Asian Journal of Managerial Science
ISSN: 2249 - 6300 Vol. 2 No. 2, 2013, pp. 30-36
© The Research Publication, www.trp.org.in
A Study on Organizational Climate in an Information
Technology Industry
Sharmila1 and A.Gokulakrishnan2
1
Assistant Professor, Department of HRM, Bhaktavatsalam Memorial College for Women, Chennai - 600 080,
Tamil Nadu, India
2
Assistant Professor, Department of Management Studies, Sakthi Mariamman Engineering College,
Chennai - 602 105, Tamil Nadu, India
E-mail: mails2krishh@gmail.com
(Received on 15 June 2013 and accepted on 10 August 2013)
Abstract - Organizational climate is comprised of mixture
In fact number of studies have try measure organizational
of norms, values, expectations, policies and procedures that
climate in the perceptual sense of climate. The organization
influence work motivation, commitment and ultimately,
provides rewards and punishment of varying nature or
individual and work unit performance. The objective of
different kind of behavior, this influence individual behavior
the study to identify the extend of awareness about better
evaluation. The performance of employees has influence on
organizational climate, and to identify the attitude of employees
behavior of a person, amenities provided to the employees,
towards the prevailing organizational climate. Considering the
the interpersonal relations Organizational climate is about
nature, extent and time consistent sample size of 300 have been
the perceptions of the climate and about absolute measures.
chosen for this study. The present study aims at identifying the
Climate, as a metaphor is helpful - e.g. temperature is a
organization climate and perception of the employees views on
measurable element of geographic climate, but it is not
their organization climate. From this study it is apparent that
the absolute temperature that matters as much as human
the employees are aware about their organization climate which
perception of it (is it cold, hot, or comfortable?). It is only
is evident from the response of the respondents. The majority of
after knowing what temperature means in terms of human
the respondents have the positive attitude towards the prevailing
comfort, that measurement of temperature becomes useful.
organizational climate. The most respondents perceive that the
Complicating perception is the probability that what may be
organization climate is favorable for them.
too cool for one person may be too warm for another and just
Keywords: Organizational Climate, Information Technology right for someone else.
Industry
Similarly for organizations, the ‘climate’ may be regarded
I. Introduction in absolute terms and measured by instruments, but is ‘felt’
differently by individuals. The absolute climate may suit
The Organizational climate varies from organization one person and not another. “What it’s like to work here” or
to organization and from time to time in the case of same ‘How I feel when I work here”.
organization. Organization climate may have positive
and negative effect on employee behavior and in return Climate is worthwhile to understand and measure because
organizational performance. Recognizing the effect of there are organizational and human benefits a ‘good’ climate,
organizational climate on organizational performance, and powerful disadvantages of many kinds of bad climate
increasing interest is shown in understanding and application etc.
of organization climate.
AJMS Vol.2 No.2 July - December 2013 30
A Study on Organizational Climate in an Information Technology Industry
II. Objectives Of The Study of expectations about what consequences will follow from
different actions. Individuals in the organization have certain
1. To identify the extent of awareness about better
expectations depends upon their perception as to how the
organizational climate;
organizational climate suits to the satisfaction of their needs.
2. To identify the attitude of employees towards the
prevailing organizational climate; Organizational climate that energizes workers to produce
their best can improve profit as much as 30 percent by
3. To identify the factors that affects the organizational
increasing revenues, lowering costs and improving customer
climate;
loyalty. And these positive effects of organizational climate
4. To analyze the influence of determinants of organization have been proven time and time again.
in organizational climate;
Higher productivity is expected from people with skills
5. To identify the influence of organizational climate in and attitudes that are associated with independence of
organizational development. thought and action and the ability to be productive in free
III. Need for The Study and innovative climate. Performance is expected to be more
predictable for employees who work in consistent climate
Organizational climate serves as the guidelines for than those who work in an inconsistent organizational
dealing with people, and has a major influence on motivation climate.
and productivity of individuals as well as total work group.
It govern employee behavior by prescribing what types of The perception of the extent of organizational constraints,
behavior will be rewarded and what will be punished. Thus, an rules, regulations, individual responsibility feelings of
organization can influence and motivate people to behave in autonomy of being one’s own boss; rewards, feeling related
desired manners that suit to organizations. The organizational to being confident of adequate and appropriate rewards; risk
factors shape and improve employees’ perception towards and risk-taking perceptions of the degree of challenge and
organization and their jobs. risk in the work situation; warmth and support feelings of
general good fellowship and helpfulness prevailing in the
An organizational climate that gives its members a clear work setting, and tolerance and conflict-degree that the
vision of the organization’s mission also percents consistent climate can tolerate differing opinions.
image to its markets, customers and client over time, the
image can give an organization a competition advantage V. Research Methodology
by building commitment to its products and services. The Fundamental to the success of any formal research project
organizational climate factors shape and improve employee’s is a sound research design. A good research design has the
perception towards organization and their jobs. characteristics of problem definition, specific methods of
An atmosphere of cooperation opens access among group data collection and analysis, time required for research
members and creative individual motivation to exchange project and estimate of expenses to be incurred. The function
knowledge within the group members resulting in more of a research design is to ensure that the required data are
productivity. So it is necessary that the management of collected accurately and economically. A research design is
corporations should strive to create a congenial organizational purely and simply the framework or plan for the analysis of
climate in the organizations to improve the economic data.
condition of the country. A.Research Design
IV. Scope Of The Study Every research project conducted scientifically specifies a
Organizational climate has a major influence on human frame work for controlling of data. This frame work is called
performance through its impact on individual motivation research design. The Research design used in the study is
and job satisfaction. It does this by creating certain kinds descriptive research design.
