A

COMPREHENSIVE PROJECT REPORT

ON

“INFLUENCE OF ORGANIZATIONAL CLIMATE ON

EMPLOYEES’ COMMITTEMENT AND JOB
SATISFACTION”

Submitted to

(PARUL INSTITUTE OF ENGINEERING AND TECHNOLOGY)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ASMINISTRATION

In

Parul University

UNDER THE GUIDANCE OF

Faculty Guide
MRS.SUGANDHA SINHA
PROFESSOR
Submitted by
CHETNA.A. GOSAIN
[Batch: 2019-21 EnrollmentNo.:190614200079]
MBA SEMESTER III/IV

Parul University
MBA PROGRAMME
Parul University,
Limda, Waghodia
October 2020

1
 Students’ Declaration

I, Chetna Gosain, hereby declare that the report for Comprehensive

Project entitled “INFLUENCE OF ORGANIZATIONAL CLIMATE ON
EMPLOYEES COMMITMENT & JOB SATISFACTION” is a result
of my own work and my indebtedness to other work publications,
references, if any, have been duly acknowledge

Place: VADODARA (Signature)

Date:05/10/2020 Students ‘Declaration

2
 Institute’s Certificate

“Certified that this Comprehensive Project Report Titled “INFLUENCE OF

ORGANIZATIONAL CLIMATE ON EMPLOYEES COMMITMENT AND JOB
SATISFACTION” is the bonafide work of Ms. CHETNA GOSAIN (Enrollment
No:190614200079), who carried out the research under my Supervision. I also
certify further, that to the best of my knowledge the work reported herein does not
form part of any other project report or dissertation on the basis of which a degree or
award was conferred on an earlier occasion on this or any other candidate.

Signature of the Faculty Guide

(Name and Designation)

(Certificate is to be countersigned by the Director/HOD)

3
 AKNOWLEDGE

 I express my sincere thanks to my faculty Prof. Sugandha Sinha of the management

studies for guiding right from the inception till the successful end of the project. I
sincerely acknowledge them for extending their valuable guidance, support for
literature review, critical review of project and the report above all the normal support
they have provided me with all the stages of the project.

 My thanks are due for all those who have directly and indirectly helped me in
preparing this project report. However, I accept my sole responsibility for any
possible error of omission & would be extremely grateful to the readers of this project
if they bring such mistakes to my notice.

CHETNA GOSAIN
(Student, PIET)

4
 PREFACE

The field of human resource management is developing very fast and every
department of human activity is realizing its important in the smooth functioning of
the organization. The project is about ‘’INFLUENCE OF ORGANIZATIONAL
CLIMATE ON EMPLOYEES COMMITMMENT & JOB SATISFACTION’’.

The scope of the study is to gain an insight into Organizational Climate prevailing at
the Engineering Industry and observe the degree of satisfaction levels of the
employees in the organisation. This study is an attempt to find out the root cause of
problems related to employees with Organisational Climate and job satisfaction.
Keeping track with the advancement in country, engineering industry is showing
huge growth and carries great significance because of the stiff competition. The two
organization under study are one of the most organizations of this industry. This
study is an attempt to find out the main cause of problems related to managers with
Organizational Climate and job satisfaction. The managerial level cadre of
employees were taklen into consideration for the purpose of the study.

5
 ABSTRACT

Human resource of an organization is considered as the most important variable

which affects the effectiveness of an organization. It is the only resource which can
use all other resources to achieve organizational objectives. Since it is an important
resource the satisfaction of human resource is equally important. Organizational
Climate is one of the factors affecting the satisfaction of the employees. This study
focuses on impact of different dimensions of Organizational Climate on job
satisfaction & employees’ commitment. The objectives of this study is to find the
relationship between Organizational Climate & job satisfaction as well as employees’
commitment. To undertake this study a questionnaire was developed based on
important Organization Climate dimensions such as rewards, warmth, support &
commitment, structure, risk & conflict, standards career development & growth, other
factors etc. The questionnaire consisted 29 questions with a Likert scale. The
sample size of the study was 30 based on random probability sampling method.

6
 INTRODUCTION

An effective workforce & employee base is an asset for an organization as

well as its integral part. Since organization & employees are mutually related, their
success is interconnected. The success of the organization brings about welfare of
the employees. This eventually leads to employee motivation, higher productivity,
and the accomplishment of organizational goals.

