Innovation Influence Organizational Performance at TI Automotive - Research Proposal Example

Abstract Organizational culture is evidently a significant component in the life of an organization. This study will investigate the impact of organizational culture on the performance of organization, through the case of TI Automotive. The study will adopt a descriptive survey design. Data will be collected from 134 employees of the company. Since the study population is small, the study will be conducted through a census method. The study will collect data using secondary and primary data. The primary data will be gathered through the use of questionnaires. The secondary data will be gathered from companies’ manuals, yearly reports and newsletters. The ethical considerations of the study will also be effectively implemented. CHAPTER ONE Error: Reference source not found INTRODUCTION Error: Reference source not found 1.1 Background of the Study 3 1.2 Objectives of the Study 4 CHAPTER TWO 5 LITERATURE REVIEW 5 2.1 The concept of organizational culture and its relationship to performance 5 2.2 The influence of Team Orientation on organizational performance 6 2.3 How Values and Believes influence organizational performance 7 2.4 The infleunce of innovation influence organizational performance Error: Reference source not found 2.5 The influence of adaptability on organizational performance Error: Reference source not found1 CHAPTER THREE Error: Reference source not found RESEARCH METHODOLOGY 13 3.2 Research Design 13 3.3 Target Population 13 3.4 Sample Design and Procedure 14 3.5 Data Collection 15 3.5 Data Analysis 15 4.0 Ethcial conciderations 15 5.0 References 15 INTRODUCTION 1.1 Background of the Study Organizational culture is currently a major issue in the practice of management. This is basically because the cultural dimension is a central aspect in the life of an organization. Even in organizations where the issue of culture receives minimal attention, the manner in which people think, their values and actions influence the performance of the organization (Parker, 2000). In some organizations managers tend to think that organizational culture is too complicated or too soft to bother about. However, in one way or another the significance of managing the culture of an organization arises. Organizational culture is therefore a concept that is unavoidable essentially in the changing business environment. In the determination of the factors that influence the performance of organizations, the concept of organizational culture has not been listed as a key issue. In most cases, researchers tend to focus more on the economic and financial determinates leaving behaving the concept of organizational culture. This study seeks to examine the manner in which organizational culture influences the performance of businesses. The study will be conducted on TI Automotive, one of the leading automotive companies in the UK. Objectives of the Study General Objectives The study intends to investigate the impact of organizational culture on the performance of companies. Specific Objectives The study will be guided by the following specific objectives. i. To examine the concept of organizational culture and its relationship to organizational performance ii. To investigate how team work influences the performance of the organization iii. To establish how the values and believes of the organization influence the performance of the organizations iv. To determine how innovation influences the performance of the organization v. To evaluate impact of adaptability on the performance of the organization? Research Questions The study will aim at answering the following research questions i. To what extent does team work influence the performance of the organization? ii. To what extent does the values and believes of the organization influence the performance of the organizations? iii. How does innovation influence the performance of the organization? iv. To what extent does communication influence the performance of the organization v. How does adaptability impact on the performance of the organization? CHAPTER TWO 2.1 Literature Review 2.1 The Concept of Organizational Culture and Its Relationship to Organizational Performance Organizational culture is an idea which defines the experiences, practices, attitudes, values and beliefs of an organization. It has been defined as the detailed collection of norms and values that are shared by groups and people in an organization. In most cases, the culture of an organizations controls the way people interact with each other’s and with shareholders outside the organization. Cultural variances have an enormous influence on human behaviour and can influence misunderstandings in business contacts, which might become obstacles to the performance of an organization (Wiener, 1998). The culture of an organization can be a major asset when it is correlated with the strategy and thus can be a powerful driving force in influencing the performance of the organization. Nevertheless, a culture can also thwart an organizations objective of gaining a competitive advantage or adapting to changing social and economic environments that all organizations operative in. According to Johnson and Scholes (2002), the cultural procedures can also generate inflexibilities in the performance of the employees and the objective to improve performance. Within the organizational setting, individuals, groups and units are the mechanisms of organizational action. It is the efficiency of their actions that is a major element of successful implementation of organizational objective which can improve performance. O’Donnell and Boyle (2008) disclose that there are six key issues that a manager needs to address to instigate a culture that is performance oriented. The first issues is the implementation of a team oriented culture. The implementation of a climate of change, championing good leadership, employee engagement and tracking cultural change. 