CHAPTER I

INTRODUCTION AND METHODOLOGY

INTRODUCTION

Organization climate is comprised of mixture of norms, values, expectations, policies and

procedures that influence work motivation, commitment and ultimately, individual and work-

unit performance. Positive climate encourages, while negative climate inhibits discretionary

effort. Organization climate refers to the quality of working environment. If people feel

that they are valued and respected within the organization, they are more likely to contribute

positively to the achievement of business outcomes. Creating a healthy organizational climate

requires attention to the factors, which influence employees perceptions, including the

quality of leadership, the way in which decisions are made and whether the efforts of

employees are recognized. Climate may be thought as the perception of the

characteristics of an organization.

Climate for an organization is like the personality for a person. As every individual has a
personality that makes each person unique, each organization has an organization climate that
clearly distinguishes its personality from other organizations. Organizational climate is one of
the most important concepts to enter into the theory of organizational climate as a mature
concept in management. The concept has also proved useful in predicting and explaining a
variety of job-related behavior, attitudes and performance and organizational performance.

Organizational climate by virtue of being a more salient cultural phenomenon lent by itself to
direct observation and measurement and thus has had a longer research tradition. But climate
is only a surface manifestation of culture and thus research on climate has not enabled us to
involve into the deeper aspects of the functions of the organization.

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Organizational climate is less encompassing than the concept of organizational culture
and is more readily measured. Organization climate is how organization members
perceive the culture that has been created and perpetuated in their unit or
organization

Many people think that organizing is about spending all your time keeping your home
perfectly neat and tidy. Or about buying lots of expensive containers. Perhaps when you think
of an organized Mom you think of someone like Bree on Desperate Housewives who lives to
be organized instead of organizing to live.

Some people figure that if they aren't obsessed with organizing, they won't really become
organized so why bother organizing at all? The truth is that just being reasonably organized
enhances your whole life. It improves your self-confidence, self-respect, and overall well-
being.

It lowers stress and helps you find more time and energy to do the things in life that matter
most to you, like spending time with family, pursuing creative hobbies, eating healthy, and
exercising.

Organizations with same resources, employees of the same caliber and in the same territory
may yield different results. It is the upbringing of employees in the organization that makes
the difference. Employees commitment, satisfaction and consequently the effectiveness of
the organization are influenced by overall atmosphere of the organization.
Climate is the atmosphere that employees perceive and it is created in their organization by
practices procedure and rewards this perception is developed on a day-to-day basis.
Organization become dynamic and growth

Oriented in their people are dynamic and proactive every organization can do a lot to make
their people become dynamic and proactive through proper selection of such people and by
nurturing their dynamism and other competences organization can not survive beyond a point
unless they are continuously alert to the changing environment and continuously prepare their
employees to meet the challenges and have an impact on the environment. As the human
resource department ism an essential process for organizational survival and grow than
optimum level of development climate is essential for facilitating human resource
department. In an industrial organization the individuals who are working in different
functions and roles are engaged in the pursuit of some over all goals or set of goals. Every

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organization operates in terms of a set of polices norms, which are sometime clearly laid
down, while at other times are in the form of rations and conventions to plan, organize,
coordinate and control its various activities. An organizational requires managers who in their
day-to-day interactions reflect a variety of leadership styles and skills in dealing with their
subordinates. The sum total these and many other such activities create an internal
environment, with in each organization, which accounts. For its uniqueness and identity
member of an organizational work with in and are consciously influenced by this internal
environment which is also called organizational culture and climate.

Common elements of organizational climate

Organizational climate is a molar concept.

Though subject to change organizational climate is enduring over time.
Despite differences individual perceptions there can b e broad overall agreement in
describing organizational climate.
Organizational climate influences the behaviors of members of the organization

DEFINITIONS ON ORGANISATIONAL CLIMATE

HELLRIGED AND SLOCUM define organizational climate as a set of attributes which can
be perceived about a particular organizational and or its subsystem and which may be
induced from the way that organization deals with its members several theme are implicit in
this definition of organizational climate.

TAGUIUM AND LITWIN define organizational climate as a relatively enduring quality of

the internal environment that is experienced by its members influence s their behaviors and
can be described interims of the values of particular set of characteristics of the organization.

JEWELL AND SIEGALL (1990) emphasized that organizational climate is descriptive

concept based on individual perceptions of the social environment of an organization.
Employees observe what happens to them and around them, and then draw conclusions about
their organizations priorities. They then set their own priorities accordingly. Thus; these

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perceptions provide employees with direction and orientation about where they should focus
their energies and
Organizational Climate Assessment is a powerful instrument, especially when provided
organization-wide with specific departmental demographic separation and analysis. Each
category has been designed to assess one of the key categories, which affect employee
performance. This assessment should be administered anonymously company wide, broken
out by departments of 6 or more people to protect the identities of respondents. Every
precaution should be taken to insure confidentiality in order that respondents will feel
comfortable sharing their true opinions and perspectives.

The objective of performing an employee climate assessment is to identify the key areas
which are hindering production, reducing effectiveness and which might generate unexpected
costs in the near future. The idea and approach is for the organization not to simply perform
an academic exercise, simply because they do it at this time every year, but to critically
examine themselves to see where the company and its employees might be finely tuned to
generate higher levels of performance. Once identified, opportunities to strengthen existing
approaches, which are working well, as well as select appropriate interventions for addressing
the weakest areas, should be aggressively pursued for the maximum benefit of every
employee

Organizations are successful because of the quality of work employees perform. When
employees are cared for, and the right environment is created where there are no barriers to
performance, their true value to the organization can be fully realized Humans have
fundamental needs for safety and security, affiliation and acceptance, involvement as well as
self-actualization. The extent to which these and other human needs are fulfilled lead to
higher levels of commitment, initiative and performance. Organizations, which include an
emphasis on fulfilling the needs of their employees to some extent, will enjoy a more
productive and stable workforce.This assessment is designed with the following assumptions
in mind:

Fundamental care of the employee as an asset

Organizations are successful because of the quality of work employees perform. When
employees are cared for, and the right environment is created where there are no barriers to
performance, their true value to the organization can be fully realized.

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Respect for the dignity of the employee and the sensitivities of human beings

Humans have fundamental needs for safety and security, affiliation and acceptance,
involvement as well as self-actualization. The extent to which these and other human needs
are fulfilled lead to higher levels of commitment, initiative and performance Organizations,
who include an emphasis on fulfilling the needs of their employees to some extent, will enjoy
a more productive and stable workforce.

Full understanding of the realities of business

This assessment is written with full realization of the realities of business, and not an
unrealistic utopian view of an idealized work environment. The factors emphasized and
measured in this assessment are the important levers to optimizing employee workplace
performance, not just creating an environment where everyone feels better.

Embracing optimization and improvement

An irrefutable trend in business today, continuous improvement and increasing levels of

efficiency are a way of life, and these factors are given appropriate emphasis in this
assessment because they represent an ever present dynamic with which every employee must
deal.

Keys to motivation and commitment

Rather than only identifying potential problem areas to be avoided, this assessment focuses
on areas where human behavior can be leveraged more positively to create employees with
higher levels of motivation and commitment.

SCHNEIDER AND RENTSCH (1988) consider climate to be the message that

organizational members receive from organizational routines (policies, expectations,
procedure, etc.) And the reward system (supports, expectations and various kinds of reward).
They define culture as the values and norms underlying such organizational routines and
rewards, in addition to the shared assumptions about organizational life reflected in these
norms and values. In other words, climate is the manifestation or communicated form of
culture. The organizational routines (the what) measured in climate research are interpreted
and given meaning (the why) by organizational members, as assessed in culture research.

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Being organized is about:

Being in control of your space, your possessions and your time.

Being proactive and not just reactive to all the stuff and noise out there competing

for your attention and your money.

Being able to find what you need, when you need it.

Being able to get where you want to be on time.

Being able to pay your bills on time.

Having a home for everything so that putting things away - and finding them

again - is just as easy as dropping them on a table.

Organizations are successful because of the quality of work employees perform. When

employees are cared for, and the right environment is created where there are no barriers to

performance, their true value to the organization can be fully realized.

Humans have fundamental needs for safety and security, affiliation and acceptance,

involvement as well as self-actualization. The extent to which these and other human needs

are fulfilled lead to higher levels of commitment, initiative and performance. Organizations,

who include an emphasis on fulfilling the needs of their employees to some extent, will enjoy

a more productive and stable workforce.

WORK CLIMATE AND EMPLOYEES PERFORMANCE

Work climate is the weather of the workplace. Just as the weather can affect daily activities,

the work climate influences employee behavior. Every organization has a work climate. Within

an organization, the climate of an individual work group may differ from the prevailing

organizational climate. High-performing work groups can operate well even in organizations

that are troubled by declining funding, weak senior leadership, or similar problems.

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Work-group climate in

A positive work climate leads to and sustains employee motivation, high

performance, and better results in health care.

Good leadership and management practices contribute to a positive work climate

Influences results. A positive work group climate motivates employees to improve

their performance by going above and beyond job expectations. Better performing

work groups contribute to better organizational performance, which in turn leads to

better results. In the health sector a good work-group climate leads to improved

service delivery and thus to better health outcomes

Good Leadership and Management

How managers perform is crucial to organizational out comes. Work-group climate itself is an

intermediate outcome of effective leadership and work-group climate can be attributed to

differences in day-to-day practices of the people who manage the work group. Organizational

practices that managers can influence, such as the design of tasks and jobs, reward systems,

policies and procedures, and strategy, can also have a large impact. To influence a work

groups climate, managers need to:

Understand the three key dimensions of work climate;

Assess the climate of their work group; and

Take action to improve their work groups climate

Three Key Dimensions of Work Climate

Clarity. An environment provides clarity when the group knows its roles and responsibilities

within the overall organization.

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Support. In a supportive environment, staff members feel that they have the resources and

backing they need to achieve the work groups goals.

Challenge. An environment of challenge offers group members opportunities to stretch their

abilities, take reasonable risks in solving problems, and discover new ways of working to

become more effective.

GOALS AND ORGANIZATION

When individuals establish agreements among them selves to achieve a common goal, an

association is born. One or several groups of individuals is then vested with the

responsibility for implementing the agreements. These groups are the executive bodies of

the found.

While the term "association" is linked to the desire of a group of individuals to act in

common, the term institution originates generally from the desire of the government to

achieve a certain goal. In many instances the government delegates authority to a group

of individuals with the responsibility of achieving this goal. The way in which this group

of individuals organize themselves to pursue the goal constitutes the new institute.

Though the above illustrates some distinctions between the terms "institution" and

"association", the difference is far from clear. Some authors, such as Hutchins (1952),

use the term "institution" for any kind of social organization. However, in the present

paper the term "institution" is used mainly in relation to government concerns, and

"association" in connection with farmers' groups.

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The term organization is perhaps the most complex of all and is used with a variety of

meanings. It is used here in a generic sense as the design of any kind of social arrangements

between individuals - regardless of whether they are farmers or government officials - to

achieve a goal or set of goals. Therefore the term is used recurrently in this text to define any

kind of association, institution or possible combination of these.

Lit win and Stringer (1968) measured climate by asking organization members to respond

to questionnaire items pertaining to nine categories. Perceptions and feelings are obviously

interrelated, perceptions give rise to feelings and feelings affect perceptions. The nine

categories are

Structure:

The feeling that employees have about the constraints in he group, how many rules,

regulations, procedures there are, is there an emphasis on red tape and going through

channels, or is there a loose and informal atmosphere?

Responsibility:

The feeling of being your own boss, not having to double-check all the decisions, when you

have a job to do, knowing that it is your job.

Reward:

The feeling of being rewarded for a job done, emphasizing rewards rather than punishments,

the perceived fairness of the pay and promotion policies.

Risk:

The sense of riskiness and challenge in the job and in the organization is there an emphasis on

taking calculated risks or it safe is the best way to operate.

Warmth:

The feeling of general good fellowship that prevails in the work group atmosphere, the

emphasis on being well liked, the prevalence of friendly and informal social groups.

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Support: The perceived helpfulness of the mangers and other employees in the group,

emphasis on mutual support from above and below.

Standards:

The perceived importance of implicit and explicit goals and performance standards, the

emphasis on doing a good job, the challenge represented.

Conflict:

The feeling that managers and other workers want to hear different opinions, the emphasis

placed on getting problems out in the open, rather than smoothing them over or ignoring

them.

Identity:

The feeling that you belong to a company and you are a valuable member of a working team,

the importance placed on this kind of spirit

How Can One Assess an Organizations Climate?

It is generally agreed that assessment of an organizations climate is a relatively

straightforward process, especially when compared to the methodologies needed to assess the

organizations culture. As climate is defined as individuals perceptions, quantitative survey

instruments have become the most widely accepted means of gathering and analyzing

organizational climate.

It is at this stage that organizational climate, and specifically motivation, may assume a

significant role. If the climate is healthy and positive in relation to the change(s),

implementation is facilitated. If the climate is dysfunctional or negative regarding the

change(s), motivation must be improved before it is likely that implementation and

institutionalization will be successful.

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 COMMUNICATION

Communication fosters motivation by clarifying to employees what is to be done how well

they are doing, and what can be done to improve performance if its subpar. We saw this

operating in our review of goal setting and reinforcement .the information of specific goals

feed back on progress toward the goals and reinforcement of desired behavior all stimulate

motivation and require communication.

The finial function that communication performs relates to its facilitating decision-making. It

provides the information that individual and groups need to make decisions by transmitting

the data to identify and evaluate alternative choices.

Professional Interaction refers to acceptance and support from others, with involvement,

sharing, good communication and help when needed.

Work groups that demonstrated a high rating for professional interaction reported a range of

the following behaviors.

Formal and informal systems are in place to enhance communication between units. Rotate

responsibility for staff to sit in on the team meetings of other workgroups to provide

information to them about the work of their group. Report back at team meetings on the

activities of the other groups

Opportunities are provided for all team members Participating in a project to see the finished

products Work based personal development activities are included as part of professional

growth and development activities the focus is on team performance, not on individual

competitiveness the work group task and relational problems are collectively solved

DECESION MAKING

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Participative Decision Making refers to the perception that staff are asked to participate in

decisions and given opportunities to express their views.

Work groups that demonstrated a high rating on Participative Decision Making reported a

range of the following behaviors. Staff understand the strategic context in which their work

group and department operate so that they can make congruent decisions access to relevant

information needed to make decisions is readily available

Staff have a say over who comes into the team by involving them in the selection process and

allowing them to take turns on selection panels opportunities for staff to work in cross-

functional teams are promoted staff are involved in decisions which affect them so that they

have ownership of decisions. This does not mean endless consultation but rather working to

an agreed decision making framework staff can make and are supported in decisions relevant

to their responsibilities.

They have job related responsibilities and should be given accountability for these a means

for staff to access information or attend other forums is provided staff are kept up to date on

changes to policy and practices decisions are really participative and not made by only a few

of the same people in the work group staff suggestions are acknowledged and they are

thanked for their input the reasons for important decisions in which they have not been

involved are explained to them there are formal review processes for projects, procedures

and decisions so that the work group can discuss what worked and what they would do

differently next time a bias for action is promoted and decisions relevant to getting their job

done are made in a timely way a positive work environment is promoted where people are

genuinely encouraged to make decisions and ask questions to get information necessary to

making a decision.

GOALS

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Goal Congruence refers to the perception that personal goals are in agreement with

workplace goals that are clearly stated and understood.

Work groups that demonstrated a high rating on Goal Congruence reported a range of the

following behaviours staff know the values of the organisation and see these modelled in the

behaviours of the management team business planning processes are transparent and

participative and align with departmental objectives the business planning process clearly

articulates how the work group will contribute to departmental goals and values information

about key decisions is shared team based performance plans are linked to unit and

department plans use of information services such as the departmental intranet is

encouraged.

LEADERSHIP

The ability to influence a group toward the achievement of goals.

Leader behavior can be categorize into four viz:

1. Supportive leadership behavior gives consideration to the needs of subordinates

shows a concern for their well-being and creates a pleasant organizational climate. It

has the greatest impact on subordinates performance when they frustrated and

dissatisfied.

2. Participative leadership allows subordinates to influence the decisions of their

superiors and can result in increased motivation.

3. Instrumental leadership gives subordinates rather specific guidance and clarifies what

is expected of them.

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 4. Achievement oriented leadership involves setting challenging goals, seeking

improvement of performance, and having confidence that subordinates will achieve

high goals.

OBJECTIVES OF THE STUDY

To study the social profile of the employees at ARS Metals Pvt. Limited.

To study crucial factors such as communication, leadership, motivation, decision

making &goals accomplishments at ARS Metals Pvt. Limited.

To study the satisfaction level of the welfare measures at ARS Metals Pvt. Limited.

To suggest the measures to improve organization climate at ARS Metals Pvt. Limited.

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Methodology

Pilot Study

The researcher at the initial phase of the study conducted a pilot study ARS Metals Pvt

Limited, whereby he was able to glean knowledge about the chosen area of study. The pilot

study was very instrumental in obliging the researcher with a very clear understanding of the

field.

