IMPACT OF ORGANISATION CULTURE ON EMPLOYEE

PRODUCTIVITY AT BEML LIMITED.

MYSORE

By: Mohitha C .M
IV Semester, MBA
Reg No.13MB0089

Guide:
Prof. Aisha M Sheriff

Project Report Submitted to the University of Mysore in Partial Fulfillment of the Requirements
of IV Semester.
MBA Degree Examination 2015

B.N. Bahadur Institute of Management Sciences, University of Mysore

Manasagangothri
Mysore -570006

B.N. Bahadur Institute of Management Sciences, University of Mysore

Manasagangothri

CERTIFICATE

This is to certify that Mohitha C M student of IV Semester MBA course has prepared this project
entitled
IMPACT
OF
ORGANISATIONAL
CULTURE
ON
EMPLOYEE
PRODUCTIVITY AT BEML LIMITED in partial fulfillment of the requirements of MBA
degree examinations of 2015.

Place: Mysore
Date:

PROF AISHA M SHERIFF

CHAIRMAN

B.N. Bahadur Institute of Management Sciences, University of

Mysore, Manasagangothri.

GUIDANCE CERTIFICATE

This project report is entitled IMPACT OF ORGANISATIONAL CULTURE ON

EMPLOYEE PRODUCTIVITY- AT BEML, LIMITED is prepared by Mohitha C.M under
my guidance.
This report is submitted to the University of Mysore in partial fulfillment of the requirements of
IV Semester MBA degree examination, 2015.

Place: Mysore
Date:

PROF AISHA M. SHERIFF

(PROJECT GUIDE)

DECLARATION

I hereby declare that, this project report IMPACT OF ORGANISATIONAL

CULTURE ON EMPLOYEE PRODUCTIVITY has been prepared by me under the
guidance of Prof. Aisha M Sheriff as partial fulfillment for the award of Masters of Business
Administration for academic year 2015 in B.N Bahadur institute of Management Sciences,
Mysore.
I further declare that the project is the result of my own efforts and that it has not been
submitted in any part or in full to any other Institute or University for the award of any degree or
diploma.

Place: Mysore
Date:

MOHITHA C.M
Reg no. 13MB0089

ACKNOWLEGEMENT

The completion of any task depends upon the co-operation, coordination and
consolidated efforts of several resources of knowledge, energy, time and above all the proper
guidance of the experienced. Therefore I approached this matter of acknowledgement through
these lines trying my best to give full credit where it deserves.
I express my deep sense of gratitude and indebtedness to our institute B.N. Bahadur
Institute of Management Sciences, University Of Mysore which provided me the opportunity
of fulfilling my cherished goal.
I express my sincere gratitude to our respected chairman and project guide Prof. Aisha
M.sheriff for her kind hearted co-operation and for providing me with all possible help
necessary for the successful completion of the project.
I sincerely thank Mr B Jagadish Bahadur, placement officer, B.N Bahadur Institute of
Management sciences, Mysore, for extending his permission to work on my project at BEML,
Mysore.
I wish to express my gratitude to those who generously helped me to compile this project
with their knowledge and expertise. Firstly, I owe a great debt to Mr. K. S. Shankar Narayan
Asst. Officer (HR) and Ms Shivapriya, Project guide (HR) who were responsible for making
this project possible.

TABLE OF CONTENTS
CHAPTER

TITLE
INTRODUCTION
Introduction
Problem statement
Objectives of the study
Scope of the study
Research methodology
Limitations of the study

PAGE NO.

1-7

LITERATURE REVIEW
1
1.1 Definition of organisational culture
1.2 The concept of organisational culture
1.3 Theoretical overview

8-26

BHARAT EARTH MOVERS LIMITED

2
2.1
2.2
2.3
2.4

Background of the company

Organisational Overview
Units and Services of the company
Organisational Structure

27-50

ANALYSIS AND INTERPRETATION

3
3.1 Data Analysis
3.2 Interpretation

51-73

SUMMARY OF FINDINGS

74-76

CONCLUSIONS AND SUGGESTIONS

77-81

BIBLIOGRAPHY
ANNEXURE

82
83-89

INTRODUCTION

INTRODUCTION

Organizational Culture proposes employees the way things should be done.

Organizational culture refers to the beliefs and values that have followed in an organization and
the beliefs of staffs and the foreseen value of their work that will influence their attitudes and
behavior and this could influence the employees relationship with the organization. The pattern
of beliefs, values and learned ways of coping with experience that have developed during the
course of an organizations history, and which tend to be manifested in its material arrangements
and in the behaviors of its members.
The employees in their own way contribute to the culture of the workplace. The attitudes,
mentalities, interests, perception and even the thought process of the employees affect the
organization culture.
Organizational culture has been defined as a pattern of basic assumptions, the complex
body of shared values and beliefs of an organization as it learns to cope with its problems of
external adaptation and internal integration. Organizations often have their own distinctive
cultures, however unlike a society, an organization is defined largely by its purpose and this is a
further influence on its culture. A pattern of basic assumptions invented, discovered, or
developed by a given group as it learns to cope with its problems of external adaptation and
internal integration that has worked well enough to be considered valid, and therefore, to be
taught to new members as the correct way to perceive, think, and feel in relation to those
problems. This description highlights that organizational culture is created assumptions, which
are accepted as a way of doing things and are passed on to new members of an organization.
Productivity of a firm is directly proportional to the organizational culture.
Organizational culture is collection of values and norms that are shared by people in organization
and that controls the way they interact with each other. The idea for writing this piece of study is
to analyze the overall impact of organizational culture directly or indirectly on employees
productivity. For new employees this would mean adaptive behavior within the organization that
8

leads to new belief systems. This new and adaptive behavior instilled through organizational
values and beliefs are associated with rituals, myths and symbols to reinforce the core
assumptions of organizational culture. This study examines the interaction between
organizational culture and the agenda for change in the public sector.
Understanding

and

manipulating

organizational

culture

to

engender

greater

organizational flexibility and productivity is of particular interest in the light of the

modernization programme within the public sector. Knowing that culture is important in shaping
organizational practice and performance in public sector organizations is one thing. But a
subsequent issue is the extent to which managers can actually shape or influence culture.
Culture therefore gives organizations a sense of identity and determines, through the
organizations legends, rituals, Beliefs, meanings, values, norms and language, the way in which
things are done around here.
Organizational performance as strong cultures has been shown to hinder performance and
there is also a problem of isolating the impact of Organisational Culture on Productivity. The
problems associated with the culture or performance linkage include validation concerns in terms
of measurement, as the effect of a particular cultural variable may not affect all performancerelated organizational processes in the same way.
Employees who are happier and more satisfied at work are more productive and more
engaged in the mission of the organization. An individuals ability to work productively and
fruitfully will be dependent on the organizational culture. As a result the culture will either
positively or negatively affect wellbeing. When culture and management systems are not aligned,
management must redirect them so that employee behavior results in the achievement of
organizational goals.
To secure a positive work culture an organization needs to influence and develop its
managers to adopt behaviors that persuade employees to undertake tasks in a positive and
empowering way. It is said that the environment affects employees feelings and health choices,
but it does not state that it is the culture and the behavior of the leaders and managers that affect
the environment. To develop employee productivity the model needs to start with understanding
the culture of the organization. The development of a positive workplace culture is a slow, long
process. Strong corporate cultures indicate that employees are like-minded and hold similar
9

beliefs and ethical values. When these beliefs and ethical values align with business objectives,
they can prove to be effective in building teams because rapport and trust quickly ensues. The
bonds that the teams build help them avoid conflicts and focus on task completion. Strong
corporate cultures ease communication of roles and responsibilities to all individuals. Employees
know what is expected of them, how management assesses their performance and what forms of
rewards are available.
Organizational cultures can have varying impacts on employee performance and
motivation levels. Oftentimes, employees work harder to achieve organizational goals if they
consider themselves to be part of the corporate culture. Different cultures operating in one
company can also impact employee performance. Culture is a behavior that results in when a
group comes together generally unspoken and unwritten rules for working together. It can be
best understood as the way we do things around here. There are many practices within the
organization that tend to keep a culture alive between itself and its employees.
Using the approach of performance appraisal, training, and career development
organization could reinforce the culture. Organizational beliefs can influence the work
communication practices, and philosophical stances of employees. Organizational process
called Socialization can help adapt new employees to the organizations culture. If employees
do not adapt well, it could increase pressure from supervisors and from co-workers who are
better acculturated. They might stay and fight, stay and become isolated, or leave the
organization, voluntarily or involuntarily, and look for a different organization whose culture
may fit better for them. It is therefore true that an organizations culture can unquestionably
influence human behavior and consequently the employee performance at work

PROBLEM STATEMENT:
This study is done to find out the impact of organisational cultural in employee
productivity. The organisational culture is a very useful tool for managers, in managing a
diversified workforce within the organization. When culture is defined as a system of shared
meaning, it can be expected that individuals with different backgrounds or at different levels in
the organization will tend to describe the organizations culture in different terms. Therefore the
10

main research question for this study is whether organisational culture influences the employee
productivity.

NEED FOR STUDY:

People are affected by the culture in which they live. Similarly, an individual working for
any organization with a firmly established culture will be taught the values, beliefs, and expected
behaviors of that organization. There is at least some sound evidence that variations in cultural
values may have a significant impact on employee turnover and employee productivity. Hence
the study of organizational culture is important for the understanding and practice of
organizational behavior

OBJECTIVES:

To list out factors influencing organizational culture in the company.

To obtain the employees perceptions about various aspects of the organizations culture.
To examine the employees attitude towards the organization.
To analyze the overall impact of organisational culture on employee productivity.
To suggest ways to enhance organizational culture that improves organizational
productivity.

SCOPE OF THE STUDY:

Organizational culture and its effect on productivity are important in the entire
organisation. The study covers the following dimensions and examines its impact on
productivity.

RESEARCH METHODOLOGY
Research is an original contribution to the existing stock of knowledge making for its
advancement. It is the pursuit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research. The systematic approach concerning generalization and
11

formulation of a theory is also research. As such the term research refers to the systematic
method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or
data, analyzing the facts and reaching certain conclusions either in the form of solutions towards
the concerned problem or in certain generalizations for some theoretical formulation.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In
fact the research design is a conceptual structure within which the research is conducted. It
constitutes the blue print for collection, measurement and analysis of data. Decisions regarding
what, when, where, how much, by what means concerning an inquiry or research study constitute
a research design. Research design is needed because it facilitates the smooth sailing of various
research operations thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time and money.

TYPES OF SOURCES OF DATA

The information for the study was collected from both primary and secondary data.
a. Primary data
The primary was collected using the structured questionnaire and also through personal
observation and interaction with managers and employees of the organisation. Primary
data can be collected through various methods such as surveys, focus groups, and
observations.
b. Secondary data
The secondary data was collected from the previous and current records of the
organization, and through various media like journals, magazines and publications,
articles from the books, newspapers and websites.

Questionnaire
12

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. A defeated
questionnaire was carefully prepared and specially numbered. The questions were
arranged in a proper order in accordance with the relevance.
Sampling
Sample is a subset of population that is used to represent the entire group as a whole. In
this study a sample of 50 respondents in total has been randomly selected. The response
to various elements under each questions were totaled for the purpose of various
statistical interpretation.
Presentation of data
The data is presented through charts and tables.

