promotion and incentive practices, and communication. The questionnaire was distributed
randomly among employees. The findings were systematically analyzed and conclusion was arrived at and
based on the finding’s suggestions were also made.
Keywords: organizational culture, employee motivation, leadership style, organizational climate
1.0 Introduction
1.1 Organizational Culture
A good organizational culture is a primary factor in determining the success and growth of the organization.
Organizational culture sets a framework for employee participation and involvement which in turn will lead
to positive motivation within the organization. In short, organization culture and employee motivation go
hand in hand and will surely enhance the productivity of the organization.
“Culture” in simple words means the attitude, traits and behavioral pattern which govern the way an
individual interacts with others. Culture distinguishes one individual from another. Similarly, organizational
culture refers to the beliefs and principles of a particular organization. Organizational culture differs, from
one organization to another based-on leadership, employee motivation, management, etc. The organizational
culture influences the attitudes at the workplace (David Towers, 2006).
A strong and supportive organizational culture needs to be developed and inculcated in order to make
employees open-up, to be fair and honest. It will also reduce work related stress and increase the level of
employees’ performance. Employees must be involved in the organization’s decision-making process which
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in turn leads to a sense of belonging among the employees. Good organizational culture can improve team
work and high participation among the employees. Employee motivation preempts a congenial work
atmosphere that meets their basic emotional aspirations to obtain, promise, understand, and secure. (Elisante
Yona, 2004).
1.2 Employee Motivation
Motivation is the desire within a person causing to act and achieve. Motivation in employee’s point of view is
a driving force which acts as a catalyst to achieve a desired goal. It is never possible for any organization to
achieve the desired result without the involvement of motivated employees. Employee motivation is critical
in order to get the optimum outcome from the employees for achieving organizational goals.
Motivation has multiple effects on employees, this may be seen in an individual’s physical and mental health,
productivity, absenteeism and turnover. Motivated employees are always a great asset for any organization.
Measuring the motivation level of employees is always important for an organization. Based on level
motivation of employees, the organization can understand what motivates the employees the most and how
they can be involved in the activities of the organization. The needs and motivation level of employees
should become the primary focus of managers. The factors which influence the level of employee motivation
differ from person to person. It may be monetary benefits, like pay package and benefits, promotion system
within the organization, job security, and career development opportunities. It can also be based on leadership
and social relationship, quality of work life, employee recognition, etc. The management must have an
employee-oriented approach to achieve the desired goal. (Shabir Ahmad Wani, 2011).
1.3 Organizational Culture and Employee Motivation
Organizational Culture has a direct link to motivation and employee performance. A good
organizational culture has a positive impact and a weak organizational culture has an adverse impact on
employee motivation and performance.
For the continuous success and development of the organization, management must evaluate organization
culture and must make time to time modifications in the approach. The monetary benefit won’t solely motivate
the employees. The organization culture and the way organization are run also have a huge impact. A good
organization culture reflects in their employee motivating factors as well.
Organization culture plays a pivotal role in developing and maintaining the motivation level of employees. An
employee’s full potential only comes out when his/her individual motivation matches the organizational
culture. (Robbins, 2006).
2.0 Literature Review

Several studies have already been conducted by various researchers in the field of organizational culture,
motivation and impact of organizational culture on employee motivation.
2.1 Organizational Culture
Ravasi and Schultz (2006) states that organizational culture is a set of mental assumptions which guide the
employees and the organization to take action and behave appropriately for various situations. Organizational
culture has an effect on the entire organization and is like the powerful undercurrent of ocean tides and the
hidden icebergs which can destroy a ship (Chitra, 2005). The important dimensions of culture are leadership,
and the corporate culture plays a significant role in performance growth and success (Schein, 2004, 2009).
Communication and inter-personal relationship are important variables for organizational culture (Wilson et al,
2001).