2.2 The Influence of Team Orientation on the Performance of the Organization Team orientation is a common practice in most organizations today (O’Donnell and Boyle, 2008). A big underlying question is whether the implementation of team oriented culture can positively impact the performance of an organization. O’Donnell and Boyle, (2008) highlight that the management can inculcate a culture of team work among the workforce which if effectively managed can result to better performance. The rise of management teams in many organizations has played a vital function in the improving the performance of many companies. When managers take an active role in building organizational teams then the teams are bound to attained objectives of the organization. Manzoor et al, (2011) conducted a study to examine the impact of team work on the performance of employees. Various measures or variables of employee performance were examined. This induced; team trust, esprit de corps and rewards and recognition. The methodology of the study involved conducting a survey on higher education institutions. The findings of the study disclosed that there is a positive relationship between the adoption of team work and improvement of employee performance. The study however recommends that further research should be conducted on the matter. Delarue, et al (2008), also undertook a study to examine the impact of team orientation on performance. The study entailed a survey- bases study to examine how implementing team work influenced performance. In certainty, the study focused on empirical research where both performance and team work were measured directly in a quantitative approach. The study begun by examining four interconnected elements of performance efficiency which include financial, operational, attitudinal and behavioral. The findings of the study disclosed that teamwork has a positive correlation with the four performance dimensions. The study further revealed that when teamwork is joined with structural change, it is possible to improving the level of performance. According to Joseph (2015) although much has been stated about the benefits of team work in the organization, there certain significant demerits that can actually hinder or affect effective performance in the organization. Some of the challenges that are manifested in team oriented organizations include unequal participation, longer processes, inherent conflict, communication problems and conflict. A major implication of such challenges is that the team work system will not work effectively in order to meet the desired performance targets. In the long run the implementation of team work cannot be fully associated to improved performance. Instead of teamwork being a component that instigates improved performance, it becomes a hindrance. For instance; a survey conducted by Entrepreneur.com discloses that in some cases, team work can take a lengthier time period in order to attain the set performance targets. Teams have to characteristically go through various processes such as socialization, organization of members, agreeing on decisions and consultations. This adds to additional costs and difficulty in attaining the best decisions that can lead to good performance. How the Values and Beliefs of the Organization Influence the Performance of the Organizations Organizations have a system of shared values and believe that guides the behavior of all members of the organization (Schein, 2010). These shared beliefs and values have a significant impact on the overall performance of the organization, more specifically on the work quality. Values and beliefs of the organization consist of the conduct of the organization as well as various management priorities, styles, and interpersonal behaviors. Together, all these values and believes creates a climate that impacts how well individuals communicate, make decisions and plan within the organization (Schein, 2010). Thus, beliefs and values of the organization are regarded as the organization's culture. Several studies explain the impact of organizations values and norms on the performance of the organization. For instance, Linnenluecke and Griffiths (2010) proved that the relationship between organizational values and performance are strengthened with time. Research by Gregory et al, (2009) indicated that organizational culture directly impacts organizational performance. An organization whose culture is extensively propagated with proper vlaues and norms is much better organizations that do not popularize such a culture. Thus, these studies reveal that believes and values lead to the realization of organization success. Consequently, studies have pointed out that, organizational values and beliefs are a comprehensive elements, which can be shared by all members (Schein, 2010). The values that an organization holds not only impacts on individuals’ behavior, but is also influences the leadership style, working atmosphere and formulation of strategies. Organizational culture impacts the operations of the organization (Linnenluecke and Griffiths, 2010).The impact can be decided by the level of how many key beliefs and values of the organization are widely and deeply accepted. The influence of organizational culture can be divided into three aspects. The first aspect is the cultural direction; this means the correct level of how the organizational values and beliefs impact the operation direction of the organization. The second aspect is the cultural permeability; this refers to the level of how all members share the organizational values and believes of the organization. The final aspect is cultural intensity; this illustrates how much the workers abide with the organization's values and beliefs. Workers have same goal and values. Thus, the workers are likely to be contented with what they do and are devoted to doing more (Linnenluecke and Griffiths, 2010). Gregory et al. (2009) stress the importance of organizational values; he claims that an organization is similar to a human, where the organization makes decisions, it does what it feels is right, it has legal limitations on its operations, creates and implements beliefs and rules, and has legal constraints. It can be