Master's dissertation

Sajawal Iqbal

Student ID# 18144530

This dissertation is submitted in partial fulfilment of the requirements of the MSc Management and International Business.

Faculty of Business, Law and Social Sciences (BLSS)

Birmingham City University

October 2019

Supervisor: Scott Lichtenstein

Module Title# Major Project A S2 2018/9

Module Code # BUS7048

Acknowledgement

Throughout the writing of this dissertation I have received a great deal of support and assistance. I would like to thank my supervisor, Dr. Scott Lichtenstein, my module leader, Dr. Peter Samuels, whose expertise was invaluable in the formulating of the research topic, methodology and some software which were totally new for me.

I would like to acknowledge my colleagues who help me out in very tough time. You supported me greatly and were always willing to help me.

In addition, I would like to thank my parents for their wise counsel and sympathetic ear. You are always there for me.

Finally, there are my friends, who were of great support in deliberating over our problems and findings.

Contents Acknowledgement 1 Abstract 1 Chapter 1 4 1.0 Introduction 4 1.1 Organizational culture: 5 1.2 Performance management: 6 1.3 Relation between organization culture and performance management. 6 1.4 Problem statement: 7 1.5 Aim and Objectives 8 1.5.1 Aim(s): 8 1.5.2 Objective(s): 8 Chapter 2 9 2.0 Literature Review 9 Chapter 3 14 3.0 Methodology 14 3.1 Sample size: 14 3.2 Data Collection: 14 3.3 Exploratory research: 14 3.4 Secondary data: 14 3.5 Quantitative research and numerical data: 15 3.6 Variables: 15 3.7 Hypothesis: 15 Chapter 4 16 4.0 Analysis 16 4.1 Descriptive: 17 4.2 Correlations Analysis: 18 4.3 Regression: 19 Chapter 5 21 5.0 Discussion 21 5.1 Hypothesis Results: 22 Chapter 6 23 6.0 Conclusion 23 Recommendation 24 Chapter 7 25 7.0 Reflective Account 25 25 7.1 Beginning activities: 25 7.2 Refining Topic 26 7.3 Choosing and Refining Methodology: 26 7.4 Collection of Data 26 7.5 Analyzing and Interpreting Data 27 7.6 Self-Reflection 27 Bibliography 28 Appendix 1: 32 Meetings: 32

Abstract

Organization culture is defined as the norms and beliefs that are present in the organization that are used by the employees to solve problems and run the organization on a day to day basis. Culture is a vital part of any organization it is the identity of the organization. The study looks at how the culture of any organization can be an influencing factor on the performance of the organizations of the organizations. This study also looks at is there any relationship between organizational culture and the performance of the organization of the UK. In this study researcher focused at how organizations aligned the culture and maintain in the organization, how much its impacts on overall performance of the firm. The study measures the influence of organizational culture on performance by looking at the return on assets and equity and also by looking at the turnover rate of employees along with other variables such as size of organization, age of employees and percentage of males in the organization. The study is based on secondary data taken from the annual reports of the organizations using the Fame and Thomson Reuters Eikon 4 data base software and the data is analyzed using the SPSS software. The results of the analysis along with the discussion and conclusions are given below.

Chapter 1

Culture has can be defined as a pattern of shared assumptions, beliefs ,norms and expectations that can guide the members actions and interpretations of norms and actions of others that can be considered acceptable behavior for employees in an organizations. When the focus is on cultural norms that are defined as socially created standards that can emerge as a result of shared values within an organization. Norms help the members of the group to interpret and evaluate various actions and the expectations of return of those actions and the appropriate behavior in return. Culture in organizations is developed by combining the norms and values of the people and the policies implemented by the administration. Many researchers have stated that corporate culture can be made up of many things such as the extent to which managers in the firm commonly spoke of their company’s style or way of doing things, whether the firm had made its values known through a creed or credo and made consistent attempts to get managers to follow them, and the extent to which the focal firm had been managed according to long-standing policies and practices other than those just of the current chief executive officer (JENNIFER A. CHATMAN, 2014). The culture of an organization has long been described as a driver of success evidence has accumulated that an association does exist and that certain features of organizational culture are routinely correlated with a range of organizational performance. However, research to date has generally fallen short of establishing a causal culture-to-performance effect. Alternatively, it is possible that organizational performance causes organizational culture, culture and performance are reciprocally related, or both are caused by a third variable. Given the unique theoretical and practical implications of these alternative forms of a C-P relationship, there for further investigation is required to see how culture can improve the performance levels of any given project within an organization (ANTHONY S. BOYCE, 2015) . Given the widespread interest form mangers and academic scholars regarding the impact of culture on the performance of firms and their projects it should be noted that the level of clarity regarding this relationship is very little. One of the early studies that looked at the concerned topic was done by American authors (J., Siehi, & Martin, 1990) they looked at ways to measure the impact of culture on the performance of business and concluded that that a link between culture and firm performance “has not been—and may well never be—empirically demonstrated”. Since then many have looked at how the culture of a firm can lead to improvements in performance studies such as (Gregory, 2009) and (Hartnell C. A., 2011) have observed the association between the two. (Gregory, 2009) Stated that there is empirical proof that culture can improve performance and (Hartnell C. A., 2011) found significant correlations between culture and employee job satisfaction, improved revenue and performance. Culture is a global phenomenon that derived from the social economic, legal political and religious norms values and traditions of the society. Culture can shape the actions and behaviors of individuals to act accordingly in different situations when faced in life. Due to the importance of organization culture there has been researched heavily in the last two decades the resent emphasis has been on the cultures being developed at organizations worldwide. An organizational culture is commonly defined as a set of belief values and assumptions that are shared by members of an organization (Schein, 2013). It is believed that organizational culture provides a competitive advantage and can have a considerable effect in developing employee mangers relationship. The influence of organizational culture on organizational performance has been proven in many previous studies. (Ezirim, 2010) States that the influence of organization culture on the performance has been proven in his research study. The author stated that organization culture can increase the overall effectiveness of the organization and performance. The author also stated that culture is an essential for organizational effectiveness. For instance (Catana, 2010) in his study concluded that organizational culture is a central concept that has major influence on the performance of businesses. Organizational culture also lead to improvements in productivity and effectiveness of the business. Despite the level of attentions paid to the topic no major solutions have been mutuality agreed due to the complexity of the topic and the fact that every organization has a different culture with different factors effecting them. (Smith, 2004) States in the study that it is very difficult to find out the correlation between culture and performance because some firms have different ideologies than others and changing those cultures may end up harming performance. There is also the matter that some aspects of organization culture that cannot be measured quantifiably.

