“INFLUENCE OF ORGANISATIONAL CULTURE IN

EMPLOYEE JOB SATISFACTION WITH

REFERNCE TO HOCL, KOCHI”

PROJECT REPORT
Submitted to Mahatma Gandhi University in partial fulfillment
of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by

Ms. ANSU A TITUS

Reg. No. 190031000623

Under the guidance of

Prof. Jerly Akku Cherian

Faculty Guide

Accredited by NAAC with ‘A’ Grade

DEPARTMENT OF MANAGEMENT
STUDIES
MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES
TIRUVALLA
2021
 MAR ATHANASIOS COLLEGE
FOR ADVANCED STUDIES
TIRUVALLA
Ph: 0469 2730323 Fax: 0469 2730317 macfast@macfast.org
www.macfast.org

CERTIFICATE

This is to certify that the project report entitled “INFLUENCE OF ORANISATIONAL

CULTURE IN EMPLOYEE JOB SATISFACTION WITH REFERENCE TO HOCL,
KOCHI” is a bonafide report of the project work undertaken by Ms. Ansu A Titus, fourth
semester MBA student of our college during a period of 8 weeks commencing from 1 st
April to 30th May,2021.

Prof. Jerly Akku Cherian Dr. Sudeep B. Chandramana

Faculty Guide Head, Dept. of management
Studies

Rev. Dr. Cherian J. Kottayil University Examiner

Principal
 DECLARATION

I hereby declare that this project report entitled “ INFLUENCE OF

ORGANISATIONAL CLIMATE IN EMPLOYEE JOB SATISFACTION”is
a
bonafide report of the study undertaken by me, under the guidance of Mrs. Jerly Akku
Cherian ,Department of Management Studies, MACFAST, Tiruvalla.

I also declare that this project report has not been submitted to any other University or
Institute for the award of any degree or diploma.

Place : Tiruvalla

Date :31.05.2021 ANSU A TITUS

 ACKNOWLEDGEMENTS

The study will not be complete without acknowledging my sincere gratitude to all persons
who have helped me in the preparation of this report.

First of all I would like to Thank my company guide Mr. Sooraj, for providing me and
helping me to gather information for my project.

Let me express my immense gratitude to my principal Rev. Dr. Dr. CHERIAN J

KOTTAYIL, Macfast College, Thiruvalla for providing me the opportunity to undertake
this project. I would also thank Dr. Sudeep B Chandramana (HOD, Department of
Management Studies). I record my heartful thanks to my faculty guide Mrs. Jerly Akku
Cherian, for her valuable guidance and worthy experience. Let me also thank all the faculty
members of the department for their help in the successful completion of my project.
Atlast I would like to thank the Almighty for giving the strength and presence of mind to
complete the work successfully.

IV
 LIST OF TABLES

Page no.
Fig Title
no.
5.1 Gender wise classification of respondents 64

5.2 Age of respondents 65

5.3 Education of Respondents 66

5.4 Total years of work experience of respondents 67

5.5 Perception of employees towards organisational culture 68

5.6 Job satisfaction level among the employees 68

5.7 Correlation between organisational culture and job satisfaction 69

5.8 Difference in job satisfaction based on age 70

5.9 Difference in job satisfaction on education 70

5.10 Difference in job satisfaction based on work experience 71

5.11 Difference in organisational culture based on age 71

5.12 Difference in organisational culture based on education 72

5.13 Difference in organisational culture based on work experience 73

V
 LIST OF FIGURES

Fig no Title Page no.

3.1 Handy’s classification of organizational culture 47

3.2 Job satisfaction Factors 50

3.3 Maslow’s Need Hierarchy Theory 51

3.4 Herzberg’s Motivator Hygiene Theory 52

5.1 Gender wise classification of s 64

5.2 Age of respondents 65

5.3 Education of Respondents 66

5.4 Total years of work experience of respondents 67

VI
 ABBREVIATIONS

ANOVA: ANALYSIS OF VARIANCE

API : AMERICAN PETROLEUM INDUSTRY
CAGR : COMPOUND ANNUAL GROWTH RATE
CMA : CHEMICAL MANUFACTURES
ASSOCIATION CPS : CHEMICAL PROCESS
SAFETY
CSIR : COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH
DME : DI- METHYL ETHER
DMT : DI- METHYL TEREPHTHALETE
FY : FINANCIAL YEAR
GDP : GROSS DOMESTIC PRODUCT
HAZOP : HAZARD AND OPERABILITY ANALYSIS
HOCL : HINDUSTAN ORGANIC CHEMICAL
LIMITED ICC : INDIAN CHEMICAL
IT : INFORMATION TECHNOLOGY
NAICS : NORTH AMAERICAN INDUSRTY CLASSIFICATION SYSTEM
PPIC : PRODUCTION PLANNING AND INVENTORY CONTROL
PTA : PURIFIED TEREPHTHALIC ACID
QC : QUALITY CONTROL
ROI : RETURN ON INVESTMENT
SOP : STANDARD OPERATING PROCEDURE
TAME : TERTIARY ANYL METHYL ETHER

VII
 CONTENTS
Page No.

ACKNOWLEDGEMENT (iv)

LIST OF TABLES (v)

LIST OF FIGURES (vi)

ABBREVIATIONS (vii)

Sl. No Title Page no.

01. Introduction 1
1.1. Background of the Study 2
1.2 Statement of the 3
3
1.3 Problem
3
1.4 Relevance & Scope of the Study
Objectives of the Study
4
02 Industry Profile
2.1 Business Process of the Industry 5-27

2.2 Market Demand & Supply – Contribution to GDP – 27-28

Revenue Generation
2.3 Type of Competition – Firms Operating in the Industry 29-30
2.4 Pricing Strategies in the Industry 30-34
2.5 Prospects and Challenges of the Industry 34-40
2.6 Key Drivers of the Industry 40-43

VII
 03. Review of Literature 44
3.1 Brief Theoretical Construct related to the Problem 45-52
3.2 An Overview of Earlier Studies 52-56
3.3 Uniqueness of Research Study 56

04. Methodology of the Study 57

4.1 Research Approach and design 58
4.2 Sources of Online Data 58-59
4.3 Sampling Design 60
Data Analysis Tools 60-61
4.4
Report Structure 61-62
4.5
4.6 Limitations of the Study 62

05 Data Analysis, Interpretation & Inference

63-73

06 Findings of the Study 74-76

07 Conclusions 77-78

Bibliography 79
Annexures 80-83

IX
 CHAPTER - 1
INTRODUCTION- STATEMENT OF
PROBLEM

1
 BACKGROUND OF THE STUDY

Every organization is struggling to remain sustainable and competitive. To implement this aspect, strategic
planners and human resource professionals collaborate more intensively in designing strategies that are
productive and humane. Marquand pointed out that the organizations aiming at maximum productivity and
quality have encountered so many challenges. However, the situations were changed and challenges are
identified as the opportunities to grow. Human resource is the most significant and precious asset of any
organization, which is essential for healthy operation of all other resources of the organisation. So, when
human resource is satisfied in terms of their jobs, then only productivity level goes up.
A satisfied, happy and hardworking employee is biggest asset of any organisation. Effective results &
productivity for any organisation is depend on the level of satisfaction of employees and organisational
culture is one of the most important factor which influence the job satisfaction. Efficient human resource
management and maintain good organisational environment or culture effects not only the performance of
employee & organisation but also affects the growth & development of entire economy.Organisation
culture can affect the degree of employees learning activities, level of satisfaction and motivation. An
environment which provides a supportive culture can enable employees to utilize their new knowledge
which may enhances the performance of organisation. Organisational culture involves all the aspects which
act and react on the body and mind of an employee. The Organisational culture can implicate the social
relation at workplace and also maintain the relationship between colleague, supervisor and the organization.
It describes the neighbouring circumstances in which employees are working together. Job satisfaction has
become the pillar on which performance of employees is hinged. The most important goal among others of
an organization is to exhaust the possibilities of getting the best employee performance in order to
accomplish set objectives.
In order to cope with the ever changing and evolving environment and to achieve success and remain in
competition, a business has to satisfy its employees. Many findings has revealed that organisation culture
values such as fairness, growth opportunities and reputation of organisation have a positive effect on the job
satisfaction, whereas organisational traits like aggressiveness have a negative influence on job satisfaction.
Hence the businesses need to realize the importance of organisational culture for maximizing the level of
job satisfaction. This study is aimed to understand the job satisfaction level of employees with respect to
organisational culture.

2
 STATEMENT OF THE PROBLEM

This study aims at the “INFLUENCE OF ORGANISATIONAL CULTURE ON EMPLOYEE JOB

SATISFACTION, WITH REFERENCE TO HOCL, KOCHI. Organisational culture involves all the
aspects which act and react on the body and mind of an employee. The Organisational culture can implicate
the social relation at workplace and also maintain the relationship between colleague, supervisor and the
organization. It is the need of HR department to maintain a better organisational culture and satisfy the
needs of employees. Thus there is a more need to do research on employee satisfaction.
In HOCL, productivity is a vital component in the organization and its people are the effective means of
improving productivity. HOCL is facing several challenges due to dynamic nature of business. One of the
main challenges is to satisfy the employees. Hence it is necessary to conduct a study on how organisational
culture leads to job satisfaction of employees and . Thus the study investigates the relationship between the
dimensions of organizational culture and employee motivation.

RELEVANCE AND SCOPE OF THE STUDY

The organizational structure strongly influences the organizational culture.Organisational culture promotes
a positive, structured work environment that helps companies achieve success. The organizational climate
or culture is a reflection of the degree of employee satisfaction. It has positive and negative effects on
people's behavior in the workplace. Employee satisfaction plays a significant role in the organization. All
organization facilities will become unproductive in the absence of satisfied employees.This study helps to
find out the overall feeling of the employees of HOCL towards their job and whether the company values
are linked with employee values. This study shows the job satisfaction in relation to organisational culture.
This study also helps to analyse the existing organisational culture and provide suggestions where the
company needs to improve.

OBJECTIVES OF THE STUDY

 To study about the influence of organizational culture on employee motivation at HOCL, KOCHI.
 To study the organization culture at HOCL, KOCHI.
 To identify the level of motivation of employee.
 To analyze the relationship between organization culture and motivation

3
 CHAPTER - 2
INDUSTRY
PROFILE

4
 BUSINESS PROCESS OF INDUSTRY

 Chemical Industry

HINDUSTAN ORGANIC CHEMICAL LIMITED comes under Chemical Industry. The chemical industry
is one of the oldest industries in India, contributing significantly to both industrial and economical growth
of the country since it achieved Independence in 1947.

The chemical industry comprises the companies that produce industrial chemicals. Central to the modern
world economy, it converts raw materials ( oil, natural gas, air, water, metals and minerals) into more than
70,000 different products. The business of the chemical industry is to change the chemical structure of
natural materials in order to derive products of value to other industries or in daily life. Chemicals are
produced from these raw materials-principally minerals, metals and hydrocarbons-in a series of processing
steps. Further treatment, such as mixing and blending, is often required to convert them into end-products
(e.g., paints, adhesives, medicines and cosmetics). Thus the chemical industry covers a much wider field
than what is usually called “chemicals” since it also includes such products as artificial fibres, resins, soaps,
paints, photographic films and more.

Chemicals fall into two main classes: organic and inorganic. Organic chemicals have a basic structure of
carbon atoms, combined with hydrogen and other elements. Oil and gas are today the source of 90% of
world organic chemical production, having largely replaced coal and vegetable and animal matter, the
earlier raw materials. Inorganic chemicals are derived chiefly from mineral sources. Examples are sulphur,
which is mined as such or extracted from ores, and chlorine, which is made from common salt.

The products of the chemical industry can be broadly divided into three groups, which correspond to the
principal steps in manufacture: base chemicals (organic and inorganic) are normally manufactured on a
large scale and are normally converted to other chemicals; intermediates are derived from base chemicals.
Most intermediates require further processing in the chemical industry, but some, such as solvents, are used
as they are; finished chemical products are made by further chemical processing. Some of these (drugs,
cosmetics, soaps) are consumed as such; others, such as fibres, plastics, dyes and pigments, are processed
still further.

The main sectors of the chemical industry are as follows:

1. basic inorganics: acids, alkalis and salts, mainly used elsewhere in industry and industrial gases, such
as oxygen, nitrogen and acetylene

5
2. basic organics: feedstocks for plastics, resins, synthetic rubbers, and synthetic fibres; solvents and
detergent raw materials; dyestuffs and pigments

3. fertilizers and pesticides (including herbicides, fungicides and insecticides)

4. plastics, resins, synthetic rubbers, cellulosic and synthetic fibres

5. pharmaceuticals (drugs and medicines)

6. paints, varnishes and lacquers

7. soaps, detergents, cleaning preparations, perfumes, cosmetics and other toiletries

8. miscellaneous chemicals, such as polishes, explosives, adhesives, inks, photographic film and
chemicals.

Industry and labour process safety involvement

The chemical industry has grown much more rapidly in the half century than industry as a whole. Although
there was an economic depression in the world’s chemical industry in the early 1990s, chemical production
increased in the mid-1990s. The biggest area of growth of chemical production has been in Southeast Asia
Much of the chemical industry is highly capital-intensive and is also strongly dependent on research and
development (e.g., pharmaceuticals). The combined result of these two factors is that the industry employs
an abnormally low number of unskilled manual workers for its size, in comparison with manufacturing
industry in general. Total employment in the industry rose slightly during the period of rapid growth prior
to 1970, but since then the drive for increased productivity has resulted in a decline in employment in the
chemical industry in most developed countries.

Process safety technology has played an important role in the chemical processing industries so that
handling flammable and combustible liquids and gases could proceed without undesirable consequences.
During the 1980s, the oil and gas industries, for example, recognized that process safety technology alone,
without process safety management, would not prevent catastrophic incidents. With this in mind, a number
of industry associations, such as, in the United States, the Center for Chemical Process Safety (CCPS), the
American Petroleum Institute (API) and the Chemical Manufacturers’ Association (CMA), initiated
programmes to develop and provide process safety management guidelines for use by their members. As
stated by the CCPS, “The evolution of process safety from a purely technical issue to one that demanded
management approaches was essential to continued process safety improvement”.

6
The CCPS was formed in 1985 to promote the improvement of process safety management techniques
among those who store, handle, process and use hazardous chemicals and materials. In 1988, the Chemical
Manufacturer’s Association (CMA) initiated its Responsible Care programme outlining each member
company’s commitment to environmental, health and safety responsibility in managing chemicals.

In 1990, the API initiated an industry-wide programme entitled, STEP-Strategies for Today’s
Environmental Partnership, with the intention of improving the oil and gas industry’s environmental, health
and safety performance. One of the seven strategic elements of the STEP programme covers petroleum
operating and process safety. The following documents are examples of some of the materials developed as
a result of the STEP programme which provide guidance to the oil and gas industry to help prevent the
occurrence or minimize the consequences of catastrophic releases of flammable liquids and vapours or
hazardous process materials:

 Management of Process Hazards (RP 750)

RP 750 covers the management of hydrocarbon process hazards in design, construction, start-up, operations,
inspection, maintenance and facility modifications. It applies specifically to refineries, petro-chemical
plants and major processing facilities that use, produce, process or store flammable liquids and toxic
processing chemicals in quantities above certain hazardous amounts (as defined therein).

 Management of Hazards Associated with Location of Process Plant Buildings (RP 752)

RP 752, co-developed by API and CMA, is intended to help identify process plant buildings of concern,
understand the potential hazards related to their location within the process facility and manage the risk
of fire, explosion and toxic releases.

 Management Practices, Self-assessment Process, and Resource Materials (RP 9000)

RP 9000 provides resource materials and self assessment methodology to measure progress in
implementing process safety management elements.

