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Determinants of the Employee Performance

(A case of fertilizer industry in Pakistan)


SUBMITTED BY:
Hina Hussain Lasi (080639)
A RESEARCH REPORT SUBMITTED IN PARTIAL ULILLMENT O THE
RE!UIREMENT OR THE DE"REE O BBA
DEPARTMENT O BUSINESS ADMINISTRATION
AIR UNI#ERSITY
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R&s&a'() P'*+&(, A--'*.a/ S)&&,
T*-i( *0 R&s&a'():
Determinants of the Employee Performance
(A case study of fertilizer industry in Pakistan)
Na1& *0 S,u2&n,:
Hina Hussain Lasi (080639)
C/ass:
BBA Fall 2008
A--'*.&2 34:

P'*+&(, Su-&'.is*'
(Sa&&2 A5 C)au2)'4)

In,&'na/ E6a1in&'
(a7ai/a A/i !a7i)

In,&'na/ E6a1in&'
(a'**8 Ras)&&2)

D&an
(D'5 I5U5S)a2)
C&',i0i(a,& *0 C*1-/&,i*n
Ms Hina Hussain Lasi, registration no.080639 semester BBA-F-08, has om!lete" their researh
on #une 26, 20$2 un"er m% su!er&ision.
'heir to!i is (Determinants of the Employee Performance
(A case study of fertilizer industry in Pakistan)
'his thesis has )een e*amine" )% me an" it has )een +oun" om!lete in all as!ets an" +it +or
!resentation. 'he stu"ents are, there+ore, allo,e" in the !resentation-&i&a &oe +or "e+en"ing it
)e+ore the !anel o+ e*aminers.

Sa&&2 A5 C)au2)'4
(.u!er&isor)
Acknowledgement
First and foremost, we thank Almighty Allah for blessing us with the knowledge and
strength to overcome the various hardships in the course of producing our thesis.
We are also grateful to our Dean for providing us with such a competent faculty with
their endless persistence, support and encouragement that guided us every step of
the way. We would especially like to show our gratitude to our supervisor Mr. .aee"
A. /hau"hr% for guiding us and who provided assistance in every way possible and
its ust because of his guidance, training and motivation that enabled us to
complete our thesis.
A3s,'a(,
'his stu"% e*amines the Determinants of the Employee Performance (A case study of fertilizer
industry in Pakistan). 0ata ,as gathere" )% means o+ struture" 1uestionnaires2 gathere" +rom
$30 res!on"ents, ,or4ing in the +ertili5er in"ustr% o+ 6a4istan. ',o ma7or !la%ers in the
+ertili5er in"ustr% ,ere hosen to on"ut this researh.
8es!onses +rom the sur&e% ,ere statistiall% anal%5e" using 6earson9s /orrelation Anal%sis an"
8egression anal%sis. 'he results o+ the stu"% in"iate a statistiall% signi+iant relationshi!
)et,een organizational culture, employee empowerment and pay satisfaction an" :m!lo%ee
6er+ormane. 'he +in"ings also re&eal that the most im!ortant &aria)le in this mo"el is
organi5ational ulture.
;&erall the "issertation !ro&i"es ,ith a ritial insight an" !ro&i"es strategies to inreasing
em!lo%ee !er+ormane )% +ostering a !ositi&e organi5ation ulture, )% ma4ing the remunerations
meeting the e*!etations o+ em!lo%ees an" )% em!o,ering em!lo%ees.
TABLE ! "#TE#T$
0esri!tion 6age <o.
$. /ha!ter $
!.!.=ntro"ution>>>.>>>>>>>>>>>>>>>>>>>>>>..$
!.".Fau7i Fertili5er /om!an%>>.>>>>>>>>>>>>>>>>>>..2
!.#.:ngro /hemial 6a4istan>>.>>>>>>>>>>>>>>>>>>..?
!.$.6ur!ose o+ .tu"%>>>>>.>>>>>>>>>>>>>>>>>>...@
!.%.8esearh ;)7eti&es>>>>.>>>>>>>>>>>>>>>>>>..@
2. /ha!ter 2
".!.Literature 8e&ie,>>>>>>>>>>>>>>>>>>>>>>>>8
2.$.$. ;rgani5ational /ulture an" :m!lo%ee 6er+ormane>>>>>>>>8
2.$.2. :m!lo%ee :m!o,erment an" :m!lo%ee 6er+ormane>>>>>>>9
2.$.3. 6a% .atis+ation an" :m!lo%ee 6er+ormane>>>>>>>>>>..$$
".!.$. Aaria)les >>>>>>>>>>>>>>>>>>>>>>>>..$3
".!.%. 8esearh 'heoretial 0esign>>>>>>>>>>>>>>>>>$?
2.$.6. 8esearh Buestions>>>>>>>>>>>>>>>>>>>>..$?
3. /ha!ter 3
3.$. 8esearh Metho"olog%>>>>>>>>>>>>>>>>>>>>>>$3
3.2. Aaria)les>>>>>>>>>>>>>>>>>>>>>>>>>>>..$3
3.2.$. =n"e!en"ent Aaria)les>>>>>>>>>>>>>>>>>>>..$3
3.2.$.$. ;rgani5ational /ulture>>>>>>>>>>>>>>>>..$3
3.2.$.2. :m!lo%ee :m!o,erment>>>>>>>>>>>>>>>..$3
3.2.$.3. 6a% .atis+ation>>>>>>>>>>>>>>>>>>>.$6
3.2.2. 0e!en"ent Aaria)le>>>>>>>>>>>>>>>>>>>>...$6
3.2.2.$. :m!lo%ee 6er+ormane>>>>>>>>>>>>>>>>..$6
3.3. 8esearh 'heoretial 0esign>>>>>>>>>>>>>>>>>>>>$6
#.$.H%!othesis 0e&elo!ment>>>>>>>>>>>>>.>>>>>>>>.$@
#.%.8esearh 0esign>>>>>>>>>>>>>>>>>.>>>>>>>...$@
#.&.6artii!ants >>>>>>>>>>>>>>>>>>>.>>>>>>>..$9
#.'..am!ling >>>>>>>>>>>>>>>>>>>>.>>>>>>>..20
3.8. 0ata 6roessing an" Anal%sis>>>>>>>>>>>>>>>>>>>...20
?. /ha!ter ?
?.$. 0ata Anal%sis>>>>>>>>>>>>>>>>>>>>>>>>>>23
$."./orrelation Anal%sis>>>>>>>>>>>>>>>>.>>>>>>>.23
$.#.8egression Anal%sis>>>>>>>>>>>>>>>>.>>>>>>>.23
3. /ha!ter 3
%.!./onlusion >>>>>>>>>>>>>>>>>>>>.>>>>>>..2@
%.".8eommen"ation >>>>>>>>>>>>>>>>>>.>>>>>>28
&. 8e+erenes >>>>>>>>>>>>>>>>>>>>>>>.>>>>>..32
@. A!!en"i*-A>>>>>>>>>>>>>>>>>>>>>>>>>>>>.36
CHAPTER %
INTRODUCTION
'he +ertili5er in"ustr% has !la%e" a signi+iant an" res!onsi)le role in the "e&elo!ment o+ )oth
the agriulture an" in"ustrial setors o+ eonom%. Fertili5er =n"ustr% is in turmoil "ue to @0C rise
in gas !ries in the %ear $999.
Agriulture setor ou!ies the "ominant !osition )ut +aile" to gi&e "ue attention to :onomi
0e&elo!ment. 'he %iel" !er hetare is lo, in our ountr% "ue to &arious reasons. Dsing Fertili5er
in re1uire" 1uantit% an" 1ualit% at a!!ro!riate time is )est ho!e to im!ro&e !er hetare %iel" i+
irrigation ,ater an" erti+ie" see"s are !ro&i"e" aor"ing to re1uirement an" ,eather on"itions
are +a&ora)le, )eause +ertili5er !ro&i"es essential nutrients ,hih are re1uire" +or the smooth
gro,th o+ a !lant.
At the time o+ in"e!en"ene o+ 6a4istan, there ,as no an% +ertili5er +ator% )ut at !resent ele&en
+ertili5er units ,or4 )oth in !ri&ate an" !u)li setors. 'he Eo&ernment im!orts +ertili5ers )%
in&esting huge +oreign e*hange e&er% %ear in or"er to meet the re1uirement o+ +armers ,hih
results in )alane o+ !a%ment risis an" shortage o+ +oo". =n :nglan" in $8?2 .ir #ohn La,es
treate" )ones ,ith sul!huri ai" an" )egan !ro"uing a !ro"ut he alle" su!er!hos!hate. =n
$683, or the +irst time, !otassium ,as 0etete" in the ro4 salt mine" at stass+urt, Eerman%. 'his
"iso&er% le" to the +oun"ation o+ the !otash in"ustr%.
=n 6a4istan, Fertili5er is !ro"ue" sine $93@, at !resent +i&e t%!es o+ +ertili5er i.e. <, /A<, A.,
<6, an" ..6 are !ro"ue" an" mar4ete" )esi"es im!orte" Fertili5ers, )% )oth 6u)li an" 6ri&ate
.etor. 6a4istan has ten +ertili5er !lants, si* state-o,ne" an" +our !ri&ate, ,ith a total annual
!ro"ution a!ait% o+ ?.63 million tons. 6ro"ution in 2000-0$ ,as 3.66 million tons, u! $0.3C
+rom $999-00
'here is an in"iation o+ im!ro&ement in urea o++ ta4e as ,ell as hi4e in ost o+ goo"s sol" F
mainl% "ue to inrease in ost o+ gas use" as +ee"sto4. 'he higher o++ ta4e has )een "es!ite
ontinue" shortage o+ irrigation ,ater throughout the ountr% an" !artiularl% in .in"h. 0uring
this !erio" Fau7i Fertili5er /om!an% also a1uire" 6a4 .au"i Fertili5er Limite" (6.FL), ,hih
,ill )e merge" into it. Ghile !ro"ution o+ 0A6 remaine" sus!en"e" at FF/-#or"an, !ro"ution
!
o+ <6H at :ngro /hemial 6a4istan, at Bin Basim !lant, ahie&e" higher le&el o+ a!ait%
utili5ation.
%5$) au+i &',i/i7&' C*1-an4
Gith a &ision to a1uire sel+ - su++iien% in +ertili5er !ro"ution in the ountr%, FF/ ,as
inor!orate" in $9@8 as a !ri&ate limite" om!an%. 'his ,as a 7oint &enture )et,een Fau7i
Foun"ation (a lea"ing harita)le trust in 6a4istan) an" Hal"or 'o!soe A-. o+ 0enmar4.