Organizational culture was defined by (Owens, 2012) as the patterns of joint values and beliefs over time that produce behavioral norms that are adopted in problem solving by the individuals of the organization. The organizations internal environment is represented by their culture every organization has certain norms it follows. A good example is UPS with its culture of never turning left this culture norm has resulted in increased levels of profitability. Organization cultures that are successful need to be manifested in the beliefs and assumptions of the managers and employees because there are ones that are most entrusted to consider it as normal behavior when it comes to problem solving. (Aycan, 2010) Also stats that Organizational culture manifested in beliefs and assumptions, values, attitudes and behaviors of its members is a valuable source of a firm’s competitive advantage. Organizational culture also shapes the producers of the company and combines the capabilities of the entire business in to one cohesive and well understood team. And this can lead to problems being solved quickly and thereby increase productivity. (Hall, 2013) Stated that organizational culture if properly maintained can has lasting effects as it is transferred from older employee to new employees and can act as a bridge between them and allow them to work together and increase performance.

Performance management is defined as a strategic and intergraded approach that makes sue of culture and the employee’s norms and aims to deliver sustained performance to the organization. This is done by improving the capabilities of the works and making them feel a part of the organizations and focusing on team build and culture adaptation. (Armstrong, 2010) Also support the notion that staff when managed properly and made to feel as a part of the organization will create more of a competitive advantage then any amount of capital. The author stats that having vast amounts of capital is good but if the staff do not perform it is wasted and misused. The purpose of culture at an organization is to transform the raw potential of the human resource and build an environment that can inspire performance and success. Culture in an organization can help to remove barriers that hinder motivation. Culture allows people at an organization to perform better as a group then they would as individuals (Reynolds, 2011). The competitive capacity of the organization can be increased if there is a strong culture present that bring the best out of people and helps them to solve problems collectively. This is essences rise the performance of the employees and is an advanced form of performance management.

According to (Kandula, 2010) the key to good performance of an organization is the presence of a strong culture. This is because people at the organizations become accustomed to the ways of an organization and how its culture allows for problems to be dealt with. The author admits that due to the presences of a strong culture some strategies may not generate the desired results as for other firms and some strategies may take longer to succeed but in the long run organizations with a strong culture can lead to improvements in performance it all depends on how a certain strategy is adapted by the people working at the organization. The presence of a strong culture can make an average individual perform better and achieve levels of performance he or she has not previously achieved. O the other hand if there is a lack of a strong culture and the organization is built on a negative environment it can make employees who perform great at other organization perform below average. There for the author concludes that organization culture has a direct relationship with the performance of each employee and thus the performance of the whole organization. (Murphy, 2013) In his research stated that the he believe that culture at an organization is vital because it builds the understanding of values of the business and improves performance. (Magee, 2012) Contends that without the consideration of culture the organization cannot improve the performance of their employees. If culture is not taken into consideration it can be counterproductive and end up decreasing productivity.

The concept of organizational culture has been a widely discussed topic of debate it has gained wide acceptance in understanding the field of management sciences. Culture has become one of the most important and indispensable parts of the organization in order to attain high levels of performance. An increased level of competition, globalization and other developments have made organization culture a compulsory part of successful organization. There for managing and mentioning culture has emerged as a major challenges for organizations that are aiming to attain better levels of performance. On the other hand it should be noted that people working at the organizations sometimes find it difficult to adapt to new culture and this can have a major impact of the performance levels of the organization. It is the psychological nature of people to resists change. There for originations whether it be in developed or developing markets need to monitor the effects of organization culture. Mangers need to ensure that the norms and values of employees and organization match with the culture of the organization. Organizations which have a weak culture are more at risk as the management are unaware of the difficulties till they become problems. This then can become a major hindrance and lead to decreased levels of performance. A weak culture in which the norms and values of the organization are not in alignment can lead to hostility, repression of the views of employees, contributions, lack of unity and the flow of information for the top of the organization to the bottom is damaged (Oyafunke SALAU, 2014). Keeping this is mind it can be concluded that organization culture or a lack of it can have major implications of the performance of the organization.

