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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>A Business Culture Quantitative Analysis Method</article-title>
      </title-group>
      <contrib-group>
        <aff id="aff0">
          <label>0</label>
          <institution>54/1 Prospect Peremogy</institution>
          ,
          <addr-line>03057, Kyiv</addr-line>
          ,
          <country country="UA">Ukraine</country>
        </aff>
      </contrib-group>
      <fpage>0000</fpage>
      <lpage>0003</lpage>
      <abstract>
        <p>The paper reveals multidimensional nature of enterprises business culture. The results of investigation show that business culture (BC) is a complex phenomenon, which is characterized by many aspects (dimensions). As now there are no uniform objective ways of business culture evaluation, the authors of these have proposed a unique business culture quantitative assessment method for enterprises. This method based on clusters of indicators that grouped according to the business culture components (professional, intellectual, informational, social, legal, technical and technological, communicative). The procedure for calculating each cluster key indicators is based on the principles of Boolean algebra. Obtained values of indicators are used in special calculation formulas proposed by authors. Questionnaire for calculating procedure business culture indicators was made. Options for interpreting the results of indicators calculation according to formulas are presented. An analysis of the business culture of the group of enterprises, based on the proposed quantitative method, was carried out.</p>
      </abstract>
      <kwd-group>
        <kwd>business culture</kwd>
        <kwd>quantitative analysis</kwd>
        <kwd>indicators calculating procedure</kwd>
        <kwd>dimensions</kwd>
        <kwd>assessment</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1 Introduction</title>
      <p>Now, the use of productive equipment, technologies, personnel, financial and
intellectual resources by enterprises does not always have a significant impact on the
results of their activities. However, among others factors, a business culture become the
most significant as a system which consist of rules and values of behavior and order,
that determine the interaction and subordination of team members, management units,
structural units, the creation of new innovative products, production, providing services,
ensuring their own activities, social responsibility relations, financial and economic
relations and key factors of enterprise development. But industrial enterprises are not
defining interrelation between the level of business culture and the level of the
enterprise efficiency, because they haven't strong methodology of the organizations
culture, corporate culture and the business culture of the enterprise forming. The
problem of establishing a business culture as a foundation for improving the efficiency
of the enterprise is extremely important, it ensures its effective operation. This applies
not only to maximizing profits, but also to further strategic development, time savings,
Copyright © 2020 for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
efficient use of resources, etc. At this situation should take into reason not only the
efficiency of use the financial, intellectual and material resources of the enterprise, but
also the level of its business culture.</p>
    </sec>
    <sec id="sec-2">
      <title>2 Business Culture Basic Concept</title>
      <p>The current practice of socio-economic relations, as well as the constant threats of
economic crises generate the need for adequate tools to ensure the functioning of the
participants in the production and distribution relations. Such tools, beside with
technological, financial or labor aspects, should create conditions for the formation of
positive norms of behavior, values, interpersonal communications, which are
components of the subjects of productive-distributive relations business culture. This
toolkit should also cover the systematic, orderly, effective and attributive contexts of
individuals' interactions within the organization. That is why the formation of a
business culture appraisal system with its indicators, calculation methods, economic
and mathematical models and methods of interpreting the results of modeling or current
assessment is important in determining the parameters of the organization-enterprise
activity. Any evaluation system is based on a set of evaluation indicators, which in turn
reflect the key features of the phenomenon under consideration [1; 8].</p>
      <p>Despite the large number of publications on business culture that have emerged in
the last twenty years, the problem of complex definition of its essence is not solved in
all its complexity with numerous interconnections and subtleties. Authors of different
scientific works in this context use different notions: “organization ideology”,
“organization philosophy”, “organizational culture”, “business culture”, “corporate
culture”, “business culture”, etc. [7; 11; 14; 16; 17]. Therefore, considering culture in
the business system requires understanding the essence of the business itself and the
phenomenon of culture. Business relations, conducting commercial transactions occur
between different subjects of market relations have certain rules, norms and attributes.