'he initial share a!ital o+ the om!an% ,as 8$3.9 Million 8u!ees. 'he !resent share a!ital o+
the om!an% stan"s a)o&e 8s. 8.?8 Billion. A""itionall%, FF/ has more than 8s. 8.3 Billion as
long term in&estments ,hih inlu"e sta4es in the su)si"iaries FFBL, FF/:L an" assoiate
F//L.
FF/ ommene" ommerial !ro"ution o+ urea in $982 ,ith annual a!ait% o+ 3@0,000 metri
tons.
'hrough 0e-Bottle <e4ing (0B<) !rogram, the !ro"ution a!ait% o+ the e*isting
!lant inrease" to 693,000 metri tons !er %ear.
6ro"ution a!ait% ,as enhane" )% esta)lishing a seon" !lant in $993 ,ith annual
a!ait% o+ 633,000 metri tons o+ urea.
FF/ !artii!ate" as ma7or sharehol"ers in a ne, 0A6-Drea manu+aturing om!le* ,ith
!artii!ation o+ ma7or international-national institutions. 'he ne, om!an% Fau7i
Fertili5er Bin Basim Limite" (+ormerl% FF/-#or"an Fertili5er /om!an% Limite")
ommene" ommerial !ro"ution ,ith e++et +rom #anuar% 0$, 2000. 'he +ailit% is
"esigne" ,ith an annual a!ait% o+ 33$,000 metri tons o+ urea an" ??3,300 metri tons
o+ 0A6, re&am!e" to 6@0,000 metri tons o+ 0A6.
=n the %ear 2002, FF/ a1uire" e* 6a4 .au"i Fertili5ers Limite" (6.FL) Drea 6lant
situate" at Mir!ur Mathelo, 0istrit Ehot4i +rom <ational Fertili5er /or!oration (<F/)
through !ri&atisation !roess o+ the Eo&ernment o+ 6a4istan. =t has annual !ro"ution
a!ait% o+ 3@?,000 metri tons urea ,hih has )een re&am!e" to @$8,000 metri tons
urea in 2009.
"
'his a1uisition at 8s. 8,$3$ million re!resente" the largest in"ustrial setor transations
in 6a4istan at that time.
FF/ is ommitte" to !la% its lea"ing role in in"ustrial an" agriultural a"&anement in 6a4istan
)% !ro&i"ing 1ualit% +ertili5ers an" allie" ser&ies to its ustomers an" gi&en the !assion to e*el,
ta4e on +resh hallenges, set ne, goals an" ta4e initiati&es +or "e&elo!ment o+ !ro+ita)le
)usiness &entures.
FF/9s &ision +or the 2$st /entur% remains +ouse" on harmoni5ing the /om!an% ,ith +resh
hallenges an" enom!asses "i&ersi+iation an" em)ar4ing on &entures ,ithin an" )e%on" the
territorial limits o+ the /ountr% in olla)oration ,ith lea"ing )usiness !artners.
Fau7i Fertili5er en7o%s the largest share o+ +ertili5er mar4et, registere" ?.@ !er ent inrease in
!ro+it a+ter ta* "uring #an-#une !erio" o+ %ear 2002. =t also "elare" seon" interim "i&i"en" o+
30 !er ent ma4ing the total !a%out 33 !er ent so +ar. 'he 22.@ !er ent inrease in sales ma% )e
attri)ute" to higher sales &olume an" 3 !er ent inrease in urea !ries sine #anuar% this %ear. A
29 !er ent inrease in ost o+ goo"s sol" "erease" its gross margin. 'he "eline in o!erating
margins highlights the relati&el% "i++iult o!erating en&ironment +or the om!an%. 'he 32 !er
ent "eline in other inome is "ue to enhane" len"ing to FF/-#or"an, the a1uisition o+ 6.FL
an" "eline in its return on "e!osits. 'he mar4-u! osts o+ 6.FL9s merger "i" not re+let in hal+
%earl% results. Ho,e&er, +inanial harges are e*!ete" to inrease signi+iantl% "uring the
seon" hal+ o+ this %ear.
FF/ is the mar4et lea"er in urea sales, an" is e*e!te" to maintain its "ominant !osition till
20$0. =t has mar4et share o+ 30.
#
%53) En9'* C)&1i(a/ Pa:is,an
:ngro /or!oration Limite" is one o+ 6a4istanIs largest onglomerates ,ith )usinesses ranging
+rom +ertili5ers to !o,er generation.
=n the interest o+ )etter managing an" o&erseeing )usinesses o+ su)si"iaries an" a++iliates that are
urrentl% !art o+ :ngroIs a!ital in&estments, :ngro /hemial 6a4istan Limite" on&erte" into a
hol"ing om!an% struture. As !art o+ this !roess, t,o ma7or hanges ourre" ,ith e++et +rom
#anuar% $, 20$02 :ngro /hemial ,as rename" as :ngro /or!oration Limite" an" it "emerge"
an" trans+erre" its +ertili5er )usiness into a se!arate ,holl% o,ne" su)si"iar%, :ngro Fertili5ers
Limite".
/urrentl% :ngro /or!orationIs !ort+olio onsists o+ se&en )usinesses ,hih inlu"e hemial
+ertili5ers, 6A/ resin, a )ul4 li1ui" hemial terminal, in"ustrial automation, +oo"s, !o,er
generation an" ommo"it% tra"e.
Besi"es !ro&i"ing the long term &ision +or the om!an% an" o&erseeing !er+ormane o+ the
su)si"iaries an" a++iliates, :ngro /or!oration Limite" is also res!onsi)le +or alloation o+
a!ital, management o+ talent, lea"ershi! "e&elo!ment, H8 gui"ing !oliies, lea"ershi! role in
!u)li relations an" /.8 ati&ities, ontrol strutures, legal an" =' su!!ort.
=n $93@, the searh +or oil )% 6a4 .tan&a, an :sso-Mo)il 7oint &enture le" to the "iso&er% o+
the Mari Eas +iel" near 0ahar4i J a small, remote area in D!!er .in"h !ro&ine at the time. :sso
!ro!ose" the esta)lishment o+ a urea !lant in that area ,hih le" to a +ertili5er !lant agreement
signe" in $96?. =n the su)se1uent %ear, :sso 6a4istan Fertili5er /om!an% Limite" ,as
inor!orate", ,ith @3C o+ the shares o,ne" )% :sso an" 23C )% the general !u)li.
'he onstrution o+ a urea !lant ommene" at 0ahar4i in $966 an" !ro"ution )egan in $968.
At D. K?3 million ,ith an annual !ro"ution a!ait% o+ $@3,000 tons, it ,as the single largest
+oreign in&estment )% a multinational or!oration in 6a4istan at the time.
A +ull-+le"ge" mar4eting organi5ation ,as esta)lishe" ,hih un"ertoo4 agronomi !rograms to
e"uate the +armers o+ 6a4istan. As the nationIs +irst +ertili5er )ran", :ngro (then :sso) hel!e"
$
mo"erni5e tra"itional +arming !raties to )oost +arm %iel"s, "iretl% im!ating the 1ualit% o+ li+e
not onl% +or +armers an" their +amilies, )ut +or the nation at large. As a result o+ these e++orts,
onsum!tion o+ +ertili5ers inrease" in 6a4istan, !a&ing the ,a% +or the /om!an%Is )ran"e" urea
alle" (:ngroL, an aron%m +or (:nerg% +or Ero,thL.
As !art o+ an international name hange !rogram, :sso )eame :**on in $9@8 an" the /om!an%
,as rename" :**on /hemial 6a4istan Limite". 'he /om!an% ontinue" to !ros!er as it
relentlessl% !ursue" !ro"uti&it% gains an" stri&e" to attain !ro+essional e*ellene.
=n $99$, :**on "ei"e" to "i&est its +ertili5er )usiness on a glo)al )asis. 'he em!lo%ees o+
:**on /hemial 6a4istan Limite", in !artnershi! ,ith lea"ing international an" loal +inanial
institutions, )ought out :**onIs @3C e1uit%. 'his ,as at the time an" !erha!s still is the most
suess+ul em!lo%ee )u%-out in the or!orate histor% o+ 6a4istan. 8ename" as :ngro /hemial
6a4istan Limite", the /om!an% has gone +rom strength to strength, re+lete" in its onsistent
+inanial !er+ormane, gro,th o+ the ore +ertili5er )usiness, an" "i&ersi+iation into other
)usinesses.
Along the ,a%, a ma7or milestone in !lant a!ait% u!gra"e oini"e" ,ith the em!lo%ee le"
)u%-out2 inno&ati&el% o!timi5ing our resoures, :ngro reloate" +ertili5er manu+aturing !lants
+rom the DH an" D. to its 0ahar4i !lant site J an international +irst.
:ngro /hemial 6a4istan Limite" then starte" a 7ourne% o+ &enturing into other setors inlu"ing
+oo"s, energ%, in"ustrial ontrol an" automation, 6A/ resin manu+aturing an" mar4eting, an"
hemial terminal an" storage.
=n 2009 !lans ,ere announe" o+ "emerging the +ertili5er )usiness into an in"e!en"ent o!erating
om!an%. 'he e*!ansion an" gro,th in the om!an% neessitate" a hange in the ,a% the
om!an% o!erate" an" on"ute" )usiness. Hee!ing in &ie, the o!erations o+ multi ategor%
)usinesses, e*!ansion strateg% an" gro,th &ision, the management "ei"e" that the &arious
)usinesses ,oul" )e )etter ser&e" i+ the /om!an% ,as on&erte" to a hol"ing om!an%. As a
result it ,as "ei"e" to "emerge the +ertili5er )usiness an" esta)lish a hol"ing om!an% struture
to manage the a++airs o+ &arious )usinesses.
%
:ngro Fertili5ers Limite" ,as inor!orate" in #une 2009 to manage the +ertili5er )usiness !ost
"emerger. 'he "emerger re1uire" the a!!ro&al o+ the High /ourt o+ .in"h, ,hih ,as grante" on
0eem)er 9, 2009 a+ter o)taining the re1uisite a!!ro&als +rom the re"itors an" sharehol"ers o+
the /om!an%. 'he "emerger )eame e++eti&e +rom #anuar% $, 20$0. /onse1uentl%, all +ertili5er
)usiness assets an" lia)ilities ha&e )een trans+erre" to :ngro Fertili5ers Limite" against the issue
o+ shares to the /om!an%.
'o re+let the hange in the so!e o+ man"ate an" sale o+ o!erations, :ngro /hemial 6a4istan
Limite" has )een rename" as M:ngro /or!oration Limite"I ,ith e++et +rom #anuar% $, 20$0.
