Description
The fast changing world and face of various economies have generated lot of complexities in the business environment .Stiff competition, innovation and research are the key factors that govern success in modern organization
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IMPACT OF ORGANISATIONAL CLIMATE ON IMPACT OF ORGANISATIONAL CLIMATE ON IMPACT OF ORGANISATIONAL CLIMATE ON IMPACT OF ORGANISATIONAL CLIMATE ON
JOB SATISFACTION JOB SATISFACTION JOB SATISFACTION JOB SATISFACTION – –– –A COMPARATIVE STUDY A COMPARATIVE STUDY A COMPARATIVE STUDY A COMPARATIVE STUDY
Reecha Ranjan Singh
1
, Amit Chauhan
2
, Sangeeta Agrawal
3
, Saurabh Kapoor
4
1
Deptt. of Mgt. Omakarananda IMT, Rishikesh Uttrakhand (India)
2
Deptt. of CSE, Omakarananda IMT, Rishikesh Uttrakhand (India)
[email protected]
3
Deptt. of Mgt. Omakarananda IMT, Rishikesh Uttrakhand (India)
[email protected]
4
Deptt. of Math, IIT Roorkee (India)
[email protected]
ABSTRACT
The fast changing world and face of various economies have
generated lot of complexities in the business environment .Stiff
competition, innovation and research are the key factors that
govern success in modern organization .Human resource and
practicing excellence in all operational and government areas are
the intellectual capital assets that are the keys for the growth and
development of 21
st
century organizations. The consistent
performance and all round success are the keys of governance for
corporate executives who need to work and perform under all
circumstances. Further to develop and retain intellectual assets
and to meet the striving expectations of today’s youth,
organizations need to create favorable organizational climate so
that employees can be satisfied from the jobs and be effective.
Communication sector is one of the premium sectors of India and
Telecommunication Industry is the most integral part of this
sector that is undergoing fast changes because of revolution in
communication sector. This study indicates how various factors
of organization climate correlates with job satisfaction in
Telecommunication sector. The findings of the study indicate the
favorable organization climate enhanced job satisfaction in all
the four companies (Reliance, AIRTEL. IDEA, TATA).
Key words: Intellectual Assets, Governance, Organizational
Climate.
INTRODUCTION
Liberalization of the Indian business environment through
modification in the industrial, trade and fiscal policies by
the government has brought in change and competition of
a magnitude that was previously unknown to Indian
organizations. In the new liberalized scenario, where
multinationals and other global players are competing in
the domestic market with the monopoly players, the
management of organizations is expected to be more
productive and efficient for survival. More than a decade
ago, the western countries faced similar conditions. A
cascade of changing business structures, and changing
leaderships had forced various departments of the
companies to alter their perspectives on their role and
function overnight. As companies moved from an
exclusively bottom line obsession to a focus on customer,
mission and the organization’s role, they were forced to
make changes in their organization to given emphasis
primarily to productivity.
In order to “survive”, Indian organizations are being
forced to undergo massive changes. In this context, it
would be important to identify the factors in the
organizational environment that have the most positive
impact on the performance of the organization.
Among various factors, attitudes and feelings of the
individuals regarding their jobs and job experiences have
been found to be significantly affecting their behaviors.
Herzberg, Mausner, Peterson and Capwell, 2007;
Iaffaldano and Muchinsky, The climate is a relatively
enduring quality of the organization which is experienced
by its members; it has an effect on their behavior, and how
the organization functions. We measured the
organizational climate using seven concepts: trust, morale,
conflict, rewards equity, leader credibility, resistance to
change and scope gating. For a group of 245 Danish
companies, the organizational climate can be summarized
along two dimensions: “tension” and the resistance to
change. Six of the seven variables load on the tension
factor, where the resistance to change is independent.
Using a competing values framework, the four
organizational climates emerge: internal process, rational
goal, developmental and group.
For a fast paced world, the resistance to change is critical
as the traditional episodic Lewinian approach: unfreeze,
change and re-freeze; is too slow and costly. Low
resistance to change permits an organizational design
which can be responsive for the fast paced and rapidly
changing environment. Change must be continuous and
ongoing. Eisenhardt and Brown (1998) argue that
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resistance to change is organizational, ie, change must be
programmed, and it is easier to program change on a
regular basis than intermittent.
For the fast paced world, low tension may be desired and
preferred by individual members in the organization, but
we suggest that it may not be crucial. Further, we argue
that reducing tension and hoping for lower resistance to
change is unlikely, since the two dimensions are
independent for this study.
In the next section, we introduce the notions of tension and
resistance to change in organizational climate. We then
discuss empirical approaches to climate. The empirical
measures depend upon individual responses about the
organization: trust, conflict, and morale, and rewards
equity, resistance to change, leader credibility and scope
gating. Next, we examine climate measures within a
competing values framework. We then present our study
of 245 Danish companies and compare our results with the
Zammuto and Krakower (1991) study. We find the
congruency is quite high. Using a factor analysis, tension
and resistance to change emerge as the two independent
factors. Utilizing a competing values approach, we found
four types of organization: internal process, rational goal,
developmental and group. Finally, we examine the
managerial implications for a fast paced world. Tension
1985 Locke, 1970 Schwab and Cummings, 1970; Petty,
McGee and Cavender
ORGANISATIONAL CLIMATE
Organizational climate is the core circle of human
environment in the boundaries of which the employees of
an organization works .Climate effects each activity in an
organization directly or indirectly and is affected by
almost everything that occurs in the organization. The
survival and growth of any organization is directly
proportional to the favorable climate in it. Employees in
the organization have to be well conversant with rites,
rituals, policies etc. This can only bring sense of
belongings among employees and further help in the
growth of organization .Organization climate is of great
significance for utilization of human relations and
resources at all levels. Organizational climate has a major
influence on motivation, productivity and job satisfaction.
It is also a major motivating factor responsible for
satisfaction and dissatisfaction of employees and affects
the quantum of their turnover. In this study organization
climate and organization culture term have been used
interchangeably Organizational climate has been defined
as the “relatively enduring quality of the internal
environment of an organization that a) is 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 organization” (Taguiri
and Litwin, 1968, p. 27). The climate is the “ether” within
which an organization exists. We outline different views
and research directions that will allow us to integrate a
measure of climate into the multi-dimensional contingency
model (Baligh et al, 1996; Burton and Obel, 1998).
In the literature on climate there has been some confusion
about the relevance and definition of the concept and its
relationship with organization structure and organization
culture (James and Jones, 1974, Schneider, 1990, and
Denison, 1996), where the culture is a pattern of
knowledge, belief and behavior that emerges including
social forms. In the context of the organization social
forms and knowledge in general, culture includes the
organizational structure. The organizational culture is the
organization itself...the form, beliefs, norms, social
patterns, the way things are done, the symbols, rituals, etc.
One reason for the confusion in the literature can be found
in use of climate to represent seemingly different concepts.
Climate can be seen as organizational climate or
psychological climate. Ekvall(1987) states that the
organizational climate mediates in the confrontation
between individuals and the organizational situation.
James and Jones (1974) say that the organizational climate
can be viewed in two different ways: “a multiple-
measurement-organizational attribute approach” or “a
perceptual measurements-organizational attribute
approach.” Both of these approaches are confounded with
organizational structure and processes and the general
organization situation. The organizational climate is
measured using variables like individual autonomy, the
degree of structure imposed as the positions, reward
orientation, consideration, warmth, and support. This is
also the case in the treatment of organizational climate
dimensions presented in Litwin and Stringer (1968) where
organizational climate is measured along the following
dimensions: structure, responsibility, warmth, support,
reward, conflict, standards, identity, and risk. Poole (1985,
p. 84) states that climate seems to be a feature of, rather
than a substitute for culture. That is, a comprehensive view
of culture includes the organizational climate. It is obvious
from the above that measures and dimensions of
organizational climate and organizational culture can be
confused. This has been discussed often in the literature
(Schneider, 1990 and Denison, 1996).
Denison concludes that although the two concepts on the
surface look very different, at a deeper level the clear
distinctions begin to disappear. With the exception of the
first definition for psychological climate, the climate and
the culture definitions and measures are confounded or
overlapping.
For this study, the two concepts are quite distinct. The
climate is the internal atmosphere of the organization. The
culture is the pattern of behavior, which includes the
organizational form. They are not the same, nor is one
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contained in the other. The organizational climate is the
psychological climate of the organization. The definition
of the psychological climate is precise; it refers to the
perceptions held by the individuals about the work
situation. James and Jones (1974) summarize the
psychological climate to be a set of summary or global
perceptions held by individuals about their organizational
environment. The psychological climate is a summary
feeling about actual events based upon the interaction
between actual events and the perception of those events.
