Article Citation: Sony kumari, and L. N. Bhagat. (2020). MEASUREMENT OF
ORGANIZATIONAL EXCELLENCE IN INDIAN CONTEXT: AN EXPLORATORY STUDY. International
Journal of Engineering Technologies and Management Research, 7(12), 25-32. https://doi.org/10.29121/ijetmr.v7.i12.2020.831 Published Date: 17 December 2020
Keywords: Organizational
Excellence Measurement India Criteria Public Sector Organization Organizational excellence is the most recognized organizational concept of the twenty first century. This study aims at exploring the criteria for measuring organizational excellence in the Indian context. The study is basically based on primary data collected from a sample of 50 executives using structured questionnaire. Judgment sampling technique is used for conducting the survey. The five point response category of Likert type has been employed to examine the responses of respondents. The percentage of respondents responded against each response category has been used to measure the extent of positive, neutral and negative responses. The data sorted out and Cronbach’s alpha computed using Excel-07 and SPSS-20. The response analysis indicated that the organization under study has achieved satisfactory level of organizational excellence at the present time. The results are quite consistent to the saga of the organization. The study emphasizes the need for long-term strategy for achieving the goal of sustained excellence of the organization. Key contribution and limitations also indicated.
1. INTRODUCTIONThe keyword, organizational excellence,
conceptualized only in the twenty first century, represents one of the most
recognized organizational concepts which provides confidence in the
organization’s ability to achieve long-term and sustained success in today’s
ever changing and global business environment through creating new approaches
to their development. The pursuit of achieving organizational excellence can
strengthen the overall prestige of an organization both internally and
externally. Any additional costs to infrastructure and overhead have the
potential to be rapid with greater returns resulting from engaged employees,
satisfied customers and more efficient operations. Some findings from field
research projects revealed a significant impact of organizational excellence on
overall performance [1], human force productivity [2], company culture creating [3] and other such features of organizations. The academic research and debate in the
concept of organizational excellence dates back to Peters and Waterman in 1982 [4] but conceptualised only in the twenty
first century. Continuous excellence evaluations have witnessed frequent
changes in the definition of the term organizational excellence. Thawani [5] has evolved the six – sigma strategy for organizational excellence.
Six sigma links customer requirements and process improvements with financial
results while simultaneously providing the desired speed, accuracy and ability
in today’s e-age. But six-sigma can be used in a highly focused and limited
manner in specific areas of the business or in a wholesale strategic corporate
initiative like General Electrical’s (GE). While conceptualizing the term
organizational excellence Harrington [6] has
viewed that organizational excellence is designed to permanently change the
organization by focusing on managing the five key elements of the organization.
Each of these five organizational elements is not new by itself. The key to
Organizational Excellence is combining and managing them together. We call the
methodology that provides a holistic approach to improving the organization’s
performance, ‘Organizational Excellence’, which is supported by five pillars
that must be managed: Process Management, Project Management, Change Management,
Knowledge Management, Resource Management. For this, we need to manage our
process and continuously improve them for they are the way we obtain major
improvements in our process and today, most organizations are doing a very poor
job of project management as demonstrated by the high failure rate of projects.
We need to manage the organization so that it is prepared for the chaos that it
is being subjected to due to the magnitude and quantity of changes that must be
implemented. We need to change the organization’s knowledge that is the
organization’s most valuable asset. It is the organization’s knowledge that
gives an organization its competitive advantage. We need to manage our
resources and assets for they drive our business results. The word excellence has widely been used by
many organizations to describe some aspect of their activities. Organizational
excellence may be defined as the ongoing efforts to establish an internal
framework of standards and processes intended to engage and motivate employees
to deliver products and services that fulfill customer requirements within
business expectations. It is the achievement by an organization of consistent
superior performance for example, outputs that exceed meeting objectives, needs
or expectations. The European Foundation for Quality
Management (EFQM) says that Excellent Organizations achieve and sustain
superior levels of performance that meet or exceed the expectations of all
their stakeholders. The EFQM has identified a number of ‘Fundamental Concepts’
that it has used to underpin its successful management framework, the EFQM
Excellence Model. These are concepts that organizations aspiring to become
excellent overall need to consider and put in place in ways relevant to them.