Organisations in the 21st century is facing more challenges than ever before. These
challenges are not unique to any specific organisations or Industry, but affect all
organisations, regardless of their structure or size. Organisational climate is
constantly challenged by changes impacting organisations today (Nair, 2006). To
survive and outdo their competitors, organisations are constantly seeking to improve
their performance. Authors such as Brown and Leigh (1996) think that organizational
climate is becoming more important than ever before because organisations need to
ensure that those individuals who add value to the bottom line will want to stay in the
organisation and will want to continue pouring their work to the benefit of the
organisation. According to Watkin and Hubbard (2003), high-performing
organisations have climates with measurable characteristics, which has shown how
Organisational climate can directly account for up to 30% of the variance in key
business performance measures.

The ability of an organization to start and achieve its goals is a function of its ability
to attract, hire, satisfy human resources, maintain, and improve their competence.
Each organization must be concern about human resources and it is important to
increase their commitment by making any changes within the organization. A
positive organizational climate is said to be one important variable that will
encourage employee’s effort and commitment. Organizational climate arises in
7
organizations through a social information process that concerns with the
employee’s attachment with the policies, practices, and procedures they experience
and the behaviors they observe being rewarded, supported, and expected. The
organizational climate provides human resources with good working environment
and condition. Help them reach their job satisfaction. So that can increase
commitment among the staff to the organizations.

The concept of organizational climate was developed in the late 1930s by the social
scientist, Lewin et al (1939). They used social climate term to describe subjective
feelings or atmosphere they encountered in their studies of organizations. Since
1980s the concept of climate has seemed to have lost its appeals to organizational
researchers (Isaksen et al, 1995). In its place organizational culture, which came
from the field of anthropology, was introduced. Ekvall (1996) noted that the
organizational climate literature contained two main contradictions. One relates to
ontological issues, which include theories of organizational climate
(Guion,1973;Ekvall,1996; Altman,2000) and the other on values, norms and belief
system (Schneider et al, 1996), According to Ekvall (1996), this demarcation runs
between theorists who conceive ‘Climate’ as a common perception arising from
interaction among members of an organization, and those who perceive ‘climate’ as
an objective property of an organization. The present research was delimited to
using primarily the perception of employees about their working environment.
Therefore, organizational climate was considered as an independent variable in this
study.

8
 PART 1
ABOUT THE INDUSTRY-1

Conmat Group of Industries started in 2002 from a small 200 Sq. ft. rented space to
manufacture material handling systems, and diversified into
Concrete Construction Equipment in 2009 at Vadodara. The moment of glory came
with equity partnership from the Global giant KYB Corporation of Japan in 2012,
which is a trusted name and market leader in Concrete Equipment Industry. Today
the group has 70 manufacturing locations in 34 countries, having annual turnover of
over 21000 crores and employing over 12500 professionals. The company has set
up a state-of-the-art R&D and manufacturing facilities in Vadodara, Gujarat, which
spreads over 5, 00,000 Sq. Ft. to produce technologically advanced yet economically
viable equipment.

Known as the world’s largest shock absorber manufacturer, KYB is also Japan’s
Largest Transit Mixer manufacturer. Besides this, we are a proud leading
manufacturer of hydraulic and electronic products for construction, automobiles,
aircrafts, trains, ships, and industrial applications. KYB in association with CONMAT
is producing World’s finest Concrete Construction Equipment’s. Indian facility, with
the support of Japanese technology, which is used as a global manufacturing hub for
Concrete Batching Plants, Concrete paving machines, Concrete Pumps and Transit
Mixers.

ABOUT INDUSTRY - 2

Sany Group is a leading enterprise of high-end equipment manufacturing industry

with over 20 R&D centers and manufacturing bases all over the world. SANY market
value exceeded USD 20 billion in 2019, ranking among the top 3 global construction
machinery manufacturers.
9
Currently SANY has built 25 manufacturing bases, and over 100 offices with more
than 400 agents and 8,000 suppliers worldwide. In China, SANY has established
seven industrial parks in Beijing, Changsha, Shanghai, Shenyang, Kunshan, Zhuhai
and Urumchi. With global R&D centers and manufacturing bases in the US,
Germany, India, and Brazil, SANY’s products are exported to 150 countries and
regions.

Overview of the World Market

The global construction equipment market size was estimated at USD 124.7 billion in
2019 and it is anticipated to expand at a CAGR of 4.3% from 2020 to 2027.
Increasing investments by governments across the
world for developing public infrastructure has been one of the prime
factors driving the market demand for this equipment. Furthermore, the growing
population in emerging economies such as India has resulted in increased
residential and commercial construction activities. Thus, the market is anticipated to
grow steadily over the forecast period.

