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CHAPTER-1: INTRODUCTION
Employee Attitude
The importance of attitude in understanding psychological phenomenon was
recognizedearly in the history of social psychology. From the time of the concepts entry i
nto language of psychology, interest in attitude has been strong and growing. However,
over the years attitudes has been studied with differing emphasis and methods. Attitude
can also be defined in two ways, Conceptual and Operational. There is quite a difference
in the conceptual definition of the term attitude, and divergent points of view regarding
the concept of attitude have developed.
When the term first entered the field of social phenomenon, it was natural to
conceive of attitude as a tendency, set or readiness to respond to some social object. For
the first time, ALLPORT noted the definition of attitude, which he had observed
contained the words readiness, set or disposition to act. Even ALLPORT has used
these terms in defining attitude. He defines attitude as follows:
of a person.
Attitudes are invisible as they constitute a psychologies phenomenon which
cannot be observed directly. They can be observed by observing the behavior of
an individual.
Attitudes are pervasive in nature and every individual has some kind of attitude
towards the objects in his environment. Moreover, attitudes are forced in the
socialization process and may relate to anything in the environment.
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Figure 1.1: Social cognitive Theory
Another important perspective distinct from the understanding of organizational
climate in this study is represented by Bowen and Ostroff (2004). They see organizational
climate as linking force between HRM practices and firm performance. Bowen and
Ostroff (2004) related this understanding to a whole school of researchers that defines
organizational climate as shared perception of what the organization is in terms of
practices, policies, procedures, routines and rewards. The definition of organizational
climate in their study is not characterized directly by factors as procedures, routines and
policies in the organization rather is characterized by perceived psychological
interpersonal dimensions like trust, conflict, and morale and so on.
Another term often mentioned within organizational behavior is organizational
culture. It is necessary to understand, because it can be confused and confounded with
organizational climate (Dension, 1996; Schneider, 1990 in Burton et al., 2004). The main
difference is that organizational culture additionally includes norms, symbols, structure
and rituals of an organization (Burton et al., 2004) whereas organizational climate uses it
Group climate:
The group climate is concentrated on internal focus with high trust and morale.
Developmental climate:
The developmental climate is more externally oriented. Trust and moral are high
as well, but the resistance to change is low.
Purpose of Study
The purpose of this study is to describe and distinguish the unique qualities of the
organizational climate of Triveni Engineering as perceived by its employee work groups,
to examine associations of that climate with a management system specifically
performance of the employees study. Further it intends to measure the impact of
organizational climate on performance. Secondly it intends to measure the employee
attitude and its impact on performance of the employees.
Therefore, this study intends to measure the impact of both the employee attitude
and the organizational climate on performance.
Theoretical Framework
The theoretical framework for this study focused on two existing paradigms:
organizational theory and leadership theory. Organizational theory examines and predicts
how an organizations structure can assist employees in achieving their goals (Sir
Stanford Fleming College, 2006). Organizational theory establishes the framework for
dissecting and interpreting what is essential in directing organizational success and
performance. The International Society for Complexity, Information, and Design (2005)
in their publication stated that organizational theories are the backbone of the field of
organizational studies, which has as its objective the investigation of organizations,
particularly human organizations, in order to better understand their structures, functions
and properties for the purpose of enhancing productivity and satisfaction.
The theoretical framework used in the research given by International Society for
Complexity, Information, and Design, 2005 suggested that organizational theory is an
important factor as it pertains to the study and its potential results. Organizational theory
examines behavior, both at the individual and group levels of analysis .Individual
behavior within the organizational environment is notable, as it may be a critical factor in
predicting how an organization may perform. This performance may beat a high level or
low level, which can affect the organizational bottom line. Leadership theory is a
secondary component to the theoretical framework of the current case study. Rubenstein
(2005) aptly phrased the following: the current evolutionary phase of what we call
leadership can improve our workplaces, productivity, employee retention, and profits and
reduce strife inside the workplace. The theory of leadership has evolved continuously
throughout the past several decades, from the origins of gurus like Frederick Taylor to the
modern theorist or leaders like Peter Drucker or Jack Welch. Leadership contributes to
organizational objectives and achievements (Rubenstein, 2005).
Chu et al. (2005) explored the relationship among role conflicts, work attitude,
work pressure and departure tendency. Their results indicated that work attitude is the
behavior tendency at work, which has a direct impact on work behavior. Wei and Chu
(2008) performed a survey on employees in the financial service industry, and found that
work attitude has a positive effect on job performance. Better work attitude leads to better
job performance. Chih et al. (2008) indicated that work satisfaction and work
involvement have a positive effect on job performance. Organizational commitment
influences job performance via the identification and internalization of individuals within
the organization. When employees are emotionally committed to an organization, their
sales improve (Hunter and Thatcher, 2007). Chen et al. (2008) examined employees
working in companies after merging, and found that their commitment to the new
organization has a significant influence on job performance. Therefore, this research
inferred that the work attitude of employees in any industry has an influence on work
behavior which indirectly affects the performance.
