ENGRO FERTILIZER

LIMITED
Organizational Culture

20/2/2015
Submitted To:
Professor Yaseen Jamal
Submitted By:
Group 1
1- Sidra Saleem ( 11 )
2- Shereen Salam Ghouri (09 )
3- Samreen Ejaz (04)
4- Rabbia Shakeel ( 19)
5- Syeda Sana Zahra ( 01 )

Program:
MBA (semester 3)

Date:
20-Feb-15

UNIVERSITY OF CENTRAL PUNJAB

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 Contents
Dedication ----------------------------------------------------------------------------- 5
Preface --------------------------------------------------------------------------------- 6
Acknowledgment---------------------------------------------------------------------- 7
Project Objectives -------------------------------------------------------------------- 8

Chapter 1
Introduction to ENGRO Fertilizer------------------------------------------------- 9
From ESSO to EXON---------------------------------------------------------- 9
From EXON to ENGRO------------------------------------------------------- 9
From ENGRO to ENGRO Fertilizer----------------------------------------- 10
A Journey Through Time Line------------------------------------------------ 11
Vision Statement---------------------------------------------------------------- 18
Mission Statement-------------------------------------------------------------- 18
Core Values at ENGRO Fertilizer------------------------------------------- 19
Organizational Hierarchy of ENGRO Fertilizer--------------------------- 22

Chapter 2
Introduction and Overview of Organizational Culture --------------------------- 24
Types of Organizational Culture--------------------------------------------- 25
Key Characteristics of Organizational Culture---------------------------- 26
Levels of Organizational Culture-------------------------------------------- 28
Competing Value Framework------------------------------------------------ 29
Creation of Culture------------------------------------------------------------ 32
How to Keep Culture Alive--------------------------------------------------- 33
How Employee Learn Culture----------------------------------------------- 35

Chapter 3
Analysis of Culture at ENGRO Fertilizer------------------------------------------- 37
Culture Strength---------------------------------------------------------------- 38
How Culture is Kept Alive---------------------------------------------------- 46
How Employee Learn Culture------------------------------------------------ 47

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Chapter 4
Conclusions and Recommendation
Conclusion--------------------------------------------------------------- 48
Recommendation-------------------------------------------------------- 49
References --------------------------------------------------------------- 50

Chapter 5
Attachment
Questionnaire------------------------------------------------------------ 51

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IN THE NAME OF ALLAH THE MOST BENIFICIENT AND
MERCIFUL

DEDICATION

Dedicated to our venerable teachers beloved parents,

Who have always prayed for us,
And encouraged us
At every step in this project
As well as every step that we have taken,
In our life.

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 Preface
Organizational culture is one of the important factors of any organization. The entire
status of the organization depends on its culture. Organization culture can be a strong
enabler or an insurmountable obstacle to implementing change in organizations.
Most Organization change efforts require some degree of culture shift. Yet changing
an organization's culture continues to be a highly challenging and often elusive
endeavor.

Culture by definition provides stability, continuity, and predictability to

organizational life. The culture of any organization, although it can be variously
defined, includes the shared norms and values that guide organizational participant’s
behavior.

For our project we selected ENGRO Fertilizers Limited to study and analyze its
various cultural components. Our analysis was based on observation and results
from the questionnaire that were filled by the employees.

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Acknowledgments
 
 
One of the great pleasures of writing the report is acknowledging the efforts of
many people whose names may not appear on the cover but whose hard work,
cooperation, friendship and understanding were crucial to the production of this
report.
 
We would like to acknowledge the efforts of Prof. Yaseen Jamal, whose continuous
guidance helped us to complete this project report. 
 
Very special thanks to Mr. Asif Sultan Khokar, Zonal Manager Marketing
Department ENGRO Fertilizer Multan, who guided us in this report.
 
 
Sidra Saleem
Samreen Ejaz
Rabbia Shakeel
Shereen Salam Ghouri
Sana Zahra
DATE: 20.2.2015

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Project Objectives
Every project is done with certain objectives kept in mind. Our study on
Organizational Culture ENGRO Fertilizers Limited was:

To study the organizational culture at ENGRO Fertilizer Limited.

To study the satisfaction of employees with the culture.

Impact of organization culture on performance.

Impact of organizational culture on employees.

Impact of organizational and employee satisfaction.

Flaws in existing culture if any.

Recommendation for change if required.