:ngro /or!, as the hol"ing om!an% is res!onsi)le +or the long term &ision o+ the om!an%,
o&erseeing the !er+ormane o+ the su)si"iaries an" a++iliates, alloation o+ a!ital, management
o+ talent, lea"ershi! "e&elo!ment, H8 gui"ing !oliies, lea"ershi! role in !u)li relations an"
/.8 ati&ities, ontrol strutures, legal an" =' su!!ort.
:ngro /or! ,ill maintain a lean struture ,ith a +ouse" so!e, allo,ing ma*imum
em!o,erment to the su)si"iaries an" a++iliates to "ri&e the o!erations o+ their res!eti&e
organi5ations.
'heir ommitment to highest stan"ar"s o+ integrit% an" trans!aren% has sha!e" :ngroIs
go&ernane +rame,or4 an" !roesses, ,hih are aligne" to the in"ustr%Is )est !raties. :&er%
em!lo%ee at :ngro is a !art o+ the go&ernane s%stem an" is re1uire" to a"here to learl% lai" out
!oliies an" !roe"ures.
:ngro /hemialIs !ro+it )e+ore ta* +or hal+ %ear inrease" )% 80 !er ent at the )a4 o+ ?0 !er
ent inrease in sales as om!are" to the orres!on"ing !erio" o+ last %ear. 6ro+it amounte" to 8s
?@$ million ,hih ,as !artl% o++set )% 8s 3@ million loss ma"e )% the <6H o!eration. 'he
om!an% announe" 20 !er ent interim "i&i"en". Ghile some anal%sts term this !a%out an
in"iator o+ the unertainties shrou"ing the setor, the% ignore t,o +ators. 'hese areN $)
historiall%, the om!an% has )een !a%ing similar interim "i&i"en" an" 2) +ollo,e" the same
"es!ite im!ro&ement in )ottom line. 'he o&er ?0 !er ent inrease in sales ma% )e attri)ute"
more to the lo,er sales "uring the orres!on"ing !erio" o+ last %ear. /ontrar% to Fau7i Fertili5er,
:ngro9s ost o+ goo"s sol" inrease" at a rate less than the inrease in sales, resulting in
&
im!ro&ement in gross margin. A 2$ !er ent inrease in ta* rate to 3$.3 !er ent is "ue to e*!ir%
o+ the inome ta* e*em!tion that the om!an% has )een en7o%ing on its e*!ansion.
%5;) Pu'-*s& *0 S,u24
'his stu"% is aime" at "e&elo!ing the un"erstan"ing o+ the role an" the im!at o+ organi5ational
ulture, em!lo%ee em!o,erment an" !a% satis+ation on the em!lo%ee !er+ormane. 'he
literature strongl% su!!orts the onstrut that all three &aria)les (organi5ational ulture em!lo%ee
em!o,erment an" !a% satis+ation) !la% a 4e% role in in+luening the em!lo%eesI !er+ormane.
'a4ing in aount the urrent irumstanes an" the )usiness en&ironment, it has )eome
e*tremel% neessar% +or the sur&i&al o+ the +irm to ma*imi5e the em!lo%ee !er+ormane,
there+ore one the aim in )roa"er !ers!eti&e is to un"erstan" ,hat ultures +osters high
!er+ormane attri)utes in em!lo%ees, ho, em!o,ering the em!lo%ees ,oul" enhane their
!er+ormane an" lastl% the role an" im!at o+ !a% satis+ation in em!lo%ee !er+ormane.
%5<) R&s&a'() O3+&(,i.&s
'o "iso&er ,hether the !ere!tions o+ organi5ational ulture e*ists in +ertili5er in"ustr%
in 6a4istan.
'o 4no, the relationshi! )et,een the !ere!tions o+ em!lo%ee !er+ormane ,ith
organi5ational ulture.
'o 4no, the +lutuations in !ere!tions o+ em!lo%ee !er+ormane, &ar% )% the le&el o+
!a% satis+ation.
'o in&estigate ,hether the !ere!tions o+ em!lo%ee !er+ormane &ar% )% the "i++erene
in em!lo%ee em!o,erment
'
CHAPTER $
LITERATURE RE#IE=
$5%5%) O'9ani7a,i*na/ Cu/,u'& an2 E1-/*4&& P&'0*'1an(&
=n"ee", an e*amination o+ the literature is li4el% to onlu"e that organi5ational ulture is one o+
the most !o!ular one!ts in the +iel"s o+ management an" organi5ational theor%. ;ne reason o+
the !o!ularit% o+ the ulture one!t is the inreasing num)er o+ theoretial !ers!eti&es (Martin,
$992) an" organi5ational "isi!lines ,hih utili5e the one!t (Harris an" ;g)onna, $999).
;rgani5ational ulture ,as one seen as (ho, things are "one aroun" hereL (0rennan, $992) )ut
has sine e&ol&e" into a +aet o+ management ,ith a ro)ust range o+ literature a++or"ing a +ar
"ee!er un"erstan"ing. .heinIs "e+inition ($983) remains one o+ the most o+ten use" an" an )e
summe" u! as the learne" !ro"ut o+ grou! e*!eriene ,hih a++ets the )eha&ior o+ in"i&i"uals.
;rgani5ational ulture is "i++erentiate" +rom organi5ational limate in that it is not as o&ert.
;rgani5ational ulture is also "i++erentiate" +rom organi5ation struture in that struture has more
to "o ,ith the relationshi!s )et,een in"i&i"uals in an organi5ation.
0eri&e" +rom literature organi5ational ulture means organi5ational tra"itions, ustoms, !oliies
an" metho" o+ ,or4ing. ;rgani5ational ultures ha&e an im!at on em!lo%ee !er+ormane,
learning an" !ro"uti&it%. 'he organi5ations ,hih e*!ose their em!lo%ees to ne, e*!erienes
an" tr% to a!itali5e on em!lo%ee strengths are reating a human resoure asset ,hih ,ill
)ene+it the entire soiet%.
:arl% researh suggeste" that strong ultures, or those ,ith ,i"el% ae!te" )elie+s ,ithin the
organi5ation, !er+orme" )etter than those ,ith a la4 o+ share" &alues (6eter an" Gaterman,
$9822 6asale an" Athos, $9862 0eal an" Henne"%, $982).
Ho,e&er, ,hen ulture is too strong it an lea" to stagnation an" a re"ue" a)ilit% to a"a!t to
hanges in the en&ironment (/lo4e an" Eol"smith, 2002). .hein ($983) atuall% !re"its in
Organizational Culture and Leadership that the ulture o+ the +uture ,oul" )e the one that
hea&il% !romote" ati&e learning an" training.
(
$5%5$) E1-/*4&& &1-*>&'1&n, an2 E1-/*4&& -&'0*'1an(&
'he ommon "itionar% "e+inition o+ em!o,erment, Oto gi&e o++iial authorit% toN "elegate legal
!o,er toN ommission, authori5eO (Ero&e, $9@$) is the one most un"erstoo" )% most !eo!le. As
an e*am!le, Ean"5 ($990) ,rites, :m!o,erment means that management &ests "eision-ma4ing
or a!!ro&al authorit% in em!lo%ees ,here, tra"itionall%, suh authorit% ,as a managerial
!rerogati&e. Ho,e&er, this is not the "e+inition o+ ,hat is usuall% alle" em!lo%ee
em!o,erment. ;ne author notes em!o,erment is, Oeas% to "e+ine in its a)seneFalienation,
!o,erless, hel!lessnessF)ut "i++iult to "e+ine !ositi&el% )eause it 9ta4es on a "i++erent +orm in
"i++erent !eo!le an" onte*ts9O (Pimmerman, $990). Ghen most !eo!le re+er to em!lo%ee
em!o,erment the% mean a great "eal more than "elegation.
'he most om!rehensi&e "e+inition o+ em!o,erment in the literature an )e +oun" in 'homas
an" Aelthouse9s $990 artile entitle" O/ogniti&e elements o+ em!o,ermentN An 9inter!reti&e9
mo"el o+ intrinsi tas4 moti&ationO. 'he "e+inition the% !ro&i"e isN
'o em!o,er means to gi&e !o,er to. 6o,er, ho,e&er, has se&eral meanings>authorit%, so that
em!o,erment an mean authori5ation a!ait%. Ho,e&er, !o,er also means energ%. 'hus to
em!o,er also an mean to energi5e. 'his latter meaning )est a!tures the !resent moti&ational
usage o+ the term.
:m!o,ere" em!lo%ees ha&e )een i"enti+ie" sharing se&eral harateristis through the literatureN
the% are sel+-moti&ate", the% are ommitte" !eo!le "e"iate" to high le&els o+ e++ort, the%
"emonstrate initiati&e at ,or4, an" the% ha&e +ous in aom!lishing tas4s an" !ro7ets in the
,or4 en&ironment (Blo4, $98@2 Hi5ilos, $9902 'homas Q Aelthouse, $990). A""itionall%,
em!o,ere" em!lo%ees are +re1uentl% re+erene" an" i"enti+ie" as &alua)le assets to
organi5ations (Ha%e Q #or"an-:&ans, 200$2 Buinn Q .!reit5er, $99@2 .!reit5er, $996).
:m!lo%ee em!o,erment shares man% ommon threa"s ,ith em!lo%ee in&ol&ement initiati&es
(/orrigan, $998). :m!o,erment has also )een assoiate" ,ith an em!hasis on 1ualit% (Ho,ar"
Q Foster, $999). Ghile em!lo%ee in&ol&ement ma% )e onsi"ere" more !roess oriente", an" in
man% ases a !reursor to suess+ul em!o,erment, em!lo%ee em!o,erment is more o+ a state
o+ min", or ogniti&e &aria)le. 'homas an" Aelthouse ($990) )uilt on the researh an" anal%ses
)
!er+orme" )% /onger an" Hanungo ($988) to "esri)e a riher ogniti&e theor% o+
em!o,erment. 'homas an" Aelthouse "etermine" there are +our ogniti&e &aria)les or tas4
assessments that "etermine em!lo%ee em!o,erment. .!reit5er ($993) !ro&i"e" +urther
a!!liations o+ the +our &aria)les, ,ith sel+-"etermination (0ei, $9@3) )eing s%non%mous ,ith
hoie.
Finall%, im!at is relate" to the !ere!tion o+ an em!lo%ee that their +untions a"" &alue. 'homas
an" Aelthouse ($990) state" that im!at relates to the aom!lishment o+ the tas4 or !ro"uing
inten"e" e++ets in the ,or4 en&ironment. =t ,as )elie&e" that em!lo%ees ,ill +eel em!o,ere" i+
the% (a) !erei&e their ations !ositi&el% a++et mo&ement to,ar"s the goals or &ision o+ the
om!an% an" ()) )elie&e their ations ha&e an e++et on ma4ing !rogress to,ar"s those goals.