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Definition of Terms
1. Environment: In the context of organizational climate, environment is combatively
used in literature to reference the social and psychological context of organizations.
2. Organization: It refers to an institution, age ncy or entity established to serve a
specific function. Organizations may be composed of subgroups, occupational units,
hierarchical levels of function, or geographically dispersed units.
3. Organizational climate: According to Kopelman (1990) organizational climate refers
to meaningful interpretations of a work environment by the people in it. Tagiuri and
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Litwin (1968) use the terms climate and organizational climate to refer to the idea of
perceived environmental quality. Forehand and Gilmer (1964) defined climate as the
set of characteristics that describe an organization and that (a) distinguish the
organization from other organizations, (b) are relatively enduring over time, and (c)
influence the behavior of people in the organization (p. 362).
4. Organizational culture: It is a pattern of basic assumptions invented, discovered, or
developed by a given group as it learns to cope with its problems of external adaptation
and internal integration that has worked well enough to be considered valid and,
therefore, to be taught to new members as the correct way to perceive, think, and feel in
relation to those problems.
5. Climate categories: Very broad dimensions of organizational functions, each covering
many aspects of the climate perceptions being measured.
6. Perception / perceive: It is the act or ability to mentally understand, feel, or
intuitively comprehend impressions, qualities or concepts by means of the senses or
knowledge; to be aware of through the senses, to mentally separate a thing from others.
Summary
The organizational climate research may have value in clarifying the future
direction of management policies, procedures, thus enabling the organization to adapt
externally and integrate its functions internally. Understanding of climate factors such as
perception of communication and collaboration can be used in making programmatic
strategies and administrative decisions. The quality and climate for organizational
communications is a factor associated with programmatic direction. Both formal and
informal communications among colleagues and supervisors affect the motivation and
support to implement innovative programs and the performance efforts of its employees.
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previous attempts to examine the relationship between work practices and the
performance of firms. Among the most intractable has been a concern about establishing
causation given heterogeneity biases in what have typically been cross-sectional data.
The results from prior literature are suggestive of important productivity effects but
remain inconclusive. To address the major methodological problems they use a national
probability sample of establishments, measures of work practices and performance that
are comparable across organizations, and most importantly a unique longitudinal design
incorporating data from a period prior to the advent of high performance work practices.
Their results suggested that work practices that transfer power to employees, often
described as high performance practices, may rose productivity, although the statistical
case is weak. However, they also found that these work practices on average raise labor
costs per employee. The net result is no apparent effect on efficiency, a measure that
combines labor costs and labor productivity. While these results do not appear to be
consistent with the view that such practices are good for employers, neither do they
suggest that such practices harm employers. They are, however, consistent with the view
that these practices raise average compensation and hence may be good for employees.
Overall, then, the evidence suggests that firms can choose high road human resources
practices that raise employee compensation without necessarily harming their
competitiveness.
Gelade, Garry A. and Ivery, Mark (2003), examined relationships between
human resource management (HRM), work climate and organizational performance in
the branch network of a retail bank. It extends previous research on group-level climateperformance and HRM-performance relationships and examines how climate and HRM
function as joint antecedents of business unit performance. Significant correlations are
found between work climate, human resource practices, and business performance. The
results show that the correlations between climate and performance cannot be explained
by their common dependence on HRM factors, and that the data are consistent with a
mediation model in which the effects of HRM practices on business performance are
partially mediated by work climate.
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Patterson, Malcolm Warr, Peter and West, Michael (2004), predicted that
associations between company climate and productivity would be mediated by average
level of job satisfaction. In a study of 42 manufacturing companies, subsequent
productivity was significantly correlated in controlled analyses with eight aspects of
organizational climate (e.g. skill development and concern for employee welfare) and
also with average job satisfaction. The mediation hypothesis was supported in
hierarchical multiple regressions for separate aspects of climate. In addition, an overall
analysis showed that company productivity was more strongly correlated with those
aspects of climate that had stronger satisfaction loadings. A second prediction, that
managers perceptions of climate would be more closely linked to company productivity
than would those of non-managers, was not supported. However, managers assessments
of most aspects of their companys climate were significantly more positive than those of
non-managers.
Jaramillo, Fernando Prakash Mulki, Jay and Solomon, Paul (2006),
researched to investigate the effects of ethical climate on salespersons role stress, job
attitudes, turnover intention, and job performance. Responses from 138 salespeople who
work for a large retailer selling high-end consumer durables at 68 stores in 16 states were
used to examine the process through which ethical climate affects organizational
variables. This is the first study offering empirical evidence that both job stress and job
attitudes are the mechanisms through which a high ethical climate leads to lower turnover
intention and higher job performance. Results indicated that ethical climate results in
lower role conflict and role ambiguity and higher satisfaction, which, in turn, leads to
lower turnover intention and organizational commitment. Also, findings indicate that
organizational commitment is a significant predictor of job performance.
