Factors Affecting Job Satisfaction (by the Employees)

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A Study on Organizational Culture and Its Relationship with Job Satisfaction in Manufacturing and Information Technology Sectors

Dr. Koteswara Rao, Dr. P.T.Srinivasan and S.George

Dr.P.K.Kotewara Rao is a senior executive in Southern Railway

Dr.P.T.Srinivasan, professor, Department of Management Studies, University of Madras

S.George, doctoral research scholar in Management, university of Madras

ABSTRACT

Organizational culture has a significant effect on how employees view their organizational responsibilities and their job satisfaction. With increasing globalization, a greater knowledge of organizational culture and its effect in non-western cultures can be beneficial for practicing leaders and decision makers. This study explores the association between organizational cultural values and employee satisfaction in manufacturing and Information Technology companies in India. Surveys were distributed to 4 manufacturing companies and 4 IT companies. The sample size was 461. Significant findings are: (1) Organizational culture differs in terms of the mean scores of its dimensions between manufacturing and the sectors. (2) Employee job satisfaction differes between manufacturing and IT sectors, and the level of job satisfaction is high among employees in the IT sector compared to their counterparts in the manufacturing sector. (3) Dimensions of organizational culture explain significantly the variance in job satisfaction of employees in both manufacturing and IT sectors. INTRODUCTION

Organizational culture has been perceived to have greater impact on a range of organizationally and individually desired outcomes (Jill L. Mckinnon,et all, 2003). Fortune conducted a survey on the most admired companies and it has indicated that the CEO respondents believed that corporate culture was their most important lever in enhancing key capability (Anonymous, 1998). Research scholars have considered from earlier period onwards that organizational culture affects such outcomes as productivity, performance, commitment, self confidence, and ethical behavior (Ritchie 2000). More recent writers have reaffirmed that organizational culture does affect significantly an organization – employees’ behaviour and motivation and its financial performance (Holmes and Marsden, 1996). Yet, there is very little empirical research is done on the outcomes of organizational culture(Detert et al.,2000 and Schein,1996). Following are the few research papers which have studied organizational culture and outcomes: Sheridan (1992) found an association between organizational cultural values and the rates at which new recruits voluntarily terminated their employment, and O’Reilly et al.(1991) identified an association between the fit of organizational culture with employee preferences for culture (the person-organization fit) and organizational commitment, job satisfaction, and turnover. These studies were conducted in the U.S. and, hence, within the particular national cultural context of that country. National culture has the potentiality to influence the relation between the organizational culture and individual outcomes (Chow 2000, Agarwal et al.1999 and Lee and Mathur, 1998). Some researchers like Agarwal et al. (1999) point out the necessity of broadening the study of organizational phenomena beyond the boundaries of Anglo- American cultures. This study (Koteswara Rao, 2002) attempts to broaden the boundary. The study examines empirically the association between organizational cultural values and employee satisfaction in a large manufacturing and information technology companies in India. DEVELOPMENT OF HYPOTHESES

Organizational Culture
Organizational culture has been defined in many ways in the literature, for example organizational culture is defined as “a system of shared values (that define what is important) and norms (appropriate attitudes and behaviors) by O’Reilly and Chatman’s (1996). In...
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