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 Chapter 1
Introduction to ENGRO Fertilizer Limited

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ENGRO FERTILIZER LIMITED

History of ENGRO Fertilizer Limited:

From ESSO to EXON:

In 1957, Pak Stanvac- an ESSO/Mobile joint venture- stumbled upon vast deposit rich
in natural gas at Mari while pursuing viable oil exploitation in Sindh. With Pak
Stanvac focused exclusively on oil exploration, the discovery shifted the impetus to
ESSO which decided to invest on the massive industrial potential of Mari gas field.
ESSO proposed establishment of a giant urea plant in dharki, about ten miles from the
Mari fields, which could use natural gas produced as its primary raw material to turn
out urea fertilizer.
In 1964 an agreement was signed allowing ESSO to setup a urea plant with an annual
capacity of 173000 tons. ESSO brought in state-of-the-art design; commercially tried
facilities and a highly distinguished pool of technical expertise to ensure a smooth
start up. Total investment made was US $46 million the signal largest investment in
Pakistan to date then. The plant started production on 4 December 1968- a few months
late and with less than 10% over run on the original budget.
To boost sales a full-fledged marketing organization was established which undertook
agronomic programs to educate farmers of Pakistan. As the nation’s first branded
fertilizer manufacturer, the company helped modernize traditional farming practices
and boost farm yields, directly impacting the quality of life of farmers and their
families and the nation at large. Farmer education programs increased consumption of
fertilizers in Pakistan, paving way for company’s branded urea called “ENGRO” an
acronym for “Energy for Growth”.
In 1978, ESSO became Exxon as a part of an international name change. The
company was, therefore, renamed Exxon Chemical Pakistan Limited.

From EXXON TO ENGRO:

In 1991, Exxon decided to divest its fertilizer business on a global basis. The
employees of Exxon Chemical Pakistan Limited- in partnership with leading
international and local financial institutions- bought out Exxon’s 75% equity. This
was and perhaps still is, the most successful employee buy-out in Pakistan’s corporate
history.

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Exxon was renamed as ENGRO chemical Pakistan limited; the company went from
strength to strength with its consistent financial performance, growth of its core
fertilizer business and diversification into other entrepreneurs. A major plant capacity
upgrade at Daharki coincided with the employee led buy-out in 1991. ENGRO also
relocated fertilizer manufacturing plants from the UK and US to its Daharki plant site-
an international firm. As years followed, ENGRO Chemical Pakistan Limited started
venturing into other sectors as well.

From ENGRO TO ENGRO Fertilizer:

By 2009, ENGRO was fast growing and had already diversified its business portfolio
in as many as seven different industries. The continual expansions and diversifications
in Company’s enterprises necessitated a broad restructuring in ENGRO Chemical
Pakistan Ltd. This subsequently demerged to form new ENGRO subsidiary- ENGRO
fertilizers Limited.
After the necessary legal procedures and approvals the Sindh High Court sanctioned
the demerger on December 9, 2009. The demerger became effective from January 1,
2010. Subsequently, all fertilizer business assets and liabilities have been transferred
to ENGRO Fertilizers Limited against the issue of shares to the parent company
ENGRO Corp.
The company undertook its largest urea expansion project in 2007. The state of the art
plant enVen 3.0, stands tall at 125 meters- dubbed the tallest structure in Pakistan. The
total cost of this expansion is approximately US$1.1 Billion, with the expanded
facility making ENGRO one of the largest urea manufacturers in Pakistan, besides
substantially cutting the cost of urea imports to national exchequer.
In 2013, the company forayed into the capital markets and tapped the financial
markets to raise the necessary capital required to fund development cape on securing
additional gas supplies along with restructuring of the balance sheet to optimize the
capital structure of the company. The IPO was roaring success being oversubscribed
four times in the book building process whilst being oversubscribed for three times at
the time of public issue.

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A journey through time:

1964-ENGRO Fertilizer Limited

Urea plant commissioned in 1954 as the largest foreign investment in the history of
Pakistan, and today it’s known as leader in phosphate fertilizers industry. ENGRO
Fertilizers Limited – a 92% owned subsidiary of ENGRO Corporation – is a premier
fertilizer manufacturing and marketing company having a portfolio of fertilizer
products with significant focus on balanced crop nutrition and increased yield. As one
of the 50 largest fertilizer manufacturers of the world we have close to 5 decades of
operations as a world class with a wide range of fertilizer brands, besides urea, which
include some of the most trusted brand names by Pakistani farmers. These include
brands like ENGRO Zarkhez, Zingro, ENGRO DAP and Envy amongst others.

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1991-ENGRO Polymer & Chemical Limited

ENGRO Polymer & Chemicals Limited – a 56% owned subsidiary of ENGRO – is the
only fully integrated chlor-vinyl chemical complex in Pakistan and also produces
poly-vinyl chloride, caustic soda, sodium hypochlorite, hydrochloric acid and other
chlorine by-products. The business was setup as a state-of-the-art plant in 1991, as a
50:50 joint venture, with Mitsubishi and Asahi Glass with Asahi subsequently
divesting its shareholding in 2006.