Thus, the phenomenon of the culture of such actions directly influences the business
results, the achievement of its intermediate and final goals. The implementation of
effective long-term plans for the development of the company is impossible without the
leading role of morality, high life and labor values in its staff.</p>
      <p>Business culture is a part of the intangible economy that defines the interrelations in
the business environment on the labor, corporative, national values and can affect the
success and development of the enterprise. Business culture is an example of how the
development of civilization, scientific and technological progress lead society to the
need for the development of spiritual culture and even to make the demands of a high
culture, ethics, a priority in the work of a clean economy.</p>
      <p>Values and norms in the organization are established in the course of formation of
its business culture. Determination process of these values and norms is based on the
following statements: culture is a system of collective perceptions that must be valid
and reliable; the contextual significance of cultural perceptions can only be fully
realized by people belonging to a particular culture; cultural perceptions can be seen as
contributing to strategic organizational goals; new organizational practices may be
derived from existing culture; the basic paradigm changes very seldom, the process of
such organizational changes occurs in many years [2; 13; 15].</p>
      <p>Business culture in each country is formed on the basis of human values, but has
national characteristics, in particular due to the mentality of the population. An
important component of the mentality is the economic mentality. Its main elements
include economic thinking, economic culture, economic psychology etc. The
determining factors for the formation of economic mentality are the type of economic
system, the level of productive forces development and above all the person (education,
qualification, physical and mental states) [9; 19].</p>
      <p>In business culture distinguish two segments: the value and mental [4; 18]. The value
segment acts as a cultural phenomenon that can be transmitted as a tradition and
determines the ethical side of business relationships. It is the basis of professional
activity and is automatically start due to knowledge, skills, experience. This segment
acts as a stereotype, as habitual official behavior, as concrete and actual values, norms
of practice. The mental segment of business culture is related to situations where the
usual norms and values do not work and it is necessary to start real thinking. The ideal
business culture is not always realized in concrete actions. What it will be like in
practice depends on the real situation, which brings to business relations something
from the general culture, from certain stereotypes. Abstract business culture, its
theoretically constructed values and norms in the minds of business people are based
on generally accepted in the civilized world. They are declared, but internally they are
not always approved and executed, only the external visibility of their acceptance is
created. This raises the problem of matching the ideal model of a civilized entrepreneur
business culture to the values and norms that really determine the actions and activities
of modern entrepreneurs in the field of business.</p>
    </sec>
    <sec id="sec-3">
      <title>3 Business Culture Assessment Procedure</title>
      <p>There are no established methods for quantifying the status or level of business culture
of any subject of public relations. Therefore, firstly you need to decide the parameters
that should be evaluated. As these parameters have the different objects of evaluation,
it is advisable to combine them in certain groups - sets: the set of indicators for
evaluating of the professional component of business culture, set of evaluating its
intellectual component, a plurality of evaluation information, social, regulatory,
technical, technological and communicative component of entity business culture.</p>
      <p>Each is from these sets has its own specific characteristics. Thus, the plurality of
evaluation of the professional component of business culture includes indicators (PRF)*
defining assessment: employee's educational level (prf1 )* , work experience on
specialty or on the profile (prf2 ), the education’s compliance to position (prf3 ), the
training activity of staff (prf4 ), the ability of personnel to organize and plan their own
work (prf5 ), availability of personnel training in a particular functional area (prf6 ), the
ability of personnel to apply their existing knowledge and skills in a particular
functional area activities (prf7 ). The set of indicators of evaluation the parameters of
* Indicator codes were compiled by the author
intellectual component of business culture (ITC) should include assessments of the
ability of employees to analytical thinking (itc1), their ability to use a comprehensive