The growing public-private partnerships to implement infrastructure work coupled

with wide-scale adoption of the rental business model have induced an increased
demand for this equipment over the past few years. The cost of machinery has
increased over the past few years owing to the incorporation of advanced safety

10
technologies, which has triggered the end user’s inclination toward procuring these
types of machinery on a rental basis the demand for construction equipment is high
from the residential construction sector owing to speeding urbanization in countries
including China and India. The urbanization triggers not only the demand for
residential space but also other related infrastructures such as roads, hospitals,
schools, and commercial areas. To cope up with the demand for
these public infrastructures, the government spends a significant amount on the
construction sector.

Overview of the Indian market

India concrete equipment market is projected to cross $ 1,300 million by

2024, exhibiting a CAGR of 13% on account of anticipated growth in construction
industry, increasing foreign investments, and rising number of smart city projects in
the country. Based on value, batching plant segment is the largest segment in India
concrete equipment market. The growth of the segment is led by growing customer
preference for high capacity and technologically advanced batching plant. Moreover,
factors such as increasing number of construction projects, shorter completion time,
and demand for customized solutions by end-users are further fuelling growth of this

segment. Government initiatives towards infrastructure development is further boosting the

demand for concrete equipment in India. Some of the construction projects in the country
include Smart City Mission, AMRUT, the Atal Mission for Rejuvenation of Urban
Transformation, Metro Rail in urban areas, Bharatmala, and Sagarmala, among others. In
addition, government is also supporting India concrete equipment market by liberalizing
taxation policies for construction industry such as GST and custom duty. In 2018, the
government of India reduced the GST on concrete equipment from 28% to 18%, which will
help the concrete equipment manufacturers to reduce the overall cost of equipment and
other operational losses.

Years considered for this report:

Historical Years: 2014 – 2017

11
 Base Year: 2018
Estimated Year: 2019
Forecast Period: 2020 – 2024

• The Indian Construction Equipment Market is projected to cross $ 4.7 billion by 2025, on
account of anticipated growth in the construction industry, increasing foreign investments,
and rising number of smart city projects in the country.

• The Indian Construction Equipment Market is broadly segmented into Earth Moving, Material
Handling, Concrete Mixing, and Road Construction Equipment. Earth Moving segment is
expected to continue its dominance during the forecast period, however, the Concrete
Mixing segment is anticipated to witnessed fastest growth over the next five years. Based on
specific product type segmentation, the market is dominated by backhoe Loaders, followed
by Crawler Excavators, Forklifts, and Pick & Carry Cranes. The demand for such products is
expected to continue growing in the coming years owing to the factors such as increasing
project sizes, shorter completion time, and demand for customized and multipurpose
equipment by end-users.

• Government initiatives focused on infrastructure development are further boosting demand for
construction equipment in India. Some of the largest projects include Smart City Mission,
AMRUT (Atal Mission for Rejuvenation of Urban Transformation), Metro Rail in urban areas,
Bharatmala, and Sagarmala, among others. In addition, government is also supporting the
construction equipment market by liberalizing taxation policies for construction industry such
as GST and custom duty. In 2018, the government of India reduced the GST on construction
equipment from 28% to 18%, which will help the construction equipment manufacturers to
reduce the overall cost of equipment and other operational losses. However, the global
economic slowdown and spread of COVID-19 pandemic pose a huge imminent challenge for
the Indian Construction Equipment Market.

12
 GROWTH OF THE CONCRETE CONSTRUCTION EQUIPMENT
MARKET IN INDIA

 Rapid urbanization, growing population, increasing government spending in

infrastructure projects, the inflow of foreign direct investment are the major drivers
boosting the demand for construction equipment in the country.

 In terms of equipment types, the construction equipment market is mainly dominated

by earthmoving equipment segments such as loaders, excavators, and cranes.

Major companies in the industry

 The table shows the list of top and the best construction equipment manufacturing
companies:
 L&T Construction Equipment
 Volvo Construction Equipment India
 Hyundai Construction Equipment
 Mahindra & Mahindra Ltd., Construction Equipment
 Caterpillar
 Komatsu India Private Limited
 ACE Construction Equipment
 Deccan Construction Equipment’s & Machinery
 Nakoda Machinery Pvt. Ltd. INDUS ROCK TOOL- Earth Moving/Construction
Equipment Manufacturer
 Fine Equipment’s India Pvt Ltd
13
  GAMZEN Private Limited
 Bull Machines Pvt Ltd
 BEML LIMITED
 Spartan Engineering Industries Pvt. Ltd
 Apollo Infratech Private Limited
 Hindustan Equipment
 Vishwakarma Agro Engineers
 Siddhartha Heavy Equipment Ltd

Product Profile-1

 Concrete Batching Plant – RMC Series

Rugged, Accurate, Productive & Dependable Plant with welded Frame

Structure & Fully Assembled, Installed with an Ordinary “Pick & Carry” crane.