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1997-ENGRO VOPAK Terminal Limited

ENGRO Vopak is a joint venture with Royal Vopak of the Netherlands – the world’s
largest bulk liquid chemical handling company. The business is engaged in handling,
storage and degasification of liquid & gaseous chemicals, Liquefied Petroleum Gas
(LPG), petrochemicals and bio-fuels. ENGRO Vopak’s terminal is Pakistan’s first
cryogenic facility that handles 70% of all liquid chemical imports into Pakistan
including Paraxylene (PX), Acetic Acid (AA), Vinyl Chloride Monomer (VCM),
Ethylene Dichloride (EDC), Mono Ethylene Glycol (MEG), Ethylene along with
Phosphoric Acid (PA) imports, which are pumped directly to customer’s facilities.

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2006-ENGRO Powergen Limited

ENGRO Powergen Limited owns and operates ENGRO Powergen Qadirpur Limited,
a 224 megawatt power plant and the group’s first initiative in the power sector of
Pakistan. ENGRO Powergen Qadirpur Limited was listed on the Karachi Stock
Exchange in October 2014 where 25% of the shares were offered. As of now ENGRO
Powergen Qadirpur Limited is 69% owned by ENGRO Corp via ENGRO Powergen
whereas the remainder is owned by the International Finance Corporation (IFC) and
employees.

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2003-ENGRO EXIMP Private Limited:

ENGRO Eximp (Private) Limited is the group’s commodity trading business that
deals primarily in the import and trading of phosphate-based fertilizers for ENGRO
Fertilizers Limited such as DAP, MAP, MOP and SOP, and also imports
micronutrients like Zinc Sulphate, which it supplies as raw materials to ENGRO
Fertilizer’s Zarkhez plant for manufacturing blended fertilizers.

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2005-ENGRO Foods Limited

Established to venture into food business in Pakistan, the company has state of art
processing units in Sukkur and Sahiwal Top Brand; Olpers, Olwell , Tarang ,
Omore’ ,Owsum etc. ENGRO Foods Limited is an 87% owned subsidiary engaged in
the manufacturing, processing and marketing of dairy products, frozen desserts and
fruit drinks. The business owns two milk processing plants in Sukkur and Sahiwal and
operates a dairy farm in Nara, Sindh. In its continued efforts to ‘elevate consumer
delight worldwide’, the business has established several brands that have already
become household names in Pakistan such as Olper’s (UHT milk, low-fat milk,
cream, desi ghee, lassi and flavored drinks), Omoré (frozen desserts), Tarang (tea
whitener) and Dairy Omung (UHT dairy liquid and dessert cream).

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ENGRO Corporation limited provides a long term vision for the company and also
overseeing the performance of the its subsidiaries, it is also responsible for leadership
development, allocation of capital, human resource guiding, CSR activities,
management of talent, control structures, legal & IT support, control structures and
leadership roles in public relations.
ENGRO is working continually towards its vision and has come a long way to
becoming a premier Pakistani company globally.
In the journey of ENGRO for becoming a profitable company and a growth oriented
company, their management structure has played an important role for creating an
accessible and more transparent organization.

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 Vision:
“To be the premier Pakistani enterprise with a global reach,
passionately pursuing value creation for all stakeholders”

Mission:
“Our mission is to create wealth by creating new businesses based on
company and country strength in information technology,
petrochemicals, infrastructure, foods and other agriculture sectors”

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Core values of ENGRO Corporation:

ENGRO is known to have great set of core values which are actually one of the
reasons for its success. It is made sure that every person abides by the set rules. There
are 12 core values of ENGRO Corporation limited.

Ethics and Integrity

Leadership
Quality & Continuous Improvement
Enthusiastic Pursuit of Profit
Community & External Involvement
Candid & Open Communications
Enjoyment & Fun
Innovation
Individual Growth & Development
Teamwork & Partnership
Diversity & International Focus

Safety Health and Environment

Integrity& Ethics:

ENGRO sustain ethical behavior and loyalty in all their activities that show
their care for the achievement of the results. Highest integrity is their best
interest and they maintain the highest standards and professionals.

Health, safety& environment:

ENGRO always ensured the safety of their people, customers, neighbors and
visitors and for this they use their resources and operations smoothly. It is the
belief of ENGRO that their health, safety and environmental responsibilities
have extended beyond their own facilities.

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Quality and continuous improvement:

For the ongoing success of ENGRO the persistent commitment and quality to
the continuous improvement is the most important factor. “Quality in all we
do” is the motto of ENGRO Corporation.

Innovation:

In any field of business, innovation is very important. ENGRO makes sure of

an environment that provides paths towards the creative thinking and make
possible for its people to work who generate ideas as ENGRO happily accept
challenges to its status quo.