Whenever there are processes that use temperature and pressure to change the molecular structure or create
new products from chemicals, the possibility exists for fires, explosions or releases of flammable or toxic
liquids, vapours, gases or process chemicals. The control of these undesired events requires a special
science called process safety management. The terms process safety and process safety management are
most commonly used to describe the protection of employees, the public and the environment from the
consequences of undesirable major incidents involving flammable liquids and highly hazardous materials.
According to the United States Chemical Manufacturers’ Association (CMA), “process safety is the control

7
of hazards which are caused by maloperation or malfunction of the processes used to convert raw materials
into finished products, which may lead to the unplanned release of hazardous material” (CMA 1985).

The process design and technology, changes in the process, materials and changes in materials, operations
and maintenance practices and procedures, training, emergency preparedness and other elements affecting
the process must all be considered in the systematic identification and evaluation of hazards so as to
determine whether or not they have the potential to lead to a catastrophe in the workplace and surrounding
community

Beginning in the early 1980s, a number of serious major incidents occurred in the petroleum and chemical
industries involving highly hazardous materials, which resulted in considerable numbers of fatalities and
injuries and significant property losses. These incidents provided the impetus for government agencies,
labour organizations and industry associations throughout the world to develop and implement codes,
regulations, procedures and safe work practices directed toward the elimination or mitigation of these
undesirable events, through the application of the principles of process safety management.

In response to public concern over the potential hazards of chemicals, governments and regulatory agencies
throughout the world initiated programmes which required manufacturers and users to identify hazardous
materials in the workplace and inform employees and consumers of the hazards presented by their
manufacture, use, storage and handling. These programmes, which covered emergency preparedness and
response, hazard recognition, product knowledge, control of hazardous chemicals and reporting of toxic
releases, included hydrocarbon processing. Process Safety Management Requirements

Process safety management is an integral part of the overall chemical processing facility safety programme.
An effective process safety management programme requires the leadership, support and involvement of
top management, facility management, supervisors, employees, contractors and contractor employees.

Components to be considered when developing a process safety management programme include:

· Interdependent continuity of operations, systems and organization

· Management of information. The process safety management programme relies upon providing
availability and access to good records and documentation.

· Control of process quality, deviations and exceptions and alternate methods

· Management and supervisory accessibility and communications. Because process safety management is
the basis for all safety efforts within the facility, managerial, supervisory and employee responsibility and

8
accountability should be clearly delineated, communicated and understood in order for the programme to
work.

· Goals and objectives, compliance audits and performance measurement. Prior to implementation, it is
important to establish both long-term and short-term goals and objectives for each of the elements of the
process safety management programme.

 Elements of the Process Safety Management Programme

All chemical facility process safety management programmes cover the same basic requirements, although
the number of programme elements may vary depending on the criteria used. Regardless which government,
company or association source document is used as a guide, there are a number of basic requirements which
should be included in every chemical process safety management programme:

· process safety information

· employee involvement

· process hazard analysis

· management of change

· operating procedures

· safe work practices and permits

· employee information and training

· contractor personnel

· pre-startup safety reviews

· design quality assurance

· maintenance and mechanical integrity

· emergency response

· periodic safety audits

· process incident investigation

· standards and regulations

· trade secrets.

9
 Process safety information

Process safety information is used by the process industry to define critical processes, materials and
equipment. Process safety information includes all available written information concerning process
technology, process equipment, raw materials and products and chemical hazards before conducting a
process hazard analysis. Other critical process safety information is documentation relating to capital
project reviews and design basis criteria.

Chemical information includes not only the chemical and physical properties, reactivity and corrosive data
and thermal and chemical stability of chemicals such as hydrocarbons and highly hazardous materials in the
process, but also the hazardous effects of inadvertently mixing different incompatible materials. Chemical
information also includes that which may be needed to conduct environmental hazard assessments of toxic
and flammable releases and permissible exposure limits.

Process technology information includes block flow diagrams and/ or simple process flow diagrams as well
as descriptions of the chemistry of each specific process with the safe upper and lower limits for
temperatures, pressures, flows, compositions and, where available, process design material and energy
balances. The consequences of deviations in the process and materials, including their effect on employee
safety and health, are also determined. Whenever processes or materials are changed, the information is
updated and re-evaluated in accordance with the facility’s management of change system.

Process equipment and mechanical design information includes documentation covering the design codes
employed and whether or not equipment complies with recognized engineering practices. A determination
is made as to whether existing equipment which was designed and constructed in accordance with codes,
standards and practices no longer in general use is maintained, operated, inspected and tested to assure
continued safe operation. Information on materials of construction, piping and instrument diagrams, relief
system design, electrical classification, ventilation design and safety systems is updated and re-evaluated
when changes occur.

 Employee involvement

Process safety management programmes should include employee participation in the development and
conduct of process safety analyses and other elements of the programme. Access to process safety
information, incident investigation reports and process hazard analyses is usually provided to all employees
and contractor employees working in the area. Most industrialized nations require that workers be
systematically instructed in the identification, nature and safe-handling of all chemicals to which they may
be exposed.

10
 Process hazard analysis

After the process safety information is compiled, a thorough and systematic multi-disciplinary process
hazard analysis, appropriate to the complexity of the process, is conducted in order to identify, evaluate and
control the hazards of the process. Persons performing the process hazard analysis should be knowledgeable
and experienced in relevant chemistry, engineering and process operations. Each analysis team normally
includes at least one person who is thoroughly familiar with the process being analysed and one person who
is competent in the hazard analysis methodology being used.

The priority order used to determine where within the facility to begin conducting process hazard analyses
is based on the following criteria:

· extent and nature of the process hazards

· number of potentially affected workers

· operating and incident history of the process

· age of the process.

A number of methods for conducting process safety analyses are used in the chemical industry.

The “what if?” method asks a series of questions to review potential hazard scenarios and possible
consequences and is most often used when examining proposed modifications or changes to the process,
materials, equipment or facility.

The “checklist” method is similar to the “what if?” method, except that a previously developed checklist is
used which is specific to the operation, materials, process and equipment. This method is useful when
conducting pre-startup reviews upon completion of initial construction or following major turnarounds or
additions to the process unit. A combination of the “what if?” and “checklist” methods is often used when
analysing units that are identical in construction, materials, equipment and process.

The hazard and operability (HAZOP) study method is commonly used in the chemical and petroleum
industries. It involves a multi-disciplinary team, guided by an experienced leader. The team uses specific
guide words, such as “no”, “increase”, “decrease” and “reverse”, which are systematically applied to
identify the consequences of deviations from design intent for the processes, equipment and operations
being analyzed.

11
Fault tree/event tree analyses are similar, formal deductive techniques used to estimate the quantitative
likelihood of an event occurring. Fault tree analysis works backward from a defined incident to identify and
display the combination of operational errors and/ or equipment failures which were involved in the
incident. Event tree analysis, which is the reverse of fault tree analysis, works forwards from specific events,
or sequences of events, in order to pinpoint those that could result in hazards, and thereby calculate the
likelihood of an event’s sequence occurring.

The failure mode and effects analysis method tabulates each process system or unit of equipment with its
failure modes, the effect of each potential failure on the system or unit and how critical each failure could
be to the integrity of the system. The failure modes are then ranked in importance to determine which is
most likely to cause a serious incident.

No matter which method is used, all chemical process hazard analyses consider the following:

· process location, siting and hazards of the process

· identification of any prior incident or near miss with potential catastrophic consequences

· engineering and administrative controls applicable to the hazards

· interrelationships of controls and appropriate application of detection methodology to provide early

warnings

· consequences of human factors, facility siting and failure of the controls

· consequences of safety and health effects on workers within areas of potential failure.

 Management of change

Chemical process facilities should develop and implement programmes which provide for the revision of
process safety information, procedures and practices as changes occur. Such programmes include a system
of management authorization and written documentation for changes to materials, chemicals, technology,
equipment, procedures, personnel and facilities that affect each process.

Management of change programmes in the chemical industry, for example, include the following areas:

· change of hydrocarbon process technology

· changes in facility, equipment or materials (e.g., catalysts or additives)

· management of change personnel and organizational and personnel changes

· temporary changes, variances and permanent changes

12
· enhancement of process safety knowledge, including:

- technical basis for proposed change

- impact of change on safety, health and environment

- modifications to operating procedures and safe work practices

- modifications required to other processes

- time required for the change

- authorization requirements for the proposed change

- updating documentation relating to process information, operating procedures and safety practices

- required training or education due to change

· management of subtle change (anything which is not replacement in kind)

· non-routine changes.

The management of change system includes informing employees involved in the process and maintenance
and contractor personnel whose tasks would be affected by any changes of the changes and providing
updated operating procedures, process safety information, safe work practices and training as needed, prior
to the startup of the process or affected part of the process.

 Operating procedures

Chemical processing facilities must develop and provide operating instructions and detailed procedures to
workers. Operating instructions should be regularly reviewed for completeness and accuracy (and updated
or amended as changes occur) and cover the process unit’s operating limits, including the following three
areas:

1. consequences of deviation

2. steps to avoid or correct deviation

3. functions of safety systems related to operating limits.

Workers involved in the process have access to operating instructions covering the following areas:

· initial startup (startup after turnarounds, emergencies and temporary operations)

· normal startup (normal and temporary operations and normal shutdown)

· emergency operations and emergency shutdown

13
· conditions under which emergency shutdown is required and assignment of shutdown responsibilities to
qualified operators

· non-routine work

· operator-process and operator-equipment interface

· administrative controls vs. automated controls.

 Safe work practices

Chemical process facilities should implement hot-work and safe work permit and work order programmes
to control work conducted in or near process areas. Supervisors, employees and contractor personnel must
be familiar with the requirements of the various permit programmes, including permit issuance and
expiration and appropriate safety, materials handling and fire protection and prevention measures.

The types of work included in typical chemical facility permit programmes include the following:

· hot work (welding, hot tapping, internal combustion engines, etc.)

· lockout/tagout of electrical, mechanical, pneumatic energy and pressure

· confined-space entry and use of inert gas

· venting, opening and cleaning process vessels, tanks, equipment and lines

· control of entry into process areas by non-assigned personnel.

Chemical facilities should develop and implement safe work practices to control potential hazards during
process operations, covering the following areas of concern:

· properties and hazards of materials, catalysts and chemicals used in the process

· engineering, administrative and personal protection controls to prevent exposures

· measures to be in event of physical contact or exposure with hazardous chemical

· quality control of raw materials, catalysts and inventory control of hazardous chemicals

· safety and protection system (interlock, suppression, detection, etc.) functions

· special or unique hazards in the workplace.

 Employee information and training

14
Chemical process facilities should use formal process safety training programmes to train and educate
incumbent, reassigned and new supervisors and workers. The training provided for chemical process
operating and maintenance supervisors and workers should cover the following areas:

· required skills, knowledge and qualifications of process employees

· selection and development of process related training programmes

· measuring and documenting employee performance and effectiveness

· design of process operating and maintenance procedures

· overview of process operations and process hazards

· availability and suitability of materials and spare parts for the processes in which they are to be used

· process start-up, operating, shut-down and emergency procedures

· safety and health hazards related to the process, catalysts and materials

· facility and process area safe work practices and procedures.

 Contractor personnel

Contractors are often employed in chemical processing facilities. The facilities must institute procedures to
assure that contractor personnel performing maintenance, repair, turnaround, major renovation or specialty
work are fully aware of the hazards, materials, processes, operating and safety procedures and equipment in
the area. Periodic evaluations of performance are made to assure that contractor personnel are trained,
qualified, follow all safety rules and procedures and are informed and aware of the following:

· potential fire, explosion and toxic release hazards related to their work

· plant safety procedures and contractor safe work practices

· emergency plan and contractor personnel actions

· controls for contractor personnel entry, exit and presence in process areas.

 Pre-startup safety reviews

Pre-startup process safety reviews are conducted in chemical plants prior to startup of new process facilities
and introduction of new hazardous materials or chemicals into facilities, following a major turnaround and
where facilities have had significant process modifications.

15
The pre-startup safety reviews assure the following have been accomplished:

· construction, materials and equipment are verified as in accordance with design criteria

· process systems and hardware, including computer control logic, have been inspected, tested and
certified

· alarms and instruments are inspected, tested and certified

· relief and safety devices and signal systems are inspected, tested and certified

· fire protection and prevention systems are inspected, tested and certified

· safety, fire prevention and emergency response procedures are developed, reviewed, in place and are
appropriate and adequate

· startup procedures are in place and proper actions have been taken

· a process hazard analysis has been performed and all recommendations addressed, implemented or
resolved and actions documented

· all required initial and/ or refresher operator and maintenance personnel training, including emergency
response, process hazards and health hazards, is completed

· all operating procedures (normal and upset), operating manuals, equipment procedures and maintenance
procedures are completed and in place

· management of change requirements for new processes and modifications to existing processes have
been met.

 Design Quality Assurances

When new processes or major changes to existing processes are undertaken, a series of process safety
design reviews are normally conducted before and during construction (prior to the pre-startup review). The
design control review, conducted just before plans and specifications are issued as “final design drawings”,
covers the following areas:

· plot plan, siting, spacing, electrical classification and drainage

· hazards analysis and process chemistry design

· project management requirements and qualifications

· process equipment and mechanical equipment design and integrity

· piping and instrument drawings

· reliability engineering, alarms, interlocks, reliefs and safety devices

· materials of construction and compatibility.

16
Another review is normally conducted just prior to the start of construction covering the following:

· demolition and excavation procedures

· control of raw materials

· control of construction personnel and equipment on facility and site

· fabrication, construction and installation procedures and inspection.

One or more reviews are usually conducted during the course of construction or modification to assure the
following areas are in accordance with design specifications and facility requirements:

· materials of construction provided and used as specified

· proper assembly and welding techniques, inspections, verifications and certifications

· chemical and occupational health hazards considered during construction

· physical, mechanical and operational safety hazards considered during construction and facility permit
and safety practices followed

· interim protective and emergency response systems provided and working.

 Maintenance and mechanical integrity

Process facilities have programmes to maintain ongoing integrity of process-related equipment, including
periodic inspection, testing, performance maintenance, corrective action and quality assurance. The
programmes are intended to assure that mechanical integrity of equipment and materials is reviewed and
certified and deficiencies corrected prior to startup, or provisions made for appropriate safety measures.

Mechanical integrity programmes cover the following equipment and systems:

· pressure vessels and storage tanks

· emergency shutdown and fire protection systems

· process safeguards such as relief and vent systems and devices, controls, interlocks, sensors and alarms

· pumps and piping systems (including components such as valves)

· quality assurance, materials of construction and reliability engineering

· maintenance and preventive maintenance programmes.

Mechanical integrity programmes also cover inspection and testing of maintenance materials, spare parts
and equipment to assure proper installation and adequacy for the process application involved. The
acceptance criteria and frequency of inspections and tests should conform with manufacturers’

17
recommendations, good engineering practices, regulatory requirements, industry practices, facility policies
or prior experience.

 Emergency Response

Emergency preparedness and response programmes are developed to cover an entire process facility and to
provide for hazard identification and assessment of potential process hazards. These programmes include
training and educating employees and contractor employees in emergency notification, response and
evacuation procedures.

A typical process facility emergency preparedness programme complies with applicable company and
regulatory requirements and includes the following:

· distinctive employee and/ or community alarm or notification system

· preferred method of internal reporting of fires, spills, releases and emergencies

· requirements for reporting process-related incidents to appropriate government agencies

· emergency shutdown, evacuation, procedures to account for personnel, emergency escape procedures,
vehicle and equipment removal and route assignments

· emergency response and rescue procedures, duties and capabilities including employees, public safety,
contractors and mutual aid organizations

· procedures for handling small spills or releases of hazardous chemicals

· procedures for providing and safeguarding emergency power and utilities

· business continuation plans, personnel and equipment sources

· document and record preservation, site security, cleanup, salvage and restoration.