Research Design

The Researcher will adopt exploratory research design; the purpose being a more precise

investigation and to develop a working hypothesis from an operational point of view and also

to explore possible new avenues in the chosen area of study.

Sampling Method

The Researcher will adopt snow ball sampling technique. The snow ball sampling technique

relates the set of procedures by the initial respondents who are selected by probability method

and there in after additional respondents are obtained on the basis of information provided by

them. This technique is used to identify elements of rare population by referrals.

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The main reason behind the researcher choosing this design is that most of the respondents

are in different places. With the help of referral researcher can identify the respondents and

collect data with considerable ease.

SNOW BALL SAMPLING is a technique for developing research sample where existing

study subjects recruit subjects from among their acquaintances. Thus the sampling group

appears to grow like a rolling snow ball. This sampling technique is often used in hidden

populations which are difficult for the researcher to access, because sample members are not

selected from a sampling frame, snow ball samples are subject to numerous biases. For

insistence people who have many friends are more likely to be recruited into the sample.

Tool of Data Collection

A questionnaire facilitates easy response when the sample size is huge. It also facilitates in

collection of data in a short span of time. Moreover, the respondents may not be in a position

to reveal the subject with ease in an interview schedule; therefore, a questionnaire was used

as a tool to collect the data. The questions were in the form of statements.

Sources of Data Collection

Primary Source of Data

The primary sources of data are that, which are collected afresh for the first time and thus

happens to be original in character. The primary source of data collection were, information

obtained from respondents through a structured questionnaire.

Secondary Sources of Data

The Secondary sources of data collection were information obtained from books, journals,

articles, magazines, websites and contacts with resource persons.

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Pre testing

A pre test of the questionnaire was carried out among 10 staffs at ARS Metals Pvt. Limited.

The pre test helped the researcher gain more confidence and knowledge on the research

subject and enabled easy proceeding.

Limitations of the Study

The following are the limitations of the study.

1. The study is limited only to ARS Metals Pvt. Limited.

2. The results of the study cannot be generalized with any other organization.

Chapterisation

The whole study for analysis would be split into the following chapters:

Chapter 1

This chapter starts with a brief introduction of the topic then explains the statement of the

problem, need, importance, objectives and limitations. It also focuses on the methodology to

be adopted by the researcher for the study.

Chapter 2

This chapter contains various studies and articles done previously on the topic.

Chapter 3

This chapter would contain the analysis and interpretation of the data collected from the

respondents. The researcher would be using MS Office for analysis and would represent it

through various pictures, tables, graphs and charts.

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Chapter 4

This chapter would contain the main findings inferred from the data collected and also the

suggestions of the researcher based on the findings.

Chapter 5

This chapter would conclude the study with the researcher giving suitable inference from the

study.

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 CHAPTER II
ORGANISATIONAL PROFILE

ARS Metals Pvt. Ltd manufactures 'ARS Power TMT' re-bars with international acceptance

in an integrated steel mill. The company is one of the largest and advanced integrated steels

mills in Southern India, with an annual production capacity of 128000 MTPA. The company

has good distribution network in South India.

The superior 'ARS Power TMT' re-bars are produced with TEMPCORE technology in a large

speed mill. The TMT re-bars are earthquake proof owing to shock absorbing properties,

corrosion resistant and superior weldability. The sophisticated infrastructure facilities for R &

D and quality control help the company to produce the best quality at low-cost. The quality is

certified by Indian Institute of Technology, Chennai.

The general particulars of the company are as follows:

Name ARS Metals Pvt Limited

Incorporation Date 19.09.1990

Constitution Private Limited Company

Registered Office D 109, 2nd Floor, L.B.R. Complex, Anna Nagar East, Chennai600 102.

Steel Division B.1/S, SIPCOT Industrial Complex, Gummidipoondi601 201.

Power Division Survey No.207 Equvarpalayam Village Gumminipoondi Chennai-601212.

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ARS Metals Pvt Ltd (formerly known as ARS Metals Limited) was originally incorporated

on 19th September 1990. Mr. Ashwani Kumar Bhatia and his son Mr. Rajesh Bhatia are the

Promoter Directors of the Company.

The Company entered into manufacturing of MS Ingots at Gummidipoondi, Tamilnadu in the

year 1992. In 2003, knowing the widespread acceptance from the steel bar manufactures

throughout south India, the company started its own automatic rolling mill. The forward

integration was done with a capacity of 108000 MTs of rolled products per annum with latest

technology and well equipped infrastructure. Subsequently the ingot casting capacity was

also expanded. The Company is functioning as an integrated steel mill.

The Company, in 2009, increased the capacity of Billets making by installing a new furnace

with a capacity of 100800 MTPA. The capacity of MS Ingots/Billets thus increased to 145800

MTPA. Also, Company has converted the Ingot Making facility into Billet making with

continuous casting machine. The capacity of finished goods has increased from 45000 MT to

57600 MTs per annum. Also it has increased the capacity of its Rolling Mill by 20000 MTs to

128000 MTs.

ARS Metals Pvt Ltd. is an ISO 9002 certified company, one of the largest single integrated

mill and quality conscious companies of Southern India.

The Company has already commenced the 60 MW Captive Power Plant since August 2013.

As part of future expansion, the Company plans to set up higher capacity Power Plant to be

part of building a nation with self sufficiency in power generation.

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The Credit facilities of the company have been rated by ICRA as on March, 2013. The

Company has been assigned BB (STABLE) for its long term facilities and A4 (STABLE) for

its short term facilities.

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 CHAPTER III

REVIEW OF LITERATURE

Organisational climate is about the perceptions of the climate AND about absolute

measures. Climate, as a metaphor is helpful - e.g. temperature is a measurable element of

geographic climate, but it is not the absolute temperature that matters as much as human

perception of it (is it cold, hot, or comfortable?). It is only after knowing what temperature

means in terms of human comfort, that measurement of temperature becomes

useful. Complicating perception is the probability that what may be too cool for one person

may be too warm for another and just right for someone else. Similarly for organisations, the

climate may be regarded in absolute terms and measured by instruments, but is felt

differently by individuals. The absolute climate may suit one person and not another. What

its like to work here or How I feel when I work here.

Climate is worthwhile to understand and measure because there are organisational and human

benefits a good climate, and powerful disadvantages of many kinds of bad climate

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Bad Climate has been linked Good Climate has been linked to

to: desirable outcomes such as:

Turnover Job satisfaction

Stress Confidence in management

Sickness Affective commitment

Poor performance Intention to quit

Error rate Emotional Exhaustion

Wastage Faith in Organisational

Accidents Performance

and to bad behaviours such as: and to desirable behaviours such as:

Sabotage risk-taking (strategic),

Absenteeism departure from the status quo,

Go-slow open communication,

trust,
Bullying
operational freedom, and

employee development -

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A key point to make is that a good climate is not just one that keeps people comfortable, but

one that is strategically advantageous to the organisation while simultaneously bringing out

the best in its members because they are in a motivational climate.

Bad - climate of Good - climate of

fear, respect,

crisis, support.

anxiety, entrepreneurialism,

workplace aggression, innovation,

employee and executive burnout, cooperation,

employee turnover, performance,

politicking, profitable management practices,

decay, knowledge management,

hopelessness, organisational learning

employee readiness to change,

stagnation
collective learning,

openness

Measuring climate

Measurement of climate seeks to identify the components of both bad and good climate, both

in absolute terms and perceptual terms. While there are commercial instruments that measure

climate, there are powerful arguments for having one tailor-made to the organisation, and that

changes as the organisation changes. Generally, the areas of interect to measure are:

External environment - organisational interface with it

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 Organisational leadership / mission

Organisational structure / systems

Organisation and you

Management practices

Working - co-workers / teams / supervisor

Self - at work - your role, development, opportunities, motivation, commitment, stress

Self - outside work - how work affects your life (good/bad) - vice-versa

Strategic Climate Planning & Alignment

Although organisational activities are theoretically conducted in an emotionless manner, and

strategic plans are highly mechanistic in nature, there are at least two occurrences of 'below

the line' interactions that need acknowledgement. Firstly, humans are doing the strategic

planning, so feelings and emotions are an unavoidable (even if denied) and integral part of all

group conversations . The climate that is 'felt' by participating executives will influence their

behaviour during that conversation. In other words, climate influences strategic conversation.

Secondly and conversely, the strategic decisions affect feelings and emotions of employees

impacted by the decisions and thus influence the perceptual climate. So strategic conversation

influences climate. Unfortunately, acknowledgement of that bi-directional interaction is

absent from literature on strategic planning. This is in spite of recognition that much of what

really goes on in an organisation takes place below the surface of daily behaviours, displayed

in the form of conflicts, defensive behaviour, tensions and anxiety .

Climate and strategic planning

Before organisation-wide strategic thinking and conversation can occur, employees must 'feel'

they are in a safe climate that encourages their understanding of , and involvement in,

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strategic conversation . It is even intuitively reasonable to expect a different climate report

from within an organisation that merely 'permits' strategic thinking, to one that proactively

encourages it from within a climate of psychological safety. In support of this approach is

empirical evidence that climate and culture do indeed impact strategic thinking (Harris cited

in . This line of argument provides support for the possibility of using climate planning

intelligently - strategically - as a way to move strategic conversation throughout the

organisation. The same argument supports acknowledging human behaviour within the

resultant strategic plan - that is, the plan should acknowledge that it is dealing with humans.

In summary, the links between strategic plans and emotions can be demonstrated in three

ways. First there is the emotional involvement of participants to the process of developing

strategic plans . Secondly, every strategic plan impacts people, and therefore their climate.

The need to adjust plans to accommodate adverse impact on climate brings us to the need to

deliberately set out to influence climate. It is akin to a 'climate impact study' for strategic

plans. Finally, the previous two points prompt the suggestion that every strategic plan should

acknowledge and account for climatic impact, and prepare the climate as necessary. A

specific sub-strategy should conceivably be designed solely with emotional or climate goals.

The strategic value of having a particular type of climate for the organisation in question may

range from reducing turnover and absenteeism to enhancing organisational learning.

Strategic climate planning and alignment (the subject of current research & development

work by the author) therefore refers to an organisational system whereby the strategies that

result from scenario planning are considered in the light of what kind of organisational

climate do we need?' for the various scenarios. The design of organisational climate should

address both external and internal environments. This question about climate then drives a

new round of discussions by a similar spread of stakeholders to plan the climate that should

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suit the scenarios and resultant strategies. Its about learning how to adapt organisation

climate to suit the current business climate. More importantly though, it is about learning how

to create an organisational system that manages organisational climate - so that organisational

climate can easily, quickly and painlessly align with the next business climate.

Climate and strategy

Some people describe organisations in terms of warfare (objectives, goals), and

organisational processes in warlike terminology (strategic planning, tactics). Others, who

don't like the idea of having to go to war every day, prefer other more familial or paternal

analogies.

However, there is no avoiding the existence of competition between and within organisations,

and that humans love competition - judging by the strong support for sporting

activities. Humans also love challenge, judging by the recreational activities we

choose. Interestingly, sporting groups also use the same war-like terminology - strategies and

tactics.

Perhaps, then, we can learn something by looking at military cases. For example, if a group

of men is sent into the bush, what will happen?

Did you just make an assumption? In your mind's eye were they fully trained military

combat personnel on a mission.

In fact, based on information you were given (a group of men is sent into the bush), not much

of any value will happen. Outcomes might improve if they have goals - at least they will

know why they are going. If they also have a plan, then it is more likely that the desired

15
outcome will be delivered. It is even better if it is a strategic plan, with matching tactics and

appropriate skills and abilities.

Stratagem: artifice, trick(ery), device(s) for deceiving enemy.

Strategic: Of, dictated by, serving the ends of, strategy; designed to disorganise the

enemy's internal economy & to destroy morale.

Strategy: Generalship, the art of war; management of an army in a campaign, art of so

moving or disposing of troops, ships or aircraft as to impose upon the enemy the place

& time & conditions for fighting preferred by oneself.

Tactical: adroitly planning or planned in support of strategic operations.

Tactics: art if disposing forces in actual contact with enemy, procedure calculated to

gain some end, skilful device(s).

Let's examine this more closely. Consider two combat groups about to be sent into an

aggressively hostile zone. One group is poorly trained, poorly prepared, and has vague

goals. The other fully trained elite group has goals, objectives, strategies, contingencies and

tactics all worked out.

What will the climate be like within each group?

Which group would you rather belong to?

How does fear influence motivation?

What about skills, and the clarity of how skills (group capability) match task (required

capability)?

One can understand fear in a military engagement.

What has been learned here about climate?

What could the army do to create the most beneficial group climate?

15
If climate is about my perception - the way I feel about being here, what is felt at the

indicidual level? To help explore this, consider two individuals in three situations. First they

are combatants in national championships for martial arts, with high chance of pain or injury,

but each looking forward to the experience - nervous, some fear, but wouldn't miss it. Now

they're together and facing a mountain. Person A sees all the places you can fall from. Person

B sees all the handholds and footholds and assesses the various tracks for reaching the

top. Now, put them on the beach looking at white-caps and rough water with high

wind. Person A grins while preparing the windsurfer, and B can't imagine anything more

frightening. The different approaches to situations may be due to skills and abilities, and also

due in some way to a personal characteristic to see the challenge and excitement rather than

the danger and fear. Increasing stimulus increases excitement - to a point - then it becomes

increasing stress. A little bit of fear can be exhilarating. But there is a point beyond which the

challenge is terrifying, and that point varies between individuals, and between situations. The

fact that someone may have a low fear threshold for X does not mean a low threshold for Y.

However, you can hardly have a one-person climate. But imagine a group of A's versus a

group of B's at the mountain - then you have group climates. It also suggests how any one

person contributes to group climate. The B people do not want any A's spoiling their group

atmosphere, and vice versa. In other words, climate is of interest at personal, group, and

organisational levels-

So climate is personal, and personal behaviours influence it, just as climate influences

personal behaviour. It's a strong two-way relationship. So let's apply this to organisations and

continue with the component - fear.

15
We don't often think about fear as an issue in organisations, yet climate instruments

consistently detect fear, or variables related to fear, among respondents. There are many

things to fear in an organisation. Ask.

Assuming there is fear, what does that do for the climate?

How does that climate impact motivation?

What will that do to efforts by members to deliver high performance aimed at

corporate goals and strategies?

We have already suggested the importance to climate of having clear strategies, so are there

clear goals and strategies in your organisation?

By contrast, what chance for success is there for the organisation with opaque goals and a

climate of fear or uncertainty?

So let's assume that your organisation has clear goals and strategies. What happens now?

If the organisation just rambles on as always, reactive and putting out fires while responding

to ideas and whims, then having goals and strategies means nothing, and the climate will be

one of confusion and lack of commitment. How can any member commit to an organisation

that either doesn't know where it is going, or doesnt follow its own map?

In having goals and strategies, it is as important to stop doing non-strategic acts as it is to

start doing strategic ones. Too often, organisations spend resources on a project that was

someone's idea, but it was never properly assessed for its strategic relevance, risks, or

opportunity costs of time consumed. The people on that project know they are working on

something that is merely a pet issue, and not really important in the scheme of things. How

do they feel? What are they learning about the organisation? How important a contribution do

15
they feel they make? Do they feel good at the end of the day? What sort of climate are they

feeling?

Ideally, the organisation has a hierarchy of projects, all properly assessed for strategic

importance and proportional resource demand. Assuming the organisation can do only so

much, what are the criteria for starting or stopping a project? What provisions are there for

compensating the greater psychological difficulty we have to exit a project than to start

one? How does the organisation deal with the many vested but unimportant interests when

egos become more important than the organisation's goals? From those questions:

How can an organisation protect people from feeling devalued - because they know

they are wasting time on an unimportant project?

How can an organisation stop a project, while protecting the ego of those whose

future ideas may be withheld if they are psychologically hurt as ideas fail to perform

well enough or lose relevancy?

These are climate issues because they impact climate.

What is the policy for outsourcing, and what internal resources are needed to

administer any outsourced activity? This is another climate issue.

Clear procedures help clarify climate variables. Unclear procedures introduce climate 'noise' -

climate movements with unclear origins, and variations between silos that interpret policies

differently.

In other words - strategy and climate interconnect strongly.

15
CLIMATE DIMENSIONS OF A MANUFACTURING COMPANY-A CASE STUDY

Universiti Kebangsaan Malaysia RAJA AZIMAH RAJA OMAR AINUDDIN, JUNE POON

MEAW LING

ABSTRACT

The objective of this study was to determine the variables that constitute the organizational

climate construct of a large manufacturing company in ShahAlam. Data were obtained from a

pilot study on organizational climate, motivation, job performance, and job satisfaction.

Using the facto analysis procedure, nine climate dimensions were obtained namely, risk and

conflict, reward, autonomy, identity, cooperation, support, rules orientation, clarity of

structure, and performance standards.Identification of these climate dimension will enable

further studies on the relationships between organizational climate and motivation, job

performance, and job satisfaction.