The eight concepts are : Achieving balanced results, Adding value for customers,
Loading with vision, Inspiration & integrity, Managing by processes, Succeeding
through people, Nurturing creativity & innovation, Building partnerships, Taking
responsibility for sustainable future. [7] The most recent views on organizational
excellence expressed by experts. For example, Webster [8] says that “Organizational excellence is delivering, and sustaining
the delivery of outstanding value to all key stakeholders”. Experts from
American Society for Quality (ASQ) [9] argue that “Organizational excellence refers to on-going efforts to
establish an internal framework of standards and processes intended to engage
and motivate employees to deliver products and services that fulfill customer
requirements within business expectations”. Bailey [10] wrote: “The excellence is a cultural journey”. The organizational excellence models have
been discussed and developed in more than 90 countries throughout the world. Ladzani [11] has made some interesting comparisons of different versions of
excellence models. Nenadal et al. [12] have examined and listed the basic features of few selected
excellence models, which are widely known and respected, taken from the group
of models which are propounded by institutions and received national or
internal awards and the group of models promoted by individuals, well known
experts in the field. Thus, the studies on organizational
excellence clearly indicated that most of the researchers have taken up the
cases of developed countries and built excellence models. But such studies are
lacking very much in developing countries like India. The present study is an
attempt in this direction and taken up the issue of measuring organization
excellence in the case of Indian public sector organization namely Central
Coalfields Limited (CCL) Ranchi, Jharkhand, one of the subsidiaries of Coal
India Limited, the largest coal producing company in the world. In view of the above, the objective of this study is to identify the criteria for measuring organizational excellence and examine the respondent’s responses towards organizational excellence with respect to the identified criteria. 2. THE DATA AND METHODOLOGYThe study is basically based on the primary
data collected from a sample of 50 respondents i.e. executives (out of 328
executives) using well structured questionnaire. The
judgment sampling technique-one of the non-parametric sampling- was considered
appropriate and used for conducting the survey. Judgment sampling is employed,
when the participants are selected as per the researcher’s convenience,
confidence and experience that they will confirm to certain specific
requirements, criteria/ parameters of the research [13]. The five point response category of Likert
type [14] pertaining to respondent’s responses has been employed with a view
to examine the responses of respondents towards organizational excellence with
respect to the criteria identified previously [15] for measuring organizational excellence. The Likert type data has the benefit of solving the quandrum of measurement and qualification of behavioral and psychological traits. First the five point Likert responses are quantified by allocating numerical value 1 for Strongly Disagree (SD) and 5 for Strongly Agree (SA) with the questions. Then the criteria-wise analysis made on the basis of the percentage of respondents responded against the five point response category of Likert type. The data sorted out and Cronbach’s alpha computed with the help of Excel-07 and SPSS-20. 3. CRITERIA USED FOR MEASURING ORGANIZATIONAL EXCELLENCEThe following criteria have been used for
measuring the level of organizational excellence achieved so far by the
organization. Branding
of Organization: Differential behavior is essential
for organizational excellence. The brands make a difference. Even as the brains
behind brands work hard at creating a brand identity that resonates strongly
with end consumers, they are now challenged to come up with newer way to build
a long term connect and brand stickiness. The best brands are exemplifying day
in, day out, in the process generating a legion of fans that swear by them. In
fact, brand is a set of parameters that gauged their innovativeness,
stylishness, uniqueness, engagement, heritage and trustworthiness. Employee
branding is intended to induce employee-brand in identification and a
psychological connection between the employee and the brand. The strongest
brands in the world own a place in the consumer’s mind, and when they are
mentioned almost everyone thinks of the same things. Creating
the Leaders of Tomorrow: The world has become more
connected with increase in cross cultural transactions. Also, the technology is
involving at a rapid pace. The workforce in India is becoming younger and
participation of women in the workforce is also increasing. Today, leadership
is much more about handling these complexities. The speed of decision making
needs to be accelerated every day. It needs mind-set of learning, embracing
change and adaptability. What is
more important is creating leaders of tomorrow. What is required today is
celebrating achievements of those playing a pivotal role in nurturing
generation next. In fact, succession planning is vital for an organization’s
sustainability. The middle management should be groomed to tackle attrition as
well as this group is arguably the most pressurized management group in the
company. Leaders who can build culture and maintain culture coherence across a
company’s portfolio will create sustainable organizations of the future and
clearly stand out. Hence, the journey to organizational excellence is an inside
job. It begins with a paradigm shift for the leader, however, lasting success
is contingent upon a majority of stakeholders learning to change their mind.