approach in preparing and making decisions (itc2), learning and self-study (itc3), the
ability to generate new ideas (itc4), confidence in their actions (itc5), the ability to apply
creativity in problem solving (itc6). Indicators set for the evaluation of the information
component (INF) may include data describing the availability of staff to approach
management information (inf1), the ability to develop guidelines and standards for
contractors (inf2), the ability to use the modern information systems (inf3), ability to
handle the information received (inf4), the result-oriented ability to work (inf5), to be
open to new knowledge (inf6). To set performance evaluation of the social component
of business culture (SOC) appropriate to include those that indicate the presence or
percent of personnel the knowledge and the skills of the ethics of business
communication (soc1), the ability to prevent and resolve conflicts (soc2), the ability of
quickly and correctly transfer information (soc3), the leadership abilities (soc4), the
ability to communicate with experts in other areas (soc5), be motivated for career growth
(soc6). The set of indicators for assessing the status of a business culture (LWI)
regulatory component should first and foremost include indicators which show that
employees have the ability to make quick decisions in accordance with the firm's
mandate (lwi1), the ability to work and make decisions independently on the basis of
organizational and regulatory acts of the company (lwi2), the ability of tracking changes
in the legislative and regulatory framework (lwi3), the ability of assessing the results
obtained and identify causal relationships in accordance with applicable laws and
organizations administrative acts of the firm (lwi4), the ability of self-control within the
legal norms of the firm (lwi5), the skills of self-organization in accordance with the
current legislation and organizational and administrative acts of the firm (lwi6). A set of
metrics for evaluating a firm's techno-technological component of business culture
(TECH) may include estimation data on the application of the enterprise
highperformance machine, labor and management processes (tech1) to use the special
management procedures (project-oriented, software-oriented, portfolio management)
(tech2), the presence of a control system and performance reporting processes (tech3),
the presence documented information data on the implementation of industrial
processes and management procedures (tech4), successful management of business
processes activity (tech5). The set of indicators for assessing regarding communicative
component of business culture (COM) includes indicators that indicate of usefulness of
the personnel to the conduct of negotiations (com1), the ability of localizing
interpersonal and group conflicts (com2) the ability to claim the various actions (com3),
the ability to perform reliably their duties and tasks (com4), the understanding and
adherence to company values (com5), sociability(com6), the ability to manage
subordinates (com7 ).</p>
      <p>Currently, there are no commonly accepted methods for determining differentiated
indicators for each component of business culture. At the beginning of research, the
status of business culture of any business entity is appropriate to determine by
establishing the presence or absence of a certain attribute. For these purposes, the
principles of Boolean algebra are well suited. The presence of a certain sign of a
phenomenon is formalized by "1 " and its absence by "0". The indicators are calculated
for each employee of the firm separately and on their basis the average value of the
corresponding assessment indicator is determined. So:</p>
      <p>PRF =
1 L 1 12</p>
      <p> prf i</p>
      <p>L l=1 11 i=1
I TC = L1 l=L1 16 j6=1 itcj
INF = L1 l=L1 16 k6=1 inf k
SOC = 1 L 1 6 socm ,</p>
      <p>L l=1 6 m=1
LWI = L1 l=L1 16 p6=1lwi p
,
,
,
TECH = 1 L 1 5techq</p>
      <p>L l=1 5 q=1
COM = 1 L 1 7comr ,</p>
      <p>
        L l=1 7 r=1
,
,
prfi= 0˅1;
itcj= 0˅1;
infk= 0˅1;
socm= 0˅1;
lwip= 0˅1;
techq= 0˅1;
comr= 0˅1;
0 &lt; PRF &lt; 1
0 &lt; ITC &lt; 1
0 &lt; INF &lt; 1
0 &lt; SOC &lt; 1
0 &lt; LWI &lt; 1
0 &lt; TECH &lt; 1
0 &lt; COM &lt; 1
(
        <xref ref-type="bibr" rid="ref1">1</xref>
        )
(
        <xref ref-type="bibr" rid="ref2">2</xref>
        )
(
        <xref ref-type="bibr" rid="ref3">3</xref>
        )
(
        <xref ref-type="bibr" rid="ref4">4</xref>
        )
(
        <xref ref-type="bibr" rid="ref5">5</xref>
        )
(
        <xref ref-type="bibr" rid="ref6">6</xref>
        )
(
        <xref ref-type="bibr" rid="ref7">7</xref>
        )
L – number of the company’s staff
      </p>
      <p>For the purpose of assessing the current state of business culture at the enterprise, in
the context of individual jobs or employees, analytical tables are formed, where the
corresponding values of binary formalizations by individual indicators are entered.</p>
      <p>When performing the calculations, special attention should be paid to the indicator