INTRODUCTION

Organizational climate is a concept in organizational behavior that has generated much

interest

as well as controversy among researchers. Despite the controversy, there is a widespread

agreement that organizations should strive hard to establish the right climate to achieve

organizational effectiveness. Toward that end, organizations must first determine what are

the variables that constitute the climate construct. It is therefore the purpose of this study to

identify the climate dimensions of a large manufacturing company in Malaysia. Further

research related to the climate of manufacturing companies car utilize these dimensions to

15
determine the type of climate: either authoritarian, affiliative, achievement-oriented or

employee-centered. Relationships between climate and organizational effectiveness can also

be examined to determine whether the existing climate is conducive to jot performance, job

satisfaction, and employee motivation. Studies by Litwin and Stringer (1968), Pritchard and

Karasick (1973), Lawler, Hall and Oldham (1974), Downey, Hellriegel and Slocum (1975),

and Muchinsky

(1977) clearly indicate that organizational climate is related to measures of organizational

effectiveness such as job performance and satisfaction.

LITERATURE REVIEW

The term organizational climate has been defined in many ways. Forehand and Gilmer (1964)

refer climate as a set of characteristics that (i) describe and distinguish an organization from

other organizations, (ii) are relatively enduring over time, and (iii) influence the behavior of

people in the organization. Litwin and Stringer (1968), on the other hand, view climate as a

set of measurable properties of the work environment perceived by the people in it, and is

therefore assumed to influence behavior.

In a synthesis of various definitions, Pritchard and Karasick (1973) define climate as (i) a

relatively enduring quality of an organization's internal environment which distinguishes it

from other organizations, (ii) which results from the behavior and policies of members of the

organization, (iii) is perceived by members of the organization, and (iv) acts as a source of

pressure for directing activity. Steers (1977), in his study on organizational effectiveness,

refers organizational climate as the perceived properties or characteristics found in the work

environment that result largely from actions taken consciously or unconsciously by an

organization and that presumably affect subsequent behavior. Since organizational climate

15
deals with inter-perceptions of employees toward their own organization, different

organizations with different practices and procedures will therefore have different climate

construct.

There is a general disagreement among researchers on what actually constitutes the climate

construct. Litwin and Stringer (1968) identified nine a priori climate dimensions (structure,

responsibility, reward, risk, warmth, support, standards, conflict, and identity). Using the

climate questionnaire developed by Litwin and Stringer based on these nine a priori scales,

LaFollete and Sims (1975) identified six factors or dimensions that constitute climate,

namely, affective tone toward people, affective tone toward management, policy and

promotion clarity, job pressure and standards, openness of upward communication, and risk

in decision making. Muchinsky (1976) who used a similar climate questionnaire also

identified six factors which he called interpersonal milieu, standards, general effective tone

toward management, organizational structure and procedure, responsibility, and

organizational identification. Other attempts to generate climate constructs including those of

Payne and Pheysey (1971), Pritchard and Karasick (1973), and Joyce and Slocum (1984)

yielded two, eleven and six climate factors respectively.

Although there was a diversity in the number of climate dimensions, Campbell, Dunnette,

Lawler and Weick (1970) identified four factors that appeared to be common to most climate

studies. The factors were individual autonomy, degree of structure imposed upon the position,

reward orientation, and consideration, warmth and support. While some factors seem to be

common across those climate studies, some factors appear to be specific to certain studies

only, and others tend to have fuzzy inter-study relationships (Muchinsky 1976).

15
It is also difficult to identify several core dimensions relevant to heterogeneous organization

because of the diversity of environments that have been studied (for example business

organizations R&D laboratories, elementary schools, and government agencies).

Furthermore, as noted by Sims and LaFollette (1975) and concurred by Muchinsky (1976),

current climate questionnaires are a long way from manifesting consistent reliability and

validity as found in the Job Descriptive Index. In view of this, Muchinsky (1976) suggested

that factor analysis of a

climate questionnaire be routinely employed to determine the climate construct, particularly

for

organizations that have no been examined before. Using a modified version of the Litwin and

Stringer's climate questionnaire the present study attempts to establish the climate dimensions

of a manufacturing company.

METHOD

Sample

The respondents in this study were 74 employees of a large manufacturing company located

in Shah Alam. Seventy-six percent of the respondents were production operators while the

rest were assistant managers (12%), support personnel (8%), and team leaders (4%). All of

them had at least a secondary school education and 92% of them were between 20 to 30 years

of age. About 70% of them have been with the company for 2 to 3 years drawing a median

salary of $478 per month. The data collected in this study were actually part of a university

sponsored research project on organizational climate, motivation, job satisfaction, and job

performance.

Procedure

15
The respondents were assembled in a training room made available by the organization. They

were informed of the nature and purpose of the study, the general background of the research,

and the confidentiality of their responses.

Each respondent was requested to complete a 247-item questionnaire, of which, 31 were

modified items of the Litwin and Stringer questionnaire (Form B) employed to measure

climate. Very slight modifications were made on the climate questions to fit the company's

environment. A 3-point Likert type scale ranging from "disagree" to "agree" was utilized. The

questionnaire required approximately an hour to complete.

Analysis

The subscription FACTOR from the Statistical Package for the Social Sciences (SPSS) (Nie,

Bent, and Hull 1970 was used to identify the factor structure which was most representative

of the data from the organizational climate questionnaire. Identical statistical analyses were

also employed by LaFollette and Sims (1975) and Muchinsky (1976). The 31 items that

measure climate were factor analysed via principal component analysis and only components

with eigenvalues 1.0 or greater were retained to be rotated by the varimax procedure.

Resultant factors with high loadings were then submitted to reliability examinations using the

SPSS subprogram

RELIABILITY. For items under each resultant factor category, a distribution of responses by

scale of agreement were also generated.

RESULTS AND DISCUSSION

15
After examining the resultant factor structures, it was determined that the factors which best

represented the data from the questionnaire were that of the nine factor varimax rotation as

shown in Table 1. The nine climate factors together accounted for more than 74% of the total

variance. Items representing each factor was selected by retaining only those with a loading

of .40 or more on that particular factor and low loadings on all other factors. The resulting

climate factors from this study are:

Factor l: Risk and Conflict.

This factor refers to the employees' perceptions with regard to the company's emphasis on

risk-taking or risk avoidance, and the emphasis placed on encouraging differing opinions

from employees. It also indicates the employees' perceptions on management's outlook on

open arguments and disagreements.

Factor II: Reward.

This factor identifies the employees' feeling of being adequately and fairly rewarded. This

includes pay comparisons among peers and with employees of companies within the same

industry, employees' benefits, and recognition provided by the company.

Factor III: Autonomy.

This factor identifies the employees' feeling toward management's attitude related to

employees'

participation in making decisions pertaining to work objectives, procedures and standards.

Factor IV: Identity

15
This is an indicator related to the employees' feeling of pride and loyalty toward the company.

It

includes their perceptions on the company's interest on employees' welfare.

Factor V: Cooperation.

This factor describes the feeling that organization members work together as a team.

Specifically, it refers to the extent of cooperation among employees and cooperation between

employees and their superiors.

Factor VI: Support.

This factor identifies the perceived degree of helpfulness of supervisors and peers in job-

related

matters. It also refers to the perceived level of performance standards set by the company.

Low

performance standards can be inferred as an indication of support and vice-versa. Factor Vll:

Rules Orientation.

This factor refers to the extent to which employees perceived the emphasis placed by

management on formal rules, regulations, and red tape.

Factor VIII: Clarity of Structure.

This factor identifies the degree to which employees perceive that company policies and

responsibilities are well-defined by management. It also indicates the employees'

understanding toward the formal structure of the company.

Factor IX: Performance Standards.

This factor refers to the perceived goal difficulty and pressure for performance, that is, the

15
importance of doing a good job.

Table 2 gives the internal consistency reliabilities (Spearman-Brown estimates) of the climate

factors. The reliabilities, which range from 0.53 to 0.91, are considered sufficient for an

exploratory research of this nature (Guilford 1954).

Percentage distributions of responses by scale of agreement for items under each climate

factor are given in Table 3. The general perception of the employees on risk and conflict was

that management was seen to be a risk-taker and encouraged differing opinions from

employees. This was evidenced from the distribution of responses which indicated that more

than 50% of the employees perceived that open arguments and disagreements were

acceptable by management.

In relation to risk-taking and risk-avoidance, about 82% of the employees perceived that they

were given the full responsibility to do their work well and about 57% of them also perceived

that they were allowed to set their own standards of performance. About 63% of the

employees believed that the company was willing to take risks in order to be ahead of the

competition. However, more than 83% of them indicated that they were inclined to perceive

that management were rather cautious in making decisions.

On reward, it is apparent that the employees were not happy with the amount of pay they

received. Distribution of responses (refer Table 3) indicated that more than 50% of the

employees perceived that they were not fairly rewarded, not only when compared with

employees from other companies, but also among fellow-workers doing the same job. On the

contrary, more than 53% of the employees were inclined to perceive that employee benefits

provided by the company was good compared to other companies and more than 68% were

15
inclined to believe that the company gave enough recognition to those who did their work

well.

Related to autonomy, Table 3 indicated that more than 50% of the employees perceived that

job

objectives and the various tasks associated in achieving the objectives were determined solely

by management. Apparently, the employees perceived that they do not have autonomy in goal

set ting and in determining the appropriate task. This could be because the production process

in the company under study was mostly automated. However, a total of 55% of the

employees were inclined to perceive that they could set their own production standards.

In relation to identity, the distribution of responses showed that the majority of the employees

were inclined toward associating themselves with the company, as shown in Table 3. They

indicated the feeling of loyalty and pride of belonging to the company. Only less than 21%

perceived otherwise. They also perceived that the company cared about the employees and

that they could seek assistance from their superiors when they were on a difficult task. Only

about 35% of them perceived that the company did not care about the employees and only

6.8% perceived that they could not get assistance from their superiors .

With regard to cooperation, a majority of the employees (refer Table 3) perceived that

cooperation prevailed in the company; there was cooperation among employees, and between

employees and their superiors. Only less than 12% of the responses indicated that such

cooperation did not exist. On the support factor, only less than 3% of the employees believed

that they could not seek assistance and support from co-workers when they were on a difficult

assignment (see Table 3). However, more than 80% of them were inclined to believed that the

performance standards set by the company were rather high. Although the employees might

15
perceive that the company was not supportive, they believed that they could always count on

their co-workers for assistance and support to enable them to achieve the high standards.

As shown in Table 3, the distribution of responses indicated that only 11% of the employees

perceived that management did not place heavy emphasis on formal rules and regulations. In

fact, a majority of the employees (about 73%) perceived that the company had too many rules

and regulations imposed on them. From the clarity of structure factor, it is quite, apparent that

the employees were not very clear on the formal authority of the company. As indicated in

Table 3, the distribution of responses revealed that more than 46% of the employees

perceived that they were clear on their company's policies while only 38% indicated that they

were clear on who had the formal authority in decision making.

Related to performance standards, the distribution of responses (refer Table 3) indicated that

more than 60% of the employees perceived that they were required to achieve goals set by the

company, which they considered realistic and achievable. However, they also felt that in

order to achieve the set goals, their maximum effort would be required.

CONCLUSION

This study has focused mainly upon the dimensions of organizational climate of a

manufacturing company whereby nine variables were identified to constitute the climate

construct. The variables were risk and conflict, reward, autonomy, identity, cooperation,

support, rules orientation, clarity of structure, and performance standards. Since the climate

dimensions of this study were obtained based on employees' perceptions in a particular

manufacturing company, generalizations of results of this study or other manufacturing

companies must be made with caution. Not only was the study based on employees'

15
subjective beliefs that may differ from objective reality but the analysis was made on a

limited sample of employees at the company.

In spite of these limitations, some noteworthy findings for further research, particularly on

organizational climate were obtained. Based on the climate dimensions identified in the

study, further analysis can be undertaken to determine the type of climate that prevails in the

company. The effect of the existing climate on organizational effectiveness such as job

performance, job satisfaction, and employee motivation can also be examined. Consequently,

appropriate measures can be undertaken to improve certain aspects of the climate dimensions

if the present climate is found to be not conducive to organizational effectiveness.

The present study also revealed that the employees perceived unfavorably the company's

reward system and rules orientation. Apparently, the employees perceived that they were not

adequately and fairly rewarded compared to employee's of other companies in the same

industry, that there was major emphasis on rules and regulations, and that there were too

many of such rules and regulations in the company. Perhaps the company could reflect on its

current rules orientation and reward system in order to detect any discrepancies that could

lead to employee dissatis

APPENDIX The 31-item Measure of Organizational Climate

Items Number Items

1. I am given full responsibility to do my work well

2. Management is always cautious in making any decision

3. Employees here are encouraged to speak their minds even if it means disagreeing with

their

15
 superiors

4. Management prefers to be cautious so as to be safe

5. This company is willing to take some risks to keep ahead of the competition

6. The best way to make a good impression around here is to steer clear of open arguments

and

disagreements

7.I am allowed to set my own performance standards

8. My boss lets me make my own decisions regarding my work

9. My pay is fair compared to fellow workers doing the same job

10. The pay here is higher than in other companies

11. My pay is fair compared to what other companies are paying for the same job

12. Compared to other companies, employee benefits here are good

13. This company gives enough recognition to those who do their work well

14. There is a lot of warmth in the relationship between management and workers

15. Our job objectives are set by management

16. All our tasks are set by management

17. Employees have set their own production standards

18. Employees here are loyal to the company

19. I am proud of belonging to this company

20. This company is really interested in the welfare of its employees

21. When I am on a difficult assignment I can usually count on getting assistance from my

boss

22. There is cooperation among employees here

23. There is cooperation between employees and their superiors

24. When I am on a difficult assignment I can usually count on getting assistance from my

15
 co-workers

25. This company sets high performance standards

26. Formal rules and regulations are given a lot of emphasis by top management

27. This company has too many rules and regulations that have to be followed

28. I am unclear as to who has the formal authority to make a decision

29. I am clear as to the policies of the company

30. The goals I am supposed to achieve are realistic and achievable

31. Employees here are required to put in their maximum effort.

Organizational Climate of Staff Working Conditions and SafetyAn Integrative Model

Patricia W. Stone, Michael I. Harrison, Penny Feldman, Mark Linzer, Timothy Peng,

Douglas Roblin, Jill Scott-Cawiezell, Nicholas Warren, and Eric S. Williams.

Abstract

15
Objectives: This project sought to compare measures of organizational climate in ongoing

patient safety studies, identify similarities and setting-specific dimensions, develop a model

of climate domains that are hypothesized to affect outcomes across settings, and test aspects

of the model. Methods: Investigators who had surveyed health care workers' perceptions of

organizational climate in six studies funded by the Agency for Healthcare Research and

Quality (AHRQ) were invited to participate. Survey items from each study were classified

using four climate domains found in a prior literature review. The authors discussed

subconstructs, proposed additional constructs, developed an integrative model, and

independently tested selected aspects of the model. Results: The investigators who

participated had studied acute care, home health care, long-term care, and multiple settings;

two investigators had studied primary care. More than 80,000 workers were surveyed. The

model's core climate domains included leadership (e.g., values) and organizational structural

characteristics (e.g., communication processes and information technology), the impact of

which was mediated by four process variables: supervision, group behavior (e.g.,

collaboration), quality emphasis (e.g., patient centeredness), and work design (e.g., staffing).

These factors affect health care worker outcomes (e.g., satisfaction and intention to leave)

and patient outcomes. Overall, the full model explained 24 to 65 percent of the variance in

employee satisfaction, but was not as effective at predicting intention to leave. Conclusions:

While some of these domains appeared in prior models, new domainsquality emphasis,

new subconstructs, information technology, and patient centerednessare emerging. Our

model invites dialogue among researchers and informs agenda-setting for future research into

organizational climate and the safety of patients and health care employees. This integrative

model will facilitate cross-study quantification of associations among variables in these

important domains.

Introduction

15
Three recent reports by the Institute of Medicine (IOM) identified major safety and quality

problems in American health care and drew attention to system-level sources of these

problems. 1 3 As the authors of Crossing the Quality Chasm stated, Threats to patient

safety are the end result of complex causes ... The way to improve safety is to learn about

causes of error and use this knowledge to design systems of care so as to ... make errors less

common and less harmful when they do occur. 2 As a result, researchers, policymakers, and

health care providers have intensified their efforts to understand and change organizational

conditions, components, and processes of health care systems as they relate to safety.

Research studies in health care, along with findings from other industries, point to a wide

range of organizational conditions and work processes that may shape the performance of

health care practitioners and provider organizations. 4 10 Despite the difficulty in

implementing far-reaching organizational change, some health providers have succeeded in

restructuring their organizations in ways that promote quality health care. 11 14 Within this

growing body of evidence, researchers have sought to understand the influence of

organizational culture and climate on health care quality.