Thus enabling them to actually see, think, feel, act, trust, and be in
profoundly new ways [16]. Creating
Environment for Growth and Business Excellence:
It is truly important that the leaders
should effectively blend the strategy and culture together to ensure growth of
organizations. A tool called ‘culture meter’ may be considered as a growth
driver. The culture meter is an online tool which will cumulatively tell us how
we have to internalize values as an organization and how according to each
leader, it is being driven. The second part of the tool’s design would be to
enable a multi stockholder view, after they feel and see the change and
contribute to the same in the form of continuous feedback. The third part of
the culture meter is involving the customer in the architecture and building process.
This will lead to a fool-proof culture building process along with measurements
and business excellence. This will, of course, be a robust future step
framework which will drive the enterprise forward. Appropriate training and
development programs may also help the company to create environment for growth
and business excellence. Nenadal et al. have noted that
organizational excellence must be seen as an excellent opportunity for long –
term business success [12]. Adoption
of Competency Based Recruitment & Selection Process: For every organization it is important to have a right person on a
right job. Recruitment and selection plays an important role in achieving
organizational excellence. The term ‘core competency’ is believed to have been
introduced in 1990 by the Harvard Business Review to describe a specialized
expertise that can be leveraged as a competitive advantage. Competency – based
human resource practices used competency framework (competencies that
distinguish high performer from average performers in all areas of
organizational activity) as a foundation for recruitment, selection, training
and development. It forms the basis for all human resource functions and series
as the linkage between individual performance and business result. It
emphasizes the cognitive abilities (able to do) and forms a foundation of
efficient well designed and effective recruitment and selection. ‘These
competencies will be the base for every human resource practices such as in
selecting, recruiting, training, career developing, apprising performance and
rewarding the employees. By doing this, organizations can ensure that
competencies at the output level or in other words, performance is more
measurable and easier to be obtained’ [17] Provision
for Inclusive Growth: Inclusive growth has
become a passion for all organizations searching for excellence. The concept of
inclusive growth was first envisaged in India in the eleventh five year plan
document which intended to achieve growth process with broad – based
improvement in the quality of life and equality of opportunities to all. In the
context of business organizations the Kayakalp model
of Governance in used to achieve the goal of inclusive growth. It is based on
transparency, ethics and philanthropy which are aimed at inclusive growth. Green
Technology for Sustainable Future: Environmental
and eco – system restoration should be a conscious effort of any organization.