Leadership:

People skills are required for inspiring a group or any organization and for it
ENGRO set high goals and surly achieve them. ENGRO have great leaders at
their company that are very energetic, enthusiastic and loyal.
Community and External involvement:
The industrial organizations must be trusty and the trust and confidence can be
earned by different ethical ways. The performance of the ENGRO, its direct
and open communication and the active involvement in the communities
earned that trust and confidence.
Candid and Open communications:
communication must be gracious, open and plain spoken that enables people to
do their jobs effectively. And this type of communication is valued at ENGRO
that contribute to their decision making process.
Enthusiastic pursuit of profit:
The important basis of our career security and personal growth depends on the
distribution of responsibilities to the shareholders of ENGRO for improvement
of the long-term profitability and growth of the ENGRO Corporation.
Enjoyment and Fun:
ENGRO believe that for the creative, healthy and high performing work
environment the satisfaction and excitement and recognition are the important
elements. ENGRO believes that having fun in work is a great experience.

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Teamwork and partnership:
Team is strength of any company and there are high performing teams in
ENGRO and they retain building teams in their organization so that a good
partnership can be build.
Individual Growth and Development:
ENGRO believe in value and dignity of their people and they believe that they
must show respect for each other should create an environment that provides
opportunities to the individuals so they can grow and progress.
Diversity and International focus:
For achieving the business goals and for meeting the customer’s needs we must
make structure and approaches like that way and ENGRO always value the
differences in race, nationality, gender, personality, culture and style of people.

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Hierarchy structure of ENGRO Corporation limited:

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 Chapter 2
Introduction and Overview of
Organizational Culture

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Introduction to Organizational Culture:

The existence and emergence of organizations is not a new phenomenon. But

The Study of organization is relatively of recent origin. Any study on Organization
and its Manifestation should necessarily start with Fayol Taylor and Bernard.
Organizations are made of members who bring in their emotions, egos and complex
personalities.

“Organization culture is the sum of all these personalities, which creates a common
ideology or identity for the organization”.

Some aspects of organization culture get created along the way. While most aspects
are evolved by the founders and leaders of the organization stated in simple terms
organizational culture is the culture that exists in an organization.

In the modern days it is highly necessary to understand organization culture, for

various reasons some of which are purely academic and others for the benefit of
organizations themselves. Culture influences people in good and bad ways.

Culture creates the identity for the organization itself. Vendors and customers,
employees and other external agencies factor in the organizing the culture of these
organizations which effect when they make their business decisions. Organization
culture also helps the company to relate to these external entities.

Apart from the visible signs and symbols organization culture can also be seen in the
value system instilled by the founder members as well as its leaders of the
organization. Senior management is responsible for creating a viable organization
culture that suits the needs of the business and sends a meaningful message to all who
matter to the organization both internal and external.

Hence certain values are enforced by seniors by setting examples and by propagating
with the help of symbolic behaviors. Sometimes organization culture shapes itself
with the entry of new employees. Values and beliefs get redefined and a new form of
organization culture emerges. Many a times, a controlling mechanism is to be in place
so that desired outputs are cultivated and undesirable outputs are weeded out.

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Types of Organizational Culture:

There are different types of organizational cultures just like there are different
personalities of people. As organization culture is affected by the people working in
the organization therefore there are diverse organizational cultures. Some of the
organizational cultures are as follows:
Authoritarian Culture
There is centralization of power with the leader and obedience to orders and
discipline are stressed. Any disobedience is punished severely to set an
example to others. The basic assumption is that the leader always acts in the
interests of the organization.
Participative Culture
Participative culture tends to emerge where most organizational members see
themselves as equals and take part in decision-making.
Mechanistic Culture
The mechanistic culture exhibits the values of bureaucracy. Organizational jobs
are created around narrow specializations and people think of their careers
mainly within these specializations. There is a great deal of departmental
loyalty and inter-departmental animosity. This sort of culture resists change
and innovation.
Organic Culture
In this case, authority hierarchy, departmental boundaries, rules and
regulations, etc. are all frowned up. The main emphasis is on task
accomplishment, team work and free flow of communication. The culture
stresses flexibility, consultation, change and innovation.
Sub-cultures and Dominant culture
Each department of an organization may have its own culture representing a
sub-culture of the system. An organizational culture emerges when there is
integration of all the departments into a unified whole.
Academy Culture
Employees are highly skilled and tend to stay in the organization, while
working their way up the ranks. The organization provides a stable
environment in which employees can develop and exercise their skills.
Examples are universities, hospitals, large corporations, etc.
Baseball Team Culture
Employees are "free agents" who have highly prized skills. They are in high
demand and can rather easily get jobs elsewhere. This type of culture exists in
fast-paced, high-risk organizations, such as investment banking, advertising,
etc.