prf1 ("Employee's educational level"), since this indicator has 5 grades (basic secondary
education, full secondary education, basic higher education, full higher education,
highly qualified professional) and create by absorbing binary values of different
degrees of education (1 each, if any). For example, if a respondent has a full higher
education, he or she has completed a secondary education (“1”), before which he / she
received a basic higher education (“1”), and he / she was able to receive it only in the
presence of a complete secondary education ("1"), which became possible after the
completion of basic secondary education ("1"). Thus, complementation of positive
values for a respondent with a university degree gives a generalized value of "4".</p>
      <p>The resulting calculated values for individual components of business culture are
transposed into the total value by the enterprise or its structural unit through the
geometric mean as follows:</p>
      <p>BCLn = 7 PRF  ITC  INF  SOC  LWI TECH COM</p>
      <p>The analysis of the status or dynamics of any phenomenon or process is impossible
without the procedure of interpretation of the values of the obtained diagnostic results
and their subsequent evaluation. In the interpretation process of values calculated
indicators of individual businesses components should keep in mind that the basis for
their calculation laid binary logic by which determined the presence or percent of any
certain features that characterize the state of the relevant aspect (component) of
business culture. The best condition of a particular component of the business culture
is characterized by obtaining the maximum value of the calculated indicators for each
of the components. Ideally</p>
      <p>
        PRF = ITC = INF = SOC = LWI = = TECH = COM =1 ,
(
        <xref ref-type="bibr" rid="ref9">9</xref>
        )
      </p>
      <p>The achievement degree the level "1" the calculated value of business culture
individual component show the level of conformity of a particular trait to the accepted
standards. Thus, the higher level of the BCL, the better can be considered the business
culture of the firm. Depending on the degree to which maximum values are reached by
local metrics (PRF, ITC, INF, SOC, LWI, TECH, COM) we can talk about progress and
problems in specific components of the company's business culture. To establish the
reasons for the low levels of business culture individual components it is advisable to
do a horizontal analysis at the level of primary performance indicators (PRFi , ITCj ,
INFk , SOCm , LWIp, TECHq, COMr), defining them in groups, subdivisions or categories
of personnel. The most objective estimates of changes in the level of business structure
by its components can be obtained by establishing the correlation between the level of
these indicators and performance (or efficiency) of the staff of the company.</p>
    </sec>
    <sec id="sec-4">
      <title>4 Company’s Business Culture Measurement Indicators</title>
      <p>According to the aims of using business culture assessment method a questionnaire was
made. In it were formed and grouped indicators that disclose the essence of each
business culture cluster separately. On the base of this questionnaire, primary data was
collected and calculated for a group of 9 enterprises of Ukraine that manufacture plastic
products (set A = {a 1 . , a 2 , a 3 , a 4 , a 5 , a 6 , a 7 , a 8 , a 9 } where a 1 . = “Ukrplastik”
JSC , a 2 = “Planeta Plastik” Ltd, a 3 = “Brovarskiy Zavod Plastmas” JSC, a 4 =
“Zdolbunivskiy zavod plastmasovych viribiv “ISKRA” JSC, a 5 = "Zavod pobutovoi ta
promislovoi chimii” JSC, a 6 = "Plastmodern" JSC, a 7 = "Budplastyk" JSC, a 8 =
”Pidvolochyska fabrika plastmasovych viribiv “ JSC, a 9 = "Vtorpolimermash" JSC ).</p>
      <p>In the course of research on cluster "the business culture professional component"
the geometric average of the enterprise group is equal 0.35. The averages for enterprises
are from 0.30 to 0.41. The results are presented in Table 1.</p>
      <p>According to local indicators which characterize the professional component of
enterprises business culture, the highest levels are “Ukrplastik” (0.41) and “Planeta
plastik” (0.39), with the lowest value of this indicator in “Budplastik” (0, 30). This
indicates that all enterprises the selection of personnel is carried out in accordance with
the requirements of production technological processes, but does not pay attention to
training of personnel ( prf 4 = 0 in all enterprises).</p>
      <p>The intellectual component of business culture characterizes the capability of
enterprise staff to apply their skills and abilities in the use of new technologies, the
ability to implement new organizational and managerial decisions in their work
activities; the skills to model, develop, manufacture and sell new and existing products,
that is show the high professional training of the personnel. It also allows to assess the
potential of the management apparatus and enterprise management system, its
flexibility and adaptability to change.