The organization must be aware to the importance of environmental issues and
should try to restore the environment and nature to its original pristine
condition. Coal sector, in particular, takes it upon itself as a moral
obligation. Green technology ensures the growth with human face and minimizing
the risks in performing the activities by restoring eco – system. Achieving
Superior level of Performance: The European
Foundation for Quality management (EFQM) says that “Excellent organizations
achieve and sustain superior levels of performance that meet or exceed the
expectations of all their stakeholders” [7]. Thus excellence is about sustained performance, it also follows that the organization should be planning to meet stakeholders’ short and long term needs. Success is best achieved when organizations truly value their people and ensure their full involvement. People’s potential is released when there is a culture of shared values, openness, trust and goals with those of their people. It is pertinent to note here that psychological safety makes the workplace more vibrant and innovative. It will have positive impact if and only if employees are allowed to question the leadership without fear of retaliation. In the absence of psychological safety where employees just do not feel assured enough to express themselves, they are reluctant to suggest ideas, share their anxieties or question leadership thinking. People should be able to lend their names to their questions without fear of retaliation. Admitting management slips and omissions is an act of vulnerability that can be role models for psychological safety. The top management must demonstrate this each time. And soon, the culture starts trickling down the guarantee of psychological safety must come right from the top. 4. EMPIRICAL RESULTS AND DISCUSSIONThis section has two parts. First, presentation of descriptive statistics related to the reliability analysis. Second, presentation of the response analysis related to the respondent’s responses towards organizational excellence with respect to the seven identified criteria used for measuring organizational excellence. 4.1. RELIABILITY ANALYSISThis analysis in very important to check the assurance of the study for different respondents. The descriptive statistics along with Cronbach’s alpha are presented in Table-1. Table 1: Descriptive Statistics
Source: Computed form the survey data. Table 1 revealed that the computed value of
Cronbach’s alpha (0.892) is more than the limit of reliability i.e. 0.70 [18]. This means that the organizational excellence scale is acceptable
and it’s reliability is ideal for further analysis. This result also indicated
that all 7 criteria considered for measuring organizational excellence (as
represented by the questions) are valid and suitable to measure the attitude of
employee towards organizational excellence in the organization. 4.2. RESPONSE ANALYSISThe response analysis conducted for each of
the criteria considered for measuring organizational excellence as contained in
different questions and for each of the five categories of response. The
results are presented in Table-2.
Table 2: Respondent’s Responses
Source: Computed from the survey data. Branding
for Excellence: The results presented in Table 2
(Sl. No. 1) revealed that Sixty Six percent respondents have either agreed
(46%) or strongly agreed (20%) with the question “Do you agree that CCL is
branding for excellence?” Rest thirty four percent have expressed their indifferent
attitude (22%) or disagreed (12%). This may be taken to indicate that CCL is
doing well with branding of the organization. Creating
the Leaders of Tomorrow: The results presented in
Table 2 (Sl. No. 2) indicated that seventy two percent of respondents have
either agreed (56%) or strongly agreed (16%) with the question “Do you agree
that CCL is engaged in creating the leaders of tomorrow?”. Only twenty eight
percent respondents have either become neutral (26%) or disagreed (2%). This
might indicate that the senior executives, very honestly, mentor and guide the
junior executives with a view to create the leaders of tomorrow. Creating
Environment for Growth and Business Excellence: The results presented in Table 2 (Sl. No. 3)
shows that seventy six percent respondents have either agreed (62%) or strongly
agreed (14%) that CCL created environment for growth and business excellence by
organizing appropriate training and development programs for the employees
(executives in this case). Rest twenty four percent have expressed their
indifferent attitude by expressing themselves as neutral. This might indicate
that CCL creates environment for growth and business excellence by organizing
appropriate training and development programs. Adoption
of Competency Based Requitment and Selection Process
: Result in Table 2 ( Sl. No. 4) reveled that seventy
four percent respondents have either agreed (60%) or strongly agreed (14%) that
competency based recruitment and selection process is adopted by CCL while
appointing a person. Only twenty six percent of respondents have either become
neutral (20%) or disagreed (6%). This might indicate that CCL is taking all
measures for getting good persons in the company; may be owing to the use of
competency based recruitment and selection process, while appointing. Provision
of Inclusive Growth: Results presented in Table 2 (Sl.