Cascio, Wayne F(2006) , in his paper found that the behavior of individual
workers has important financial consequences for organizational performance and
productivity, as well as for employees themselves. They have examined just a few of the
many possible areas where the control of costs associated with employee behaviors (e.g.,
turnover, absenteeism, presenters, unhealthy lifestyles) and the benefits associated with
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Luthans, Fred, Norman, Steven M, Avolio, Bruce J. and Avey, James B(2007)
, in their paper investigated whether the recently emerging core construct of positive
psychological capital (consisting of hope, resilience, optimism, and efficacy) plays a role
in mediating the effects of a supportive organizational climate with employee outcomes.
Utilizing three diverse samples, results showed that employees psychological capital is
positively related to their performance, satisfaction, and commitment and a supportive
climate is related to employees satisfaction and commitment. The studys major
hypothesis that employees psychological capital mediates the relationship between
supportive climate and their performance was also supported. In conclusion, the results of
this study not only suggest the seeming value of employees psychological capital at all
levels within organizations, but also the benefits that may result from organizations
providing positive, supportive climates. Since psychological capital is state-like and
there is at least preliminary evidence that it can be developed , investing in and
developing employees psychological capital may be an example of the new thinking and
new approaches that are needed for the flat world environment facing todays
organizations and their leaders.
Lichtman, Robert J (2007), examined how organizational climate factors, such
as opportunity for personal growth, development, advancement, etc., influence the degree
that supply chain managers perceive their work situation as facilitating their giving their
best effort (performance) to their work. This study focuses on supply chain managers, as
this is a new, important, and previously unstudied managerial group. It was hypothesized,
based on past research, that supply chain managers who perceived a supportive climate in
their organization would feel that their work facilitates their giving their best effort at
work while those supply chain managers who perceived their organizational climate as
unsupportive would perceive their work situation as not conducive to their putting forth
their best effort at work. The results indicated that of the six climate questions dealing
with self-fulfillment, advancement, interpersonal relations, etc., supply chain managers
who reported that their work environment facilitates putting forth their best effort
indicated that they perceived their organization as providing a high degree of opportunity
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to achieve these factors. Whereas, supply chain managers who perceived their
organization as not supportive of these six factors perceived that their work environment
did not facilitate their putting forth their best effort.
Spruill, Edric L.(2008) , in his case quantified correlation factors between
organizational climate and employee performance at one specific division of an
organization. The goal was to determine if the factors that defined organizational climate
and employee performance could be correlated to a statistically significant degree that
would then illustrate the need for leaders to understand what could influence the
organizational efficiency and productivity of employees. An electronic web-based survey
was utilized to collect survey responses from the participants. The demography consisted
of employees below the senior manager level within the specific division. The results
suggested that organizational climate is significantly correlated to employee performance
according to 17 of 18 hypotheses.
Riketta, Michael (2008), conducted meta-analytic regression analyses on 16
studies that had repeatedly measured performance and job attitudes (i.e., job satisfaction
or organizational commitment). The effect of job attitudes on subsequent performance,
with baseline performance controlled, was weak but statistically significant (=.06). The
effect was slightly stronger for commitment than for satisfaction and depended negatively
on time lag. Effects of performance on subsequent job attitudes were elusive (= .00
across all studies), which suggested that job attitudes are more likely to influence
performance than vice versa.
Voon, Boo-Ho, Hamali, Jamil And Tangkau, Jennifer(2009), in their paper
examined the relationships among service climate, employee satisfaction, employee
loyalty, and organizational performance of service organizations. The service-driven
market orientation model of Voon (2006) was adapted to gauge the service climate from
the employees perspective. Structured questionnaires were given to senior employees of
three selected service organizations. A total of 120 usable questionnaires were analyzed
and the findings indicate that service climate positively influence employee satisfaction,
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employee loyalty, and employee perceived organizational performance. There were also
positive relationships among employee satisfaction, employee loyalty and organizational
performance
Ngo, Hang-Yue Foley, Sharon and Loi, Raymond (2009), in their paper tested a
conceptual model to examine the impact of family friendly work practices (FFWPs) at
the organizational level. In their model, top management support for equal opportunities
is considered an antecedent of FFWPs and positive organizational climate, and firm
performance and employee turnover are considered outcome variables. Structural
equation modeling (SEM) was used to analyze the data collected from a sample of HR
managers in multinational corporations (MNCs) in Hong Kong. The results showed that
top management support for equal opportunities was positively related to a firms level of
FFWPs and organizational climate. In addition, FFWPs were positively related to
organizational climate. They further found that organizational climate acted as a mediator
between FFWPs and firm-level outcomes.