seen that the values of the organization are incorporated into the personality of the organization, thus acting as values do in individual lives, directing various behavioral patterns, impacting how the organization view their clients and influencing organizational relationship (Gregory et al., 2009). Thus, an organization value and believes leads to the profound success of the organization. How Innovation Influences the Performance of the Organization Innovations are a significant instrument in the growth of an organization; it helps in increasing organization's market share and making the organization gain a competitive advantage (Walker, 2008). Motivated by growing competition in the world markets, most organizations have begun to realize the importance of innovation, since the rapidly changing technologies erode the value of existing services and products, thus for a company to competitive in the global market, it needs to innovate new products and services. Hence, innovations comprise of indispensable element of corporate techniques for many reasons like applying more fruitful manufacturing technologies, performing better in the marketplace and to obtain positive competitive advantage over their competitors (Walker, 2008). Walker (2008) points out that, innovation has a substantial effect on the performance by generating an improved market position that expresses superior performance and competitive advantage. Several studies focusing on the relationship between innovation and performance of the organization offers a positive appraisal of the relationship. The studies deduce that high level of innovation results to improved corporate performance (Walker, 2008). Miller (2001) claims that most organization use technological innovations to obtain a competitive advantage in the market. Walker (2008) conducted a study on the impacts of product process innovations on the performance of the organization. The study indicated that improvement in products leads to a positive improvement in the organization. A study by Lin and Chen (2007) pointed out that, innovations leads to improved sales in the organization. They argued that organizational innovations seemed to be a more crucial factor for total sales than technological innovations. Marketing innovations improve sales by improving product consumption and offer additional profit to the company. Moreover, empirical studies on British companies indicated that various types of innovations are related to the innovative performance of the organizations (Oke, 2007). Innovative performance is also regarded as one of the vital aspects of improving the overall organizational performance. Innovative performance is a combination of results of administrative and technical innovations which leads to the positive performance of the organization. The organization can effectively deal with environmental challenges by incorporating administrative or technical changes into their organizational structure. Consequently, innovations are undertaken by the organizations to meet marketing and production goals such as reduction in production cost, increasing the quality of products, improving market share, improving production flexibility and creating new markets (Oke, 2007). The Impact of Adaptability on the Performance of the Organization For an organization to realize success in its operations, there needs for adaptability both within the organization and with the external environment. Organization make several innovations and changes which need to be adopted by employees. It is evident that changes within the organization are vital for the employer and employees. When the organization implements changes, the first outcome is the resistance by the employees towards the change. Generally, it is an expectation that when a change is implemented within the organization, it has to face several problems relating to resistance. Leaders may attempt to make employees ready to adapt to the change. Employees’ lack of adaptability of various changes leads to poor performance within the organization (Gurvis and Calarco, 2011). Conrad (2012) points out that adaptability is one of the main priorities in keeping business organizations competitive and alive. Business organizations improve the adaptability of workers through vocational education and motivating employees in different ways. Thus, the employees can implement various changes within the organization. Consequently, the organization needs to adapt to various demand of their customers. It is also necessity for the organization to meet the evolving needs of the customers. Managers should pay close attention to the changing needs and demands of their customers, through this; the organization is capable of winning the trust of more customers thus improving their performance. Adapting to various needs and demands of the customers is central to being competitive in the global market (Conrad, 2012). Gurvis and Calarco, (2011) propose that organizations needs to be adaptive to various technological skills. Technology is constantly evolving. The business organization should adapt to various technological advancement. Through adaptation of various technological advancements, the organization can meet market demands and be diligent in conducting their market research to realize the needs of the customers. The organization can improve its performance by adapting technological advancement in the organization. Such technologies also enable the organization to gain a positive competitive advantage over their competitors (Gurvis and Calarco, 2011). Thus, adaptability is the core for any business organization to improve their performances and realize success in their operations. Theoretical Approach Geert Hofstede in his model argues that culture reflects itself in terms of beliefs, rituals, behaviour, symbols and behaviour. According to Hofstede organization culture can result to attaining the highest productivity level while at the same time it can hinder the achievement of productivity (Hofstede and Hofstede, ,0000). CHAPTER THREE 3.0 Methodology The methodology of the study