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 Club Culture
The most important requirement for employees in this culture is to fit into the
group. Usually employees start at the bottom and stay with the organization.
The organization promotes from within and highly values seniority. Examples
are the military, some law firms, etc.
Fortress Culture
Employees don't know if they'll be laid off or not. These organizations often
undergo massive reorganization. There are many opportunities for those with
timely, specialized skills. Examples are savings and loans, large car companies,
etc.

Key Characteristics of Corporate Culture

Innovation and Risk Taking:
The degree to which employees are encouraged to be innovative and take risks.
Attention to Detail:
The degree to which employees are expected exhibit precision, analysis and
attention to detail.

Outcome Orientation:
The degree to which management focuses on results or outcomes rather than on
the techniques and processes used to achieve those outcomes.

People Orientation:
The degree to which management decisions are take into consideration and the
effect of outcomes on people within the organization.

Team Orientation:
The degree to which work activities are organized around teams rather than
individuals.

Aggressiveness:
The degree to which people are aggressive and competitive rather easy going

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 Stability:
The degree to which organizational activities emphasize maintaining the status
quo in contrast to growth.

Levels of organizational culture

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Because it’s pervasive, and also subterranean, Schein suggests there are, in fact, 3
levels on which organizational culture makes its presence felt:

Artifacts:
Form the most observable level of culture, and consist of behavior patterns and
outward manifestations of culture, such as perks provided to executives, dress
codes, the level of technology utilized (and where it is utilized), and the
physical layout of work spaces. Some notable characteristic behaviors may
have considerable longevity – such as rites, ceremonies, organizational myths,
and “shop talk.”

Values:
Values  underlie and, to a large extent, determine behavior, but they are not
directly observable (as behaviors are). There may be a difference between
stated and operating values (the values the organization espouses, and those
that are actually “in use”). Organizational values are frequently expressed
through norms–characteristic attitudes and accepted behaviors that might be
called “the unwritten rules of the road”–and every employee quickly picks
them up.

Fundamental Assumptions:
To really understand culture, we have to get to the deepest level the level
of Fundamental Assumptions. An organization’s underlying assumptions
grow out of values, until they become taken for granted and drop out of
awareness.

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The Competing Values Framework

The Competing Values Framework for cultural assessment was distilled by Quinn
and Rorbaugh (1983) from analysis of Campbell's longer list of effectiveness
dimensions into a two dimensional pattern.
Cultural dimensions

Horizontal: In/Out
The horizontal dimension maps the degree to which the organization focuses
inwards or outwards. To the left, attention is primarily inwards, within the
organization, whilst to the right, it is outwards, towards customers, suppliers and the
external environment.
An internal focus is valid in environments where competition or customer focus is
not the most important thing, but in competitive climates or where external
stakeholders hold sway, then this challenge must be met directly.
Vertical: Stability/Flexibility
The vertical axis determine who makes decisions. At the lower end, control is with
management, whilst at the upper end, it is devolved to employees who have been
empowered to decide for themselves.
Stability is a valid form when the business is stable and reliability and efficiency is
paramount, but when environmental forces create a need for change, then flexibility
becomes more important.

The Competing Values map

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The four hierarchies are to some extent historical in their development and are
presented in this order below.

Hierarchy
“The hierarchy has a traditional approach to structure and control that flows from a
strict chain of command as in Max Weber's original view of bureaucracy”.
For many years, this was considered the only effective way of organizing and is still
a basic element of the vast majority of organizations.
Hierarchies have respect for position and power. They often have well-defined
policies, processes and procedures.
Hierarchical leaders are typically coordinators and organizers who keep a close eye
on what is happening.

Market

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“The Market organization also seeks control but does so by looking outward, and in
particular taking note of transaction cost”.
Market organization is not one which is focused just on marketing, but one where
all transactions, internal and external are viewed in market terms. Transactions are
exchanges of value. In an efficient market organization, value flows between people
and stakeholders with minimal cost and delay.
Market cultures are outward looking, are particularly driven by results and are often
very competitive.
Leaders in market cultures are often hard-driving competitors who seek always to
deliver the goods.

Clan
“The Clan organization has less focus on structure and control and a greater concern
for flexibility”.
Rather than strict rules and procedures, people are driven through vision, shared
goals, outputs and outcomes.
In contrast to Hierarchies, clans often have flat organizations and people and teams
act more autonomously.
It has an inward focus and a sense of family and people work well together, strongly
driven by loyalty to one another and the shared cause. Rules, although not
necessarily documented, do still exist and are often communicated and inculcated
socially.
Clan leaders act in a facilitative, supportive way and may take on a parental role.

Adhocracy
“The Adhocracy has even greater independence and flexibility than the Clan, which
is necessary in a rapidly changing business climate”.
Where market success goes to those with greatest speed and adaptability, the
adhocracy will rapidly form teams to face new challenges. It will use prototyping
and experimenting rather than long, big-bang projects and development.
Leaders in an adhocracy are visionary, innovative entrepreneurs who take calculated
risks to make significant gains.