The research of business culture intellectual cluster parameters allowed to establish that
their geometric average has the value 0.27 and averages for enterprises are on the
borders from 0.22 to 0.33. They are almost uniformly away from the middle. The results
of calculations are presented in Table 2.
The maximum value of the business culture intellectual component index in the selected
group of enterprises have "Ukrplastik" (0.33) and "Zavod pobutovoi ta promislovoi
chimii” (0.32), the minimum “Brovarskiy Zavod Plastmas” and "Vtorpolimermash"
(0.22 for each). The enterprises have a rather low overall level of intellectual
component, which is formed from the insufficient educated staff and low skill workers,
that is the hallmark of missing the personnel policy at enterprises.</p>
      <p>During super active informatization of public relations of enterprise business culture
information component must perform carry on an important role. It defines the
information security of the enterprise, the level of completeness, accuracy and
contradiction of the information necessary for making productive innovative decisions.
The calculation of the evaluation indicators revealed that the average level (0,21) with
the fluctuations within 0,17-0,27 is too low relative to other indicators (the results are
presented in Table 3).
The leader in the characteristic of the state of the information cluster of business culture
of enterprises is "Ukrplastik" (0.27), the lowest position occupied by "Plastmodern"
(0.17) and "Zavod pobutovoi ta promislovoi chimii” (0.19). Low level indicators for
this cluster indicates a lack of reliable and appropriate request information, making it
impossible to use the strategy of constant innovation.</p>
      <p>Equally important in the business culture of the enterprise is the social component.
It describes activities aimed at improving the working conditions of staff, increasing
the motivation of their employees, as to improving their own level of competitiveness
and productivity. The geometric average of this cluster has a level of 0.21 with
deviations within 0.17-0.28 (the results are presented in Table 4).
According to the social component of the business culture of the enterprise the highest
level has “Ukrplastik” (0.28), the lowest “Planeta plastik” (0.17). Enterprises that have
the low levels of business culture in the social cluster on the basis of
organizationaltechnical and socio-psychological levers of influence, which do not correspond to the
modern development of social relations, biological features of human development,
stages of its life cycle.</p>
      <p>Regulatory component of business culture describes the organizational and
functional systems of internal self-government in the company, unfortunately
investigated enterprises have the low rates. So the average overall index is 0.21 in
cluster 8 at values from 0.20 to 0.30 (the results are presented in Table 5).