Organizational Culture is directly proportional to the performance of the organization. The managers and
employees do not behave in a value free vacuum; they are governed, directed and tempered by organization’s
culture (Robbins, 2006). According to Richard (2007), culture is a significant component of the internal
surroundings of an organization. Organizational culture is reflected in the way people perform tasks, set
objectives and administer the necessary resources to achieve objectives (Harvard Business School Study,
2011).
Chaubey et al., (2012) mentioned that, good organizational culture needs to be promoted in the organization to
enhance the employee productivity and to improve the organizational performance. A bad organizational
culture can decrease the ability of employees and interrupt the growth and success of the organization (Exter,
2013). Organizational culture has an impact on decision making and level of authority, it also guides the
workers attitude and behavior in the work place (Hofstede 2011). The top management must play a vital role in
applying good organizational culture according to the changing times and it is the key to an organization’s
excellence (Ng and Kee, 2013).
Organizational culture also has a role to play in the recruitment and retention of the employees. An unhealthy
work environment and bad organizational culture are signs of a deteriorating company (Adkins and Caldwell,
2004). Organizational culture is established from the starting of the organization and develops over the time. It
is one of the most challenging factors which has far reaching impact on the organization as a whole (Behery
and Paton, 2019).
2.2 Employee Motivation
Lots of studies and theories have already been documented and proposed by eminent thinkers in the field on
employee motivation. Some of the important theories include Maslow’s hierarchy needs and Herzberg’s two
factor theory (Maslow, A.H; 1943, Herzberg, F.B; 1966)
Abraham Maslow’s Hierarchy needs theory discussed 5 levels of employee needs: physiological, safety and
security, social, esteem and self – actualization. This theory proposed that people have many needs which
motivate them to work. These needs are arranged in hierarchical manner; Physiological and safety needs are
described as lower order. Social, esteem and self-actualization are classified as higher order needs. Higher
order needs are satisfied internally, whereas, lower order needs are predominantly satisfied externally
(Maslow, 1943).
Frederick Herzberg developed Two Factor Theory also called as motivation – hygiene theory. It’s a two –
dimensional paradigm of factors affecting employee’s attitude towards work. Motivators are intrinsic factors
such as advancement, recognition, responsibility and achievement. The presence of these factors ensures job
satisfaction. Hygiene factors are extrinsic factors such as company policy, supervision, interpersonal relations,
working conditions and salary. The absence of hygiene factors may create job dissatisfaction. Motivators are
mainly related to the person’s relationship with the task being performed. Hygiene factors have to do with a
person’s relationship to the environment where he performs the job. (Herzberg, 1966)
The managers may not be able to motivate employees, rather they can influence the employees to get
motivated to perform (Bruce and Pepitone, 1999). Every company must have at least one policy of non-
financial rewards, especially employee recognition. This policy would result in an increase in employee’s
productivity (Bawa, 2017). Employee motivation is directly related with monetary benefits, working
environment, recognition in the organization. The employee must have a feeling of belongingness towards the
organization (Evan et al, 2019). The belief in the organization influences the level of employee motivation.
Employee’s belief will make the employee committed to the work and the organization and for imbibing this
belief the managers must try to motivate their subordinates (Nelson and Quick, 2007).

