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CEE CENTRE EXECUTIVE EDUCATION

A Report on the study


of Organizational
Climate of
Professional Colleges
Business Decision Making
Rashida Yvonne Campbell
1/6/2010

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Contents

Contents................................................................................................................ 2

Executive Summary...............................................................................................2

1 - Introduction......................................................................................................4

1.1 Purpose of the study.....................................................................................4


1.1.1 Related studies..........................................................................................4
1.2 Who are the subjects of this study...............................................................5
1.3 Aims and Objectives.....................................................................................5
1.4 How the study is investigated.......................................................................5
2. Key Findings and Analysis.................................................................................6

Table 1................................................................................................................6
Mean Score and Rating.......................................................................................6
Table 2................................................................................................................6
Demographic Details of Employees....................................................................6
Table 3................................................................................................................7
Average Mean Score with Respect to Factors of Organisational Climate............7
2.1 Results Explained for Table 3.......................................................................8
3. Conclusion....................................................................................................... 11

4. Recommendations...........................................................................................12

5. References.......................................................................................................13

Bibliography.........................................................................................................14

Executive Summary
Report Title: Organizational Climate of Professional Colleges
Organisation: Professional Colleges of Indore District
Report by: Rashida Y Campbell

Objectives The study is to understand the present climate of professional


colleges. From the findings of the research it will be decided if the climate
is positive or negative and for either case to make suggestions in order to
improve the present climate so that performance can also be improved.

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Sources of Data Primary sources of data using a 4-point scale
questionnaire on the various factors that makes up organisational climate.
Scope and Limitations Questionnaire administered on 40 randomly
selected faculty members (23 male and 17 female) of professional
colleges of Indore District.
An organisational climate study enables a successful organization to
operate more efficiently through the use of worker input and satisfaction
ratings.
Findings
Development of employees Leadership
Training Recruitment and Promotion These areas
scored
Cooperation Innovation either Very
Good, Good
Commitment Trust & Satisfactory
Interpersonal Relations

Performance Appraisal Responsibility


Job security Communication These areas scored
either
Physical facilities social security Satisfactory,
Poor or
Reward Counselling Inadequate
Decision Making

Conclusion and Recommendations


The areas that score ratings of satisfactory, poor and inadequate are
where the organisation needs to pay attention and focus on improving to
gain better output performance.
• Decision making received low score ratings, therefore it is
recommendable for the top management to provide more inclusion
of its faculty members during the decision-making process.
• Communication and counselling are low score areas according to
75% of employees. After appraisal more guide and counselling
needs to be provided so employees can improve their weaknesses.
• Physical facilities and social security are also low score areas, the
organisation must invest and improve facilities in the forms of
transport, canteen etc. Social security should be provided to all
employees as a benefit.
• 55% of employees are dissatisfied with the level of financial and
non-financial rewards. More attention focus and improvement
needed in this area the organisation should revise its current reward
system.
The more satisfied employees are with the organisational climate the
more motivation they will instil and therefore the better the performance
output.

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1 - Introduction
This is a report on the study of ‘Organisational Climate of
Professional Colleges.’ Organisational climate is comprised of a
mixture of norms, values, expectations, policies and procedures
that influence work motivation, commitment and ultimately
individual and work-unit performance. It refers to the quality of
working environment. Creating a ‘healthy’ organizational
climate requires attention to the factors which influence
employees’ perceptions including the quality of leadership, the
way decisions are made and whether the efforts of the
employees are valued.
1.1 Purpose of the study
The studies investigate the link between organisational
climates with corporate performance. It is hypothesized that a
positive climate will encourage and improve performance, while
a negative climate will discourage and inhibit performance.
Professional colleges such as those training students in the
fields of medicine, engineering, management, pharmacy,
architecture etc, are responsible for developing these students
into high quality professionals who will then be responsible for
the future nation. To achieve this, it is therefore necessary to
ensure that the faculty members – the employees mainly the
lecturers must be satisfied with the organisational institute
within which they work.
1.1.1 Related studies
It is important to mention that there have been many studies
examining organisational climate and its affect on performance
over the past three and a half decades. The findings of such
studies can provide management with evidence for them to
consider whether or not to make changes within their
organisation. Such studies include:

• G James Francis & Gene Milbourn Jr. pg 92 “Organisational


climate has helped to develop as a mature concept in
management.”

