Assignment Topic: Organizational

Culture

Submitted to: Prof. Luxmi Malodia

SUBMITTED BY: SRISHTI (26) & TAMANNA (27)
Contents
What is organizational culture? ................................................................................................. 2
Qualities of a great organizational culture ................................................................................. 2
8 steps to building a high-performing organizational culture .................................................... 3
The Importance of Organizational Culture ................................................................................ 8
The importance of culture to your company .............................................................................. 8
Sustaining Organization Culture .............................................................................................. 12
How Employees Learn Culture................................................................................................ 14
Creating an Ethical Organizational Culture ............................................................................. 15
Creating a Positive Organizational Culture ............................................................................. 16
Spirituality and Organizational Culture ................................................................................... 18
Implications of Organizational Culture ................................................................................... 20
Conclusion ............................................................................................................................... 21
Cultural Audit of Hyundai ....................................................................................................... 22
Introduction .......................................................................................................................... 22
Hyundai A Brief History of Hyundai Motors ...................................................................... 23
Objectives of this audit:........................................................................................................ 26
Limitations of this audit: ...................................................................................................... 26
Research Methodology ......................................................................................................... 26
Data Analysis and Interpretation .......................................................................................... 27
Findings and Suggestions ..................................................................................................... 33
Conclusion............................................................................................................................ 34
References ................................................................................................................................ 35

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What is organizational culture?
Organizational culture is the collection of values, expectations, and practices that guide and
inform the actions of all team members. Think of it as the collection of traits that make your
company what it is. A great culture exemplifies positive traits that lead to improved
performance, while a dysfunctional company culture brings out qualities that can hinder even
the most successful organizations.

Don’t confuse culture with organizational goals or a mission statement, although both can help
define it. Culture is created through consistent and authentic behaviours, not press releases or
policy documents. You can watch company culture in action when you see how a CEO
responds to a crisis, how a team adapts to new customer demands, or how a manager corrects
an employee who makes a mistake.

Qualities of a great organizational culture

Every organization’s culture is different, and it’s important to retain what makes your company
unique. However, the cultures of high-performing organizations consistently reflect certain
qualities that you should seek to cultivate:

• Alignment comes when the company’s objectives and its employees’ motivations are all
pulling in the same direction. Exceptional organizations work to build continuous
alignment to their vision, purpose, and goals.
• Appreciation can take many forms: a public kudos, a note of thanks, or a promotion.
A culture of appreciation is one in which all team members frequently provide recognition
and thanks for the contributions of others.
• Trust is vital to an organization. With a culture of trust, team members can express
themselves and rely on others to have their back when they try something new.

• Performance is key, as great companies create a culture that means business. In these
companies, talented employees motivate each other to excel, and, as shown above, greater
profitability and productivity are the results.

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• Resilience is a key quality in highly dynamic environments where change is continuous. A
resilient culture will teach leaders to watch for and respond to change with ease.
• Teamwork encompasses collaboration, communication, and respect between team
members. When everyone on the team supports each other, employees will get more done
and feel happier while doing it.
• Integrity, like trust, is vital to all teams when they rely on each other to make decisions,
interpret results, and form partnerships. Honesty and transparency are critical components
of this aspect of culture.
• Innovation leads organizations to get the most out of available technologies, resources,
and markets. A culture of innovation means that you apply creative thinking to all aspects
of your business, even your own cultural initiatives.
• Psychological safety provides the support employees need to take risks and provide honest
feedback. Remember that
psychological safety starts at the team
level, not the individual level, so
managers need to take the lead in
creating a safe environment where
everyone feels comfortable
contributing.

Now that you know what a great

culture looks like, let’s tackle how to
build one in your organization.

8 steps to building a high-performing

organizational culture
Creating a great organizational culture requires developing and executing a plan with clear
objectives that you can work towards and measure. The 8 steps below should serve as a
roadmap for building a culture of continuity that will deliver long-term benefits across your
company.

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1. Excel in recognition
Recognizing the contributions of all team members has a far-reaching, positive effect on
organizational culture. When everyone on the team recognizes the accomplishments of others,
individuals start to see how they’re part of a whole. Even the most jaded employees want to
know their work matters, and they notice when they aren’t appreciated — 76 percent of
employees don’t feel especially recognized by superiors. Experts agree that when an
organization makes appreciating employees’ part of its culture, important metrics like
employee engagement, retention, and productivity improve.

Making recognition part of your culture means it must be a regular occurrence, not something
that is only reserved for major milestones or work anniversaries. Encourage team members to
practice frequent social recognition in addition to monetary recognition. Providing social
recognition on a consistent basis has a remarkable business impact: companies that invest in
social recognition are four times more likely to increase stock prices, twice more likely to
improve NPS scores, and twice more likely to improve individual performances.

Monetary recognition is valuable as well. Consider a points-based recognition program that

will allow employees to easily build up substantial point balances. They’ll enjoy looking
forward to redeeming their points for a reward that’s personally meaningful to them, rather
than being handed a generic mug or a years of service award that will gather dust on a shelf.

To foster other cultural traits, recognition should also be clearly tied to company values and
specific actions. After all, 92 percent of employees agree when they’re recognized for a
specific action, they’re more likely to take that action again in the future.

Last but not least, leadership needs to take center stage in your recognition efforts, as they’re
the cultural trendsetters for your entire company. Incorporate a recognition talk track into your
leadership training and share top tips with managers on how to recognize others and why it
matters.