The psychological climate has been measured using
dimensions such as disengagement, hindrance, esprit,
intimacy, aloofness, production emphasis, trust and
consideration. 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
organizational unit.” They state that the psychological
climate is the description–and not the evaluation–of
experience. As such, the psychological climate is different
from evaluations, e.g. job satisfaction. In their survey
Koys and DeCotiis report more than 80 different
dimensions found in the literature which has been labeled
a climate dimension.
They set out to find a theoretical-meaningful and
analytical-practical universe of all possible climate
dimensions. They established three rules for a dimension
to be included in the universe.
STUDIES IN ORGANISATIONAL
CLIMATE
The concept of organizational climate has been assessed
by various authors, of which many of them published their
own definition of organizational climate. For those
interested in understanding organizational climate, it is
important to make some distinctions. First, climate and
culture are both important aspects of the overall context,
environment or situation. Culture tends to be shared by all
or most members of some social group; is something that
older members usually try to pass on to younger members;
shapes behavior and structures perceptions of the world.
Cultures are often studied and understood at a national
level, such as the American or French culture. Culture
includes deeply held values, beliefs and assumptions,
symbols, heroes and heroines, and rituals. Culture can be
examined at an organizational level as well. The main
distinction between organizational and national culture is
that people can choose to join a place of work, but are
usually born into a national culture.
A number of studies by Dr Dennis Rose and colleagues
(2001, 2002, and 2004) have found a very strong link
between Organizational Climate and employee reactions
such as stress levels, absenteeism and commitment and
participation. A study by Heidi Bushell (2007) has found
that Hart, Griffin et al.’s (1996) Organizational Climate
model accounts for at least 16% single-day sick leave and
10% separation rates in one organization. Other studies
support the links between organizational climate and many
other factors such as employee retention, job satisfaction,
well-being, and readiness for creativity, innovation and
change. Hunter, Bedell and Mumford (2007) have
reviewed numerous approaches to climate assessment for
creativity. They found that those climate studies that were
based on well-developed, standardized instruments
produced far higher effect sizes than did studies that were
based on locally developed measures
Further a large number of other studies confirmed
Research in organizational climate such as Sharan (2008),
Johannesson (2003), Ganesan (2007)Akhilesh & Pandey
(2006), Virmani & kanchan (2000) explain organization
climate its various parameters and its relationship with
other factors.
Job satisfaction
Investigated by several disciplines such as psychology,
sociology, economics and management sciences, job
satisfaction is a frequently studied subject in work and
organizational literature. This is mainly due to the fact that
many experts believe that job satisfaction trends can affect
labor market behavior and influence work productivity,
work effort, employee absenteeism and staff turnover.
Moreover, job satisfaction is considered a strong predictor
of overall individual well-being (Diaz-Serrano and Cabral
Vieira, 2005), as well as a good predictor of intentions or
decisions of employees to leave a job (Gazioglu and
Tansel, 2002).
Beyond the research literature and studies, job satisfaction
is also important in everyday life. Organizations have
significant effects on the people who work for them and
some of those effects are reflected in how people feel
about their work (Spector, 1997). This makes job
satisfaction an issue of substantial importance for both
employers and employees. As many studies suggest,
employers benefit from satisfied employees as they are
more likely to profit from lower staff turnover and higher
productivity if their employees experience a high level of
job satisfaction. However, employees should also ‘be
happy in their work, given the amount of time they have to
devote to it throughout their working lives’ (Nguyen,
Taylor and Bradley, 2003a).
The following passage summarizes the importance of job
satisfaction for both employers and their workers:
Job satisfaction is important in its own right as a part of
social welfare, and this (simple) taxonomy of a good job
allows a start to be made on such questions as ‘In what
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respects are older workers’ jobs better than those of
younger workers?’ (and vice versa), ‘Who has the good
jobs?’ and ‘Are good jobs being replaced by bad jobs?’. In
addition, measures of job quality seem to be useful
predictors of future labor market behavior. Workers’
decisions about whether to work or not, what kind of job
to accept or stay in, and how hard to work are all likely to
depend in part upon the worker’s subjective evaluation of
their work, in other words on their job satisfaction.
Job satisfaction has been defined in several different ways
and a definitive designation for the term is unlikely to
materialize. A simple or general way to define it therefore
is as an attitudinal variable:
Job satisfaction is simply how people feel about their jobs
and different aspects of their jobs. It is the extent to which
people like (satisfaction) or dislike (dissatisfaction) their
jobs. (Specters, 2007)An alternative approach is that
proposed by Sousa-Pose and Sousa-Pose, based on the
assumption that there are basic and universal human
needs, and that, if an individual’s needs are fulfilled in
their current situation, then that individual will be happy.
This framework postulates that job satisfaction depends on
the balance between work-role inputs - such as education,
working time, effort - and work-role outputs - wages,
fringe benefits, status, working conditions, intrinsic
aspects of the job. If work-role outputs (‘pleasures’)
increase relative to work-role inputs (‘pains’), then job
satisfaction will increase (Sousa-Pose and Sousa-Pose,
2000).
Other theorists (e.g. Rose, 2001) have viewed job
satisfaction as a bi-dimensional concept consisting of
intrinsic and extrinsic satisfaction dimensions. Intrinsic
sources of satisfaction depend on the individual
characteristics of the person, such as the ability to use
initiative, relations with supervisors, or the work that the
person actually performs; these are symbolic or qualitative
facets of the job. Extrinsic sources of satisfaction are
situational and depend on the environment, such as pay,
promotion, or job security; these are financial and other
material rewards or advantages of a job. Both extrinsic and
intrinsic job facets should be represented, as equally as
possible, in composite measure of overall job satisfaction.
This distinction, as described by Rose, relates to the
double meaning of the word ‘job’: the work tasks
performed and the post occupied by the person performing
those tasks.
The meaning of ‘job’ as a post or appointment is of
primary importance. Every job is an instance of the
employment relationship, embodying a contract
(substantive or implied) to exchange an ability to work
(labor, provide service, exercise ingenuity, direct efforts of
others, etc) for rewards (both material and symbolic).
True, performing work tasks provides a stream of
experiences, technical and social, that can energies
psychosocial responses; any resulting data summarizing
these reactions are indispensable. However, such data
must not be weighted higher than those concerning
experience of the overt (or ostensible) contractual terms -
above all, those concerning pay and job security. (Rose,
2001)
LITERATURE REVIEW
Job satisfaction has been one of the most widely studied
concepts in management literature, accounting for more
than 5,000 published works (Wilson, 2007).Information
generated by research into this area had practical
implications for individuals and organizations alike.
According to Wilson (1996), employees want to have the
best quality of life possible for themselves and their
families, and managers are confronted with increasing
challenges of managing effective and efficient
organizations by utilizing human, financial, and
technological resources available to them. Understanding
job satisfaction and what it means is not only desirable
but also a critical aspect of life for both individuals and
organizations. Previous studies have shown that
organizational ethical climate types are related to facets
of job satisfaction.
In his study of non-profit employees, Deshpad2006)
found that a “caring” organizational climate is associated
with high level of satisfaction with Organizations Ethical
Climate Types Caring Independence Rules
Professionalism Efficiency Instrumental Facets of Job
Satisfaction Pay Promotion ?Co-workers Supervisor
Work Overall Job Satisfaction supervisors, and that
instrumental and authoritarian and task oriented climate
types have negative influence on overall job satisfaction
as well as satisfaction with promotion, coworkers, and
supervisors. Similar results were found by Joseph and
Deshpande2007) in their study of nurses in a non-profit
hospital. Vital and Davis (2000) investigated the impact
of ethical behavior of MIS professionals. Among other
things they found that MIS professionals were less
satisfied when unethical behavior was common within
the firm and more satisfied when the top management
was perceived as supporting ethical behavior. Sims and
Kroeck2004) found that ethical fit was significantly
related to commitment turnover, and job satisfaction.
Similarly Koh & Boo, 2001; Wu (2009) studies showed
that ethical climate types are associated job satisfaction.
Based on these findings one may be able to conclude that
organizational ethical climate types are associated with
facets of job satisfaction and overall job satisfaction.
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Studies in Organizational Climate and Job
Satisfaction
Henry and Lenon (2006) infer the commitment to the
organization is an important behavioral dimension which
can be utilized to evaluate employees’ strength of
attachment. Results in a cellular communication point out
that role conflicts and role ambiguity are negatively related
to commitment, but organizational climate, power,
teamwork, satisfaction with work, promotion, are
positively related to organizational commitment, power,
teamwork, satisfaction with work, promotion, are
positively related to organizational commitment
Henry (2009) studied the relationship between job
satisfaction and organizational climate in Rohtak mill. The
main objectives of the study were to see the position of job
satisfaction in employees of the unit taken up, to discover
the existing organizational climate in the unit, to determine
the relationship of individual variables with job
satisfaction and organizational climate. Responses were
taken from 10 supervisors and 25 workers of mill. The
results showed higher dissatisfaction at both levels of
employees, the correlation between overall job satisfaction
and organizational climate was very high, the maximum
number of supervisors was dissatisfied with the items of
promotional opportunities, technical and administrative
information and facilities and present job and department.