LIMITATIONS OF THE STUDY

The study is confined only to BEML; therefore the results and conclusions of study are
not applicable to other organisation.
Constraint of time for conducting a large scale survey which would have been desirable
for the study.
Analysis will be done on the assumption that respondents have given correct information
through questionnaire.

13

CHAPTER 1
LITERATURE REVIEW

LITERATURE REVIEW

14

1.1 DEFINITION OF ORGANISATION CULTURE

Gibson et al (1997) defined organizational culture as the system that penetrates values,
belief and norms in each organization. Organizational culture able encourage and discourage the
effectiveness depend on the value characteristic, belief, and norms. Schein (1992), organizational
culture is basic assumption pattern that is created, found, or developed by certain group when
they adapting themselves with the external problems and internal integration work well and
considered as worth, and taught to new members the correct way to realize, think, and feel the
relation with the problems. And Robbins (2006), organizational culture is collective meaning
system that are followed by the members that differentiate the organization to others. Cultural
indicators in the research used from Wallach (1983) grouped organizational culture become
three, that is: bureaucracy culture. Innovative culture and supportive culture.
(1) Bureaucracy culture is culture hose condition needs arrangement, command and rules
(2) Innovative culture bring freedom to participant in it to free in thinking, stating opinion, free
their thought and feeling and to work
(3) Supportive culture is in its communication interaction give emphasis to the kinship values
such as harmony, openness, friendship, cooperation, and trust.
Organizational culture is conceptualized as shared beliefs and values within the
organization that helps to shape the behavior patterns of employees (Kotter and Heskett, 1992).
Gordon and Cummins (1979) define organization culture as the drive that recognizes the efforts
and contributions of the organizational members and provides holistic understanding of what and
how is to be achieved, how goals are interrelated, and how each employee could attain goals.
Hosftede (1980: 25) summarizes organization culture as collective process of the mind that
differentiates the members of one group from the other one. Thus the above concept asserts that
organizational culture could be the means of keeping employees in line and exhilarating them
towards organizational objectives.

15

Early organization behavior researchers (Peters and Waterman, 1982; Deal and Kennedy,
1982; and Pascale and Athos, 1981) find the unambiguous links between culture and
organizational performance. These cultural values are consistent with organizational chosen
strategies that led to successful organizations. Although the relationships between organizational
culture and employee performance have been widely accepted, some researchers (Willmott,
1993; Legge, 1994; and Ogbonna, 1993) raise concerns about the relations. Thus Gordon and
DiTomaso (1992) and Denison (1990) argue that culture characteristics might affect performance
but restricted or conditioned to the specific context. They further argue that culture may lead to
higher performance if it fits with changes of environmental factors within the context. Recently,
researchers argue that cultural traits cannot be copied and therefore it could be source of
organizational sustainability. Resource-based view (Barney, 1986 and 1991) suggests that
sustainability depends on the values, rarity and sustainability of the culture concerned. Overall,
the aim of the literature review is to examine the existing research to explore the links between
culture and performance.
Due to the subjective nature of culture, it could be challenging to precisely define the
specifications of organizational culture. Despite no single theory is uniformly accepted, there is a
general consent about organizational culture on being traditionally determined and socially
structured that involves beliefs, behaviors, values and morals allied with different levels of the
organization and incorporates to all aspects of organizational life (Pettigrew, 1990 and Hofstede,
Neuijen, Ohauv and Sanders, 1990). The organizational culture is outlined by Schein (1990) as
overall phenomenon of the organization such as natural settings, the rite and rituals, climate and
values of the company.
Martins and Terblanche (2003), culture is deeply associated with values and beliefs
shared by personnel in an organization. Organizational culture relates the employees to
organizations values, norms, stories, beliefs and principles and incorporates these assumptions
into them as activity and behavioral set of standards. Klein et al. (1995) positioned organizational
culture as the core of organizations activities which has aggregate impact on its overall
effectiveness and the quality of its products and services.

16

Schein (2004) defined organizational culture as a dynamic force within the organization
which is revolving, engaging and interactive and it shaped up by the employees and
managements gestures, behaviors and attitudes.
Earlier scholars (Rossman, Corbett and Firestone, 1988; Schwartz and Davis, 1981;
Cooke and Rousseau, 1988; Gordon and Di Tomaso, 1992; Schall, 1983; Schein, 1992;
Rousseau, 1990) have explained culture as mutual experience which depends on the behavioral
and societal activities. Performance on the other hand refers to be the ability (both physical &
psychological) to execute a specific task in a specific manner that can be measured as high,
medium or low in scale. The word performance can be used to describe different aspects such
as societal performance, organizational performance, employee performance, and individual
performance etc. Researchers (Roe, 1999; Campbell, McCloy, Oppler, & Sager, 1993; Campbell,
1990; Kanfer, 1990) tend to identify two dimensions of performance: an action dimension (i.e.
behavioral aspect) and an outcome dimension (i.e. performance aspect). Here, the behavioral
aspect of performance is assumed to be matched with work situation and job specifications. Then
this selective behavioral aspect turns into a means of achieving organizational goals and
objectives that is the outcome dimension or performance aspect. Although there is a range of
behaviors that could be used for measuring performance, Motowidlo, Borman, & Schmit
(1997) emphasize judgmental and evaluative processes that take a great deal along with action
itself while defining performance.
Magee (2002) in this very point argued that organizational culture is inherently
connected to organizational practices; therefore organizational performance is conditional on
organizational culture. According to Hellriegel & Slocum (2009), organizational culture can
enhance performance in a large scale if it can be understood that what sustains a culture.
According to these authors the culture of an organization allows the employees to be
acquainted with both the firms history as well as current methods of operation and this specific
detection endows the employees with guidance about expected and acceptable future
organizational behaviors and norms.

17

Some theoretical models assert that the effective human resource system of an
organization is based on supporting values and then these systems, in turn, create a positive
impact on employee attitudes and behavior, which facilitate organizations performance (Ferris et
al., 1998).
Mercer and Bilson (1985) also point out the correlation between organizational culture
and employees performance; and this employees performance then translated into
organizational outcomes such as customer satisfaction (Schmidt, Shull, and Schmitt, 2001).
Findings of research conducted by Renn and Vandenberd (1995) demonstrate a conceptual
linkage between organizational culture and employee performanceMost organizations assert its
performance as a dependent variable which seeks to recognize other independent variables that
produce variations in its performance (March and Sutton, 1997). Martin and Siehl (1990) argue
that organizational culture is theoretically related to performance and do have positive influence
on it. Explaining the variation in performance of effectiveness, Bowen et al. (1989) in his
relevant work highlighted that the role of culture is very vital in nurturing, sustaining and
enhancing the performance of organizations. In addition to this, Kopelmal et al. (1990) clarified
that cultural system of any organizations adds to the coordination of assignments and minimizes
inefficiency employee efforts and firms resources.
In order to meet the organizational objectives and achieve competitive advantages, all
organizations are thriving to recruit highly performing individuals. On the other hand,
individuals need supportive organizational culture to help them reach individual objectives.
Therefore, an organization is a consciously coordinated system where characteristics of
individuals, groups and organization interact with each other and effective interaction among
them highly depends on organizational culture that shapes the individual performance
(Kozlowski & Klein, 2000) and in most of cases high performers are more appreciated and
promoted than low performers (Cross et al., 2000). As a result evaluation of employee
performance basically depends on the factors like performance appraisals, compensation,
employee recognition, employee motivation, training and development, job security, flexible
time system, organizational structure, employee satisfaction etc. But, this paper will concentrate
on the basic factor or the roots of all above traits and that is the organizational culture.
18

There are numerous researchers who consider the importance of individual factors (i.e.
ability and effort) to make a link between organizational culture and employee performance
(Gardner & Schermerhorn, 2004; Schermerthorn et al, 1990), it requires further investigation for
better understanding and prediction of the relation between organizational culture and employee
performance.
According to Furnham and Gunter (1993), organizational culture functions as the
internal integration and coordination between firms operations and its employees. Internal
integration can be described as the societal interaction of new members with the existing ones,
creating boundaries of the organization feelings of identity among personals and commitment to
the organization. Shared system which forms the basis of communication and mutual
understanding in organization is due to its culture and if the organizational culture fails to fulfill
these functions at satisfactory level, the culture may have significant negative influence on the
efficiency of the employees (Furnhum and Gunter, 1993).
A strong organizational culture supports adaptation and develops organizations employee
performance by motivating employees toward a shared goal and objective; and finally shaping
and channeling employees behavior to that specific direction should be at the top of operational
and functional strategies (Daft, 2010). A firms mission reflects its ultimate long term objective
which is accomplished by conducting integrated operational and behavioral activities. A firms
performance improves if it has a clear sense of purpose and commitment towards its mission.
Successful and well performed organization defines its organizational goals as the report card of
forthcoming (long term) future (Ohmae, 1982; Mintzberg, 1987; Hamel and Prahalad, 1994).
Along with others, shared value of employees is one of the basic components of
organizational culture (Smit and Cronje, 1992; Hellreigel et al., 1998). Schein (1994) clarifies
that value which is a set of social norms that define the rules or framework for social interaction
and communication behaviors of societys members, is a reflection of causal cultural
assumptions. Individuals who hold similar values may feel and interpret situations and events
similarly (Meglino, Ravlin, & Adkins, 1989) which can reduce uncertainty (Schein, 1985), role
ambiguity, and conflict (Fisher and Gitelson, 1983), allow for the accurate prediction of others
19

behavior (Kluckhohn, 1951), and make successful interpersonal interactions more likely
(Meglino et al. 1989). Academics and practitioners argue that the performance of an organization
is dependent on the degree to which the values of the culture are widely shared (Peters and
Waterman, 1982; Deal and Kennedy, 1982; Denison, 1990; Ouchi, 1981; Pascale and Athos,
1981 and Kotter and Heskett, 1992). Similarly, it is widely argued that shared and strongly held
values enable management to predict employee reactions to certain strategic options and by
reducing these values, the consequences maybe undesirable (Ogbonna, 1993).
Deal (1999) defines organizational culture as values, beliefs and behaviors that
differentiate one organization from another. Performance of any organization sets it apart from
other organizations. The term performance is often used to describe everything from efficiency
and effectiveness to improvement (Stannack, 1996) and previous literature studies obviously
show evidence of positive relationship between organization culture and its performance.
According to Hitt et al (2001), intangible resources are more likely than tangible
resources to produce a competitive advantage. This theory was supported by Tecce (2000) that a
firms superior performance depends on its ability to defend and use the intangible assets it
creates. Satisfaction and positive attitude can be achieved through maintaining a positive
organizational environment, such as by providing good communication, autonomy, participation,
and mutual trust resulting superior employee performance (Argyris, 1964). The satisfaction and
attitudes of the employees are important factors in determining their behaviors and responses at
work and through these behaviors and responses, organizational effectiveness can be achieved.
Thus the satisfaction and well being of employees can result in organizational effectiveness
through silent productivity related behaviors of employs (McGregor, 1960).
Loyalty and commitment both interpret an emotional bonding between the individual and his or
her cultural group and, as such, imply a willingness to put forth exertion and make sacrifices on
behalf of that group (Druckman, 1994). However, whether loyalty and commitment are
positively correlated with performance craved by the organization or not may depend on what
values and norms the target cultural group holds regarding performance.
OReilly (1989) suggests that employees commitment to an organization will be more
dedicated because they care about their organizations fate, and their caring heightens the power
20