31 AJMS Vol.2 No.2 July - December 2013
Sharmila and A.Gokulakrishnan
B.Sample Size For 8 degree of freedom from table F of Chi- Square
distribution.
Sample size is fraction or a part of total number of ele-
ments or units in defined population. Considering the nature, Table value of Chi- Square = 26.296 at 5% level of
extent and time consistent sample size chosen for these 300 significance
employees.
C.Limitations of the Study
Calculated value Chi-Square = 25.06
1. The time was the major constrain so the number of re-
The table value = 26.296 >Calculated value Chi-Square=
spondent was strictly restricted to 300. The sample se-
25.06
lected for the study is very small compared to the total
population of the organizations. The computed value of Chi-Square is less than the table
value of Chi-Square at 5% level of significance.
2. The study is limited only to top four IT companies. These
companies are selected based on National Association of Hence it is to be taken that null hypothesis is accepted and
Software Service Companies (NASSCOM), January 1, it is said that there is no evidence of significant relationship
2011. between ages of the employees with the relationship with
their superiors.
3. And the study is conducted only with reference to Chen-
nai IT companies. Table II Relationship Between The Marital Status Of The Employees
withComfort Ability of Employees in Providing 24/7 Technical Support
to The Organization
4. The questionnaires are mostly circulated among the
fresher and middle level employees in the companies.
VI. Data Analysis
Table I Relationship Between The Ages of The Employees and Their
Relationship With The Superiors
Alternate Hypothesis (H1) - There is significant difference
between the marital status of the employees with comfort
ability of employees in providing 24/7 technical support to
the organization as and when required in the organization.
Null Hypothesis (Ho) - There is no significant difference
between the marital status of the employees with comfort
Alternate Hypothesis (H1) - There is significant ability of employees in providing 24/7 technical support to
relationship between ages of the employees with the the organization as and when required in the organization.
relationship with their superiors.
Degree Of Freedom
Null Hypothesis (Ho) - There is no evidence of
Degree of freedom = (r-1) (c- 1)
significant relationship between ages of the employees with
= (2-1) (2-1)
the relationship with their superiors.
= 1df
Degree Of Freedom
For 1 degree of freedom from table F of Chi- Square
Degree of freedom = (r-1) (c- 1) distribution
= (3-1) (5-1)
= 8 df
AJMS Vol.2 No.2 July - December 2013 32
A Study on Organizational Climate in an Information Technology Industry
Table value of Chi- Square = 3.84 at 5% level of Table III Gender of The Employees With The Employees Completion
significance of Work On Time
Calculated value Chi- Square = 9.428
The table value = 3.83 < Calculated value Chi- Square = Null hypothesis
9.428
Ho: There is no significance difference between the genders
of the respondents
The computed value of Chi- Square is greater than the
table value of Chi- Square at 5% level of significance. Ho a: There is no significance difference in the completion
of work on time.
Hence it is to be taken that null hypothesis is rejected and
Alternativehypothesis
it is said that there is significant difference between the marital
status of the employees with comfort ability of employees in H1: There is a significance difference between the genders of
providing 24/7 technical support to the organization as and the respondents.
when required in the organization.
H1a:There is a significance difference in the completion of
work on time.
Anovas Two-Way Table
F1 calculated value= 0.024 F1 table value=161.4 Interpretation:
F2 calculated value=0.046 F2 table value=161.4 • There is no significance difference in the education-
al level of the respondents.
F1 calculated value < Table value So, Ho is accepted
• There is no significance difference in taking correc-
F2 calculated value < Table value So, Ho is accepted
tive action by the superior.
Table IV Facilities Provided in The Organization and The Opinions of The Employees on IT.
33 AJMS Vol.2 No.2 July - December 2013
Sharmila and A.Gokulakrishnan
Null hypothesis Alternativehypothesis
Ho: There is no significance difference between the opin- H1: There is a significance difference in the opinions
ions of employees regarding the facilities provided in the or- of employees regarding the facilities provided in the
ganization. organization.
Anova One Way Table
F- Ratio calculated value = 1.45 Table value= 2.6 evaluation seeks to determine the relative worth of each
F- Ratio calculated value < table value. So, Ho is accepted. job so that salary differentials can be established.