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2. Enable employee voice
Creating a culture that values feedback and encourages employee voice is essential, as failing
to do so can lead to lost revenue and demotivated employees.

First, you need to collect feedback using the right listening tools that make it easy for
employees to express what they’re feeling in the moment, like pulse surveys and workplace
chatbots. Then analyse the results to see what’s working and what isn’t in your organization,
and act on those findings while they’re still relevant. Not only does this strengthen your culture,
it leads to benefits like higher employee fulfilment and greater profitability. According to a
Clutch survey, 68 percent of employees who receive regular feedback feel fulfilled in their
jobs, and Gallup found that organizations with managers who received feedback on their
strengths showed 8.9 percent greater profitability.

In addition to gathering feedback using the methods described above, make sure you’re paying
attention to more subtle expressions of feedback that can reveal cultural deficiencies. For
example, pay attention to body language, as it can tell you much even when employees aren’t
willing to share. If you’re working with a remote team, video conferences can help keep this
nonverbal channel of communication open. Managers should treat all their sessions with
employees as opportunities to gather and respond to feedback and act as a trusted coach.

3. Make your leaders culture advocates

Your company’s success in building
a strong workplace culture rests in
the hands of team leaders and
managers. For example, if your
workplace culture prioritizes certain
values and your leadership team
doesn’t exemplify them — or even
displays behaviors that go against

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them — it undermines the effort. Team members will recognize the dissonance between stated
values and lived behaviors. They may even start to emulate negative behaviors because they
believe those behaviors have been rewarded by management.

Your leadership team can help build the culture you need by prioritizing it in every aspect of
their work lives. They need to openly and transparently discuss the organization’s culture and
values, and they should also be prepared to incorporate feedback from employees into their
cultural advocacy efforts. Leaders need their employees’ perspective on culture — while 76
percent of executives believe their organization has a well-communicated value system, only
31 percent of employees agree. When employees see leaders living your culture, they’ll follow
suit.

4. Live by your company values

Your company’s values are the foundation of its culture. While crafting a mission statement is
a great start, living by company values means weaving them into every aspect of your business.
This includes support terms, HR policies, benefits programs, and even out-of-office initiatives
like volunteering. Your employees, partners, and customers will recognize and appreciate that
your organization puts its values into practice every day. You can also recognize employees
for actions that exemplify your values to show that they’re more than just words and incentivize
employees to build the value-based culture you want to see.

5. Forge connections between team members

Building a workplace culture that can handle adversity requires establishing strong connections
between team members, but with increasingly remote and terse communication, creating those
bonds can be challenging. Encouraging collaboration and engaging in team building
activities — even when working remote — are two effective ways to bring your team together
and promote communication.

Look for and encourage shared personal interests between team members as well, especially
among those from different generations that might otherwise have a difficult time relating to
each other. This can create new pathways for understanding and empathy that are vital to
improving communication, creativity, and even conflict resolution.

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6. Focus on learning and development
Great workplace cultures are formed by employees who are continually learning and
companies that invest in staff development. Training initiatives, coaching, and providing
employees with new responsibilities are all great ways to show your team that you’re invested
in their success.

A culture of learning has a significant business impact. Find Courses’ most recent benchmark
study found that companies with highly engaged employees were 1.5 times more likely to
prioritize soft skills development. It also found that companies that had experienced revenue
growth in the previous
financial year were twice
more likely to use innovative
learning technologies and
three times more likely to
increase their learning and
development budgets.

7. Keep culture in mind from day one

When an employee’s perspective doesn’t match your company culture, internal discord is likely
to be the result. Organizations should hire for culture and reinforce it during the onboarding
process and beyond. Practices and procedures must be taught, and values should be shared.

When hiring, ask questions focused on cultural fit, like what matters to the interviewee and
why they’re attracted to working at your company. But these questions shouldn’t be the sole
determining factor when evaluating a candidate, as the best organizations keep an open mind
to diverse perspectives that can help keep their culture fresh.

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You should also prioritize building social relationships during the onboarding process so that
employees have the insight necessary to understand your company’s culture and values. These
relationships will last throughout the employee’s time at the company, so that cultural values
are mutually reinforced on a continuous basis.

8. Personalize the employee experience

As modern consumers, your employees expect personalized experiences, so you need to focus
on ways to help each team member identify with your culture. Tools like pulse surveys and
employee-journey mapping are great ways to discover what your employees value and what
their ideal corporate culture looks like. Take what you learn and tailor your actions to
personalize the employee experience for your team. Once you start treating your employees
with the same care you treat your customers, a culture that motivates each individual at your
organization is sure to follow.

The Importance of Organizational Culture

The importance of culture to your company
Organizational culture affects all aspects of your business, from punctuality and tone to
contract terms and employee benefits. When workplace culture aligns with your employees,
they’re more likely to feel more comfortable, supported, and valued. Companies that prioritize
culture can also weather difficult times and changes in the business environment and come out
stronger.

Culture is a key advantage when it comes to attracting talent and outperforming the
competition. 77 percent of workers consider a company’s culture before applying, and almost
half of employees would leave their current job for a lower-paying opportunity at an
organization with a better culture. The culture of an organization is also one of the top
indicators of employee satisfaction and one of the main reasons that almost two-thirds (65%)
of employees stay in their job. Consider Microsoft and Salesforce. Both technology-based
companies are world-class performers and admired brands, and both owe this in part to
prioritizing culture. Microsoft, known for its cut-throat competitiveness under Steve Balmer,
has been positively transformed by Satya Nadella, who took over as CEO of the company in

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2014. He embarked on a program to refine the company culture, a process that upended
competitiveness in favor of continuous learning. Instead of proving themselves, employees
were encouraged to improve themselves. Today Microsoft’s market cap flirts with $1 trillion
and it is again competing with Apple and Amazon as one of the most valuable companies in
the world.