of organizational norms to control their behavior. From a different perspective culture shows its
affect on performance by programming people to behave in such manners that more or less
effective in terms of performance (Druckman, Singer and Cott, 1997). Creativity and innovation
also trigger the performance of employees and facilitated by organizational culture.
Tushman and OReilly (1997) in this context stated that organizational culture lies at the
heart of organizational norms that reflects the influence of organizational culture on creativity
and innovation. Organizations Culture can play an important role in creating such an
environment that enables learning and innovative response to challenges, competitive threats, or
new opportunities. Thus, creating and influencing an adaptive culture is one of a managers most
important jobs (Daft, 2010).
According to socio-technical school (Emery & Trist, 1960), organizational effectiveness depends
on both the technical and social structure of the organization. Some social physiological structure
may be superior to others for both employee satisfaction and productivity. Organizational
effectiveness results when there is congruence between social and technical organizational
dimension. Organizational productivity is achieved through employee satisfaction and attention
to workers physical and emotional needs (Likert 1961). Akin and Hopelain have (1986)
discussed about the crucial relationship between organizational culture, employee performance
and productivity in their research on organizational culture and productivity; and introduced
culture of productivity where they illustrate the components of a productive culture such as
efficient people, job identification, teamwork, trust and support etc are determined by knowledge
of job and the performance. Akin and Hopelain (1986) also argue that a culture of productivity is
based on three basic structures and they are: legibility (clarity), coherence (integration of the
elements of work) and open-endedness (adaptability to change).
Organizational culture is one of the most popular concepts in the field of management and
organizational theory.
This can be backed up by the abundance of theoretical concepts and perspective provided
at current time (Martin, 1992) and organizational disciplines which utilize the concept (Harris
and Ogbonna, 1999). Highly collective organizations emphasize group harmony, cooperation and
21

reward for enhancing employee performance (Javidan & Dastmalchian 2009). At the more
operational level, the higher performing organizations have a management style that includes
giving more freedom to their managers to take independent actions rather than simply following
orders, to take reasonable risks and to openly discuss conflicts and constructive criticisms. High
humane oriented organizations reward people who are fair, altruistic, friendly, generous, kind
(Javidan & Dastmalchian 2009). Managers get adequate information and support for decision
making (decision-making structure) and they are given rewards and benefits based on
performance that compare favorably to similar organizations (compensation). Finally, members
of the higher performing organizations are well matched to their jobs and have sample
opportunities for growth, development and career advancement within their organizations.
Organizational culture is one of the very basic components of companys competitive advantage
as well as to sustain performance. Northouse (2004) asserts that all the leaders have an agenda, a
set of beliefs, proposals, 67 issues, ideas and values which they wish to put in the table. These set
of organizational culture are promoted by the leader and it has significant impact on the values
exhibited by the organization (Carlson and Perewe, 1995; Schminke, Ambrose and Noel, 1997;
Trevino, 1986). Competitive advantage which is the unique selling point of companies
performance is also supported and built up by the leaders and their inputs in organizational
culture.
Kotler and Keller (2006) define competitive advantage as companys ability to perform
in one or more ways that competitors cannot and these cultural leaders achieve it by creating
organizational culture to make employees believe that the substance of the performance is the
most crucial (Schein, 2004).
Precise information and applicable knowledge always assist performance, whereas erroneous
information and irrational knowledge are likely to do the opposite (Feldman and March, 1981;
and Daft and Weick, 1984).
Cultures also provide cognitive frameworks through which people interpret what they observe
and experience and provide language and referents to use in communicating with others (Wilkins
and Ouchi, 1983). Research on strategic decision making has shown that different managers may
interpret identical events as opportunities or threats and that these interpretations, in turn, are
related to the actions taken (Dutton and Jackson, 1987).
22

Cultures also contribute schemas and scripts that can affect performance by providing
preexisting ways of understanding what is occurring, how to evaluate it, and what sequences of
actions are appropriate to the situation (Lord and Foti, 1986; Wilkins and Ouchi, 1983). Siegal
and sussman (2003) asserted that social interaction which surrounds knowledge adoption and
helps to integrate social construction and social presence can actually explain information
sharing process. Their studies interpreted information as a factor which is embedded in a social
context that establishes both information interpretation and its sharing process.
Organizational culture is a complex notion to study, develop and scrutinize. In todays
research field of organizational behavior and management, there exists extremely inadequate
quantity of empirical researches that discovered exclusively the affiliation between
organizational culture and employee productivity which results from effective employee
performance. Researches stroked the link between some phases of organizational culture and
their consequences that affect employee performance and as a result affect productivity (Mathew,
2007, Trice and Beyer, 1984; Hofstede, Neuijen, Ohayv and Sanders, 1990). After a long era of
research on organizational culture, scholars have established abundant links between
organizational culture and organizational employee performance and productivity. Unlike
previously, today researchers believe that organizational culture can be used for competitive
advantage, effective employee performance and productivity (Tharp, 2009). Researchers like
Peters & Waterman (1982); Sadri & Lees (2001) and Deal & Kennedy (1982) and Thompson
(2002) stated that strong organizational culture is a primary determinant in creating better
organizational performance and sustained competitive advantage.
As culture differs from country to country and organization to organization, proposed
theories often become problematic when they attempt to model the actual detail and richness of
real organizations because of the complexity of interrelationships between organizational
processes (Hofstede, 1990). Researchers often fail to isolate and measure many important
organizational variables that are needed for theoretical background checking. Clearly, concerns
should be raised on quantifying and measuring the conceptualization of organization cultures
characteristics but it also leads to research possibility as well (Hofstede 1990, Mackenzie 1986,
Schein 1990).
23

Although there are a few inconsistencies in the literature, previous theoretical

articulations about organizational culture and its impact on employee performance provide some
crucial underpinning to test the hypothesis that information about organizational culture can be
an important indicator in explaining an organizations level of productivity.
Hofstede (1990), Rousseau (1990), Smircich (1983) and Louis (1983) admit that
organizational culture is holistic and socially constructed by the members of the organization and
some visible features can be measured about the influences on an organizations employee
performance. From numerous culture surveys it have been claimed that employee performance
can be improved by developing and creating certain kinds of organizational cultures (Sackman
and Bertelsman, 2006 and Denison, 1990,). It can be inspected that although some aspects of
organizational culture have been scrutinized for their productivity, as in-depth analysis of the
various aspects of organizational culture is absent in such researches (Mathew, 2007). Most of
the studies cited earlier in Bangladesh on organizational culture and employee performance were
not empirical. To date empirical efforts, few have explored the relationship between culture and
other organizational variables. Current research is first in nature to analyze on the effectiveness
of organizational culture on the employee performance and productivity of telecom industries in
Bangladesh context. Being the fastest growing sector of Bangladesh, its organizational culture
has lots of potential in enhancing employee performance and productivities.

1.2 Concept of Organizational Culture:

Organizational culture is conceptualized as shared beliefs and values within the
organization that helps to shape the behavior patterns of employees. Organizational culture can
be difficult to define and even harder to change. It is essentially the sum total of the attitudes,
behaviors, beliefs, and traditions of an organization. It encompasses the collective goals of a
company and the standards of expected behavior in achieving those goals. And it describes the
environment and manner in which employees interact with each other and the market.
Organizational culture is more than just an internal phenomenon, however. A companys culture
is often felt outside of its own four walls. In this way, culture becomes a very important part of a
companys brand. So if a culture is not aligned with the brand, or the brand does not naturally

24

arise from that culture, then companies can develop a credibility problem by promising one thing
to the market, but delivering something else.
Impact of Organizational Culture on Employee Productivity:
High productivity when the organizational culture is effective and can be accepted by the
employees. This can lead to motivation to the employees to increase their productivity. For
example if the organization culture is innovative and the employees likes to improve and to do
new things, then these can lead to high productivity of the employees.
Low productivity when the culture of the organization is not proper and transparent and is not
accepted by the employees. For example if the organizational culture is team oriented and the
employees is individualistic who likes to do work in individual, then this can lead to low
productivity.
Organisational culture on Employee Productivity is a system of shared meaning and common
beliefs held by organizational members that determines, in a large degree, how they act towards
each other.
Implications are:

Culture is a perception
Culture is shared
Culture is descriptive

Dimension of Organizational Culture

The four dimensions of organization culture were as followed:
Power distance: It is defined as degree of employee and management behavior that have
been based upon perfect relationship between formal and informal set of planning action.
Individualism: In this dimension difference between organization interest and self
interest have perfectly been matched.

25

Uncertainty avoidance: The uncertainty and ambiguity based upon tolerance helps in
mitigating willingness of people.
Masculinity: It comes in avoidance of caring and promotion rather than level of success
based upon challenges, insolence and ambition.
In 1998 Hofstede and Bond identified fifth dimension in which 23 countries long and
short term orientation have perfectly been analyzed. The organizational behavior relates to
practitioners values and beliefs based upon culture factors and norms that effects upon
personality and performance of organization. (Sondergaard, 1994) The cultural factors and
personality impacts upon behavior and sustainability of organization (Schwartz,1994) The
models developed by Hofstede in 1980 presents 38 countries studies in which strong
relationships of culture have been identified. From these classifications two different kinds of
dimensions have been identified such as: Affective & intellectual while secondly self
enhancement and self transcendence. The standards based upon cultures and societies present
contractual relationship between life and work. The standards based upon cultural association
leads to perfect association between performance and management. More than 30 companies
from 50 different countries have been identified (Trompanaars 1993) . Seven different
dimensions of cultures have also been identified such as universalism versus particularize,
specific versus diffuse, emotional versus neutral, communication versus individualism,
achievement versus ascription, attitude to environment and attitude to time. The Hofstedes
model has seven dimensions that help in presenting effective relationship between different sets
of norms and values.

