An Empirical Study on Organizational Climate

in Neycer India Limited, Vadalur

INTRODUCTION

Organizational climate is nothing but its work environment as perceived by the individuals in the organization. Climate
is the manifested in the observable routines and reward of organization. The routines are the event and practice of an
organization while rewards pertain to what behaviours get acknowledged and supported. Organizational climate is the
process of quantifying culture of an organization. It strongly influences the functions of the staff and job
performance. It’s also called corporate climate.The phrase “organizational climate” refers working in an area or office where many
of the other workers are very organized. Organized people like to work with other organization. It is a set of properties of the
work environment perceived directly or indirectly by the employee that is assumed to be a major force in influencing employee
behavior. Climate and culture are both important aspects of the overall context, environment or situation

.REVIEW OF RELATED LITERATURE

For the purposes of present investigation, definitions by Gerber (2003) and Moran and Volkwein (1992) were integrated.
Organisational climate is defined as the shared perceptions, feelings and attitudes that organisational members have about the
fundamental elements of the organisation, which reflect the established norms, values and attitudes of the organisation‟s
culture and influences individuals‟ behaviour positively or negatively. Organizational climate has been defined as a
perception of the psychologically important aspects of the work environment and is recognized as a potential influence on
employees‟ workplace behavior and job satisfaction (Ashforth, 1985). Climate consists of a set of characteristics that
describe an organization, distinguish it from other organizations, are relatively enduring over time and influence the behavior
of people in it. The individual worker‟s perception of his work environment rather than a consensus view is considered, as different
individuals may perceive the same workplace in different ways (Klien K. J., 2001). Organizational climate is defined as
shared perceptions or prevailing organizational norms for conducting workplace activities (Reichers&schneider,1990). It has been
conceptualized as a cognitively based set of perceptual descriptions that define the psychological climate (Jones, 1984), and
therefore it is possible to measure individual-level perceptions of the organizational climate for updating (Kozlowski&Hults,
1987). So the focus is on employees' perceptions of salient features of the organizational context. Kozlowsk (1988)
recommended that research consider the interaction between individual characteristics and perceived situational features of
the environment when determining whether technical professionals will voluntarily seek to learn new skills.
Perceptions relevant to a specific climate domain such as the innovation climate have motivational implications on congruent
behavioral outcomes (Schneider, 1983). According to Campbellet, (1970)organizational climate is defined as a set of
attributes specific to a particular organization that may be induced from the way that organization deals with its members and its
environment. For the individual members within the organization, climate takes the form of a set of attitudes and
experiences which describe the organization in terms of both static characteristics (such as degree of autonomy) and behavior
outcome. Neelameham(2013) in his study found that the relation between demographic variables and organisational
climate of a cement company, found no significant influence of religion on overall organisational climate. Verghese
Singh&Verma(2010) studied the relation between customer orientation and organizational climate from a sample of 500 employees in
public sector and private sector banks and arrived at a conclusion that organizational climate enhances with customer orientation.
Higher customer orientation is conducive for building a sound organizational climate. Srivastav(2009) investigated
organizational climate by measuring six climate motives on 453 executives in a large Indian public sector industry using
motivational analysis of organizational climate. The findings demonstrate the heterogeneous nature of organizational climate,
and the study helps to provide a better appreciation of differences in employee behavior across the company. Schulte (2006)
conducted a research, which demonstrated that both individual-level climate perceptions and organizational climate are
related to job satisfaction and examined the overall climate in a work unit has significant influence on individual attitudes, after
accounting for individuals’ idiosyncratic perceptions of the climate. Smit, Collins & Clark (2005) suggested that an
organization's climate plays a strategic role in knowledge creation capability. Patterson, Warr & West (2004) predicted that
associations between company climate and productivity would be mediated by average level of job satisfaction by
studying 42 manufacturing companies and interpreted that company productivity was more strongly correlated with those
aspects of climate that had stronger satisfaction loadings. The study with regard to hotel industry of Davidson (2000) for
the influence of demographics on organisational climate found no influence of gender.
STATEMENT OF THE PROBLEM