Salesforce puts corporate culture front and center and has experienced incredible
growth throughout its history. Marc Benioff, Salesforce’s founder and CEO, established
philanthropic cultural norms that have guided the company over the past two decades. All new
Salesforce employees spend part of their first day volunteering and receive 56 hours of paid
time to volunteer a year. This focus on meaning and mission has made Salesforce one of the
best places to work in America according to Fortune, and it hasn’t compromised profits either:
Salesforce’s stock price has surged year after year at an average of over 26% annually to date.

Let’s take a look at seven reasons why organizational culture is important.

1. Organizational culture defines your company’s internal and external identity

Here’s a thought exercise: write down on a piece of paper five attributes that best describe your
organization’s culture. You might write something like “good work-life balance” or “lots of
meetings” or maybe “team-oriented.”

Now, spend a few minutes thinking about why each of those attributes is important to your
organization in particular. Why is it significant that your company has a good work-life
balance? What makes these culture attributes valuable to your people and customers?

Peter Ashworth explains that your organizational culture “defines for you and for all others,
how your organization does business, how your organization interacts with one another and
how the team interacts with the outside world, specifically your customers, employees,
partners, suppliers, media and all other stakeholders.”

In other words, your organizational culture will reverberate across all aspects of your business
because it represents the way you do business. It’s simultaneously your identity and your
image, which means it determines how your people and customers perceive you.

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2. Organizational culture is about living your company’s core values

Your culture can be a reflection (or a betrayal) of your company’s core values. The ways in
which you conduct business, manage workflow, interact as a team, and treat your customers
all add up to an experience that should represent who you are as an organization and how you
believe a company should be run. In short, your culture is the sum of your company’s beliefs
in action.

If your espoused values don’t match your culture, it could mean that your ‘core values’ are a
list of meaningless buzzwords, and your people know it.

But if your espoused values don’t match your culture, that’s a problem. It could mean that your
“core values” are a list of meaningless buzzwords, and your people know it.

A strong organizational culture keeps your company’s core values front and center in all
aspects of its day-to-day operations and organizational structure. The value of doing so
is incalculable.

3. Your culture can transform employees into advocates (or critics)

One of the greatest advantages of a strong organizational culture is that it has the power to turn
employees into advocates.

Your people want more than a steady pay-check and good benefits; they want to feel like what
they do matters. And when your people feel like they matter, they’re more likely to become
culture advocates—that is, people who not only contribute to your organization’s culture, but
also promote it and live it internally and externally.

When your people feel like they matter, they’re more likely to become culture advocates.

How do you achieve this? One way is to recognize good work. A culture that celebrates
individual and team successes, that gives credit when credit is due, is a culture that offers a
sense of accomplishment. And that’s one way to turn employees into advocates.

Then again, if your company culture doesn’t do this, you may be inviting criticism.

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4. A strong organizational culture helps you keep your best people

It should come as no surprise that employees who feel like they’re part of a community, rather
than a cog in a wheel, are more likely to stay at your company. In fact, that’s what most job
applicants are looking for in a company.

Ask any top performer what keeps them at their company and you’re bound to hear this answer:
the people. It’s because a workplace culture focused on people has profound appeal It helps
improve engagement, deliver a unique employee experience, and makes your people feel more
connected.

One way to attract top performers that are natural culture champions is to hire for cultural fit.

5. A well-functioning culture assists with on-boarding

Organizational culture also has the potential to act as an aligning force at your company. This
is particularly the case with new hires who, more often than not, have put some considerable
thought into the type of culture they’re entering into.

The culture at your organization is essentially a guiding force for them, so it’s important that it
starts with on-boarding.

6. Your culture transforms your company into a team

A successful organizational culture brings together the people at your company and keeps them
aligned. When your culture is clear, different perspectives can gather behind it with common
purpose. The culture at your organization sets expectations for how people behave and work
together, and how well they function as a team.

In this way, culture can break down the boundaries between teams, guide decision-making, and
improve workflow overall. On the flip side, a toxic organizational culture has the capacity to
do just the opposite.

7. Culture impacts performance and employee wellbeing

Reports show that organizational culture has a direct impact on performance and, more
importantly, your employees’ wellbeing. A healthy culture addresses both of these areas by
finding an appropriate balance based on company values.

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Does your company stress performance to such a degree that you feel like your physical and
mental health are being overlooked? There might be instances when that may not be a problem,
but for the vast majority of cases, it’ll have a negative effect on your company.

Paul Barrett sums it up nicely, writing that “Employee wellbeing strategies have the potential
to bring huge benefits to employees and employers alike but they need to be introduced in the
right way for the right reasons, and at the right time. To be properly effective they need to be
developed in a holistic way, consistent with a business culture that is conducive to their success.
That means supportive management behaviours, flexible working options and an open culture
that allows employees a voice and some say in shaping the working environment.”

Sustaining Organization Culture

Once a culture is in place, there are practices within the organization that act to maintain it by
giving employees a set of similar experiences. Sustaining a culture depends on three forces.

1. Selection
2. Top Management
3. Socialization

Selection

The goal of the selection process is to identify and hire individuals who could make the
organization successful through their services. Therefore, candidates who believe in the
values of the organizational have to be selected.