1.3 THEORITICAL OVERVIEW

26

According to this study the organisational culture matters a lot in upgrading the employees
productivity. If the environment is easy and comfortable to work, then the employees are
encouraged to work effectively and efficiently. The good and competitive culture enhances the
performance of work force. The members of the organisation are encouraged to work effectively
if the culture of the organisation is strong and motivating. Organisation culture is the reflection
of Employee Productivity.
BENEFITS
Because the company culture influences everything and everyone, a well-developed company
culture creates positive changes across the organization. Managers who have developed their
companys culture report improvements in every area, including:
Financial Benefits
At the economic level, a well-developed culture brings dramatic, sustained increases in
productivity and performance. This is no surprise given that psychologists estimate that the
average employee contributes only 20% of their potential. A culture that deeply engages people
is understandably much more productive. A 10% increase in productivity is minimal. Unit
productivity often doubles in 2 years, though this depends on the units size, the industry type,
and the level of senior management commitment. Continuous improvement is the norm. There is
no limit to improved productivity - so long as leaders keep working on the culture.
Recruiting
A well-developed company culture, clearly stated in promotional materials, is a powerful
recruiting point. Companies with an open, participative workplace, where people enjoy working,
and have broad opportunities for growth and creativity, attract top candidates. One of the
measures of an excellent work culture is that existing employees urge their friends to join. When
employees do this, they are typically highly selective, inviting only people they know will excel.
Morale
High morale is a key to success. It is closely connected to trust, purpose, team loyalty, pride, and
faith in the leadership- all qualities that improve as the culture develops Morale.
Supply Chain
27

Supply chain efficiencies depend very much on internal cooperation between multiple functions
and levels and with external suppliers and customers. As the culture develops, relationships,
cooperation and communications improve. The supply chain becomes more efficient,
streamlined and responsive to rapidly changing markets, technology, and customer needs.
Customer Service
As the culture builds, managers learn to better manage the quality of everyones experience,
inside the company and with outsiders such as customers, clients, suppliers, and other corporate
entities. Most customers are highly attuned to their suppliers cultures. They can easily tell when
things are working well and when they are not.
Employee Motivation
Motivation blossoms in a well-developed culture that recognizes the employees personal work
needs and desires and allows people to fulfill these needs through the business tasks. When
people are recognized and appreciated for who they are and what they can contribute, the twoway benefits are large and unending.
Responsiveness to Change
A well-developed culture brings a strikingly increased openness to change and the desire of
employees to make changes work. As trust and responsibility increases, employees dont just
initiate significant improvements in ongoing operations, they actively reach out to their
environment, bringing improvement ideas and initiatives that make the company more market
competitive. For example, customer service representatives, through casual conversations, learn
a great deal about the clients needs and plans. In a well-developed culture this information is
smoothly connected to marketing and product development. In a more conventional workplace,
silos separate functions, limiting communications - in this case the potential valuable inflow of
information from customers.

Involvement

28

People naturally want to be involved and go home knowing they were appreciated and seen as an
important contributing member of the team. When the leaders show that they want everyone
involved, people step forward energetically in creative and productive ways.
Leadership
Developing the culture trains managers in people leadership skills and gives them a clearer sense
of their role. Many managers say that the culture development process was the most important
experience in their career, though often they add that it was also the most difficult.
Meetings
With

improved

openness

and

trust,

people

speak

up

and

participate

more

in

meetings. Meetings are more focused, creative, and productive. The right people attend, keep the
meeting on track, and stop when the task is done.
Mergers and Acquisitions
Well-developed cultures bring smoother mergers and acquisitions, with higher success rates.
People get more involved and make them work. When a well-developed culture acquires a lessdeveloped culture acquiring managers know how to lead the culture merging process so that
anxiety is minimized, productivity is maintained, and highly valued employees in the acquired
company stay. Conversely, when a company with a well-developed culture is acquired by a
company with a less-developed culture, the managers in the acquired company may reach out
and help the managers in the acquiring company more successfully manage the merge process.
This can be quite surprising to the acquiring company and may awaken them to the benefits of
developing their own culture.
Cooperation
By

definition

developed

culture

increases

cooperation,

collaboration,

and

motivation. Improving cooperation between divisions and between levels profoundly improves
communications, decisions, and problem-solving.
Teamwork

29

A well-developed culture involves the people who are affected by a decision in the decision. This
is fundamental to developing teamwork, cooperation, involvement, and trust, between people,
divisions, and levels.
Relationships
The culture change process improves relationships between people, levels, and departments.
Improve relationships brings improve communications, decisions and overall performance.
Responsibility
As the culture develops and people take full responsibility for what happens in their work areas,
problems are solved where they happen and by those affected. This frees management from the
old policing and monitoring style of leadership.
Safety
The keys to safety are trusting, open relationships. In a safe work culture, people speak up about
unsafe situations, they dont stand silent when someone violates safe practices, they constantly
look for ways to improve safety, and they take personal responsibility for creating and
maintaining a safe workplace. Because major accidents can be staggeringly expensive, a safe
workplace can be a big contributor to net incomes.
Retention
When you have a great place to work -where people can satisfy their needs -they just dont want
to leave.
Absenteeism
It is common sense that there will be less absenteeism when people like their jobs. They also
develop a new attitude towards their fellow workers and to the problems that their absenteeism
creates for them.

Union-Management Relations
30

A well-developed culture moves away from adversarial relationships and towards cooperation.
Cooperative relationships have few grievances and low workers compensation costs. As highly
adversarial labor-management situations change, grievances drop to zero and potential strike
preparation costs are eliminated.
Injuries and Claims
This is a complex area, closely related to attitudes and relationships. As people see each other in
new ways, lost-time injuries and workers compensation claims drop. Sometimes this is quite
sudden and dramatic.
Insurance Rates
Along with a safer workplace, with fewer injuries and claims, come lower insurance rates.
Satisfaction and Happiness
Last but perhaps most important, there are few things more satisfying than being part of a welldeveloped company culture. It is a real pleasure working in an organization where people enjoy
each other, where they enthusiastically cooperate around the work tasks and around problemsolving, and where people sincerely recognize each other for their special contributions to the
groups success. Satisfaction and happiness go hand-in-hand with improved performance.

FACTORS AFFECTING ORGANISATION CULTURE ON EMPLOYEE

PRODUCTIVITY

Individual working with the organisation: The first and the foremost factor affecting
culture is the individual working with the organization. The employees in their own way
contribute to the culture of the workplace. The attitudes, mentalities, interests, perception
and even the thought process of the employees affect the organization culture.

The Gender of the employee: The gender of the employee also affects the organization
culture. Organizations where male employees dominate the female counterparts follow a
31

culture where late sitting is a normal feature. The male employees are more aggressive
than the females who instead would be caring and softhearted.

The nature of the business: It also affects the culture of the organization. Stock broking
industries, financial services, banking industry are all dependent on external factors like
demand and supply, market cap, earning per share and so on. When the market crashes,
these industries have no other option than to terminate the employees and eventually
affect the culture of the place. Market fluctuations lead to unrest, tensions and severely
de-motivate the individuals.

The goals and objectives: The strategies and procedures designed to achieve the targets
of the organization also contribute to its culture. Individuals working with government
organizations adhere to the set guidelines but do not follow a procedure of feedback thus
forming its culture. Fast paced industries like advertising, event management companies
expect the employees to be attentive, aggressive and hyper active.

The clients and the external parties: The clients and other parties to some extent also
affect the work culture of the place. Organizations catering to UK and US Clients have no
other option but to work in shifts to match their timings, thus forming the culture.

The management and its style of handling the employees: It also affect the culture of
the workplace. There are certain organizations where the management allows the
employees to take their own decisions and let them participate in strategy making. In
such a culture, employees get attached to their management and look forward to a long
term association with the organization. The management must respect the employees to
avoid a culture where the employees just work for money and nothing else. They treat the
organization as a mere source of earning money and look for a change in a short span of
time.

32

CHAPTER 2
BEML LIMITED

33

2.1 BACKGROUND OF BEML LIMITED

BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as
a Public sector undertaking for manufacture of Rail coaches & spare parts and mining equipment
at its Bangalore complex. The company has partially disinvested and presently Government of
India owns 54 percent of total equity and rest 46 percent is held by public, financial institutions,
foreign institutional investors, Banks and Employees.
BEML Limited, a Minirantna-category-1, plays a pivotal role and serves Indias core
sectors like Defence, Rail, Power, Mining and Infrastructure. The company started with Modest
turnover of Rs. 5 crore during 1965 and today, thanks to its diverse business portfolio, the
company has been able turnover of more than Rs.3,500 Crore. Its three major Business verticals
viz., Mining & construction, Defence, and Rail & Metro are serviced by its nine manufacturing
units located at Bangalore, Kolar Gold fields (KGF), Mysore & Palakkad. BEMLs products are
sold and serviced through its large Marketing Network spread all over the country. BEMLs
products are exported to more than 56 countries. As a part of companys globalization strategy,
the company has expanded its global reach by opening local company at Indonesia and Brazil
recently in addition to Malaysia and China offices.
The company operates under three major Business verticals- viz. Mining & construction,
Defence and Rail & Metro. Each of the above Business is headed by a director who acts as CEO
of the Business and reports to the Chairman & Managing Director of the company. In addition to
the above, Technology Division of the company provides end to end technology solutions in
Auto, Aero, Defence & Rail & Metro related areas. Trading divisions deals in non company
products.
BEML manufactures and supplies Defence ground support Equipment such as Tatra
based high mobility trucks, Recovery vehicles, Bridge systems, Vehicles for missile projects,
Tank transportation trailers, Milrail wagons, Mine Plougs, Crash Fire tenders, Snow Cutters,
Aircraft Towing Tractors, Aircraft weapon Loading trolley. The company also plans to take up
overhaul and up gradation of battle tanks with a view to assemble and to roll out the products.
Under Mining & construction equipment like bull dozers, excavators, dumpers, loaders and
motor graders to various user segments and under rail & metro business, manufactures and
suppliers rail coaches, metro cars, and Steel and aluminum wagons to the rail sector.
34

2.2 ORGANISATIONAL OVERVIEW

Vision:
To become a market leader, as a diversified company supplying products and services to
mining & construction, railway & metro and defence services and emerge as an international
player.
Mission:

Improve competitiveness through organizational transformation and collaboration/

strategic alliances/joint ventures in technology

Grow profitably by aggressively pursuing opportunities in national and international

markets.
Attract and build people in rewarding and inspiring environment by fostering creativity
and innovation.

Objectives:

To maintain a dominant position in design, development, manufacture and marketing of

Defence, Earthmoving & construction and Rail & Metro equipment.

To diversity & grow.
To provide total engineering solutions to its customers
To internationalize operations by enhancing exports
To improve profitability
To maintain state of the art technology for all products
Re-orientations of business operations to match present scenario
Continuous building of skills and competencies to bring about executive effectiveness for
management succession.

Company history:
BEML limited was Company was incorporated by Government of India as a public sector
undertaking under the Administrative control of Ministry of Defence, Department of Defence
Production and Supplies. Initially the company was incorporated as a private limited company
vide certificate of incorporation bearing number 1530 dated May 11, 1964 under The companies
Act by the name Bharat Earth Movers Limited. On the formation of our company, the rail
coach of Hindustan Aeronautics Limited was transferred to us with land, building, plant and

35

machinery, manpower and other infrastructure facilities as a going concern for a total
consideration of approximately Rs. 6 crores, which was met by issue of shares for considerations
other than cash.
In the year 1992, the Gold decided to dis-investor our Equity Shares and accordingly by a
resolution passed at the EGM held on February 21, 1992.
There are 3 manufacturing units which are situated at Kolar Golds Fields Complex,
Bangalore Complex and Mysore Complex. At our KGF unit we are manufacturing heavy earth
moving equipments like bulldozers, hydraulic excavators, mining shovels, backhoe loaders,
walking draglines, loaders etc. At our Bangalore unit, we are manufacturing railway rolling
stock, metro coaches, defence equipment and aggregates. At our Mysore unit, we are
manufacturing dumpers, motor grades, engines of different sizes and capabilities and also
defence equipments.
BEML Subsidiary
BEML limited one subsidiary, namely Vignyan Industries Limited, which is engaged in supply of
different types of castings to diverse clientele.
Major event
YEAR EVENT
1964 - Incorporation of our company as a private limited company with the registrated
office at Bangalore. Simultaneously, we took over as a going concern the rail coach
division of Hindustan Aeronautics Limited in Bangalore.
1968 -Establishment of the heavy earthmoving equipment division at Kolar Gold Fields.
1979-Collaboration agreement entered into by us with Komatsu Limited, Japan for
technical know-how in the manufacture of a wide range of earthmoving equipment such
as bulldozers
1985-Dump truck division established at Mysore.
1986-Received National Import Substitution Award from Ministry of Science
Technology.
1987-An exclusive hydraulics and power line division and a fully fledged research and
development centre set up at Kolar Gold Field
1990-Received corporate Excellence Award for outstanding performance from
department of public enterprises, Gol
36