The aim of this research is to find out the impact of organizational culture performance of firms working in the UK. Many organizations in the UK market suffering to maintain their performance due to the culture differences, the way the employees collaborate and engaged in the corporation environment.

The current study tends to shed to light on the following objectives,

1. Is there a relation between organization culture and the performance of organizations in the United Kingdom?

2. Is there a difference of organization culture with the size of the organization?

3. Does organization culture play a role in the performance of employees?

The literature on organizational culture is very rich and diverse. Much of it looks at the relationship between organization culture and its impact on the performance of organizations. In study of Awadh and Saad, (2013) mentioned that organizational culture state that there are combined chemistry of the people’s mind that discriminates the people of one organization to the other firm. Most of the organizations failed due to the unorganized culture inside, and most of the managers needs to know the key factors which are influencing an organization’s performance and in order to take some appropriate steps to initiate them. Researchers always having their different opinions regarding to culture in the organization and the performance of that particular firm. There is an ability of the organization for achieving its objectives and goals by using some resources to measure the organization performance. (Yilmaz, 2012) In his study examined the characteristics of organization culture in selected firms he over course of time looked at the level of performance and how culture had an impact on it over time. To properly measure the performance the researcher looked at the sales and profitability of the organizations and return on assets and returns on equity. The author used a survey to find out the views of the employees of the organization as well. The researcher also found that organization culture dose have a correction with the financial performance of the organizations. The study also noted that investment decision and the size of the organization also had an impact on the performance and the larger the firm the harder it is to maintain the culture. The author also put the emphasis that in order to achieve a culture that can be considered successful it is crucial that employees given the right environment and training in order to adept tot the culture of the organization. The study also mentioned that organizational culture always varying a strong impacts on employee performance and increases motivational levels. Level of motivation and culture alignments are very important for any organization, if any organization are not aligned a culture then it must be redirect to their management and then behavior of employees impacts in the achievements and organizational goals. (Peteraf, 2013) In his study tried to overcome the limitation of previous studies and looked to measure the impact of culture on organizations performance. The researcher gathered data form 32 organizations the author looked at the sales figures and returns on investments and equity and how they were affected with culture. The results of the study showed that there is no significant or positive relation between organization culture and financial performance. (Rousseau, 2011) In his study looked at the relationship among the performance of the organization and their culture. The study looked at return on equity and return on assets and sales growth as a measure of how culture can affect the performance year to year the results of the study showed that there was a positive relationship between the organizational culture and the sales growth of the test organizations. One of the most extensive studies on the culture of organizations and how it can impact the performance of organizations was done by (Kotter, 2012) the study collected data from over 207 organizations over five years period. In their study the authors used various measures of culture and how organizational culture impacted the long term profitability. The objective of the study was to establish the relation between culture and performance. The results of the study found a minor correlation between strong cultures in the organization. The subsequent observations also showed that organizations with strong cultures had better performance than those organizations that did not have strong culture as compared to the organizations that have a weak and ill-suited culture in their organization. Now a days, organizational culture is interrelated with management and if management is doing his job efficiently then performance of your employees and firm also show special effects. In (Purcell and Hutchinson, 2007) mentioned in his research if an organization motivated his employees, then efficiency level will also increases and as a result overall performance level eventually increases of an organization. Moreover, through this strategy any organization who is suffering in collaboration of his employees and tasks are going in the wrong direction, if you will not engage them in some joint activities then this separate the organization culture and the end it will effect on the performance of the organization. (Marcoulides, G., & Heck, R., 2013) Analyzed the relationship between organizational culture and the influence on performance using secondary data collected from 26 organizations. The research looked at the impact of organizational culture measured by the year to year sales growth figures and the market share the study also interview employees to see if they were easily adapting to the culture of the organization. The study showed that culture can have a major impact on the performance of the organizations and the study also looked at the turnover rate of the employees as a measuring tool to see if the employees were happy at their organization. The study showed that organizations that with strong cultures retained their employees longer and organizations that had weak cultures had a high rate of turnover. A more recent study done by (Ogbonna, E., & Harris, L., 2011) in which they analyzed the relationship between organizational culture and performance by including the leadership style as a third variable in the model. They used a sample of 1000 units from the Financial Analysis Made easy database of registered British companies. To measure performance they used variables such as: customer satisfaction, sales growth, market share, competitive advantage and sales volume. For organizational culture they used measures such as: competitive culture, innovative culture, bureaucratic culture and community culture. The results showed that all four measures of organizational culture were associated in some way with corporate performance. More specifically, innovative and competitive cultures had a direct effect on performance and accounted for approximately 25 percent of the variance in organizational performance. Both competitive and innovative cultures were externally oriented in line with the assumption that organizational culture must be adaptable to external environment for a sustained competitive advantage. The bureaucratic and community cultures, which were internally oriented, were not directly related to performance. The study also looked at the