 Periodic safety audits

Many process facilities use self-evaluation process safety management audits to measure facility
performance and assure compliance with internal and external (regulatory, company and industry) process
safety requirements. The two basic principles of conducting self evaluation audits are: gathering all of the
relevant documentation covering process safety management requirements at a specific facility and
determining the programme’s implementation and effectiveness by following up on their application in one
or more selected processes. A report of the audit findings and recommendations is developed and facility
management maintains documentation which notes how deficiencies had been corrected or mitigated, and if
not, reasons why no corrective action had been taken.

18
Compliance audit programmes in hydrocarbon process facilities cover the following areas:

· establishment of goals, schedule and methods of verification of findings prior to the audit

· determination of the methodology (or format) to be used in conducting the audit, and develop
appropriate checklists or audit report forms

· readiness to certify compliance with government, industry and company requirements

· assignment of knowledgeable audit teams (internal and/ or external expertise)

· prompt responses to all findings and recommendations and documentation of actions taken

· maintenance of a copy of at least the most recent compliance audit report on file.

Facility and process unit specific checklists are often developed for use when conducting process safety
audits which cover the following items:

· orientation and process safety management programme overview

· preliminary walk-around through the refinery or gas processing facility

· process facility documentation review

· “prior incidents” and near misses (in the process facility or specific unit)

· determination and review of selected process units to be audited

· process unit construction (initial and subsequent modifications)

· process unit chemistry hazards (feedstocks, catalysts, process chemicals, etc.)

· process unit operations

· process unit controls, reliefs and safety systems

· process unit maintenance, repair, testing and inspection

· process unit-related training and employee involvement

· process facility management of change programme, implementation and effectiveness

· process fire protection and emergency notification and response procedures.

Because the objectives and scope of audits can vary, the compliance audit team should include at least one
person knowledgeable in the process being audited, one person with applicable regulatory and standards
expertise and other persons with the skills and qualifications necessary for conducting the audit.
Management may decide to include one or more outside experts on the audit team due to lack of facility
personnel or expertise, or because of regulatory requirements.

19
 Process incident investigation

Process facilities have established programmes to thoroughly investigate and analyse process-related
incidents and near misses, promptly address and resolve findings and recommendations and review the
results with workers and contractors whose jobs are relevant to the incident findings. Incidents (or near
misses) are thoroughly investigated as soon as possible by a team which includes at least one person
knowledgeable in the process operation involved and others with appropriate knowledge and experience.

 Standards and Regulations

Process facilities are subject to two distinct and separate forms of standards and regulations.

1. External codes, standards and regulations applicable to the design, operation and protection of process
facilities and employees typically include government regulations and association and industry standards
and practices.

2. Internal policies, guidelines and procedures, developed or adopted by the company or facility to
complement external requirements and to cover processes which are distinct or unique, are reviewed
periodically and changed when necessary, in accordance with the facility’s management of change system.

 Trade Secrets

Process facility management should provide process information, without regard to possible trade secrets or
confidentiality agreements, to persons who are:

· responsible for gathering and compiling process safety information

· conducting process hazard analyses and compliance audits

· developing maintenance, operating and safe work procedures

· involved in incident (near miss) investigations

· responsible for emergency planning and response.

Facilities typically require that persons to whom process information is made available enter into
agreements not to disclose the information.

 Chemical Industry In India

The chemical industry of India is a major contributor to the Indian economy, contributing 7% of the
country's Gross Domestic Product (GDP). India's chemical industry ranks as sixth largest in world, and

20
third in Asia. The value of the chemical industry in India was estimated at 100 billion dollars in 2019. The
chemical industry of India generates employment for five million people.

The Indian chemical industry produces 80,000 different chemical products. India was also the third largest
producer of plastic in 2019. As of September 2019, the alkali chemical industry produced 71% of all
chemicals produced in India.India's chemical industry accounts about 14% of production in Indian
industries

The Indian chemical industry mainly produces basic types of chemicals as well as knowledge type
chemicals and specialty type chemicals as of 2018. In India, Gujarat was the largest state contributor to the
chemical industry of India in 2018. India also produces products related
to petrochemicals, fertilizers, paints, varnishes, glass, perfumes, toiletries, pharmaceuticals, etc.

The India chemical industry is divided into six sub-segments. These sub-segments are Basic Organic
Chemicals, Specialty Chemicals, Chlor-alkali, Pesticides, Dyestuff, and alcohol-based chemicals. India is a
major producer of basic organic chemicals.

 HISTORY

In India, the Council of Scientific and Industrial Research (CSIR) was established in 1942 with the aim of
providing scientific and industrial research to maximize the scientific, economic, and environmental
benefits to the people of India.

The Indian Chemical Manufacture association, now called Indian Chemical Association (ICC) was founded
in 1938 in by P. C. Ray, Rajmitra B. D. Amin and other Industries to promote the national chemical
industry of India.

In India, the first pharmaceutical company set up was Bengal Chemicals and Pharmaceutical. Bengal
Chemicals and Pharmaceutical was set up by P.C Ray, professor of chemistry at Calcutta University. After
9 years of settlement of this company, one more company called Alembic Chemical works at Baroda (Now
as Vadodara) in Gujarat was set up.

Before World War II, foreign companies had the domain in the drug industry of India. After World War II,
foreign company domain in drugs decreased and more Indian drug companies were established. During this
time, the Indian government established five drug companies. The two of them are Hindustan Antibiotics
Limited and Indian Drugs and Pharmaceutical companies.

After India got independence from the British Raj in 1947, India established many units of basic chemicals,
dyes, textiles and fertilizers. In 1964, a downstream plant was established in Mumbai.

21
In the 1980s and 1990s, the petroleum industry of India had grown faster with the development of the gas
cracker, along with related downstream industries for polymers, synthetic fibers, aromatic and other
chemicals. In early 1980, the IPCL had established a plant-based on a cracker in Gujarat and Maharashtra.

India has been suppressed by inadequate supply and high import duties in the petroleum industry, which led
to private industry entry into the petroleum industry. Reliance industries have set up many parts
in PatalGanga (Maharashtra), Jamnagar (Gujarat), Hazira (Gujarat). This led to an increased role of
Reliance industries in the petroleum industry. This has led to the entry of Reliance industries into
the polyester business, such as purified terephthalic acid, and polyethylene terephthalate resin. These new

materials are used to make polyester fibre, bottle and filamentation.

 PRODUCTIONS

 Basic Organic Chemical Industry

The organic chemicals industry is one of the most significant sectors of the chemical industry in the world.
It plays a vital role in providing inputs for other industries
of paints, adhesives, pharmaceuticals, dyestuffs and intermediates, leather chemicals, pesticides,
etc. Methanol, acetic acid, formaldehyde, pyridine, phenol, alkylamines, ethyl acetate, and acetic
anhydride are major basic organic chemicals that are produced in India.

Six major chemicals are produced in India: methanol, aniline, alkylamines, and its
derivatives formaldehyde, acetic acid, and phenol contributing to nearly 2/3 of Indian basis organic
chemical industry.

 Chlor-Alkali Chemical Industry

The chlor-Alkali is an industrial process for the electrolysis of sodium chloride solutions. In India chlor-
alkali industry mainly consists of the production of three inorganic chemicals. The mainly three
inorganic chemicals that are produced in the form of this industry are caustic soda
(NaOH), chlorine (Cl2) and soda ash (Na2CO3). Hydrogen is also produced in this industry in small
amounts. The chlor-alkali industry inputs are mainly used in soaps
and detergents, pulp and paper, textiles, aluminium processing industry for caustic soda and for soda
ash in glass, silicate production etc apart from soaps and detergents. In the financial year 2019–2020 of
chlor-alkali industry of India over four million metric tons of alkali chemicals were produced. The products
that are produced in this industry are soda ash, caustic soda, and liquid chlorine.

The major organic chemicals produced in India include methanol, formaldehyde, phenol, acetic acid,
pyridines, acetic anhydride, alkyl amines and ethyl acetate. Apart from India the other major producers of
organic chemicals are USA, Germany, U.K, Japan and China. Countries like Brazil and Chile are trying to
increase production of these important chemicals.

22
Large volumes of imports from China have led to a decline in production of major organic chemicals in
India. With significant rise in demand, the gap between domestic supply and demand has increased. The
rising demand for organic chemicals has been met mostly through imports. During the XIth plan period
domestic production declined at the rate of 6 per cent per year, while imports grew at 17-19 per cent per
year. In order to establish additional domestic capacity and meet demands through local production we need
substantial investment. Lack of sufficient feedstock is another hindrance for the sector, thus ensuring
feedstock availability including naphtha, alcohol and natural gas is essential.

Methanol is the most important organic chemical, produced in India from naptha and natural gas. Methanol
can also be produced from coal and petcoke- a method which is yet to be commercialized. The poor quality
of coal available in India has made production of methanol through this route unviable. As a result the
rising demand for methanol is met via imports.

As far as methanol consumption is considered, the two major end-use segments for methanol are energy
and chemical. The energy sector utilizes methanol as a blending component for methyl tertiary butyl ether
(MTBE) and petrol, tertiary amyl methyl ether (TAME) and di-methyl ether (DME). The chemical segment
requires methanol to produce acetic acid, formaldehyde, di-methyl terephthalate (DMT) etc.

Demand for methanol is expected to reach 2.5 million tonnes by the end of the XIIth Five Year Plan period.
Investments and strategic planning could reduce dependence on imports and help set up additional capacity.

Acetic acid is used for producing purified terephthalic acid (PTA), acetic anhydride, vinyl acetate monomer
(VAM) and acetate esters. It is produced through alcohol or methanol route. The alcohol route has become
unviable in India as a result of limited availability of this feedstock.

PTA is the basic raw material for polyester and fiber. Rising demand for PTA had led to increased demand
for acetic acid as well, which is mostly met through large volumes of import. Consumption of acetic acid is
expected to reach 1 million tonnes by the end of the XIIth Five Year Plan period.

Formaldehyde and phenol have been growing at a moderate pace. Phenol is utilized to produce
caprolactam and bisphenol-A. Formaldehyde is an important chemical for the laminate sector. Demand for
formaldehyde is estimated to be 0.3 million tonnes, while the demand for phenol is estimated to be 0.4
million tonnes by the end of the XIIth Five Year Plan period.

Acetic Anhydride demand is expected to reach 0.08 million tonnes. Despite sufficient production, India
has little trade in terms of acetic anhydride.

Ethyle Acetate primarily used for paints, printing inks and pharmaceuticals. Demand for this organic
chemical is met through domestic production. India also exports large quantities of ethyl acetate.

23
Alkyl amines include methylamine, ethyl hexyl amines, ethylamines, butylamines, isopropylamines. The
Indian industry is self-sufficient in terms of alkyl amines, which are used to produce paints, rubber
chemicals, pharmaceuticals, agro-chemicals etc.

 ORGANIC CHEMICAL INDUSTY

The organic chemicals industry in India has several opportunities to expand. It is important that the Indian
organic chemical firms explore opportunities outside the country through green-field or brown-field
projects. Companies can enhance their product portfolio by including specialty chemicals like lubricating
additives, polymers additives, water treatment chemicals etc. This move would increase their profit margins.
The newly discovered natural gas reserves in the country will enable local manufacturers to procure
feedstock at stable prices.

Despite these opportunities to grow, there are several challenges that the industry needs to overcome. Lack
of cheaper raw materials like naphtha and natural gas, which are essential for the industry, is a major
challenge. Compared to countries like Middle East, China, Thailand and Indonesia, cost of raw materials is
higher in India. The Indian industry is plagued by poor infrastructure, poor pipeline connectivity,
inadequate facilities at railway terminals and ports. Further the oversupply and large capacity additions in
global markets are also a cause of concern for domestic manufacturers.

Demand for basic organic chemicals can grow at a rate of 10 per cent per year in order to reach 5 million
tonnes by the end of the XIIth Five Year Plan period. To meet this demand the industry will have to grow at
a rate of 10-12 per cent per year. Policy initiatives from the government and creation of favourable
investment climate will help the industry achieve the growth target. Establishing world scale plants will
reduce the industry’s dependence on imports and help it move towards self-sufficiency.

Chemical Manufacturing is part of the Manufacturing Sector (NAICS 31-33). This sector covers the
transformation of organic and inorganic raw materials by a chemical process and the formation of product.
Chemical industry

➢ In Manufacturing Industry:

Manufacturing companies play an important role in the Indonesian economy. The company contributes to a
large income to the country either through taxes or other contracts. Because of its size, the company
engaged in manufacturing also has a large absorption of labor, that will lead to reduce unemployment.
Manufacturing itself has a different meaning than production, production itself has a broader meaning,
namely the process of processing raw materials into a product such as gas, liquid or solid. While
manufacturing is the process of processing raw materials into a product in solid form.

24
 Manufacturing is a term refer to the process of converting raw materials, components, or parts into
finished goods that meet customer expectations or specifications. This term can be used for human activities,
from handicrafts to high-tech production. Manufacturing companies in every work or operational activity
have a basic reference and standard used by employees, usually, the standard reference is called SOP
(Standard Operating Procedure).

 Procurement process: This is a business process related to the procurement of goods and other needs
in helping business sustainable. Not only materials or raw materials, but also includes spare parts,
medical devices, cleaning equipment, building needs, employee needs, carpentry tools, and other
materials and components. This process requires completeness as well as efficiency and effectiveness
in the selection of these items.

 In Out Inventory: Considering the business processes that process raw materials into ready to-use
products, there will automatically be many goods or materials entering and leaving the company. In
Out Inventory is a business process that handles the entry and exit of these items, the key is control of
goods flow.

 Production process: The function of the production process is processing raw materials into finished
goods and can be sold to consumers. In reality, there is wider division depend on the needs of the
industry. For example, PPIC (Production Planning and Inventory Control) divisions and also QC
(Quality Control).

 Administration and General: This division is responsible for determining policies, directives, and
supervision so that ongoing activities are more effective and efficient. For example, in this
department, there are several costs such as accounting fees, employee costs, employee salary costs and
others.

 Accounting and Finance: Accounting and finance ensure that the finances of a business entity are
healthy and able to meet production needs, as well as control over debt. In addition, an accounting,
in particular, has an obligation to regulate taxes that must be paid by the factory to the government.

The manufacturers are more process-oriented than service providers. In particular, manufacturing
companies are more likely to apply continuous process improvement methods, to have a stronger
management commitment toward process orientation, to have process owners on site, and to perform
process performance measurement. In particular, the greatest difference between service providers and
25
manufacturers is found in the process performance measurement practice. No significant difference is found
in the context of process-supportive corporate culture as well as process documentation.

➢ In Service Industry:

Service industries has the functional responsibility for producing the services of an organization and
providing them directly to its customers. It specifically deals with decisions required by operations
managers for simultaneous production and consumption of an intangible product. These decisions concern
the process, people, information and the system that produces and delivers the service. It differs from
operations management in general, since the processes of service organizations differ from those of
manufacturing organizations.

The services sector treats services as intangible products, service as a customer experience and service as a
package of facilitating goods and services. Significant aspects of service as a product are a basis for guiding
decisions made by service operations managers. The extent and variety of services industries in which
operations managers make decisions provides the context for decision making. Industries have been defined
by economists as consisting of four parts: Agriculture, Mining and Construction, Manufacturing, and
Service. Services have existed for centuries. Early service was associated with servants. Servants were hired
to do tasks that the wealthy did not want to do for themselves (e.g. cleaning the house, cooking, and
washing clothes). Later, services became more organized and were provided to the general public.

We can define the service process as the way in which a company works so that a customer receives service.
To standardize this in line with the company’s identity and aims, managers will work on:

• Determining procedures which contribute to the process

• Allocating tasks and responsibilities
• Formulating effective schedules and routines
• Defining service mechanisms and process flows
The shape that the service process will assume will depend on two primary factors:
• The type of service process
• The degree of customer contact

Service and manufacturing industries are highly interrelated. Manufacturing provides tangible facilitating
goods needed to provide services; and services such as banking, accounting and information systems
provide important service inputs to manufacturing. Manufacturing companies have an opportunity to

26
provide more services along with their products. This can be an important point of product differentiation,
leading to increased sales and profitability for manufacturer.