0esri!tions o++ere" )% 0ei ($9@3) regar"ing intrinsiall% moti&ate" !eo!le are onsistent ,ith
"esri!tions o+ em!o,ere" em!lo%ees ('homas Q Aelthouse, $990). 0ei an" 8%an ($983)
harateri5e" intrinsiall% moti&ate" )eha&ior as in"i&i"uals ,ith more on+i"ene, +le*i)le,
reati&e, an" resilient ,hen om!are" to e*trinsiall% moti&ate" )eha&ior. Bennis an" <anus
($983) )elie&e" ,hen in"i&i"uals ,ere intrinsiall% moti&ate" the% are more sensiti&e to the
1ualit% o+ their ,or4. 'he% +urther )elie&e" that intrinsi moti&ation ha" "ee!er meaning to the
in"i&i"ual2 there+ore it ,as more li4el% to )e sustaine" through time.
:m!lo%ee em!o,erment is )est "e+ine" as ogniti&e elements as o!!ose" to em!lo%ee
in&ol&ement, ,hih an )e more !roess oriente". ',o main t%!es o+ em!o,erment a!!ear in
the researhN strutural em!o,erment an" !s%hologial em!o,erment. .trutural em!o,erment
"eals more ,ith the "elegation o+ !o,er an" "eision ma4ing than !s%hologial em!o,erment,
,hih ten"s to &ie, the on"ition +rom a more intrinsi an" sel+-"etermine" as!et. A signi+iant
!ortion o+ the researh in&ol&e" sel+-e++ia% (Ban"ura, $9@@2 /onger Q Hanungo, $9882 ;5er Q
Ban"ura, $990), ,hih relates to the !s%hologial &ie, o+ em!o,erment an" lea" the
"isussion to the +our ognitions o+ em!o,erment ('homas Q Aelthouse, $990). 'homas an"
Aelthouse )elie&e" that em!o,erment ,as "ee!er than onl% sel+-e++ia%, an" onlu"e" there
,ere +our om!onents o+ em!o,ermentN om!etene, meaning+ulness, hoie, an" im!at.
!*
$5%53) Pa4 sa,is0a(,i*n an2 E1-/*4&& P&'0*'1an(&
+ompensation satisfaction represents an important construct to
organi,ations and to the field of -uman .esource Management, because it
serves as a critical mediator between an organi,ations compensation policy
and relevant behavioral and attitudinal outcomes /0lau, !))$1 2turman 3
2hort, "***4. 5ay satisfaction is defined as the amount of overall positive
affect /or feelings4 individuals have toward pay /Miceli 3 6ane, !))!4.
0eyond this simple definition, the most recent reviews /7erhart 3 Milkovich,
!))"1 -eneman 3 8udge, "***1 Miceli 3 6ane, !))!4 reveal disagreement
regarding the conceptuali,ation of the construct. 2ome researchers argue
that pay satisfaction is uni dimensional /Miceli, 9ear 3 2chwenk, !))!4
others operationali,e it as having between four /De+onnick, 2tilwell, 3 0rock,
!))&4 and seven dimensions /Williams, +arraher, 0rower, 3 McManus, !)))41
and yet others suggest that the number of dimensions depends on
moderators such as cognitive comple:ity /+arraher 3 0uckley, !))&4 and
employee ob classification. Despite numerous studies focused on
determining the ;true< dimensionality of pay satisfaction, the problem has
not been definitively resolved.
5ay has long been considered one of the most important organi,ational
rewards /-eneman 3 8udge, "***4 because it allows employees to obtain
other reward. Frederick =aylor /!)!!4 was one of the earliest to recogni,e
the motivating effects of pay when he proposed that workers put forth e:tra
effort on the ob to ma:imi,e their economic gains. Although this premise
lost favor in the late !)"*s with the emergence of the human relations
school /Wren, !))$4, money remains the fundamental way that organi,ations
reward employees.
>et, despite the long?standing importance of pay, the way pay impacts the
behavior of employees remains to be e:plained. .einforcement theory and
e:pectancy theory emerged as the earliest theories to shed some light on
how pay influences employee behavior. .einforcement theory suggests that
!!
pay acts as a general reinforcer because of its repeated pairing with primary
reinforces. 5eople learn from life e:periences that a primary need, such as
food or shelter, can be satisfied if money is obtained. @ther theorists suggest
that through similar e:periences a drive for money itself develops /Dollard 3
Miller, !)%*4. Whether treating pay as a means to an end or as an end itself,
reinforcement theory does not provide a clear e:planation for how pay acts
as an impetus for action. 5eople engage in behaviors because of past
e:periences, but the process by which past e:periences determine an
individuals future behavior remained unclear.
+learly, providing an employee with a satisfactory pay package is important
to the operations of an organi,ation. Af employees do not feel they are being
treated fairly, they will act to reduce the tension caused by ineBuity. For
e:ample, if the employee feels the outputCinput ratio is below the referent
other, the employee may reduce the number of organi,ational citi,enship
behaviors /@+0s4 e:hibited /@rgan, !))$1 Williams 3 Anderson, !))!4.
7lobal pay satisfaction research has advanced the understanding of pays
importance in organi,ations in significant ways. First and foremost, the shift
in focus from obective pay to the affective reaction to pay provides an
important intervening variable between pay and outcomes.
2econdly, the theoretical underpinnings of this research stream, eBuity
theory /Adams, !)&#4 and its close derivative, discrepancy theory /6awler,
!)'!4, e:pand on the theories used in pay research to provide a process by
which pay satisfaction is determined. Finally, these theories offer
suggestions regarding the effect of pay satisfaction on outcomes /Adams,
!)&#1 +ampbell 3 5ritchard, !)'&1 6awler, !)'!4. What this stream of
research does not e:plain is which of these possible behaviors will be
chosen. Af the pay level or benefit level is not satisfactory, the desirability of
movement will increase and it is more likely that withdrawal behaviors such
as tardiness, absenteeism, and turnover will increase. Dnsatisfactory pay and
!"
benefit levels may also reduce the motivation of employees and eventually
negatively impact individual, group, and organi,ation performance.
2.1.4) Variables
Independent Variables:
=he independent variables chosen are based on literature support. Due to
certain research limitation such as time and cost constraint only three
variables were chosen. =hese are as followingE
F @rgani,ational +ulture
F Gmployee Gmpowerment
F 5ay satisfaction
Dependent Variable:
=he focus of research is on the performance of employees1 therefore the
dependent variable in this study is
F Gmployee 5erformance
As discussed earlier, employee performance is affected by many other
variables but in order limit the scope of research due to limitations1 only
three variables have been added for the study.
!#
2.1.5) Research heoretical Design


/Andependent Hariables4
/Dependent Hariable4
2.1.!) Research "#estions
Does organi,ational culture play a role in enhancing the employee
performanceI
Does empowerment of employees lead to enhanced performanceI
=o what e:tent does pay satisfaction impacts the employee performanceI

!$
@rgani,ationa
l +ulture
Gmployee
Gmpowerment
5ay
2atisfaction
Gmployee
5erformance
CHAPTER 3
RESEARCH METHODOLO"Y
'his researh ,as on"ute" in or"er to "etermine the im!at an" role o+ organi5ational ulture,
em!lo%ee em!o,erment an" !a% satis+ation on the em!lo%ee !er+ormane. ;riginall% it ,as
"ei"e" to inlu"e more &aria)les )ut "ue to the limitation "isusse" in the !rior ha!ter2 the
researh ,as +ouse" to onl% three &aria)les i.e. ;rgani5ational /ulture, :m!lo%ee
:m!o,erment an" 6a% .atis+ation. :&i"entl%, a lot literature also su!!ort that these &aria)les
!la% ma7or role in enhaning or "ereasing em!lo%ee !er+ormane2 muh "etail has alrea"% )een
!ro&i"e" in the seon" ha!ter o+ this "issertation.
35$) #a'ia3/&s
35$5%) In2&-&n2&n, #a'ia3/&s:
'he in"e!en"ent &aria)les hosen are )ase" on literature su!!ort. 0ue to ertain researh
limitation suh as time an" ost onstraint onl% three &aria)les ,ere hosen. 'hese are as
+ollo,ingN
O'9ani7a,i*na/ Cu/,u'&
E1-/*4&& E1-*>&'1&n,
Pa4 Sa,is0a(,i*n
35$5%5%) O'9ani7a,i*na/ Cu/,u'&:
;rgani5ational ulture is the olleti&e )eha&ior o+ humans that are !art o+ an organi5ation, it is
also +orme" )% the organi5ation &alues, &isions, norms, ,or4ing language, s%stems, an" s%m)ols,
it inlu"es )elie+s an" ha)its. =t is also the !attern o+ suh olleti&e )eha&iors an" assum!tions
that are taught to ne, organi5ational mem)ers as a ,a% o+ !erei&ing, an" e&en thin4ing an"
+eeling. ;rgani5ational ulture a++ets the ,a% !eo!le an" grou!s interat ,ith eah other, ,ith
lients, an" ,ith sta4ehol"ers.
35$5%5$) E1-/*4&& E1-*>&'1&n,:
:m!lo%ee em!o,erment is a strateg% an" !hiloso!h% that ena)les em!lo%ees to ma4e "eisions
a)out their 7o)s. :m!lo%ee em!o,erment hel!s em!lo%ees o,n their ,or4 an" ta4e
!%
res!onsi)ilit% +or their results. :m!lo%ee em!o,erment hel!s em!lo%ees ser&e ustomers at the
le&el o+ the organi5ation ,here the ustomer inter+ae e*ists.
35$5%53) Pa4 Sa,is0a(,i*n
0egree to ,hih the atual !a% o+ an em!lo%ee mathes ,hat he or she thin4s to "eser&e. High
!a% e1uit% means high em!lo%ee satis+ation ,ith his or her 7o), lo, !a% e1uit% inreases the
!otential +or a)senteeism, grie&anes, stri4es, an" turno&er.
35$5$) D&-&n2&n, #a'ia3/&:
'he +ous o+ researh is on the !er+ormane o+ em!lo%ees2 there+ore the "e!en"ent &aria)le in
this stu"% is
E1-/*4&& P&'0*'1an(&
As "isusse" earlier, em!lo%ee !er+ormane is a++ete" )% man% other &aria)les )ut in or"er
limit the so!e o+ researh "ue to limitations2 onl% three &aria)les ha&e )een a""e" +or the stu"%.
35$5$5%) E1-/*4&& P&'0*'1an(&
'he 7o) relate" ati&ities e*!ete" o+ a ,or4er an" ho, ,ell those ati&ities ,ere e*eute".