Johnson, Diane E (2009), argued that these non-financial measures may be better
predictors of performance than traditional financial accounting measures. The assumed
relationship between non-financial measures and performance is that non-financial
measures drive performance. Employee attitudes often are used as non-financial
measures of performance. However, Schneider et al. (2003b) have developed a model
that suggests performance (i.e., financial outcomes) drives employee attitude, rather than
the reverse. Their research empirically explores this relationship.
Their findings suggested that financial performance leads to employee attitudes,
most specifically when the financial performance improved. The findings were of interest
to researchers (and practitioners) in a number of important ways. Most notably, they
found that when exploring the relationship between financial performance and employee
attitudes, it was important to investigate changes in financial performance rather than just
levels of financial performance. When only levels of ROA were investigated, attitude
levels, in general, were significantly higher in banking centers that had performed the
worst financially and lower in banking centers that had performed the best financially.
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These findings were contrary to the expectations derived from theory and prior research.
However, when looking at the changes in financial performance over three- and sixmonth periods preceding the collection of attitudinal data, banking centers that
experienced the highest positive change in ROA had employees with significantly greater
attitude levels than employees in banking centers that experienced the lowest change in
financial performance.
Raza, Syed Ahmad (2010), in his study considered the objectives of (a) to
identify the strengths of the organizational climates of Public and Private Degree
Colleges as perceived by the heads, teachers and college students. (b) To identify the
weaknesses of the organizational climates of Public and Private Degree Colleges as
perceived by the heads, teachers and college students. (c) To measure the performance of
the teachers as perceived by the heads of the organizations. (d) To explore the
performance of teachers as perceived by the college students. (e) To find out the
relationship between organizational climate and performance of college teachers.
The nature of this study was co-relational type. Population of this study
comprised of the following categories (1) Principals of all Public and Private degree
colleges in Punjab (2) all the teachers working in Public and Private degree colleges in
Punjab (3) all the students studying in these colleges. For choosing the sample from the
population random sampling technique was used. The sample was consisted of 100
degree colleges (70 Public + 30 Private); their heads, five teachers and fifteen students
from each college were also included in the sample. The total was 100 heads, 500
teachers and 1500 students. In order to measure the variables the research instruments
were the questionnaires for heads, teachers and students of sampled degree colleges. Data
collected from sampled colleges was tabulated, analyzed and interpreted by applying
mean, standard deviation, standard error of mean, coefficient of correlation and t-test
techniques in the light of the objectives of the study.
Voorde, K. Van De , Veldhovena M. Van and Paauwe, J.(2010), in their paper
presented a two-wave cross-lagged study (average interval of two years) on time
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evidence that the relation between organizational climate and profitability, sustainability
& growth, EBIT margin and productivity is mediated by employee engagement.
Furthermore, it was found that organizational climate is strongly influenced by
management support, and that the relation between organizational unit size and
organizational climate is mediated by management support. These results contribute to
the literature on organizational climate and performance. Besides, these results are of
great value to the business world, as managerial implications have been identified that
can be used to improve organizational climate, and thus, company performance
Raza, Syed Ahmad and Shah Arid, Pir Mehr Ali (2010), aimed to determine
the impact of organizational climate on performance of college teachers. The researcher
selected the area of college education as the focus of the study. The study was delimited
to all the public sector degree colleges of Punjab. Population of this study consisted of all
the principals and teachers working in public sector degree colleges of Punjab and the
simple random sampling technique sample was used. The sample consisted of 70 degree
colleges, their heads, and five teachers from each sampled college. In order to measure
the variables, the research instruments were the questionnaires for principals and
teachers. Each questionnaire consisted of 30 items. The data collected from sampled
colleges were tabulated, analyzed and interpreted in light of the objectives of the study by
applying statistical tools of research, such as mean, standard deviation, standard error of
means, and coefficient of correlation. On the basis of analysis, it was concluded that the
majority of public college principals opined that open climate was very highly and
positively correlated to teacher performance, but paternal and closed climates were
negatively correlated to teacher performance. In light of the conclusions, it is
recommended that teachers may be given chances to discuss their academic problems in
groups, seminars, and conferences. Workshops may be arranged more for this purpose.
The management style of principals may be improved through in-service training,
seminars, workshops and departmental meetings and supervision. Performance of
teachers can be increased by promoting open, as well as controlled, climates and avoiding
closed climate. These climates may be ensured through administrative policy and
measures
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Luu, Hieu (2011), examined the relationship between employee attitudes and
selected measures of job performance (sales volume, turnover, and absenteeism). Using
annual employee survey data from Eroski, a cooperative retail business in Spain,
evidence was found that employee attitudes are positively related to sales volume. This
relationship is, however, only present in stores with a high level of employee ownership
and employee involvement (called Coop stores). In stores with lower level of employee
ownership (called Gespa stores), no such evidence was found. In both types of stores, no
evidence of employee attitudes related to turnover rate and absenteeism rate was found.
These empirical findings fit well with literature on job attitudes and producer
cooperatives. It was argued that the findings are consistent with Coops superior
institutional features over Gespas.