On an average, workers assessed the organizational
climate better than supervisors, salary and organizational
climate were positively correlated.
Henry (2005) predicted the association between the
company climate and the productivity that would be
mediated by job satisfaction. In his study of 32
manufacturing companies, subsequent productivity was
significantly correlated in controlled analysis with eight
aspects of the organizational climate and with job
satisfaction. An overall analysis showed that the company
productivity was more strongly correlated with those
aspects of climate that had stronger job satisfaction
loadings.
Further Mafolled2005), Batra & Khanna2003), Mc
Quarrie2005) also studied & related the organizational
climate and job satisfaction in their various respective
studies.
Overview of Indian telecommunication
industry and organization under study
Telecommunication Market in India is one of the most
rapidly growing industries in India. It is considered to be a
real boon not only to the country's economy but also to its
inhabitants as it has made life easier and faster altogether.
The telecom industry in India has grown phenomenally in
5 years. In 2000, the telephone facility was available to
only 3 people out of every 100 persons, whereas in 2005 it
went up to 10.66 persons as against every 100 people. This
outstanding growth in the Indian telecom industry is
considered to be one of the most attractive attributes in the
exponential accretion of wireless phones across the
country. The government of India is planning up for an
increase in the production of telephones by 2007
accounting for around 23 telephones in every 100 persons
by launching 250 million phones in the country. One of
the largest contributors in the alarming success of the
telecom industry in India has been the wireless market that
has leaded the telecom revolution in India. This wireless
market has attracted a number of consumer attentions,
which has brought in larger investiture to India. The Total
Market comprising of semi-conductors in India stood at
USD 2.82 billion in 2005 within which the
telecommunication industry acquired about 45.4 percent of
the total market. The telecom market in India had acquired
around 8 percent of the Indian Total Available Market for
semi-conductors that were valued at USD 1.14 billion.
The equipments for telecommunication are usually
imported in bulks in the name of CBUs and SKDs. This
import-trading sector in the telecommunication industry is
reflected in the Total Market and the Total Available
Market. Some of the major telecommunication markets in
India include wireless handsets found in GSM and CDMA
range, wireless switches, wireless infrastructure
equipments, PBX systems, electronic push button
telephones, access network instrumentation, modems and
VoIP phones. Among all these sectors, the wireless
handsets and wireless infrastructure acquires around 88
percent of the total market of telecom industry which is
considered to be the largest share in the
Telecommunication Market in India as accounted in 2004.
In the Total Available Market, wireless switches are the
most leading sector, as it possesses domestic
manufacturing base. The Telecommunication industry in
India comprises a range of semi-conductor elements
namely DSPs, Analog ICs, ASICs, and Micro controllers.
While the wireless sector in the telecom market in India
was growing leaps and bounds, DSPs acquired the largest
share and brought in large dividends as compared to the
other semi-conductors. The wireless sector was not
introducing newer and innovative sectors which are
absolutely technology based as well. The government of
India has confirmed the phenomenal success of the
telecom industry that will be achieved by it in the years to
come.
We have taken four organizations for our Research study
i.e. Reliance Communications, Bharti Communications,
Airtel Communications, and Idea Communications.
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OBJECTIVES
This study includes two important variables,
organizational climate and job satisfaction in the context
of telecommunication Industry in India .The main
objective of this study are:
• To study the organizational climate.
• To study job satisfaction in managers.
• To analyze relationship between organizational under
study to rank them.
• To inter relate age, experience & salary with
organizational climate and job satisfaction in the
organization, in context of two variables understudy.
• To make suggestions for improvements.
RESEARCH METHODOLOGY
Scope of the study: Keeping pace with the
advancement in country, Telecommunication Industry is
showing tremendous growth and carries great significance
because of the emergence competition. The four
organizations under study are one of the top most
organizations of this industry. This study is an attempt to
find out the root cause of problems related to managers
with organizational climate and job satisfaction .The
person working in the capacity of managers at all levels
have been taken up for study purpose.
Sample for the Study: The study is based on the
collection of responses from executives from all over in
India from each organization, Responses from 112
Executives from Reliance, Idea, TATA Airtel are being
considered for the study.
QUESTIONNAIRES
For measuring organizational climate and job satisfaction
information’s, data are collected through two
questionnaires cum scales which are reliable & well tested
by various researchers.
Organizational Climate Questionnaire: This contain
15 factors of organizational climate, structure
responsibility, reward, initiative, & risk, warmth, support,
standards, conflicts, identity, leadership, delegation,
human relations, communication, grievance handling and
decision making having 45 statements 3 each for every
factor. All executives are divided into three categories on
the basis of the score obtained and mean and standard
deviation that is highly satisfied, moderately and then less
satisfied
Job satisfaction questionnaire: This contains 20
statements regarding different factors that can affect the
satisfaction of person such as promotion, salary,
confidence in management, favoritism, general
supervision, working conditions, qualifications and
experience, job security, team spirits etc. All executives
are divided into three categories on the basis of score
obtained and mean &standard deviation that is highly
satisfied, moderately & then less satisfied.
Results and interpretations:
This study confined to four organizations of
Telecommunications industry in India that is Bharti,
Reliance, Hutch and Idea with a total sample size of 112
respondents (managers of the organizations) across the
country. The results are totally significant on the whole.
On the basis of grand total Mean & standard deviation
calculated for all the two parameters, the various
categories that has been obtained as follows (take table1)
Organizational climate
Highly satisfied (with the climate)
more than 74.94
Moderately satisfied
Between 63.44 to 74.9
Less Satisfied
Less than 63.44
Job Satisfaction
Highly satisfied (with the job)
more than 81.49
Moderately satisfied
between 64.41 to 81.49
Less Satisfied
Less than 64.41
The highest score in the case of organizational climate is
Tata (Mean=78.17) and the lowest in the case of Airtel
(Mean=58.6).For job satisfaction Tata obtain the highest
mean score i.e. 79.8, lowest score in this case is 68.35,
which is recorded by Airtel again. On the basis of these
observations, we may conclude that performance of Tata is
highly significant (taken in table 2). When performance of
Tata and Idea are taken result are altogether different. In
case if Tata the results are better than those of IDEA. So
organizational climate and job satisfaction do not do with
the origin part of the organization
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Table-2: Comparison of all the Four
Telecommunication Companies with
organization Climate and Job Satisfaction
0
10
20
30
40
50
60
70
80
90
100
R
e
l
i
a
n
c
e
I
D
E
A
T
A
T
A
A
I
R
T
E
L
East
West
North
The analysis of the sub factors of organizational climate
(taken from table 3)highlights that certain factors carry
more important such as Initiative and risk, warmth,
conflict, human relation as there is not much variance in
case of these factors in these four organization under study
.
For finding out relationships among the two variables
under study, Spearman’s rank correlation coefficient
technique has been put to user (taken from table 4). On the
basis of this; a correlation matrix has been prepared which
explain that there is positive relationship between
organizational climate and job satisfaction. In the case of
organizational climate and job satisfaction, the value of
correlation coefficient is 0.702.These values reveal that the
topic of research and the variables selected for research are
quite relevant.
The value of t (based on t-test) also indicates that
relationships between organizational climate and job
satisfaction are significant. The calculated value X2 (based
on chi square test) for organizational climate is X
2
=44.66
The value of X
2
at (4-1)3 degrees of freedom and 5% level
of significance is 7.81. Since calculated value of H is more
than table value, thus, we reject the null hypothesis. The
conclusion here is that all 112 executives of different
organization under study feel differently for job
satisfaction and their levels of job satisfaction also differ.
These results conclude that the perception of
organizational climate and levels of job satisfaction also
differ. These results conclude that the perception of
organizational climate and levels of job satisfaction of the
executives are not equal across the four organizations
under study. The executives of the same organizations or
of different organizations have different levels of
organizational climate and job satisfaction. Even after
availing the same type of facilities in the same industry
their satisfaction levels and effectiveness differs. The
conditions and environment of all the four organizations of
telecommunication industry are also different. This
justifies selecting different organization from different
sector of telecommunication industry
Table-3 Comparison of Organizational climate
(Sub Factors)
S.
No
OC Sub
Factors
Relia
nce
Com
m.