relationship between market orientation organizational culture, strategic human resource management and organizational performance. The study found a significant impact of organization culture on performance of the organizations. According to the research of (Stewart, 2010) the norms and value of organizational culture highly effect the performance of the organizations. The study noted that the better the employees are in line with the culture of the organization the better the performance and the level of retention of best performing employees. It is also mentioned that if culture is strongly implemented and employees follow all the values then profitability level must be high and due to the high expected association in the culture, firm’s performance also increases at the different level by the passage of time. The researcher also noted that the stronger the culture the better the performance. According to the study of (Abu-Jarad, 2010) noted that organizational culture impact the behavior, learning and development of employees and improved the performance of the organizations. The author is his measured the performance of the firms using sales growth and return on assets and equity. (Zheng, 2010) Argued that organizational culture in one of the key assets that have been observed in great detail the study’s findings noted that there is a direct relationship between a strong organization culture and performance. According to (Duke II & Edet, 2012) they examine that there is large positive relationship between culture and performance of firm by using how many clients served and their funding access, cost of the services that they provided to maintain the performance of the firm. Organization culture represents a structured along with producers that contain a well-defined process and a smooth running organization. One of the main characteristics of a strong organizational culture is the existence of a hierarchy that implements the culture. The long term benefit of this type of culture is stability, predictability and great levels of efficiency. The study of (Tseng, 2010) showed that organizational culture leads to a strong hierarchy it has its pros and cons but his study showed that organizations which have formalized the process and control them and build a culture have showed better performance than others. (Fekete H., 2011) Also looked at the relationship between organizational culture and performance of the organizations. The results of the study showed that the there is a negative correlation among organizational culture and performance. Fekete & Borcskei (2011) Mentioned in his study, we need to measure objectives financials instead of subjective measurements to perceive the impact of organizational culture on firm performance. According to the author, Clan culture shows positively related to the financial performance of the organization. There are some factors behind the positive relationship that is organizational devotedness, loyalty and tradition. The author noted in the limitation of the study that if the sample of the research is changed it can have different results. Among the many studies that have been conducted on the basis that organizational culture and organizational performance on study was done by (Hartnell, Ou, & Kinicki, 2011) states that the presence of a strong culture can influence workers and enhance their attitudes that and motivate them and make them feel part of a larger family. This is only possible with the collective values and beliefs. The study concluded that that a strong organizational culture has a major influence on the performance of organizations. As the concept of organizational culture is spread out amongst the members of organization. It can exist at various levels such as groups and departments in the shape of sub cultures. This sub culture can lead to even better performance of employees and is based upon the values, beliefs, ideologies, customs, norms, traditions, knowledge and skills shared by the members of a group or department in an organization. This type of sub culture can facilitate the creation of a strong culture in the overall organization and lead to stability and better performance in the long run. The study of (Linnenluecke, Russell, & Griffiths, 2009) looked at these sub cultures present in the organization and found them to have major influences on the performance of the organization. (Cameron & Quinn, 2005) Looked at the impact of culture on the organization and the market the study looked what the impact of organization culture has on the market and market culture. Culture puts emphasizes on the attainment of targets and productivity but the culture of the market looks at the external factors and how culture of an organization is impacted by external factors. External factors such a suppliers and customers are also impacted by the culture of the organization. The study concluded that an organization that can create a harmony between external factors and internal culture of the organization can lead to improved performance. (Baird, 2011) Conducted a study to understand the relationship between organizational culture and operational performance and overall performance of the organizations. The study looked at how culture can lead to better total quality management and better performance. The study showed that the presence of an organization culture can improve the moral of the employees and attitude and make them feel valued thus improving their performance. The findings of the study found a positive correlations between the presence of organizational culture and improvements in operational performance. (Brown, 1998) also projected that there are some imperative concerns of the strong organizational culture and its impact on the performance of the firm. Strong Organizational culture always creates new fundamental improvement in the behavior of the employees and performance of the firm indirectly increases. (Engelen, A., Brettel, M. and Wiest, G., 2012) In their study looked at the impact of corporate culture on the performance of the businesses. The study looked at how organization culture can lead to better product development and production the study concluded that organizational culture has a significant impact on the performance of the organizations and the existence of culture can improve productivity and production levels due to better problem solving capabilities. (Denison, 2013) In his study of organization culture put forth a model on which the culture on an organization should be based. The model consisted of four main parts the was involvement which sated organizations should empower their people build teams in the organizations and build human capability at all levels of the organization. The second was consistency which looked at the fact that for a culture to be strong in an organization it has to be consistent, well-coordinated and integrated. This can lead to a powerful and consistent culture and stability in the organization. For Illustration, if there are some openings in between your employees, relationships go faraway and firm will accept its reaction. For better and strong culture in the firm it is very important that rules and regulations must be followed by the employees. The strategies, dealings, and intentions must be inspired upon the employees with the aim of reasonable advantage have been multiplied.