Thus, the selection process attempts to ensure a proper match in the hiring of people who
have values essentially consistent with those of the organization or at least a good portion of

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those values cherished by the organization. In this way, the selection process sustains an
organization’s culture by selecting those individuals who will fit into the organizations core
values.

Actions of Top Management

For keeping the organizational culture alive, the top management should reiterate is values,
beliefs, and goals by advising the middle and lower-level managers and through them the
employees of the entire organization. If any deviation occurs from the basic norms of the
organization, it shall take appropriate action to set things right.

Socialization

Socialization is the process that adapts employees to the organization’s culture. Organization
wants to help new employees adapt to its culture. The adaptation is done through the process
of “socialization”.

Socialization is made up of three stages:

The Pre-arrival Stage

This stage encompasses all the learning that occurs before a new member joins the
organization. The socialization process covers both the work to be done and the organization.
The pre-arrival stage is the period of learning in the socialization process that occurs before
a new employee joins the organization. For example, when students join a business school to
pursue their MBA degree, they are socialized to have attitudes and behaviours that business
firms want. This is so because the success depends on the degree to which the student has
correctly anticipated the expectations and desires of those in the business school.

Encounter Stage

In this stage of the socialization process, the new employee sees what the organization is
really like and confronts the possibility that expectations and reality may diverge. In

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expectations prove to have been more or less accurate, the encounter stage merely provides a
reaffirmation of the perceptions gained during the pre-arrival stage. Those employees who
fail to learn the essential or pivotal role behaviours risk being labelled as “rebels” and face
the risk of expulsion. This further contributes to sustaining the culture.

Metamorphosis Stage

Metamorphosis stage is the stage in the socialization process in which a new employee
changes and adjusts to the job, work group and organization. In this stage relatively long-
lasting changes take place. The employee masters the skill required for his or her job,
successfully performs his or her new roles, and makes the adjustments to his or her work
group’s values and norms. The metamorphosis stage completes the socialization process. The
new employee internalizes the norms of the organization and his work groups and understands
and accepts the norms of the organization and his work group. The success of this stage has
a positive impact on the new employee’s productivity and his commitment to the
organization.

How Employees Learn Culture

The Organizational culture is transmitted to the employees usually through the following
means.

Stories
Transmitting the org culture by narrating the hardships and sufferings of people who have
founded the organization.
Once the employees are understanding the same, they will be able to appreciate and emulate
the values and beliefs for the promotion of which the org has been founded.

Rituals
Repetitive sequences of activities that express and reinforce the key values of the organization.
Examples- Daily morning prayer, weekly family dinner, monthly picnic, annual award
presentation etc are a few examples of such rituals. The performance of these rituals helps the
employees appreciate the organization’s culture.

Symbols
Certain physical symbols used in the organization do reflect its culture. Examples - Inscribing
the logo of the org in all the stationery items provided for the staff, uniforms for different
categories of employees, reserved car park for executives, luxurious office furnishing etc.
These symbols become important tools of transmitting and sustaining the culture of the
organization.

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Language
Every organization develops certain unique terms to describe the staff, customers, suppliers,
equipment’s, work situation and so on.
It may take sometimes for a new employee to become familiar with these terms that are used
effortlessly by the existing employees.
By learning the language of the organization, the members convey their acceptance of the
organizational culture.

Slogans
Slogans can be useful not only to the employees but also those who deal with the organization
to understand and appreciate its culture. Example – ‘customer satisfaction is our motto’, ‘Every
customer is important to us’, ‘Think Different’-Apple, ‘We bring good things to Life’-GE, ‘We
love to see you smile’- McDonald’s, ‘The choice of new generation’- Pepsi…etc are few
slogans that symbolise what the organization stands for.
These are the means through which, new employees learn about the culture of the organization
to adapt, understand and value the organization.
Thus, Organization culture plays a major role like a soul in a human body to keep it alive and
grow and make impact in the society.

Creating an Ethical Organizational Culture

The organizational culture most likely to shape high ethical standards among its members is
high in risk tolerance, low to moderate in aggressiveness, and focused on means as well as
outcomes. 51 This type of culture takes a long-term perspective and balances the rights of
multiple stakeholders, including employees, stockholders, and the community. Managers are
supported for taking risks and innovating, discouraged from engaging in unbridled
competition, and guided to heed not just to what goals are achieved but also how.

What can managers do to create a more ethical culture? They can adhere to the following
principles:

Be a role model and be visible

Your employees look to the behavior of top management as a model of what’s acceptable
behavior in the workplace. When senior management is observed (by subordinates) to take the
ethical high road, it sends a positive message for all employees.

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Communicate ethical expectations

Ethical ambiguities can be reduced by creating and disseminating an organizational code of

ethics. It should state the organization’s primary values and the ethical rules that employees
are expected to follow. Remember, however, that a code of ethics is worthless if top
management fails to model ethical behaviors.

Offer ethics training

Set up seminars, workshops, and similar ethical training programs. Use these training sessions
to reinforce the organization’s standards of conduct, to clarify what practices are and are not
permissible, and to address possible ethical dilemmas.

Visibly reward ethical acts and punish unethical ones

Performance appraisals of managers should include a point-by-point evaluation of how his or

her decisions measure up against the organization’s code of ethics. Appraisals must include the
means taken to achieve goals as well as the ends themselves. People who act ethically should
be visibly rewarded for their behavior. Just as importantly, unethical acts should be punished.