Human Resource Development becomes crucial for organizational dynamism and performance. A positive climate is essential for
the development and success of any organization. The present trend of privatization and globalization led to the manufacturing
units facing cut throat competition. The survival and success of manufacturing units rest on the better utilization of human
resources at their organizations. The units which provide better organizational climate to their employees achieve a lot compared
to other organizations. The organizational climate influences the organizational productivity and well-being by influencing
organizational processes such as problem solving, decision making, communicating and coordinating, individual process of
learning and levels of motivation.Organisational climate affects every activity in an organization directly or indirectly. The growth
of an organization is directly related to the climate. One of the key factors that may influence on employees' perception is
organisational climate. Organisational climate helps to set the quality of the organization. The present study makes an attempt
to examine the organizational climate prevailing in Neycer India Limited through the organizational climate
dimensions which are more widespread. It has been empirically proved in many Indian and Western organizations that
employee-centered climate and achievement oriented climate ultimately improve performance. In this context, it seems
sensible to undertake an investigation into organizational climate. The valid conclusions based on such an investigation would result in
developing suggestions for bringing about a organizational design, reward system, co- workers relationship, work
environment, organizational commitment, communication and technology are essential for scaling new heights in employee
productivity in Neycer India Limited. Further it encourages thinking among researchers on dimensions to be incorporated
in a study of organizational climate.The management of the manufacturing units concentrates on their organizational
performance with the absence of better organizational climate. Even though, it may produce better results at the short run, the long
run performance may be affected by the poor organizational climate. Till recently, the Human Resource experts have
concentrated only on efficiency of manpower in the various industries, ignoring the continuous appraisal of organizational
climate provided in the Industries. Therefore, it had a negative impact on productivity and profitability of the industries. Hence,
the researcher has made an attempt to have an in depth analysis on these aspects.

Theoritical Causes of Problem

For the success of any organization there should be a good organizational climate. The perceived organizational climate as a
set of properties of the working environment is a mediating variable between organizational system and motivation. Ostroff (1993)
suggests that the effectiveness of an organization depends on the behavior of the people within the organization, and the
organizational context, which they create. An in-depth analysis of organizational climate may help an organization to become
more productive and efficient. Considering the fact that ceramics manufacturing industry is a booming sector and provides
maximum employment opportunities, so it is essential to build conducive organizational climate. Considering all these aspects
the investigator felt the imperative need to study the organizational climate in Neycer India Limited.

OBJECTIVES OF THE STUDY

 To analyse the organizational climate in Neycer India Limited, Vadalur.

 To know the employees’ level of perception towards organizational design, reward system, co- workers relationship,
work environment, direct supervision, organizational communication and technology.

.Initiative of Company to solve the problem

The study is both descriptive and analytical in nature. The study also intends to see the relationship between the perception of the
respondents and selected demographic variables of the respondents namely, Age, Gender, Marital Status
Educational Qualification, Designation. In order to achieve the purpose of the study a survey design is employed.

POPULATION OF THE STUDY

The population of the study consists of three cadres of permanent, temporary and contract employees, namely, Managers,
Supervisors and operative employees known as Workers working in Neycer India Limited. As per the hierarchy, the Managers
are superiors to supervisors and workers. The population of Managers, Supervisors, and Workers of the three categories in Neycer
India Limited is 267(153 Permanent Employees and 114 Temporary & Contract Employees).

SAMPLE SIZE

As the study organization is medium size and has minimum number of permanent employees, it is decided to choose the
entire permanent employees of this organization as sample for this study. So the study comprises of the entire permanent
employees of different hierarchy.Sampling technique adopted in this study is stratified sampling. The research has been carried out
with the sample size of 120, which includes different level of employees of Neycer India Limited.