AIRT
EL
Com
m.
TAT
A
Com
m.
IDE
A
Com
m.
1 Structure 4.12 2.83 4.30 3.54
2 Responsibi
lity
4.14 3.02 4.35 3.46
3 Reward 4.05 2.86 4.11 3.33
4 Initiative &
Risk
3.87 3.00 3.95 3.76
5 Warmth 3.30 3.91 3.11 3.77
6 Support 3.75 3.23 4.02 3.51
7 Standard 3.85 3.11 4.29 3.48
8 Conflict 3.23 3.30 2.83 3.01
9 Identity 3.67 2.91 3.90 3.30
10 Leadership 3.88 2.86 4.08 3.17
11 Delegation 3.96 2.82 4.05 3.35
12 Human
Relations
3.20 3.21 3.51 3.32
13 Communic
ation
3.59 2.17 4.01 2.67
14 Grievance
Handling
3.59 2.29 3.94 2.71
15 Decision
Making
3.56 2.50 4.14 2.80
The regression coefficient obtained by using multiple
regression analysis (taken in table 5), brings our better
fitness in both the cases organizational climate and job
satisfaction with the values 0.555. Calculated F (7.99) is
more than tabulated F, which explains that regression
analysis of organizational climate sub factors with job
satisfaction indicates that oc6 (support), oc7 (standard),
oc12 (Human relations) who have positive effect on job
satisfaction and oc11 (delegation), oc13 (communication)
who have negative effect on job satisfaction in
Organizational Job
1 TATA TATA
2 AIRTEL AIRTEL
3 RELIANCE RELIANCE
4 IDEA IDEA
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telecommunication industry here. Regression analysis
between organizational climate and job satisfaction points
out that standard and support are the most important factor
of organizational climate in relation with job satisfaction.
Conflict, Initiative and risk, leadership, grievance
handling, support responsibility, warmth and decision
making are the other factors which affect job satisfaction.
Structure, rewards, delegation and communication have
negative relation with job satisfaction.
Table-5 Regression Analysis for Organizational
Sub Factors and Job Satisfaction
Variabl
e
Coefficien
t
t-ratio significanc
e
OC1 -0.063 -0.446 0.657
OC2 0.179 1.409 0.162
OC3 -0.038 -0.297 0.767
OC4 0.013 0.118 0.907
OC5 0.048 0.502 0.617
OC6 0.219 2.127 0.36
OC7 0.208 2.016 0.47
OC8 0.176 2.163 0.33
OC9 0.076 0.643 0.522
OC10 0.139 1.085 0.281
OC11 -0.010 -0.086 0.931
OC12 0.153 1.907 0.060
OC13 -0.138 -0.937 0.351
OC14 0.039 0.248 0.804
OC15 0.124 0.941 0.349
Table 6 Values of Spearman’s correlation Coefficient
For all 112 Executives
N Correlation
Coefficient
significance
Pair
1
OC
and
112 .016 .864
Pair2 OC
and
112 .017 .862
Pair
3
OC
and
112 .111 .246
Pair4 JS
and
112 .265** .005
Pair5 JS
and
112 .356** .000
Pair6 JS
and
112 .378** .000
** Correlation is significant at 0.001 level
Table-7 Values of Spearman correlation
coefficients in RELIANCE Company
N Correlatio Significanc
Pair OC 2 .407* .031
Pair
2
OC
and
2
8
.547** .003
Pair
3
OC
and
2
8
.638** .000
Pair JS 2 .303 .118
Pair JS 2 .459** .014
Pair JS 2 .524 .004
** Correlation is significant at 0.001 level
*correlation is significant at 0.05 level
Table-8 Values of spearman correlation
coefficients in IDEA Company
N Correlation
Coefficient
Significance
Pair1 OC
and
28 .314 .104
Pair2 OC
and
28 .363 .058
Pair3 OC
and
28 .379* .046
Pair4 JS
and
28 .540** .003
Pair5 JS
and
28 .546** .003
Pair6 JS
and
28 .736** .000
** Correlation is significant at 0.001 level
*correlation is significant at 0.005 level
Table-9 Values of spearman correlation
coefficients of TATA Company
N Correlation
coefficient
significance
Pair1 OC
and
28 .305 .115
Pair2 OC
and
27 .307 .112
Pair3 OC
and
28 .357 .062
Pair4 JS
and
28 .557** .002
Pair5 JS
and
28 .638** .000
Pair6 JS
and
28 .531** .004
** Correlation is significant at 0.001 level
* Correlation is significant at 0.005 level
Table-10 Values of spearman correlation
coefficients in AIRTEL Company
N Correlation
coefficient
significance
Pair1 OC
and
28 .275 .157
Pair2 OC
and
28 .244 .212
Pair3 OC
and
28 .156 .427
Pair4 JS
and
28 .525** .004
Pair5 JS
and
28 .528** .004
Pair6 JS
and
28 .711** .000
**correlation is significant at 0.001 levels
*correlation is significant at 0.05 levels
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RECOMMENDATIONS
In this study, overall correlation and regression analysis
gave positive results. So, organization must take up two
variables i.e. organizational climate, and job satisfaction
simultaneously if they want better results and improved
productivity in the organizations.
We have taken fifteen sub factors of organizational climate
to find its relation with job satisfaction. For a crucial
decision by management, the more significant factors can
be taken into account. To these significant factors, a few
other important factors like conformity to rules,
organization clarity, fringe benefits, appreciation and
praise can also be added.
Alone fear, pressure and punishment theories are no more
successful in the organization .They more or less leads to
frustration and dissatisfaction .So overall these things do
not motivate the executives .Too much discipline,
pressure, and tension should not be imposed on the
employees.
Management development programs (MDP’s), Personality
development Programs (PDP’s) and quality improvement
programs (QIP’s) should be well arranged at regular
intervals in the interests of all levels of executives. Proper
training should be imparted to the executives so they can
achieve high level of effectiveness and job satisfaction
Conducting of one day seminars for creating awareness
about the two variables under study that is organizational
climate and job satisfaction and also about personal and
behavioral traits of comparatively effective managers in
specific, will definitely work favorably for both Tata and
Reliance in order to enhance efficiencies of their
executives and obtain job satisfaction
For differentiating between effective and ineffective
managers, a few professional characteristics may be added
to personal characteristics. HRD departments of these
organizations whose results are not highly significant and
favorable are suggested to include managers as well as
employees to conduct organizational surveys and 360
degree feedbacks in order to assess weak and undesired
areas. They must also study whether, with the passage of
time, any positive or negative change in attitude is found
and if positive change is there, how can be enhanced? In
case of negative change, how it can be altered? Delegation
and communications are the sub factors of organizational
climate which points out a negative relationship with job
satisfaction .So in Telecommunication in India these factor
must be given due consideration .Executives do not like
too much delegation and faulty communication in any case
from management side.
The standard fixed must not be so high that it creates
tension and frustration in the minds of employees, because
mental state of an executive will definitely affect the
performance on the job, free of such fears, they can work
in better way. This sub factor is positively related to job
satisfaction. This signifies that if there is proper trust and
faith among executives, helping culture among coworkers,
inspiring culture and expression of behavior of seniors as
role models, the results must be much better certainly.
Because such type of interaction satisfies the self
actualization need of an employee generates self
motivation and further helps executive to develop a
confident and unique personality that is highly significant
from organization point of view.
REFERENCES
• [1] Akhilesh K.B. and Pandey S (1986), a Comparative Study of
Organizational Climate in Two Banks, Indian Journal of
Industrial Relations, 21(4).
•
• [2] Chen, Hsin-yi Organizational climate and Human Resource
Development practices of American and Chinese companies in
Taiwan, retrieved on October 10, 2010.
•
• [3] Piirainen H, Rasanen K and Kivimaki M (2003),
Organizational climate, perceived work related symptoms and
sickness absence
http://www.2lisan.com/readmore/Organizational+climate,+percei
ved+work-related+symptoms retrieved on august 29, 2010
•
• [4] Johannesson, Russell E (1973), Some problems in the
measurement of organizational climate, Journal of Organizational
Behavior and Human Performance, 10(1), 118-144.
•
• [5] La Follette William R and Sims, Henry. P (1975), “Is
satisfaction Redundant with organizational climate, Journal of
Organizational Behavior and Human Performance
13 (2), 257-278
•
• [6] Malcolm, Patterson, Peter Warr and Michael West (2004),
“Organizational Climate and Company productivity”, Journal of
Occupational Organizational Psychology, 77 (20), Publisher:
British Psychological Society, 193-216 ISSN: 09631798
•
[7] Zammuto and Krakower (1991), Quantitative and qualitative
studies of organizational culture, Research in organizational
change and development, 5, 83 - 114, JAI Press: Greenwich.