Man% )usiness !ersonnel "iretors assess the em!lo%ee !er+ormane o+ eah sta++ mem)er on an
annual or 1uarterl% )asis in or"er to hel! them i"enti+% suggeste" areas +or im!ro&ement.
353) R&s&a'() T)&*'&,i(a/ D&si9n

(In2&-&n2&n, #a'ia3/&s) (D&-&n2&n, #a'ia3/&)
!&
Organizational
Culture
Employee
Empowerment
Pay Satisfaction
Gmployee
5erformance
R&s&a'() !u&s,i*ns
0oes organi5ational ulture !la% a role in enhaning the em!lo%ee !er+ormaneR
0oes em!o,erment o+ em!lo%ees lea" to enhane" !er+ormaneR
'o ,hat e*tent "oes !a% satis+ation im!ats the em!lo%ee !er+ormaneR
35;) H4-*,)&sis D&.&/*-1&n,
Base" on the researh 1uestions, researh o)7eti&es an" the theoretial +rame ,or4, the
+ollo,ing h%!otheses are "e&ise" to )e teste" using statistial anal%sis.
H%*: 6a% .atis+ation "oes not ha&e a signi+iant im!at on em!lo%ee !er+ormane
H%: 6a% .atis+ation has a signi+iant im!at on em!lo%ee !er+ormane
H$*: :m!lo%ee :m!o,erment "oes not ha&e a signi+iant im!at on em!lo%ee !er+ormane.
H$: :m!lo%ee :m!o,erment has a signi+iant im!at on em!lo%ee !er+ormane.
H3*: 6ositi&e ;rgani5ational /ulture "oes not ha&e a signi+iant im!at on em!lo%ee
!er+ormane.
H3: 6ositi&e ;rgani5ational /ulture has a signi+iant im!at on em!lo%ee !er+ormane.
35<) R&s&a'() D&si9n
'he "esri!ti&e metho" o+ researh ,as use" +or this stu"%. 'o "e+ine the "esri!ti&e t%!e o+
researh, /res,ell ($99?) state" that the "esri!ti&e metho" o+ researh is to gather in+ormation
a)out the !resent e*isting on"ition. 'he em!hasis is on "esri)ing rather than on 7u"ging or
inter!reting. 'he aim o+ "esri!ti&e researh is to &eri+% +ormulate" h%!otheses that re+er to the
!resent situation in or"er to elui"ate it. 'he "esri!ti&e a!!roah is 1ui4 an" !ratial in terms
o+ the +inanial as!et. Moreo&er, this metho" allo,s a +le*i)le a!!roah, thus, ,hen im!ortant
ne, issues an" 1uestions arise "uring the "uration o+ the stu"%, +urther in&estigation ma% )e
on"ute".
0esri!ti&e researh on the other han" is a t%!e o+ researh that is mainl% onerne" ,ith
"esri)ing the nature or on"ition an" the "egree in "etail o+ the !resent situation. 'his metho"
is use" to "esri)e the nature o+ a situation, as it e*ists at the time o+ the stu"% an" to e*!lore the
!'
ause-s o+ !artiular a !henomenon. 'he aim o+ "esri!ti&e researh is to o)tain an aurate
!ro+ile o+ the !eo!le, e&ents or situations. Gith this researh t%!e, it is essential that the
researher alrea"% has a lear &ie, or !iture o+ the !henomena )eing in&estigate" )e+ore the
"ata olletion !roe"ure is arrie" out. 'he researher use" this 4in" o+ researh to o)tain +irst
han" "ata +rom the res!on"ents so as to +ormulate rational an" soun" onlusions an"
reommen"ations +or the stu"%. 'he "esri!ti&e a!!roah is 1ui4 an" !ratial in terms o+ the
+inanial as!et.
=n this stu"%, the "esri!ti&e researh metho" ,as em!lo%e" to e*!lain =m!at an" role o+
organi5ational ulture, em!lo%ee em!o,erment an" !a% satis+ation on the em!lo%ee
!er+ormane. 'his re1uire" orrelating in"e!en"ent an" "e!en"ent &aria)les. 'he inter!reti&e
an" o relational !art re1uire" statistial testing. 'o alulate the im!at2 alongsi"e orrelation2
regression ,as also a!!lie". Both "esri!ti&e as ,ell as in+erential statistis ha&e )een 7ointl%
a!!lie" to !ro&i"e greater +le*i)ilit%. 'he results are, in an% ase, )ase" on +irst han" "ata +rom
the res!on"ents.
'he "esri!ti&e metho" is a"&antageous +or the researher "ue to its +le*i)ilit%2 this metho" an
use either 1ualitati&e or 1uantitati&e "ata or )oth, gi&ing the researher greater o!tions in
seleting the instrument +or "ata-gathering.
Ghile !rimar% "ata ,ere "eri&e" +rom the ans,ers the !artii!ants ga&e "uring the sur&e%
!roess, seon"ar% "ata ,ere o)taine" +rom !u)lishe" "ouments an" !u)lishe" materials. Gith
the use o+ the sur&e% 1uestionnaire an" !u)lishe" literatures, this stu"% too4 on the 1uantitati&e
a!!roah o+ researh.
Buantitati&e "ata olletion metho"s are entre" on the 1uanti+iation o+ relationshi!s )et,een
&aria)les. Buantitati&e "ata-gathering instruments esta)lish relationshi! )et,een measure"
&aria)les. Ghen these metho"s are use", the researher is usuall% "etahe" +rom the stu"% an"
the +inal out!ut is onte*t +ree. Measurement, numerial "ata an" statistis are the main
su)stane o+ 1uantitati&e instruments. Gith these instruments, an e*!liit "esri!tion o+ "ata
olletion an" anal%sis o+ !roe"ures are neessar%. An a!!roah that is !rimaril% "e"uti&e
reasoning, it !re+ers the least om!liate" e*!lanation an" gi&es a statement o+ statistial
!(
!ro)a)ilit%. 'he 1uantitati&e a!!roah is more on the "etaile" "esri!tion o+ a !henomenon. =t
)asiall% gi&es a generali5ation o+ the gathere" "ata ,ith tentati&e s%nthesi5e" inter!retations.
Buantitati&e a!!roah is use+ul as it hel!s the researher to !re&ent )ias in gathering an"
!resenting researh "ata. Buantitati&e "ata olletion !roe"ures reate e!istemologial
!ostulations that realit% is o)7eti&e an" unitar%, ,hih an onl% )e reali5e" )% means o+
transen"ing in"i&i"ual !ers!eti&e. 'his !henomenon in turn shoul" )e "isusse" or e*!laine"
)% means o+ "ata anal%sis gathere" through o)7eti&e +orms o+ measurement. 'he 1uantitati&e
"ata gathering metho"s are use+ul es!eiall% ,hen a stu"% nee"s to measure the ause an" e++et
relationshi!s e&i"ent )et,een !re-selete" an" "isrete &aria)les. 'he !ur!ose o+ the 1uantitati&e
a!!roah is to a&oi" su)7eti&it% )% means o+ olleting an" e*!loring in+ormation ,hih
"esri)es the e*!eriene )eing stu"ie".
Buantitati&e metho"s esta)lish &er% s!ei+i researh !ro)lem an" terms. 'he ontrolle"
o)ser&ations, mass sur&e%s, la)orator% e*!eriments an" other means o+ researh mani!ulation in
1ualitati&e metho" ma4es gathere" "ata more relia)le. =n other ,or"s, su)7eti&it% o+ 7u"gment,
,hih is not nee"e" in a thesis "isussion, an )e a&oi"e" through 1uantitati&e metho"s. 'hus,
onlusions, "isussion an" e*!erimentation in&ol&e" in the !roess are more o)7eti&e.
Aaria)les, )oth "e!en"ent an" in"e!en"ent, that are nee"e" in the stu"% are learl% an" !reisel%
s!ei+ie" in a 1uantitati&e stu"%. =n a""ition, 1uantitati&e metho" ena)les longitu"inal measures
o+ su)se1uent !er+ormane o+ the res!on"ents.
356) Pa',i(i-an,s
=n or"er to "etermine the im!at an" role o+ organi5ational ulture, em!lo%ee em!o,erment an"
!a% satis+ation on the em!lo%ee !er+ormane, a total o+ $30 res!on"ents ,ere as4e" to
!artii!ate. 'o ahie&e !ertinent in+ormation, ertain inlusion riteria ,ere im!ose". 'he
!artii!ants 1uali+ie" +or sam!le seletion must )e em!lo%ees ,or4ing in the 6a4istani Fertili5er
=n"ustr%. 'he res!on"ents ,ere selete" +rom t,o om!anies in 6a4istan, FF/ Q :ngro
/hemials. Both right no, are the to! !er+ormers in the +ertili5er in"ustr% o+ 6a4istan. $00
1uestionnaires ,ere "is!athe" to eah om!an%. 'he 1uestionnaire ,as +ille" )% )oth
management as ,ell as non management ar"er. 'he )len" in res!on"ents ,as to get a !iture o+
!)
the ,i"er !ere!tion o+ all em!lo%ees aross "i++erent le&els o+ management. ;nl% the
1uestionnaire ,hih ,as +ille" om!letel% ,as inlu"e" in the researh. ;ut o+ the $00
1uestionnaires sent to FF/, 82 ,ere usa)le +or "ata anal%sis. 'he res!onse rate ,as 82C. ;ut o+
the $00 1uestionnaires sent to :ngro /hemials onl% 68 ,ere inlu"e"2 sine rest ,ere !artiall%
+ille". 'he res!onse rate +or :ngro /hemials ,as 68C. ;&erall the res!onse rate ,as @3C.
0etails are also gi&en the gra!h share" )elo,N
Response Rate
FF+
Gngro
+hemicals
35?) Sa1-/in9
.im!le ran"om sam!ling ,as "one +or the sam!le seletion. 'his sam!ling metho" is on"ute"
,here eah mem)er o+ a !o!ulation has an e1ual o!!ortunit% to )eome !art o+ the sam!le. As
all mem)ers o+ the !o!ulation ha&e an e1ual hane o+ )eoming a researh !artii!ant, this is
sai" to )e the most e++iient sam!ling !roe"ure.
358) Da,a P'*(&ssin9 an2 Ana/4sis
A+ter gathering all the om!lete" 1uestionnaires +rom the res!on"ents, total res!onses +or eah
item ,ere o)taine" an" ta)ulate". =n or"er to use the Li4ert-sale +or inter!retation, mean &alue
to re!resent eah 1uestion ,as om!ute". 'he mean &alues ,ere later !unhe" into .6.. +or
statistial testing. For this researh, /orrelation Anal%sis an" 8egression Anal%sis has )een
a!!lie" to inter!ret "ata an" to "ra, onlusions +rom it.