Offering employees an opportunity to raise their concerns and points regarding their job, feeling of
engagement and appreciation can boost the employee morale (Shields, 2007). The motivation levels in
workplace differs from person to person, this individual difference becomes a major obstruction for
management in engaging in employee motivation in an effective manner. Non- monetary reward is essential in
developing job satisfaction and motivation among employees. Employee recognition is a most pivotal factor
among non- financial rewards which enhances job satisfaction and productivity (Tausif and Haider, 2012).
Constructive arguments and dialogues can increase the involvement of employee thus paving way for
employee motivation (Kreitner, 2012). Intangible motivational tools such as celebrations of birthdays and
work-life balance can impact the level of employee motivation among modern employees (Cassidy, 2012)
Imparting training and development programs that contributes to personal and professional growth of
employee can be an effective employee motivation strategy (Lockley, 2012). Job rotating, job sharing and
flexible working pattern can be effective motivational tools (Llopis, 2012). Pay, performance bonus,
recognition, praise in public, supportive statements can significantly improve the employee’s morale
(Sajuyigbe et al., 2013). Vrancic (2015) proposed three non – financial motivators like praise from immediate
manager, attention like one-on-one conversations and chance to lead a project or task force can be more
effective motivators than the financial motivators like cash bonus, increased base pay and stock option. Bawa
(2017) concluded that there is a need to motivate workers to increase their productivity. There are financial and
non- financial methods to motivate workers. Non- financial methods always have an upper- hand over financial
methods.
2.3 Impact of Organizational Culture on Employee Motivation
The important variables which have influence on employee motivation and organizational culture are:
a. Performance
b. Leadership and Leadership Styles
c. Communication
d. Interpersonal Relationship
e. Organizational Climate
Hofstede (2011) emphasized that workplace having strong organizational culture has good promotion policies,
good relation with peers and subordinates, recognition in work which create high level of motivation among
the work force. He concluded that there is an impact of organizational culture on employee motivation.
Long term financial performance of the organization is very much linked with organizational culture and
employee motivation. Leadership and style also have influence on organizational culture and employee
motivation (Denison, 2006). Organizational culture plays a pivotal role in creating an environment where the
level of motivation is high and employee are committed to give their best for achieving organizational goal
(Armstrong, 2007). Nohria et al., (2008) stated that due to the uniqueness in behavior and needs of employees,
the management finds it difficult to identify a unique solution for employee motivation. So, strong
organizational culture is required and will have influence on employee motivation which will be reflected in
organizational behavior as well.
Motivation is an important element in organizational culture which is responsible for better performance of
employees (Jurkiewicz et al., 1998). Harvard Business School (2011) stated that organization with strong
culture and motivational aspects will be reflected in the employee behavior, job satisfaction, creativity, quality
of work life, performance and growth of the organization. Two primary components of organizational culture
are the primary value of the organization and existing management style and systems. These components have
an impact on the employee morale. In short, organizational culture has an impact on employee motivation and
can determine the employee performance as well (Mariya et al., 2015).

A strong organizational culture which satisfies and identifies employee’s efforts can lead to an increase in
motivation levels (Sokro, 2012). A good organizational culture motivates individual and it affects
organizational performance overall. A weak organizational culture will affect the morale of the employees and
will adversely affect the performance level (Maria et al., 2015). The impact of organizational culture on
employee motivation must be given due importance (Leithy, 2017, Varma, 2017). Nikpour (2017) stated that
the level of employee motivation and commitment to organization culture has both direct and indirect influence
on the organizational performance. Gaurav et al., (2018) in Deloitte Insights stated that organizational culture
and leadership behavior influence the motivation level of employees. Good organizational culture and
leadership will boost the performance of the employees.
3.0 Research Methodology

The study is intended to understand the impact of organizational culture on employee motivation in the
organization. A strong organizational culture and good motivational programs are essential to achieve the goal
of the organization. There is a close link between organizational culture and employee motivation.
3.1 Research Design:
The research method used for the study is descriptive research, because it is the description of a situation as it
exists at present. We can only report what has happened or what is happening at present.
3.2 Data Collection:
Primary Data:
Primary Data is first-hand information, which has not been previously published. The primary data is collected
by using questionnaire, observation method and personal interview method.
Secondary Data:
Secondary Data is the data that has already been collected by someone and is available readily. The secondary
data is collected from the company’s website, magazines, brochures, books and journals.
3.3 Sample Size and Sampling Technique

The total population/universe comprises of 300 employees working in Steel Industrial Forgings Limited,
Thrissur, Kerala, consisting of office staff, executives and workmen in the company. The number of items to
be selected from the universe is called sample size. The sample should neither be too large or too small. The
sample size of this study is 100.
Random Sampling Technique is used in this study. Random sampling ensures the law of statistical regularity.
The sample will have the same composition and characteristics as the universe.
3.4 Tools used for Analysis
The data collected where formulated in tabular form. The statistical techniques used are percentage method,
weighted average and chi-square test.
4.0 Limitations of the Study

i. The employees did not have enough time to go through all questions properly, as they couldn’t find
enough time between the work hours.
ii. Most of the lower-level employees were not readily willing to answer the questions.
iii. The employees were very critical with their responses and selected “Neutral” option to make them safe.