• [8] Satish P. Deshpande (1996), The Impact of Ethical Climate
Types on Facets of Job Satisfaction An Empirical
Investigation, Journal of Business Ethics, 15 (6)
• [9] Scott J. Vitell and D. L. Davis (1990), the relationship
between ethics and job satisfaction: An empirical investigation,
Humanities, Social Sciences and Law Journal of Business Ethics,
9(6), 489-494, DOI: 10.1007/BF00382842
• [10] Sims, R. and G. Kroeck. (1994), The Influence of Ethical Fit
on Employees' Satisfaction, Commitment and Turnover, Journal
of Business Ethics, 13(12), 939-940
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[11] Wilson, P. (1996), Job Satisfaction: A review of the
Literature retrieved on December 14 2009 from
http://www.geocities.com/paris/cafe/5839/writings/satisfactio/ht
ml.
[12] Deshpande, S.P. (1996) the Impact of Ethical Climate Types
on Facets of Job Satisfaction. Journal of Business Ethics 15, 655-
66
[13]Koh, H.C. & Boo, & Boo, E.H.Y; (2001). The Link between
Organizational Ethics and Job Satisfaction: A Study of
Managers in Singapore. Journal of Business Ethics 29: 309-324.
doc_674316694.pdf
The fast changing world and face of various economies have generated lot of complexities in the business environment .Stiff competition, innovation and research are the key factors that govern success in modern organization
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IMPACT OF ORGANISATIONAL CLIMATE ON IMPACT OF ORGANISATIONAL CLIMATE ON IMPACT OF ORGANISATIONAL CLIMATE ON IMPACT OF ORGANISATIONAL CLIMATE ON
JOB SATISFACTION JOB SATISFACTION JOB SATISFACTION JOB SATISFACTION – –– –A COMPARATIVE STUDY A COMPARATIVE STUDY A COMPARATIVE STUDY A COMPARATIVE STUDY
Reecha Ranjan Singh
1
, Amit Chauhan
2
, Sangeeta Agrawal
3
, Saurabh Kapoor
4
1
Deptt. of Mgt. Omakarananda IMT, Rishikesh Uttrakhand (India)
2
Deptt. of CSE, Omakarananda IMT, Rishikesh Uttrakhand (India)
[email protected]
3
Deptt. of Mgt. Omakarananda IMT, Rishikesh Uttrakhand (India)
[email protected]
4
Deptt. of Math, IIT Roorkee (India)
[email protected]
ABSTRACT
The fast changing world and face of various economies have
generated lot of complexities in the business environment .Stiff
competition, innovation and research are the key factors that
govern success in modern organization .Human resource and
practicing excellence in all operational and government areas are
the intellectual capital assets that are the keys for the growth and
development of 21
st
century organizations. The consistent
performance and all round success are the keys of governance for
corporate executives who need to work and perform under all
circumstances. Further to develop and retain intellectual assets
and to meet the striving expectations of today’s youth,
organizations need to create favorable organizational climate so
that employees can be satisfied from the jobs and be effective.
Communication sector is one of the premium sectors of India and
Telecommunication Industry is the most integral part of this
sector that is undergoing fast changes because of revolution in
communication sector. This study indicates how various factors
of organization climate correlates with job satisfaction in
Telecommunication sector. The findings of the study indicate the
favorable organization climate enhanced job satisfaction in all
the four companies (Reliance, AIRTEL. IDEA, TATA).
Key words: Intellectual Assets, Governance, Organizational
Climate.
INTRODUCTION
Liberalization of the Indian business environment through
modification in the industrial, trade and fiscal policies by
the government has brought in change and competition of
a magnitude that was previously unknown to Indian
organizations. In the new liberalized scenario, where
multinationals and other global players are competing in
the domestic market with the monopoly players, the
management of organizations is expected to be more
productive and efficient for survival. More than a decade
ago, the western countries faced similar conditions. A
cascade of changing business structures, and changing
leaderships had forced various departments of the
companies to alter their perspectives on their role and
function overnight. As companies moved from an
exclusively bottom line obsession to a focus on customer,
mission and the organization’s role, they were forced to
make changes in their organization to given emphasis
primarily to productivity.
In order to “survive”, Indian organizations are being
forced to undergo massive changes. In this context, it
would be important to identify the factors in the
organizational environment that have the most positive
impact on the performance of the organization.
Among various factors, attitudes and feelings of the
individuals regarding their jobs and job experiences have
been found to be significantly affecting their behaviors.
Herzberg, Mausner, Peterson and Capwell, 2007;
Iaffaldano and Muchinsky, The climate is a relatively
enduring quality of the organization which is experienced
by its members; it has an effect on their behavior, and how
the organization functions. We measured the
organizational climate using seven concepts: trust, morale,
conflict, rewards equity, leader credibility, resistance to
change and scope gating. For a group of 245 Danish
companies, the organizational climate can be summarized
along two dimensions: “tension” and the resistance to
change. Six of the seven variables load on the tension
factor, where the resistance to change is independent.
Using a competing values framework, the four
organizational climates emerge: internal process, rational
goal, developmental and group.
For a fast paced world, the resistance to change is critical
as the traditional episodic Lewinian approach: unfreeze,
change and re-freeze; is too slow and costly. Low
resistance to change permits an organizational design
which can be responsive for the fast paced and rapidly
changing environment. Change must be continuous and
ongoing. Eisenhardt and Brown (1998) argue that
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resistance to change is organizational, ie, change must be
programmed, and it is easier to program change on a
regular basis than intermittent.
For the fast paced world, low tension may be desired and
preferred by individual members in the organization, but
we suggest that it may not be crucial. Further, we argue
that reducing tension and hoping for lower resistance to
change is unlikely, since the two dimensions are
independent for this study.
In the next section, we introduce the notions of tension and
resistance to change in organizational climate. We then
discuss empirical approaches to climate. The empirical
measures depend upon individual responses about the
organization: trust, conflict, and morale, and rewards
equity, resistance to change, leader credibility and scope
gating. Next, we examine climate measures within a
competing values framework. We then present our study
of 245 Danish companies and compare our results with the
Zammuto and Krakower (1991) study. We find the
congruency is quite high. Using a factor analysis, tension
and resistance to change emerge as the two independent
factors. Utilizing a competing values approach, we found
four types of organization: internal process, rational goal,
developmental and group. Finally, we examine the
managerial implications for a fast paced world. Tension
1985 Locke, 1970 Schwab and Cummings, 1970; Petty,
McGee and Cavender
ORGANISATIONAL CLIMATE
Organizational climate is the core circle of human
environment in the boundaries of which the employees of
an organization works .Climate effects each activity in an
organization directly or indirectly and is affected by
almost everything that occurs in the organization. The
survival and growth of any organization is directly
proportional to the favorable climate in it. Employees in
the organization have to be well conversant with rites,
rituals, policies etc. This can only bring sense of
belongings among employees and further help in the
growth of organization .Organization climate is of great
significance for utilization of human relations and
resources at all levels. Organizational climate has a major
influence on motivation, productivity and job satisfaction.
It is also a major motivating factor responsible for
satisfaction and dissatisfaction of employees and affects
the quantum of their turnover. In this study organization
climate and organization culture term have been used
interchangeably Organizational climate has been defined
as the “relatively enduring quality of the internal
environment of an organization that a) is 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 organization” (Taguiri
and Litwin, 1968, p. 27). The climate is the “ether” within
which an organization exists. We outline different views
and research directions that will allow us to integrate a
measure of climate into the multi-dimensional contingency
model (Baligh et al, 1996; Burton and Obel, 1998).
In the literature on climate there has been some confusion
about the relevance and definition of the concept and its
relationship with organization structure and organization
culture (James and Jones, 1974, Schneider, 1990, and
Denison, 1996), where the culture is a pattern of
knowledge, belief and behavior that emerges including
social forms. In the context of the organization social
forms and knowledge in general, culture includes the
organizational structure. The organizational culture is the
organization itself...the form, beliefs, norms, social
patterns, the way things are done, the symbols, rituals, etc.
One reason for the confusion in the literature can be found
in use of climate to represent seemingly different concepts.
Climate can be seen as organizational climate or
psychological climate. Ekvall(1987) states that the
organizational climate mediates in the confrontation
between individuals and the organizational situation.