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Creation of a Culture
The founders of an organization generally tend to have a large impact on establishing
the early culture. The organization’s culture results from the interaction between the
founder(s) biases and assumptions and what the original members of the organization
learn from their own experiences.

1. An organization’s culture comes from what it has done before and the
degree of success it has had. The ultimate source of an organization’s
culture is its founders.

2. The founders of an organization traditionally have a major impact on that

organization’s early culture.
 They had the vision; they are unconstrained by previous customs or
ideologies.
 The small size of new organizations facilitates the founders’
imposition of the vision on all organizational members.

3. Culture creation occurs in three ways:

 First, founders hire and keep only employees who think and feel the
way they do.
 Second, they indoctrinate and socialize these employees to their way
of thinking and feeling.
 The founders’ own behavior acts as a role model that encourages
employees to identify with them and thereby internalize their beliefs,
values, and assumptions.

4. When the organization succeeds, the founders’ entire personality becomes

embedded in the culture of the organization.

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Keeping a Culture Alive
There are practices within the organization that act to maintain it by giving employees
a set of similar experiences. Three forces play a particularly important part in
sustaining a culture: selection practices, the actions of top management, and
socialization methods.

1. Selection
 The explicit goal of the selection process is to identify and hire
individuals who have the knowledge, skills, and abilities to perform the
jobs within the organization successfully.
 The final decision as to who is hired will be significantly influenced by
the decision maker’s judgment of how well the candidates will fit into
the organization. This results in the hiring of people who have values
consistent with those of the organization.
 Additionally, the selection process provides information to applicants
about the organization. Selection, therefore, becomes a two-way street.

Example—applicants for entry-level positions in brand management at Procter

& Gamble (P&G). Each encounter seeks corroborating evidence of the traits
that the firm believes correlate highly with “what counts” for success at P&G.

2. Top management
The actions of top management, what they say and how they behave, establish
norms that filter down through the organization as to:
o Risk-taking.
o How much freedom managers should give their employees.
o What is appropriate dress?
o What actions will pay off in terms of pay raises, promotions, and
other rewards?

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 3. Socialization
New employees are not fully indoctrinated in the organization’s culture. They
are unfamiliar with the organization’s culture and are potentially likely to
disturb the beliefs and customs that are in place.

Socialization

The process through which the employees are proselytized about the customs and
traditions of the organization is known as socialization. It is the process of adaptation
by which new employees are to understand the basic values and norms for becoming
‘accepted’ members of the organization. Socialization is a process made up of three
stages: pre-arrival, encounter, and metamorphosis.

Pre-arrival
“It encompasses all the learning that occurs before a new member
joins”.

Encounter
“The new employee sees what the organization is really like and
confronts the possibility that expectations and reality may diverge”.

Metamorphosis
“The new employee masters the skills required for his/her job,
successfully performs his/her new roles, and makes the adjustments
to his/her work group’s values and norm”.

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 Productivity
Outcom
Socialization Process es
Pre-arrival Encounter Metamorphosis Commitment

Turnover

How Employees Learn Culture

Culture is learnt in organizations through these means:

Stories
Stories typically contain a narrative of events about the organization’s founders, rule
breaking, rags-to-riches successes, reductions in the workforce, relocation of
employees, reactions to past mistakes, and organizational coping. They anchor the
present in the past and provide explanations and legitimacy for current practices:

 For the most part, these stories develop spontaneously.

 Some organizations actually try to manage this element of culture learning

Rituals
Rituals are repetitive sequences of activities that express and reinforce the key values
of the organization, what goals are most important, which people are important, and
which are expendable.

Material Symbols
The material symbols convey to employees who is important, the degree of
egalitarianism desired by top management, and the kinds of behavior that are
appropriate.

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Language
Many organizations and units use language as a way to identify members of a culture
or subculture. By learning this language, members attest to their acceptance of the
culture and help to preserve it.
New employees are frequently overwhelmed with acronyms and jargon that, after six
months on the job, have become fully part of their language.

Culture is transmitted to employees in a number of ways; for example, through stories,

rituals, material symbols and language. The process of developing and sustaining
organizational culture is illustrated by the following figure by Robbins:

Top
management

Philosophy of
Organization
organization’s Selection criteria
culture
founders

Socialization

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 Chapter 3
Analysis of Culture at ENGRO

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An extensive study and on spot survey equipped us the thorough knowledge and grasp
over the concept of organizational structure, its development and revival in the
organization. This prompted us to formulate a comprehensive query statement in
shape of questionnaire and face to face interaction to understand the concept of
organizational structure of ENGRO fertilizer. Here we will analyze some of the
organizational factors of ENGRO Fertilizer.