Provide protective mechanisms

The organization needs to provide formal mechanisms so that employees can discuss ethical
dilemmas and report unethical behavior without fear of reprimand. This might include
creation of ethical counselors, ombudsmen, or ethical officers.

Creating a Positive Organizational Culture

Company culture is an integral part of business. It affects nearly every aspect of a company.
From recruiting top talent to improving employee satisfaction, it’s the backbone of a happy
workforce. Without a positive corporate culture, many employees will struggle to find the real
value in their work, and this leads to a variety of negative consequences for your bottom line.

Take a look at some of the benefits of a positive company culture:

Recruitment

Many HR professionals agree that a strong company culture is one of the best ways to attract
potential employees. A positive culture gives an organization a competitive advantage. People
want to work for companies with a good reputation from previous and current employees. A

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company with a positive culture will attract the type of talent that is willing to make their next
workplace a home, rather than just a stepping-stone.

Employee loyalty

Not only will a positive culture help recruitment effort, it will help retain top talent as well. A
positive culture fosters a sense of employee loyalty. Employees are much more likely to stay
with their current employer when they feel they are treated right and enjoy going to work every
day.

Job satisfaction

It’s no surprise that job satisfaction is higher at companies with a positive corporate culture.
Employers who invest in the well-being of their employees will be rewarded with happy,
dedicated employees

Collaboration

Employees are much more likely to come together as a team at companies with a strong culture.
A positive culture facilitates social interaction, teamwork and open communication. This
collaboration can lead to some amazing results.

Work performance

Strong company cultures have been linked to higher rates of productivity. This is because
employees tend to be more motivated and dedicated to employers who invest in their well-
being and happiness.

Employee morale

Maintaining a positive company culture is a guaranteed way to boost employee morale.

Employees will naturally feel happier and enjoy their work more when they work in a positive
environment.

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Less stress

A positive company culture will help significantly reduce workplace stress. Companies with
a strong corporate culture tend to see less stressed employees, which helps boost both employee
health and work performance.

Spirituality and Organizational Culture

What Is Spirituality?

Workplace spirituality is not about organized religious practices. It’s not about God or
theology. Workplace spirituality recognizes that people have an inner life that nourishes and is
nourished by meaningful work that takes place in the context of community. Organizations that
promote a spiritual cultural recognize that people have both a mind and a spirit, seek to find
meaning and purpose in their work, and desire to connect with other human beings and be part
of a community.

Why Spirituality Now?

• Spirituality can counterbalance the pressures and stress of a turbulent pace of life.
Contemporary lifestyles—single-parent families, geographic mobility, the temporary
nature of jobs, new technologies that create distance between people—underscore the lack
of community many people feel and increase the need for involvement and connection.
• Formalized religion hasn’t worked for many people, and they continue to look for anchors
to replace lack of faith and to fill a growing feeling of emptiness.
• Job demands have made the workplace dominant in many people’s lives, yet they continue
to question the meaning of work.
• People want to integrate personal life values with their professional life.
• An increasing number of people are finding that the pursuit of more material acquisitions
leaves them unfulfilled.

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Characteristics of a Spiritual Organization

Strong sense of purpose

Organizational members know the purpose of existence of the organization they are working
for and what it values.

Focus on individual development

Employees are the part and parcel of an organization therefore need to be nurtured to help them
grow. These characteristics also include a sense of job security.

Trust and openness

The relationships among the organizational members are characterized by mutual trust, honesty
and openness.

Employee empowerment

Employees are allowed to a make work related decisions that affect them, highlighting a strong
sense of delegation of authority.

Toleration of employee expression

The organization culture encourages employees to be themselves and to express their moods
and feelings without guilt or fear of reprimand.

Criticisms of Spirituality

• What is the scientific foundation?

• It is still pending: needs more research
• Are spiritual organizations legitimate: do they have the right to impose values on
employees?
• Spirituality is not about God or any religious values
• It is an attempt to help employees find meaning and value in their work
• Are spirituality and profits compatible?

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• Initial evidence suggests that they are
• Spirituality may result in greater productivity and dramatically lower turnover
• Critics argue that organizations have no business imposing spiritual values on employees.
This criticism is undoubtedly valid when spirituality is defined as bringing religion and
God into the workplace. However, the criticism appears less stinging whether goal is
limited to helping employees find meaning in their work lives.
• The issue of whether spirituality and profits are compatible objectives is certainly relevant
for anyone in business. The evidence, although limited, indicates that the two objectives
may be particularly compatible. Several studies show that in organizations that have
introduced spirituality into the workplace have witnessed improved productivity reduced
turnover, greater employee satisfaction and increased organizational commitment.

Implications of Organizational Culture

Organizational culture refers to the values, environmental factors, work ethics, goals and
social norms present within a company. The structure of the company and its various projects
is shaped by organizational culture. Projects that align well with the organizational culture
are easier to implement and have a greater chance of success, whereas projects that do not fit
into the cultural norms of the business will be much harder to pull off. As a business owner,
understanding the implications of organizational culture on project structure can help you
figure out which projects are worth pursuing.

Management Style

Different managers approach the supervision of their employees and team members in varied
ways. Some managers use an autocratic style, which means that the culture of the organization
is likely to have a clear hierarchy and is heavily dependent on tight control of resources and
competencies. Other managers tend to have a more democratic style of leadership and this has
strong implications for the structure of projects. Democratic management empowers team
members to come up with their own solutions and be innovative in their approaches to solving
problems.