will follow the following key aspects 3.1 Research Design Research design can be described as a structure, framework or plan that is used to generate answers to research difficulties (Noum, 2007). This research will use the descriptive survey design. Selection of the approach is made based on the fact that it is more accurate and exact since it comprises explanation of proceedings in a cautiously planned approach. Descriptive investigation generates statistical information concerning features of a study that are significant to organizations and policy makers. Descriptive study will be used not only for the objective of explanation but also for the showing the associations between variables during the period of research 3.3 Target Population Target population in statistics is the specific population about which information is desired. A population is a well-defined or set of people, services, elements, and events, group of things or households that are being investigated. The target population for the study will be include employees and management of TI Automotive, one of the leading automotive companies in the UK. Data will be collected from employees in top level, middle level and low level management. This is as presented on the Table 1.0 below. Sections Population (Frequency Top Level Management 13 Middle Level Management 36 Low Level Management 87 Total 134 3.4 Sample Design and Procedure A sample size is a predetermined part of a statistical population whose characteristics are studied to get information about the whole. The major method used when determining on the sample size is the extent to which the sample’s size is representative of the population (Naoum, 2007). Based on the fact that the study sample is small, the study will be conducted through a census method targeting 134 employees in upper level, medium level and low level employees of TI Automotive. 3.4 Data Collection Procedure Self-administered questionnaire will be adopted by the study to collect quantitative data. The researcher will guarantee the respondents that information collected will be for research purpose only and the responses from the respondents will be preserved anonymously. The researcher will get a letter of introduction from the University in order to have the ability to gather data from the company then individually provide the questionnaires to the respondents and have them answered then collection will be done later. The drop and pick later method will be used. 3.5 Analysis of Data After data collection, the complete questionnaires will be edited for comprehensiveness and consistency. Data clean-up will then be conducted. Analysis and description will then be conducted. In order to detect any irregularities in the responses and assign specific numerical values to the responses for additional analysis, data clean up editing, coding and tabulation will be undertaken. The data will then be examined using descriptive statistics. The descriptive statistical tools (SPSS V.17.0 and Excel) will assist the researcher to describe the data. The Likert scale will be used to examine the mean score and standard deviation. The findings of study will be presented using tables and graphs for additional analysis and to enable comparison. This will produce quantitative reports through percentages, tabulations, and measure of central tendency. 4.0 Ethical Considerations The study gathers delicate information about the organization, as a result, the researcher holds an ethical obligation to hold this information with utmost precision. The respondents will be guaranteed confidentiality of information given to make them at ease to answer the questionnaires. The researcher will also explain to the subjects of study the purpose of the research study in a simple language. 5.0 References Conrad, M 2012, Adaptability-the Significance of Variability from Molecule to Ecosystem. Boston, MA, Springer US. Delarue, A, Hootegem, G, Procter, S and Burridge, M 2008, Teamworking and organizational performance: A review of survey-based research, International Journal of Management Reviews Gregory, B.T., Harris, S.G., Armenakis, A.A. and Shook, C.L 2009, Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes, Journal of Business Research, 62(7), pp.673-679. Gurvis, J., & Calarco, A. 2011, Adaptability Responding Effectively to Change, Greensboro, John Wiley & Sons Hofstede, G and Hofstede, J 2010, Cultures and Organizations; Software o the mind, McGraw Hill. . Johnson, G. & Scholes K 2003, Exploring Corporate Strategy, 6th Edition, Prentice Hall. Joseph, C 2015, The Disadvantages of Teamwork in the Workplace, Demand Media Lin, Y., Chen, M 2007, Does innovation lead to performance? Empirical study of SMEs in Taiwan.Management Research News 30 (2), 115-132 Linnenluecke, M.K. and Griffiths, A 2010, Corporate sustainability and organizational culture, Journal of world business, 45(4), pp.357-366. Miller, W, 2001. Innovations for business growth, Research Technology Management, 44 (5), 26-41 Manzoor, R, HafizUllah, K, Hussain, S, Ahmad, Z 2011, Effect of Teamwork on Employee Performance, International Journal of Learning & Development, 1(1). Noum, W.L 2007, Social Research Methods: Qualitative and Quantitative Approaches, Boston: Allyn and Bacon Publishers. O’Donnell, O and Boyle, O, 2008, Understanding and managing organizational change, Institute of Public Administration. Oke, A 2007, Innovation types and innovation management practices in service companies, International Journal of Operations and Production Management, 27 (6), 564-587. Parker, M 2000, Organizational Culture and Identity: Unity and Division at Work, Sage. Schein, E.H 2010, Organizational culture and leadership, John Wiley & Sons. Wiener, Y, 1998, Forms of value systems: a focus on organizational effectiveness and cultural change and maintenance, Academy of Management Review, 13(4), 534-45. Walker, R.M 2008, An empirical evaluation of innovation types and organizational and environmental characteristics: Towards a configuration framework, Journal of Public Administration Research and Theory, 18 (4), 591-615. Read More