• Mark A Shadur, Rene Kienzie & J Rodwell their study “The


Relationship between Organisational Climate and
Employee Perceptions of Involvement,” found that
employee perceptions of participation in decision-making,

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teamwork and communication created an employee
supportive environment with greater job satisfaction.

• Davidson, Michael Cameron Gordon in the study


“Organisational Climate and its Influence upon
Performance” studied Australian Hotels and found that
there is a direct link between organisational climate and
financial performance.

• Chris Watkins, Hay Group, UK conducted a survey of 10


bottling plants in one of the world’s largest soft drinks. The
survey “How to Improve Organisational Climate” was
published in the journal ‘People Management in June 2001.
The results showed the most favourable working
environment were also the most profitable. The research
building upon Litwin and Stringer at Harvard University
indicates 50-70% of organisational climate can be traced
to its leadership or management style.

1.2 Who are the subjects of this study


This study has been conducted from a random sample size
from professional colleges of Indore District limited to only
the teaching faculty of these colleges. The study conducts
research according to the employees’ point of view.
1.3 Aims and Objectives
• To study the present climate of professional colleges
• To provide suggestions for improvement of the climate
1.4 How the study is investigated
• Based on primary data collection using a survey
• Using a 4-point scale questionnaire on faculty members
developed by T. V. Rao
• Allowing 4 types of responses Strongly Disagree, Disagree,
Agree, and Strongly Agree. The scores to these responses
are 1, 2, 3, 4.
• Questionnaire administered on 40 randomly selected
faculty members (23 male and 17 female) of professional
colleges of Indore District.
• Item-wise score of each respondent of agreement options
was found in percentage.

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• Mean was calculated in percentage and used in placing it
in different ranges
• Average mean scores of items related to specific factors
are also calculated to find conclusions. It is also used to
compare different demographic details of employees
• According to Z-Test a sample above 30 is considered as
large so the Z-Test proportion is used for the analysis of
data.

2. Key Findings and Analysis

Table 1
Mean Score and Rating
Mean Score Range/True Statement Rating
3.5 – 4.0 85% and above Excellent
3.2 – 3.5 75% - 84% Very Good
2.9 – 3.2 67% - 74% Good
2.6 – 2.9 59% - 66% Satisfactory
2.3 – 2.6 50% - 58% Inadequate
2.0 – 2.3 40% - 49% Poor
<2.0 <40% Very Poor

Table 2
Demographic Details of Employees
Male Female Total
Average age in years 40.34 43.35 41.84
Average length of service 13.41 12.05 12.73
Designation
Lecturer 37.5% 27.5% 65%
Assistant Professor 2.5% 10% 12.5%
Professor & Above 17.5% 5% 22.5%
Qualification
Graduate 27.5% 17.5% 45%
Postgraduate 22.5% 22.5% 45%

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Doctorate 7.5% 2.5% 10%

Table 3
Average Mean Score with Respect to Factors of
Organisational Climate
S. Factors Male Femal
No e
1 Development of 3.13 3.11 GOOD
employees
2 Leadership 3.02 3.06 GOOD

3 Recruitment and 3.28 3.50 V.GOOD


Promotion
4 Training 3.20 3.35 V.GOOD

5 Cooperation 3.08 3.17 GOOD

6 Innovation 3.05 3.04 GOOD

7 Commitment 3.04 3.11 GOOD

8 Trust 3.05 3.07 GOOD

9 Interpersonal Relations 2.91 3.05 GOOD

10 Authority 2.82 3.11 SATISFACTORY/GO


OD
11 Performance Appraisal 3.09 3.14 GOOD

12 Responsibility 2.82 3.11 SATISFACTORY/GO


OD
13 Decision Making 2.52 2.66 INADEQUATE
14 Communication 2.03 2.41 POOR/INADEQUAT
E
15 Physical facilities and 2.07 2.16 POOR
social security

16 Reward 2.54 2.73 INADEQUATE/SATISFA


CTORY

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17 Counselling 2.21 2.22 POOR

18 Job security 2.50 2.90 INADEQUATE/SATISFA


CTORY

2.1 Results Explained for Table 3


2.1.1 Development of Employees
• The average mean score of 3.12 on the views of the
employee’s state that 67%-74% believe development of
subordinates by superiors are good. Male and female have
similar perceptions.