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Reaching Compromises

Along with management style comes the ability of project teams to reach compromises. The
organizational culture may encourage autonomous decision making, or it might leave major
decisions to the project's leader, who might not take kindly to input from others. Having several
layers of management further complicates this if the managers do not employ open-door
policies.

Planning and Design

Organizations that have a strict hierarchy tend to be more bureaucratic, which often amounts
to additional red tape to in trying to accomplish projects. Horizontally focused organizations,
however, impart a culture of teamwork and stakeholder building in their structures.
Stakeholders are all the folks within a business or project team that contribute to its success.
Involving stakeholders in planning and designing projects, their timelines and objectives, often
helps to make the actual work on the project easier. People like to feel as though they have a
say in how things are managed.

Time Management

Organizational culture can also affect the time management of projects. Some business settings
and management styles prefer tradition and doing things within a prescribed method.
Innovative organizational cultures, on the other hand, encourage creativity and trial by fire.
The tradeoff is that an innovative company often lacks efficiency, with traditional companies
able to produce more in a shorter amount of time because of their strict scheduling practices.

Conclusion
These are just a smattering of reasons why organizational culture is important, but they’re a
good starting point to get you thinking about what your own organization brings to the table.
What’s important at your company might be totally different depending on the situation.

So what are your next steps?

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Find out what aspects of your organizational culture are most important to your people, and
think about performing a culture audit. Your goal is to discover what your people value most
and support that.

Cultural Audit of Hyundai

In this assignment we have conducted a cultural audit of Hyundai.

Introduction
Automobile Industry, industry that produces automobiles and other gasoline-powered vehicles,
such as buses, trucks, and motorcycles. The automobile industry is one of the most important
industries in the world, affecting not only the economy but also the cultures of the world. It
provides jobs for millions of people, generates billions of dollars in worldwide revenues, and
provides the basis for a multitude of related service and support industries. Automobiles
revolutionized transportation in the 20th century, changing forever the way people live, travel,
and do business. The automobile has enabled people to travel and transport goods farther and
faster, and has opened wider market areas for business and commerce. The auto industry has
also reduced the overall cost of transportation by using methods such as mass production
(making several products at once, rather than one at a time), mass marketing (selling products
nationally rather than locally), and globalization of production (assembling products with parts
made worldwide). Between 1886 and 1898, about 300 automobiles were built, but there was
no real established industry. A century later, with automakers and auto buyers expanding
globally, auto making became the world's largest manufacturing activity, with nearly 58 million
new vehicles built each year worldwide.[1][2] As a result of easier and faster transportation,
the United States and world economies have become dependent on the mobility that
automobiles, trucks, and buses provide. This mobility allowed remote populations to interact
with one another, which increased commerce. The transportation of goods to consumers and
consumers to goods has become an industry in itself. The automobile has also brought related
problems, such as air pollution, congested traffic, and highway fatalities. Nevertheless, the
automobile industry continues to be an important source of employment and transportation for
millions of people worldwide.

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Hyundai
A Brief History of Hyundai Motors
For decades, Hyundai has been in the front line of modern car design and manufacturing.
The very word “Hyundai” is appositely derived from a Korean word “hanja” meaning
“modernity.” Constantly pushing the envelope, the company has a long history of
technological innovation.
But it hasn’t evolved merely for the sake of evolution. Rather, the firm has always had one
goal in mind: building cars of unbeatable quality. These days, Hyundai is more devoted than
ever to creating the ideal driving experience.

All of that being said, how did Hyundai get where it is, and where is it headed now? Let’s
talk about it.

We all know that Hyundai Motor Company officially launched its brand in 1967, but the
origins of the auto giant go back a bit further, to the post-war world of South Korea. It started
in 1947, when entrepreneur named Chung Ju-Yung founded a small business called Hyundai
Engineering and Construction Company. The aim was simple: to help South Korea rebuild
and industrialize after the ravages of World War II.

Unfortunately, the Korean War dashed his hopes and his business plan. Following so quickly
on the heels of the last major war, it forced Chung Ju-Yung to abandon the company and
instead seek work at the Korean Ministry of Transportation. Although it would be over a
decade before the formation of Hyundai Motor Company in the late 1960s, it was there, at
the nation’s transportation agency, that the seeds of Ju-Yung’s next project were planted.

Hyundai Motor Company officially got off the ground in 1968 with the introduction of its
very first model “the Cortina” which the company collaborated with Ford Motor Company
to manufacture the Cortina. The release of the car was the first step in what would be a long
and successful journey. Manufactured in the Ulsan plant, in the south eastern region of the
country, the car was enough of a hit to encourage Chung Ju-Yung in his undertaking.

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Indeed, it was after the rollout of the Cortina that he decided to step up his efforts to create
a robust and independent automotive business. In order to realize his dreams of creating
high-quality, mass-produced vehicles for the South Korean public, Chung Ju-Yung brought
in a number of British automotive executives and engineers, starting with George Turnbull,
formerly the managing director of Austin-Morris.

Together they designed the Pony, released in 1976, which broke ground as South Korea’s
very first mass-produced car.

The Pony wasn’t just a one-time wonder. Manufactured in Korea, designed with the help of
British engineers, styled by Italy’s Giorgio Giugiaro, built with a 1.2 litre Mitsubishi engine,
the car was a truly international product that presaged the worldwide scope of its producer.

It was only a matter of time, before Hyundai began selling its prized creation in the global
marketplace. Exporting began with Ecuador, and then quickly expanded to other parts of the
world from South America to Europe to North America. In fact, by the middle of the decade,
the Pony was the highest selling car in Canada. While Hyundai hadn’t yet broken into the
U.S. market, they were developing a starry reputation in many other countries.