The third part is adaptability which states that organizations that are well integrated are often the hardest to adept to change. Internal integration and external adaption can be against each other Adaptable organizations are driven by their customers, take risks, learn from their mistakes, and have the capability and experience at creating change. They are continuously changing the system so that they are improving the organizations’ collective abilities to provide value for their customers. And the last part was mission Successful organizations have a clear sense of purpose and direction that defines organizational goals and strategic objectives and expresses a vision of how the organization will look in the future .When an organization’s underlying mission changes, changes also occur in other aspects of the organization’s culture.

The sample size of the research study consists of five organizations these organizations are Mark and Spencer PLC, Tesco PLC, Next PLC, GlaxoSmithKline and lastly Legal and General PLC. The sample time period used in this study of above mentioned firms is ten years of period of 2009-2018. The main objective of getting data from five organization of the UK is, researcher can examine the data easily of previous ten years of chosen firms of the UK.

For data collection, three different sources are used such as Fame and Thomson Reuters Eikon 4 which are databases and annual financial reports of the sample firms. The research also used another software to conduct the analysis of the data i.e. SPSS-24. By using SPSS-24, descriptive statistics, correlation regression results are obtained which are reliable and quantified. Data collection from these three different sources were very effective for researcher because of you learnt a lot of thing during getting data from the sources. All the data that researcher get from these sources, from the annual financials reports of the UK organizations.

As the name suggests exploratory research is conducted to explore new findings on a topic or subject that has not been looked at in great detail. It looks at the problem and identifies the best possible way to analyze it and gain understanding. The benefits of doing an exploratory research include flexibility and adaptability according to the problem.

The research study uses secondary data in order to conduct the analysis. Secondary data refers to the data which is already collected by someone else. The benefits of secondary data is for example, if a person wants to establish his business, he or she could assume his future earnings based on the financial results published by the firms running the same business. It is also used in a research or audit to confirm its reliability there for it can generate reliable results.

Quantitative research method is used in this study because the data used in analysis to get the results is numeric data. To this end numerical data was collected of sample firms. Furthermore, the data collected was regard as balanced panel data because more than one sample firms were observed in multiple time period.

The variables that the study will discuss in order to understand the impact of organizational culture on the performance of the firm are return on equity, return on assets which show the profitability and the independent variables will be the size of the organization (total assets) age of employees, % of male employees and the rate of turnover of employees.

Based on literature review his research proposes the following hypothesis.

H1: There exists a positive relationship between male% and the performance variables (ROE and ROA).

H2: There exists a positive relationship between age and the performance variables (ROE and ROA).

H3: There exists a positive relationship between size% and the performance variables (ROE and ROA).

H4: There exists a positive relationship between employee turnover rate% and the performance variables (ROE and ROA).

4.0 Analysis

4.1 Descriptive

The above table shows the value of mean, maximum, minimum and lastly standard deviation of the test data. The number of observation which is denoted by N stands at 50.

The above table highlights the values of correlations between the variables of return on equity, return on assets, male %, age, and size and lastly employee’s turnover rate.

The above tables show the value of R-square, sum of squares, regression, beta and significance in the correspondence of dependent variables return on assets and return on equity.

The researcher have conducted the analysis using SPSS the results of the analysis showed the following results the first test of descriptive. The mean of the variables are as fellows the mean of return on equity stood at 47.4. The mean of return on assets stood at 8.6. The mean of male’s% stood at 41.5. The mean of age stood at 18.40. The mean of size stood at 99294.0. The mean of employee’s turnover rate stood at 273874.8. Correspondingly the value of standard deviation for return on equity stood at 78.9. The value of standard deviation for return on assets stood at 9.43. The value of standard deviation for Males % stood at 11.1. The value of standard deviation for age stood at .808. The value of standard deviation for size stood at 152505.8. The value of standard deviation for employee’s turnover rate stood at 249603.2. The next test done is the nonparametric correlations. This test is done to find out the correlations in between the variables. The correlation between return on equity and return on assets stood at .875. The correlation between return on equity and males % stood at .003. The correlation between return on equity and age stood at .669. The correlation between return on equity and size stood at .518. The correlation between return on equity employees turnover rate stood at .247. The correlation between return on assets and males% stood at .125. The correlation between return on assets and age stood at .693. The correlation between return on assets and size stood at .726. The correlation between return on assets and employees turn over stood at .472. The correlation between male’s % and age stood at .346. The correlation between male’s % and size stood at .656. The correlation between males % and employees turnover rate stood at .649. The correlation between age and size stood at .693. The correlation between age and employees turnover stood at .651. The correlation between size and employees turnover stood at .797. The next test is the regression test firstly the dependent variable was return on assets. For return on assets the value of R stood at .911. The value of R-square stood at .830. The value of adjusted R square stood at .815. The estimated standard error stood at 4.1. The level of R-square indicates that the study is accurate and are reliable. The ANOVA in the regression test showed that the relation with the variable of return on assets and the impendent variables was significant. The second dependent variable is return on equity. For return on equity the value of R stood at .942. The value of R-square stood at.888 and the adjusted R-square stood at .878. The estimated standard error stood at 27.6. The level of R-square indicates that the study is accurate and are reliable. The ANOVA in the regression test showed that the relation with the variable of return on equity and the independent variables was significant. The test also showed that among all the variables male’s% only had an insignificant relationship with return on equity.

Hypothesis-1:

As the regression results show that hypothesis-1 is rejected because there exists a positive insignificant relationship between male% and performance variable (ROE). However, there exists a significant relationship between male% and performance variable (ROA).

Hypothesis-2:

As the regression results show that hypothesis-2 is accepted because of there exists a positive significant relationship between age and performance variables (ROA and ROE).

Hypothesis-3:

As the regression results show that hypothesis-3 accepted because of there exists a positive significant relationship between size and performance variables (ROA and ROE).

Hypothesis-4:

These results show that three hypothesis are accepted and only one hypothesis is rejected in this research. Positive relationship of three independent variables are positively correlated with dependent variables (ROA and ROE). Therefore, only one independent variable (male %) shows that there is positive insignificant relationship with dependent variables (ROA and ROE).

In order to further examine the relationship between culture and firm performance, there is a strong positive relationship between culture and firm performance in the UK. To encapsulate, if any organization suffers with different cultures in the organization, its profitability, performance, collaboration of employees also suffers in the UK market.