5.0 Data Analysis and Interpretation
A detailed questionnaire was prepared and was distributed among the employees. Their responses were
obtained, studied in detail and critically analyzed.
The questionnaire was distributed among both male and female (80: 20) employees, across different age
groups (20 – 60 yrs.), among different job levels (Lower, Middle and Management Level). The questionnaire
was distributed to different departments (HRD, Finance, R&D, Production, Marketing, etc.).
From the response to the questionnaire, we understood that 45% of employee working in the organization has
1- 5 years’ experience and 32% employees 15 years and more. So, we can understand that, the employee
retention is good in the organization. 68% of the employees were permanent.
Various factors like;
i. Aspects of organizational culture in the organization

ii. Interpersonal relationship in the organization
iii. Aspects of upward and downward communication system in the organization
iv. Prevailing organizational culture in the company
v. Factors which motivate employee the most
vi. Qualities of a motivational leader in the organization
vii. Factors affecting organizational culture and motivation.
Question 1:
Importance of Organizational Culture as perceived by employees
The importance of organizational as perceived by employee is found to be very important and the data
obtained is depicted in Figure 1.
Figure 1: Importance of organization culture
Question 2:
Organizational Culture has significant influence over motivation and performance. The data obtained are
presented in Figure 2.

Figure 2. Influence Organizational culture on employee motivation and performance
Question 3:
Employee motivation affects the overall efficiency of organization. The data obtained are presented in Figure
3.
Figure 3. Effect of employee motivation on efficiency of organization
Question 4:
Motivation determines the potential employee performance. The data obtained are presented in Figure 4.

Figure 4. Effect of employee motivation on performance
Chi – Square test
1. Relationship between innovative and approachable leaders and their ability to motivate others and self-
motivate.
H0: Innovative and approachable leaders have no ability to motivate others and self-motivate
H1: Innovative and approachable leaders have ability to motivate others and self-motivate.
Responses obtained from the employees on the relationship between innovative and approachable leaders and
their ability to motivate others and self-motivate are presented in Table 1a, and the expected responses are
presented in Table 1b.
Table 1a. Observed value of response of employees on innovative and approachable leaders and their ability to
motivate others and self-motivate.
Strongly Strongly
Agree Agree Neutral Disagree Disagree Total
Innovative &
Approachable
Leadership 32 28 35 5 0 100
Ability to
Motivate
Others & Self
Motivate 26 41 22 7 4 100
Total 58 69 57 12 4 200

Table 1b. Expected value of response of employees on innovative and approachable leaders and their ability
to motivate others and self-motivate.
Strongly Strongly
Innovative &
Approachable
Leadership 29 34.5 28.5 6 2 100
Ability to
Motivate Others
& Self Motivate 29 34.5 28.5 6 2 100
Total 58 69 57 12 4 200
From Calculated Chi-Square Value,

0.034661595 is the p value
If p - value > 0.05, Null Hypothesis accepted
If p-value<0.05, Null Hypothesis rejected
Inference: Since p-value<0.05., we fail to accept null hypothesis. Hence, innovative and approachable leaders
have ability to motivate others and self-motivate.
2. Relationship between prevailing culture of hassle free 2-way communication and the company’s
motivation principle of recognizing and acknowledging the work of the employees. The observations are
presented in Table 2a, 2b and 2c.
H0: The prevailing hassle free 2-way communication in the organization has no relationship with the
company's motivation principle of recognizing and acknowledging the work of employees.
H1: The prevailing hassle free 2-way communication in the organization has relationship with the company's
motivation principle of recognizing and acknowledging the work of employees.
Response of employees observed on prevailing hassle free 2-way communication in the organization with the
company's motivation principle of recognizing and acknowledging the work of employees is presented in
Table 2a and the expected responses are presented in Table 2b.
Table 2a. Observed value of response of employees on prevailing hassle free 2-way communication in the
organization has no relationship with the company's motivation principle of recognizing and acknowledging
the work of employees.
Strongly Strongly
Prevailing
Hassle-Free
Two-Way
Communication 27 22 43 6 2 100
Company's
Motivational
Principle of
Recognizing &
Acknowledging
through work
of employees 34 37 22 4 3 100
Total 61 59 65 10 5 200