James and Jones (1974) say that the organizational climate
can be viewed in two different ways: “a multiple-
measurement-organizational attribute approach” or “a
perceptual measurements-organizational attribute
approach.” Both of these approaches are confounded with
organizational structure and processes and the general
organization situation. The organizational climate is
measured using variables like individual autonomy, the
degree of structure imposed as the positions, reward
orientation, consideration, warmth, and support. This is
also the case in the treatment of organizational climate
dimensions presented in Litwin and Stringer (1968) where
organizational climate is measured along the following
dimensions: structure, responsibility, warmth, support,
reward, conflict, standards, identity, and risk. Poole (1985,
p. 84) states that climate seems to be a feature of, rather
than a substitute for culture. That is, a comprehensive view
of culture includes the organizational climate. It is obvious
from the above that measures and dimensions of
organizational climate and organizational culture can be
confused. This has been discussed often in the literature
(Schneider, 1990 and Denison, 1996).
Denison concludes that although the two concepts on the
surface look very different, at a deeper level the clear
distinctions begin to disappear. With the exception of the
first definition for psychological climate, the climate and
the culture definitions and measures are confounded or
overlapping.
For this study, the two concepts are quite distinct. The
climate is the internal atmosphere of the organization. The
culture is the pattern of behavior, which includes the
organizational form. They are not the same, nor is one
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contained in the other. The organizational climate is the
psychological climate of the organization. The definition
of the psychological climate is precise; it refers to the
perceptions held by the individuals about the work
situation. James and Jones (1974) summarize the
psychological climate to be a set of summary or global
perceptions held by individuals about their organizational
environment. The psychological climate is a summary
feeling about actual events based upon the interaction
between actual events and the perception of those events.
The psychological climate has been measured using
dimensions such as disengagement, hindrance, esprit,
intimacy, aloofness, production emphasis, trust and
consideration. 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
organizational unit.” They state that the psychological
climate is the description–and not the evaluation–of
experience. As such, the psychological climate is different
from evaluations, e.g. job satisfaction. In their survey
Koys and DeCotiis report more than 80 different
dimensions found in the literature which has been labeled
a climate dimension.
They set out to find a theoretical-meaningful and
analytical-practical universe of all possible climate
dimensions. They established three rules for a dimension
to be included in the universe.
STUDIES IN ORGANISATIONAL
CLIMATE
The concept of organizational climate has been assessed
by various authors, of which many of them published their
own definition of organizational climate. For those
interested in understanding organizational climate, it is
important to make some distinctions. First, climate and
culture are both important aspects of the overall context,
environment or situation. Culture tends to be shared by all
or most members of some social group; is something that
older members usually try to pass on to younger members;
shapes behavior and structures perceptions of the world.
Cultures are often studied and understood at a national
level, such as the American or French culture. Culture
includes deeply held values, beliefs and assumptions,
symbols, heroes and heroines, and rituals. Culture can be
examined at an organizational level as well. The main
distinction between organizational and national culture is
that people can choose to join a place of work, but are
usually born into a national culture.
A number of studies by Dr Dennis Rose and colleagues
(2001, 2002, and 2004) have found a very strong link
between Organizational Climate and employee reactions
such as stress levels, absenteeism and commitment and
participation. A study by Heidi Bushell (2007) has found
that Hart, Griffin et al.’s (1996) Organizational Climate
model accounts for at least 16% single-day sick leave and
10% separation rates in one organization. Other studies
support the links between organizational climate and many
other factors such as employee retention, job satisfaction,
well-being, and readiness for creativity, innovation and
change. Hunter, Bedell and Mumford (2007) have
reviewed numerous approaches to climate assessment for
creativity. They found that those climate studies that were
based on well-developed, standardized instruments
produced far higher effect sizes than did studies that were
based on locally developed measures
Further a large number of other studies confirmed
Research in organizational climate such as Sharan (2008),
Johannesson (2003), Ganesan (2007)Akhilesh & Pandey
(2006), Virmani & kanchan (2000) explain organization
climate its various parameters and its relationship with
other factors.
Job satisfaction
Investigated by several disciplines such as psychology,
sociology, economics and management sciences, job
satisfaction is a frequently studied subject in work and
organizational literature. This is mainly due to the fact that
many experts believe that job satisfaction trends can affect
labor market behavior and influence work productivity,
work effort, employee absenteeism and staff turnover.
Moreover, job satisfaction is considered a strong predictor
of overall individual well-being (Diaz-Serrano and Cabral
Vieira, 2005), as well as a good predictor of intentions or
decisions of employees to leave a job (Gazioglu and
Tansel, 2002).
Beyond the research literature and studies, job satisfaction
is also important in everyday life. Organizations have
significant effects on the people who work for them and
some of those effects are reflected in how people feel
about their work (Spector, 1997). This makes job
satisfaction an issue of substantial importance for both
employers and employees. As many studies suggest,
employers benefit from satisfied employees as they are
more likely to profit from lower staff turnover and higher
productivity if their employees experience a high level of
job satisfaction. However, employees should also ‘be
happy in their work, given the amount of time they have to
devote to it throughout their working lives’ (Nguyen,
Taylor and Bradley, 2003a).
The following passage summarizes the importance of job
satisfaction for both employers and their workers:
Job satisfaction is important in its own right as a part of
social welfare, and this (simple) taxonomy of a good job
allows a start to be made on such questions as ‘In what
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respects are older workers’ jobs better than those of
younger workers?’ (and vice versa), ‘Who has the good
jobs?’ and ‘Are good jobs being replaced by bad jobs?’. In
addition, measures of job quality seem to be useful
predictors of future labor market behavior. Workers’
decisions about whether to work or not, what kind of job
to accept or stay in, and how hard to work are all likely to
depend in part upon the worker’s subjective evaluation of
their work, in other words on their job satisfaction.
Job satisfaction has been defined in several different ways
and a definitive designation for the term is unlikely to
materialize. A simple or general way to define it therefore
is as an attitudinal variable:
Job satisfaction is simply how people feel about their jobs
and different aspects of their jobs. It is the extent to which
people like (satisfaction) or dislike (dissatisfaction) their
jobs. (Specters, 2007)An alternative approach is that
proposed by Sousa-Pose and Sousa-Pose, based on the
assumption that there are basic and universal human
needs, and that, if an individual’s needs are fulfilled in
their current situation, then that individual will be happy.
This framework postulates that job satisfaction depends on
the balance between work-role inputs - such as education,
working time, effort - and work-role outputs - wages,
fringe benefits, status, working conditions, intrinsic
aspects of the job. If work-role outputs (‘pleasures’)
increase relative to work-role inputs (‘pains’), then job
satisfaction will increase (Sousa-Pose and Sousa-Pose,
2000).
Other theorists (e.g. Rose, 2001) have viewed job
satisfaction as a bi-dimensional concept consisting of
intrinsic and extrinsic satisfaction dimensions. Intrinsic
sources of satisfaction depend on the individual
characteristics of the person, such as the ability to use
initiative, relations with supervisors, or the work that the
person actually performs; these are symbolic or qualitative
facets of the job. Extrinsic sources of satisfaction are
situational and depend on the environment, such as pay,
promotion, or job security; these are financial and other
material rewards or advantages of a job. Both extrinsic and
intrinsic job facets should be represented, as equally as
possible, in composite measure of overall job satisfaction.
This distinction, as described by Rose, relates to the
double meaning of the word ‘job’: the work tasks
performed and the post occupied by the person performing
those tasks.
The meaning of ‘job’ as a post or appointment is of
primary importance. Every job is an instance of the
employment relationship, embodying a contract
(substantive or implied) to exchange an ability to work
(labor, provide service, exercise ingenuity, direct efforts of
others, etc) for rewards (both material and symbolic).
True, performing work tasks provides a stream of
experiences, technical and social, that can energies
psychosocial responses; any resulting data summarizing
these reactions are indispensable. However, such data
must not be weighted higher than those concerning
experience of the overt (or ostensible) contractual terms -
above all, those concerning pay and job security. (Rose,
2001)
LITERATURE REVIEW
Job satisfaction has been one of the most widely studied
concepts in management literature, accounting for more
than 5,000 published works (Wilson, 2007).Information
generated by research into this area had practical
implications for individuals and organizations alike.
According to Wilson (1996), employees want to have the
best quality of life possible for themselves and their
families, and managers are confronted with increasing
challenges of managing effective and efficient
organizations by utilizing human, financial, and
technological resources available to them. Understanding
job satisfaction and what it means is not only desirable
but also a critical aspect of life for both individuals and
organizations. Previous studies have shown that
organizational ethical climate types are related to facets
of job satisfaction.