Cooke, William N. And Meyer, David G.(2011), in their paper studied the
effects of high-involvement, high commitment HRM systems on performance was any
treatment, except by assumption, of the cognitive responses of employees to these
systems. To examine these largely untested assumptions, the literature was integrated and
extended on knowledge-based perspectives of firms and psychological workplace
climates; developing a structural model of the multifaceted nature of knowledge and skill
development climates and the direct and multiplicative effects of these climates on
employee psychological states of performance. Estimated against a sample of 888
employees across eight automotive supplier firms, their modeling obtains substantial
empirical support, which lended credence to the underlying assumptions made about
employee cognitive responses in the strategic HRM literature. Among more pronounced
findings, employees psychological states of performance are positively and strongly
associated with climates within which employees place greater value on learning new
skills and were more receptive to the diffusion of new technologies.
Heffernan, Margaret and Dundon, Tony(2012) , explored the relationship
between organizational-level High Performance Work Systems (HPWS) and individual
employee-level behaviors. Data was collected from 188 employees in three companies in
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the Republic of Ireland (RoI). The findings showed that employees in organizations with
a high investment in HPWS report lower job satisfaction, affective commitment and
higher perceptions of job pressure than those in organizations with a medium or low
investment in HPWS. Using cross-level analyses, perceptions of relational distributive
and relational procedural justice were found to mediate the relationship between HPWS
and employee outcomes of job satisfaction and affective commitment. Interactional
justice and relational procedural justice partially mediated the relationship between
organizational-level HPWS and employee work pressure. By using justice theory, the
research contributes to the body of knowledge concerning the causal processes between
HR practice and performance outcomes.
Liao, Chin-Wen Lu, Chien-Yu Huang, Chuan-Kuei and Chiang, Ta-Lung
(2012), in their paper aimed to explore the relations among work values, work attitude
(including job involvement and organizational commitment) and job performance, and
explored how the directors leadership may be a moderator between the work values and
work attitude of green industry employees in Taiwan. Data was collected through
convenience sampling. The samples in this study were employees and directors in the
green energy industry in Taiwan, A total of 650 questionnaires were sent to employees
and 120 questionnaires to directors. Of these, 485 valid questionnaires from the
employees were received as well as 92 questionnaires from the directors. The research
results found a positive correlation between work values and job attitude (including job
involvement and organizational commitment). A mediated effect was shown in work
attitude and job involvement toward work value and job performance. Directors with a
supportive and directive leadership style had a moderate effect on the relations between
work values and work attitude (including job involvement and organizational
commitment).
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Research Design
A research design is a type of blueprint prepared on various types of blueprints
available for the collection, measurement and analysis of data. A research design calls for
developing the most efficient plan of gathering the needed information. The design of a
research study is based on the purpose of the study.
A research design is the specification of methods and procedures for acquiring the
information needed. It is the overall pattern or framework of the project that stipulates
what information is to be collected from which source and by what procedures.
Typically, a research design involves the following components or tasks:1. Define the information needed
2. Design the exploratory, descriptive and/or causal phases of the research
3. Specify the measurement and scaling procedures
4. Construct and pretest a questionnaire or an appropriate form for data collection.
5. Specify the sampling process and sample size
6. Develop a plan of data analysis.
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In this study, the type of research used is Descriptive Research design. For getting
into detail of descriptive research, it is first necessary to know about Conclusive research
design as descriptive research is a type of conclusive research design.
Conclusive Research Design
It is the research designed to assist the decision maker in determining, evaluating
and selecting the best course of action to take in the given situation. It is more formal and
structured than exploratory research. It is based on large, representative samples, and the
data obtained are subjected to quantitative analysis. The findings from the research are
considered to be conclusive in nature in that they are used as inputs into managerial
decision making.
Conclusive research design is further divided into two-descriptive research and
causal research. Descriptive research is the one that has description of something
usually market characteristics or functions as their major objective. It is concerned with
the six Ws i.e., who, what, when, where, why and way the research is conducted. Causal
research is the one where the major objective is to obtain evidence regarding cause-andeffect relationships.
In this study, descriptive plus causal research design both are being used as the
research design. This is due to the reason that the problem is clearly defined and our
major objective lies in to describe the need and relevance of employee attitude and
organizational climate in the context of organization and how this affects the performance
of the employee. The study also demands certain predictions which are also the part of
descriptive research design. Further, the impact of both attitude and climate needs to be
measured against performance; hence the causal research design came into the picture.
Collectively, it contributes to conclusive research design.
Research Question
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The research questions are refined statements of the specific components of the
problem. Each component of the problem may have to be broken down into
subcomponents or research questions. Research questions ask what specific information
is required with respect to the problem components. The formulation of the research
questions should be guided not only by the problem definition, but also by the theoretical
framework and the analytical model adopted.
Research questions linked with this study are as follows1. Is there a statistically significant relationship between organizational climate and
employee performance?