Organizational climate refers to member perceptions of organizational features like

decisionmaking, leadership, and norms about work. Organizational culture refers more

broadly to the norms, values, beliefs, and assumptions shared by members of an organization

or a distinctive subculture within an organization. 15, 16 In the past two decades, many

studies of organizational culture have used standardized questionnaires and cultural

inventories, which rely on members' perceptions and reports of cultural features. 17 19

Some of these standardized culture inventories are quite close to the instruments originally

developed for climate studies. Moreover, researchers have sometimes used the terms

culture and climate interchangeably.

15
Gradually, evidence is accumulating that links culture and climate to behavior, attitudes, and

motivations among clinicians. These behaviors and orientations can, in turn, affect quality

processes and outcomes. Many studies outside of health care settings and a growing number

of studies in health care, show that employees have more job satisfaction and experience less

stress and burnout when they work in cultures and climates that have supportive and

empowering leadership and organizational arrangements, along with positive group

environments (often reflecting elements of group support, collaboration, and consensus). 20

24 Furthermore, employee satisfaction and commitment have repeatedly been found to

reduce absenteeism and turnover intentions. 20, 24 26 These findings contain important

implications for health care management. For example, nursing staffs are more likely to be

satisfied, committed, and stable in health care organizations that support and empower nurses.

1 A more satisfied and stable nursing staff may more readily contribute to patient satisfaction,

help reduce errors, and assist in the implementation of other steps toward improving health

care quality. 21, 27 Studies outside health care also link satisfaction and commitment to

individual performance and other forms of organizationally constructive behavior. 23, 24

A smaller group of studies explores direct links between culture or climate and behaviors or

outcomes that are related to quality. The dependent variables in these studies include

employee absenteeism, implementation of evidence-based care management practices, patient

satisfaction, and performance. 28 31 However, solid evidence showing direct impacts of

organizational culture or climate on clinical and system outcomes is sparse. 33 Important

exceptions include findings of a positive association between a teamwork-oriented culture

and patient satisfaction in Veterans Health Administration hospitals. 30 Moreover, Clark et al,

report that hospital nurses from units with low staffing and poor organizational climates (in

15
terms of resources and leadership) were twice as likely as nurses on well-staffed and better-

organized units to report risk factors, needlestick injuries, and near misses. 33 In instances

where culture and climate do not independently predict clinical and organizational outcomes,

they may still act as important mediating or contextual factors. 29, 34, 35 For example, in

Canadian long-term care facilities, a culture that supports organizational learning and

employee development was found to be a necessary condition for quality improvement

programs to achieve their organizational objectives. 27

Quantitative studies of organizational culture, such as those reported above, often have drawn

on either typological or dimensional models. 19 Typological models seek to classify entire

organizational cultures in terms of a dominant value or normative orientation. For example,

the competing values framework classifies organizations as predominantly oriented toward

internal cohesiveness and human relations development, creativity and innovation, order and

predictability, or competitiveness and goal attainment. 36 Shortell and his colleagues adopted

this model to the cultures of medical organizations by characterizing the respective cultural

types as group, hierarchical, developmental, or rational in their orientations. 29, 32

Typological models assume that entire cultures can be characterized in terms of an

overarching substantive theme. In contrast, dimensional models, including some derived from

the competing values framework, allow for the possibility of internal variations along

separate, conceptually defined orientations. 37 For example, Kralewski, Wingert and

Barbouche developed an instrument for assessing emphasis by members of medical group

practices on each of nine dimensionsinnovativeness, group solidarity, cost-effectiveness

orientation, organizational formality, method of cost control, centralization of

decisionmaking, entrepreneurism, physician individuality, and visibility of costs. 38

15
Unfortunately, lack of consensus on the key dimensions and subconstructs for assessing

culture and climate has slowed the accumulation of evidence about how norms, values, and

perceptions affect patient safety and other aspects of quality of care. Investigators in and out

of health care have used a very wide variety of definitions, concepts, measures, and methods

to study culture and climate. 17, 24, 31, 39 41 Although this broad mix of measures and

definitions reflects the complexity of the phenomena under study, lack of definitional and

methodological consistency makes it hard to generalize across studies and develop evidence-

based implications for practice.

This paper reports an effort to help bring order and consistency to this line of research. In it

we develop and test a model of organizational climate in health care across diverse delivery

settings. We focus on organizational climate for a number of reasons. First, organizational

climate features may be more amenable to change than deep-rooted cultural assumptions and

values. Second, the focus on organizational climate, rather than culture, may provide for a

better logical fit between concepts and questionnaire measures than sometimes occurs in

quantitative culture inventories; it seems quite logical that members of an organization will be

aware of their perceptions of organizational conditions (climate) and will be able to report

these perceptions accurately in closed-ended questions. In contrast, members are less likely to

be fully cognizant of shared norms, values, and basic assumptions, and may face difficulties

in characterizing such complex phenomena in their responses to fixed-choice questions. 42

44 Lastly, we focus on facets of organizational climate that are particularly relevant to care

providers, health managers, and decision makers.

This project resulted from an initiative by the Agency for Healthcare Research and Quality

(AHRQ) targeting the health care workforce and patient safety (RFA HS01-005). AHRQ

sponsored a number of working groups, one of which focused on working conditions and

15
organizational climate. This working group held a number of conference calls over a 3-year

period to discuss issues developing at AHRQ, provide an open exchange of ideas regarding

the measurement of organizational climate across health care settings and its relationship to

patient safety, and develop synergy among grantees. Investigators involved in this forum

were invited to participate in this project if they were part of a study team that had surveyed

health care worker perceptions of organizational climate. Based on a prior literature review

and input from the various investigators, the group discussed conceptual domains and

subconstructs of organizational climate related to perceived working conditions and its

relationship to health care worker safety and patient safety. 18 An integrative conceptual

model of organizational climate was developed by seeking consensus among participants

about empirically and theoretically important constructs.

The integrative model

The integrative model is presented in Figure 1. The model's core climate domains include

leadership and organizational structural characteristics. Subconstructs of leadership include

organizational values, as well as style and strategies used by top management. The

subconstructs associated with organizational structural characteristics include formal

communication processes, governance structures, and information technology infrastructure.

The direct impact of these variables on patient and health care worker outcomes is mediated

by four process domains: (1) supervision, (2) group behavior, (3) quality emphasis, and (4)

work design. This model distinguishes between leadership and supervision. Supervision

refers to the direct managers' style or the recognition an employee receives on a daily basis.

Work design includes five subconstructs: (1) manageable workload, (2) resources and

training, (3) rewards (defined as monetary compensation such as salary and bonuses), (4)

autonomy, and (5) employee safety. Group behavior includes two subconstructs

15
collaboration and consensus (the latter including items such as there is general agreement on

treatment methods). Subconstructs associated with quality emphasis include patient

centeredness, patient safety, innovation, outcome measurement, and evidence-based practice.

The four process domains influence worker outcomes and patient outcomes. Finally, worker

outcomes are expected to impact upon patient outcomes.

Figure 1. An integrative model of health care working conditions on organizational climate

and safety.

An integrative model of health care working conditions on organizational climate and safety.

Methods of validating the model

Although each research team initially conceptualized key relationships among organizational

elements and performance differently, all participating investigative teams sought to

understand essential elements of climate. Therefore, each investigator provided the health

care worker survey items currently being used in their separate ongoing research projects. An

item-by-item analysis of all surveys was conducted by two of the authors (PS and MH). In

this process, the original climate scales were decomposed, and each item was theoretically

classified using the developed integrative model into the best-fitting domain and/or

subconstruct in the integrative model. For example, items classified as measuring supervision

style include I feel that I am supervised more closely than is necessary, and a supervisory

staff that is supportive of nurses. A copy of all final scales is available from the

corresponding author.

Reliability statistics (Cronbach's alpha) of scales were examined and items were dropped as

necessary to develop the most stable measures possible of the theoretical concepts. Scales

that were unstable were dropped from further model testing. All projects were tested for

15
multicollinearity among scales using pairwise Pearson correlation between scales. Four of the

studies found no correlations that exceeded a cutoff limit of r 0.60. Two research teams

found a correlation over 0.60, and each eliminated one of the pair on this basis. Additionally,

one study examined the collinearity diagnostics included in Statistical Package for the Social

Sciences (SPSS) 11.5 and found levels of collinearity high enough to affect the models. One

scale, with the highest variance inflation factor (VIF), was eliminated before the final

modeling steps. Final models for all studies were thus free of collinearity levels that would

affect model stability.

Because the participating investigators were supplying data from ongoing, AHRQ-funded

patient safety projects, many of the investigators were still in the process of data collection.

Therefore, data on the primary outcome of patient safety were often not available. Instead,

the group members decided to validate the model using the most common health care worker

outcomes found across studies, which were employee satisfaction and intention to leave.

To test different aspects of the model, each investigative team conducted a series of similar

analyses. First, linear regressions were conducted to investigate the relationship among the

core climate subconstructs of leadership and organizational structural characteristics. Second,

to understand the relationship among the core climate domains and the four process domains

supervision, group behavior, quality emphasis, and work designlinear regressions were

conducted using the core domains as the predictor variables and the process domains as the

dependent variables. Third, linear regressions were conducted using core domains as the

independent variables and health care worker outcome measures as the dependent variables.

Finally, investigators tested the independent effects of each process subconstruct on health

care worker outcomes, controlling for the core domains using multivariate stepwise

regressions. In these models, the core climate subconstructs associated with leadership and

15
organizational structural characteristics were entered as the first block of independent

variables. Then, the subconstructs associated with the four process domains (supervision,

group behavior, quality emphasis, and work design) were entered as a second block of

independent variables. When investigators found that employee demographics predicted these

outcomes, the demographic variables were statistically controlled for. It was hypothesized

that the independent variables would be positively related to satisfaction and negatively

related to intention to leave.

There was slight necessary variation in the means used by the investigative teams to conduct

their regressions, due to the nature of secondary data analysis. Most investigative teams used

the subconstructs described as the independent variables. However, one investigative team

combined the subconstructs into overall organizational climate domains. In another study,

intention to leave was measured as a dichotomous variable, and therefore, a logistic

regression was conducted in a fashion similar to that of the linear regressions.

Results

Demographics of participating studies

The six participating investigative teams represent individual studies conducted across the

nation in the following health care settings: acute care (n = 1), home health care (n = 1), long-

term care (n = 1), primary care settings (n = 2), and multiple settings (n = 1). More than

80,000 health care workers were surveyed in these projects, and employee demographics

surveyed by each investigative team are described in Table 1. Diverse job categories ranging

from certified nursing assistants to hospital administrators and medical assistants to primary

care providers are represented, with the largest sample associated with a multisite study

15
conducted through the Veterans Health Administration. The surveys used by each

investigative team vary.

Description of samples and surveys from each independent project.

Results of empirical testing of the model

The number of applicable items per domain and the reliability of the newly developed scales

from each study are reported in Table 2. All investigative teams, except that involved with

Study 2, were able to develop relatively stable scales at the subconstruct level. All studies,

except that involved with Study 3, had some type of measure related to the core

organizational climate domains. The information technology subconstruct was not

represented by an independent measure in any investigation; however, related items were

found in Study 2's organizational structural characteristic scale. Processes related to direct

supervision were measured in four of the studies; however, Study 5 had only one item in this

category. All studies had some measure of work design, with resources and/or training being

the most commonly measured subconstruct. All studies had some measure of group behavior,

and most measured collaboration (five out of six studies). Study 5, which was conducted in a

long-term care setting, had four separate stable scales of collaboration. Most studies (four of

six) had stable measures of quality emphasis, while Study 5 had a single-item measure.

Employee satisfaction and intention to leave were commonly measured across studies. Study

6 had a single item related to satisfaction, while the other five studies had multi-item scales

available to measure employee satisfaction. Also in Study 6, the measure of intention to leave

was dichotomous, compared to the other four studies, which had one-item, continuous-level

variables.

Reliability of measures.

15
As predicted, the regression analyses within the separate studies showed there was a strong

relationship among the core climate subconstructs of leadership and organizational structural

characteristics. This analysis was not applicable to Study 3, due to the lack of measurement of

core domains. In the other five studies, the leadership domain or one of its subconstructs

significantly (P 0.05) predicted measures of organizational structural characteristics; the

variance explained ranged from 24 to 54 percent. The two core domains also significantly

predicted to constructs within the four process domains. Although the number of process

variables varied among the studies, in nearly every case the core domains or their

subconstructs had statistically significant predictions of the process variables. The core

domains also had strong direct effects on the outcome variables. Twenty to 34 percent of the

variance in employee satisfaction and 8 to 10 percent of the variance in intention to leave was

explained by the core domains.

Five of the investigative teams were able to conduct the multivariate stepwise regressions

predicting satisfaction (Table 3). Many of the core organizational climate domains or

subconstructs (five of eight) continued to have statistically significant (P < 0.05) independent

effects on satisfaction. In addition, most of the process domains or subconstructs (25 of 30)

had significant independent effects on satisfaction. Overall, the full model explained 24 to 65

percent of the variance in employee satisfaction.

Results of multivariate regressions predicting employee satisfaction.

Results from the multivariate stepwise regressions predicting intention to leave are displayed

in Table 4. While the direction of the relationships were as predicted and negative perceptions

of organizational climate predicted intention to leave, only three of the six leadership items

15
had a statistically significant independent effect on intention to leave, and none of the

organizational structural characteristics (n = 5) was an independent significant predictor. Of

the process domains and subconstructs, supervision had the most consistent independent

significant effect on intention to leave. Overall, the model explained 8 to 23 percent of the

variance in intention to leave.

Results of multivariate regressions with intention to leave as dependent variable.

Discussion

This paper presents a model of organizational climate, which encompasses variables and

concepts found in six independent studies. These studies were conducted across a broad range

of settings and surveyed a wide range of health care workers. We present a preliminary

empirical validation of the model by reporting conceptually plausible associations among the

model's domains and showing that variables from these domains predict employee

satisfaction and turnover intention in ways that are consistent with previous research. Across

studies, similar patterns of relationships were found. Moreover, the full model was a better

predictor of the outcome variables than were the elements within the model.

As might have been anticipated from the literature, the climate measures predicted

satisfaction more strongly and more consistently than they predicted turnover intention.

Turnover intentions are subject to many influences exogenous to the realm of climate, such as

labor market conditions, assessments of employability, family status, and career stage. 45

The most important contribution of this study is its climate domains and subconstructs, which

can provide the basis for future studies in health care settings. The use of this model in future

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research will promote consistency across settings and studies, thereby facilitating an

accumulation of research findings and evidence-based recommendations. Further

development of operational definitions and generalizable measures applicable to the model is

warranted and invited.

An additional contribution of the model lies in its elaboration of subconstructs within the

domain of organizational structure; these are particularly important for research on patient

safety and health care quality. Information technology, for example, is an increasingly

prominent feature of organizational structure, which holds substantial promise for health

quality. 46 Perceptions of the uses of information technology in health care organizations

may affect the ways that clinicians respond to information technology innovations. 47 Hence,

technology perceptions are likely to mediate between the introduction of information

technologies and their outcomes. Because of its importance, we included the technology

climate in our model, even though it was not well represented in our original research studies.

Our model also calls attention to the importance of the climate for quality, which we labeled

quality emphasis. Our model specifies the climate for quality as including the degree to

which the delivery organization's climate is patient-centered, encourages safety awareness

and practices, fosters innovation, and sustains the use of evidence-based medicine. As other

researchers have suggested, there may be multiple climates within an organization in areas

such as safety, service, or innovation. 35 48 These substantive climates are likely to affect

closely related attitudes and behaviors even more powerfully than abstract climate features

such as cohesion or climate strength. 29 Only 2 of the 13 instruments for assessing culture

and climate cited in a recent review contain measures related to quality climate, and none

refers explicitly to an information technology climate. 19, 49

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Due to divergent climate measures in the six studies reported here, the validity and

generalizability of our findings may be limited. Additionally, although this project is an

exemplar of collaboration and resulting synergy, the separate investigative teams were not yet

ready to pool the data into a single database that would be amenable to analysis through

structural equation modeling. Although we have explored linear relations between climate

and other variables, researchers would be well advised to look closely at nonlinear and

noncausal relations. For example, very negative climates might affect performance, while

other climates do not. In addition, climate may act as a contextual or mediating variable,

rather than a direct cause of important outcomes. Finally, two scales constructed in these

secondary analyses had lower Cronbach's alphas than often considered desirable.

Given the multileveled and multidimensional nature of organizational climate, the search for

a single instrumentor even a single methodologyis not always wise. 19, 44 If an

organization is considering the implementation of a new computerized order entry system, for

example, investigators may need to understand only the employees' perception of information

technology and innovation, not leadership values and styles of supervision. Nonetheless,

some of the measures within our core set of concepts of organizational climate in health care

settings are likely to be applicable to a range of health delivery settings. Moreover, they may

be shown to possess sufficient predictive validity to justify their routine inclusion in

investigations of the causes of outcomes like patient safety.