2.1.2 Leadership
• The average mean score 3.05 on the views of the
employee’s perception on leadership are good. Male and
female employees with Post-Graduate and Doctorate
degrees are best satisfied with leadership available to
employees.

2.1.3 Effectiveness of Recruitment Procedure &


Promotion System
• The average mean score 3.12 on the views of the
employee’s perception on recruitment and promotion is
very good. Both male and female employees with Post-
Graduate and Doctorate degrees have no significant
difference.

2.1.4 Training
• The average mean score 3.2 on the views of the
employee’s perception on training is very good. Female
employees have greater satisfaction than that of men.
Female employees with a length of service up to ten years
have the greatest satisfaction.

2.1.5 Cooperation

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• The average mean score 3.12 on the views of the
employee’s perception on cooperation is good. Female
employees feel better cooperation than men with the
same length of service.

2.1.6 Innovation, Changes and their Management


• The average mean score 3.05 on the views of the
employee’s perception on innovation, changes and their
management are good. There is a significant difference
between male and female. Male employee’s age group 38-
50 mean 3.5 and that of female employees with Post-
Graduate and Doctorate and higher posts with a mean of
4.0 is Excellent.

2.1.7 Commitment
• The average mean score 3.07 on the view of the
employee’s perception on commitment are good. Female
employees feel that management’s commitment is
satisfactory, while male employees with higher posts like
reader and professor feel it good.

2.1.8 Trust
• The average mean score of 2.85 on the view of the
employee’s perception on trust are satisfactory. Female
employees feel that the trust level is good.

2.1.9 Interpersonal Relations


• The average mean score of 2.95 on the view of the
employee’s perception on interpersonal relations are
good. Female employees feel the relations with greater
intensity than that of male employees.

2.1.10 Authority
• The average mean score of 2.95 on the view of the
employee’s perceptions on authority is satisfactory
according to the males. Females score is significantly
higher resulting in good.

2.1.11 Performance Appraisal

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• The average mean score of 2.92 on the view of the
employee’s perceptions on performance appraisal is good.
Male and female employees agree equally.

2.1.12 Responsibility
• The average mean score 2.95 are the opinion that higher
officers discharge their responsibilities effectively towards
their subordinates. Male lecturers view acts of
responsibilities as satisfactory whereas females view it as
good.

2.1.13 Decision-Making
• The average mean score of 2.5 states that 50%-58%
employee’s feel that they do not get adequate chances of
their involvement in the process of decision making in the
organisations. Perception of male and female members
about decision making is almost the same.

2.1.14 Communication
• The average mean score of 2.32 of the view of the
employee’s perception on communication regarding
feedback to subordinates is poor. General communication
average mean score is 3.3 is good. Male employees of the
age group 38-50 and female post of reader and professor
find feedback system inadequate.

2.1.15 Physical Facilities and Social Security


• The average mean score of 2.08 states that most of the
employees are not satisfied with the physical facilities and
social security such as telephone, office facilities, canteen,
medical, transportation etc, being provided to them from
their organisations. Male employees of the age group 38-
50 and female employees at the post of reader/professor
find physical facilities very poor.

2.1.16 Reward
• The average mean score of 2.62 of the view of employee’s
perceptions on reward states that reward is almost

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inadequate. There is little difference between male and
female opinions.

2.1.17 Counselling
• The average mean score of 2.22 of the view of employee’s
perception on counselling facilities available to the
organisation is unsatisfactory. 40%-49% employees are
not satisfied, male and female employees have almost the
same perception that it is poor.

2.1.18 Job Security


• The average mean score of 2.6 of the view of employee’s
perception on job security is satisfactory. Female
employee’s age group 51-62 perceive it better than male
employees. Male employee’s age group 25-38 perceive
job security as inadequate.