In his study of non-profit employees, Deshpad2006)
found that a “caring” organizational climate is associated
with high level of satisfaction with Organizations Ethical
Climate Types Caring Independence Rules
Professionalism Efficiency Instrumental Facets of Job
Satisfaction Pay Promotion ?Co-workers Supervisor
Work Overall Job Satisfaction supervisors, and that
instrumental and authoritarian and task oriented climate
types have negative influence on overall job satisfaction
as well as satisfaction with promotion, coworkers, and
supervisors. Similar results were found by Joseph and
Deshpande2007) in their study of nurses in a non-profit
hospital. Vital and Davis (2000) investigated the impact
of ethical behavior of MIS professionals. Among other
things they found that MIS professionals were less
satisfied when unethical behavior was common within
the firm and more satisfied when the top management
was perceived as supporting ethical behavior. Sims and
Kroeck2004) found that ethical fit was significantly
related to commitment turnover, and job satisfaction.
Similarly Koh & Boo, 2001; Wu (2009) studies showed
that ethical climate types are associated job satisfaction.
Based on these findings one may be able to conclude that
organizational ethical climate types are associated with
facets of job satisfaction and overall job satisfaction.
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Studies in Organizational Climate and Job
Satisfaction
Henry and Lenon (2006) infer the commitment to the
organization is an important behavioral dimension which
can be utilized to evaluate employees’ strength of
attachment. Results in a cellular communication point out
that role conflicts and role ambiguity are negatively related
to commitment, but organizational climate, power,
teamwork, satisfaction with work, promotion, are
positively related to organizational commitment, power,
teamwork, satisfaction with work, promotion, are
positively related to organizational commitment
Henry (2009) studied the relationship between job
satisfaction and organizational climate in Rohtak mill. The
main objectives of the study were to see the position of job
satisfaction in employees of the unit taken up, to discover
the existing organizational climate in the unit, to determine
the relationship of individual variables with job
satisfaction and organizational climate. Responses were
taken from 10 supervisors and 25 workers of mill. The
results showed higher dissatisfaction at both levels of
employees, the correlation between overall job satisfaction
and organizational climate was very high, the maximum
number of supervisors was dissatisfied with the items of
promotional opportunities, technical and administrative
information and facilities and present job and department.
On an average, workers assessed the organizational
climate better than supervisors, salary and organizational
climate were positively correlated.
Henry (2005) predicted the association between the
company climate and the productivity that would be
mediated by job satisfaction. In his study of 32
manufacturing companies, subsequent productivity was
significantly correlated in controlled analysis with eight
aspects of the organizational climate and with job
satisfaction. An overall analysis showed that the company
productivity was more strongly correlated with those
aspects of climate that had stronger job satisfaction
loadings.
Further Mafolled2005), Batra & Khanna2003), Mc
Quarrie2005) also studied & related the organizational
climate and job satisfaction in their various respective
studies.
Overview of Indian telecommunication
industry and organization under study
Telecommunication Market in India is one of the most
rapidly growing industries in India. It is considered to be a
real boon not only to the country's economy but also to its
inhabitants as it has made life easier and faster altogether.
The telecom industry in India has grown phenomenally in
5 years. In 2000, the telephone facility was available to
only 3 people out of every 100 persons, whereas in 2005 it
went up to 10.66 persons as against every 100 people. This
outstanding growth in the Indian telecom industry is
considered to be one of the most attractive attributes in the
exponential accretion of wireless phones across the
country. The government of India is planning up for an
increase in the production of telephones by 2007
accounting for around 23 telephones in every 100 persons
by launching 250 million phones in the country. One of
the largest contributors in the alarming success of the
telecom industry in India has been the wireless market that
has leaded the telecom revolution in India. This wireless
market has attracted a number of consumer attentions,
which has brought in larger investiture to India. The Total
Market comprising of semi-conductors in India stood at
USD 2.82 billion in 2005 within which the
telecommunication industry acquired about 45.4 percent of
the total market. The telecom market in India had acquired
around 8 percent of the Indian Total Available Market for
semi-conductors that were valued at USD 1.14 billion.
The equipments for telecommunication are usually
imported in bulks in the name of CBUs and SKDs. This
import-trading sector in the telecommunication industry is
reflected in the Total Market and the Total Available
Market. Some of the major telecommunication markets in
India include wireless handsets found in GSM and CDMA
range, wireless switches, wireless infrastructure
equipments, PBX systems, electronic push button
telephones, access network instrumentation, modems and
VoIP phones. Among all these sectors, the wireless
handsets and wireless infrastructure acquires around 88
percent of the total market of telecom industry which is
considered to be the largest share in the
Telecommunication Market in India as accounted in 2004.
In the Total Available Market, wireless switches are the
most leading sector, as it possesses domestic
manufacturing base. The Telecommunication industry in
India comprises a range of semi-conductor elements
namely DSPs, Analog ICs, ASICs, and Micro controllers.
While the wireless sector in the telecom market in India
was growing leaps and bounds, DSPs acquired the largest
share and brought in large dividends as compared to the
other semi-conductors. The wireless sector was not
introducing newer and innovative sectors which are
absolutely technology based as well. The government of
India has confirmed the phenomenal success of the
telecom industry that will be achieved by it in the years to
come.
We have taken four organizations for our Research study
i.e. Reliance Communications, Bharti Communications,
Airtel Communications, and Idea Communications.
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14
OBJECTIVES
This study includes two important variables,
organizational climate and job satisfaction in the context
of telecommunication Industry in India .The main
objective of this study are:
• To study the organizational climate.
• To study job satisfaction in managers.
• To analyze relationship between organizational under
study to rank them.
• To inter relate age, experience & salary with
organizational climate and job satisfaction in the
organization, in context of two variables understudy.
• To make suggestions for improvements.
RESEARCH METHODOLOGY
Scope of the study: Keeping pace with the
advancement in country, Telecommunication Industry is
showing tremendous growth and carries great significance
because of the emergence competition. The four
organizations under study are one of the top most
organizations of this industry. This study is an attempt to
find out the root cause of problems related to managers
with organizational climate and job satisfaction .The
person working in the capacity of managers at all levels
have been taken up for study purpose.
Sample for the Study: The study is based on the
collection of responses from executives from all over in
India from each organization, Responses from 112
Executives from Reliance, Idea, TATA Airtel are being
considered for the study.
QUESTIONNAIRES
For measuring organizational climate and job satisfaction
information’s, data are collected through two
questionnaires cum scales which are reliable & well tested
by various researchers.
Organizational Climate Questionnaire: This contain
15 factors of organizational climate, structure
responsibility, reward, initiative, & risk, warmth, support,
standards, conflicts, identity, leadership, delegation,
human relations, communication, grievance handling and
decision making having 45 statements 3 each for every
factor. All executives are divided into three categories on
the basis of the score obtained and mean and standard
deviation that is highly satisfied, moderately and then less
satisfied
Job satisfaction questionnaire: This contains 20
statements regarding different factors that can affect the
satisfaction of person such as promotion, salary,
confidence in management, favoritism, general
supervision, working conditions, qualifications and
experience, job security, team spirits etc. All executives
are divided into three categories on the basis of score
obtained and mean &standard deviation that is highly
satisfied, moderately & then less satisfied.
Results and interpretations:
This study confined to four organizations of
Telecommunications industry in India that is Bharti,
Reliance, Hutch and Idea with a total sample size of 112
respondents (managers of the organizations) across the
country. The results are totally significant on the whole.
On the basis of grand total Mean & standard deviation
calculated for all the two parameters, the various
categories that has been obtained as follows (take table1)
Organizational climate
Highly satisfied (with the climate)
more than 74.94
Moderately satisfied
Between 63.44 to 74.9
Less Satisfied
Less than 63.44
Job Satisfaction
Highly satisfied (with the job)
more than 81.49
Moderately satisfied
between 64.41 to 81.49
Less Satisfied
Less than 64.41
The highest score in the case of organizational climate is
Tata (Mean=78.17) and the lowest in the case of Airtel
(Mean=58.6).For job satisfaction Tata obtain the highest
mean score i.e. 79.8, lowest score in this case is 68.35,
which is recorded by Airtel again. On the basis of these
observations, we may conclude that performance of Tata is
highly significant (taken in table 2). When performance of
Tata and Idea are taken result are altogether different. In
case if Tata the results are better than those of IDEA. So
organizational climate and job satisfaction do not do with
the origin part of the organization
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15
Table-2: Comparison of all the Four
Telecommunication Companies with
organization Climate and Job Satisfaction
0
10
20
30
40
50
60
70
80
90
100
R
e
l
i
a
n
c
e
I
D
E
A
T
A
T
A
A
I
R
T
E
L
East
West
North
The analysis of the sub factors of organizational climate
(taken from table 3)highlights that certain factors carry
more important such as Initiative and risk, warmth,
conflict, human relation as there is not much variance in
case of these factors in these four organization under study
.