"*
CHAPTER ;
DATA ANALYSIS
=n this ha!ter the results o+ the "ata anal%sis are !resente". 'he "ata ,ere ollete" an" then
!roesse" in res!onse to the !ro)lems !ose" in ha!ter $ o+ this "issertation. 'he statistial tools
use" are also "isusse" in the researh metho"olog% setion o+ this "issertation are e*!laine" to
"e&elo! )etter un"erstan"ing.
;5$) C*''&/a,i*n Ana/4sis:
'he orrelation )et,een t,o &aria)les re+lets the "egree to ,hih the &aria)les are relate". 'he
most ommon measure o+ orrelation is the 6earson 6ro"ut Moment /orrelation (alle"
6earson9s orrelation +or short).
Ghen measure" in a !o!ulation the 6earson 6ro"ut Moment orrelation is "esignate" )% the
Eree4 letter rho (S). Ghen om!ute" in a sam!le, it is "esignate" )% the letter OrO an" is
sometimes alle" O6earson9s r.O 6earson9s orrelation re+lets the "egree o+ linear
relationshi! )et,een t,o &aria)les.
;53) R&9'&ssi*n Ana/4sis:
8egression anal%sis is the ne*t ste! u! a+ter orrelation2 it is use" ,hen ,e ,ant to !re"it the
&alue o+ a &aria)le )ase" on the &alue o+ another &aria)le.
=n this ase, the &aria)le ,e are using to !re"it the other &aria)le9s &alue is alle" the
in"e!en"ent &aria)le or sometimes the !re"itor &aria)le.
'he &aria)le ,e are ,ishing to !re"it is alle" the "e!en"ent &aria)le or sometimes the
outome &aria)le.
As "isusse" in the researh metho"olog% ha!ter, .6.. ,as use" +or "ata anal%sis. 6rior to
in!utting "ata into .6.., M. :*el ,as use" to reate a s!rea"sheet in or"er to alulate the
mean sores +or all &aria)les !resent in the mo"el.
"!
Table 4(a)
Correlations
Pay Satisfaction
Employee
Empowerment Org_Culture
Employee
Performance
Pay Satisfaction Pearson
Correlatio
n
1.000 .408
**
.60
**
.!68
**
Sig. "#
taile$%
.000 .000 .000
& 1!0.000 1!0 1!0 1!0
Employee
Empowerment
Pearson
Correlatio
n
.408
**
1.000 .'81
**
.488
**
Sig. "#
taile$%
.000 .000 .000
& 1!0 1!0.000 1!0 1!0
Org_Culture Pearson
Correlatio
n
.60
**
.'81
**
1.000 .806
**
Sig. "#
taile$%
.000 .000 .000
& 1!0 1!0 1!0.000 1!0
Employee Performance Pearson
Correlatio
n
.!68
**
.488
**
.806
**
1.000
Sig. "#
taile$%
.000 .000 .000
& 1!0 1!0 1!0 1!0.000
**Correlation is significant at t(e 0.01 le)el "#taile$%.
'hese num)ers measure the strength an" "iretion o+ the linear relationshi! )et,een the t,o
&aria)les. 'he orrelation oe++iient an range +rom -$ to T$, ,ith -$ in"iating a !er+et
negati&e orrelation, T$ in"iating a !er+et !ositi&e orrelation, an" 0 in"iating no orrelation
at all. A orrelation oe++iient e*!lains the e*tent to ,hih the &alue o+ one &aria)le an )e
""
!re"ite" o&er the &alue o+ the other &aria)le or in this ase &aria)le. Also note that, )%
"e+inition, an% &aria)le orrelate" ,ith itsel+ has a orrelation o+ $. As sho,n in ta)le ?(a), all
orrelation &alues are !ositi&e. 'his means that as one &aria)le inreases in &alue, the seon"
&aria)le also inrease in &alue. .imilarl%, as one &aria)le "ereases in &alue, the seon" &aria)le
also "ereases in &alue. Here the +ollo,ing an )e onlu"e"N
=nrease ,ill 6a% .atis+ation ,ill enhane the em!lo%ees !er+ormane.
:m!o,ering :m!lo%ee ,ill enhane the em!lo%eeIs !er+ormane.
6ositi&e ;rgani5ational /ulture ,ill enhane the em!lo%eeIs !er+ormane.
Also, as sho,n in the ta)le a)o&e2 the &alues sho, a strong orrelation. 6a% satis+ation ,ith
regar"s to em!lo%ee !er+ormane has a &alue o+ .@68, sho,ing a strong orrelation an" is also
highl% signi+iant.
:m!lo%ee :m!o,erment ,ith regar"s to em!lo%ee !er+ormane has a &alue o+ .?88, sho,ing a
mil" orrelation )ut is highl% signi+iant.
;rgani5ational /ulture ,ith regar"s to em!lo%ee !er+ormane has a &alue o+ .806, sho,ing a
strong orrelation an" is also highl% signi+iant.
Si95 ($@,ai/&2) - 'his is the !-&alue assoiate" ,ith the orrelation. 'he +ootnote un"er the
orrelation ta)le e*!lains ,hat the single an" "ou)le asteris4s signi+%.
As sho,n in 'a)le ?(a) /orrelation is signi+iant at the 0.0$ le&el (2-taile") +or 6a% .atis+ation,
:m!lo%ee :m!o,erment Q ;rgani5ational /ulture ,ith regar"s to :m!lo%ee 6er+ormane.
N - 'his is num)er o+ ases that ,ere use" in the orrelation. Beause ,e ha&e no missing "ata
in this "ata set, all orrelations ,ere )ase" on all $@0 ases in the "ata set. Ho,e&er, i+ some
&aria)les ha" missing &alues, the <9s ,oul" )e "i++erent +or the "i++erent orrelations. =n this ase
there are no missing &alues.
"#
R&9'&ssi*n Ana/4sis:
Table 4(b)
Model Summary
*o$el + + S,uare
-$.uste$ +
S,uare
St$. Error of t(e
Estimate
1 .88!
a
.!8! .!8' .4684
a. Pre$ictors/ "Constant%0 Org_Culture0 Employee Empowerment0 Pay
Satisfaction
R - 8 is the s1uare root o+ 8-.1uare" an" is the orrelation )et,een the o)ser&e" an" !re"ite"
&alues o+ "e!en"ent &aria)le. Aalues lose to one re+let a higher !re"ita)ilit% o+ the "e!en"ent
&aria)le, +rom the &aria)les use" in the mo"el. As sho,n in ta)le ?()), the 8 &alue is .88@.
R@S8ua'& - 'his is the !ro!ortion o+ &ariane in the "e!en"ent &aria)le (E1-/*4&&
P&'0*'1an(&) ,hih an )e e*!laine" )% the in"e!en"ent &aria)les (O'9ani7a,i*n
Cu/,u'&A E1-/*4&& E1-*>&'1&n,A an" Pa4 Sa,is0a(,i*n). 'his is an o&erall measure o+ the
strength o+ assoiation an" "oes not re+let the e*tent to ,hih an% !artiular in"e!en"ent
&aria)le is assoiate" ,ith the "e!en"ent &aria)le. As sho,n in ta)le ?()), the 8 .1uare &alue is .
@8@.
A2+us,&2 R@s8ua'& - 'his is an a"7ustment o+ the 8-s1uare" that !enali5es the a""ition o+
e*traneous !re"itors to the mo"el. A"7uste" 8-s1uare" is om!ute" using the +ormula $ - (($ -
8s1)((< - $) -( < - 4 - $)) ,here 4 is the num)er o+ !re"itors. As sho,n in ta)le ?()), the 8
.1uare &alue is .@83.
All &alues are lose to $, in"iating signi+iant im!at on the "e!en"ent &aria)le.
S,25 E''*' *0 ,)& Es,i1a,& - 'his is also re+erre" to as the root mean s1uare" error. =t is the
stan"ar" "e&iation o+ the error term an" the s1uare root o+ the Mean .1uare +or the 8esi"uals in
the A<;AA ta)le ?() as sho,n )elo,N
"$
Table 4(c)
ANOVA
b
*o$el Sum of S,uares 1f *ean S,uare 2 Sig.
1 +egression 1'1.'16 ' 4'.!! 04.''' .000
a
+esi$ual '3.360 166 .14
4otal 166.8!6 165
a. Pre$ictors/ "Constant%0 Org_Culture0 Employee Empowerment0 Pay Satisfaction
6. 1epen$ent 7aria6le/ Employee Performance
R&9'&ssi*nA R&si2ua/A T*,a/ - Loo4ing at the )rea4"o,n o+ &ariane in the outome &aria)le,
these are the ategories ,e ,ill e*amineN 8egression, 8esi"ual, an" 'otal. 'he 'otal &ariane is
!artitione" into the &ariane ,hih an )e e*!laine" )% the in"e!en"ent &aria)les (Mo"el) an"
the &ariane ,hih is not e*!laine" )% the in"e!en"ent &aria)les (:rror).
Su1 *0 S8ua'&s - 'hese are the .um o+ .1uares assoiate" ,ith the three soures o+ &ariane,
'otal, Mo"el an" 8esi"ual. 'he 'otal &ariane is !artitione" into the &ariane ,hih an )e
e*!laine" )% the in"e!en"ent &aria)les (8egression) an" the &ariane ,hih is not e*!laine" )%
the in"e!en"ent &aria)les (8esi"ual).
20 - 'hese are the "egrees o+ +ree"om assoiate" ,ith the soures o+ &ariane. 'he total &ariane
has <-$ "egrees o+ +ree"om. 'he 8egression "egrees o+ +ree"om orres!on" to the num)er o+
oe++iients estimate" minus $. =nlu"ing the intere!t, there are ? oe++iients, so the mo"el has
?-$U3 "egrees o+ +ree"om. 'he :rror "egree o+ +ree"om is the 0F total minus the 0F mo"el,
$69 - 3 U$66.
M&an S8ua'& - 'hese are the Mean .1uares, the .um o+ .1uares "i&i"e" )% their res!eti&e
0F.
an" Si95 - 'his is the F-statisti the !-&alue assoiate" ,ith it. 'he F-statisti is the Mean
.1uare (8egression) "i&i"e" )% the Mean .1uare (8esi"ual)N ?3.@@2-.2$? U 20?.333.