3. Conclusion
Organisational Climate studies the employees' perceptions and
perspectives of an organization. The surveys address attitudes
and concerns that help the organization work with employees
to instil positive changes. Organisational climate surveys
increase productivity. Climate surveys give employees a voice
to assist in making desired transitions as smooth as possible. It
also serves as a basis for quality improvements. By identifying
areas of inefficiency and acting on performance barriers
identified by employees of all levels, an organization gains a
fresh and different perspective. Survey analysis identifies areas
of employee satisfaction and dissatisfaction to facilitate
management in the creation of greater workplace harmony
and, therefore, increased productivity.
The aim of this study was to examine the present
organisational climate of professional colleges at the Indore
District. The study was based on the recognition that a good
healthy organisational climate affects employee’s performance.
Once an investigation is complete then suggestions for
improvement can be made. The research also implies that

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professional colleges have a responsibility towards its
performance in producing and developing students into
responsible professionals of the future which in turn will affect
the nation. The research was based on primary data collection
using questionnaires. It can be argued here that the main
limitation of this study was its sample size because it only
focused on the Indore District of randomly selected professional
colleges. The research was also limited to teaching faculty
employees of these colleges. The Z-Test was also the only
method used for the assessment of the answers to give the
mean score. On completion of the research survey conducted
at the Indore District Colleges; it is concluded that 60% of the
faculty members of the professional colleges are satisfied with
the climate of their organisation. The factors that determine a
healthy climate such as: development of employees,
leadership, recruitment & selection, training, cooperation,
innovation, commitment, trust and performance appraisal all
received higher score ratings as either very good or good. The
factors regarding; decision-making, communication and
counselling, physical facilities and social security and
reward received a mixed response from inadequate, poor and
satisfactory. These are the main areas of concern for the
organisations to improve on. As previous studies have shown
the importance of organisational climate has a direct link with
corporate performance. . Conclusions are drawn from this data,
and recommendations are made to the management team.

4. Recommendations
• 4.1 Decision Making
Top management should devote enough time to its
colleges so that its members can themselves be included
in the decision-making process. This can result in
motivation for employees. Providing more responsibility to
its faculty members to contribute to the decision making
process is one of the key factors to establishing a good
organisational climate. If an employee is involved in the
decisions and choices for the future of the organisation

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then they are more likely to participate in achieving those
decisions that have been made.

• 4.2 Communication and counselling


75% of employees find that there is no counselling at the
end of their performance appraisal. It indicates that they
are unable to know their Strengths, Weaknesses properly.
If they want to improve their performance further, they
get no feedback. Employees need to solidify their
strengths and minimise their weaknesses. It will add to the
total performance of the colleges. Employees should be
provided counselling whenever they need it. Guidance and
counselling cells should be opened guidance and
counselling as per need of organisation. Professional
colleges increase the effectiveness of their communication
system. They should realize the importance of feedback in
communication. Good communication is the soul of an
organisation.

• 4.3 Physical facilities and social security


Physical facilities should be improved so that people feel
satisfied with their jobs. The organisation needs to invest
in the facilities to improve areas such as equipment
(telephones), better canteen facilities and transportation.
Employees should be provided social security;
organisations in most western countries are legally bound
to provide social security. All these work toward a better
organisational climate.

• 4.4 Reward
55% employees feel that there are not enough ways to
regard good work done by them; they should be rewarded
in as many as possible ways. All financial and non-financial
ways should be used so that the employees feel motivated
for further good work. It will also work as motivation for
others.

5. References

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• T. V. Rao 4 point scale and Z-Test
• Lecturer, Department of Humanities, Shri Vaishnav
Institute of Technology and Science, Indore
• Officer on special duty, Shri Vaishnav, Vidyapith (Deemed
University), Indore, and former Director, Shri Vaishnav
Institute of Management, Indore

Bibliography
• G James Francis & Gene Milbourn Jr. pg 92 “Organisational
climate has helped to develop as a mature concept in
management.”

• Mark A Shadur, Rene Kienzie & J Rodwell their study “The


Relationship between Organisational Climate and
Employee Perceptions of Involvement,”

• Chris Watkins, Hay Group, UK conducted a survey of 10


bottling plants in one of the world’s largest soft drinks. The
survey “How to Improve Organisational Climate”

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14