2. To what extent employee attitude plays a significant role in enhancing the employee
performance?
These research questions will be discussed later in the report
Participants
The participants are the people who were taken into consideration in the study.
These are the employees of the Triveni Engineering who filled the questionnaires and
were analyzed to determine as to how much their performance is affected by their attitude
and the organizational climate.
Data Collection
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Collection of data is the first step in statistics. The data collection process follows
the formulation for research design including the sample plan. The data can be secondary
or primary.
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Instrument Used
In this study, the instrument used is questionnaire .A questionnaire is defined as a
structured technique for data collection that consists of a series of questions, written or
verbal, that a respondent answers. The questionnaire has been developed keeping in
consideration the objective of the study.
Objectives of a Good Questionnaire
It must translate the information needed into a set of specific questions that the
respondents can and will answer.
A questionnaire must uplift, motivate, and encourage the respondent to become
involved in the interview, to cooperate, and to complete the interview.
A questionnaire must minimize response error.
In this research, basically three parameters are used out of which one is divided
into three described as follows:1. Organizational Climate
2. Employee Attitude
3. Employee Performance
Organizational Climate is measured by the following four1. Ethical Climate
2. Role Conflict
3. Role Ambiguity
4. Collaboration
Employee Attitude is measured by the following three1. Belongingness
2. Cooperation
3. Appreciation
Organizational Climate measures the nature of existing climate in the organization
on the basis of the ethicality of the existing climate, the role conflict, role ambiguity and
collaboration.
Employee attitude measures the degree to which the employee feel committed
toward his organization and is measured by degree of belongingness, cooperation and
appreciation.
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Lastly, the employee performance measures the extent to which the employees
performance is being affected by the organizational climate and the employee attitude.
Hence, the questionnaire used in the study obeys all the above listed objectives of
questionnaire.
Pilot Study
A pilot study is an initial investigation to give information that will be necessary
when designing a future trial or study. For example a pilot may be used to:
gather information. As the sample size of a pilot study is seldom sufficient to draw
reliable conclusions, the pilot should not be an end in itself.
In this study, the pilot study has been conducted on 40 samples to check the
reliability of the questionnaire .The sampling method used in the pilot study was
convenient sampling.
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Valid
%
40
100.0
.0
40
100.0
Excluded
Total
Reliability Statistics
Cronbach's Alpha
N of Items
.731
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Valid
%
150
100.0
.0
150
100.0
Excludeda
Total
.
Reliability Statistics
Cronbach's Alpha
N of Items
.711
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Procedures
The questionnaires were assigned randomly in the work time in the organization.
All the questionnaires were returned voluntarily. Participants were assured of
confidentiality. No one in the organization assessed the completed questionnaires and the
assistant sent all the sealed questionnaires to the researcher.
Sampling
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In this study, convenient sampling was used. This sampling method involves
deliberate selection of a particular unit of the universe for constituting a sample based on
the easy availability of the people..
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Data Analysis
Analysis of data
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For this study, the method used for analyzing the data is Regression Analysis
which measures the impact of dependent variable on independent variable. Here, the
impact of employee attitude and organizational climate is being measured on
performance. The regression coefficient tells us the intensity of impact on the dependent
variable. In this study, dependent variable includes performance and independent variable
includes employee attitude and organizational climate.
This research study used regression analysis to illustrate the relationship between
organizational climate and employee performance & employee attitude and employee
performance. Regression analysis expands upon correlational analysis. While correlation
measures a linear relationship, regression creates a line to describe the relationship
(Moore, 2001). Moore (2001) further posited, the usefulness of a regression line
depends on the correlation between the variables.
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This research study used the method of R, which shows how successful the
regression was in explaining the response (Moore, 2001, p. 290). The predictor and
response variable values were identified from the participants to the survey from the
research target population. The survey responses to the 30 questions were allocated to the
factors defined for organizational climate and employee attitude. These responses to the
questions on the survey were assigned a value of 1-5 (for disagree, somewhat disagree,
etc.) and were used as the numeric values for the organizational climate and employee
attitude factors subjected to regression analysis. The responses to the questions on the
survey were allocated to the factors defined for the employee performance factors. These
responses were used as the numeric values subjected to regression analysis.
For checking of the impact of the organizational climate and employee attitude on
performance, the performance is regressed on the both the former parameters. The
regression equation can be expressed as:
Performance= Employee Attitude + Organizational climate
Where,
Performance= Dependent variable
Employee attitude= Independent variable
Organizational climate=Independent variable
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
B
(Constant)
Std. Error
1.120
.347
OC
.148
.134
Att
.420
.105
Coefficients
Beta
Sig.
3.232
.002
.092
1.100
.273
.333
3.984
.000
37
Model Summary
Model
R Square
.379a
Adjusted R
Square
Estimate
.144
.132
.45120
Review of methodology
Research Design:
Descriptive research
Research Instrument:
Structured Questionnaire
Sampling Plan
i) Sample Method:
Convenient Sampling
150
38
Source of Data
a) Primary Data: Structured Questionnaire
b) Secondary Data: Journals, Company Data, etc.