MARKET DEMAND AND SUPPLY.

Supply and demand is an economic model of price determination in a market. It postulates that, holding all
else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or
liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price)
will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and
quantity transacted.

 CHEMICAL INDUSTRY IN INDIA

The market size of Chemicals & Petrochemicals sector in India is around $178 bn; expected to grow to
$300 bn by 2025. The production of Total Major Chemicals and Petrochemicals in 2020-21 (upto
September 2020) was 12,502 thousand MT. CAGR in production of Total Chemicals and Petrochemicals
during the period 2015-16 to 2019-20 is 5.74%. Alkali Chemicals accounts for around 71% of the total
production of Major Chemicals for the year 2019-20 (upto September 2019).
 The petrochemical demand is expected to grow at 7.5% CAGR from FY 2019-23, with polymer
demand growing at 8%
 The agrochemicals market in India is expected to grow at 8% CAGR reaching $3.7 bn by FY22 and
$4.7 bn by FY25.
 The specialty chemicals constitute 18% of total chemicals and petrochemicals market in India. As of
FY19, the total market size is around $32 bn. The demand for speciality chemicals is expected to grow
at 12% CAGR from FY19-22.

➢ In Manufacturing Industry:
Manufacturing is an essential component of gross domestic product, which was $2.33 trillion in 2018, and
drove 11.6% of U.S. economic output, according to the Bureau of Economic Analysis. Manufactured goods
comprise half of U.S. exports. Manufacturing adds a lot of value to the power of the U.S. economy. Every
dollar spent in manufacturing adds $1.89 in business growth in other supporting sectors, including retailing,
transportation, and business services. Manufacturing used to be a larger component of the U.S. economy. In
1970, it was 24.3% of GDP, double what it was in 2018. America's edge as the world's leading
manufacturer has also slipped. In 1970, China was the world's fifth-largest manufacturer. It took the top
spot in 2010, replacing the United States. Japan is third at 10%, followed by Germany at 7%, South Korea
at 4%, and India at 3%. China produces 20% of the world's goods, and the U.S. produces 18%.

27
Industry accounts for 26% of GDP and employs 22% of the total workforce. According to the World Bank,
India's industrial manufacturing GDP output in 2015 was 6th largest in the world on current US dollar basis
($559 billion), and 9th largest on inflation-adjusted constant 2005 US dollar basis ($197.1 billion). The
industrial sector underwent significant changes due to the 1991 economic reforms, which removed import
restrictions, brought in foreign competition, led to the privatisation of certain government- owned public-
sector industries, liberalised the foreign direct investment (FDI) regime, improved infrastructure and led to
an expansion in the production of fast-moving consumer goods.
Manufacturing holds a key position in the Indian economy, accounting for nearly 16 per cent of real GDP
in FY12 and employing about 12.0 per cent of India’s labour force. Growth in the sector has been matching
the strong pace in overall GDP growth over the past few years. For example, while real GDP expanded at a
CAGR of 8.4 per cent over FY05-FY12, growth in the manufacturing sector was marginally higher at
around 8.5 per cent over the same period.
Consequently, its share in the economy has marginally increased during this time – to 15.4 per cent from
15.3 per cent. Growth however has remained below that of services, an issue that has not escaped the
attention of policy makers in the country.

➢ In Service Industry:

Service industries so distinct from manufacturing ones is their immediacy: the hamburgers have to be hot,
the motel rooms exactly where the sleepy traveller s want them, and the airline seats empty when the
customers want to fly. Balancing the supply and demand sides of a service industry is not easy, and whether
a manager does it well or not will, this author writes, make all the difference.
The services sector has the largest share of India's GDP, accounting for 57% in 2012, up from 15% in 1950.
[203] It is the seventh-largest services sector by nominal GDP, and third largest when purchasing power is
taken into account. The services sector provides employment to 27% of the workforce.
Information technology and business process outsourcing are among the fastest-growing sectors, having a
cumulative growth rate of revenue 33.6% between fiscal years 1997–98 and 2002–03, and contributing to
25% of the country's total exports in 2007– 08.The services sector is the largest sector in India. The services
sector accounts for 53.66% of total India's GVA of Rs. 137.51 lakh crore. The industrial sector is at the
second spot and contributing around 31% of the Indian GDP. The agriculture sector is at the third spot and
contributing around 16% of the Indian GDP.
The services sector is the largest sector in India. The services sector accounts for 53.66% of total India's
GVA of Rs. 137.51 lakh crore. The industrial sector is at the second spot and contributing around 31% of
the Indian GDP. The agriculture sector is at the third spot and contributing around 16% of the Indian GDP.

28
 LEVELS AND TYPES OF COMPETITION
 Organic chemical industry
Some of the major companies under organic chemical industries
 Diam Organic Chemical Industries
 Organic industries Pvt Ltd ( Dahej)
 Indian Organic Chemical Ltd
 Laxmi Organic Chemical Ltd
 Hindustan Organic Chemicals
 Reliance Organic Chemical Industries
 Kedia Organic Chemical Ltd.

➢ In Manufacturing Industry:

Manufacturing is an essential part of a country’s economy. The competitiveness of a firm is

the complex array of interdependent factors relating to its quality, innovation, efficiency, effectiveness,
customer satisfaction, employee satisfaction and empowerment. To be more competitive, a manufacturing
firm would have to identify their core competencies and develop them to achieve their strategic and
competitive advantage. There are three intangible assets that contribute to the firm’s strategy and
competitiveness: human capital, organizational capital and information capital. Rapid globalization,
technological advancements, changing consumer preferences, and evolving government policies are
reshaping the manufacturing industry, exponentially accelerating the pace of competition and continually
raising the bar on company performance. High-performing manufacturers share several common attributes
that distinguish them from the rest:
• Brand, reputation, and managing customer perceptions are the top priority among high performing
manufacturers to pursue current and future competitiveness.
• Talent remains a key capability among high performers, while the gap is closing on leadership
capabilities.
• High performers are focused on improving their price competitiveness while setting their sights on new
markets and new customers.
• High performers are aggressively applying new, advanced technologies to help drive innovation while
protecting intellectual property with an enhanced emphasis on cyber security capabilities as key
differentiators for future competitiveness.

29
 ➢ In Service Industry:
Competition in service industries. Increasingly, firms in service industries differentiate themselves on the
basis of the waiting time their customers experience, along with their price levels and other service
attributes (location, quality of service etc.)When customers select a specific firm, the selection process
amounts to a trade off among three categories of service attributes: (1) the price; (2) the waiting time
standard; (3) all other attributes.
General market competing service facilities. Firms differentiate themselves by their price levels and the
waiting time their customers' experience, as well as different attributes not determined directly through
competition. Our model therefore assumes that the expected demand experienced by a given firm may
depend on all of the industry's price levels as well as a (steady state) waiting time standard, which each of
the firms announces and commits itself to by proper adjustment of its capacity level. While focus primarily
on a separable specification, which, in addition is linear in the prices. (Alternative non-separable or non-
linear specifications are discussed in the concluding section.) a firm's service level as the difference between
an upper bound benchmark for the waiting time standard and the firm's actual waiting time standard.
Different types of competition and resulting equilibrium behavior may arise, depending on the industry
dynamics through which the firms select their strategic choices. In one case, firms may initially select their
waiting time standards, followed by a selection of their prices in a second stage (Service Level First).
Alternatively, the sequence of strategic choices may be reversed (Price First) or as a third alternative, the
firms may make their choices simultaneously (Simultaneous Competition). Each of the service facilities as a
single server M/M/1 queueing facility, which receives a given firm specific price for each customer served.
Each firm incurs a given cost per customer served as well as cost per unit of time proportional to its adopted
capacity level

PRICING STRATERGIES IN THE INDUSTRY.

 Chemical Industry.
In the chemical industry, pricing has a dominant effect on profits. To date, most industry analysts have relied
on the competitive model, according to which capacity and demand determine price. In fact, a noncompetitive
model, in which supply (not capacity) and demand determine price, may fit the industry better. The
difference is that, whereas capacity represents physical ability to produce, supply represents willingness to
produce. The behavior of the chemical industry during two critical periods has encouraged use of the
competitive model. In the late 1960's, it was widely believed that prices declined because an imbalance
between capacity and demand triggered a struggle for market share. In 1973 and 1974, an alleged shortage
invoked the converse argument--namely, that sharply increased product pricing was the result of under
investment earlier in the decade, combined with steadily rising demand. In 1970 and 1975, however, chemical
industry pricing contradicted the competitive model. In
30
1975, volume declined for the first time in many years, while prices showed an almost 20 per cent increase
over the elevated levels of 1974. The author points out that, as industries mature, they generally evolve from
a noncompetitive first stage (beginning with the development of a new product by a single producer),
through a competitive second stage, to a noncompetitive third stage. Only in the second stage, when patents
expire or rivals develop equivalent technologies, do capacity and demand determine price. In the third stage,
the high cost producers drop out until the remaining number of firms is small enough that they can regulate
entry by maintaining profitability at a constant threshold level, placing more emphasis on fluctuations in cost
than on fluctuations in demand. Competition exists, but it exists between current producers and candidates
for entry, rather than among producers. The author's examination of the data suggests that pricing in the
chemical industry has been based on unit production costs all along. Under this interpretation, unit costs of
production, hence selling prices, should rise about three per cent a year. For the near term, however, with the
big surge in costs largely past and volume steadily increasing, price increases will be minor and profit growth
unexciting.

➢ In Manufacturing Industry:

Manufacturing is a particularly tricky industry when it comes to effective pricing strategies need to set a
less profitable, lower price to clear out excess inventory. Or you may be selling high- value, best-in-class
products that demand a higher than average price.

The following are the pricing strategies of manufacturing Industry:-

• Use Data to Set Instant, Optimal Prices:

The manufacturing sector is a rapidly moving marketplace so yesterday’s price may well be wrong today.
When you have accurate, up-to-the-minute sales data coupled with current marketplace information you can
make instant price changes as often as you need.

• Spot Underselling Products & Take Action

Once you have accurate, comprehensive sales information about your products, you will be able to identify
which of them are not selling as well as you want. Armed with this information you can investigate reasons
they are under performing and make them more popular. A sales tool that includes sophisticated up selling
and cross-selling options could also help you highlight under performing products and feature them in
profitable product bundles.

• Set Tomorrow's Price Using Price Analytics

It’s not enough to think about today's price in the fast-moving world of manufacturing, but also you need to

31
think where your market is heading and set your prices to match. This is where predictive analytics tools

32
come in. By identifying what’s going to happen in the future, you can create a pricing strategy to respond to
these predictions. A predictive analytics tool will evaluate past performance in specific market conditions to
suggest which products you will be able to sell at what price in what region.

• Turn Visitors into Customers Using Online Interactions

Want more people to arrive as visitors and leave as clients? Monitor their online interactions with your
company - and learn from them to maximize profits. A modern online sales system will show you exactly
how your clients interact with your website and enable you to fine tune it to create up sell and cross-sell
opportunities with ease.

• Set Prices that Capture Value

Instead of simply considering the costs incurred to create and produce a product, consider its true value to
the customer. This includes determining how much monetary and non-monetary value your product
generates for the customer by analyzing factors such as increased efficiency, health, or happiness. This
pricing strategy is all about putting yourself in your customer’s shoes and asking how you can be the
manufacturer that provides the best deal for them in terms of pricing versus product attributes. This pricing
strategy is particularly popular among companies in the pharmaceutical and software development
industries, as well as in more creative areas such as manufacturing and selling of artwork and design
objects.

• Treat Different Customers Differently

Developing a comprehensive pricing strategy requires embracing the fact that your customer’s pricing
needs differ. Some are going to prefer a different pricing plan, and others will value different product
variations differently. To take advantage of these differences, consider implementing a pick-a-plan
approach to your pricing. While some customers may want to purchase a product upfront, others may prefer
to lease or pre-pay instead. By offering different pricing plans, you can offer them price assurance and help
them overcome financial constraints. 1Another way to profit from treating customers differently is by
offering basic, standard, and premium versions of the same product. And can also implement differential
pricing by pricing your products differently based on demographics, order quantity, payment terms, and
other differentiating factors.

33
➢ In Service Industry:

The following are the pricing strategies in Service Industry ;

• Market penetration strategy: Set prices low to grow market share. Then increase your rates over time as
your customer base grows. Admittedly, this isn’t a common pricing strategy for service businesses, but it
can help you grow your customer base quickly. The big problem with this approach is that some customers
may associate the lower price with an inferior level of service. You will also have to work a lot harder to
cover your costs.

• Price skimming: The opposite of a market penetration strategy. Here you set a high price and lower it
over time. Again, this isn’t your typical pricing strategy for a service business. But it may work if you have
something special to offer. The pros are that you’ll maximize your profits upfront and grow a more
sustainable business. The big drawback, however, is that if you can’t justify the price, you’ll struggle to get
your business off the ground.

• Premium pricing: Charge higher prices because you have something that makes you unique. For
example, do you offer a warranty or service guarantee that your competitors do not? Do you use exclusive
tools or technology that make your business easier to work with and deliver results that stand out?

• Economy pricing: Set low prices because overheads are low. Your costs may be low for several reasons.
Perhaps you use software to organize and manage your business instead of hiring an assistant. Or maybe
you have a special arrangement with one of your suppliers which allows you to get inexpensive supplies.

• Cost-plus pricing: Calculate the cost to deliver your services and add a margin for a profit. For example,
if you know your time and materials cost $200, and you want to make a 20% profit margin, simply charge
$240. This is a straightforward pricing strategy, but it can cost you money because you may end up setting a
lower price than what customers are actually willing to pay.

• Psychological pricing: Prices based on the psychological impact they have. For example, it’s believed
that odd prices like $19.97 are more attractive than round numbers like $20.00.

• Competitive pricing: Charge according to what the competition charges. While competitors can give you
a good idea of where to start, remember that your business is unique. Just because someone is charging a
specific price doesn’t mean you should match or undercut them.

34
• Pricing:; Also known as packaged pricing, this strategy involves bundling various services together and
charging one price. Bundled services are usually cheaper than if customers were to purchase each service
individually. If done correctly, this technique is a great way to up sell more services and boost your profits
—as Dave Moerman of Revive Washing notes:
“Our house washing package is our most requested and most profitable service. This is a full soft wash of
siding, windows, and gutters). Homeowners like this package because it takes care of all services with one
detailed visit…For our crew to be profitable, we have to do a certain amount of revenue per day. Small jobs
are okay to slot in, but we like to have a good-size house wash for each crew for each day. From a
profitability perspective, it’s much better.”

• Tiered pricing: Offer clients the option of choosing between different levels of service or packages. In
window cleaning, for example, you can offer a basic package for $99 (outside cleaning only), a standard
package for $149 (inside and outside), or a deluxe package for $199 (inside, outside, tracks and sills). Each
package offers incrementally more value, and the difference in price gives the consumer a chance to
consider what they are willing to spend. You can also experiment by increasing the lowest tier price to give
the two other tiers a higher perceived value. For example, if you price the starter package at $129, and the
standard package is $149, clients may choose the standard package because it’s a small amount of money
for considerably more value.
The big advantage of tiered pricing is that customers now compare your packages against each other instead
of comparing you against the competition, which improves your chances of selling your services.

• Value-based pricing: Charge a flat fee based on the value (benefits) your service provides. Value, for
example, could mean saving the customer time or giving them peace of mind. Before quoting a client, make
sure you’re clear on the benefits your service provides and, in turn, what they’re actually paying for.
For example, parents who use house cleaning services are not really paying for the service itself, but the
time it frees up so they can spend with their children. Charging for your services based on value lets you
charge a premium and protects you from the all-too-common price haggling that occurs with some
customers.