Implications for policy and practice

Development and validation of a core set of concepts and measures for studying climate in

health care will permit comparisons across delivery settings and facilitate development of

15
evidence-based recommendations about human resource management and organizational

design within health services settings. Databases containing climate measures are already in

use in some systems, like Kaiser Permanente. 50 Moreover, many acute care hospitals are

contributing data to the National Database of Nursing Quality Indicators (NDNQI), which

has adapted measures of nurse perceptions regarding work environment and job satisfaction.

51 Outside of health care, many government agencies use standardized climate assessments

for benchmarking purposes. 52 Adoption of standardized climate tools and the creation of

databases that support analyses at various organizational levels will help health care

managers to better track their organization's progress through time, assess impacts of

organizational and technological changes, and compare the climate in their unit or

organization with those in comparable organizational settings.

It is our hope that the model presented here will encourage researchers to further refine this

core set of concepts and develop standard measures for studying climate in health care as it

relates to safety. Standardization of climate measures will aid in the development of

evidence-based recommendations for health services organization and human resource

management within health delivery settings and perhaps facilitate the ultimate goal of turning

results into evidence-based management practices. The model needs further testing using

patient safety as the primary outcome to aid in this process.

2.1.1. ORGANISATIONAL CLIMATE:

Organisational climate has been defined in three different ways namely (1) as objective

phenomena (2) as a subjective phenomena and (3) as an outcome of person-environment

interaction. However, apart from such difference in definition many other conceptual issues

15
related to the different aspects of the climate concept such as the dimensions, the researchers

raised context, facets, contents and levels. (e.g., Chhokar and Sethumadhavan 1992:

Hellriegel and Slocum 1974: James and Jones 1974: Muchinsky 1976). Georgopovles (1960)

defines, Organisational Climate as a normative structure of attitudes and behavioural

standards which provide a basis for interpreting the situations and act as a source of pressure

for directing activities. Forehand and Gilmer (1964) define Organisational Climate as a set

of characteristics that describe an organisation and that (a) 63 distinguish one from another

(b) are relatively enduring over a period of time and (c) influence the behaviour of people in

the organisation.

Litwin and Stringer (1968) define Organisational Climate as a relatively enduring quality of

the internal environment that is experimental by its members, influence their behaviour and

can be described in terms of the values of a particular set of characteristics of the

organisation.

Taguiri and Litwin (1968) Organisational climate has been defined as the relatively enduring

quality of the internal environment of an organisation that a) Experienced by its members, b)

influences their behavior, and c) can be described in terms of the values of a particular set of

characteristics (or attitudes) of the organisation.

Friedlander and Margulies (1969) define Organisational Climate as a relatively stable or

ongoing property of the organisation which may release, channel, facilitate on constrain on

organisations technical as well as human resources.

Taylor and Bowers (1970) defines Organisational climate as the perceived traits of

organisational stimuli which became a group property through interpersonal interactions and

which modify overt behaviour of people within the organisation

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Cambell (1970) defines Organisational Climate as A set of attributes specific to a particular

organisation that may be induced from the way that the organisation deals with its members

and its environment. For the individual members within the organisation, climate takes the

form of a set of attitudes and expectancies which describe the organisation in terms of both

static characteristics (such as degree of autonomy) and behaviour outcome and outcome

outcome contingencies.

Payne (1971) defines Organisational Climate as a normal concept, reflecting the context and

strength of the prevalent values, norms, attitudes, behaviour and feelings of the members of a

sound system, which can be operationally measured through the perception of system

members or observational and other objective process.

Pritchard and Karasick (1973) defines Organisational Climate as a relatively enduring

quality of an organisation internal environment, distinguishing, it from other organisations

which (a) results form the behaviour and policies of members of the organisation, especially

in top management (b) is perceived by members of the organisation (c) serve as a basis for

interpreting the situation and (d) acts as a source of pressure for directing activity.

Hellriegel and Slocum (1974) define Organisational Climate as a set of attributes which can

be perceived about a particular organization and for its subsystems and which may be

induced from the way that organisation deals with its members. Several themes are implicit in

this definition of organisational climate. (a) Perpetual responses sought are primarily

descriptive rather than evaluation, (b) The level of inclusiveness of the items, scales and

contracts are macro rather than micro, (c) The unit of analysis tends to be attributes of the

organisation rather than individuals, (d) The perception of organisational climate have

potential behavioural consequences.

15
Benjamin Schneider and Rover, A. Snyder (1975) Organisational Climate is the summary

perception, which people have about an organisation. It is thus a global expression of what

the organisation is.

Glick (1985) The psychological climate refers to the beliefs and attitudes held by individuals

about their organisation. The climate is an enduring quality of an organisation that (1) is

experienced by employees, and (2) influences their behavior. It should be thought of and

measured at the organisational level of analysis.

Ekvall (1990) studied that conglomerate of attitudes, feelings and

behaviours that characterise life in an organisation. This definition of organisational climate

is just one of many in the literature. Even if there is some disagreement as to the exact

meaning of the term, most authors seem to assume that the organisational climate is rather

stable over time respect to attitudes and that it affects peoples behaviour.

Koys and DeCotiis (1991) define the psychological climate as an experimental-based,

multidimensional, and enduring perceptional phenomenon, which is widely shared by the

members of a given organisational unit. They state that the psychological climate is the

descriptionand not the evaluationof experience.

Zammutto and Krakower (1991) define climate as part of culture. Culture is made up of:

organisational characteristics, organisational climate and strategy. We use their climate

definition and measures, but not their culture definition. We define climate and culture as

separate concepts.

15
 Moran, E.T. (1992) Organisational climate is a relatively enduring characteristics of an

organisation which distinguishes it from other organisations: (a) and embodies members

collective perceptions about their organisation with respect to such dimensions as autonomy,

trust, cohesiveness, support, recognition, innovation, and fairness: (b) is produced by member

interaction; (c) serves as a basic for interpreting the situation; (d) reflects the prevalent norms,

values and attitudes of the organisations culture; and (e) acts as a source of influence for

shaping behaviour.

Jit Chandan (1998) a persons perception of the organisation to which he belongs is

organisational climate. It is a set of characteristics and other factors that are perceived by the

employees about their organisation, which serve as a major force in influencing their

behaviour.

These factors may include job description, organisational structural format, performance and

evaluation standards, leadership styles, challenges and innovations, organisational values and

culture and so on.

2.1.2.QUALITY OF WORK LIFE:

An international conference was held at Arden house, New York in the year 1972. It dealt in

detail with the practice and theory of the 67 democratization of work place. In this conference

the phrase Quality of Work Life coined by Davis. International council for Quality of work

life was formed to facilitate research and widen the knowledge and action for Quality of

Work Life. The concept of Quality of Work Life has wide variety of conceptual coverage and

became the theme of Work Life 2000 organized by the National Institute for Working Life,

Sweden.

15
Glaser, E.M. (1976) The term Quality of Work Life recently has come to mean than job

security, good working conditions, adequate and fair compensation more than even equal

employment opportunity or job enlargement.

Lloyd Suttle, J. (1977) has defined quality of work life as the degree of which members of a

work organisation are able to satisfy important personal needs through their experiences in

the organisation.

Lippin, G. (1978) Quality of Work Life is a broad concept. It refers to the degree to which

work provides an opportunity for an individual to satisfy a wide variety of personal needs- to

survive with some security, to interact with others, to have a sense of personal usefulness, to

be recognized for achievement, and to have an opportunity to improve ones skill and

knowledge.

Guest, R.G.H. (1979) Quality of Work Life is a generic phrase that covers a persons feeling

about every dimension of work including economic rewards and benefits, security, working

conditions, organisational and interpersonal relationships and its intrinsic meaning in a

persons life.

Cohen, D.S. (1979) Quality of Work Life is a process of joint decision making, collaboration

and building mutual respect between management and employee, which seems to cause a

change in how people feel about labour their work and each other. It is this change in the

human climate that quality advocated, maintains, increases satisfaction and facilitates better

solution to management and production problems.

Nadler, L. (1981) Quality of Work Life is concerned with improving the work place, bringing

humanity into the work situation and creating the environment where people will find work

personally satisfying as well as economically rewarding.

15
Ozley and Ball (1982) Quality of Work Life can be defined effectively as improvements that

enhance the work life of all members of an organisation and that increase the effectiveness of

the organisation.

Nadler and David A.Lawler (1983) provide a concise working definition of QWL as a way

of thinking about people, work and organisations. Its distinctive elements are: (i) a concern

about the impact of work on people as well as on organisational effectiveness; and (ii) the

idea of participation in organisational problem solving and decisionmaking.

Schnake, M.E. (1983) Quality of Work Life improvements are defined as any activity, which

take place at every level of an organisation, which seeks greater organisational effectiveness

through the enhancement of human dignity and growth. A process through which the

stakeholders in the organisation - management, unions and employees learn how to work

together better To determine for themselves what actions, changes and improvements are

desirable and workable in order to achieve the twin and simultaneous goals of an improved

quality of life at work for all members of the organisation and greater effectiveness for both

the company and the unions.

Moskal, B.S. (1989) Quality of Work Life means simply giving workers the opportunity to

make decisions about their jobs, the design of their work place, and what they need best to

make products.

Jain, Sangeta (1991) viewed QWL as consisting of a whole parcel of terms and notions all of

which really belong under the Quality of Working Life Umbrella. They include industrial

effectiveness, human resource development, organisational effectiveness, work restructure,

job enrichment, socio-technical systems, working humanization, group-work concepts, labour

management, co-operation, working together, workers involvement, workers participation

15
and co-operative, working together, workers involvement, workers participation and co-

operative work structures. According to her, QWL is the sum of all these various attempts to

label a general new direction for work organisations in the late 20th century. 70

Eaton, et al (1992) Quality of Work Life is a term that has been used to describe a wide

variety of workplace programmes, which may include union management cooperation, work

organisation or employee involvement.

Bernardin and Russel (1993) Quality of Work Life refers to the level of satisfaction,

motivation, involvement and commitment of individuals experience with respect to their lives

at work. Quality of Work Life is the degree to which individuals are able to satisfy their

important personal needs (e.g. need for independence) while employed of the firm.

Tambe, M.R. (2000) In a broad sense QWL includes job enrichment, group work concept,

labour management cooperation, workers involvement, co-operative work environment and

organisational, industrial effectiveness. In a narrow sense it is a conductive and encouraging

job and physical environment.

RELATED APPROACHES / MODELS:

ORGANISATIONAL CLIMATE:

Organisational Climate is one of the most important concepts to enter in to the theory of

organisations in this century (Guion, 1973). The intensive research as well as debates on its

conceptualization and assessment during the last three and a half decades seems to have

helpful to develop organisational climate as a mature concept in management. The concept

has also proved useful in predicting and explaining a variety of job related behaviours,

attitudes and performance as well as organisational performance on a number of dimensions

15
(Kacka and Kirk, 1968: Lawler et al, 1974). An overview of the history of the organisational

climate research indicated that the concept has evolved through four approaches namely,

1) Structural and objective approach

2) Perceptual and subjective approach

3) Interactionist approach

4) Integrated and refined approach

2.2.1.1. Structural and Objective Approaches:

Due to the influence of sociological theories, many of the organisational researches in the

1940s and 1950s had focused on the structural / sociological aspects (e.g.Fayol, 1940:

Parson, 1956: Weber, 1964) of the organisations. Consequently early researchers defined

organisational climate as a characteristic of the organisations, and directed their measurement

efforts mainly on the physical characteristics of the organisation that people notice or

observe. For example Forehand and Glimmer (1964) define organisational climate as a set of

characteristics relatively enduring over time that describe the organisation and distinguish it

from other organisations, apart form influencing the organisations.

These as well as the other initial climate researchers who adopted a structuralism view have

emphasized the environmental and situational factors than the individual cognition (e.g. Fried

Lander and Margulies, 1969). They in general argued that individuals in any work

environment tend to have homogeneous perceptions of the objective reality. This perspective,

however, failed to satisfactorily explain the wide variations observed in the perceptions of

climate by the individuals working in the same physical environment as well as the

inconsistent relationship between the structural factors and climate perceptions (Berger and

15
Cummings, 1979: Schneider and Reichers, 1983). The structural view also failed to predict

and explain the human behavior satisfactorily in terms of structural variables alone. The

limitations of the structural view seem to have prompted some authors to develop the

perceptual and subjective perspective on organisational climate.

Perceptual and Subjective Approaches:

James and Jones (1974) defined organisational climate a psychological meaningful cognitive

representations of the situations. They defined climate as an attribute of the individual, which

is learned, historical and resistant to change (James and Sell, 1981). Similarly, Schneider

(1975) also defined climate as perceptions or interpretations of meaning which help

individuals to make sense of the world and know how to behave. This view which emphasis

the cognitive representation and perceptions defined climate as largely subjective and

individual attribute. However, these models did not recognize the impact of environmental

factors on behaviour and overlooked the fact that the same person may behave differently in

different environments. The failure to predict and explain human behaviour satisfactorily,

either in terms of structural of environmental variables or in terms of individual attributed

lead to the wide acceptance of the interactionist perspective on climate as propounded by the

Gestalt psychologists (Lewin, 1936) later.

Interactionist Approach:

The historical roots of the concept of organisational climate as it became widely accepted

later during 1980s, remains in the pioneering studies conducted by Kurt Lewin and the

associates in the 1930s. Kurt Lewin proposed that behaviour is a function of the interaction

between person and environment. Lewin 1936 emphasized that the perception and

15
construction of the environment by the individuals will be more powerful predictor of

behaviour than the physical characteristics of the environment

(Lewin 1936). Lewin and his associates also conducted experiments to show the effect of

different leader induced climates namely authoritarian, democratic and laisser-faire on the

behaviour of the followers. (Lewin, Lippit and White, 1939). Owing to the influence of these

pioneering works, more attention was paid to individual perceptions than organisational

characteristics during the 1960s by the organisational climate researchers. Litwin and Stringer

(1968) in their landmark study brought the concept of organisational climate to lime light.

The concept was described as a summary of the environmental determinants of employee

motivation. They predicated that, being an important link between the organisational

environmental and individual motivation, the perceived organisational climate will help

researchers and managers to diagnose the de-motivating factors present in the organisation.

They defined organisational climate as a set of measurable properties of the work

environment, perceived directly or indirectly by the people who live and work in that

environment which influence their motivation and behaviour. As stated by

Scheneider and Hall (1972) this notion of perceived organisational climate represents an

interaction between personal (subjective) and organisational (objective) characteristics. The

definition as well as the instrument for assessing the organisational climate, offered by

Litwin and Stringer (1968) gained wide acceptance among the organisational researchers and

managers later.

Integrated and Refined Approaches:

Currently organisational climate is one of the central constructs in management and is

considered as an important factor in any Human Resource Development (HRD) system as

15
well as decisions on organisational design. Despite the overwhelming impact of Litwin and

Stringers definition and operationalisation of the concept, the researchers have attempted to

develop new approaches to conceptualize and operationalise the concept. The driving needs

behind such innovations were: a) The need to make the concept of climate more relevant to

the specific sample, organisation, context, researchers objective, theoretical frameworks and

so forth. b) The need to make the conceptualization, operationalisation and assessment of

climate more practically useful, theoretically rigorous, and methodologically perfect. Many

approaches which constitute this third stage in the evolution of the concept of organisational

climate is discussed in the remaining part of this chapter while discussing the various

approaches and issues in the conceptualization an assessment as well as the research on

organisational climate. Furthermore there are several approaches to the concept of climate, of

which two in particular have received substantial patronage: the cognitive schema approach

and the shared perception approach. The first approach regards the concept of climate as an

individual perception and cognitive representation of the work environment. From this

perspective climate assessments should be conducted at an individual level. The second

approach emphasizes the importance of shared perceptions as underpinning the notion of

climate (Anderson, & West, 1998; Mathisen & Einarsen 2004). Reichers and Schneider

(1990) define organisational climate as the shared perception of the way things

are around here. It is important to realize that from these two approaches, there is no best

approach and they actually have a great deal of overlap.

SURVEY OF RELATED STUDIES:

ORGANISATIONAL CLIMATE RELATED STUDIES:

15
Krech and Crutchfield (1961) explained the individuals total conception of the worlds in

which he exists it includes his knowledge, beliefs and memories and his view of the past

and future as well as of the present; and it may include domains of life reached after mortal

death heaven and hell paradise and purgatory. It is not, of course, the same as the actual

physical and social environments described by the outside observer. It is what exists

subjectively for the person. His life space may correspond in some way with the actual

external environment but it also deviated from them in radical degree, and varies markedly

from life spaces of other people.

Forehand and Gilmer (1964) stated that variables like structure, goals, supervisory practices,

etc. interact with personality to produce perceptions and it is through these perceptions that

we can understand the relationship between causal and end-result variables.

Asschin (1965) puts, if two sets of factors interact in a complex situation requiring us to

develop theories and research approaches which can deal with systems and independent

phenomenon.