Of course, expansion brought with it a number of issues, not the least of which was quality
control. While it was relatively easy to sell cars on the new South Korean market, it was a
bit more difficult to please foreign car buyers. Executives quickly realized they would have
to focus on excellence, as well as expansion, and Hyundai’s long-term strategy of quality
growth was born.

Throughout the 1980s, Hyundai grew at a fleeting rate, making huge marks in international
markets. It wasn’t until 1986, however, that the company hit one of its biggest goals, that is,
breaking into the U.S. market. Initially that proved difficult, owing to strict emissions
standards, but before long Hyundai met the challenge with flying colors.

It did so with the model “Excel”, a revised version of the Pony that featured front-wheel
drive and low emissions. South Korea’s first American offering hit U.S. markets in two

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forms: a 4-door sedan and a 5-door hatchback trim, both featuring a 4-cylinder engine. In
the end, Hyundai’s little car proved to be an alarming contender on the international stage.

Designed once again by Giorgio Giugiaro, the Pony Excel was conceived specifically for
foreign markets. As a cost-efficient alternative to many domestic cars, it proved popular
with consumers, (becoming the best-selling imported car of 1986), as well as critics (hitting
Forbes’s list of best products). The Excel model proved such a success that Hyundai
continued producing it until 1994, when the sleeker Accent arrived.

Despite an initially strong showing, Hyundai wasn’t entirely satisfied. Still under the
leadership of founder Chung Ju-Yung, it wanted to push the envelope once again in its
constant drive to improve quality and boost standards. Over the next few years, the company
would make huge advances in design and technology, and, by the early 21st Century,
Hyundai had become one of the world’s top car manufacturers.

Nowadays, while many things have changed, much else has remained the same. Hyundai’s
main plant is still located in Ulsan, where it produced its very first car, only now it is the
single biggest integrated car manufacturing center in the world. A testament to the progress
the company has made since its humble beginnings as South Korea’s first mass vehicle
producer. With an annual production capacity of 1.6 million units. Only, these days, it’s not
all about quantity. Today the company is more than ever committed to “adding premium
value into customers everyday lives,” to use the words of CMO/EVP Wonhong Cho. With
models under its belt ranging from the Santa Fe to the Sonata, all of which continue their
long runs at Hyundai car dealers around the country, it has produced a whole new generation
of vehicles that emphasize exceptional design and superior technology.

For example, Sonata is notable not only for being the manufacturer’s flagship mid-sized
sedan, but also for pioneering the brand’s new design philosophy of fluidic sculpture. With
an emphasis on natural forms and dynamic curves, Hyundai’s visionary theory has put it at
the forefront of automotive design.

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Over the years, Hyundai has expanded well beyond its initial comfort zone as the budget -
friendly, foreign alternative. In the past few decades, it has continued to roll out not only
great cars for everyday use, but also specialty and high-end vehicles.

Consistently ranking in the top tier of the World Rally Championships, the company has
regularly demonstrated its commitment to superior engineering and state-of-the-art
technology. Today, Hyundai is exceeding expectations once again, improving its quality,
cultivating its relationships with customers, and moving into the luxury sector with an
entirely new brand called Genesis.

Although Hyundai has had an incredible ride so far, it looks as if the best is yet to come. As
the company moves into new markets, expands its line of vehicles, and once again pushes
the envelope of quality and ingenuity, the public is in for even more surprises. For new or
loyal Hyundai customers, the future looks brighter than ever.

Objectives of this audit:

• To assess the existing culture of the organization and to find its impact on employees‟
behaviour.
• To analyses the overall performance of the employees.
• To learn the employees’ relationship with their peers.
• To study the employees, feel about the management.

Limitations of this audit:

• It is difficult to elicit responses from employees who do night shifts.
• The attitude of the worker changes from time to time. Hence the result of the project may
be applicable only at present.

Research Methodology
Research Design

The audit is descriptive in nature i.e., descriptive research. Descriptive research is usually
concerned with describing the characteristics of a particular individual or group. This

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includes surveys and fact-finding enquiries of different kinds. The main characteristic of this
method is that the researcher has no control over the variables; one can only report what has
happened or what is happening. Thus, the research design in case of descriptive study is a
comparative design throwing light on all the areas and must be prepared keeping the
objectives of the study and the resources available. This study involves collection of data
from Junior level Executives.

Population Size

The universe of the study consists of employees (Junior level Executives) of Hyundai with a
total number of 105. Out of the total population data could be collected from 100 persons.

Data Source

This audit involves collection of primary data from the employees of Hyundai. This survey
method is used considering the size of the universe and time factor. Data are collected
through structured Questionnaire.

Questionnaire has been designed and personally administered.

Analysis and Interpretation

As the questions generate direct information the data were analysed using Statistical tools
such as,

1. Simple percentage

2. Weighted average

Data Analysis and Interpretation

Percentage Analysis of the Data

TABLE NO. 1

HIGHLY INVOLVED IN THEIR WORK

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INFERENCE
From the above table it is clear that 53% of the respondents have strongly agreed that they are
highly involved in work, followed by 24% of the respondents who agreed, 14% of the
respondents are neutral and 9% of the respondents slightly disagreed.

TABLE NO. 2
ABILITY TO MANAGE THEIR OWN WORK

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INFERENCE
From the above table it is clear that 47% of the respondents have strongly agreed about
managing their own work, followed by 34% of the respondents who agreed, 15% of the
respondents are neutral and 4% of the respondents slightly disagreed.