• Hourly-based pricing: Estimate how long a job will take and multiply it by your hourly rate. Although
this pricing strategy may be suitable when starting a business. Pricing services is generally harder than
pricing products as each job is different, and you have to grapple with your own experience, insecurities,
and specifics of each job. On top of that, pricing is complex with many different pricing strategies to choose
from.

35
 PROSPECTS AND CHALLENGES OF THE INDUSTRY.
The five key challenges are: ‘Increasing commoditisation of chemical products’; disruption in feedstock
supply leading to rising trade tensions’; ‘volatility in prices resulting in crude price volatility’; volatility in
foreign exchange leading to rising trade tensions’; and ‘risk of global economic slowdown’.
he researchers further point at increasingly stringent environmental regulations as a growing challenge.
Some of the largest economies in the chemical supply chain, namely the US and China, are not only
struggling with slow economic growth and poor trade relations amongst themselves, but are also under
international pressure to abide by modern environmental standards.

“Currently, the industry is going through a consolidation phase, especially in China, due to the
government’s increasing focus on environmental regulation and closure of plants that are following
environmentally unsustainable practices. Due to the global nature of the value chain, many downstream
companies have seen irregular supply from their Chinese suppliers or increasing costs,” stated the report.

This is particularly concerning for the sector, in light of the fact that China is responsible for the bulk of
global supply delivery and production. China currently holds the largest market share in the world in
chemicals, at 40%. In comparison, India’s $163 billion chemical industry represents a 3% share.

➢ In Manufacturing industry:
The manufacturing industry is expected to continue to grow in the next few years, despite all
he challenges. Apart from the instability in both national and international economic conditions, there are
also various internal challenges faced by manufacturers. Here are seven common challenges in the
manufacturing industry.

Prospects of Manufacturing Industries are:

• Manufacturing Intelligence: Intelligence must become a top priority in manufacturing -- it has to be

planned, implemented, managed and invested in. It usually requires a completely new view and perspective
on what is traditionally looked at as strictly a mechanical or procedural challenge. It will include advanced
data collection from sensors and actuators; immediate knowledge of inventory, assets, production condition;
and increased process, productivity and cost granularity.

• Predictive Analytics in Manufacturing: Manufacturers have to take their manufacturing intelligence and
use it in ways that will predict the future so that decisions and actions are taken before problems emerge,
before risk events happen and before opportunities are squandered. This includes embedded analytics;
enabling predictive technologies; and rapid response capabilities.

36
• Production Quality Management: This is how manufacturers achieve nearly zero waste, zero incidents
and zero emissions. The new improvements in quality will stem from information visibility, connectivity,
and analytics.

• Integrated Scheduling and Operations Execution: New techniques are being developed to completely
change how manufacturing scheduling can make plants and factories more flexible, produce more, and
support more product designs. Again, this is driven by sophisticated uses of information and includes:
dynamic execution planning and scheduling; sense and respond capabilities; and advanced modeling..

• Manufacturing Visibility and Visualization: Information is useless unless it helps you understand and
act. Imagine being able to have a holistic, dynamic view of your operations in real-time, being able to
visualize people, systems, assets, and inventories as they make their way through a complex supply chain.
New instrumentation, networks, and control rooms will enable manufacturers to see multiple factories in a
single view, utilize advanced manufacturing dashboards; and optimize their capacity across the entire
enterprise.

• Manufacturing Network Monitoring: The ability to see and act on your entire network enables you to
predict problems, quickly deploy corrective actions (such as repairs) and keep the entire network humming.
This leads to improved operational decisions; enhanced remote visibility; and lowest cost of production
possible.
Challenges of manufacturing Industries are:

• Forecasting Demand for Products: Today, there are still many manufacturers who have difficulty
forecasting future demand. The main problem is that they do not have advanced reporting tools that allow
them to estimate how many items they should sell in the next few months or the following year. As a result,
their products fail to meet the customer demand and they suffer lower sales.

• Controlling Inventory: Inventory management is still one of the main challenges in the manufacturing
industry, but thanks to the help of automated solutions, it has become much simpler. Nevertheless, there are
still many manufacturers, especially the small ones, who still manage their inventory manually. Inventory
tracking is a time consuming process that can be streamlined with the help of software. Checking stock
manually is very inefficient and prone to errors that can lead to inaccuracies, shortages and overstock, as
well as unidentified damages.

37
• Improving Efficiency at Manufacturing Plants: Up until now, manufacturers have been looking for
effective ways to reduce costs and improve efficiency at their plants. Many of them choose to sacrifice the
quality of their products to reduce their production costs, but this will only reduce their profitability,
because dissatisfied customers will stop buying from them.

• Increasing ROI: Any manufacturer would want to be able to increase their ROI. They would usually
increase their sales or the price of their products. However, these aren’t effective ways, especially when
economic conditions are being erratic, reducing consumer purchasing power.

• Skilled Labor Shortage: Although automation and robotics can help fill the labor gap, human capabilities
will still be needed to analyse and solve problems as well as manage outputs. With the baby boomer
generation entering retirement, the manufacturing industry is facing a looming labor shortage. This is one of
the biggest threats facing the manufacturing sector today.

• Managing Sales Leads: Another challenge often faced by manufacturers is managing and prioritizing
sales leads. Many of them treat their leads in the same way, but this isn’t the right method. Every sales lead
must be treated specifically since they have different characters, preferences, and needs.

• Coping with New Technological Advances: Every year, there are always new technologies on horizon,
which include the IoT, robotics, and manufacturing software. The emergence of these advanced
technologies certainly gets manufacturers overwhelmed; Which ones do I should invest in? Will
implementing this technology be a good decision for my manufacturing business?

• Cyber security: As technology advances, so do the efforts and skills of cyber criminals. While
ransomware was once the most common form of cyber crime, after years of rampant growth it’s been
overtaken by two “new” threats: banking Trojans and cryptominers (according to Checkpoint’s Cyber
Attack Trends: 2018 Mid-Year Report, miners affected 42% of organizations worldwide in the first half of
2018 alone).

• Attracting Qualified Leads: Traditional marketing efforts for manufacturers are proving far less effective
than in the past; trade shows, trade ads and cold calls aren’t working like they used to. In the digital age,
organizations need to do more than put up a website and hope that their best prospects will stumble across it.
Industrial B2B marketers need to make a concerted effort to be found organically through online searches
and provide a wealth of information that demonstrates relevance and expertise. That means they need to
leverage inbound marketing and SEO tactics by creating content that provides answers to potential
customers’ questions and problems.
38
➢ In Service Industry

Prospects of service industries are:

• Information Technology in India is an industry consisting of two major components: IT services and
business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in
1998 to 7.7% in 2017. According to NASSCOM, the sector aggregated revenues of US$160 billion in
2017, with export revenue standing at US$99 billion and domestic revenue at US$48 billion, growing by
over 13%. The United States accounts for two-thirds of India's IT services exports.

• Indian fast food/finger food: While pizzas and burgers and popcorn may find a lot of favour from
Indians across India, and across all age and income groups, the fact remains that almost all regions of India
still have their own local fast food options and outsell the "imports" by a mile.

• Specialty tourism: India is incredibly blessed with one of the most diverse set of options when it comes
to tourism. Fortunately, the perception of India as a tourist destination is also undergoing a very positive
change outside India. Creating specialised options for high-end tourists from the West offers a tremendous
potential, with many segmentation possibilities based on the target market as well as special interests.

• Personal grooming salons: It may surprise some that the biggest organised player for personal grooming
(Regis Corp, US), with focus on hair care, will clock revenues of over $2 billion (over Rs 9,000 crore) from
over 10,000 salons in North America. Yet, in a country with over 1 billion, we have only an isolated
Habib's to talk about.

• Career counselling centers: With over 25 million births per year, and at least 3 million of these likely to
go for studies beyond the 12th grade but having little idea about the job and vocation trends in India and
beyond, this is one sector that is poised for rapid growth.

• Chain of repair and maintenance services for electrical /electronics products: India is seeing massive
increase in the penetration of electrical/information technology products. Yet, the ambient infrastructure, as
well as relatively low-income levels, requires most of these gadgets to be given for repair unlike the more
affluent countries where many faulty appliances/gadgets may just be "written off" by the consumer in view
of high cost of repairs.

Document preparation, imaging, and storage centers: With the large industry (whether public or private)
unlikely to provide an adequate number of jobs for the millions of new entrants annually in the market,

39
small businesses will remain the backbone of job creation and economic growth for India. Many of these
businesses will need a wide range of documentation-related services that are typically done in-house by
larger companies. Kinko's (now a FedEx company) has thrived on this need in the US and other countries.

Challenges of service industry:

• Inadequate Business Development Skills: Business Development is a very important skill, not only to
expand the business but also bring in new customers. Small businesses find it difficult to decide on
expansion plans because they don’t know how to much to invest in expanding the business. They might be
an expert in their field, but they may lack the knowledge to operate business as a whole. Large businesses
take up the business development module but fail to follow it timely.

• The Mark of Sales: Getting those lousy sales calls or meeting the salesman in person has always annoyed
us. Why? Because at that time, we aren’t looking for them. The emails flooding from the service companies
for buying their service pushes away the brand, even if they are one of the best companies. They are surely
not fun reading stuff either. I am not saying this approach is wrong or outdated. If the approach has a plan,
then you can reach the goal without being kicked.

• Expert Advice: Having an expert in the team relieves a lot of pressure. The expertise of the individual
can be used to broaden the possibilities and move forward in the challenges. There are many business
opportunities in the service sector. Understanding these winners and using them in the best practices is what
experts do for business. So, having an expert on board is not a GOOD TO HAVE but a MUST HAVE task
.
• Friendly relations with Close Clients: Amongst our many clients, there are few which are very close or
family to us. It becomes difficult to separate ourselves from being a business operator. Some become close,
after a long period of providing service to them. Hence it is necessary to understand how to approach clients
without breaking the good relation .

• The Hourly Billing Structure: There are some service businesses which work and provide services on an
hourly basis. This system has a major drawback. The employees may take leverage to work for a longer
time just to extend the billing cycle. This way they can charge more for their services. On the other side, the
client doesn’t know how long the task takes to complete. They might feel deceived and would find your
competitor for future engagements.

• Proper Management Takeovers: Small businesses don’t have a proper plan in case the head of the
company becomes incompetent, retires or dies. This creates havoc in the company and all the business dives
40
down. It’s important to pass the knowledge and skill to a proper successor so that the business is saved in
the rainy days. The value is intact to the company’s name; hence every care should be taken to keep up the
work.

• Marketing Layouts: The business focuses more on the current client to give them a positive experience.
This is a great approach because every experience with the client counts and helps to bring new customers.
It’s a good start, but having new clients on board is vital for the business to sustain.

• Listening Skills: Most often companies don’t listen to the customers and fail badly. Listen to your clients
and audience. Ask the question and try to solve their problems. The preference will be given more to you in
this competitive industry if you are a good listener.

• Clear Business Goals: Having clear business goals will not only help the business to grow but also
sustain in the long term. If we are not clear with our goal, how can we expect our audience to understand
the message that we are sharing? You should know what your destination is and learn on the journey.

KEY DRIVERS OF INDUSTRY

 Chemical Industries

 A large population, huge domestic market dependence on agriculture and strong export demand
are the key growth drivers for the industry.
 A global shift towards Asia as the World’s chemicals manufacturing hub..
 Per capita consumption of chemicals in India is lower as compared to western countries, so
immense scope for new investments.
 Rise in GDP and purchasing power generates huge growth potential for the domestic market.
 A focus on new segments such as specialty and knowledge chemicals.
 Skilled science professionals.
 World-class engineering and strong R&D capabilities.

Some of the major markets for chemicals are North America, Western Europe, Japan and emerging
economies in Asia and Latin America. The US consumes approximately one fifth of the global chemical
consumption whereas Europe is the largest consumer with approx. half the consumption. The US is the
largest consumer of commodity chemicals whereas Asia pacific is the largest consumer of agrochemicals
and fertilizers.

41
➢ In Manufacturing industry
Some of the important key drivers of Manufacturing Industries are:

• Technological Development
Technological development plays an important part to influence the industrial productivity. “The
application of motive power and mechanical improvements to the process of production has accelerated the
peace of industrialisation to an unprecedented degree, and has given us the vision of the vast and
unexplored frontiers that still lie ahead of us in the realm of applied science and technology.” The
technological factors include degree of mechanisation, technical know-how, product design, etc.
Improvement in any of the technological factors will contribute towards the increase in industrial
productivity. In India, application of mechanical power, introduction of semi-automatic and automatic
machines, improvements in the production processes, better Morale and Productivity integration of
production processes and higher degree of specialisation have contributed a lot towards the increases in
industrial productivity
.
• Quality of Human Resources:
Manpower plays a significant role. In raising industrial productivity in most of the industries. If the labour
force is not adequately qualified and/or is not properly motivated, all the steps taken to increase the
industrial productivity will have no result the employees’ performance and attitudes have an immense effect
on the productivity of any industrial unit. Three important factors which influence the productivity of labour
area (a) ability of the worker, (b) willingness of the worker, and (c) the environment under which he has to
work.

• Availability of Finance:

The ambitious plans of an industrial unit to increase the productivity will remain mere dreams if adequate
financial resources are not available to introduce technical improvements and give appropriate training to
the workers. The greater the degree of mechanisation to be introduced, the greater is the need for capital.
Capital will also be required for investment in research and development activities, advertisement campaign,
better working conditions to the workers, up-keep of plant and machinery, etc

• Managerial Talent:
The significance of managerial talent has increased with the advancement in technology. Professional
managers are required to make better use of the new technological development. Since the modern

42
enterprises are run on a large scale, the managers must possess imagination, judgment and willingness to
take imitative. The managers should be devoted towards their profession and they should understand their
social responsibilities towards the owners of the business, workers, customers, suppliers. Government, and
the society this is essential if the managers want to manage their organisations effectively. The managers
should have conceptual, human relations and technical skills in order to increases the productivity of the
enterprise.

• Government Policy:
The industrial policies of the Government have an important impact on the industrial productivity; The
Government should frame and implement such policies which create favourable conditions for saving,
investment, flow of capital from one industrial sector to another and conservation of national resources.
Certain industries may be granted protection, and incentives may be given to the others for the development
in view of the national interest. The Government should flow the taxation policy which does not discourage
the further expansion of business. It is also the duty of the Government to check the growth of monopolistic
enterprises so that the interest, of the consumers and the workers are not jeopardise.

• Natural Factors:
The natural factors such as physical, geographical and climatic exercise considerable impact on the
industrial productivity. The relative importance of these factors depends upon the nature of the industry,
goods and services produced and the extent to which physical conditions are controlled.
“The geological and physical factors play a very dominant role in determining the productivity of extractive
industries likes coal-mining in which the physical output per head is greatly influenced by the depth of the
coal-mines, the thickness of the coal seams, the topography of the region and the quality of coal available.
In other industries like tailoring, grain-milling, hosiery, soap-making, confectionary, medium and coarse
cotton manufacturing, etc., the geographical, geological and physical factors exercise little influence on
productivity”.

➢ In Service Industry

Some of the key drivers of Service Industry are:

• Government Policies: It is Govt. which makes mandatory for price levels, distribution strategies, defining
procedure attributes. Another important action taken by the Govt.‟s is
“Privatization” means the policy of transform companies. The transformation of such operations like
telecoms, airlines has led to restructuring cost cutting and more market focused.

43
• Social Changes: Now a day there is a drastic change, two members are working, which requires to hire
individuals to perform tasks that used to be performed by a house hold member.

• Business Trends: Many professional associations have been forced by Govt. to remove long-standing
bars on adv and promotional activities. Franchising has become wider spread in many service industries.
Licensing of independent entrepreneurs to produce and sell a branded service according to tightly specified
procedure.

• Advances in IT: Changes come from the integration of computers and telecommunication. More
powerful software enables firm to create databases that combine information about customers with details
of all their transaction, so that they can be used To predict new trends, segment the market, new marketing
opportunities. The creation of wireless networks and transfer of electronic equipment’s such as cell phones
to lap tops and scanners, to allow sales and customer service personnel to keep in touch.

