The Impact Of Organizational Climate

The need for understanding the importance of organizational climate has become a major area of discussion as the success of an organization depends upon the performance of its employees and the employee’s performance depends upon the level of job satisfaction that they have for which the climate of organization is responsible. The idea of conducting this research is to evaluate how climate affects employee’s feelings about their job. (Gilbert A. Churchill, 1976).Successful organizations realize the importance of pleasant work climate which motivates employees and enhance job performance and satisfaction. The Climate examines employee opinions about the quality of their organization’s work climate and it can be used to identify opportunities for workplace improvements.

PURPOSE

The purpose of this study is to examine the impact of different organizational climate variables on the job satisfaction of employee’s and their level in OG2 and OG3.

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OBJECTIVE of the Study:

To determine the various factors which influence the employees job satisfaction at workplace?

To analyze the Job Satisfaction in Banking Sector.

To access the general problems of job dissatisfaction in organizational climate face by the employees.

Statement of the Problem:

Job Satisfaction is desired to be higher in organization, and job dissatisfaction is considered to be a factor leading to inefficiency of employees. It has been observed that job climate factors influence the overall satisfaction level. This study tries to identify in Pakistani Banking environment which factors have a strong correlation with Job Satisfaction.

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MODEL FRAMEWORK TO BE USED:

Communication

Autonomy

Innovation

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Role Ambiguity

Role Conflict

Experience

Pay level

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Job Security

Advancement Opprtunities OOOOOOOpportunities

Supervision

Reward and Compensation

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Influence Over Standards

Feedback

Organizational Climate

Job Satisfaction

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In this research the above mentioned model is used in order to find out the impact of Organizational Climate on Job satisfaction, therefore the focus is on the dimension that has been derived from the Organizational Climate that how these will affect the Job Satisfaction.

VARIABLES TO BE STUDIED:

Dependent variable

Job Satisfaction

Independent Variable

Communication

Autonomy

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Innovation

Role ambiguity

Role conflict

Level of industry experience

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Pay level

Job security

Advancement opportunities

Supervision

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Influence over standards

Reward and compensation

Feedback

To measure the Job Satisfaction through the following dimensions of organizational climate variables.

1. Communication: Effective communication at work places contributes significantly towards the performance of employees and increases job satisfaction. (Gilbert A. Churchill, 1976)

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2. Autonomy: More autonomy is associated with greater job satisfaction because workers have more freedom to determine their own effort and work schedule. (Ivancevich, 1974).

3. Innovation: Innovation is ongoing process. It is requirement of every job but due to scare resources it would lead to dissatisfaction and pessimistic in employees approach. (Gilbert A. Churchill, 1976)

4. Role Ambiguity: Employees suffer from role ambiguity when they don’t have necessary information to perform their job, and this lack of clarity will impact their job satisfaction. (Gilbert A. Churchill, 1976)

5. Role Conflict: Role conflict occurs when expectations and demands of two or more of his role partners are incompatible and this will impact their job satisfaction. (Gilbert A. Churchill, 1976)

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6. Experience: Job satisfaction differs in employees based on their work experience they have. As the employee’s gain more experience they got more understanding about their job and they learn how to cope up with work environment. (Gilbert A. Churchill, 1976)

7. Pay Level: Pay level positively influence Job satisfaction. (Agarwal, 1993)

8. Job Security: Include features of job situation, which leads to assurance for continued employment, either with in the same company or within same type of work profession. (Ingram an Bellenger1983, Churchill,1979)

9. Advancement Opportunity: It refers to all aspects of job which individual sees as potential sources of betterment of economic position, organizational status or professional experience, and the extent to which employees get opportunities to grow (Churchill, 1974)

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10. Supervision: It refers to relationship of workers with their supervisors and to measure the extent to which supervision experienced by employees leads to job satisfaction. (Gilbert A. Churchill, 1976)

11. Influence over Standards: If employees feel they have influence in determining company policies and standards then this will effect positively on their job satisfaction. (Gilbert A. Churchill, 1976)

12. Reward and Compensation: The extent to which rewards and compensation are provided by the organization for meeting the objectives and how it effects their job satisfaction. (Churchill, 1974)

13. Feedback: The degree to which organization provides feedback to their employee on their performance and how it effects employee job satisfaction. (Teas, R. K. 1983).

PROPOSED RESEARCH HYPOTHESIS:

H1: The more frequent the communication between an employee and his manager, the greater the employee overall job satisfaction.

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H2: The greater the autonomy the employee feels he has in performing their job the greater the employee overall job satisfaction.

H3: The greater the amount of innovativeness the employee feel is required him for performing his job, the lower the employee overall job satisfaction.

H4: The greater the degree of role ambiguity, the lower the employees overall job satisfaction.

H5: The greater the role conflict, the lower the employee overall job satisfaction.

H6: The longer the time, the employee spent in his current position, the higher the employee overall job satisfaction.

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H7: The greater the pay level, the higher the employees overall job satisfaction.

H8: The greater the job security the employee feels he has, the greater the overall job satisfaction.

H9: The greater the opportunity for professional growth, the employee has in his work climate the greater the employee overall job satisfaction.

H10: The more closely the employees feel his performance is supervised, the greater the employee overall job satisfaction.

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H11: The greater the influence the employee believes he has in determining the standards by which his performance is supervised and evaluated the greater the salesman overall job satisfaction.

H12: The greater the reward and compensation provided by the organization for the performance the greater.

H14: The more frequent the feedback is provided to employee on their performance, the greater the employee overall job satisfaction.

SOURCES OF INFORMATION:

Respondents will be employees of banks in Pakistan from OG2 and OG3 level. The study undertaken here to be mainly based on the primary data through structured questionnaire. The study also contains secondary data i.e. data from authenticated websites and journals for the latest updates.

SAMPLING TECHNIQUE AND PROCEDURE:

The study intend to use convenience based Sampling. The Banking sector of Pakistan is the targeted segment for the collection of primary data through structured questionnaire. Sampling is done on the basis of sources used, in order to approach the respondents, in 5 banks in Karachi would be selected on the basis of easy geographical access and personnel references and whichever employee would be available easily.

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SAMPLE SIZE:

The sample size used is 250 employees from 5 banks of Pakistan.

METHOD OF DATA COLLECTION AND PROCEDURE:

The Banking Sector of Pakistan is the targeted segment for the collection of primary data through structured questionnaires which is designed on the basis of research articles related to the topic. All employees from level OG2 and OG3 would be the participants. The data that would be collected from respondents will be used for statistical work.50 respondents from each bank will be selected.

INSTRUMENTS OF DATA COLLECTION:

The study undertaken here to be mainly based on primary data i.e. structured questionnaires are designed from the authentic resources of published questionnaires used by the researchers for the related filled by the employees of the banks. The questionnaire consist of variables which include communication, autonomy, innovation, role ambiguity, role conflict, experience, pay level, job security, advancement opportunities, supervision, influence over standards, rewards and compensation and feedback, that will be used to measure job satisfaction. All answers will be recorded in the Likert five point scales.

Strongly Agree = 5 Agree = 4 Neutral= 3 Disagree= 2 Strongly Disagree = 1

STATISTICAL TEST IS TO BE USED:

The statistical technique multiple regression will be used to explore the relationship between these variables.

POSSIBLE RESEARCH FINDINGS:

The research findings might result in the following out comes:

Organizational Climate has a greater impact on employee’s job satisfaction. Job satisfaction differs in different level of employee’s .This research might indicate that which of the predictors variables have positive correlation with job satisfaction.

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