"%
'a)le ?(") ontains the &alues o+ B /oe++iients, as sho,n )elo,N
Table 4(d)
Coefficients
a
*o$el
8nstan$ar$i9e$ Coefficients
Stan$ar$i9e$
Coefficients
t Sig. : St$. Error :eta
1 "Constant% .04 .1!0 .4! .803
Pay Satisfaction .'8' .04' .40! 8.808 .000
Employee Empowerment .13 .0'5 .16 '.16' .00
Org_Culture .304 .043 .31 11.11 .000
a. 1epen$ent 7aria6le/ Employee Performance
B - 'hese are the &alues +or the regression e1uation +or !re"iting the "e!en"ent &aria)le +rom
the in"e!en"ent &aria)le.
Pa4 Sa,is0a(,i*n - 'he oe++iient +or Pa4 Sa,is0a(,i*n is .383. .o +or e&er% unit inrease
in Pa4 Sa,is0a(,i*n, a 0.383 unit inrease in E1-/*4&& P&'0*'1an(& is !re"ite", hol"ing all
other &aria)les onstant.
E1-/*4&& E1-*>&'1&n, - For e&er% unit inrease in E1-/*4&& E1-*>&'1&n,, ,e e*!et a .
$23 unit inrease in the E1-/*4&& P&'0*'1an(& sore, hol"ing all other &aria)les onstant.
O'9ani7a,i*na/ Cu/,u'&- 'he oe++iient +or O'9BCu/,u'& is .30?. .o +or e&er% unit inrease
in O'9BCu/,u'&, ,e e*!et an a!!ro*imatel% .30? !oint inrease in the E1-/*4&&
P&'0*'1an(& sore, hol"ing all other &aria)les onstant.
S,25 E''*' - 'hese are the stan"ar" errors assoiate" ,ith the oe++iients.
All three &aria)les 6a% .atis+ation, :m!lo%ee :m!o,erment an" ;rgani5ational /ulture are
highl% signi+iant, an" ha&e .000, .002 an" .000 res!eti&el% as their 6 Aalues.
"&
CHAPTER <
CONCLUSION AND RECOMMENDATIONS
<5%) C*n(/usi*n
'he o)7eti&e o+ )usiness or organi5ation is !ro+ita)ilit%. 'he suess o+ the organi5ation is &er%
muh "e!en"ent u!on the le&el o+ its em!lo%ees9 !er+ormane2 !oor !er+ormane is "etrimental
to the om!an%9s suess. /reating a ,ell-roun"e" a!!roah to managing an" oahing %our
,or4 +ore re1uires the e*!ertise o+ a human resoures lea"er an" the su!!ort o+ %our om!an%9s
e*euti&e lea"ershi!. Ghere its man"ator% to re&ie, !er+ormane o+ the em!lo%ees2 it is also
&er% im!ortant to 4ee! in !iture the +ators that might in+luene the em!lo%ees !er+ormane.
'he +in"ings o+ this stu"% in"iate a signi+iant relationshi! )et,een !ositi&e organi5ational
ulture, !a% satis+ation an" em!lo%ee em!o,erment in !ositi&el% enhaning the o&erall
em!lo%ee !er+ormane. ;n the )asis o+ results o+ the regression anal%sis the +ollo,ing an )e
onlu"e".
Base" on the signi+iane le&el (.000) o+ !a% satis+ation2 H$o ,ill )e re7ete". 'he )eta &alue
is .383. From this it an )e "ra,n that ,hen em!lo%ees are satis+ie" ,ith the om!ensation an"
)ene+its the% are getting, it ,ill !ositi&el% in+luene the em!lo%ees !er+ormane. Hee!ing all
other &aria)les onstant, this ,ill lea" to a 0.383 unit inrease in :m!lo%ee 6er+ormane.
.imilar to !a% satis+ation, em!lo%ee em!o,erment is also a signi+iant &aria)le, )ase" on the
signi+iane le&el (.002)2 ,e ,ill re7et H2o, im!l%ing that em!lo%ee em!o,erment has a
signi+iant im!at on em!lo%ee !er+ormane.
Although, )oth !a% satis+ation as ,ell as em!lo%ee em!o,erment are signi+iant )ut the% ha&e
relati&el% lo,er )eta oe++iient &alues (.383) an" (.$23) res!eti&el%. ;rgani5ation ulture is not
onl% signi+iant )ut also has a high )eta oe++iient &alue. Base" on its signi+iane le&el (.000),
H3o is re7ete"2 im!l%ing the +at that !ositi&e organi5ational ulture has a signi+iant im!at on
the em!lo%ee !er+ormane. <ot onl% this )ut also that !ositi&e ulture ,ill +oster em!lo%ee
!er+ormane. Gith a )eta oe++iient &alue o+ .30? it an )e sai" that +or e&er% unit inrease
"'
ma4ing the organi5ation more !ositi&e, ,e e*!et an a!!ro*imatel% .30? !oint inrease in the
em!lo%ee !er+ormane
'his stu"% has some im!ortant im!liations +or management o+ +irms ,or4ing in +ertili5er
in"ustr%. 'his stu"% an also hel! researhers to )etter un"erstan" the relationshi! )et,een
organi5ational ulture, !a% satis+ation an" em!lo%ee em!o,erment ,ith em!lo%ee
!er+ormane.
H4-*,)&sis Su11a'4
H%: CPa4 Sa,is0a(,i*n )as a si9ni0i(an, i1-a(, *n &1-/*4&& -&'0*'1an(&C (A((&-,&2)
H$: $E1-/*4&& E1-*>&'1&n, )as a si9ni0i(an, i1-a(, *n &1-/*4&& -&'0*'1an(&C
(A((&-,&2)
H3: CP*si,i.& O'9ani7a,i*na/ Cu/,u'& )as a si9ni0i(an, i1-a(, *n &1-/*4&& -&'0*'1an(&C
(A((&-,&2)
<5$) R&(*11&n2a,i*n
*s,&'in9 ,)& P*si,i.& O'9ani7a,i*na/ Cu/,u'&
:&er% organi5ation has a ulture. .ome are more !ositi&e than others. =n or"er to get onstant
in!ut on em!lo%eesI !ere!tion o+ the !re&ailing organi5ational ulture u!!er management
shoul" on&ene regular meetings to "isuss an" gather +ee")a4 +rom the em!lo%ees. B% "oing
so, managers enourage a olleti&e res!onsi)ilit% +or the ,ell-)eing o+ the om!an%. 'he
organi5ation ulture is onsi"ere" !ositi&e i+ it has the +ollo,ing elements in itN
More in&ol&ement in "eisions that a++et the em!lo%ees.
A +eeling o+ sa+et%Fmore o!enness an" trust.
Better ommuniation an" more in+ormation.
"(
Better team,or4 an" more oo!eration.
More +ous on getting ,or4 "one an" less on !olitis.
/learer tas4s, res!onsi)ilities, an" )oun"aries, so there is no am)iguit% in the
!roesses.
I1-'*.in9 -&'0*'1an(& 34 in('&asin9 Pa4 Sa,is0a(,i*n
'he +ollo,ing +our ste!s shoul" )e onsi"ere" ,hile "esigning om!ensation an" )ene+it
strategies o+ the +irms.
S,&- %: Ins,i,u,& a S,an2a'2 P'*(&ss
=nstitute a stan"ar" !roess +or e&aluating !a% rates, a"7ustments (ost o+ li&ing, mar4et, an"
merit), an" inenti&e-!a% +or !er+ormane !raties on an annual or )i-annual )asis. 'his an )e
"one )% using om!ensation sur&e%s an"-or 7o) e&aluation to e&aluate !a% rates. Ghate&er the
metho" use", itIs reommen"e" that %ou )e onsistent an" use the same metho" eah %ear.
S,&- $5 Ana/47& H*> Pa4 Ra,&s Di00&'
Anal%5e ho, !a% rates "i++er J es!eiall% among in"i&i"uals in the same 7o)s. =+ !a% rates are
"i++ering )% &ali" +ators suh as !er+ormane, e"uation, s4ills-om!etenies, an"-or other 7o)-
relate" &aria)les, this is ae!ta)le. =+ the% are not &ar%ing )% &ali" +ators (rae, gen"er, an"
other e*traneous &aria)les), this oul" inrease %our lia)ilit% so ta4e ste!s to e1uali5e !a%
rates an" re"ue "i++erentials. :&en i+ %our !oliies !rohi)it "isussion o+ !a% rates, reali5e that
tal4 "oes ha!!en in the ,or4!lae an" em!lo%ees ,ill )e onstantl% om!aring ho, the% are
!ai" relati&e to others. 'he "anger is to ha&e "i++erentials that annot )e aounte" +or )%
!er+ormane an" 7o)-relate" &aria)les.
")
S,&- 35 Us& Ma':&, In0*'1a,i*n Cau,i*us/4
Be autious ,hen using mar4et in+ormation to )ase a"7ustments an" inreases. 8eali5e that i+
%our organi5ation ha" an e*tremel% !ro+ita)le an" suess+ul %ear )ut the mar4et is sho,ing a
lo, a"7ustment )eing gi&en )% other em!lo%ers an" %ou hoose to !ro&i"e a lo, mar4et
a"7ustment, em!lo%ees ma% +eel a "isonnet. =tIs reommen"e" that management must onsi"er
internal organi5ational +ators in a""ition to the mar4et as organi5ations are !er+orming
"i++erentl% in this &aria)le mar4et.
S,&- ;5 D&.&/*- a C*11uni(a,i*n S,'a,&94
0e&elo! a ommuniation strateg% that inlu"es managers. :m!lo%ees nee" to 4no, ho, their
!a% rates are )eing "etermine" at the most )asi le&el (om!aring !a% rates to the mar4et, ,hat
mar4ets %ouIre using, ho, 7o) e&aluation is on"ute", ,hen !a% rates are e&aluate", ho, o+ten,
et.) an" ,hat the organi5ationIs !a% !hiloso!h% is (at mar4et, a)o&e mar4et, et.). Be
trans!arent a)out the !roess, )eause most em!lo%ees ,ill +ill in the )lan4s ,ith their o,n
!ere!tions, i"eas, an" o!inions i+ %ou "onIt ommuniate +ull%.
E1-*>&' &1-/*4&&s ,* in('&as& ,)&i' P&'0*'1an(&
:++eti&e em!o,erment re1uires an o!en "ialogue )et,een the manager an" the em!lo%ee. =t
entails i"enti+%ing all o+ the tas4s an" res!onsi)ilities the em!lo%ee is e*!ete" to !er+orm. ;ne
the +ull e*tent o+ the tas4s are "etermine", the manager an" em!lo%ee "isuss ,hih o+ these
tas4s the% mutuall% agree the em!lo%ee an !er+orm in"e!en"entl%, an" ,hih tas4s re1uire the
in&ol&ement o+ the manager )e+ore ation is ta4en. 'he% "isuss the em!lo%eeIs ,illingness an"
rea"iness to )e hel" aounta)le +or the "eisions he or she ma4es an" the ations one ,ill ta4e
in those areas ,here one has the authorit% to "o so. :m!o,erment lea"s to higher le&els o+
!er+ormane )eause he-she is more ommitte" to the tas4 as the metho"olog% is "esigne" )%
themsel&es.