ANALYSIS AND DISCUSSION

This section deals with the description of the demographic variables of the chosen employees for this study and
inferential statistics with respect to their perception towards the climate of their organisation.
 I: Description of the Demographic Variables of the Respondents

Table I: Distribution of Respondents according to their Demographic Variables

Personal Details Frequency Percent

Age Below 30 years 53 44.2

30 - 35 years 41 34.2
36 - 40 years 14 11.7
Above 40 years 12 10.0

Gender Male 106 88.3

Female 14 11.7
Marital status Married 88 73.3
Unmarried 32 26.7
EducationalQualificatio HSC & below 85 70.8
n
ITI/Diploma 15 12.5
UG/PG 13 10.8
Others 7 5.8

Designation Manager 9 7.5

Supervisor 14 11.7
Worker 97 80.8
It is known from the Table I that 44.2 % of the respondents belong to the age group of below30 years, 34.2% of the
respondents belong to the age group of 30 – 35 years, 11.7 % of the Respondents belong to the age group of 36 – 40 years
and remaining 10% of the respondents belong to the age group of above 40 years. It is found that majority of the
respondents belong to the age group of below 30 years. Gender wise distribution of the respondents shows that
88.3% of the respondents are male respondents and 11.7% of the respondents are female respondents. It is found
that majority of the respondents are male respondents.Marital status wise distribution of the chosen respondents indicates
that 73.3 % of the respondents are married and 26.7 % of the respondents are unmarried. Thus it is found that majority of the
respondents are married.It is known from the educational qualification wise distribution of the respondents that 70.8 % of the
respondents having HSC & below HSC, 12.5% of the respondents having ITI/Diploma, 10.8 % of the respondents having
UG/PG degrees, and remaining 5.8 % of the respondents having the educational qualifications other than the above
qualifications. It is found that majority of the respondents belong to HSC & below HSC category.Designation wise
distribution of the respondents indicates that 7.5 % of the respondents are managers,11.7% of the respondents are
supervisors and 80.8% of the respondents are workers. It is found that majority of the respondents chosen for the
study is workers.

Table II: Respondents’ perception towards Organitation Design

Statements Mean Std.deviation

The organization’s objectives are clear to me 2.41 1.10

4

Employees have a clear understanding of what 2.69 1.12

the organization is supposed to do 9

Roles & responsibilities within the group are 2.51 1.15

understood 2

Clear reporting structures have been established 2.56 1.15

in my organisation 1
 Employees in this organisation have the right 2.74 1.04
skill sets to perform their job 1

Overall Mean/Sd 2.58 1.115

2

Table II shows the respondents’ perception towards Organizational Design available in their
organization Neycer India Limited. The respondents are asked to rate their level of agreement
towards Organizational Design in five point scale. Mean and standard

deviation values are calculated based on the collected data. The respondents have rated high for only
two variables such as ‘Employee in this organization have the right skill sets to perform their
job’ and ‘Employees have a clear understanding of what organizations is supposed to do’ they have
rated very low is found from the table 4.10 that the overall for rest of the variables pertaining to
the perception of respondents towards the Organizational Design of their organization. Further it
Organizational design is below average.
 Table III: Respondents’ Perception towards Reward System
Statements Mean Std. Deviation

Good work is 2.51 1.061

recognized
appropriately
I receive an 3.38 1.146
appropriate salary
There is an 2.62 1.109
appropriate
difference between
the pay awarded to
good & bad
performers
I feel sense of Job 2.68 1.078
satisfaction
In general 2.81 1.071
employees are
adequately
rewarded in my
organization
Everyone in my 3.35 1.142
organization
receives right salary
Overall 2.8 1.10
Mean/SD 7 1