Table 2b. Expected value of response of employees on prevailing hassle free 2-way communication in the
organization has no relationship with the company's motivation principle of recognizing and acknowledging
the work of employees.
Strongly Strongly
Prevailing
Hassle-Free
Two-Way
Communication 30.5 29.5 32.5 5 2.5 100
Company's
Motivational
Principle of
Recognizing &
Acknowledging
through work
of employees 30.5 29.5 32.5 5 2.5 100
Total 61 59 65 10 5 200
From the calculated Chi-Square Value

0.017340461 is the p value
If p - value > 0.05, Null hypothesis accepted
If p-value<0.05, Null Hypothesis rejected.
Inference:
Here, p-value<0.05. We fail to accept null hypothesis. Hence, the prevailing hassle free 2-way communication
in the organization has positive relationship with the company's motivation principle of recognizing and
acknowledging the work of employees.
5.0 Findings & Suggestions

5.1 Findings:
1. From the responses obtained from employees, we can understand that the work environment is
pleasant and reflects in the organizational culture.
2. Good interpersonal relationship exists in the organization, suggestions and grievances of the
employees are taken upwards and genuine effort is taken to solve it.
3. By using weighted average method, we understand that good working environment and
organizational culture is essential to achieve organizational goals.
4. Majority of the employees agree that employee motivation affects the overall efficiency and agree
with the statement that motivation determines the employee performance.
5. From data analysis it is concluded that, there exist a leadership in the organization and a good
relationship among coworkers who motivate others and also self-motivate.
6. From the study we can understand that organization culture has significant influence over both
employee motivation and performance.

5.2 Suggestions
1. The organization needs to be less bureaucratic and more flexible and there is room for improvement
in the way directions are given by top management down the line in solving work related problems.
2. There is a need for salary revision, provide more rewards, incentives and bonuses based on their
performance to motivate the employees.
3. Importance must be given in implementing more employee motivational programs as employee
motivation influences overall performance of the organization.
4. The organization needs a charismatic leader and an effective leadership style.
6.0 Conclusion
Every business organization must concentrate on organizational culture and motivation. In the fast-changing
business environment, an organization needs to concentrate on developing a strong organizational culture and
motivational aspects. For the overall improvement in the performance of employees and organization, strong
organizational culture and motivational factors are essential. Good leadership style and management also play
a pivotal role in developing a conducive work environment and effective organizational culture. A strong
organizational culture can motivate the employees in the organization and can attain greater heights in terms of
performance.
Acknowledgements
The author acknowledges the support and co-operation rendered by the management and staff
of Steel Industrial Forgings Limited, Thrissur, Kerala .
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org © 2021 IJCRT | Volume 9, Issue 5 May 2021 | ISSN: 2320-2882

Study on the Impact of Organizational Culture on

Keywords: organizational culture, employee motivation, leadership style, organizational climate

1.2 Employee Motivation

1.3 Organizational Culture and Employee Motivation

2.0 Literature Review

2.1 Organizational Culture

IJCRT21A6098 Electronic copy

2.2 Employee Motivation

IJCRT21A6098 Electronic copy

2.3 Impact of Organizational Culture on Employee Motivation

IJCRT21A6098 Electronic copy

3.0 Research Methodology

3.1 Research Design:

3.2 Data Collection:

3.3 Sample Size and Sampling Technique

3.4 Tools used for Analysis

4.0 Limitations of the Study

IJCRT21A6098 Electronic copy

Various factors like;

i. Aspects of organizational culture in the organization

Figure 1: Importance of organization culture

IJCRT21A6098 Electronic copy

Figure 2. Influence Organizational culture on employee motivation and performance

Figure 3. Effect of employee motivation on efficiency of organization

IJCRT21A6098 Electronic copy

Figure 4. Effect of employee motivation on performance

Chi – Square test

IJCRT21A6098 Electronic copy

From Calculated Chi-Square Value,

IJCRT21A6098 Electronic copy

From the calculated Chi-Square Value

5.0 Findings & Suggestions

IJCRT21A6098 Electronic copy

IJCRT21A6098 Electronic copy

IJCRT21A6098 Electronic copy

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