Culture Strength
So from all the information that we got through questionnaires and interview with the
employees at ENGRO we concluded that ENGRO Fertilizer has a very strong culture
which is well communicated among all the employees and effective steps are taken to
keep it alive. We would now see the results of our questionnaire and interview which
will fortify our conclusion about ENGRO’s Culture Strength.

Competitive Nature of Culture

Through our interview and analysis of answers filled by the employees we got to
know that ENGRO Fertilizers has a quite competitive culture. This also means that
they are goal and outcome oriented.
Competitive culture Count Percentage
Strongly agree 4 20
Agree 14 70
Neutral 2 10
Total 20

80

70

60

50

40 Count
Percentage
30

20

10

0
Strongly agree Agree Neutral Total

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Employee are Proud to Work at ENGRO
Results from our questionnaire also revealed that ENGRO Fertilizer is a great place to
work and employees are very happy and are proud to work in the organization.
Employee are Proud to Count Percentage
Work at ENGRO
Strongly agree 11 55
Agree 8 40
Neutral 1 5
Total 20

60

50

40

30 Count
Percentage
20

10

0
Strongly agree Agree Neutral Total

Clear Communication of Organizational Policies

Employees at ENGRO Fertilizer considerably agree that there is clear communication
of organizational policies. There is no ambiguity about organizational policies.
Clear Communication of Count Percentage
Organizational Policies
Strongly agree 8 40
Agree 12 60
Total 20

20
 70

60

50

40
Count
30 Percentage

20

10

0
Strongly agree Agree Total

Satisfaction of Job
Majority of people agree that they are satisfied with their job. A very low rate i.e 15%
people say that it is a neutral condition.
Satisfaction of job Count Percentage
Strongly agree 2 10
Agree 15 75
Neutral 3 15
Total 20

80

70

60

50

40 Count
Percentage
30

20

10

0
Strongly agree Agree Neutral Total

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Cordial Relationship with Colleagues
60% of people working at ENGRO Fertilizer believe that they have great cordial
relationship with their colleagues.
Cordial relationship with Count Percentage
colleagues
Strongly agree 6 30
Agree 12 60
Neutral 2 10
Total 20

70

60

50

40
Count
30 Percentage

20

10

0
Strongly agree Agree Neutral Total

Appreciation of Work
Through our results we can deduce that ENGRO Fertilizer provides a great work
appreciation system for its employees which we can clearly see because 60% of
employees have said that they receive adequate work appreciation. 25% have also
mentioned that they are highly satisfied with the system of work appreciation at
ENGRO Fertilizer.
Appreciation of work Count Percentage
Strongly agree 5 25
Agree 12 60
Neutral 3 15
Total 20

20
 70

60

50

40
Count
30 Percentage

20

10

0
Strongly agree Agree Neutral Total

Free Flow of Communication

There is a mix of opinion about free flow communication in the organization. 35% of
employees strongly agree that there is free flow of communication. 50% employees
think that there is moderate level of free flow communication. However, only 3%
employees are of the view that free flow of communication is neutral.
Free flow of Count Percentage
communication
Strongly agree 7 35
Agree 10 50
Neutral 3 15
Total 20

60

50

40

30 Count
Percentage
20

10

0
Strongly agree Agree Neutral Total

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Comfortable Work Environment
There is equal proportion of strong and moderate agreement of employees over
environmental condition at work. 45% of employees strongly agree on having
comfortable work environment while 45% employees agree on moderate level of
comfortable work environment.
Comfortable work Count Percentage
environment
Strongly agree 9 45
Agree 9 45
Neutral 2 10
Total 20

50
45
40
35
30
25 Count
Percentage
20
15
10
5
0
Strongly agree Agree Neutral Total

Development of Personal Worth

ENGRO Fertilizer is known for providing opportunities for development of personal
worth and 70% employee agree with it.
Development of personal Count Percentage
worth
Good 14 70
Not good 6 30
Total 20

20
 80

70

60

50

40 Count
Percentage
30

20

10

0
Good Not good Total

Power and Respect of Employees

ENGRO Fertilizer provides a culture of mutual respect and delegation of power to
employees and 95% employees agree with it.
Power and Respect Count Percentage
Good 19 95
Not good 1 5
Total 20

100
90
80
70
60
50 Count
Percentage
40
30
20
10
0
Good Not good Total

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Appreciation and Recognition
ENGRO Fertilizer has strong culture of providing appreciation and recognition to its
employees. It is also evident from the results of our questionnaire as 70% employees
have agreed to it.
Appreciation and Count Percentage
Recognition
Good 14 70
Not good 4 20
Poor 2 10
Total 20

80

70

60

50

40 Count
Percentage
30

20

10

0
Good Not good Poor Total

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Characteristics of ENGRO’s Organizational Culture
From our interview we came to know that ENGRO’s Organizational Culture has these
main features that are:
Competitive
Outcome oriented
People oriented

ENGRO focuses on competing with other organizations but at the same time it
provides a great comfortable and supporting environment for it employees.