-Asias largest 170 ton electric dump truck assembled and launched.
1991-Engine division set up at Mysore for manufacturing heavy-duty diesel engines.
1992-Conversion of our company into a public limited company
-Recognition as an Export House with Star Exporter status
1994-Public Issue of 60,00,000 12.50% secured redeemable partly convertible debentures
of Rs. 195/- each for cash at par aggregating to Rs. 117 crores offered to public
-Listing of the Equity Shares at the Stock Exchanges at Bangalore, Mumbai, Kolkata,
Delhi and Chennai.
-Mammoth equipment walking dragline launched.
1995-Rights issue of 10,00,000 12.50% secured redeemable partly convertible
debentures of Rs. 180/- each.
-crosses Rs. 1, 00,000 Lakh mark in sales turnover
-Received ISO 9000 certification
1996-Major counter trade agreement with Syria executed against import of rock
phosphate
1997-Recipient of award for Best Employer of the physically handicapped from Ministry
of Welfare.
1998-Bags orders against World Bank tenders valued at Rs. 70,000 lakh for equipment
supply to CIL projects.
1999-Integrated hi-tech applications program implemented in divisions covering
manufacturing, operations and communications.
2001-Awarded the Best Exporter by the Department of Industry & Commerce, Gok
2002-Awarded the Best Exporter by the Department of Industry & Commerce, Gok
-Regional award for highest exports awarded by Engineering Export Promotion
Council, Southern Region
2003-Manufacture and supply of hi-tech stainless steel metro coaches to DMRC

37

-The Equipment division of Mysore unit was awarded the National Safety Award
under the scheme I and II
-Awarded the Best Exporter by the Department of Industry & Commerce.
2004-7T

Class

Excavator

BE71

and

Backhoe

loader

BL 9H

were

formally launched.
-Four cylinder indigenous engine B4D105 has been introduced as an earth
moving equipment
-Awarded the Best Exporter by the department of Industry & Commerce, Gok
-Our Companys Equity Share got voluntary delisted from DSE and MSE, and
application made for voluntary delisting of our Equity Shares to CSE
2005-BEML Thrives with Rs 3680 mn orders
-BEML signs MoU with Rotem for Aerobridges
-BEML joins hand with Korean co Rotem to build aerobridges
-BEML inks MoU with Delhi Metro
-BEML inks MoU with HMT for metro rail coach project
2006 -BEML- Secretary (Defence Production)inaugurates BEML Technology Division
-BEML joins hand with US firm Terex Corp
2007 -The credit rating of our Company has been done by ICRA Limited and it
has assigned IrAAA (pronounced as Issuer Rating Triple A)to our Company. This rating
indicates the highest credit quality rating assigned by ICRA Limited, which means our
Company carries the lowest credit risk.
-Formation of Joint Venture Company in the name and style of BEML Midwest
Limited on April 18, 2007 under the registration no. U13204AP2007PLC053653/20072008 with Midwest Limited.
-A consortium of BEML Ltd, Mitsubishi and Rotem has formally got the Delhi
Metro Rail Corporations order worth Rs 1,144 crore for metro coaches.

38

-BEML Ltd has set up a subsidiary in Brazil for sourcing and assembling of mining
and construction equipment to cater to the growing Latin American markets.
-Company name has been changed from Bharat Earth Movers Ltd to BEML Ltd.
-BEML joins hand with NPTC for mining tools.
2008 -BEML Ltd has appointed Shri. P Dwarakanth as the Director of the Company
effective March 01, 2008
-BEML Ltd has informed that the Government of India has appointed Shri. M Pitchlah
as Director (Finance) on the Board of the Company. He took charge on July 14, 2008
-BEML Ltd has informed that Sri. S Ramesh, DGM (CS) holding charge of the post of
company Secretary from September 01, 2008 consequent upon superannuation Sri. K C
Medapa has been appointed as company Secretary of the company by the Board of
Directors at their meeting held on September 18, 2008.
2009 -BEML Limited has informed that the Government vide letter No 8(5)/2008D(BEML), dt.07.07.2009 have appointed the following Non-official Part-time Directors
on the Board of BEML Limited:

(1) Lt.Gen(Retd.) S. Pattabhiraman, Ex vice Chief of Army Staff.

(2)Shri M.B.N Rao, Ex-CMD, Canara Bank.
(3)Shri J.P Batra, Ex-Chairman, Railway Board.
(4)Shri J.P. Singh, former Secretary to the Government of India.

39

2.3 UNITS AND SERVICES OF BEML

Commitment to quality
BEML limited views quality improvement as a business strategy and hence remains
proactive in the areas of product and service quality. At BEML, a corporate quality policy
emphasizing total quality management ensures that quality systems adopted results in products,
services and processes that meet stringent standards and requisite performance criteria. A
separate quality department spearheads the thrust towards total quality management system and
Engine division.
All the manufacturing units of the company have been certified for ISO 9001-2008
quality management systems (QMS). The KGF Complex, Bangalore Complex and Mysore
Complex are certified for ISO 14001-2004 Environmental Management System (EMS). Also, the
Bangalore complex is certified for BS OHSAS 18001-2007 OHSAS integrated management
system and Engine division, Mysore complex is certified for AS9100B Aerospace certification.
40

The manufacturing divisions are augmented with test facilities available at its R&D /
Technology Division. Laboratories at R&D. KGF and Mysore complex are accredited to
National Accreditation Board for Laboratories (NABL) covering Calibration of Flow, Pressure,
Torque and Mechanical Measuring Instruments. The facilities include custom made test tracks to
evaluate the performance of equipment.
Well established vendor base is a key strength of BEML. Vendor assessment and
development is a key component of the companys strategy for achieving Total Quality.
Quality improvement initiatives required for both evolutionary improvements are in
place. Concept of 5s, kaizen and Quality Circles are practices at grass root level. BEML is
actively pursuing six sigma methodologies to achieve breakthrough in process/ product
improvements. In 2006, it has launched company-wide six sigma movement ant the initiative
has gain momentum with many on-going projects progressing well and completed projects are
being implemented successfully.
Quality Function Deployment is actively pursued in the organization. Cross functional
teams routinely visit customer sites to capture Voice of Customer. Such actions have resulted in
incorporating a number of products improvements to the fine tune products features on both in
house developed as well as collaborated products to suit specific customer requirements and
operating conditions.
BEML actively promotes small group activities to encourage Quality Culture at all
levels. The small group activity teams regularly participate in regional/ national/ international
level competition end have achieved recognition as meritorious performers. It is our proud
privilege to mention that our QC teams have raised the BEML flag high in the international arena
by winning Gold Medal in the ICQCC-2008 and silver Medal in the ICQCC-2009
competition. Quality Circle Team WHEEL from EM Division, KGF Complex have been
conferred with the Life Time Award as the LONGEST & ACTIVE QUALITY CIRCLE by M/s.
QCFI during 2010.

41

Mining & construction Business

BEML Limited offers a comprehensive and diverse range of mining machinery for both
opencast and underground mines. BEML produces machines such as Electric Rope Shovels,
Hydraulic Excavators, Bulldozers, Wheel Loaders, Wheel Dozers, Dump Trucks, Motor Grades,
Pipe Layers, Tyre Handlers, Water Sprinklers and Backhoe Loaders. BEML has ventured into
underground mining with products such as Side Discharge Loader, Load Haul Dumper, Winch,
Winder, Granby Car, Skip etc. The boom in the mining industry has opened up new avenues for
BEML in the contract mining.
BEML has formed a joint venture company with its partners, Midwest Granite Limited and Pt.
Sumber Mitra Jaya, Indonesia to take up contract mining within the country and overseas. The
joint ventures company is called BEML-Midwest Limited and the company will bid for coal and
other mining contracts in India and abroad.
Rail & Metro Business
BEML is expanding its infrastructure to meet the greater needs of metro projects coming
up in the country. Also, BEML supplies equipment to Indian Railways which include Integral
Rail Coaches, Overhead Electric Inspection Cars, Postal Vans, AC/ DC Electric Multiple Units,
D-EMUs, Utility Track Vehicles, Track Laying Equipment, Broad-Railbus, Treasury Vans, Spoil
Disposal Units etc.
Defence Business
Being Indias leading defence equipment manufacture, BEML Limited keeps the Indian
Army and other defence forces abreast with state-of-the-art military equipment. The company
manufacture variants of Tatra vehicle for all terrain operations including Bridge Layer, Field
Artillery Tractor, Medium & Heavy Recovery Vehicle, Pontoon Mainstream Bridge systems,
Crash Fire Tenders, Mobile Mast Vehicle, etc.. BEML also supplies Engineering Mine Ploughs,
Tank Transportation Trailers, Weapon Loading equipment, Armoured Recovery vehicle, Milrail
coaches and Wagons apart from Aircraft Weapon Loading Trolley and Aircraft Towing Tractor.
BEML plays a stellar role in the countrys Integrated Guided Missile Development Project by
supplying ground support vehicles. The company has also created a world class test track at its
KGF Complex to test defence equipment and vehicles.
42

Aerospace Business
BEML Limited, in its drive towards continuing diversity, from its current product
configurations of Mining & Constructions, Rail & Metro and Defence Sectors, has forayed into
Aerospace business. Taking advantage of the global and domestic opportunities available in the
fast expanding aerospace market in India, and the Off-Set policy laid down for defence
procurement by Government of India, BEML launched its aerospace vertical in its technology
division during the year 2007 to exploit the potential of the e-engineering services in the
aerospace domain. Subsequently, a new aerospace manufacturing division was launched during
Aero India 2009.
The Aerospace Vertical of the Technology Division provides offer high- quality
customized engineering services & solutions, extensive and inherent strength in product design
& development. Technology Division has certifications of CEMILAC, ISO 9001:2008 & NABL.
BEML is already supporting the aerospace operations by supplying Ground Support
Equipment such as Aircraft Towing Tractor(ATT), Multi Purpose Weapon Loader(MPWLBheema) and Crash Fire Tender (CFT). The manufacturing division has scaled up its activities
through manufacture and supply of wide variety of jigs, fixtures, Ground Support and Test
Equipment. The other areas of concentration will be manufacture of gears and hydraulic
aggregates to aeronautical standards as BEML has core strength in these areas. To progress
further, the activities are planned in a phased manner with additional infrastructure to
manufacture sheet mental and CNC components leading to fabrication of subassemblies and
major assemblies, Landing Gears of aircraft, manufacture of composites with the ultimate
objective of building and testing fixed wing and rotary wing aircraft, assembly of UAV from kits
and upgrades of aircraft and helicopters.
Leader in India and Going Global
BEML Limited has an expanding international presence in more than 52 countries spread
Syria, Tunisia, UAE, Jordan, Suriname, South Africa, UK, Sri Lanka, Bangladesh, Philippines,
Indonesia, Oman, Nepal etc. An Export House with Star Exporter status, BEML has proven
strengths in handling large-scale trading and counter-trade and has pushed the export of
engineering goods as well as other equipment. Plans are in the offering to set up assembly
operations at Morocco, Suriname and Indonesia in partnership with local players. Besides,
43