The results of the research study have been discussed in detail above there for the research conclusions can now be presented. The analysis revealed that the data collected is significant and reliable and the regression test showed that the level of significance was under 0.05 this means that the null hypothesis H3 that stated there exists no relationship between organizational culture and the performance of the organizations has been rejected and the hypothesis H1: that stated there exists a positive and significant relationship between organizational culture and the performance of the organizations has been proven the results have shown that the r-square value was higher than 80% which indicates that the level of validity of the data is greater than 80%. Also both the dependent variables of return on assets and return on equity where shown to have a relationship between the independent variables. The majority of relation where proven to be significant with the dependent variables. Thus the researcher has concluded that organization culture has an impact on the performance of the tested organizations. This is highlighted by the rate of retention of employees meaning that organizations which have a strong culture retain their employees and in turn they perform better and improve results which is shown in their return on assets and return on equity. The study also showed a positive correlation between the size of the firm and the culture and performance meaning that a large organization stands to gain much more with the presence of a strong culture present. Also the variables of age and males % had a relationship with the dependent variable as well.

Organizational culture plays an important role for any organization, when their employees complete tasks and interact with each other in the organization it is highly impacted on the performance of the organization. Culture differs in different firms, some organizations prefer Clan culture in the organization, they facilitate their employees with mentor and their all efforts about to build the team, some firms of the UK goes with Adhocracy culture where they gives a vision to their employees, some of them provides Market culture and they tries that their employees stay focused on firm’s goals.

In my point of view, regarding to this research organizational culture plays a dynamic role of the performance of the organization. If there are strong relationship between employees of the organization then success factor also increased in the market of the UK.

If there is small organization in the market you will see there is high competition between the employees and the success ratio of the firm also high, moreover their overall performance of the firm also high and this is all about well-maintained organizational culture.

When any Organization aligned the culture in the firm, automatically employees behavior changes and employees talked when it is necessary, performance also increases from bottom to top management and firm grow rapidly.

Chapter 7

Beginning Activities

Refining Topic

Self-Reflection

Analyzing and Interpreting Data

Choosing and Refining Methodology

Collection of Data

At the first step before the start of the dissertation the researcher was presented with the task of selecting the topic of the research. In this effort the researcher went through many topics which captured the interest of the researcher. These topics belonged to different fields related with the business sector form accounting to human resource. Finally the researcher settled on the topic of how organizational culture influenced the performance of the organizations in the United Kingdom. The main reason for the selection of this topic was that it peaked the interest of the researcher. And also it could deliver effective and conclusive results. The researcher only had the time period of three months in which to conduct the entire research.

The researcher first decided on a topic the impact of Organization culture and its conflicts on the success of Project Management. The researcher than organized a meeting with his Supervisor, initially it was a fine topic for the researcher. When author did some research on this topic it was very wide-ranging topic and that time the researcher realized that the time allotted was to do such type of research. The researcher faced some complications during this topic and then again a meet was arranged the supervisor (Scott Lichtenstein) as he was very cooperative. When the researcher and the supervisor discussed on the topic and the researcher shared his views, the supervisor actually understood that there was a flaw in the direction the work is going then both went to the Module Leader (Peter Samuels), The module leader actually helped the researcher out in this scenario, the time was too short and the proposal had just been completed then, Peter Samuels gave the researcher a one week extension because he was on three weeks holidays. Then some changes were made in the research topic. The researcher started working on new topic which was, “Impact of Organizational culture on organizational performance”.

When the researcher started to work on methodology as Peter and Scott gave the researcher some instructions to work on secondary research and the researcher worked on the dissertation according to their instructions. In the research methodology the researcher used secondary data of the firms and it was decided to get the data from five firms of the UK. As the researcher got the data from the different databases. The researcher decide to use quantitative research method in the methodology for the purpose of this research. For empirical analysis, it was very important to get the data first and create some hypotheses which proves the relationship between the variables. In this process, the researcher faced very tough time. The researcher is very thank full to library staff, colleague and access of some software which university provided us to use them for data collection.

For collection of data, the researcher used some software which has been provided by University. The researcher used a software FAME which helped the research out in order to get the data of the companies regarding the independent variables of the research. Second software that the researcher used for getting the data of elected companies was Thomson Reuters Eikon 4 which helped the researcher out in order to get the data of last ten years, firms of the UK.

When the researcher had got a hold of all the required data from mentioned software then the researcher started to analyzed the data by using SPSS software, with the help of SPSS the researcher got the result after running tests such as descriptive statistics, correlation and regression. In the whole process, the researchers asked his friend to help me out for getting these result. Initially, it was very hard for the researcher to use SPSS because for the researcher it was the researcher’s initial experience using the SPSS software. With the help of Peter’s Lecture and the researcher’s friend the researcher was able to obtain some results using SPSS.