• Internationalisation and globalisation: A strategy of international expansion may be driven by a sector

for new markets or by the need to respond to existing customers who are traveling abroad in greater
numbers. When companies set up operations in other countries, they often prefer to deal with just a few
international suppliers rather than numerous local firms. The net effect is to increase competition and to
encourage the transfer of innovation in both products and processes from country to country.

44
 CHAPTER - 3
REVIEW OF LITERATURE

45
 BREIF THEORETICAL CONSTRUCT RELATED TO THE PROBLEM

ORANISATIONAL CULTURE
Organizational culture is a system of shared assumptions, values, and beliefs that governs how people
behave in organizations. The culture of an organization provides boundaries and guidelines that help
members of the organization know the correct way to perform their jobs. The culture of an organization is
ingrained in the behavior of the members of an organization and is very difficult to change. For this reason
culture can be thought of as the personality of the organization. The unique culture of an organization
creates a distinct atmosphere that is felt by the people who are part of the group, and this atmosphere is
known as the climate of the organization. We define organizational climate as how members of
an organization experience the culture of an organization.

Organization culture is widely considered to be one of the most significant factors of Organization variables.
Every organization has it unique organization culture to differentiate them from others and the culture
reflects the behavior of employees in organization. The challenge of today’s managers is managing diverse
cultures work force employees from which have significant influence on the behavior at work, managerial
practices, organizational effectiveness and efficiency. Despite the importance to researchers, managers, and
policy makers of how organization culture contributes to organization variables, there is uncertainty and
debated about what we know and don’t know. A review of the literature reveals that studies examining the
association between organization culture and organization variables are divergent in how they conceptualize
key constructs and their interrelationships. The purpose of this study is to increase the knowledge base on
organization cultures and their relation with other organizational variables. Our analysis provides a
blueprint to guide future research and facilitates knowledge accumulation and creation concerning the
organizational performance impacts of organization culture. Upon examining numerous Literature s, it is
found that organization cultures relationship with other organizational variables like commitment,
satisfaction, leadership, organizational performance and employee turnover are established by this literature
review study. Research reveals that possession of similar norms and values by the organization and its
employees will improve the performance of the organization towards achieving the goals of the
Organization.

Wagner (2005) is of view that, the shared perception of the organization’s members on the life within the
organization which creates a bond amongst the members. This affects their perception of their self and their
work. The platform for culture is provided by values, norms and beliefs. The organization culture is created
by:
(1) The norms and practices taught by the leaders of the organization in the past (Schein, 1990)

46
(2) The critical incidents in the organizations history teaches what behavior is desired and what is not
desired (Schein, 1990).
(3) The necessity for ensuring working relationships amongst members of the organization
(Furnham and Gunter,1993).
(4) The environment in which the organization is embedded while analyzing culture within
the organizations the following classifications have been made:

(1) According to Harrison (1972) Orientation towards Power, People, Task and Role forms.
(2) Hofstede (1980) Individualism vs. Collectivism, Uncertainty Avoidance, and Power Distance are
amongst the cultural dimensions.
(3) Schein (1985) Support, Achievement, Role and Power Cultures form the classification provided.
(4) Denison (2004) Consistency, Adaptability, Mission and Involvement are the traits on which the
Denison Model.
(5) Lau and Idris (2001) Training and Development, Communication and Rewards are the cultural
dimensions.
(6) Cameron and Quinn (1999) Hierarchy, Adhocracy, Market and Clan form the classification of Culture.

ORGANISATIONAL CULTURE THEORIES

The assumption that organizational culture affects job satisfaction entails that different types of
organizational culture create different levels of job satisfaction in organization members. Therefore,
empirical investigation of the influence of organizational culture requires that we identify the different types
of organizational culture and determine the extent to which the level of employee job satisfaction is
associated with the type of organizational culture that predominates in an organization. Thus, the first step
is to identify the different types of organizational culture.

The literature includes many classifications of organizational culture (Cameron & Quinn 2006; Balthazard,
Cooke, & Potter 2006; Denison 2003; Trompenaars 1994; Deal & Kennedy 1982; Handy 1991). The
classifications of different types of organizational culture are distinguished from each other based on the
categorization dimensions employed: external versus internal focus and flexibility versus stability (Quinn &
Cameron 2006; Denison 2003); the needs and orientation of the people within the organization (Balthazard,
Cooke, & Potter 2006); the level of risk and rapidity of feedback from the market (Deal & Kennedy 1982);
and egalitarianism versus a hierarchical distribution of power and people-oriented versus task-oriented
(Trompenaars 1994; Handy 1979). To determine the influence of the type of organizational culture on job
satisfaction, the classification of the culture should be based on characteristics associated with employee
satisfaction, such as the Human Synergetics classification (Balthazard, Cooke, & Potter 2006), which is
based on the needs and orientation of people within the organization, or Handy’s (1991) and Trompenaars'

47
(1994) classifications, which employ similar characteristics involving norms related to the distribution of
power and norms related to a people orientation or task orientation. In the present study we employ Handy’s
classification because the questionnaire used to assess the type of organizational culture, which was based
on Harison's (1979) version of the questionnaire, was available to the authors.
Handy’s classification (1991) categorizes organizational cultures based on two dimensions. The first
dimension involves the values and norms regarding the distribution of power within an organization. Some
organizational cultures favour an unequal or hierarchical distribution of power, while others adopt values
and norms that foster an equal or egalitarian distribution of power. Another dimension distinguishing
organizational cultures in Handy's classification relates to the predominant focus of the organization. Every
organization involves both work (task) and social (people) components. Organizational cultures differ with
respect to which component predominates. Therefore, we can identify cultures with values and norms that
are predominantly people-oriented and those that are predominantly task-oriented. Simultaneously applying
both dimensions generates a matrix of four types of organizational culture.

PEOPLE-ORIENTED

Power culture People culture

HIERARCHICAL EGALITARIAN

Role culture Task culture

TASK-ORIENTED

Figure 3.1. Handy’s classification of organizational culture

Source: Handy, C. (1991). Gods of management: the changing work of organizations. London: Business
Books

 Power culture combines an orientation to people with an unequal distribution of power within the
organization. The main feature of a power culture is the orientation towards the leader. In this culture a
metaphor describing the organization is the family, in which the leader is a ‘paterfamilias’ who takes
care of all the members, who in turn obey him unquestioningly. Because the leader personifies the
organization’s work, everything receives his personal touch and depends on his leadership style and
competence. The organization tends to be informal and relationships between its members tend to be
very close.

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 Role culture is the culture exhibited by bureaucratic organizations, which combine a task orientation
with an unequal distribution of power. In role culture the organization is perceived as a goal-oriented
structure regulated by formal rules and procedures. An appropriate metaphor for an organization with
this culture is a machine. Because role culture is depersonalized, the basic elements of an organization
are impersonally established roles rather than persons as individuals.

 Task culture embodies a system of values and norms of behaviour in which success and achievement
are the primary goals of the organization. This culture combines a task orientation with an egalitarian
distribution of power. Because task culture is based on the premise that the organization exists to
perform certain tasks, everything is oriented towards the work that needs to be performed, with
everything subordinated to that goal. In this type of culture, values such as autonomy, competency,
achievement, and flexibility dominate.

 People culture combines an orientation towards people with an egalitarian distribution of power. It is
based on the premise that the organization exists because of its members. Its main purpose is to enable
its members to achieve their individual goals and interests. Because power in a people culture is widely
distributed, this type of culture is the most ‘democratic’.

The next research step requires the operationalization of job satisfaction. This construct is most frequently
operationalized following Locke's premise that job satisfaction is based on the individual’s perception of
the extent to which their job provides what they value (Locke 1969). Therefore, job satisfaction is
operationalized as the difference between employee expectations regarding specific job characteristics and
their satisfaction with these features. The greater the gap between the importance of a job characteristic and
satisfaction with the job characteristic, the lower the job satisfaction (and vice versa). In addition, to
operationalize job satisfaction it is critical to identify the job characteristics that employees evaluate as
informing their attitude towards work. Previous studies have found that the job characteristics employees
consider include the work itself, supervision, co-workers, pay, and opportunities for promotion (Kinicki etal.
2002).
JOB SATISFACTION

Job satisfaction has become the pillar on which performance of employees is hinged. The most important
goal among others of an organization is to exhaust the possibilities of getting the best employee
performance in order to accomplish set objectives.

49
According to Vroom (1964) Job satisfaction is an orientation of emotions that employees possess towards
role they are performing at the work place. Job Satisfaction is the essential component for employee
motivation and encouragement towards better performance.

Hoppok & Spielgler (1938) defines job satisfaction as the integrated set of psychological, physiological and
environmental conditions that encourage employees to admit that they are satisfied or happy with their jobs
Job satisfaction is any combination of psychological, physiological and environmental circumstances that
cause a person truthfully to say I am satisfied with my job. According to this approach although job
satisfaction is under the influence of many external factors, it remains something internal that has to do with
the way how the employee feels. That is job satisfaction presents a set of factors that cause a feeling of
satisfaction. Job satisfaction represents a combination of positive or negative feelings that workers have
towards their work. Meanwhile, when a worker employed in a business organization, brings with it the
needs, desires and experiences which determinate s expectations that he has dismissed. Job satisfaction
represents the extent to which expectations are and match the real awards. It is closely linked to that
individual's behaviour in the work place.

Job satisfaction is a worker’s sense of achievement and success on the job. It is generally perceived to be
directly linked to productivity as well as to personal well-being. Job satisfaction implies doing a job one
enjoys, doing it well and being rewarded for one’s efforts. Job satisfaction further implies enthusiasm and
happiness with one’s work. Job satisfaction is the key ingredient that leads to recognition, income,
promotion, and the achievement of other goals that lead to a feeling of fulfillment. Job satisfaction can be
defined also as the extent to which a worker is content with the rewards he or she gets out of his or her job,
particularly in terms of intrinsic motivation. The term job satisfaction refers to the attitude and feelings
people have about their work. Positive and favourable attitudes towards the job indicate job satisfaction.
Negative and unfavourable attitudes towards the job indicate job dissatisfaction.

JOB SATISFACTION FACTORS

Job satisfaction is related to the psychology of an employee. A happy & content employee at a job is always
motivated to contribute more. On the other hand, a dissatisfied employee is lethargic, makes mistakes &
becomes a burden to the company. The elements & factors which contribute to job satisfaction are:

 Compensation & Working conditions: One of the biggest factors of job satisfaction are the compensation
and benefits given to an employee. An employee with a good salary, incentives, bonuses, healthcare options
etc. is happier with their job as compared to someone who doesn’t have the same. A healthy workplace
environment also adds value to an employee.

50
 Work life balance: Every individual wants to have a good workplace which allow them time to spend with
their family & friends. Job satisfaction for employees is often due a good work life balance policy, which
ensures that an employee spends quality time with their family along with doing their work. This improves
the employee's quality of work life
.
 Respect & Recognition: Any individual appreciates and feels motivated if they are respected at their
workplace. Also, if they are awarded for their hard work, it further motivates employees. Hence recognition
is one of the job satisfaction factors. Job security: If an employee is assured that the company would retain
them even if the market is turbulent, it gives them immense confidence. Job security is one of the main
reasons for job satisfaction for employees.

 Challenges: Monotonous work activities can lead to dissatisfied employees. Hence, things like job
rotation, job enrichment etc can help in job satisfaction of employees as well.

 Career Growth: Employees always keep their career growth part as a high priority in their life. Hence, if a
company helps groom employees and gives them newer job roles, enhances the job satisfaction as they
know they would get a boost in their career.

Fig 3.2: Job satisfaction factors

IMPORTANCE OF JOB SATISFACTION

A satisfied employee is always important for an organization as he/she aims to deliver the best of their
capability. Every employee wants a strong career growth and work life balance at workplace. If an
employee feels happy with their company & work, they look to give back to the company with all their
efforts. Importance of job satisfaction can be seen from two perspectives i.e. from employee and employer
perspective:
For Employees: Job satisfaction from an employee perspective is to earn a good gross salary, have job
stability, have a steady career growth, get rewards & recognition and constantly have new opportunities.

51
For Employers: job satisfaction for an employee is an important aspect to get the best out of them. A
satisfied employee always contributes more to the company, helps control attrition & helps the company
grow. Employers needs to ensure a good job description to attract employees and constantly give
opportunities to individuals to learn and grow. The positive effects of job satisfaction include:

 More efficiency of employees of workplace if they are satisfied with their job.
 Higher employee loyalty leading to more commitment.
 Job satisfaction of employees eventually results in higher profits for companies.
 High employee retention is possible if employees are happy.

JOB SATISAFACTION THEORIES

Job satisfaction theories have a strong overlap with theories explaining human motivation. The most
common and prominent theories in this area include:
Maslow’s needs hierarchy theory ; Herzberg’s motivator-hygiene theory; the Job Characteristics .

MASLOW’S NEEDS HIERARCHY THEORY

Abraham Maslow (1954) suggested human need from a five-level hierarchy ranging from physiological
needs, safety, belongingness and love, esteem to self-actualization. Based on Maslow’s theory, job
satisfaction has been approached by some researchers from the perspective of need fulfillment. Although
commonly known in the human motivation literature, Maslow’s needs hierarchy theory was one of the first
theories to examine the important contributors to job satisfaction. The theory suggests that human needs
form a five-level hierarchy . Maslow’s hierarchy of needs postulates that there are essential needs that need
to be met first (such as, physiological needs and safety), before more complex needs can be met (such as,
belonging and esteem).

fig 3.3: Maslow’s needs hierarchy theory

52
HERZBERG’S MOTIVATOR-HYGIENE THEORY
Herzberg’s motivator-hygiene theory suggests that job satisfaction and dissatisfaction are not two opposite
ends of the same continuum, but instead are two separate and, at times, even unrelated concepts.
‘Motivating’ factors like pay and benefits, recognition and achievement need to be met in order for an
employee to be satisfied with work. On the other hand, ‘hygiene’ factors (such as, working conditions,
company policies and structure, job security, interaction with colleagues and quality of management) are
associated with job dissatisfaction

Fig 3.4: Herzberg’s motivator-hygiene theory

An Overview of Earlier Studies

Due to the influence of the sociological theories, many of the organizational researchers in 1940s and 1950s
had focused on the structural/sociological aspects of the organizations. Organizational culture research can
be traced back to the late 1930s (Schneider, 2011), when Lewin, Lippitt, and White (1939) studied
aggressive behavior in groups under various conditions of social climate. The construct was initially
constructed on a molar level, focusing on various aspects of people’s experiences at work. Examples
include: role stress and lack of harmony; job challenge and autonomy; leadership support and facilitation;
and work group cooperation, friendliness, and warmth ,degree of risk taking, warmth, support, and
innovativeness, affective; cognitive; and instrumental and up to 17 dimensions identified by Patterson and
colleagues. Whereas the early research was mainly focused on perceptions of individual workers and
individual respondents’ behavior, as the field developed the focus switched towards shared, collective
perceptions and organizational outcomes (Schneider, 2011).

Organizational climate is comprised of mixture of norms, values, expectation, policies, procedures that
influences work motivation, commitment and ultimately, individual and work unit performance. Positive
climates encourage, while negative climate inhibit discretionary effort. Organizational climate refers to the
quality of working environment. If people feel that they are valued and respected within organization, they

53
are more likely to contribute positively to the achievement of business outcomes. Creating a healthy
organizational culture requires attention to the factors which influence employees perceptions including the
quality of leadership, the way in which decisions are made and weather the efforts of employees are
recognized. This chapter deals with introduction of the operational terms, definitions and theoretical
concepts related to the topic of research.
Earlier researcher defined organizational climate as a characteristics of the organization Number of
definitions of organizational culture have been given by the experts in their studies although a precise and
unitary definition is awaited, few among them are quoted below:
DEFINITION
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the
values that guide member behavior, and is expressed in member self-image, inner workings, interactions
with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are considered valid.