BEML has an international office-cum-warehouse in Malaysia and an international procurement

office in China. BEML has dealers / distributors operating from Syria, Tunisia, Sri Lanka & UAE
and representatives in Morocco and Suriname.
A reliable product with comprehensive service packages attracts new buyers and retains
existing customers. BEML strategically plans on Fleet Optimization Study (FOS),
Recommended Users Profitability (RUP) study and comprehensive after sales support services
to achieve higher level of customer satisfaction.
Global Management of BEML
Company has opened its overseas offices in Malaysia and China for sourcing components
and parts as well as for promoting in these markets. BEML Brasil Industrial LTD was set up in
Brazil for sales of mining and construction equipment in Latin American countries with a phase
local manufacturing program. The company opened its sales and service centre in Indonesia in
August 2009.
Trading Division
New Products & Solutions to your new needs
Trading Division deals with non-company products for international trade- both import &
export and for the customers within the country and abroad. Trading Division of BEML has been
awarded the status of TRADING HOUSE.
The Division currently deals in a wide variety of items. It also plans to handle all India
distribution of industrial products & intermediaries from global suppliers. Exports /Imports of
high value projects of ARFF, Soft Shelters, Security & Surveillance on UGVs etc.
To enable us to serve you better and respond to your queries quickly and accurately, they
request customers to provide their details of specific needs/ proposals. Company would prefer to
work on projects starting with customer needs and finally arranging a complete solution mention
the needs, especially facilitating the same for Government, Quazi Government and other major
organization.

44

Human resources
HR vision:
HR will be a dynamic, Pro-active & strategic business partner to enable BEML to
maintain its leadership position in all its business domains.
HR mission:

To continuously innovate, evaluate and realign HR practices with the environment,

Business strategies / directions and employee expectation to maintain relevance and to

attract, nurture and retain talent.

To foster a spirit of creativity and innovation amongst the employees by facilitating
creation of a rewarding, inspiring motivational organizational climate.

45

To act as a champion of change and managing the people implication of organizational

changes

HR strategies:
Align all HR activities with organizations business strategies

Lead and manage organizational changes.

Institutionalization of competency based HR systems/ processes
Building employee commitment
Building enabling systems

Employee empowerment

Build ownership
Recognition of ideas
Enabling managers to take decisions within the policy framework.
Provide feedback and resolve issue.

Develop leadership capability

Identifying critical leadership competencies

Creating a context for leadership development
Development coaching and performance feedback
Nurture leadership talent
Put in place development systems, succession plans, training, programmers and projects,
mentoring opportunity and management reviews teams.

Manage attrition and retention of key personnel

Differential reward policy

Creation of a performance culture for nurturing key talents.
Building leadership commitment
Encouragement to exemplary employees
Increase in variable pay component based on performance.

Efficient and effective service Delivery

Ensure efficient & effective service delivery

Standardization & simplification of HR processes & systems
Automation of routine services
Connect to employees & customers value propositions
Outsourcing
46

Cost Reduction/ optimization

Develop proactive strategies on employee relations

Fostering a culture of discipline & managing discipline

Proactive Industrial relation management
Corporate social responsibility.

Research and development

R&D center at KGF was established in1984, which is the biggest development centre in
India. It is recognized by Department of Science. This centre is included a vital contribution
towards strengthening the earthmover and related industries in the country. Comprehensive
facilities in highly specialized areas are available at the centre. Extensive computerizations have
led to highly advanced technology development in various areas of activities in BEML R&D
Division like CAD Centre, Fluid Power, Power-Line Testing and Structural Engineering.
Behind the success of R&D division is undoubtedly the brainpower of its highly
competent engineers, who are specialized in advanced fields of mechanical design, engine
technology, structural engineering, material science, fluid power and electronics. In view of the
challenge of diversification plans in the fields of mining, railways, defence, robotics and
industrial automation, the company plans to augment the strength of R&D professionals by
reducing by recruiting skilled manpower.
Vision
BEML will build the future business around its core competencies in high tech engineering
products for defence and chosen areas by developing people competencies, upgrading
technologies, innovating and adding value to the products with in-house R&D and HRD efforts
aiming towards self-reliance.
Mission:
BEML will strive to maintain a balanced growth with profitability in all its activities and
strive for domestic market and global presence by developing a strong brand name.

R&D Focus
47

 To design and develop State-of the-Art products to meet the demands of core sectors
viz. Defence, Mining, Railways and Infrastructure.
Build total self-reliance in earthmoving and related technology
Update current products for higher performance, reliability and be a leader in the field
Create test facilities for evaluating equipment and aggregates performance and
reliability.
R&D Activities

Study and Evaluation of Technological Innovation

Up gradation of Existing Products
Development of New Products through In-house R&D
Introduction of New Products though Technology Transfer
In-House Development of Critical Hi-Tech Aggregates
Joint development with Industries & Academic Institutions
Representing BEML in various Technology Forums
Patenting and Intellectual Property Rights (IPR) Activities
Collaborative R&D with DSIR Laboratories
Collaborative Product Development with Funding Agencies like TIFAC
Company Standardization Activities
Technology absorption

Electronics Group
Todays increased safety, operator comfort; less burden on environment and reduced
operating expenditure are the driving forces of increasing use of electronics on mining &
construction equipment. In order to promote use of electronics on BEML equipment to gain
competitive edge a specialized electronics group has been established
The main objectives include:
To develop new basic technologies in vehicle sub-systems and integrate to achieve total
power train control for optimum performance and to automate work function.
To induct state-of-the art microelectronics based technology to develop customized,
compact, intelligence and sophisticated latest generation mechatronic modules
Indigenization of defence/ mining equipment electrical/ electronic items
To develop Telemetry & Radio Control technology for vehicle application
Automation of test rigs of R&D labs for precision control and data acquisition to improve
test technology.

48

 To provide calibration and services support of instrumentation and control system of test
rigs Development activities.
Awards for R&D Excellence

DSIR Award- Outstanding R&D Achievements: 1990-91

CII Award- Excellence In Technology: 1986-87
SEI Award- company Standardization 1990, 1992 & 1995
Accredited For calibration of Pressure & Flow.

AWARDS & ACHIEVEMENTS

CMD received the SCOPE Award for Excellence and Outstanding Contribution to the

Public Sector Management-Medium PSE Category D for the year 2006-07

CMD received Raksha Mantris Award for BEST DEFENCE PSU for the year 2007-08
CMD received the BEST PSU AWARD instituted by Indias leading B school, Indian

Institute & management held at Bangalore on 25th March 2009.

CMD received the Raksha Mantris Award for Excellence for Best Performance in

Exports held at new Delhi on 7th November 2008.

Conferred Star Performer Award by engineering export promotion council, southern

region on 24th November 2007

Award for Excellence in Technology and Innovation from confederation of Indian

Industries (CII)
Received Golden Peacock Award for Innovation Management from Institute of directors

on 14th January 2007

Ranked 4th Best Wealth Creator among 21 Best Wealth Creators of India and the 1 st
among PSU (US$ 1 in 2002 has appreciated to US$ 62.64 in 2007) by Dalal street

magazine.
Conferred Mini Ratna Category -1 Status by ministry of defence, Government of India

during August 2006.

Received Golden Export Award form Government of Karnataka, India during August
2006.

49

Received Enterprise Excellence Award from Indian Institute of Industrial Engineers

during May 2006.

Award for Outstanding Export Performance from Engineering Export Promotion

Council (EEPC) during February 2005

Award for The Largest and Most Profitable Construction Equipment Company -1 st Rank

from construction world in 2007

Awarded UDYOG RATAN AWARD (Gold Trophy) by Institute of Economic Studies,
New Delhi, during October 2004

2.4 ORGANISATION STRUCTURE

50

51

52

Truck Division (Mysore Complex)

Truck Division at Mysore, located around 130 kms from Bangalore, was established in 1986
with a total area of 600 acres. Asias biggest Dump Truck Factory in Indias is located at Truck
Division, Mysore.
The Products manufactured at Truck Division are:
Mining & construction

Dump Trucks (Mechanical Drive)

Dump Trucks (Electrical Drive)
Water Sprinkler
Motor Grader

Defence
Tatra 6x6 (Euro II)
Air Craft Weapon Loader
Others
Air Craft Towing Tractor
Air Craft Towing Tractor with Ground Power Unit
Manufacturing facilities
Dumper Assembly
Welding Robot
5 Major Hangers
Plate/ Fabrication Shop
Machine Shop
Light Assembly
Major Assembly
Final Testing & Paint Shop
Equipment Test Track

Central Test Laboratory NABL Accredited

53

To Ensure Quality of Conformance, Precision Measuring, Test Equipments and their

Calibration. Having Facility for Testing of Materials, Castings, Forgings, and Raw Materials.
Oils and Paints Rubbers.
Test

Facility

includes

Mechanical

Tests,

Chemical Analysis,

Metallographic,

Radiography, Ultrasonic Testing, Magnetic Particle Inspection and Dye Penetrate Testing.
Engine Division (Mysore Complex)
BEML Limited, the trusted name for 40 years in mining and construction industry,
channels its expertise into the priority sector of energy with manufacture of fuel-efficient diesel
engines. Established in the year 1991 in Mysore, with technical know-how from Komatsu Japan,
BEML diesel engines are built for maximum reliability, high performance and lasting value.
Engine division manufactures heavy duty Diesel Engines for application on a wide
variety of Earth Moving, Mining and Construction Machinery. Apart from these, the engines are
also offered for other industrial applications as well as diesel generator sets. BEML Engines are
used on Bull Dozers, Dump Trucks, Motor Grades, Wheel Loaders, Pipe Layers, Hydraulic
Excavators, Loading Shovels, C Crane, Aircraft Towing Tractors, Backhoe Loaders, Water
Sprinklers, Water Well Rigs and DG sets. These Engines are capable of operations over a wide
terrain right from sea level conditions to high altitude (20,000ft) as well as under zero conditions.
Engine series

105 Series - 105 ~ 170 HP

125 Series - 140 ~ 250 HP
140 Series - 300 ~ 400 HP
170 Series 400 ~ 700 HP

Salient Features of BEML Engines

High Quality
Proven Reliability
Longer Life
Standard Fitment

Heavy Duty
Economical Operation
Wide Application
Optional Fitment

Manufacturing Facilities

54

Manufacturing shop consists of state-of-the-art technology dedicated machines for

manufacture of precise engine components like Camshaft, Connecting Rod, Flywheel Housing,
cylinder Head & Cylinder Blocks. Camshaft and Connecting Rod are completely dedicated to
manufacture similar type of components with high precision and accuracy requirements.
High technology machining facilities:

Auto straightening press

CNC camshaft grinding machine
Connecting rod
Cylinder block
Flywheel housing
Oil cooler cover & housing
Front cover
Cylinder Head
Cylinder liner
Honing
Flexible manufacturing system
Value seat & value guide generating machine

Aerospace Manufacturing Division

The Aerospace Manufacturing Division (ASMD) of BEML was launched during
February 2009 to foray into the aerospace domain as a diversification strategy to exploit the
manufacturing opportunities likely to be generated due to the defence offset policy of
Government of India. The vision of the aerospace manufacturing unit is to become a prominent
player in aerospace sector to support both domestic and global aerospace industry in defence and
civil aircraft needs.
Marketing and Sales
BEML Limited has nationwide marketing network for sales and services of construction
equipment spread across 22 states, the National Capital Region and 2 union Territories.
Apart from the domestic market penetration, BEMLs machines reach over 52 countries
worldwide covering Asia, Africa, Europe, Latin America and the Middle East. With the plans to
increase global presence, BEML has set up overseas office and entering strategic alliances.
Shoring up its international Business is an immediate priority to BEML. It has established its

55

international offices in China and warehouse at Malaysia. BEML has already established
marketing base in Brazil, which will be followed by an assembly plant.
Application Engineering
BEML offers application engineering to its customers, which includes preparation of prefeasibility reports, equipment selection studies, total fleet optimization solutions and
customization of equipment, Recommendation-for-user-Profit (RUP) studies enable customers to
improve machine productivity and reduce operating costs.