39
Correlations
Perf
Perf
Pearson Correlation
C
1
Sig. (2-tailed)
N
C
Pearson Correlation
.406**
.000
150
150
.406**
Sig. (2-tailed)
.000
150
150
40
regression coefficient value () of .228 and p value .005 which is less than 0.05 which
indicates that less the ambiguity; more effective will be the performance.
On the other hand, the role clarity does not have significant effect on the
performance with =.120 and p value=.138 not less than .01 which is insignificant.
Therefore, this hypothesis is partially supported.
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
B
(Constant)
Std. Error
1.823
.242
RC
.106
.071
RA
.184
.065
Coefficients
Beta
Sig.
7.522
.000
.120
1.493
.138
.228
2.829
.005
41
Correlations
Perf
Perf
Belongingness
Pearson Correlation
.035
Sig. (2-tailed)
Belongingness
.671
150
150
Pearson Correlation
.035
Sig. (2-tailed)
.671
150
150
Appreciation
Pearson Correlation
Sig. (2-tailed)
N
Appreciation
Pearson Correlation
.000
150
150
.477**
Sig. (2-tailed)
.000
150
.477**
150
42
43
The hypothesis predicts that once the organisation has a reasonable climate wherein the
employee can perform effectively and efficiently. Thus, it is believed that when the
employees are satisfied with the climate maintained by the organization, they will
perform better.
Hypothesis 2 investigates the relationship between role clarity & role ambiguity
and employee performance. This hypothesis predicts that more the clearer the role of the
employee is, the more will be the employees performance. The organisation, which
practiced all the dimensions, will lead to high employee performance.
Hypothesis 3 investigates the relationship between belongingness with the
organization and employee performance. This hypothesis predicts that once the employee
is satisfied with his work place and feels as if it is his own organisation then it will surely
affect the employee performance positively.
Hypothesis 4 investigates the relationship between appreciation given by top
management and its impact on the employee performance. This hypothesis states that if
the employee is appraised for his good work, he/she would be motivated and would
perform better.
Conclusion
For over 70 years, the attitudes-performance problem has been the subject of
much research in social sciences. Producer cooperatives and labor-managed firms have
also attracted much attention from scholars in various fields. This paper, a study of
attitudes-performance and climate-performance in a cooperative setting, is a contribution
to both of these important topics. By doing the statistical analysis, it was found that
employee attitudes can potentially help boost performance, and that employee attitudes
are not significantly related to belongingness but significantly related to appreciation.
Secondly, for the organizational climate, it was found that collaborative and role
44
ambiguity has significant impact on the performance whereas role clarity does not have
significant effect on the performance.
The results of this descriptive study revealed that employees perceptions of
attitude were significant and positively related to employee performance. The result also
indicates that organisation and employee performance is the main practices of the
organisation followed by employee loyalty and competitor orientation. The findings
suggest that organization should focus on making the climate helpful and friendly which
indirectly contribute to organizational enhanced performance which makes it competitive
in the business. Employee within the organisation should communicate to each other in
order to share the ideas or opinion regarding the current issues specifically about the
latest preferences service that is expected by the customers nowadays. This will much
assist the service organisation in order to create competitive advantage and have a
friendly environment internally.
As expected, the result suggested that employees attitudes towards their
workplace positively associated with their performance. That means employees with
more positive attitudes towards their workplace are more likely satisfied with their jobs.
Moreover, among the overall attitudes, employees perceived support from the
organization and their supervisor, the appraisal by supervisors were also strongly related
to their performance. In the study, it was expected that employees were positive towards
the climate also but this result was not supported.
Recommendations
The following are the recommendations that can be implemented taking into
consideration this particular research study:
45
Leaders should evaluate internal resources and solicit the assistance of external
resources to understand the nuances of his or her area of responsibility.
Limitations
There are some limitations which are encountered during the research. They are as
follows:
The results of this study couldnt be generalized to all employees in the big social
context, and should be used carefully.
This research enables us to examine the correlations of each variable, but this
study has not taken the personality issues in exploring employees attitudes,
therefore we should be careful about attributing all the results to performance
itself.
There is no concrete basis to prove the response given is a true measure of the
opinion of all the employees as a whole.
46
respondents may not have given a proper thought before answering the questions
The response of the respondents may not be accurate thinking that the
management might misuse the data
Due to the fact that most of the respondents were young, the questions might not
have been answered with due sincerity
Another limitation is that this study only investigated the link between employee
attitudes, climate and performance. There are many other potential firm factors
that could have differential effects on employee attitudes - employee performance
relationship.