TABLE NO. 3
OTHERS COOPERATE TO GET WORK DONE

INFERENCE

From the above table it is clear that 65% of the respondents are agreeing about cooperation in
doing work, 12% of the respondents strongly agree and 23% of the respondents are neutral.
This shows that majority of the employees feel that there is interpersonal cooperation.

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TABLE NO. 4

MEMBERS HAVE A GOOD INTERPERSONAL RELATIONSHIP

INFERENCE

From the above table it is clear that 41% of the respondents agree on that they have good
relationship with other members, 22% of the respondents have strongly agreed, 32.7% of the
respondents are neutral and 5% of the respondents slightly disagreed.

TABLE NO. 5

EMPLOYEE CONSULTED ON IMPORTANT MATERS

INFERENCE
From the above table it is clear that 50% of the respondents are neutral about the boss consult
the employee on important matters, followed by 15% of the respondents who strongly agreed,
26% of the respondents have agree and 9% of the respondents slightly disagreed.

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TABLE NO. 6

EFFECTIVE UTILIZATION OF SKILLS AND ABILITIES BY THE COMPANY

INFERENCE From the above table it is clear that 56% of the respondents agree that their
skills and abilities are utilized effectively by the company, 9% of the respondents strongly
agree, 26% of the respondents are neutral, 5% of the respondents slightly disagreed and 4% of
them disagreed.

TABLE NO. 7

CAPABILITIES ARE VIEWED AS IMPORTANT SOURCE OF COMPETITIVE

ADVANTAGE

INFERENCE

From the above table it is clear that 39% of the respondents agree that their capabilities are
viewed as important source of competitive advantage, 18% of the respondents strongly agree,
27% of the respondents are neutral, 6% of the respondents slightly disagreed and 10% of them
disagreed.

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Weighted Average

TABLE NO. 8

OPINION ABOUT THE ORGANIZATIONAL FACTORS WITH RESPECT TO

EMPLOYEES’ BEHAVIORAL ASPECTS

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INFERENCE

From the above table it is clear that most of the respondents gave more weightage for the
statement “I respond well to the organizational changes”, secondly respondents give more
weightage for two statements “I have the ability to manage my own work & it is easy for me
to coordinate with different departments of the organization ”, third weightage for statement “I
am highly involved in my work”, fourth weightage for the statement “I have a shared vision of
what the organization will be like in the future” and the fifth position is for two statements “I
feel happy to work with people from other parts of the organization also & I have clear idea
about my company’s goal”.

Findings and Suggestions

Findings
• Majority (53%) of the respondents strongly agreed that they are highly involved in their
work.
• Sizable number (47%) of the respondents strongly agreed that they have ability to manage
their own work.
• Majority (65%) of the respondents agreed that the people they work with are cooperating
to get work done.
• Sizable number (41%) of the respondents agreed that they have good relationship with other
members.
• Half (50%) of the respondents are neutral that their boss consult them on important matters.
• Majority (56%) of the respondents agreed that the company utilizes their skills and abilities
effectively.
• A good number (39%) of the respondents agreed that their capabilities are viewed as an
important source of competitive advantage.
• Most of the respondents gave more weightage for the statement “I respond well to the
organizational changes”.

Suggestions
• In training programmed practical sessions must receive greater emphasize.
• The management may enhance the frequency of employee’s feedback on their
performance.

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• Now, only the employees who belong to committees can participate in decision-making.
The management may encourage all the employees to participate in decision-making
process.

Conclusion
The study about the organizational culture and behaviour on employees reveals that the workers
were satisfied with their ability, co-operation, team work, involvement, supervisors, utilization
of their skills and rewards etc. They are highly satisfied with the current culture of HMIL.

Because of this favourable culture the employees‟ show positive behaviours like high
involvement, highly commitment to the organization, highly motivated and highly flexible to
the organizational changes etc.

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References
1. Stephen P. Robbins., Organizational Behavior, Pearson Education Inc., Ninth Edition.

2. David A. Decenzo & Stephen P. Robbins., Human Resources Management, John Wiley &
Sons Inc, Seventh Edition, 2003.

3. Kothari C.R., Research Methodology, Wishwa Prakashan, New Delhi, 1985(Reprint 2003).

4. D. Aaker, V. Kumar, and G. Day - Marketing Research, Singapore, John Wiley & Sons
(ASIA) Pte Ltd, Seventh Edition, 2003.

5. Gilbert A. Churchill, Jr., Marketing Research Methodological Foundations, USA, The

Dryden Press, Fifth Edition, 1991.

6. Richard. I. Levin, David S. Rubin, Statistics for Management, USA, Prentice-Hall, Inc,
Seventh Edition, 2002

7. https://laxmihyundai.com/index.php/blog/a-brief-history-of-hyundai-motors

8. https://www.contractingbusiness.com/contracting-business
success/article/21139301/importance-organizational-culture

9. https://www.achievers.com/blog/organizational-culture-definition/

10. https://workplacepsychology.net/2011/02/14/creating-an-ethical-organizational-culture/

11. https://www.forbes.com/sites/alankohll/2018/08/14/how-to-build-a-positive-company-
culture/?sh=79e31ec049b5

12. https://smallbusiness.chron.com/implications-organizational-culture-project-structure-
73039.html

13. https://www.researchgate.net/publication/282784719_Workplace_Spirituality-
The_Essence_of_Modern_Business_Organizations

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