Frederikson (1966) on the basis of laboratory studies involving 260 middle level managers

concludes that different organisational climate has different effects on human performance.

He summarises his findings in the following statement: It appears that the amount of

administrative work in the stimulated job is more predictable in a climate that encourages

innovation than in one that encourages standard procedures and that in an innovative climate

(but not in a rules climate), greater productivity can be expected of people with skills and

attitudes that are associated with independence of thought and action and the ability to be

productive in five, unstructured situation.

15
Litwin and Stingers (1968) study Measuring organisational climate trying to measure

organisation climate is an attempt to capture the sense, environment, order and pattern of an

organisation. He has identified several properties of organisational climate and measured

them in Structure The organisations rules, red tape and constraints, Challenge and

Responsibility The feeling of being ones own boss, Rewards The feeling of being

adequately and equitably rewarded by the organisation, Warmth and Support The feeling of

helpfulness, supportiveness, and good fellowship in the work environment, Risk and Risk

taking The amount of challenge and risk in the work environment, Tolerance and Conflict

The degree to which the work environment can tolerate different opinions, Organisational

Identity The degree of group loyalty perceived by members, Performance standards and

expectations The perceived importance of performance and the clarity of the expectations

concerning performance.

Friedlander and Margulics (1969) conducted a study in organisational climate, the objective

of the study was to determine the relationship between organisational climate and the job

satisfaction. The study revealed that organisational climate is a significant determinant of

individual job satisfaction and this links varies with different types of climate.

Stren (1970) explored the association between a personal needs and perception of climate

using Murrays need press theory framework for both personality measure and climate

measure. Joint factor analysis of measure shows little overlap between them. The evidence,

though limited scope in coverage nevertheless show that perceptual description of an

organisation and is not totally idiosyncratic, but say something about organisation reality.

Whisendpaul (1971) as studied in his book police supervision that, when an individual joins

in the organisation, he brings with all characters of a whole man, perception, needs, attitudes,

motivation, tension, knowledge and problem solving capacities. Though he has moved from

15
an individual environment to an organisation environment, we can expect the same laws to

modify and shape his organisational behaviour,

Baugratel (1971) conducted a study on organisational climate, the objectives of the study was

to find certain contributing factors of organisational climate to be a product of leadership

practices, communication practices and enduring systematic characteristics of working

relationships among any person on any division of an organisation.

Schneider and Hall (1972) in the study on organisational climate aimed to find the interaction

between personal and organisational characteristics and its relationship to organisational

climate. The authors in the findings perceived organisational climate as a phenomenon that

represents an interaction between personal and organisational characteristics.

Driehard and Kanarick (1973) conducted a study on organisational climate; the objective of

the study was to find the effect of organisational climate on job satisfaction and job

performance. The study revealed that organisational climate is strongly related to employee

satisfaction than to their job performance.

Guion (1973) has recommended that if organisational climate must be studied through

perceptions of people instead of through direct observation of organisational characteristics

the following procedure be followed, all members of a given organisational unit may be

given a set of statements, each relating to an organisational attribute, and asked to report

whether the same were true or not true, thereby determining the frequency of

endorsement. The items to be treated genuinely descriptive of organisational characteristics

are those in which the frequency of endorsement is not significantly different from 100

percent. He has recommended that inter-rater agreement indices should not depart

significantly from 1.00.

15
Pajne and Mansfield (1973) conducted the study on organisational climate; the objective of

the study was to determine the linkage between individual and organisation. The findings of

the study revealed that there is conceptual linkage between organisation and individual that

intervenes between specific situation attitudes on events and individual perceptions, attitudes

and behaviour. The concept of organisational climate therefore encompasses both

organisational climate and individual characters and attitudes.

Badris (1974) examines the effect of groups size, tenure, position, power and task structure

on the relationship holds under some conditions and not under others. Insel and Maos (1974)

conducted a study on organisational climate; the objective of the study was to determine the

influence of organisation on individuals. The findings of the study revealed that like an

individual organisation too has its own unique identity of personality, which exerts directional

influence on behaviour of individuals.

Lyon and Vancevich (1974) in his study environmental perceptions is irrelevant as

organisation members tend to adapt, their organisations to the environments which they

believe exists, regardless of whether their perceptions would be objectively confirmed or not.

Thus, the usefulness of subjective perceptions is not mention. It was found that different

climate dimensions influences individual job satisfaction nor nurses and administrators.

James and Jones (1974) conducted a major review of the theory and research on

organisational climate and identified climate in three separate ways that were not mutually

exclusive, (a) multiple measurement organisational attribute approach, (b) perceptual

measurement organisational attribute approach , and (c) the perceptual measurement

individual attribute approach.

15
Slocum (1974) point out, the intent of organisational climate is to clearly evoke perceptual

rather than attitudinal or other typed of responses: that is , they stimulate, or intend to

stimulate, the subject to orient himself with specific facts and to express his opinion as to

how he perceives those facts, not whether he likes them or not. Thus, climate instruments are

meant to describe work environment whereas satisfaction instruments serve to evaluate them.

Gavin, J.F. (1975) examined personnel and organisational correlated of climate perceptions

to determine the interaction of the two in influencing organisational climate. The results

indicate that climate perceptions are influenced equally by personal and organisational

factors.

Schneider (1975) describing climate to have been conceptualized across studies in one of

three ways as a dependent, independent, and intervening variable, which he considered

were merely different vantage points.

Payne and Pough (1976) have studied through both objective and subjective measures.

Objective measurement of an organisation implies a direct assessment of organisational

properties without any conceptual transformations. Here, a member is only an informant

about, any, an organisation chart or performance records. Subjective measurement, on the

other hand, implies an indirect assessment of organisational properties by instruments, which

measure group perceptions. Here, a member responds to instruments with statement such as

the jobs in this organisation are clearly defined and logically structured, the employees here

are constantly being checked for rule violation.

Hackman (1976) pointed out substantial knowledge, available attitudes of individuals, which

are important for understanding organisational behaviour, but less is known about

organisational side of the equation.

15
Johnston (1976) in his study research found two climates in a study of professionals in a

small consulting firm. He noticed that longterm employees deemed the climate flexible,

supportive, nonauthoritative, concerned with integrating individual with organisational goals,

and generally organize, adaptive in its environment. Whereas, newer employees saw as rigid,

procedural, strongly based on hierarchy, authority, more impersonal and emphasizing

organisational goals.

Sutton and Rousseau (1979) suggest individual perceptions of job characteristics as an

intervening variable in the relation between situational characteristics and individual

responses. People in work settings form perceptions of organisational climate because

apprehending order in the world is a basic human need.

James (1982) has suggested another criterion for inter-rater reliability and aggregation of

climate scores over individuals. In this method, inter-rater reliability is defined as the degree

to which raters agree with respect to there rating (perceptions) of a particular target (e.g. the

organisation) on a particular rating (Climate) scale. A within-group design is used because it

is desired to have an estimate of inter-rater reliability separately for each group that is not a

function of betweengroup variation. Such an estimate of inter-rater agreement will not be

affected by lack of variation in-group means.

Baldev, R. Sharma (1983) in his studies states that organisational climate is a multi

dimensional phenomenon. The term organisational climate as used here refers to a set of

characteristics, which can be individual from the way an organisation deals with the members

in the function of various personnel policies and practices as perceived by the members of

that organisation. According to this study the dimensions of organisational climate which

were used for collection of date are Scope for advanced, Recognition and Appreciation,

15
Grievance Handling, Safety and Security, Monetary Benefit, Training and Education,

Objectivity and Rationality, Welfare facilities, Participation in the Management. 89

Ashforth (1985) discusses the integrationist perspective and highlights the susceptibility of

newcomers to influence outcomes in their desire to fit into a new setting. Social comparison

theory explains that individual compare their belief to others whom they perceive to be

similar to them (for example, people in the same job). Normative social influence and the

stake that group members have in maintaining the frame of reference of the prescribed

behaviours, beliefs, and attitudes affect the development of organisational cultures.

Organisational climate has much to offer in terms of its ability to explain the behaviour of

people the work place. He puts forward the view that climate has the potential to facilitate a

truly integrative science of organisational behaviour.

Ekvall (1987) in his study concludes by stating, In an overall organisational model climate

can be seen as an intervening variable in the process between input an output, and one that

has a modifying effect on this process. Climate affects organisational and psychological

processes, and thus acquires an influence over the results of organisational operations.

Pareek (1989) proposed that a framework based on motivation seems to be quite relevant for

the study of organisational climate. Organisational climate studied in this framework can also

be called motivational Climate. He argued that six motives are particularly appropriate in

developing a framework that facilitates analysis of the connection between organisational

climate and motivation. These motives are achievement, affiliation, experience, influence,

extension, control and dependency.

Pareek (1989) further contended that twelve processes or dimensions of organisational

climate relate specifically to motivation: orientation, interpersonal relationships, supervision,

15
management, communication, decision making, trust, management of rewards, risk taking,

and innovation and change. He argued that the way in which these twelve dimensions of

climate operate in an organisation indicated the underlying motive of top management and

the principal motive that is likely to be generated and sustained within the organisations

population. When the twelve dimensions are combined with the six motives mentioned

earlier, a matrix is formed that can be useful in diagnosing the motivational climate of an

organisation.

Ekvall (1990) the organisational climate is important due to its potential to influence different

organisational and psychological processes. Communication, problem solving, decision-

making, learning and motivation can all be affected by the organisational climate. This in

turn might have an impact on the effectiveness and productivity of the organisation as well as

the work environment and employee well being in the work place. In an high risk

environment such as the Air Traffic Control (ATC) industry, it might also have an effect on

safety standards.

Falix Wilson Francis, F. (1990) In his study identified the level of organisational climate form

the angle of welfare measures. According to the researchers view welfare measures are very

much essential in order to have good organisational climate. For by giving sound welfare

measures the workers get psychologically very satisfied.

Kopelman, Brief and Guzzo (1990) provided a linear model of organisation functioning that

demonstrates the role of culture and climate as they are ultimately linked to organisational

productivity. The model starts with societal and organisational culture as setting the

parameters of the human resource practices. He states that organisational climate reflects both

individual and organisational characteristics. Similarly, salient organisational behaviours such

as attachment, performance and citizenship are seen as intervening between the climate of the

15
organisation and the ultimate outcomes. Attachment will affect such factors as absenteeism

and turnover, leading to an increase in training separation and replacement costs.

Richard, M. Hodgettes (1991) states that organisational climate can range along a continuous

form favorable to neutral and to unfavorable. Both employees and employers want a more

favorable climate because of its benefits such as better performance and job satisfaction.

Several typical climates that are identified to contribute to a favorable climate are given

below, Quality of work life, Amount of trust, Upward and downward communication, Feeling

of useful work structure, Responsibility, Fair rewards, Reasonable job processes,

Opportunity,Reasonable controls and bureaucracy, Employee involvement and participation.

Zammuto and Krakower (1991) used the competing values framework to measure climate

and relate it to organisational characteristics. They find different climates are correlated with

different organisational characteristics, i.e., there is a fit between the climate and the

organisational characteristics. They use organisational characteristics (centralization,

formalization, long-term planning), climate measures (trust, conflict, morale, equity of

rewards, resistance to change, leader credibility, and scape-goating) and strategy dimensions

(reactive/pro-active orientation) to categorize the culture into group culture, developmental

culture, internal process culture, and rational culture. They concluded that cultural type is

related to differences in organisational climate.

Moran and Volkwein (1992) examined the relationship between culture and climate they saw

an organisations climate as a specific portion of the overall construct. They viewed climate

as embedded into the overall construct of culture, which was seen as large and more abstract.

As far as the individual behaviour in the formation of climate is concerned, saw the

contextualising of the psychological principles contained in the Gestalt and functional

approaches to behaviour. They view culture as being the invisible construct which guides and

15
inform individual behaviour, in effect setting an agenda from which climate can develop and

where in their view it can have some enduring quality.

Hooijberg and Petrock (1993) characterize the four corresponding climate type from the point

of view of the competing values. The group climate could be described as a friendly place to

work where people share a lot of themselves. It is like an extended family. The leaders, or

head of the organisation, are considered to be mentors and, perhaps even parent figures. The

organisation is held together by loyalty or tradition. Commitment is high. The organisation

emphasizes the long-term benefits of human resource development with high cohesion and

morale being important.

Schneider (1994) discussed climate in terms of the atmosphere that employees perceive is

created in their organisations by practices, procedures, and rewards Employees observe

what happens to them (and around them) and then draw conclusions about the organisations

priorities. They then set their own priorities accordingly.

Schneider, Gunnarson and Niles Jolly (1994) claim that organisational citizenship behaviour

is essential in creating a climate that allows for organisational success. Perceptions of fairness

and trust, norms of helpfulness and co-operation and fair reward systems based a broad range

of contributions are seen as essential in creating a good climate.

Guzzo et al., (1996) argue that sustainable organisational change is most assured when both

the climate what the organisations members experience- and the culture what the

organisations members believe the organisation value change. 94

Burton and Obel (1998) developed a multi contingency model for organisational design.

Organisational climate, which we can describe in terms of tension and resistance to change, is

one of the contingencies, which determine the organisational design, which includes the

15
configuration, level of centralization, formalization, complexity, coordination and incentives.

The climate implications for the organization can be summarized using the competing values

framework and in particular for the four climate types: internal process, rational goal,

developmental and group.

Eisenhard and Brown (1998) make a competing argument that continuous change is easier to

manage than episode change which requires the Lewinian change process of: unfreeze,

change and refreeze. The idea is to make change the climate of the organisations change itself

becomes the expected activity for a fast paced world.

Pervaiz, K. Ahmed (1998) titled Culture and Climate for innovation has portrayed that many

companies pay lip service to the idea of innovation and stresses that becoming innovative

requires an organisational culture, which nurtures innovation and is conducive to creativity.

Considers the nature of organisational climate and of organisational culture, focusing on

factors, which make for an effective organisational culture. Looking at the interplay between

various organisational factors and innovation and suggests elements which promote

innovation. Concludes that the most innovative companies of the future will be those, which

have created appropriate cultures and climates.

Veronique (1998) in his study, the role of the emotional climate in learning organisation, it

becomes increasingly obvious that an emotional climate pervades every level of human

interaction inside organisations.

Emotionally and rationality coexist in organisational settings. This research examines how an

emotional climate arises, how it evolves, how it is maintained, and what are the consequences

of a given type of emotional climate. We suggest that it may deeply affect organisational

dynamics such as idea-generation, creativity, adaptability to change, and facilitation or

15
inhibition of learning processes. Hence, it ultimately influences performances. We are in the

process of developing an instrument to measure the emotional climate in a learning

organisation.

Bruce Kirkcaldy and James A. Athanasou (1999) in his research paper Perceptions of

working climate: a study of German employees highlights that theories of career development

urge an upward and linear progression in career adjustment and satisfaction. The result of the

study of German paraprofessional employees indicated that the perceptions of their working

climate were first accounted for by two separate factors comprising four negative climate

components (job pressure, job dissatisfaction, poor relations with co-workers, and lack of

recreation) and a separate career motivation dimension. Secondly cross-sectional

comparisons yielded significant age by gender interactions for job selected by a decrease in

the quality of working climate over time.

Joseph Wallace et al., (1999) in their study, the relationship between organisational culture,

organisational climate and managerial values, the findings from an empirical investigation

into the relationship between the organisational culture, climate and managerial values of a

large Australian public sector agency. The relative strengths of four dimensions of culture in

this organisation were measured using Hofstedes instrument. Added to this were items from

a questionnaire developed by Ryder and Southey, delivered form the Jones and James

instrument measuring psychological climate and providing scores across six specific

dimensions of organisational climate. Measures of managerial values, drawn from a

questionnaire by Flowers and Hughes, were also incorporated. Results show that Hofstede at

variance with those reports levels of culture within this particular organisation from his

Australian data. Findings indicate a strong link between specific organisational climate items

and a number of managerial value dimensions. Additional relationships between particular

15
dimensions of culture, climate andmanagerial values are also reported. From this, a

hypothesized, predictive model of linkages between the constructs is presented.

Richard, M. Burton et al., (1999) in their study, Tension and resistance to change in

organisational climate managerial implications for a fast paced world, Climate is the

atmosphere of the organisation, a relatively enduring quality of the internal environment of

an organisation, which is experienced by its members and influences their behavior. The

organisational climate can be measured in terms of trust, morale, conflict, equity in rewards,

leader credibility, resistance to change and scapegoat. Using a factor analysis, we found that

the organisational climate can be described in two dimensions: tension and the resistance to

change for a group of 245 Danish companies. High tension involves strained relationships,

stress and a balance of the combined factors.High resistance to change is a preference for

tomorrow to be like today.Change management has a long history and rests fundamentally

upon Lewins three phases: unfreeze, change and re-freeze. More recently, change

management is seen as sense making and the creation of an organisational reality in which

change is more usual and continuous.