For finding out relationships among the two variables
under study, Spearman’s rank correlation coefficient
technique has been put to user (taken from table 4). On the
basis of this; a correlation matrix has been prepared which
explain that there is positive relationship between
organizational climate and job satisfaction. In the case of
organizational climate and job satisfaction, the value of
correlation coefficient is 0.702.These values reveal that the
topic of research and the variables selected for research are
quite relevant.
The value of t (based on t-test) also indicates that
relationships between organizational climate and job
satisfaction are significant. The calculated value X2 (based
on chi square test) for organizational climate is X
2
=44.66
The value of X
2
at (4-1)3 degrees of freedom and 5% level
of significance is 7.81. Since calculated value of H is more
than table value, thus, we reject the null hypothesis. The
conclusion here is that all 112 executives of different
organization under study feel differently for job
satisfaction and their levels of job satisfaction also differ.
These results conclude that the perception of
organizational climate and levels of job satisfaction also
differ. These results conclude that the perception of
organizational climate and levels of job satisfaction of the
executives are not equal across the four organizations
under study. The executives of the same organizations or
of different organizations have different levels of
organizational climate and job satisfaction. Even after
availing the same type of facilities in the same industry
their satisfaction levels and effectiveness differs. The
conditions and environment of all the four organizations of
telecommunication industry are also different. This
justifies selecting different organization from different
sector of telecommunication industry
Table-3 Comparison of Organizational climate
(Sub Factors)
S.
No
OC Sub
Factors
Relia
nce
Com
m.
AIRT
EL
Com
m.
TAT
A
Com
m.
IDE
A
Com
m.
1 Structure 4.12 2.83 4.30 3.54
2 Responsibi
lity
4.14 3.02 4.35 3.46
3 Reward 4.05 2.86 4.11 3.33
4 Initiative &
Risk
3.87 3.00 3.95 3.76
5 Warmth 3.30 3.91 3.11 3.77
6 Support 3.75 3.23 4.02 3.51
7 Standard 3.85 3.11 4.29 3.48
8 Conflict 3.23 3.30 2.83 3.01
9 Identity 3.67 2.91 3.90 3.30
10 Leadership 3.88 2.86 4.08 3.17
11 Delegation 3.96 2.82 4.05 3.35
12 Human
Relations
3.20 3.21 3.51 3.32
13 Communic
ation
3.59 2.17 4.01 2.67
14 Grievance
Handling
3.59 2.29 3.94 2.71
15 Decision
Making
3.56 2.50 4.14 2.80
The regression coefficient obtained by using multiple
regression analysis (taken in table 5), brings our better
fitness in both the cases organizational climate and job
satisfaction with the values 0.555. Calculated F (7.99) is
more than tabulated F, which explains that regression
analysis of organizational climate sub factors with job
satisfaction indicates that oc6 (support), oc7 (standard),
oc12 (Human relations) who have positive effect on job
satisfaction and oc11 (delegation), oc13 (communication)
who have negative effect on job satisfaction in
Organizational Job
1 TATA TATA
2 AIRTEL AIRTEL
3 RELIANCE RELIANCE
4 IDEA IDEA
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16
telecommunication industry here. Regression analysis
between organizational climate and job satisfaction points
out that standard and support are the most important factor
of organizational climate in relation with job satisfaction.
Conflict, Initiative and risk, leadership, grievance
handling, support responsibility, warmth and decision
making are the other factors which affect job satisfaction.
Structure, rewards, delegation and communication have
negative relation with job satisfaction.
Table-5 Regression Analysis for Organizational
Sub Factors and Job Satisfaction
Variabl
e
Coefficien
t
t-ratio significanc
e
OC1 -0.063 -0.446 0.657
OC2 0.179 1.409 0.162
OC3 -0.038 -0.297 0.767
OC4 0.013 0.118 0.907
OC5 0.048 0.502 0.617
OC6 0.219 2.127 0.36
OC7 0.208 2.016 0.47
OC8 0.176 2.163 0.33
OC9 0.076 0.643 0.522
OC10 0.139 1.085 0.281
OC11 -0.010 -0.086 0.931
OC12 0.153 1.907 0.060
OC13 -0.138 -0.937 0.351
OC14 0.039 0.248 0.804
OC15 0.124 0.941 0.349
Table 6 Values of Spearman’s correlation Coefficient
For all 112 Executives
N Correlation
Coefficient
significance
Pair
1
OC
and
112 .016 .864
Pair2 OC
and
112 .017 .862
Pair
3
OC
and
112 .111 .246
Pair4 JS
and
112 .265** .005
Pair5 JS
and
112 .356** .000
Pair6 JS
and
112 .378** .000
** Correlation is significant at 0.001 level
Table-7 Values of Spearman correlation
coefficients in RELIANCE Company
N Correlatio Significanc
Pair OC 2 .407* .031
Pair
2
OC
and
2
8
.547** .003
Pair
3
OC
and
2
8
.638** .000
Pair JS 2 .303 .118
Pair JS 2 .459** .014
Pair JS 2 .524 .004
** Correlation is significant at 0.001 level
*correlation is significant at 0.05 level
Table-8 Values of spearman correlation
coefficients in IDEA Company
N Correlation
Coefficient
Significance
Pair1 OC
and
28 .314 .104
Pair2 OC
and
28 .363 .058
Pair3 OC
and
28 .379* .046
Pair4 JS
and
28 .540** .003
Pair5 JS
and
28 .546** .003
Pair6 JS
and
28 .736** .000
** Correlation is significant at 0.001 level
*correlation is significant at 0.005 level
Table-9 Values of spearman correlation
coefficients of TATA Company
N Correlation
coefficient
significance
Pair1 OC
and
28 .305 .115
Pair2 OC
and
27 .307 .112
Pair3 OC
and
28 .357 .062
Pair4 JS
and
28 .557** .002
Pair5 JS
and
28 .638** .000
Pair6 JS
and
28 .531** .004
** Correlation is significant at 0.001 level
* Correlation is significant at 0.005 level
Table-10 Values of spearman correlation
coefficients in AIRTEL Company
N Correlation
coefficient
significance
Pair1 OC
and
28 .275 .157
Pair2 OC
and
28 .244 .212
Pair3 OC
and
28 .156 .427
Pair4 JS
and
28 .525** .004
Pair5 JS
and
28 .528** .004
Pair6 JS
and
28 .711** .000
**correlation is significant at 0.001 levels
*correlation is significant at 0.05 levels
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RECOMMENDATIONS
In this study, overall correlation and regression analysis
gave positive results. So, organization must take up two
variables i.e. organizational climate, and job satisfaction
simultaneously if they want better results and improved
productivity in the organizations.
We have taken fifteen sub factors of organizational climate
to find its relation with job satisfaction. For a crucial
decision by management, the more significant factors can
be taken into account. To these significant factors, a few
other important factors like conformity to rules,
organization clarity, fringe benefits, appreciation and
praise can also be added.
Alone fear, pressure and punishment theories are no more
successful in the organization .They more or less leads to
frustration and dissatisfaction .So overall these things do
not motivate the executives .Too much discipline,
pressure, and tension should not be imposed on the
employees.
Management development programs (MDP’s), Personality
development Programs (PDP’s) and quality improvement
programs (QIP’s) should be well arranged at regular
intervals in the interests of all levels of executives. Proper
training should be imparted to the executives so they can
achieve high level of effectiveness and job satisfaction
Conducting of one day seminars for creating awareness
about the two variables under study that is organizational
climate and job satisfaction and also about personal and
behavioral traits of comparatively effective managers in
specific, will definitely work favorably for both Tata and
Reliance in order to enhance efficiencies of their
executives and obtain job satisfaction
For differentiating between effective and ineffective
managers, a few professional characteristics may be added
to personal characteristics. HRD departments of these
organizations whose results are not highly significant and
favorable are suggested to include managers as well as
employees to conduct organizational surveys and 360
degree feedbacks in order to assess weak and undesired
areas. They must also study whether, with the passage of
time, any positive or negative change in attitude is found
and if positive change is there, how can be enhanced? In
case of negative change, how it can be altered? Delegation
and communications are the sub factors of organizational
climate which points out a negative relationship with job
satisfaction .So in Telecommunication in India these factor
must be given due consideration .Executives do not like
too much delegation and faulty communication in any case
from management side.
The standard fixed must not be so high that it creates
tension and frustration in the minds of employees, because
mental state of an executive will definitely affect the
performance on the job, free of such fears, they can work
in better way. This sub factor is positively related to job
satisfaction. This signifies that if there is proper trust and
faith among executives, helping culture among coworkers,
inspiring culture and expression of behavior of seniors as
role models, the results must be much better certainly.
Because such type of interaction satisfies the self
actualization need of an employee generates self
motivation and further helps executive to develop a
confident and unique personality that is highly significant
from organization point of view.
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