During this dissertation, the researcher personally learnt a lot in this Module. Throughout this research the researcher learnt some important procedures of the research which enhanced his knowledge and overcome many problems that were not faced before by the researcher .This Module helped the researcher in polishing his research skills which improved his research practice. The researcher learnt some new software which actually helped him to understand how to get the data of companies and how to get some result on well balanced panel data. My time-management skills have also been improved by the end of the Research Report. This is because there was specific deadline and I had adopt some principle related to time management in order to be submit my work on tim

Bibliography Abu-Jarad, I. Y. (2010). A Review Paper on Organizational Culture and Organizational Performance. . InternationalJournal of Busines and Social Science, 1 (3), , 26-46. ANTHONY S. BOYCE, L. R. (2015). Which comes first, organizational culture or performance? A longitudinal study of causal priority with automobile dealerships. Journal of Organizational Behavior, J. Organiz. Behav . Armstrong, M. &. (2010). Performance management: The new realities. London:Institute of Personnel and Development. Aycan, Z. K. (2010). Organizational culture and human resourcemanagement practices: The model of culture fit. . Journal of Cross-Cultural Psychology. AWADH, A. and MOHAMMED SAAD, A. (2013). Impact of Organizational Culture on Employee Performance. International Review of Management and Business Research, [online] 2(1), pp.168-175. Available at: https://pdfs.semanticscholar.org/e45f/9a6b89663faa17a0045fbb2e43c2ad7df749.pdf [Accessed 11 September 2019]. Baird, K. H. (2011). ‘The relationships between organizational culture, total quality management practices and operational performance. International Journal ofOperations & Production Management, Vol. 31, No. 7, , pp.789–814. Cameron, K., & Quinn, R. (2005). Diagnosing and Changing Organizational Culture: Based on the Competing ValuesFramework. John Wiley & Sons: Chichester, UK, . Catana, G.-A. a. (2010). Organizational culture dimensions in Romanian finance industry. . Journal for East European Management Studies, 15(2), , 128-148. Denison, D. R. (2013). Toward a theory of organizational culture and effectiveness. . Organization Science. Engelen, A., Brettel, M. and Wiest, G. (2012). ‘Cross-functional integration and new product performance – the impact of national and corporate culture’,. Journal of International Management, Vol. 18, No. 1, , pp.52–65. Ezirim, C. B. (2010). Organizational culture and performance: the Nigerian experience. . 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Appendix 2

Appendix 3

3.0 Proposal

The impact of organizational culture on firm performance in the UK

Contents 1 Introduction 2 2 Aims and objectives of the study: 2 2.0 Aims: 2 2.1 Objectives 3 3 Rational of the study: 3 4 Literature review: 4 5 Methodology: 5 6 Project plan: 6 References: 8

In today’s global business environment business are doing everything to improve the performance of their business among the elements that can improve the businesses performance is the presence of a strong culture that can lead the organization to achieve greater levels of success. Culture has can be defined as a pattern of shared assumptions, beliefs ,norms and expectations that can guide the members actions and interpretations of norms and actions of others that can be considered acceptable behavior for employees in an organizations. (Owens, 2012) States that organizational culture is a patterns of joint values and beliefs that over a period of time becomes a behavioral norm. Many companies have made their cultures a part their ethos and are running their day to day to business companies like UPS have made adjustments to their supply chain management and a culture of never Turing in oncoming traffic unless absolutely necessary. Other firms like TOYOTA motor company have made a culture known as kizen that seeks continuances improvement and every problem is dealt with according to the culture. Organization culture in the view of many scholars has an impact on the performance of the businesses researchers like (Rousseau, 2011) in is study looked at the relationship between among the performance of culture of the organization and the performance levels the research showed that there was a positive relationship among the two.

The researcher study is aimed to understand the relationship among the organizational culture and performance of the organizations the research aims to identify the factors that can lead to the creation of a strong culture and how it can be maintained.

The research also aims see the impact of organizational culture has a major firms and how their size can be an influencing factor.

1. The objectives of the research are to observe the cultures that are present at the tested organization. To see if the cultures has a positive or negative effect on their performance.

2. Another objective of the study is see how the culture can influence the turnover over rate of the employees working at the organization and how culture influences the retention of employees.

3. The research also has an objective to see impact culture has on the return on assets and return on equity of the test firms.

The rational of the study is that it looks to understand the relationship between organizational culture and the performance of the organizations. The rational is based on the works of (Denison, 2013) and (Ogbonna, E., & Harris, L., 2011) both these studies looked at the relationship of organizational culture and its impact on the performance of the organization. The research studies looked to identify the relations and impacts on the performance. The results showed that there was a positive relation but more investigation was required and there was also room to include new variables there for the study has included new variables such as age, male’s % and most importantly the turnover rate of employees along with the size of the organization. the turnover rate has been add to observe that if the organizations have a strong culture do employees tend to stay there longer and perform better as a results.

Organizational culture has been the topic of discussion on many researches as they look to understand the impact on not only the organization but the performance of the organization. The presence of a strong culture can be vital to the success of the business and how it can sustain its performance over the long term. There have been many studies done to u understand the influences of organizational culture on the performance of the organizations. (Cameron, 2011) Stated that organizational culture is a vital part of the ethos of the organizations. It helps the organizations to create their own identity in the market. Organizational culture is a major factor for success and it if managed properly can lead to great improvements in performance. The study also noted that sometimes it is very hard to implement new cultures in an organization as it is very hard for people to adept to change but the presence of a strong culture can have long term benefits. The study also conducted an empirical analysis to find out the relationship and the results showed the existence of a significant relationship being present. (Once, S and Almagtome, A., 2014) Also investigated the effects of culture on organizations performance the study was done in the country of turkey and looked at the influence culture had on their business. The author noted that the country has a long and proud history and the values and cultures are embedded in the business. Therefore business that do not adept to the culture face difficulties and their performance suffers as a results. (Herath, S., & Carlis, E., 2017) In their study also looked at how the presence of culture can positively influence business and the lack of one can damage the business. The results of the study showed that organizations that had a strong culture tend to perform better than those organizations than had a weak or no culture. (Tidor, 2012) In his research study looked at the influence of culture on the performance of small and medium sized firms. The results of the study concluded that for small firms the culture had a moderate impact as their performance was based on many other variables such as sales and customer satisfaction. The results here also supported by the work of (Wiengarten, 2011) who is his research looked at the impact of culture on multinational business and found a moderate relationship of organizational culture and performance. (Yoo, 2011) Conducted his research on organizational culture and the impact it had on performance of business on the basis of Hofstede’s model. The results of the empirical analysis showed the existence of a positive relationship between organizational culture and the performance of organizations.