Forehand and Von Gilmer (1964) One of the earliest definitions of organizational climate is –
“organizational climate is comprised of qualities that discriminate one firm from another, that endure over
time, and help to control actions of employees within the organization.” He also defined climate as set of
characteristics or attributes through which an organization can be recognized.

Tagiuri, Litwin, and Barnes (1968) Subsequent research build upon Forehand and Von Gilmer by adding
the notion that climate should be described as the set of qualities that encompass the organization of
inquiry.

Gerber(2003) and Moran and Volkwein (1992) Organizational climate is defined as the shared
perceptions, feelings and Attitudes that organizational members have about the fundamental elements of the
organization, which reflect the established norms, values and attitudes of the organization’s culture and
influences individuals’ behavior positively or negatively. Beyond this, several researchers have proposed
other definitions that place more weight on the environment, including things such as guidelines, actions,
and the atmospherics, while another group insists that leader and manager behavior are most important.
Organizational climate is made up of perceived organizational properties intervening between
organizational characteristics and behavior. Organizational climate is a set of attitudes and expectations
describing the organization’s static characteristics and behavior outcome and outcome contingencies.
Individual perceptions of their organization are affected by characteristics of the organization and the
individual.

54
EVOLUTION OF ORGANIZATION CULTURE: Classical organization theory dominated management
thinking during the first half of the twentieth century. Its organization can be traced back to the ideas of
Adam smith who is the wealth of nations showed, as early as 1776, how division of labour could improve
productivity of pin markers a hundred fold or more. However it was only in the early1900’s that men like
Fredrick .W.Taylor, Henry Fayol and Max Weber developed the full philosophy of the classical theory. The
classical approach to organization design was based on
a) Full decision of labour
b) Rigid hierarchy and
c) Standardization of labour to reach its objectives.
The idea was to lower costs by using unskilled repetitive labour that could be trained easily to do a small
part of a job (Taylor, 1911). The said approach did result in substantial increase in economic productivity.
As it turned out, however, these gain often involved considerable human cost. Because of excessive
division of labour and over dependence on rules, procedures and hierarchy, the workers became isolated
from his fellow workers and felt alienated. The result was higher turnover, absenteeism and discipline in
quality of products.it took the academicians and practitioners of management sometimes to recognize the
nature and severity of the problem. Roethlisberger and Dickson offered a behavioral interpretation of
management based on their findings from the famous Hawthorne studies. They stressed importance of
individual differences, informal group interactions and participation in decision-making. The sum total of
these and many other such activities creates an internal environment within each organization, which
accounts for its uniqueness and identify members of an organization who work within and continuously
influenced by this internal environment which is also called organizational culture or organizational
climate(Badin,Irwin1974). Each organization deals with its members in a variety of ways in the course of
their employment to obtain their co-operation in achieving organizational objectives. The management of
an organization must satisfy various needs of the employees, through action such as allocation of resources,
rewards and punishment, pattern of communication, mode of decision making, style of leadership and so on.
An organization influences the feelings, attitudes and behaviors of its members. In the course of time, such
actions by the management acquire an enduring quality and result I creating unique organizational culture
ore climate.

The Development of Organizational Climate: Organizational climate has a long history in industrial and
organizational psychology and organizational behavior. Its root lies in the work of Kurt Levin, in the late
1930’s, in which the concept of psychological climate was initially addressed. In order to explain the
concept of psychological climate was initially addressed. In order to explain the concept of psychological
climate, Lewin identified certain elements that had to be taken into account. These included goals, stimuli,
needs, social relations, friendly or hostile environment or the amount of freedom in an organization (Litwin
and Stringer, 1968). According to Lewin, the climate acts as an essential functional link between the person

55
and the environment. This view was demonstrated in a study by lewin, Lippitt and white in which climate
exhibited a more powerful influence on individuals than previously acquired behavior tendencies and in
addition was able to change the observed behavior patterns of group members (Litwin and stringer, 1968).
Subsequent to lewin’s study, several authors attempted to build on the climate theory in an effort to
understand the concept of climate in organizations . Most notable of these was the work of Kahn and his so-
called “role set theory “, which represented an alternative to the climate model. This theory posits that
managers cam influence the perceptions that workers have of their roles by either changing group
membership or directly influencing expectations through training (Litwin and stringer, 1968).

The Etiology of Organizational Climate: According to Morgan and Volkwein (1992), there is a lack of
understanding of how climates emerge or formed in an organization. Schneider and Reichers (1983)
contend that an explanation of how climates are formed will provide a deeper understanding of the concept,
but will in addition, lead to further conceptual and methodological progress. A key question posed by
Schneider and Reichers (1983) is how it happens that individuals who are presented with numerous stimuli
at work develop relatively homogenous perception of these stimuli, and in addition, attach similar meanings
to aspects of organizational life. In order to answer this question, four approaches to the formation of
climate will be discussed. These include:-
1. The structural approach.
2. The perceptual approach
3. The interactive approach.
4. The cultural approach.

The origin and the use of the specific term found to be as old as the original concept of management itself.
However over a long period of time there appeared various frameworks, conceptual as well as operational,
different sets of dimensions, techniques of measurements, and research findings that are highly diverse and
often contradictory. The fundamental basis of distinguishing between these is that they have very
contrasting impacts on implications for behavior (Meyer, 2004). This behavior in turn has very important
implications for the work environment and subsequent performance. Extant research indicates that affective
commitment is strongly associated with not only job performance, but also with organizational citizenship,
and often is a precursor to normative commitment. The essence of conceptualization around employee
motivation is thus about variables of ‘form’ ‘foci’ and of bases. Recent work has tried to integrate
commitment and motivation theories. This is to post that there is a recursive and mutually enabling
relationship between the two (Johnson and Yang, 2010). The contribution of this research has been to
embed commitment as a subset of motivation and explain how “employees’ relationship with social foci
influences behavior relevant to the foci” (Meyer 2004: 1003). Such integration provides for levers to
augment commitment by providing variables such as goal choice, self-efficacy and goal directedness. It is

56
particularly useful in developing the directional paradigm that is associated with commitment towards tasks
or ‘foci’ (Johnson and Yang, 2010; Lawson and price, 2003).

UNIQUENESS OF RESEARCH STUDY

Review of earlier studies on influence of organisational culture on job satisfaction helped in the
generation of idea, formulation of hypotheses and selection of various tools for analysis and to arrive at
meaningful conclusions. There are many studies available on influence of organisational culture on job
satisfaction No doubt, all these studies have stimulated and encouraged to chalk out a design for this study,
which encompasses a wider field than any of the studies referred to this topic influence organisational
culture on job satisfaction a new attempt which is not made so far in chemical industry. Hence an attempt is
made by the researcher to study the influence of organisational culture on employee job satisfaction at
HOCL, Kochi.

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 CHAPTER-4
METHDOLOGY OF THE STUDY

58
 RESEARCH APPROACH AND DESIGN
Research methodology is nothing but systematic investigation and study of sources and materials. It
establishes facts and helps in making conclusions. Data are facts, figures and other relevant materials, past
and present, serving as bases for study and analysis. Without an analysis of factual data no specific
inferences can be drawn on the questions under study.inferences based on imagination or guesswork cannot
provide correct answers to research question the relevance, adequacy and reliability of data determine the
quality of findings of a study . Research design is the basic framework, which provides guidelines for
research process. It is a map or blue print according to which the research is to be conducted. The research
design signifies the methods of data collection and analysis. The Research Design which is used in this
study is Descriptive Research Design, which comes under Conclusive Research Design. In this study, it is
used to describe characteristics of a population or phenomenon being studied, which is designed to depict
the participants in an accurate way. Descriptive Research Design is adopted because the job satisfaction
level of factory employees has to be studied in depth.

SOURCES OF ONLINE DATA

 WIKIPEDIA
Wikipedia is a multilingual online encyclopedia created and maintained as an open collaboration project by
a community of volunteer editors, using a wiki-based editing system. It is the largest and most popular
general reference work on the World Wide Web, and is one of the 20 most popular websites ranked by
Alexa, as of March 2020. It features exclusively free content and no commercial ads and is owned and
supported by the Wikimedia Foundation, a non-profit organization funded primarily through donations.
Wikipedia was launched on January 15, 2001, by Jimmy Wales and Larry Sanger. Sanger coined its name,
as a portmanteau of "wiki" (the Hawaiian word for "quick") and “encyclopedia". Initially an English-
language encyclopedia, versions of Wikipedia in other languages were quickly developed. With 6.1 million
articles, the English Wikipedia is the largest of the more than 300 Wikipedia encyclopedia's. Overall,
Wikipedia comprises more than 53 million articles attracting 1.5 billion unique visitors per month.

 RESEARCH GATE
Research Gate is a European commercial social networking site for scientists and researchers to share
papers, ask and answer questions, and find collaborators. According to a 2014 study by Nature and a 2016
article in Times Higher Education, it is the largest academic social network in terms of active users,
although other services have more registered users, and a 2015–2016 survey suggests that almost as many
academics have Google Scholar profiles. While reading articles does not require registration, people who

59
wish to become site members need to have an email address at a recognized institution or to be manually
confirmed as a published researcher in order to sign up for an account. Members of the site each have a user
profile and can upload research output including papers, data, chapters, negative results, patents, research
proposals, methods, presentations, and software source code. Users may also follow the activities of other
users and engage in discussions with them. Users are also able to block interactions with other users. The
site has been criticized for sending unsolicited email invitations to co-author’s of the articles listed on the
site that were written to appear as if the email messages were sent by the other co-author’s of the articles (a
practice the site said it has discontinued as of November 2016 ) and for automatically generating apparent
profiles for non-users who have sometimes felt misrepresented by them. A study found that over half of
the uploaded papers appear to infringe copyright, because the authors uploaded the
publisher's version.

 GOOGLE SCHOLAR
Google Scholar is a freely accessible web search engine that indexes the full text or metadata of scholarly
literature across an array of publishing formats and disciplines. Released in beta in November 2004, the
Google Scholar index includes most peer-reviewed online academic journals and books, conference papers,
theses and dissertations, preprints, abstracts, reports, and other scholarly literature, including court opinions
and patents. While Google does not publish the size of Google Scholar's database, scientometric researchers
estimated it to contain roughly 389 million documents including articles, citations and patents making it the
world's largest academic search engine in January 2018. Previously, the size was estimated at 160 million
documents as of May 2014. An earlier statistical estimate published in PLOS ONE using a Mark and
recapture method estimated approximately 80–90% coverage of all articles published in English with an
estimate of 100 million. This estimate also determined how many documents were freely available on the
web.
 CORPORATE WEBSITES
The corporate website is the official online representation of the company. The corporate site contains
comprehensive information about the company itself, about the scope of its activities, products, and
services offered. Usually, the corporate website has a catalog of products and a list of additional services – a
forum, polls, newsletters and the like. The corporate website allows you to make calculations online, sell
products, conduct marketing research and promotions, send the news to visitors, get customer feedback,
organize voting and much more. Corporate websites which are used for this research study is:
hoclindia.com

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 SAMPLING DESIGN
The sampling technique used in this study is ‘Simple Random Sampling’. Each individual among the
factory employees is chosen randomly and entirely by chance, such that each individual has the same
probability of being chosen at any stage during the sampling process. This sampling is selected because it is
fast, inexpensive, easy sand the subjects are readily available. The sample size for this study is determined
using the sample size calculator at a confidence level of 95% and a confidence interval of 10 for a
population of 750. In this research, the researcher of the present study approached 100 employees of HOCL,
KOCHI and the data is obtained from 84 respondents, which is considered as the sample size.
 SCALING
The scaling used for this study are ‘Nominal scale’ and ‘Five Point Likert scale’. In this study, nominal
scales are used for age, gender etc. The Likert scale is used to represent employee’s attitudes towards the
questions and it allow them to express how much they agree / disagree with a particular statement. The
instruments developed consist of 25questions which is expressed in five point Likert scale (Values 5-
strongly agree, 4- agree, 3- neutral, 2– disagree, 1–strongly disagree).

 DATA COLLECTION
In this study, data is collected from the employees using Questionnaire and it is the Primary data. The
employee feedback on job satisfaction as well as organisational culture has been obtained by the use of
questionnaire. The findings of the study depend purely on the responses given by the employees. However
adequate care has been taken to collect unbiased data.
In this study, Secondary data is collected from published source. For identifying the various factors related
to job satisfaction and work environment, the secondary data is obtained from text books, internet, journals
etc.

DATA ANALYSIS TOOLS

 PERCENTAGE ANALYSIS: Percentage analysis shows the entire population on term of percentage.
It reveals the number of belongings in a particular category or the number of people preferring a
particular manner in interpreted in forms of percentage. It refers to special kind of rates percentage are
used in making comparisons between two or more series of data. A percentage is used to determine
relationship between the series.

 MEAN: Mean is used to study the perception of factory employees towards work environment as well
as to determine the job satisfaction level among the factory employees.

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 CORRELATION: A correlation is a statistical measure of the relationship between two variables. The
measure is best used in variables that demonstrate a linear relationship between each other. The
variables tend to move in opposite directions (i.e., when one variable increases, the other variable
decreases). 0: No correlation. Correlation is used for finding whether there is any relationship between
work environment and job satisfaction.

 ANOVA: ANOVA is a particular form of statistical hypothesis testing heavily used in the analysis of
experimental data. A test result (calculated from the null hypothesis and the sample) is called
statistically significant if it is deemed unlikely to have occurred by chance, assuming the truth of the
null hypothesis. A statistically significant result, when a probability (p-value) is less than a threshold
(significance level), justifies the rejection of the null hypothesis, but only if the a priori probability of
the null hypothesis is not high. Anova is Analysis of variance, which is used for finding whether there
is any difference in job satisfaction as well as work environment based on demographic variables.

REPORT STRUCTURE
Chapter 1: Introduction – Statement of the Problem
Introduction chapter gives an idea about the study, the background of the study, statement of the problem,
relevance & scope of the study and the objective of the study.

Chapter 2: Industry Profile

It gives an overview of manufacturing industry; it deals with business process of the industry, market
demand and supply, contribution to GDP, revenue generation, level and type of competition, pricing
strategies in the industry, prospects and challenges of the industry and the key drivers of the industry.

Chapter 3: Review of Literature

In this chapter all the theoretical details of organisational culture and job satisfaction is being
discussed in detail.

Chapter 4: Methodology of the Study

In this chapter it deals with the methodology used by the researcher. The research approach and design,
sources of online data, sampling design, data analysis tools, report structure, limitation of the study.

Chapter 5: Data Analysis, Interpretation & Interference

This chapter deals with the analysis of the data collected and also their interpretation and
inference.

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Chapter 6: Findings of the Study
This chapter deals with the findings of the study.

Chapter 7: Conclusions
This chapter deals with the conclusions of the report.

LIMITATION OF THE STUDY

 The data was collected through questionnaire and so the information is subjected to the bias of the
individuals.
 The findings of the study solely based on the information provided by the respondents.
 Time factor can be considered as a main limitation.
 Due to covid-19 the data collection was very difficult.

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 CHAPTER-5
DATA ANALYSIS, INTERPRETATION & INFERENCE

64
GENDER WISE CLASSIFICATION OF RESPONDENTS

Particulars Frequency Percentage

Male 45 54

Female 39 46

Total 84 100

Table 5.1: Gender wise classification of respondents

Interpretation: The table shows that 54% of the respondents are male end 46% of the respondents are
female.