47
More research is needed with regard to time aspects in the relationship between
organizational climate and performance. We applied a longitudinal design with repeated
48
measures of both organizational climate and performance and we used structural equation
modeling. However, apart from considering forward and inverse causation explanations,
we did not address the issue of which time lag is necessary for the proposed link between
the organizational climate and performance in much detail. The effect of organizational
climate on organizational performance might depend on the length of the time interval.
The true effect of substantial organizational climate changes may only be visible over a
longer period than the average two years in this study, since the stability of the
organizational climate scales and the business unit performance declines over time.
Another important area for future research could be to investigate the timing
sensitivity of the relationships explored in this study. There is no specific theory on the
lasting effects of attitude on performance. The relationships presented in this paper can
further analyzed and enhanced through the use of structural equation modeling to test the
model fit and established the causal relationships hypothesized. Future researchers may
also wish to gather data on service climate and organizational performance capability
from the sources other than employees, which may provide a degree of triangulation or
validity of the data.
REFERENCES
Journals:
49
Ahmad, Habib Ahmad, Khursheed Shah, Idrees Ali (2010) Relationship between Job
Satisfaction, Job Performance Attitude towards Work and Organizational Commitment
European Journal of Social Sciences Volume 18, Number 2
Cappelli, Peter and Neumark, David (1999), Do High Performance Work Practices
Improve Establishment-Level Outcomes? NATIONAL BUREAU OF ECONOMIC
RESEARCH
Cascio, Wayne F(2006) The Economic Impact of Employee Behaviors on Organizational
Performance California Management Review Vol 48, No. 4
Cooke, William N. And Meyer, David G.(2011) The Effects Of Workplace Climates On
Employee Performance Capacities: A Knowledge-Based Perspective
Gelade, Garry A. and Ivery, Mark (2003), The Impact of Human Resource Management
and Work Climate on Organizational Performance, Personnel Psychology
Guest, David E and Conway, Neil (2007) Human Resource Management, Employee
Attitudes and Workplace Performance: An Examination of the Linkages Using the 2004
Workplace Employment Relations Survey
Heffernan, Margaret and Dundon, Tony (2012), Researching Employee Reactions to
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(summer 2006), pp. 271282 ISSN 0885-3134
50
Johnson, Diane E (2009) Examining the Relationship between Employee Attitudes and a
Firms Financial Performance: A Theoretical Framework and Causal Investigation
JOURNAL OF MANAGERIAL ISSUES Vol. XXI Number 3
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Riketta, Michael (2008) The Causal Relation Between Job Attitudes and Performance: A
Meta-Analysis of Panel Studies Journal of Applied Psychology, Vol. 93
Voon, Boo-Ho, Hamali, Jamil And Tangkau, Jennifer(2009) Linking Service Climate To
Organizational Performance: Evidence From Sarawak, International Journal Business
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Voorde, K. Van De, Veldhovena M. Van and Paauwe, J.(2010) Time precedence in the
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Case studies:
ANNEXURE: Questionnaire
Name:
Designation:
Contact No:
52
Please read this form carefully and give your sincere and honest feedback in five point
scale (Strongly Agree, Agree, Disagree, Strongly Disagree, No comment) whatever you
feel.
Agree
Neutral
Disagree
Strongly
Agree
Neutral
Disagree
Strongly
Agree
Neutral
Disagree
Strongly
Agree
Neutral
Disagree
Strongly
5. People, here are guided by their own personal ethics not by their organization.
Strongly Agree
disagree
Agree
Neutral
Disagree
Strongly
Agree
Neutral
Disagree
Strongly
53
Agree
Neutral
Disagree
Strongly
Agree
Neutral
Disagree
Strongly
Disagree
Strongly
Disagree
Strongly
Agree
Neutral
Agree
Neutral
Agree
Neutral
Disagree
Disagree
Disagree
Agree
Neutral
Agree
Neutral
14. My work group coordinates its efforts with others which help in enhancing
performance.
54
Strongly Agree
Strongly disagree
Agree
Neutral
Disagree
15. I get the support from top management in dealing with the new ways of going
work
Strongly Agree
Strongly disagree
Agree
Neutral
Disagree
16. I am given the opportunity to work jointly with other people/work groups across
administrative lines and program areas.
Strongly Agree
Strongly disagree
Agree
Neutral
Disagree
Neutral
Disagree
Agree
18. I feel a sense of ownership for this organization rather than just being an
employee.
Strongly Agree
Strongly disagree
Agree
Neutral
Disagree
Agree
Neutral
Disagree
Disagree
Agree
Neutral
55
Agree
Neutral
Disagree
Disagree
Agree
Neutral
Agree
Neutral
Disagree
Disagree
Neutral
Disagree
Neutral
Disagree
Agree
Neutral
Agree
Agree
Agree
Neutral
Disagree
56
Agree
Neutral
Disagree
29. I think the more receptive employees to any change; the greater will be their
perceived
performance capacities.
Strongly Agree
Strongly disagree
Agree
Neutral
Disagree
Agree
Neutral
Disagree