The sample size of the study consists of five organizations these organizations are Mark and Spencer PLC, Tesco PLC, Next PLC, GlaxoSmithKline and lastly Legal and General PLC. The data that is taken of the above mentioned firms were from 2009 up to 2018. The research software used in order to conduct the analysis of the data is the SPSS software it is used due to the software being reliable and the results can be quantified As the name suggest exploratory research is conducted to explore new findings on a topic or subject that has not been looked at in great detail. It looks at the problem and identifies the best possible way to analyze it and gain understanding. The benefits of doing an exploratory research include flexibility and adaptability according to the problem. The research study uses secondary data in order to conduct the analysis. Secondary data refers to the data which is collected from existing data whether it be annual reports. The benefits of secondary data are that for one it can save time. It has may have been previously used in a research or audited to confirm its reliability there for it can generate reliable results .The research has been conduct with the means of an quantitative research this is done in order to ensure that the results are reliable and can be quantified. To this end numerical data was collected and then test by the researcher to gain reliable and quantifiable results. For the collection of the data the researcher used Fame and Thomson Reuters Eikon 4 data base software. Furthermore the data collected was regard as balanced panel data because the same elements were observed in all the years spanning the sample.

References: Cameron, K. Q. (2011). Diagnosing and Changing Organizational Culture:. Based on the Competing Values Framework. John Wiley and Sons, San Francisco, CA, USA. Denison, D. R. (2013). Toward a theory of organizational culture and effectiveness. . Organization Science. Herath, S., & Carlis, E. (2017). Organizational culture and national culture and direct effects on accounting standards and procedures: A literature Review. The Business Management Review, 8(4). Ogbonna, E., & Harris, L. (2011). Leadership style, organizational culture and performance: Empiricalevidence from UK companies. International Journal of Human Resources Management, 11(4),, 766-788. Once, S and Almagtome, A. (2014). The Relationship between National Culture Values and Corporate Environmental Disclosures.An International Perspective. Research Journal of Business and Management, 11(3),. Owens, R. (2012). Organizational behavior in education. . Englewood Cliffs, NJ: Prentice-Hall. Rousseau, D. (2011). Quantitative assessment of organizational culture. Group and OrganizationsStudies, 15(4),, 48-460. Tidor, A. G. (2012). ‘Diagnosing organizational culture forSME performance’, . Procedia Economics and Finance, Vol. 3, , .710–715. Wiengarten, F. F. (2011). ‘Exploring the impact of national culture on investments in manufacturing practices and performance-an empiricalmulti-country study’,. International Journal of Operations & Production Management. Yoo, B. D. (2011). ‘Measuring Hofstede’s five dimensions of cultural values at the individual level: development and validation of CVSCALE’, . Journal of International Consumer Marketing, Vol. 23, Nos. 3–4,, pp.193–210.

ss

Gantt Chart

Start Date Project meeting date Literature Review Gather Information Project proposal (Rough Draft) Project Proposal Submission Project Starting date Read previous Articals Introduction Literature review Data collection Methodology Analysis Discussion Review first five chapter Conclusion Reflective Account Appendix Referances Submission 43625 43626 43631 43641 43646 43650 43653 43666 43676 43687 43692 43697 43704 43709 43713 43718 43723 43726 43728 Task description Project meeting date Literature Review Gather Information Project proposal (Rough Draft) Project Proposal Submission Project Starting date Read previous Articals Introduction Literature review Data collection Methodology Analysis Discussion Review first five chapter Conclusion Reflective Account Appendix Referances Submission 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Duration (days) 1 5 5 5 3 83 13 10 11 5 5 7 5 4 5 5 3 2 5

Tasks

Task numberTask descriptionStart DateEnd DateDuration (days)

1Project meeting date09/06/201910/06/20191

2Literature Review10/06/201915/06/20195

3Gather Information15/06/201920/06/20195

4Project proposal (Rough Draft)25/06/201930/06/20195

5Project Proposal Submission30/06/201903/07/20193

6Project Starting date04/07/201925/09/201983

7Read previous Articals07/07/201920/07/201913

8Introduction20/07/201930/07/201910

9Literature review30/07/201910/08/201911

10Data collection 10/08/201915/08/20195

11Methodology15/08/201920/08/20195

12Analysis20/08/201927/08/20197

13Discussion27/08/201901/09/20195

14Review first five chapter01/09/201905/09/20194

15Conclusion05/09/201910/09/20195

16Reflective Account10/09/201915/09/20195

17Appendix 15/09/201918/09/20193

18Referances 18/09/201920/09/20192

19Submission 20/09/201925/09/20195