Chandramohan Reddy, T., Gajendran, M. and Gayathri, S. (2000) has made an attempt to

examine the workers dual commitment both organisational and union commitment- in the

context of organisational climate. The study was conducted in four private and four public

textile organisations by interviewing 200 respondents, 25 from each organisation.

Organisational climate was found to have an important role in determining organisational

commitment and not union commitment. Dual commitment does not exist irrespective of the

type of organisational climate.

Davidson, Michael Cameron Gordon (2000) this study author gathered data from 14 four to

five-star hotels in South - East Queens land, Australia, in an attempt to examine the nature

15
and degree of influence organisational climate has upon the performance of hotels. Employee

perception of customer satisfaction was studied both as an index of performance and as an

intervening variable between organisational climate and financial performance as indexed by

revenue per available room (REVPAR). The data provided a description of a young,

relatively gender balanced, well-educated and trained work force which received relatively

low levels of financial remuneration and displayed veryhigh levels of turnover. A new

instrument was used to measure the dimensions of organisational climate across the hotels.

This instrument represented a modification of that presented by Ryder and Southey (1990),

which itself was a modification of the 145-item psychological climate questionnaire of Jones

and James (1979). The instrument represented a subset of 70 items of the Ryder and Southey

instrument. Responses to all items within the instrument were on a 7 point anchored scale.

Principal components analysis (PCA) produced results consistent with earlier versions of the

instrument, which had been reported elsewhere. The study analysis described organisational

climate within the sample to be composed of 7 underlying dimensions; Leader facilitation

and support, Professional and organisational esprit, Conflict and ambiguity, Regulations,

organisation and pressure, Job variety, challenge and autonomy, Workgroup co-operation,

friendliness and warmth, and Job standards. These dimensions were judged to be consistent

with those reported earlier by Jones and James, and by Ryder and Southey. Poor support was

found for the first structural model that proposed that employee demographic variables would

affect organisational climate and that organisational climate would affect customer

satisfaction (although the latter link was quite strong). The most important finding of the

study was the support for a second structural model when it was found tha variation in the 7

dimensions of organisational climate accounted for 30% of the variation in Employee

Perception of Customer Satisfaction. Furthermore, that Employee Perception of Customer

Satisfaction accounted for 23% of the variation in REVPAR between the hotels. Possible

15
extensions of this study using direct measures of customer satisfaction and expanding it to

include hotels of different star ratings are discussed.

Deborah Hicks et al., (2000) in their study, Climate for diversity and the effects on career and

organisational attitudes and perceptions, discussions of issues of human resource diversity,

and diversity climates in organisations and develops a conceptual model of a positive

climate for diversity (PCFD). This refers to the degree to which there is an organisational

climate in which human resource diversity is valued and in which employees form diverse

backgrounds feel welcomed and included. It presents a model of the indicators of a positive

climate for diversity and the outcomes for organisations and individuals of such a climate,

especially individual career and organisational attitudes and perceptions. It also presents

variables, which have a moderating effect in the model. The results of research from both

private and public sector organisations, which emphasis on service, indicate that climates for

diversity do impact significantly on a range of career organisational attitudes and perceptions.

The research and managerial implications are discussed.

Neal, A., Griffin, M.A. and Hart, P.M. (2000) the current study examined the effects of

general organisational climate on safety climate and safety performance. As expected, general

organisational climate exerted a significant impact on safety climate, and safety climate in

turn was related to self-reports of compliance with safety regulations and procedures as well

as participation in safety-related activities within the workplace. The effect of general

organisational climate on safety performance was mediated by safety climate, while the effect

of safety climate on safety performance was partially mediated by safety knowledge and

motivation.

Peter Kangis, D. and Gordon, S. Williams (2000) the aim of the study was to contribute this

discourse by examining the extent to which above and below average performing

15
companies also exhibit different climate measurements. Interest in organisational climate and

its link with corporate performance is gaining momentum. The survey was conducted on a

sample of electronic component manufacturers, as a sunrise industry in a growth phase, and

hosiery and knitwear manufacturers, as a sunset industry, in decline. In turn, sub-samples of

companies that performed above or below average for each of these sectors were selected.

Climate dimension measurements collected from staff of the sample companies were

analysed against corporate performance measurements. The results showed a consistent

association between climate and performance. Independently of sector, companies

performing above average showed higher values on climate dimensions than those

performing below average. Although a link was shown to exist between climate and

performance, it would be premature to conclude that this connection is causal and, if so, in

which direction.

Peter Kangis and Peter Kareklis (2001) the study was based on managers of a sample of

private and public banks in Greece wassurveyed through the vehicle of agency theory. It was

found thatmanagers in private banks showed greater alignment of interests with those of the

bank, their pay related to outcomes and they were more mobile in their jobs. Private banks

also used more control mechanisms toalign interests of their managers with those of the bank

and displayed a different working climate. Given evolving organisation structures resulting

from deregulation, the convergence of information technology and communications and the

entry of firms from other industries, the implications of the findings for governance are

important.

Roderic, J. Gray (2001) the study establishes a clear association between project outcomes

and the social and management climate in which those projects are implemented. Drawing on

extensive field research involving project management professionals in major British

15
organisations, project success is shown to decline as the level of personal and environmental

threat perceived by project staff increases. Other organisational characteristics, such as free

expression, questioning, participation in the definition of goals, innovation, and intrinsic

satisfactions from the work itself, are all found to be positively associated with successful

project outcomes, whilst organisational change and conflict are negatively associated with

project success.

Chris Watkin and Ben Hubbard (2003) this study is a summary of consulting field research

carried out by Hay Group to answer why leadership motivation matters to the drivers of share

price. The summary also aims to explain how measuring organisational climate can help

leaders better understand the effect they have on the motivations and performance impact of

those they lead. As such it represents the business case for its use by organisations. There are

practical guidelines on how to spot the early warning signs when climate starts to deteriorate;

the key factors leaders need to focus on in getting it right; and how climate measures can be

used as a macro change lever as part of an organisation talent review.

Michael, C.G. Davidson (2003) in this study the researcher studied, Does organisational

climate add to service in hotels? Examines organisational climate and organisational culture

within a hotel industry framework. An argument put forward that there is a causal link

between good organisational climate and the level of service quality in a hotel. Organisational

climate is also examined within the service quality framework to explore the effects of its

integration into quality initiatives. A conceptual model or organisational climate and service

quality and performance is presented that provides an explanation of the linkage between

organisational culture, organisational climate, service quality, customer satisfaction and hotel

performance.

QUALITY OF WORK LIFE RELATED STUDIES :

15
Macys (1979) case study on the Bolivar Quality of Work Life project was launched as a

result of extremely poor working conditions. The project objectives were to improve

employees work life, and enhance organisational effectiveness. The author claimed that the

programme had resulted in the creation of new in-plant social Structure, processes and

relationship. The cost benefit assessment of the project was positive net savings with

increased product quality and productivity.

Keating, Pullock and Walsh (1980) analyzed the survey conducted in Ireland and learned that

the trade unionist, managers and employers had believed that changing work organisation and

improving quality of working life was desirable 111

Peterson and Others (1980) had conducted a study on the QWL programme and found that

the collective aspect of the employees had an influence within the organisation. The

employees who involved in the programme perceived that they have high organisation

influence than that of who were directly affected by programme change.

Putt and Springer (1980) conducted study with professors in public administration to examine

the QWL. The result indicates that factors involving the immediate working environment are

indeed important and distinct from personal background or movement in the profession.

Participation in policy formation appears to have the greatest impact on satisfaction.

Donahue (1982) in this study the author identified problems with QWL programmes in US.

They were short term pressure of the recession that wipe out improvements made by the

programmes, responses of executives conditioned by rewards for short-run success and

supervisors poorly equipped or prepared to be programme leaders.

Sinha (1982) studied the QWL on the basis of job satisfaction, job attractiveness, intrinsic

motivation, control and influence, job involvement and work values in the light of socio-

15
cultural background played a very important role in conceptualization of life as well as work

and resultantly affected both quality of working life and quality of life. The result indicates

that the quality of working life and quality of life are two separate identities but they are

interdependent.

Ozley and Ball (1982) labour and management when work together on implementation of

QWL will be more effective. The commitment of management will contribute to positive,

responsible behaviour and action on the part of the work force.

Nadler and Lawler (1983) the study determines the opinion on the success of the QWL. The

study reveals that the success or failure of the QWL depends on the felt need of the project by

the organisation and its commitment towards participative problem solving approaches. The

programs should not be introduced for novelty sake. To be successful with QWL programme

certain steps should be taken like project development at different levels in the organisation,

changes in corporate systems and change in upper-level management practice.

Copenhaver, Lisa and Guest (1983) the study which was conducted in Ford plant, Saton Ville,

Ohio and Brick plant, Flint, Michigan about the QWL programme where both studies gave an

outcome stating that the commitment to take risk, question common assumptions and avoid

looking for quick fixes. There was a climate of support form top to down and there was a

conviction that much knowledge and experience rested with rank-and- file workers.

Leventahal (1984) here the author after conducting a study on QWL programme states that

the failure or success of the programme depends on the presence or absence of the trained

facilitator. The study concludes stating good facilitators are trained to describe the behaviours

they observe.

15
Sorensen (1985) and others have conducted the study on the QWL programme to promote

participatory management in small suburban community service organisations. This study

was based on a change strategy incorporating the survey feed back process of the action

research model and Likerts (1977) model of the relationships between causal, intervening

and end-result variables in the change process. The programme has helped to increase

productivity and organisational effectiveness but managerial influence did not diminish with

increased employee participation. The conclusion of the study states the programme could be

successful in small organisation.

Marks et al., (1986) studied the impact of Quality Circle programme on employee quality of

work life attitudes and on productivity and absenteeism behaviour among the direct labour

employees in a manufacturing firm in America. The data revealed a positive relation between

QC participation and changes in QWL perception in areas directly involved in QC activities.

The study concludes stating that the QC participation had led improvements in employee

productivity and absenteeism rates.

Parr (1986) and others have evaluated QWL programme at Canada Postal Head Quarters.

This is to improve the poor state of labour relations in the data conversion unit of Canada

Postal Headquarters. The evaluation after the first year showed slight drop in absenteeism.

But there was a slight improvement in motivational potential, growth need strength and job

satisfaction.

Williamson and Alexander (1986) studied the QWL provision in US postal service (USPS)

contracts. Content analysis was used to identify the number of Quality of Work Life clauses

in labour contracts and the same is found to be associated with decrease in productivity and

increase in absenteeism.

15
Bocialetti (1987) tested whether employees were benefiting, from QWL process. The

longitudinal study with the gap of 18 months revealed that employees with relatively

seniority benefited more than and sometimes at the expenses of workers with relatively high

seniority. The data interpreted as the senior workers suffered negative effects while junior

employees remained unchanged.

Bushe (1988) has studied multiple case study and comparative analysis to improve labour

management relations through joint management quality of wok life projects. The result of

the study states that the quality of the LMCs (Labour Management Committees) created to

oversee the process was an important determinant of a projects success.

Davis Keith and Newstorm (1989) could perceive wide range of QWL activities as open

communication, equitable reward system, a concern for employee-job security, and

participation in job design. According to them, emphasis should be placed on employee skill

development, the reduction of occupational stress and the development of more co-operative

labour management relations.

Krim and Arthur (1989) conducted a study to evaluate the joint labour management co-

operation and have found that politics can enter into a public sector QWL programme. The

consequences of the programme would make the programme and the initiator of the political

behaviour.

Manz and Grothe (1991) where they conducted a nation wide survey in a large, US based

Computer-manufacturing Corporation, of 3,836 employees, which revealed that the scores of

the younger generation below 20 years were significantly lower than that of their order age

group employees.

15
Fields and Thacker (1992) studied the feedback of implementation of a joint union

management quality of Work Life programme whether any changes in union and

organisational commitment. The result was that the company commitment increased only

when participants perceived QWL efforts as successful, but trade union commitment

increased irrespective of the perception of QWLsuccess.

Yousuf (1996) conducted a study to find out the QWL of the Doctors. The studies revealed

that when works were found routine and boring, the job was also considered frustrating.

Those who were happy in their personal life were happy in their friends circles. The

successful of work lives found to be related to the quality of work performance. The study

found that the supervision were good, their present job also had given a sense of

accomplishment. The conclusion of the study was the better socio-technical system along

with better QWL would certainly offer best health services to ailing mankind. Ekramul

Hoque, M. and Alinoor Rahman (1999) They attempted to compare the QWL of industrial

workers according to the nature of the organisations and to measure whether there is any

significant relationship among quality of work life, job behaviour and demographic variables

of the workers. The result revealed workers of private sector textile mills perceived

significantly higher QWL than in the public sector; QWL has significant negative correlation

with absenteeism and accident and QWL has significant positive correlation with

performance.

SCOPE AND NEED OF THE STUDY:

When we look at many organisations we find that many of them are not able to achieve their

goals. The major reason for this is poor organisational climate. In this rapid changing

15
scenario of organizations context, structure, concepts, procedure, policies, rules, technology

the climate of the organisation changes in adopting the recent trends. The new trends in

management will influence the employees working in the organisation, which reflect in

determining organisational climate. Such thought induced to go in for this research and to get

first hand information. Organisational climate is the perception of the employees feel to work

in a particular environment. To improve organisational climate the atmosphere of the work

place depends on peoples perception. This study is focused on how the present organisation

is able to cope with the rapidly changing environment and to identify the present situation at

the workplace. This study will be helpful for the organization to develop good climate by

understanding various dimensions of organisational climate like role clarity, respect,

communication, reward system, career development, planning & decision making,

innovation, relationship, team & support, quality of service, conflict management,

commitment and morale, training & development and direction. The present study attempts to

focus on the socio-economic conditions of the employees, organisational climate perceived

by them and the quality of work life of the employees. The researcher with rich experience in

the field undertook this project with confidence. The researcher feels that justice has been

done to the extent possible.

CONCLUSION:

The survey of the related studies reveal that majority of studies conducted on organisational

climate reveals that rapid changes in the pursuit of the technological changes neglected the

personnel of the organisation which caused low morale of the employees and resulted in

many conflicts and disputes. To avoid such untoward incidents, at present, every organisation

is attempting to create a favourable organisational climate, which will ensure better

performance and efficiency from the employees. The organisations are interpreted as a 118

15
dynamic process, since it is simply a mechanism for coordinated behaviour. It is the process

of people having in a rationally coordinated fashion. It also found that most of the studies are

carried out in developed and developing countries. It is also noted that there are only few

theories / models in this area.

CHAPTER III

ANALYSIS AND INTERPRETATION

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Introduction

Analysis involves estimating the values of unknown parameters of the

population and the testing of hypothesis for drawing inferences. Interpretation

refers to the task of drawing inferences from the collected facts from an

analytical study. Analysis and Interpretation becomes integral in any study as

the usefulness and utility of the research findings lie in them. This chapter

analyses and interprets the data collected from the respondents with use of Pie

diagrams, Doughnut diagrams, vertical and horizontal bar graphs.

THE CORDIAL RELATIONSHIP WITH COLLEAGUES

This variable was studied to find out whether there is cordial relationship that exists
betwixt the employees 87 % of the employees are highly satisfactory about the
relationship patterns and 13 % percent of the employees are satisfactory.

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FIGURE.1

THE CORDIAL RELATIONSHIP WITH COLLEAGUES

INTEREST OF IMMEDIATE SUPERVISOR IN THEIR SUBORDINATES WORK

This variable was studied to find out the interest of superiors in their subordinates
work, 70% are highly satisfactory and 30 % are satisfactory with the interest level of
their superiors in their task.

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FIGURE.2

INTEREST OF IMMEDIATE SUPERVISOR IN THEIR SUBORDINATES WORK

JOB SECURITY

This variable was studied to find out the job security of the employees 90 % are highly
satisfactory and 10 % satisfactory about their job security.

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FIGURE.3

JOB SECURITY

THE USE OF TALENTS AND COMPETENCIES IN THEIR JOB

This variable was studied to find out the use of talents and competencies in their job 70
% of the employees are highly satisfactory and 30% of the employees are satisfactory.

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FIGURE.4

THE USE OF TALENTS AND COMPETENCIES IN THEIR JOB

THE ROLES AND RESPONSIBILITIES EMPLOYEES HAVE IN JOB

This variable was studied to find the satisfactory level of the roles and responsibilities
that employees have in their job ,87 % of them are highly satisfactory and 13 % are
satisfactory about their roles and responsibility.

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FIGURE.5

THE ROLES AND RESPONSIBILITIES I HAVE IN MY JOB IS

THE RECOGNITION IN JOB

This variable was studied to find out the recognition that employees have in their
job,93% are highly satisfactory 7 % are satisfactory.

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FIGURE.6

THE RECOGNITION IN JOB

MY SUPERIOR IS CONFIDENT ABOUT ME AND TRUSTS ME.

This variable was studied to find out how confident the superiors are with their
subordinates 84 % of them strongly agree, 10 % of them disagree and 6% of them
agree to the statement.

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FIGURE.7

MY SUPERIOR IS CONFIDENT ABOUT ME AND TRUSTS ME.