GENDER WISE CLASSIFICATION OF RESPONDENTS

Fig 5.1: Gender wise classification of respondents

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 AGE OF RESPONDENTS

Age Frequency Percentage

20-30 6 7.1

31-40 15 17.9

41-50 42 50.0

Above 51 21 25.0

Total 84 100

Table5.2: Age of respondents

Interpretation: The table shows that, 50% respondents are in the age group 41-50, 25% are in age group

Above 51, 18% are in age group 31-40 and only 7% are in the age group Below 30

AGE OF RESPONDENTS

Figure 5.2: Age of respondents

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EDUCATION OF RESPONDENTS

Education Frequency Percentage

SSLC 13 15.5

ITI 37 44.0

Plus two 21 25.0

UG 11 13.12

PG And Above 2 2.4

Total 84 100

Table 5.3: Education of respondents

Interpretation: The table shows that, 44% respondents are ITI, 25% are Plus 2, 16% are SSLC, 13% are
UG and only 2% are PG and above.

EDUCATION OF RESPONDENTS

Figure 5.3: Education of respondents

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5.4 TOTAL YEARS OF WORK EXPERIENCE OF RESPONDENTS

Total year’s of work Frequency Percentage

experience of
respondents

2-5 year’s 7 8.3

6-10 year’s 15 17.9

Above 10 year’s 62 73.8

Total 84 100

Table 5.4: Total years of work experience of respondents

Interpretation: The table shows that, 74% respondents have Above 10 years, 18% have 6-10 years and
only 8% have 2-5 years of work experience.

TOTAL YEAR’S OF WORK EXPERIENCE OF RESPONDENTS

Figure 5.4: Total years of work experience of respondents

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 PERCEPTION OFEMPLOYEES TOWARDS ORGANISATIONAL CULTURE

N Mean Std. Deviation

Organisational Culture 84 3.7632 .32119

Valid N (list wise) 84

Table 5.5: Perception of employees towards organisational culture

Interpretation: Table 5.5 represents the mean value of perception of employees towards work
organisational culture. Here we infer that the mean value of organisational culture is 3.76 and standard
deviation is 0.32. Thus the lower and upper limits of satisfaction towards organisational culture are 2.68
(3.0 - 0.32) and 3.32 (3.0 + 0.32). As mean value of 3.76 falls above 3.32, we can understand that the
satisfaction level of employees towards organisational culture is high.

JOB SATISFACTION LEVEL AMONG THE EMPLOYEES

N Mean Std. Deviation

Job Satisfaction 84 3.5255 .34863

Valid N (list wise) 84

Table 5.6: Job Satisfaction level among the employees

Interpretation: Table 5.6 represents the mean value of job satisfaction level among the employees. Here
we infer that the mean value of job satisfaction is 3.53 and standard deviation is 0.35. Thus the lower and
upper limits of job satisfaction are 2.65 (3.0 - 0.35) and 3.35 (3.0 + 0.35). As mean value of 3.53 falls above
3.35, we can understand that the job satisfaction level among the employees is high.

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 RELATIONSHIP BETWEEN ORGANISATIONAL CULTURE AND JOB SATISFACTION

H0- There is no relationship between organisational culture and job satisfaction

Job Satisfaction Organisational

Culture

Pearson Correlation 1 .655**

Job Satisfaction Sig. (2-tailed) .000

N 84 84

Pearson Correlation .655** 1

Organisational Culture Sig. (2-tailed) .000

N 84 84

Table 5.7: Correlation between Organisational culture and Job Satisfaction

*Correlation is significant at the 0.01 level (2-tailed).

Interpretation: Table 5.7 represents the table of correlation between organisational culture and job
satisfaction. Here two variables are positively correlated (r= 0.655, p= .000). Thus, we infer that there is a
moderate relation between these two variables which is significant at 0.01 significance level. Hence, we
reject the null hypothesis. The study shows that job satisfaction increases as organisational culture
increases.

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 DIFFERENCE IN JOB SATISFACTION BASED ON AGE
H0 - There is no difference in job satisfaction among employees based on age.

Dependent Independent Test Test statistics Significant Remarks

variable variable conducted value

Job Age one way 4.145 .009 Reject H0

Satisfaction ANOVA

Table 5.8: Difference in Job Satisfaction based on Age

Interpretation: Table 5.8 represents the table of one way ANOVA for finding the difference in job
satisfaction among employees based on age. Here, we infer that, there is difference between these variables
job satisfaction and age, which is significant (significance point is .009 which is less than 0.05). Hence, we
reject the null hypothesis. Thus there is difference in job satisfaction among employees based on age.

DIFFERENCE IN JOB SATISFACTION BASED ON EDUCATION

H0- There is no difference in job satisfaction among employees based on education

Dependent Independent Test Test statistics Significant Remarks

variable variable conducted value

Job Education one way .669 .615 Accept H0

Satisfaction ANOVA

Table 5.9: Difference in Job Satisfaction based on Education

Interpretation: Table 5.9 represents the table of one way ANOVA for finding the difference in job
satisfaction among employees based on education. Here, we infer that, there is no difference between these

70
variables job satisfaction and education, which is not significant (significance point is .615 which is greater
than 0.05). Hence, we fail to reject the null hypothesis . Thus there is no difference in job satisfaction among
employees based on education.

DIFFERENCE IN JOB SATISFACTION BASED ON WORK EXPERIENCE

H0 - There is no difference in job satisfaction among employees based on work experience.

Dependent Independent Test Test statistics Significant Remarks

variable variable conducted value

Job Work one way 3.575 0.033 Reject H0

Satisfaction experience ANOVA

Table 5.10: Difference in Job Satisfaction based on Work Experience

Interpretation: Table 5.10 represents the table of one way ANOVA for finding the difference in job
satisfaction among employees based on work experience. Here, we infer that, there is difference between
these variables job satisfaction and work experience, which is significant (significance point is .033 which
is less than 0.05). Hence, we reject the null hypothesis . Thus there is difference in job satisfaction among
employees based on work experience.

DIFFERENCE IN ORGANISATIONAL CULTURE BASED ON AGE

H0 - There is no difference in organisational culture among employees based on age.

Dependent Independent Test Test statistics Significant Remarks

variable variable conducted value

Organisational Age one way 4.532 .005 Reject H0

Culture ANOVA

Table 5.11: Difference in organisational culture based on age.

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Interpretation: Table 5.11 represents the table of one way ANOVA for finding the difference in
organisational culture among employees based on age. Here, we infer that, there is difference between these
variables organisational culture and age, which is significant (significance point is .005 which is less than
0.05). Hence, we reject the null hypothesis . Thus there is difference in organisational culture among
employees based on age.

DIFFERENCE IN ORGANISATIONAL CULTURE BASED ON EDUCATION

H0- There is no difference in organisational culture among employees based on education

Dependent Independent Test Test statistics Significant Remarks

variable variable conducted value

Organisational Education one way .511 .728 Accept H0

Culture ANOVA

Table 5.12: Difference in organisational culture based on Education

Interpretation: Table 5.12 represents the table of one way ANOVA for finding the difference in
organisational culture among employees based on education. Here, we infer that, there is no difference
between these variables organisational culture and education, which is not significant (significance point
is .728 which is greater than 0.05). Hence, we fail to reject the null hypothesis. Thus there is no difference in
organisational culture among employees based on education.

72
DIFFERENCE IN ORGANISATIONAL CULTURE BASED ON WORK
EXPERIENCE
H0 - There is no difference in organisational culture among employees based on work experience.

Dependent Independent Test Test Significant Remarks

variable variable conducted statistics value

Organisational Work one way 1.692 .191 Accept H0

Culture experience Anova

Table 5.13: Difference in organisational culture based on Work Experience

Interpretation: Table 5.13 represents the table of one way ANOVA for finding the difference in
organisational culture among employees based on work experience. Here, we infer that, there is no
difference between these variables organisational culture and work experience, which is not significant
(significance point is .191 which is greater than 0.05). Hence, we fail to reject the null hypothesis. Thus
there is no difference in organisational culture among employees based on work experience.

73
 CHAPTER 6

FINDINGS AND SUGGESTIONS

74
FINDGINSOFTHESTUDY

 Most of the respondents (54%) are male.

 Most of the respondents (50%) are in the age group 36-50.

 Most of the respondents (44%) are having ITI educational qualification.

 A vast majority of the respondents (74%) have Above 10 years of work experience.

 Most of the respondents (49%) have Neutral view that they are satisfied with the duties and
responsibilities given to them.
 Most of the respondents (50%) have Neutral view that they are satisfied with the changes and
opportunity provided to them in the organisation.
 Majority of the respondents (59%) Agree that organisational policies are reviewed to assess
effectiveness to them.
 Majority of the respondents (62%) Agree that they are satisfied with the rewards given to them
based on the performance.
 Majority of the respondents (59%) Agree that performance evaluation in the organisation measure
adaption to changes.
 Majority of the respondents (58%) have Neutral view that there is an openness for suggestions from
staffs at all level of the organization.
 Most of the respondents (50%) Agree that they are satisfied with the overall job security provided in
the organisation.
 Majority o the respondents (52%) Agree that the company provide a safe working environment.
 Most of the respondents (50%) have Neutral view that there is a willingness to fix the problem when
emerged.
 Majority of the respondents (64%) are satisfied with the company’s culture.
 Most of the respondents (44%) Agree that people at all level of the organisation are continuously
trying to build or rebuild a organisation.
 Majority of the respondents (58%) believe that manager value their complaint and feedback’s.

 Majority of the respondents (63%) Agree that company provides a support at work whenever
needed.
 Majority of the respondents (64%) Agree that they feel connected to their co workers.
 Majority of the respondents (60%) Agree that the company have fair policies for promotion for all
employees.

75
  Majority of the respondents (62%) Agree that they have a clear understanding of the strategic
objectives of the company.
 Majority of the respondents (55%) have Neutral view that manager provides them with timely
feedback about their work.
 Majority of the respondents (53%) have Neutral view that there is a effective flow of
communication between all the departments of the organisation.
 Majority of the respondents (61%) Agree that Organization offers adequate opportunities for
promotions and career development.

 Majority of the respondents (56%) Agree that top executives in the company are innovative and
approachable.
 Majority of the respondents (60%) Agree that they feel respected by their team and the organisation.
 Majority of the respondents (54%) Agree that organisation inform them about all the resources and
tools to perform their duties well.
 Majority of the respondents (57%) Agree that the environment at work help them strike the right
balance between their work life and personal life.
 There exists a positive relationship between organizational culture and employee job satisfaction.
 There exists a positive organization culture.
 From the analysis it is found that employees are highly satisfied with the organization culture
irrespective of their gender and designation.
 From the interpretation it is found that the organization culture has been showing positive value so
we can find that the employee satisfaction in the organization is high. .

SUGGESTIONS

 Attention need to be maintained in the duties and responsibilities given to them

 Employee objective and company objective should be connected connected.
 Top officers should fix a proper time for evaluating employee’s performance.
 .There should be better job security for the temporary officers.
 The organization should make sure that there is a easy flow of communication between the departments
of the organisation.
 The management must ensure to develop the innovative and creative skills among the employees.

76
CHAPTER 7

CONCLUSION

77
CONCLUSION
This study was conducted to find out the influence of organisational culture on job satisfaction level of
factory employees with reference to Hindustan Organic Chemicals Limited, Kochi. Descriptive Research
Design and Simple Random sampling method was adopted for the study and 84 responses were obtained
through questionnaire method. The responses were helps to reach the findings using percentage analysis,
mean, correlation and Anova. The study was mainly conducted to identify the satisfactory level of
employees and culture of the organization and the factors which provide job satisfaction to the employees.
I have got many valuable suggestions, views and opinions from employees. From the study, it was
concluded that there are various factors which affect the organisational culture, which ultimately has an
impact on job satisfaction level of the employees. It was found from the study that the overall opinion on
the satisfaction level of employees towards organisational culture is high. Also, the study shows that there is
a moderate positive correlation between organisational culture and job satisfaction. This shows that job
satisfaction increases as organisational culture increases. Thus the various factors that influence culture
and motivation of employees were social security measures, discipline, salary status , motivational factor,
feeling of oneness promotional factors .

78
 BIBLIOGRAPHY

BOOKS:

 Arnold, H. J., & Feldman, D. C. (1986). Organizational behavior. New York, NY: McGraw Hill Book.
 Spector, P. E. (1997). Job satisfaction: Application, assessment, causes and consequences.
Thousand Oaks, CA: Sage Publications, Inc.
 Flippo. B. Edwin(2000) personal management, New Delhi, McGraw publishers.

 Kothari C.R(2004) Research Methodology, New Delhi, New Age International publisher

 Shields, J. (2007)“Managing Employee Performance and Reward: Concepts, Practices,

Strategies” Oxford University Press.

 Wylie, K. (2004) “Managers Get the Staff They Deserve” GRIN Verlag
 Dr. Gupta C.B(1995) Human Resource Management, New Delhi, Sons Publishers.
 Bhandarkar C.B(2006) Methodology and Techniques of social research, New
Delhi,Kalyani publishers.
 Shaashi K Guptha, Rosy Joshi( 2011) Organizational Behavior, New delhi, kalyani publishers.
 Harrison, R. (1972)‘Understanding Your Organizations Character’, Harvard Business Review,
May June 1972
 Hofstede Geert. (1980)‘Culture’s consequences: International differences in work-related values’.

WEBSITES

 http://www.slideshare.net
 http://www.citehr.com
 https://www.google.com/search/q=types+of+motivation.
 www.scribd.com
 Chemical industry in India". Statista. Retrieved 2 September 2020
 "Chemical Industry in India – Indian Chemical Sector Analysis". www.investindia.gov.in.

79
ANNEXURES

80
 SURVEY QUESTIONNAIRE.

INFLUENCE OF ORGANISATIONAL CULTURE IN EMPLOYEE JOB

SATISFACTION

I Ansu A Titus hereby declare that this survey questionnaire is strictly for academic research purposes and
seeks to find out the relationship between organizational culture and employee job satisfaction. I shall be
grateful if you could take time off your already busy schedule to respond frankly to the questions below.
Information you provide in this questionnaire will in no way be held against you, as any information
provided will be held confidential. It is very important that you answer all questions in view of the fact that
there are no right or wrong answers. I thank you in advance for your cooperation.

ANSU A TITUS

Name ……………………………………………….

Age 20-30 31-40 41-50 51-60

Gender …………………………………………
Education: SSLC ITI Plus 2 UG PG and above

Total years of experience 0-1 year 2-5 years 6-10 years Above 10
years Name of Department………………………………………….
Your position in the Organisation……………………………………………………..
Date…………………..

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 Neither
Survey Statement Strongly agree agree nor disagree Strongly
agree disagree disagree
1.In my organisation, change is viewed as
a challenge and an opportunity.

2.Organizational policies are reviewed

annually to assess effectiveness.

3.Rewards are given based on the

performances

4.There is an openness to suggestions

from staff at all levels of the organisation.

5.People at all levels of the organisation

are continuously trying to build or rebuild
a organisation.
6. When problems emerge, there is a
willingness to fix them.
7.Top executives in the company are
innovative and approachable.
8.The strategic plan is evaluated once in a
year and revised as needed.
9.There is a effective flow of
communication between all the
departments of the organisation.
10.Performance evaluation in this
organisation measure an Employee’s
adaption to change.
11 The organisation has a safe working
environment.
12. Satisfied with the overall job security
in the organisation
13. Feel respected by your team and the
organisation.
14. Manager provide you with timely
feedback about your work.
15. Manager value your complaint and
feedback.
16. Feel connected to coworkers.

82
 17. You enjoy the company’s culture.

18. Company offers adequate

opportunities for promotions and career
development.
19. Your job cause an unreasonable
amount of stress for you.
20. The environment at work helps you
strike the right balance between your
work life and personal life.
21. Strategic plan is evaluated once in a
year and revised as needed
22. Your organisation provides you
support at work whenever needed.
23. The organisation inform you about
all the resources and tools to perform
your duties well.
24. You have a clear understanding of
the strategic objectives of the
organisation.
25. The organisation have fair policies
for promotion for all employees

You may tick any column to show how much you agree or disagree to the
particular statement.

Scale
1 = strongly disagree
2 = disagree
3 = neither agree nor disagree
4 = agree
5 = strongly agree

83