No. 5) indicated that eighty eight percent respondents either agreed (62%) or
strongly agreed (26%) that recent campaign of CCL ‘when sky is the limit the
clouds cannot blur our vision’ aims at inclusive growth. Only twelve percent
respondents have shown their indifferent attitude by expressing their views as
‘neutral’. This may be taken to indicate that CCL is very successfully
achieving the goal of inclusive growth and moving towards excellency. Green
Technology for Sustainable Future: Results in Table
2 (Sl. No. 6) revealed that ninety four percent of respondents have either
agreed (56%) or strongly agreed (38%) that the community development activities
under CSR is to promote green technology for sustainable future. Only six
percent of respondents have preferred to choose their answer as neutral in
reply to their question. Very high positive response of sample respondents
might indicate the seriousness of CCL about sustainable future and doing great
many things to preserve the natural resources for their use by future
generation. Achieving
Superior level of Performance: Results presented in
Table 2 (Sl. No. 7) showed that ninety
percent of respondents have either agreed (30%) or strongly agreed (60%) that
CCL is able to achieve superior level of performance that meets or exceed the
expectations of all their stakeholders. Only quite a few (10%) have shown their
indifferent attitudes. This may be taken to indicate that CCL is able to
achieve superior level of performance that meets or exceed the expectations of
all their stakeholders and fulfils the criterion of organizational excellence. Thus, keeping in view of the responses of
respondents with respect to various criteria of organizational excellence it is
quite clear that CCL has achieved the comfortable status (if not targeted) of
organizational excellence. These responses are quite consistent with the saga
of CCL. The CCL added a chapter of extraordinary success in the glorious
history of the company during the financial year 2007-08. It has achieved a
record production of 44.15 million tones, the highest ever in the history, despite
several constraints. Again, CCL has achieved the ambitious target of 67 million
tones during the financial year 2015-16. The company
has made a spectacular turn-around, a couple of years back and has gone from
step to step by registering record production, productivity, profit and
people’s care i.e. 4Ps. CCL is awarded with the prestigious ‘HR Orientation
Award’ on February 15, 2017 for outstanding contribution in the field of human
resources. The company has also bagged the ‘National Safety Award (mines)’ in
New Delhi on December 16,2019 in recognition of its Lowest Injury Frequency Rate
(LIFR) per million cubic meter output in 2016 at Jarangdih
open cast project in Kathara command area [15, p. 41].
Very recently CCL recorded its highest – ever daily production of 6 lakh tones of coal on march 28,2020 to ensure unhindered power
supply amid the COVID-19 Pandemic; CCL supplies 80% of its mined coal to power
plants of 10 states in India [19]. Response analysis has enabled us to offer an alternative definition of the keyword. “Organizational excellence is a particular stage in the process of continuous improvement which an organization achieves by doing well with branding, creating future leaders & environment for growth & business excellence using competency based recruitment & selection process, techniques of inclusive growth & sustainable future and consequently able to achieve superior level of performance that meets the expectation of all stockholders.” 5.
CONCLUSION
An attempt has been made in this study to measure organizational excellence in the Indian context through validating the sale of organizational excellence based on five point response category of Likert type and examining the responses towards organizational excellence with respect to identified criteria. The reliability result showed that the organizational excellence scale is acceptable and reliable. The response analysis clearly indicated that CCL has achieved satisfactory level of organizational excellence at the present time. This is born out by the facts, revealed by respondent’s responses, that CCL is doing well with branding of organization, creating the future leaders, creating environment for growth and business excellence using competency based recruitment and selection process, promoting green technology for sustainable future and able to achieve superior level of performance that meets the expectation of their stakeholders. This study may be of great help in formulating ambitious long- term strategy for achieving the goal of sustained excellence of the organization. 6. KEY CONTRIBUTION AND LIMITATIONSThis study is an attempt to validate the
Likert scale in measuring organizational excellence in the Indian context and
thus extends the knowledge on organizational excellence in the field of
organizational studies. The alternative definition offered for the term ‘organizational
excellence’ may also be considered as a noble attempt in this direction. This study is based on a sample of only 50 respondents i.e. executives. Greater sample size could have provided more reliable results. The methodology used in measuring organizational excellence is the respondent’s responses towards organizational excellence, which is subject to respondent’s bias. The Likert scores used in response analysis are a direct measure of fairness, wherein the respondents might have experienced a confirmatory bias in attempting seven questions considered in the questionnaire. Further there is much scope to improve the alternative definition offered; the future researchers may provide more robust definition applicable to India. The excellence model applicable to India may also be explored. SOURCES OF FUNDINGThis research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors. CONFLICT OF INTERESTThe author have declared that no competing interests exist. ACKNOWLEDGMENTThis article forms a party of Ph.D. thesis completed by Sony Kumari [15] under the supervision of Dr. M.C. Mehta, Associate Professor, University Department of Commerce and Business Management, Ranchi University Ranchi. The authors, particularly the first author, acknowledges the receipt of academic assistance and guidance throughout the preparation of this article REFERENCES
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