=a4 *'>a'2
'his stu"% has !ro"ue" se&eral !ro&oati&e an" sur!rising +in"ings. More in-"e!th +uture
researh is nee"e" to e*!lore the un"erl%ing reasons +or the relationshi!s "e!ite" in the "ata.
#*
'his stu"% has its o,n limitations. First, ,e ha&e onl% e*amine" onl% t,o organi5ations. 'he
sur&e% shoul" )e "istri)ute" in more organi5ations. Also, in"i&i"ual anal%sis an )e e*trate" )%
running statistial tests on &arious 4in"s o+ res!on"ents. 'he ategori5ation an )e "one on the
)asis o+ "i++erent soio "emogra!hi elements.
.eon", this stu"% su++ers +rom the ommon limitations inherent in sur&e%-)ase" researh. 'he
stu"% relies on sel+-re!orte" in+ormation o+ the res!on"ent. But o&erall, the stu"% an assist a lot
in +ostering the 6ositi&e ;rgani5ational /ulture, =m!ro&ing !er+ormane )% inreasing 6a%
.atis+ation :m!o,er em!lo%ees to inrease their 6er+ormane ,hih ,ill e&entuall% hel! in
enhaning the em!lo%eesI !er+ormane.
#!
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Abnormal and 2ocial 5sychology, &', $""?$#&.
Blo4, 6. ($98@). 'he em!o,ere" manager. .an FranisoN #osse%-Bass.
Bennis, G. Q <anus, B. ($983) Lea"ersN 'he strategies o+ ta4ing harge. <e, Vor4N Har!er Q
8o,.
Ban"ura, A. ($99@). .el+-e++ia%N 'he e*erise o+ ontrol. <e, Vor4N Freeman.
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on pay level satisfaction. -uman .elations, $', !"%!?!"&(.
/orrigan, M. ($998). :m!lo%ee in&ol&ement, !s%hologial em!o,erment, an" 7o) !er+ormane
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6roBuest 0igital 0issertations <o. AA' 982008$.
/onger, #. Q Hanungo, 8. ($988). 'he em!o,erment !roessN =ntegrating theor% an" !ratie.
Aa"em% o+ Management 8e&ie,, $3, ?@$-?82.
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perceived dimensionality of pay satisfaction. 8ournal of Applied 5sychology,
(!, !*"?!*).
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organi,ational psychology. An M. D. Dunnette /Gd.4, -andbook of Andustrial
and @rgani,ational 5sychology /pp. &#?!#*4. +hicagoE .and?Mc9ally.
0rennan, 0., ($992). Transforming company culture, MEra,-Hill Lon"on.
#"
0eal, '.:. Q Henne"%, A.A., ($982). Corporate cultures, A""ison-Gesle% 8ea"ing, MA.
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6s%holog%, @?, 380-390.
De+onnick, 8. 0., 2tilwell, +. D., 3 0rock, 0. A. /!))&4. A construct validity
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Gducational and 5sychological Measurement, %&, !*"&?!*#&.
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Mc7raw?-ill.
Ero&e, 6.B ($9@$). Ge)ster9s 'hir" <e, =nternational 0itionar% o+ the :nglish Language
Dna)ri"ge" .!ring+iel", MAN EQ/ Merriam.
Ean"5, #. ($990). 'he em!lo%ee em!o,erment era. Business Buarterl%, 33-2, !. @?.
7erhart, 0., 3 Milkovich, 7. =. /!))"4 Gmployee compensationE .esearch and
practice.
An Dunnette, M.D., 3 -ough, 6.M. /Gds.4, -andbook of Andustrial
@rgani,ational 5sychology /"nd ed.4 /Hol. #, pp. $(!?%&)4. 5alo Alto, +AE
+onsulting 5sychologists 5ress.
Harris, L./. an" ;g)onna, :. ($999) M0e&elo!ing a Mar4et ;riente" /ultureN A /ritial
:&aluationI, Journal of Management Studies, in !ress.
Ho,ar", L. Q Foster, .. ($999). 'he in+luene o+ human resoure !raties on em!o,erment
an" em!lo%ee !ere!tions o+ management ommitment to 1ualit%. #ournal o+ Bualit%
Management, $, 3-22.
##
-eneman, -. 7. AAA, 3 8udge, =. A. /"***4. +ompensation attitudes. An 2. 6.
.ynes 3 0.
7erhart /Gds.4 +ompensation in @rgani,ationsE +urrent .esearch and
5ractice, &!?!*#. 2an
Francisco, +AE 8ossey?0ass.
Hi5ilos, 6. ($990). /ra5% a)out em!o,ermentR 'raining, $2, ?@-36.
Ha%e, B. Q #or"an-:&ans, .. (200$). 8etaining 4e% em!lo%ees. 6u)li Management, $, 6-$$.
6awler, G. G. AAA /!)'!4. 5ay and organi,ational effectiveness. 9ew >orkE
Mc7raw?
-ill.
Martin, #. ($992) Cultures in Three Organizations: Three erspecti!es . Lon"onN ;*+or"
Dni&ersit%
6ress.
Miceli, M. 5., 3 6ane, M. +. /!))!4. Antecedents of pay satisfactionE A review
and e:tension. An J. .owland 3 7... Ferris /Gds.4, .esearch in 5ersonnel and
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anal%sis. #ournal o+ 6ersonalit% an" .oial 6s%holog%, 3, ?@2-?86.
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8ournal of Management, "*, $&%?$('.
6eter an" Gaterman, ($982)2 6asale an" Athos, $9862 0eal an" Henne"%, $982.
#$
6eters, '. Q Gaterman #r, 8.H., ($982). "n Search of #$cellence: Lessons from %merica&s 'est(
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Harmon"s,orth, Mi""lese*, DH.
Buinn, 8. Q .!reit5er, E. ($99@). 'he roa" to em!o,ermentN .e&en 1uestions e&er% lea"er
shoul" onsi"er. ;rgani5ational 0%namis, 2, 3@-39.
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2turman, M. +., 3 +arraher, 2. M. /!)))4. Differing conceptuali,ations of pay
satisfaction dimensionalityE A test of a random?effects model. 5aper
presented at the Academy of Management meeting, +hicago, A6.
'homas, H.G. Q Aelthouse, B.A. ($990). /ogniti&e elements o+ em!o,ermentN An Ointer!reti&eO
mo"el o+ intrinsi tas4 moti&ation. Aa"em% o+ Management 8e&ie,, $3-?, !. 666.
Williams, 6.8., 3 Anderson, 2.G. /!))!4. 8ob satisfaction and organi,ational
commitment as predictors of organi,ational citi,enship and in?role behaviors.
8ournal of Management, !', &*!?&!'.
Wren, D. A. /!))$4. =he evolution of management thought. /$th ed.4 9ew
>orkE
Wiley.
Pimmerman, M.A. ($990). 'a4ing aim on em!o,erment researhN ;n the "istintion )et,een
in"i&i"ual an" !s%hologial one!tions. Amerian #ournal o+ /ommunit% 6s%holog%, $8-$,
!.$69.
#%
A--&n2i6@A
D&a' R&s-*n2&n,A
This *uestionnaire has +een designed to gather data which will +e used in research +eing
conducted to *uantify the impact of organizational culture, employee empowerment and pay
satisfaction on the employee performance.
There is no right or wrong answer, please mar, one option in each *uestion which +est
descri+es your response. -ata gathered through this sur!ey will +e ,ept confidential.
Than, you for ta,ing out and helping in conducting this research.
Demographics: Please tick mark on for each question
"&n2&' Male Female
A9& 9'*u-: 20 J 29
30 J 39
?0 J 30
30 J 60
D*3 D&si9na,i*nNWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
In(*1& "'*u- 30,000 J 69,000
@0, 000 J 89,000
90,000 J $00,000
$00,000T
#&
#ote% .or the remaining sections, / oint Li,ert Scale is used. lease encircle One option which
+est descri+ing your response.
S(*'& In,&'-'&,a,i*n
3 .trongl% Agree
? Agree
3 <eutral
2 0isagree
$ .trongl% 0isagree
O'9ani7a,i*na/ Cu/,u'& P'*0i/& I,&1s:
'here is a single ulture throughout the organi5ation. < ; 3 $ %
'here are o!!ortunities +or 6ro+essional gro,th < ; 3 $ %
'he om!an% !a%s high +or goo" !er+ormane < ; 3 $ %
'here is seurit% o+ em!lo%ment in this organi5ation. < ; 3 $ %
'he om!an% has a lear gui"ing !hiloso!h% < ; 3 $ %
Pa4 Sa,is0a(,i*n I,&1s:
= get a"e1uate ta4e home !a% . < ; 3 $ %
= am satis+ie" ,ith the raises = ha&e t%!iall% reei&e" in the !ast. < ; 3 $ %
= am satis+ie" ,ith the om!an%Is !a% struture. < ; 3 $ %
= am satis+ie" ,ith the &alue o+ m% )ene+its. < ; 3 $ %
=n general there is onsisten% in the om!an%Is !a% !oli%. < ; 3 $ %
#'
E1-/*4&& E1-*>&'1&n, I,&1s:
M% 7o) ati&ities are !ersonall% meaning+ul to me. < ; 3 $ %
= am sel+-assure" a)out m% a!a)ilities to !er+orm m% ,or4. < ; 3 $ %
= ha&e signi+iant autonom% in "etermining ho, = "o m% 7o). < ; 3 $ %
= get man% o!!ortunities an" +ree"om in ho, = "o m% 7o). < ; 3 $ %
M% im!at on ,hat ha!!ens in m% "e!artment is large. < ; 3 $ %
E1-/*4&& P&'0*'1an(& I,&1s:
'he )on"s )et,een this organi5ation an" its em!lo%ees is &er% strong. < ; 3 $ %
6eo!le in this )usiness unit &ie, themsel&es a team an" o++er su!!ort to
other others aroun" them.
< ; 3 $ %
=n general, em!lo%ees !ut in e++ort )e%on" their role to attain the
organi5ations o)7eti&es.
< ; 3 $ %
6eo!le in this )usiness unit are genuinel% onerne" a)out the nee"s an"
!ro)lems o+ eah other.
< ; 3 $ %
:m!lo%ees ,or4ing in this organi5ation are highl% ommitte" < ; 3 $ %
#(

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