How ENGRO Keeps its Culture Alive

As culture is a very important factor in the success of ENGRO Fertilizer so they
always try to adopt ways to keep their valuable culture alive. For this they have
adopted these important ways:

Selection
Human resource department of ENGRO Fertilizers make sure that they hire
people compatible with their environment by conducting various behavioral
tests.

Socialization
After hiring employees there is a socialization session in which new entrants
are allowed to get to know their colleagues as well as observe the visible
features of the organizational culture.

Top Management
Every employee from authorities higher up to the employees at operational
level all are well aware of the organizational culture. Top management makes
sure that they never miss any chance to depict their organizational culture and
set example for their subordinates.

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How Employees at ENGRO Learn Culture
Employees at ENGRO Fertilizer learn culture through these major means

Code of conduct
Employees are provided with a manual of code of conduct which allows them
to mold their behavior according to it in the organizations premises.

Symbol
ENGRO’s symbol motivates the employee which is “Growing with Pride”.

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Conclusion
We started our project with some objectives in mind about organizational culture of
ENGRO Fertilizer and now we will conclude some major points about culture of
ENGRO Fertilizer.
ENGRO Fertilizer has a very strong culture.

ENGRO provides a very friendly environment.

It gives opportunities for improvement and development to every employee.

Every employee confirms with the organizational culture.

People are satisfied with their jobs.

ENGRO adopts proper means to communicate their culture to new entrants.

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Recommendations
Though ENGRO Fertilizer presents a very great and effective organizational culture
still theses we would like to recommend these tip for making it even better.
Some of the employees are not satisfied with their salary packages so they must
invest in this department to retain their human resource.

Training programs must be conducted more often as it will ensure greater

harmony of people with organizational culture.

Employees must be given more on field facilities so as to provide a favorable

working condition.

There must be cross functional trainings so that people can enjoy their work
and increase their knowledge.

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References
Google
Questionnaire
Interview with zonal manager at ENGRO Fertilizer
Multan

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Questionnaire on Organizational culture

Name ----------------------------------
Organization--------------------------
Designation--------------------------
Department-------------------------
Age-----------------------------------

Section 1
Working Condition:
1. Good 2.Not Good 3.Poor

1 Salary 1 2 3
2 Home allowances 1 2 3
3 Other allowances 1 2 3
4 Security of job 1 2 3
5 Promotion 1 2 3
6 Appreciation & Recognition 1 2 3
7 Power & Respect 1 2 3
8 Development of Personal Worth 1 2 3

Section 2
Physical Factors
1)Strongly agree 2)Agree 3)Neutral 4)Disagree 5)Strongly Disagree

1 You feel comfortable with working

Environment 1 2 3 4 5
2 The quality of material provided by the
Organization to perform you job is good 1 2 3 4 5
3 New technologies and methodologies
Introduced in the work 1 2 3 4 5
4 The organization provided appropriate and
adequate training 1 2 3 4 5
5 You talk freely and openly to your
colleagues about issues problems in the 1 2 3 4 5
organization

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 Section 3
Social factor
1)Strongly agree 2)Agree 3)Neutral 4)Disagree 5)Strongly Disagree

1 You receive proper appreciation for

your work 1 2 3 4 5
2 Cordial relationship with your
subordinates 1 2 3 4 5
3 Your attitude towards work become
more positive 1 2 3 4 5
4 The organization is willing to listen
feedback from employees 1 2 3 4 5
5 Your jobs and roles are quite clear
1 2 3 4 5

Section 4
Organizational commitment factors

1)Strongly agree 2)Agree 3)Neutral 4)Disagree 5)Strongly Disagree

1 Intension to leave the job& search

for job alternatives 1 2 3 4 5
2 Employees organization high on
morale, Teamwork & participation
in decision making 1 2 3 4 5
3 Are you satisfied with this job 1 2 3 4 5
4 Education status position are
involved in commitment of decision
making in organization 1 2 3 4 5
5 Organization structure &processes
influence commitment among employee
1 2 3 4 5

Section 5
Culture factor:
1)Strongly agree 2)Agree 3)Neutral 4)Disagree 5)Strongly Disagree

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 1 Your organization culture is competitive 1 2 3 4 5
2 You are proud to work in the organization 1 2 3 4 5
3 The work has become more interesting 1 2 3 4 5
4 You have informed all management policies 1 2 3 4 5
5 You are happy with your leadership abilities 1 2 3 4 5

Any Suggestion:
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