The indicators of the enterprises business culture regulatory components have their
leaders (“Plastmodern” (0.26) and “Ukrplastik” (0.30)) and outsider
(“Vtorpolimermash” (0.16)). This indicates that enterprises is not provided with the
appropriate guidance materials and tools at the level of the relevant units.</p>
      <p>The techno-technological component of business culture describes the material,
technical and technological state of the organization, availability of reserves and
opportunities for their prompt receipt, flexibility of equipment and technologies, rapid
work of design and technological services. Its performance is determined by the ability
to quickly respond to changes in the environment, technologies, innovations at the
rebuilding and the reorientation of producing capacity and also setting up production
of new products. The geometric average of the total index per enterprise group is 0.32
at absolute average from 0.21 to 0.43 (the results are presented in Table 6).
The highest level of business culture techno-technological component has "Ukrplastik"
(0.43), almost next to it "Planeta Plastik" (0.38). The lowest - "Zavod pobutovoi ta
promislovoi chimii” (0.21). This indicates the low efficiency of the reproduction
processes, namely the imperfection of the mechanisms of internal transfer of
technologies; technical and technological backwardness of production and
management processes; ineffective in depreciation on policies in these businesses.</p>
      <p>Specific indicators of communicative component of the business culture characterize
volumes and directions of information exchange between employees of the enterprise.
In the context of high communication between staff, information is not only transmitted
but also formed, refined, developed and interpreted in the desired result depending on
the quality of communication skills of each employee. The current average values of
the communicative component of the business culture for the selected group of
enterprises are 0.25 with absolute values ranging from 0.21 to 0.32 (the results are
presented in Table 7).
Top business group settings for communicative component of the business culture is
"Ukrplastik" (0.32), "Planeta Plastik" and «Vtorpolimermash" (to 0.28), and the last
rung of the rating takes “Zdolbunivskiy zavod plastmasovych viribiv “ISKRA” (0.21).
The results indicate a low level of communication between employees, departments
and management, which has negatively affects to the activity of enterprises (decreases
productivity, increases the level of downtime), a number of measures need to be taken
to improve communication at the enterprises of the industry.</p>
      <p>According formula 8 was calculated total levels of business culture for each
enterprise of the group (see Fig 1).</p>
      <p>Among that group of enterprises, the top range of business culture total level has
"Ukrplastik" (0.3296), the last stage of the rating takes “Plastmodern” (0.2409). As
maximum value of the calculated indicators for each of the enterprises must be 1,0
(equation 9), we can state that the most part of enterprises has a low level of business
culture (less than 30%).</p>
    </sec>
    <sec id="sec-5">
      <title>5 Conclusion</title>
      <p>Business culture should be considered as an important intangible resource capable of
significantly influencing the efficiency of the enterprise functioning and the formation
of its market value. It regulates many corporate relations between participants of
economic activities and their business activity, as realized in the process of interaction
between a business entity with various objects: people - employees, partners,
customers, public authorities, public opinion, social groups. Therefore, its main
function is to create a sense of integrity of counterparties in the business of internal and
external images of the entity in its relations with partners. In view of this, the formation
of a favorable business culture is one of the main tasks of managing the enterprises
producers of plastic, the solution of which is a mandatory requirement to take into
account industry specificity. As an integral evaluation feature, it characterizes the
internal state of the firm on the basis of values, rules and norms. It describes an
enterprise-specific system of connections, actions, relationships and interactions
between employees and the company as a whole. Therefore, business culture is of great
importance for the enterprise, and further research will allow to form new
methodological approaches for increasing the efficiency of the enterprise.</p>
      <p>That is why the proposed method of quantitative assessment of the enterprises
business culture level in its form and approaches to parameter determination is
fundamentally different from the existing [3; 5; 6; 10; 12] ones, which focuses on
identifying and differentiating the parameters of business culture of enterprises and
allows to establish causal relationships with indicators the level of business culture and
the performance of business entities. It is advisable to carry out deeper probing of the
state and directions of change of business culture of the firm on the basis of the sums
of savings from the use by the personnel of the competencies obtained during the period
of performance of business culture development, as well as changes of the primary
evaluation indicators of business culture in each of its components. Performing such
calculations requires additional differentiated research, which may be the basis for new
research work in the near future.</p>
    </sec>
  </body>
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