56

CHAPTER 3
ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION:

57

The analysis of data is a process of inspecting, cleaning, transforming, and modeling data with
the goal of highlighting useful information, suggesting conclusions, and supporting decision
making. 21 Questions in each Questionnaire was distributed to 50 respondents of the various
departments of the company. The analysis and interpretation is done on the following basis:
The questionnaire distributed as open ended and objective type. A question followed with four
options as mentioned below:
1. Objective type:
2. Close ended type:
The respondent had to tick on whichever answer he/she found relevant.

Analysis of the questions

Each question was individually analyzed and pie chat was used as the tool for analysis. Based on
the occurrence, chart was drawn and inference of the same statement was presented. The analysis
was done considering the responses of employees for individual question.

Percentage
Percentage is a special kind of ratio and is used to make companies between two or more data.
NUMBER OF RESPONDENTS
PERCENTAGE = _________________________________

100

TOTAL NUMBER OF RESPONDENTS

ANALYSIS AND INTERPRETATION

Q1. How long employees have been working in BEML
58

Options

No. of employees

Percentage (%)

Less than 1 year

1-5 years

18

5- 10 years

16

32

More than 10 years

23

46

Total

50

100

2% 9%
50%

16%
23%

Less than 1 year

1-5 years
5- 10 years
More than 10 years
Total

Interpretation:
From the above table, it is cleared that, 4% have less than 1 year experience in BEML , 18%
have experience from 1-5 years, 32% have experience from 5-10 years, around 46% have more
than 10 years.

Q2. Comfortable with the work environment

Opinions

No of employees

Percentage (%)
59

Agree

22

44

Strongly Agree

18

36

Disagree

Strongly Disagree

Neutral

10

20

Total

50

100

22%
50%

18%
10%

Agree
Strongly Agree
Disagree
Strongly Disagree
Neutral
Total

Interpretation:
From the above table, it is clear that, 44% of employees have agreed with comfortable working
environment in the organization, 36% of the employees have strongly agreed with comfortable
working condition of the organization and rest 20% of employees have neutral response towards
comfortable working environment of the organization.

Q3. Management solve all the grievances

60

Opinions

No of employees

Percentage(%)

Agree

25

50

Strongly Agree

Disagree
Strongly Agree

8
0

16
0

Neutral

17

34

Total

50

100

25%

Agree
Strongly Agree

50%

8%
17%

Disagree
Strongly Agree
Neutral
Total

Interpretation:
From the above table it is clear that, management solves 50% of employee grievances, 16% of
employees have disagreed with the management solving their grievances and 34% of employees
have neutral opinion on this.

Q4. Differences of opinion, values, and beliefs are respected

61

Opinions

No of employees

Percentage (%)

Agree

12

24

Strongly Agree

16

Disagree

14

Strongly Disagree

Neutral

24

48

Total

50

100

12% 8%
49%
23%

Agree

7%

Strongly Agree

2%

Disagree
Strongly Disagree
Neutral
Total

Interpretation:
From the above table it is clear that 24% of employees have agreed with the differences in
opinion, values and beliefs are respected by each other, 16% of employees have strongly agreed
that the opinions, values and beliefs are respected by each other, 4% have strongly disagree that
their difference in opinion values and beliefs are not respected by each other. 48% of employees
have neutral opinion on it.

Q5. There have been some improvements in the working environment of the organization
62

Opinion

No of employees

Percentage (%)

Agree

25

50

Strongly Agree

15

30

Disagree

Strongly Disagree

Neutral

16

Total

50

100

25%
50%
15%
2%
8%

Agree
Strongly Agree
Disagree
Strongly Disagree
Neutral
Total

Interpretation:
From the above table it is clear that 50% of employees have agreed that there have been some
improvements in working environment of the organization. 30% of employees have strongly
agreed with some improvements in working condition of the organization, 4% employees have
disagreed with it and rest 16% have neutral opinion on the improvement in working environment
of the organization.

63

Q6. Management provides health insurance and accidents benefits

Opinions

No of employees

Percentage (%)

Agree

38

76

Strongly Agree

10

20

Disagree

Strongly Disagree

Neutral

Total

50

100

Agree
38%

50%

Strongly Agree
Disagree

2% 10%

Strongly Disagree
Neutral
Total

Interpretation:
From the above table it is clear that, 76% of employees have agreed that the management
provide health insurance and accidents benefits, 20% of employees have strongly agreed with it,
and rest 4% of employees have disagreed with the management providing health insurance and
accidents benefits in the organization.
64

Q7. Training programme are conducted effectively

Opinions

No of employees

Percentage (%)

Agree

27

54

Strongly agree

16

Disagree

Strongly disagree

Neutral

11

22

Total

50

100

27%
50%

8%
4%
11%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:

65

From the above table it is clear that 54% of employees agreed that the training programme are
conducted effectively and it help them in performing job better, 16% employees strongly agreed
with this, 8% employees disagreed with this, and 22 % employees have neutral opinion on it.
Q8. The organization has provided guidance and assistance to move further in the set of
career
Opinions

No of employees

Percentage (%)

Agree

28

56

Strongly agree

Disagree

10

Strongly disagree

Neutral

17

34

Total

50

100

Agree

34%
56%
10%

Strongly agree
Disagree
Strongly disagree
Neutral

Interpretation:

66

From the above table it is clear that, 56% of employees has agreed that management provides
guidance and assistance to move further in the set of career path, 10% of employees has
disagreed with it, and 34% employees have neutral opinion on this.

Q9. There is a follow up action and feedback given on the employees

Opinions

No of employees

Percentage (%)

Agree

32

64

Strongly agree

Disagree

10

20

Strongly disagree

Neutral

16

Total

50

100

32%
50%
8%

10%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:

67

From the above table it is clear that, 32% of employees say that there is follow up action and
feedback given on the employees performance, 10% of employees disagreed with it, 8%
employees has neutral opinion on this.

Q10. There is reward system for the effective performance by the employees performance
Opinions

No of employees

Percentage (%)

Agree

24

48

Strongly agree

Disagree

18

Strongly disagree

Neutral

17

34

Total

50

100

24%
50%

9%
17%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

68

Interpretation:
From the above table it is clear that, 24% employees agreed that there is reward system for
effective performance by the employees, 9% employees have disagreed with it, 17% of
employees have neutral opinion on it.

Q11. The organization culture is contributing towards the organisational success

Opinions

No of employees

Percentage (%)

Agree

31

62

Strongly agree

10

Disagree

Strongly disagree

Neutral

14

28

Total

50

100

31%
50%
14%

5%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:
69

From the above table it is clear that, 31% of employees have agreed that organization culture is
contributing towards the organisational success, 5% of employees have strongly agreed with it,
14% employees have neutral opinion on it.

Q12. The leaders and managers are role models of openness

Opinions

No of employees

Percentage (%)

Agree

20

40

Strongly agree

14

Disagree

10

Strongly disagree

Neutral

18

36

Total

50

100

Agree

20%
7%
5%

50%
18%

Strongly agree
Disagree
Strongly disagree
Neutral
Total

70

Interpretation:
From the above table it is clear that, 20% of employees has agreed that the leaders and managers
are role models of openness and inclusion of different professionals, 7% of employees have
strongly agreed with this, 5% of employees disagreed with this, and 18% of employees have
neutral opinion on this.
Q13. The safety measures followed in handling hazardous machines is appropriate
Opinions

No of employees

Percentage (%)

Agree

25

50

Strongly agree

Disagree

Strongly disagree

Neutral

21

42

Total

50

100

25%
50%

4%
21%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:
71

From the above table it is clear that, 25% of employees have agreed that there is safety measures
followed in handling hazardous machines in appropriate, 4% of employees disagreed with it and
rest 21% has neutral opinion on it.

Q14. Leadership helps in maximizing the organization results

Opinions

No of employees

Percentage (%)

Agree

20

40

Strongly agree

12

24

Disagree

Strongly disagree

Neutral

18

36

Total

50

100

Agree

20%
50%

12%
18%

Strongly agree
Disagree
Strongly disagree
Neutral
Total

72

Interpretation:
From the above table it is clear that, 20% of employees tell that leadership helps them in
maximizing the organization results, 12% of employees have strongly agreed on it, and rest 18%
of employees has neutral opinion on this.

Q15. Interpersonal communication and relationships contributes to a organization

productivity
Opinions

No of employees

Percentage (%)

Agree

23

46

Strongly agree

15

30

Disagree

Strongly disagree

Neutral

12

24

Total

50

100

23%

Agree
Strongly agree

50%

15%
12%

Disagree
Strongly disagree
Neutral
Total

73

Interpretation:
From the above table it is clear that, 23% of employees agrees that interpersonal communication
and relationships contributes to a organization productivity, 15% of employees has strongly
agreed on it, rest 12% of employees has neutral opinion on this.

Q16. Senior management treats the employees fairly

Opinions

No of employees

Percentage (%)

Agree

20

40

Strongly agree

Disagree

Strongly disagree

15

30

Neutral

13

26

Total

50

100

Agree

20%
2%
15%

50%
13%

Strongly agree
Disagree
Strongly disagree
Neutral
Total

74

Interpretation:
From the above table it is clear that, 20% of employees has agreed that the top level
management treats employees fairly, 2% of employees strongly agreed with it, 15% of
employees has feels that the senior management doesnt treat fairly and rest 13% has neutral
opinion on it.
Q17. Clearness of goals and objectives
Opinions

No of employees

Percentage (%)

Agree

12

24

Strongly agree

Disagree

28

56

Strongly disagree

Neutral

10

20

Total

50

100

12%
50%

Agree
28%

10%

Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:
75

From the above table it is clear that, 12% of employees agreed that the organization goals and
objectives are clear to them , 28% of employees say that the organization goals and objectives
are not clear to them and rest 10% of employees has neutral opinion on this.

Q18. Employees are free to express their views and suggestions in decision making process
and the management will consider their views and suggestions
Opinions

No of employees

Percentage (%)

Agree

12

24

Strongly agree

Disagree

25

50

Strongly disagree

Neutral

13

26

Total

50

100

12%

Agree
25%

50%
13%

Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:

76

From the above table it is clear that, 12% of employees have agreed that employees are free to
express their views and suggestions in decision making process and the management will
consider their views and suggestions, 25% of employees has disagreed with this, and rest 13%
has neutral opinion on it.