Interpretation 3. And the organization as awhole can provide the employees
an opportunity for their carrier growth and development.
There is no significance difference between the opinions The relationship between superior and subordinate can be
of employees regarding the facilities provided in the improved through realization that each one is dependent
organization. on the other for better performance and success. By
VII. Suggestions facilitating the employees to do introspection, self
evaluation and clear goal setting can modify their
1. The employee’s involvement in an organization stands behavior. Better interpersonal relationship leads to tem
for involving employees in various decisions making building and the coworkers in the organization can help
and other process in the organization in order to increase one another in every case so that they can easily achieve
the individual as well as organizational effectiveness. their organizational objective.
The employee involvement can be achieved through
providing authority and power to make work related 4. The pay given to the employees working in the
decisions, transparency of information, increasing the organization should satisfy all their needs so that they
knowledge of the employees and providing reward for can work with more involvement and commitment in the
desirable behavior. The organization should also provide organization for a longer period of time. The pay given
some extend of job freedom to the employees. to the employees should in par in the industry.
2. Performance appraisal gives the superior an opportunity 5. Employer should recognize the employees’ hard work
to indicate the employees’ goals and plans as well as then and there and the rewards should be given to the
highlighted needs and requirement for their growth and employees as soon as possible after the performance has
development. The superior can evaluate the employee’s taken place. The Superiors should look for any employee
performance always and advice the employees to take doing something right, right now and recognize it. The
steps for higher achievement. Performance appraisal employees can be given a chance of choosing their own
offers competitive advantage to a firm by improving rewards from the rewards catalogues in the organization.
performance, helping make correct decision, minimizing Even a word of mouth appreciation for him would
job dissatisfaction and employee turnover .Performance encourage the employee to maintain the same level of
AJMS Vol.2 No.2 July - December 2013 34
A Study on Organizational Climate in an Information Technology Industry
performance or do even better. Thus the company should are doing and what can be done to improve performance
recognize the employee’s work which motivates the if it is below standard. For organizations to function
employees towards the work. successfully effective communication is a basic requisite.
5. The organization can encourage the leaders to develop 10. All the employees working in the organization should
some of the positive self leadership capabilities in other be provided proper healthy hygienic canteen facilities
employees so that they can improve the job attitude because food is the basic need for the employees.
of the employees working in the organization. The
11. The organization can provide the employees with flexible
Superiors can also give the employees short term specific
time option such as work from home, by providing laptops
suggestions always to improve the performance in order
so that they are comfortable to provide 24/7 technical
to accomplish their objectives.
support as and when required in their organization which
6. Punishments are used to force the workers to obey the leads to increase their job satisfaction as well as create a
rules and regulations. More fear about punishment will better organizational climate.
leads to unhealthy work environment. The employees by
remaining disciplined convey their willing acceptance VIII. Conclusion
to the rules and regulations of the organization. The An organization can be considered as effective only when
management has to prescribe proper code of conduct it exerts a positive influence on, the working atmosphere and
for the employees. The employees must know what they the employee’s relationship. It must be capable of responding
can and cannot do failure on the part of the employer to the stimuli from the outside environment.
to determine a proper code of conduct would lead to
indiscipline. The organizational climate is an assert of relatively
ensuring properties of the work environment that are
7. Now day’s organizations are undergoing lot of
perceived by the employees serves us facilitators stimulators,
technological changes. Hence the employees at all levels
evaluators and perception shapers which in turn improve the
must be trained. The work in the new technologies. From
employee behavior and performance.
the organization point of view they have to motivate the
employees and give them a space to learn and try new The present study is aim at identifying the organization
techniques in their organization. climate and perception of the employees views on their
8. The superior has to ensure that there are cordial organization climate. From this study it is apparent that
relations among his group members and they work in an the employees are aware about their organization climate
atmosphere of proper cooperation and coordination. If which is evident from the response of the respondents. The
there is any misunderstanding among his subordinate the majority of the respondents have the positive attitude towards
superior must do his best to set it right. So that healthy the prevailing organizational climate. The most respondents
relationship can be maintained between superior, peers perceive that the organization climate is favorable for them.
and subordinates. The overall assessment of the organization climate state
that the most of respondents have a positive perception of
9. The flow of communication in an organization should the various dimensions of the organization. The most the
be a two way process then only both the superiors and employees perceived the organizational climate has positive
the subordinates can maintain an excellent flow of influence on the organizational development.
communication in an organization. . Managers can carry
out their management functions only by interacting If a company wants to become more creative, rather than
and communicating with others. Interpersonal, inter just encouraging people or teaching tools, then perhaps the
group and intra group communications are essential for best way is to develop the organizational climate. “Rather
information to flow, ideas to generate and feelings to than telling the plants to grow, this is about tending to the
be exchanged. Communication fosters motivation by soil in which they can become what they are capable of
clarifying to employees what is to be done, how well they becoming”.
35 AJMS Vol.2 No.2 July - December 2013
Sharmila and A.Gokulakrishnan
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