Table III depicts the respondents’ perception towards reward system available in their
organization Neycer India Limited. The respondents are asked to rate their level of agreement towards
reward system in five point scale. Mean and standard deviation values are calculated based on the
collected data. The respondents have rated high for only two variables such as ‘I receive an
appropriate salary’ and ‘Everyone in my organization receives right salary’ and they have rated very
low for rest of the variables pertaining to the reward system of their organization. Further it is found
from the Table 4.3 that the overall perception of the respondents towards the reward system is below
average.
 Table IV: Respondents’ Perception towards Co-workers relationship
Statements Mea Std.
n Deviatio
n
I feel my 2.63 1.107
efforts are
valued by my
peers
Knowledge & 2.88 1.107
information
sharing is a
group norm
across the
organization
Employees 2.51 1.021
consult each
other when
they need
support
Individuals 2.72 1.094
appreciate the
personal
contribution of
their peers
When 2.86 1.079
disagreement
occur they are
addressed
promptly in
order to resolve
them
Overall 2.72 1.063
Mean/SD

Table IV presents the respondents’ perception towards Co-workers relationship prevails in their
organization Neycer India Limited. The respondents are asked to rate their level of agreement
towards Co-workers relationship in five point scale. Mean and standard deviation values are calculated
based on the collected data. The respondents have rated high for only two variables such as ‘Knowledge
and information sharing is a group norm across the organization’ and ‘When disagreements occur they
are addressed promptly in order to resolve them’ and they have rated very low for rest of the
variables pertaining to Co-workers relationship exists in their organization. Further it is found from the
Table 4.12 that the overall perception of the respondents towards the Co-workers relationship is below
average.
Table V: Respondents’ Perception towards Work environment
Statements Mea Std.
n Deviation
I feel proud to be an employee of this 2.75 1.047
organization
I enjoy being a part of my organization 2.79 1.060
Employees have good balance between 2.87 1.107
work & personal life
Morale is high across the organization 2.81 1.031
Employees speak well about this 3.22 1.204
organization
Overall Mean/SD 2.88 5.449
Statements Mean

Table V shows the respondents’ perception towards work environment of their organization Neycer
India Limited. The respondents are asked to rate their level of agreement towards work environment in
five point scale. Mean and standard deviation values are calculated based on the collected
data. The respondents have rated high for only two variables such as ‘Employee speak well about
this organization’ and ‘Morale is high across the organization’ they have rated very low for
the rest of variables pertaining to work environment of their organization. Further it is found from the
Table 4.5 that the overall perception of the respondents towards the work environment is below.

FINDINGS
The Findings given below are the outcome of the analysis of the mean scores of the respondents’ (employees
of Neycer India Limited) perception towards various dimensions of organizational climate. This analysis helped the
 researcher to find out the employees’ perception towards the organizational climate of their organization.The
findings based on objectives are summarized below:

 Respondents belong to below 30 years of the age group have rated comparatively high for all variables of
organizational climate.

 The female respondents have rated comparatively high for all variables of organization climate.

 The unmarried respondents have rated comparatively high for all variables of organization climate.

 Respondents belong to HSC & below have rated comparatively high for all variables of organizational
climate.

 Respondents belong to worker category have rated comparatively high for all variables of organizational
climate.

It is also found that the overall perception of the respondents towards the Organizational design, Reward
system, Co-workers relationship and Work environment is low.

CONCLUSIONS

The research study titled “An Empirical Study on Organizational Climate in Neycer India Limited, Vadalur”
carried out with the employees of different hierarchy of Neycer India Limited, Vadalur of Tamil Nadu State. The prime aim
of the study is to find out the employees’ perception towards the climate their organisation. The results of the study
reveal various interesting findings. The major finding is that the chosen employees having different kinds of
demographic characteristics have perceived differently towards the climate of their organization and the overall
perception of the respondents towards the Organizational design, Reward system, Co- workers relationship and Work
environment is low..The results of the analysis and interpretations of the responses of the employees made the
researcher to offer certain suggestions to the study organization Neycer India Limited. The summary of the suggestions
is that this organization should take necessary measures and steps to improve its organizational climate in order
 to make each and every one of its employees satisfied and thereby it can enhance its productivity and reduce labour turn
over.

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