INTERACTION BETWEEN MY SUPERVISOR AND ME IS GOOD.

This variable was studied to find out the interaction level of the superiors and
subordinates ,60 % of them strongly agree,20 % of them agree and 20 % of them
disagree.

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FIGURE.8

INTERACTION BETWEEN MY SUPERVISOR AND ME IS GOOD.

MANAGEMENT/SUPERVISORS FACILITATE MY WORK PROCESS.

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This variable was studied to find out whether management and supervisors facilitate in
the work process 82 % strongly agree,10 % strongly disagree and 8 % agree to the
statement.

FIGURE.9

MANAGEMENT/SUPERVISORS FACILITATE MY WORK PROCESS.

MANAGEMENT REWARDS ME PROPERLY FOR MY ACHIEVEMENTS

This variable was studied to find out whether management rewards the employee for his
achievements or not, 85 % of them strongly agree, 5% of them agree, 5 % of them
strongly disagree 5 % of them disagree.

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FIGURE.10

MANAGEMENT REWARDS ME PROPERLY FOR MY ACHIEVEMENTS.

MANAGEMENT PROVIDES OPPORTUNITY TO WORK WITH OUT CLOSE

SUPERVISION/MONITORING.

This variable was studied to find out whether management provides opportunity to
work with out close supervision ,70 % of them strongly agree,20 % of them disagree
and 10% of them disagree to the statement.

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FIGURE.11

MANAGEMENT PROVIDES OPPORTUNITY TO WORK WITH OUT CLOSE

SUPERVISION/MONITORING.

MANAGEMENT CARES FOR MY CAREER GROWTH AND OPPORTUNITY IN

THE ORGANIZATION.

This variable was studied to find out the career planning initiatives and the satisfactory
level of the employees , 80 % of them strongly agree, 10% of the agree, 10% strongly
disagree to the statement.

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FIGURE.12

MANAGEMENT CARES FOR MY CAREER GROWTH AND OPPORTUNITY IN

THE ORGANIZATION.

TO UPGRADES MY SKILLS I RECEIVE NECESSARY TRAINING AND

COACHING.

This variable was studied to find out whether employees receive necessary training for
which 95 % of the respondents strongly agree and a minor portion of the respondents
agree to the statement.

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FIGURE. 13

TO UPGRADES MY SKILLS I RECEIVE NECESSARY TRAINING AND

COACHING.

THE MANAGEMENT UNDERSTANDS MY FEELINGS / COMPLAINTS /

GRIEVANCES.

This variable was studied to find out the satisfactory level of the grievance handling
process for which 95 % of them strongly agree and 5 % agree to the statement.

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FIGURE.14

THE MANAGEMENT UNDERSTANDS MY FEELINGS / COMPLAINTS /

GRIEVANCES.

I RECEIVE ALL INFORMATION CLEARLY AT RIGHT TIME.

This variable was studied to find out the information dissemination process I the
organization and for this variable 75% of them strongly agree, 20% of them disagree
and 5% of them strongly disagree.

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FIGURE.15

I RECEIVE ALL INFORMATION CLEARLY AT RIGHT TIME.

I FEEL THAT MY IDEAS, SUGGESTIONS ARE NOT TAKEN SERIOULSY BY

OTHERS.

This variable was studied to find out the level of importance given to employees at all
stage in the organization for which 60 % of them strongly disagree and only 40% agree
to the statement.

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FIGURE.16

I FEEL THAT MY IDEAS, SUGGESTIONS ARE NOT TAKEN SERIOULSY BY

OTHERS.

I AM INFORMED ABOUT THE DEVELOPMENTS AND HAPPENINGS IN THE

ORGANIZATION.

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This variable was studied to find out the level of information passage/dissemination to
the employees for which 67% of them strongly agree, 20% of them agree,10% of them
disagree and 3% of them strongly disagree to the statement.

FIGURE.17

I AM INFORMED ABOUT THE DEVELOPMENTS AND HAPPENINGS IN THE

ORGANIZATION.

MANAGEMENT ARRIVES AT A DECISION IN LAST MINUTE WITHOUT THE

CONSULTATION OF THE EMPLOYEES.

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This variable was studied to find out the decision making process of the organization for
which 8% strongly agree,82 % agree and 10 % disagree to the above statement.

FIGURE.18

MANAGEMENT ARRIVES AT A DECISION IN LAST MINUTE WITHOUT THE

CONSULTATION OF THE EMPLOYEES.

THE MANAGEMENT NEVER HEARS TO THE EMPLOYEE IDEAS BECAUSE OF

NEGATIVISM AND RESISTANCE.

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This variable was studied to find out whether the ideas of the employees are taken
seriously by the management for which 80% of them strongly disagree, 20% of them
agree to the statement.

FIGURE.19

THE MANAGEMENT NEVER HEARS TO THE EMPLOYEE IDEAS BECAUSE OF

NEGATIVISM AND RESISTANCE.

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I AM GIVEN OPPORTUNITY TO CONTRIBUTE IDEAS / SUGGESTIONS FOR
SOLVING ANY PROBLEM IN SIDE ORGANIZATION.

This variable was studied to find out whether opportunities are given to employees to
contribute for which 76 % of them strongly agree,10% of them agree and 14% of them
disagree to the statement.

FIGURE.20

I AM GIVEN OPPORTUNITY TO CONTRIBUTE IDEAS / SUGGESTIONS FOR

SOLVING ANY PROBLEM IN SIDE ORGANIZATION.

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MANAGEMENT INVOLVES SUB-ORDINATES IN MAJOR DECISION MAKING
PROCESS.

This variable was studied to find out whether subordinates as well are involved in the
decision making process for which 60% of them strongly agree, 20% strongly
disagree,10% disagree and 10 % of them agree to the statement.

FIGURE.21

MANAGEMENT INVOLVES SUB-ORDINATES IN MAJOR DECISION MAKING

PROCESS.

CANTEEN FACILITIES

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This variable was studied to find out the satisfactory level of the canteen facilities
obliged for which 90 % of the respondents have stated that they are highly satisfied and
10 % of the respondents have stated that they are dissatisfied.

FIGURE.22

CANTEEN FACILITIES

REST ROOM

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This variable was studied to find out the satisfactory level of the rest rooms obliged for
which 85 % of the respondents are highly satisfied and 15 % of the respondents are
dissatisfied.

FIGURE.23

REST ROOM

RECREATIONAL FACILITIES

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This variable was studied to find out the satisfactory level of the recreational facilities
provided to the employees for which 94 % of the respondents are highly satisfied and 6
% of the respondents are dissatisfied.

FIGURE.24

RECREATIONAL FACILITIES

HOUSING FACILITIES

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This variable was studied to find out the satisfactory level of the housing facilities
provided for which cent percent of the employees are highly satisfied with it.

FIGURE.25

HOUSING FACILITIES

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FIRST AID BOX

This variable was studied to find out the satisfactory level of the first aid box obliged to
the employees for which cent percent of the employees are happy with the first aid box.

FIGURE.26

FIRST AID BOX

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MEDICAL FACILITIES.

This variable was studied to find out the satisfactory level of the medical facilities
obliged by the authority to its employees for which cent percent of the employees are
happy and contended with the medical facilities provided for the employees.

FIGURE.27

MEDICAL FACILITIES.

15
 CHAPTER V

MAIN FINDINGS AND SUGGESTIONS

INTRODUCTION

This chapter deals with the main findings and suggestions of the research. These findings are

derived from the analysis and interpretation of factual data that has been collected from the

Staffs at ARS Metals Pvt. Ltd, Chennai, Tamil Nadu, India.

This section of the research is a detailed report incorporating results of the research study and

is listed out with reference to the corresponding figures.

Though the organizational climate at ARS Metals Pvt. Ltd, Chennai, Tamil Nadu, India is

good to face the future requirements its mandate that the organization follows apt strategies to

keep the climate healthy. The researcher has provided viable suggestions to enhance and

improve the Organizational climate based on the findings.

MAIN FINDINGS

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 87 % of the respondents are highly satisfactory with the cordial relationship with their

colleagues.

70% of the respondents are highly satisfactory with the interest their immediate

supervisors show in their work.

90% of the respondents are highly satisfactory about the job security they have in

their profession.

70% of the respondents are highly satisfactory about the use of talents and

competencies in their job.

87% of the respondents are highly satisfactory about the roles and responsibilities

they have in their job.

93% of the respondents are highly satisfactory about the recognition they have in their

job.

84% of the respondents strongly agree to the statement that their superiors have

confidence and trust on subordinates.

60% of the respondents strongly agree to the statement that interaction between their

supervisor and them is good.

82 % of the respondents strongly agree to the statement that

management/supervisors facilitate their work process.

85 % of the respondents strongly agree to the statement that management rewards

them properly for their achievements.

70% of the respondents strongly agree to the statement that management provides

opportunity to work with out close supervision/monitoring.

80% of the respondents strongly agree to the statement that management cares for

career growth and opportunity in the organization.

15
 95 % of the respondents strongly agree to the statement that to upgrade their skills

they receive necessary training and coaching.

95 % of the respondents strongly agree to the statement that the management

understands my feelings / complaints / grievances.

75 % of the respondents strongly agree to the statement that they receive all

information clearly at right time.

60 % of the respondents agree to the statement that they feel that their ideas,

suggestions are not taken seriously by others.

67 % of the respondents strongly agree to the statement that they are informed about

the developments and happenings in the organization.

80 % of the respondents strongly disagree to the statement that the management never

hears to the employee ideas because of negativism and resistance.

76 % of the respondents strongly agree to the statement that if they are given

opportunity to contribute ideas / suggestions for solving any problem in side

organization.

60 % of the respondents strongly agree to the statement that management involves

sub-ordinates in major decision making process.

SUGGESTIONS:

Managers play a key role in creating the workplace environment. Managers should

Use every possible opportunity to improve the business literacy of staff by providing

information on the strategic context in which the department operates, its key

objectives and strategies and the links to workgroup activity Demonstrates by their

15
 actions that they do not require Absolute control by trusting staff to get their jobs

done.

Encourages self-reliance and self-confidence so that Employees Takes Responsibility

Upon Themselves.

Let self managed teams and individual staff manages their own work within

reasonable and agreed limits. This can be demonstrated not changing decisions,

Correspondence or reports unless the reasons are Clearly explained and the discussion

focuses on Professional development

Support the decisions made by staff. Instead of Rejecting a decision, asks how the

staff member came to that decision. If the manager then agrees, the Decision is

supported, if they disagree, the manager Uses this as a developmental opportunity to

explain Why the decision cannot be supported Devolves decision making to the

relevant level e.g. Encourages staff to address problems relating to their Own job

responsibilities is available to provide advice and support and is fair in sharing their

time according to the needs of staff e.g. Doesnt take calls during meetings with staff

Provides opportunities to participate in work group Decisions ensures teams have the

capacity and authority to make decisions so that they can quickly respond to problems

encourages supportive relationships through mentoring and professional development

groups ie. Staff working together to reflect on project progress and outcomes and

what could have been improved and reporting back to the group conducts regular

meetings with both staff and the local models the departments values and behaviors

recognizes staff and work group achievement by formally acknowledging them at

meetings, in other forums and with colleagues provides a clear idea of what types of

behaviors are acceptable and unacceptable and why ensures that poor behavior is not

rewarded is open to discussion and negotiation deals with personality conflicts in the

15
 work groups or Between work groups is careful not to allow the work group to

develop a siege or victim mentality as this will impact on quality of work life and

business performance does not allow the work group morale to suffer because of

management inaction understands and promotes that staff do not always need to get

on personally but they do need to get on professionally is strong enough to ask for

advice if necessary focuses on the present and the future and not on the past and past

responses by exploring innovative options to recurrent problems and doing something

to change work practices or policies that no longer contribute effectively to work

group outcomes. Understands that there is not just one answer to A problem and that

they dont always have the right answer is consistent and delivers. If they say they

will do something then they do it assists staff to do their work efficiently by having a

quick turn around time on areas of comment or advice values staff problem solving by

showing that it is all right to make the occasional mistake puts on an occasional

morning tea or other activity to celebrate birthdays and other key milestones.

Encourage staff to organize such events and makes time available to attend the

effort to get to know about staff and something about their lives outside work goes

into bat for staff on issues the staff see as Important. Where necessary advocates on

their behalf with senior management explains and provides information on unpopular

management decisions to staff and does not allow an us and them mentality to

develop presents information in a positive manner so that staff are better able to rise to

the challenge takes care of their own professional development and seeks personal

and work group improvement allows staff to develop improvement actions important

to them based on climate and morale results implements some of the other activities

outlined in this guide to enhance work group skills, interpersonal skills and work

group environment.

15
 ITS BETTER TO IMPLEMENT ORGANIZATIONAL CLIMATE ASSESSMENT

PROGRAM ONCE IN SIX MONTHS .

How to Implement an Organizational Climate Assessment Program

Organizational climate assessments can be used by many types of organizations to query

employees regarding the status of their organizations. This data gathering and analysis system

has the potential to obtain valuable information regarding the relative effectiveness and

efficiency of an organization. There are multiple ways organizations can be surveyed, but an

effective method may be to use tools that allow employees to remain anonymous, which may

encourage them to be more open and honest with their answers.

Step 1:

Determine analysis areas. Prior to beginning any organizational climate assessment, leaders

and managers within the organization must determine what information they are trying to

learn. They should examine their core competencies and try to find areas where they think

improvements can be made. The assessment tools can be very broad-based, covering areas

such as effectiveness, efficiency, processes, leadership, training, safety and communication,

to name a few. If the organization wanted a more specific focus they could make the

assessment more focused. For example, a software engineering company may determine that

production costs and time to deployment have increased. Leaders and managers within the

company could design assessment questionnaires which will reveal information relating to

time spent writing and testing software code.

Step 2:

15
Determine methodology for data collection. There are multiple was to collect data, such as

face-to-face interviews, phone calls and focus groups. Sometimes employees may be more

comfortable using an anonymous format. One effective way to implement an anonymous

organizational climate assessment program is to use server-based online tools to allow

respondents to take the surveys behind the privacy of their own work or home computer. This

may put them at ease by making them feel they can be more honest and open due to the truly

anonymous nature of online assessment tools.

Step 3:

Build vs. Buy Decision. Once the analysis areas are determined and the methodology is

decided, leaders and managers within the organization should decide if it is more effective

and efficient for them to conduct the analysis themselves or hire an outside consultant to do

this. Oftentimes organizations lack the manpower, time or knowledge to conduct this type of

analysis, which is why they frequently turn to third-party consultants to conduct their data

collection efforts. Additionally, employees may feel that an outside consultant is more

neutral, which may help to elicit more open and honest feedback. Consultants often have the

resources and experience to develop the assessment questionnaires and analyze the feedback.

In many situations, they are much less biased than the organization being analyzed.

Step 4:

Deploy the surveys. Once the surveys are developed they should be sent out to all desired

recipients. This can be done with emails to multiple employees within the organization. The

number of participants should be high enough to gather enough information to make an

accurate assessment of the organization and to help diagnose potential problems. Other

options for deployment of the surveys are to post a link on the companys intranet, if one

15
exists. The survey period should be limited to a specific amount of time and participants

should be encouraged to complete the survey in the time allotted to help ensure timely

feedback to management staff.

Step 5:

Analyze the results and implement solutions. One of the goals of this type of analysis

program is determine areas for improvement and implement solutions. Consultants should be

able to provide leadership and management staff with all the answers from the surveys,

including constructive comments from employees. This feedback can show the organizational

leadership team which areas may need to be improved, ultimately helping them to improve

effectiveness and efficiency and improve their bottom line.

15
 CHAPTER VI
SUMMARY AND CONCLUSION

A sound climate is a long-run proposition. Managers need to take an assets approach to

climate, meaning that they take the long run view of climate as an organisational asset. Many

think that organisational climate is an indirect determinant of behaviour in an interactive

sense. The individuals perceptions of what are out there acts as a moderating or

intervening variable between organisational stimuli and resultant behaviour.

In view of the above discussion, the findings and their implications should be taken into

account in the design of human resource programs as well as in the making of policy. Due

attention has to be paid to the value systems of the population as a whole, as well the

differences in perceptions found between sub-populations.

The findings of the study also suggests that, similar studies may be taken up on several

organisations in the same industry at a time to examine the variations in perceptions across

organisations in an industry. There exists a gap between what an employee wants and has.

This study has examined the perceptions of employees.

Further studies may explore the relationship between what an employee perceives and what

his superior things the employee perceives. Thereby filling the gap between what is expected

and what is resulted. This study merely explored organizational climate in the ARS

METALS PVT. LTD

organization should provide necessary facilities, conductive organizational climate and take

actions that cater for the welfare of the workers to improve organizational commitment. In

15
sum, the construction of work environments moderates the relationship between certain

climatic elements of organizations (i.e. emphasis on teamwork, innovation, quality of

communication, managerial support, and the work itself), and employee affective attitudes

such as job satisfaction.

15