Q19. This organization helps me to enhance my career growth

Opinions

No of employees

Percentage (%)

Agree

28

56

Strongly agree

12

24

Disagree

Strongly disagree

Neutral

10

20

Total

50

100

28%
50%
12%
10%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Interpretation:
77

From the above table it is clear that, 28% of employees say that the organization helps them to
enhance their career growth, 12% employees strongly agree with this, remaining 10% of
employees are with neutral opinion.

Q20. This organization is right for anyone who wants to feel a sense of equal opportunity to
grow and develop professionally and personally
Opinions

No of employees

Percentage (%)

Agree

20

40

Strongly agree

Disagree

12

Strongly disagree

Neutral

24

48

Total

50

100

Agree

20%
50%

6%
24%

Strongly agree
Disagree
Strongly disagree
Neutral
Total

78

Interpretation:
From the above table it is clear that, 20% employees says that this organization is right for
anyone who wants to feel a sense of equal opportunity to grow and develop professionally and
personally, 6% of employees has disagreed with it, rest 24% of employees has neutral opinion on
this.
Q21. Newcomers are welcomed and integrated quickly
Opinions

No of employees

Percentage (%)

Agree

28

56

Strongly agree

12

24

Disagree

Strongly disagree

Neutral

16

Total

50

100

28%
50%
12%
8% 2%

Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

79

Interpretation:
From the above table it is clear that, 28% of employees agree that the new comers are welcomed
and integrated quickly, 12% of employees strongly agree with this, 2% of employees dont agree
with it, and the remaining 8% of employees has neutral opinion on this.

CHAPTER 4
SUMMARY OF FINDINGS

80

SUMMARY OF FINDINGS:

During the course of the project it was found that:

o Majority employees were comfortable with the working environment of the organization.
o The employees feel that their grievances are solved by the management.
o Most of the employees were found that the differences of opinions, values and beliefs are
respected by each other.
o Majority of employees were found saying that in the recent past, there has some
improvements in the working environment in the organization.
o High percentage of employees found saying that the management provides health
insurance and accident benefits
o Maximum number of employees Training programme are conducted effectively and it
help you in performing your job better
o Majority of employees of the organization says that the organisation provides guidance
and assistance to move further in the set of career path.
o Very high percentage of employees there is follow up action and feedback given on the
employees performance.
o Most of the employees there is reward system for the effective performance by the
employees
o Maximum number of employees in the organization culture is contributing towards the
organizational success
o Most of employees says that the leaders and managers are role models of openness and
inclusion of different professionals
o Majority of the employees have agreed that the safety measures are followed in handing
hazardous machines is appropriate.
81

o Maximum number of employees says that the leadership helps in maximizing the
organization results.
o Almost all the employees have strongly agreed that interpersonal communication and
relationships contributes to a organization productivity
o Maximum employees have the opinion that the senior management treats them fairly
o Majority of the employees have agreed that as an employee the organisation goals and
objectives are clear to them
o Most of the employees have agreed that they are free to express their views and
suggestions in decision making process and the management will consider their views
and suggestions.
o Maximum number of employees has said that the organization helps me to enhance their
career growth
o Majority of the employees agrees that the organization is right for anyone who wants to
feel a sense of equal opportunity to grow and develop professionally and personally.
o All the employees have agreed that the newcomers are welcomed and integrated quickly.

82

CHAPTER 5

CONCLUSION AND SUGGESTIONS

83

CONCLUSION:
In this project I have analyzed employee perception towards organization culture of BEML. The
study was conducted among 50 employees and collected information through structured
questionnaire.
In this project I have analyzed that numerous attributes of organizational culture have significant
positive influence over the performance of organization. The surveys has mapped out different
cultural aspects of organizations as well as showed the vital relationship between culture and
performance. The qualitative research facilitated the survey with its robust and in-depth
observations. Through robust and in-depth observations, the paper explained how employees
beliefs, norms, gestures and all relevant aspects of organizational culture impacted on firms
performance. The findings of the project significantly demonstrate both positive and negative
mannerism of culture which has significant consequences on employees as well as firms
performance. This project has covered an extensive range of cultural traits which include from
behavioral aspects to gestural attributes. The topic also asserts that organizational culture is an
open system approach which has interdependent and interactive association with organizations
performance. The sophisticated and extensive nature of this study would add value to
organization studies discipline by providing an important qualitative perception towards
organizational culture and performance and would initiate further discussions to create an
effective framework between organizational culture and its impact on performance. However, the
paper might have some limitations. For instance, outcomes of the survey are drawn by
observation, the thoughts and perceptions of the different managerial level of the organization.
Therefore, this process might be affected by some perceptual errors of top level personnel of the
organization.

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Organizational culture is concerned with how employees perceive the characteristics of an

organizations culture, not with whether or not they like them. That is, its a descriptive term.
This is important because it differentiates this concept from that of job satisfaction.

SUGGESTIONS

For the betterment of organization culture in the organization based on the findings of the present
study, the following practical suggestions may be considered:

Employees should be given opportunity to do innovative things at the work place. it

enhance the Organisational culture.

Company should update the latest news to the employees. So it is better to make some
changes in the organization.

Suggestion schemes should be encouraged with constant response given to employees.

This will motivate them to come up with more innovative and constructive suggestions.

Co-ordination and co-operation among employees must be encouraged in order to

cultivate the relationships with their colleagues.

The company should compile a specific report on employee satisfaction as well as dissatisfaction.

The company should resolve the complaint and conflict among the employees.

Company should provide better opportunity for career growth of the employees

BEML is a manufacturing company they should be provides safety equipment in the

hazardous work place.

Co-operation level among different departments may be improved for better efficiency.

Create a culture of open communication through frequent participative meetings, picnics,

off-sites.
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Reward and recognize individuals who display exemplary performance during team
meetings, quarterly meets, town halls etc.

Develop a career management plan for individuals

Conduct widespread communication to chart out the growth path for each individual

STEPS FOR GOOD ORGANISATIONAL CULTURE:

1. Create a fun corporate culture environment.
Make your employees feel that theyre playing while working. Holding sports, family days,
charitable activities to company outings take off some stress from your employees.
2. Live your mission.
Embody what your company stands for and show your employees that you are transparent and
working with integrity as a leader. If youre just starting out, get your employees involved in
drawing out the company mission.
3. Foster effective communication.
Communication opens the line to suggestions and criticisms and involves important stakeholders
in decision-making. Engaging employees even to trivial matters such as wall color options to
larger issues not only give them the voice but also makes them feel their ideas are valuable too.
4. Celebrate victories.
Recognize the efforts your employees put into their jobs. Whether closing a deal or getting the
top rating, take a break and celebrate even in small ways. Give your top-performing a day off,
get a cake and champagne or give him a congratulatory note, whichever way, emphasize how his
achievement is the companys achievement as well.
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5. Offer variety.
Give your employees the choice of working on different assignment or schedule to enhance
productivity. While it is generally believed that working on a task you are more familiar with
breeds productivity, the monotony will soon wear him out. Some companies do so by trusting
their employees to work on schedules they are most productive.
6. Get everyone involved.
While the need for upper management is necessary to direct the company in achieving common
goals, it is also necessary to inform and involve the employees in critical decisions.
7. Be transparent.
Transparency eliminates the need to question the intention of the leaders in the organization, thus
builds trust and loyalty. If you let employees see how you spend the company money on a
business trip, they will likely trust you more.
8. Be supportive of employees goals.
Get to know your employees a little at a more intimate level and encourage them in their dreams.
Giving them support through small talks, advices and sharing experiences can significantly
increase employee loyalty and productivity.
9. Be diplomatic.
Diplomacy in the workplace is an important concept. Listen to what your employees got to say
without checking your computer or mobile phone in the middle of the conversation, investigate
negative claims before making decisions and practicing fair treatment among old and new
employees all entail diplomacy. Show your employees that you are listening with sincerity, does
not practice bias, and they will trust you are arriving at the soundest decision possible.

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10. Implement reviews.

Regularly check employee performance and take note of both the excellent achievements and
areas that need improvement.
The concept of company culture could not be undermined as this is the space you give your
employees to work on. Take out the barriers, insert fun, improve communication lines and
showing transparency and youre giving your employees a healthy working environment that
fosters productivity and efficiency

BIBLIOGRAPHY

Books

Akin, G., & Hopelain, D. (1986). Finding the culture of productivity.

Organizational Dynamics. Organizational Behavior by K.Aswathappa
Culture and organisational behavior- Jai B.P. Sinha
Organization behavior- Fred Luthans
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Organisational theory and Design- Daft

Human Resource Management Gary Dessler

Magazines

Business today
Human Capital - Cultural Inheritance

Websites

www.bemlindia.com
www.google.co.in
www.hr.strategy.com
www.citehr.com

ANNEXURE

QUESTIONNAIRE

Respected Sir/Madam
I am Mohitha C.M of final year MBA, student of BIMS As partial
fulfillment of the requirements for the completion of the degree; I am
undertaking a project titled, Impact of Organizational Culture on Employee
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Productivity. All information gathered would be kept confidential and it will be

used for academic purpose only.
Thanking You,

Yours Sincerely,
Mohitha C.M

Personal Details
1 Gender
Male

Female

2 Age
2030

31-40

41-50

Above 50

90

Marital Status
Married

Single

4 Designation or Grade
5 Department

:
:

6 Experience
6-10 yrs
16-20 yrs

11-15 yrs
20-25 yrs

Above 25 yrs

6 Salary
10000-20000
30000-40000
Above 50000

20000-30000
40000-50000

Since how long have you been working in BEML, Mysore?

a) Less than 1 year

b) 1-5 years

c) 5-10 years

d) More than 10 years

2. In this organization I feel comfortable with the work environment

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
3

The management solve all my grievance

a) Agree

b) Disagree
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c) Strongly agree

d) Strongly disagree

e) Neutral
4

Employees respect others differences of opinion, values and beliefs

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
5

In the recent past, there have been some improvements in working condition of the
organization
a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
6

The management provides health insurance and accidents benefits to the employees

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
7

Training programme are conducted effectively and it help you in performing your
job better

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral

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The organization has provided guidance and assistance to move further in the set of
career path

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
9

There is follow up action and feedback given on the employees performance

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral

10 There is reward system for the effective performance by the employees

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
11 The organization culture is contributing towards the organizational success
a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
12 The leaders and managers are role models of openness and inclusion of different
professionals.

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a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
13 The safety measures followed in handling hazardous machines is appropriate
a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
14 Leadership helps in maximizing the organization results
a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
15 Interpersonal communication and relationships contributes to a organization
productivity

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
16 Senior management treats the employees fairly

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
17 As an employee the organization goals and objectives are clear to me
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a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
18 Employees are free to express their views and suggestions in decision making
process and the management will consider their views and suggestions

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral

19 This organization helps me to enhance my career growth

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
20 This organization is right for anyone who wants to feel a sense of equal opportunity
to grow and develop professionally and personally

a) Agree

b) Disagree

c) Strongly agree

d) Strongly disagree

e) Neutral
21 Newcomers are welcomed and integrated quickly
a) Agree

b) Disagree
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c) Strongly agree

d) Strongly disagree

e) Neutral

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