 Concrete Batching Plant – Infra Series

Rugged, Accurate, Productive & Dependable Plant with welded frame structure

& fully assembled, installed with an Ordinary “Pick & Carry” crane.

 Canal Paving Machine

The most advanced & user-friendly Concrete Paving machine. KYB

manufactures exclusive Range of Standard & Customized High-Performance
Paving Machines for Slopes.

 Road Paving Machine

The most advanced & user-friendly Concrete Paving machine

manufacture exclusive Range of Standard & Customized High-Performance
Paving Machines for horizontal surfaces.

 Mobile Concrete Batching Plant

14
 First Fully Mobile & PLC Controlled Plant with “TWIN SHAFT TECHNOLOGY”

 Compact Concrete Batching Plant

Quick and easy installation due to fully welded frame structure & pre-
assembled main unit.

 Stationary Concrete Pump

Proven S-valve technology, with robust electronic operation controls &

management with manual override.

 Concrete Mixer – MR Series

Very High-Speed Concrete Charge & Discharge for Increased Productivity

 Tora Batching Plant

Quick & Easy installation, with high production performance with optimized
automation.

 Self Loading Mixer

Loading arms mechanism designed for better pushing force & ease of
operation while loading

 Tower Batching Plant

Environment friendly & minimum space required for installation

 Side Discharge Conveyor

15
Advance energy efficient electric drive system with step-less speed controls

PRODUCT PROFILE-2

 Concrete Machinery
1. Truck-mounted Concrete Pump
2. Trailer Pump
3. Line Pump
4. Placing Boom
5. Batching Plant
6. Truck Mixer
 Excavator
1. Mini Excavator
2. Small Excavator
3. Medium Excavator
4. Large Excavator
5. Long-Reach Excavator
6. Wheel Loader
 Crane
1. Truck Cranial
2. All terrain Crane
3. Rough-terrain Crane
4. Truck-mounted Crane
5. Tower Crane
6. Crawler Crane
7. Loader Crane
 Port Machinery
1. Reach Stacker
2. Forklift Truck
3. Empty Container Handler
4. Portal Slewing Crane
5. Telehandler
6. Material Handler

16
7. Customized Container Cranes
 Road Machinery
1. Roller
2. Motor Grader
3. Paver
4. Milling Machine
5. Asphalt Batching
 Mining Machinery
1. Road header
2. Coal Cutter
3. Drag Conveyor
4. Hydraulic Support
 Trucks
1. Dump Truck
2. Off-highway Mining Truck

 Wind Turbine
 Piling Machinery
 Petroleum Drilling Machinery

17
 What is Organizational Climate?

 The concept of Organizational Climate (also known as Corporate Climate).

Organizational Climate refers to a set of measurable properties of the work

environment that are supposed by the people who live and work in it and
influence their behavior and motivation.

According to Forehand and Glimer,” Climate consists of a set of

characteristics that describe an organisation, distinguish it from other
organisations are relatively enduring overtime and influence the behavior of
people in it”.

According to Campbell,” Organizational climate can be defined as a set of

attributes specific to a particular organization that may be induced from the
way that organization deals with its members and its environment. For the
individual members within the organization, climate takes the form of a set of
attitudes and experiences which describe the organization in terms of both
static characteristics and behavior outcome and outcome-outcome
contingencies”.

Organization Climate is a unique way in which the people experience their

work environment. One can understand the meaning of “climate "when one
tries to seek the answer to the following questions:

1. How does it feel to work here?

2. How do individuals and employees feel while operating in this culture?
3. How do the management decisions affect the employees & their work?
4. What impact does leadership have on the employees?

18
 5. When one studies these & such other questions, he/she is evaluating the
organization climate

ORGANIZATIONAL CLIMATE DEFINED

  According to a respected author of Human Resources ,Prof. Idalberto Chiavenato,

Organizational Climate is defined as-”A set of measurable properties of the
perceived work environment, directly or indirectly, created by individuals who live
and work in this environment and that influences the motivation and behavior of
these people”.

Some of the salient features of organizational climate can be enumerated as under: -

 Organizational climate is a perceived concept. It deals with the person’s

perception about his workplace. It can be judgmental to some extent.
 Since the concept of organizational climate is related to an individual’s
perception, it is highly subjective in nature.
 The organizational climate can make a direct or indirect effect/impact on
employees’ productivity, motivation & commitment.
 The impact of organizational climate on the employee’s productivity &
motivation can be positive or negative.
 Generally, the employees take the organizational climate as the collection of
some concrete properties.
 The employees attempt to quantify the climate by co-relating it with the
conditions in the organization.

19
 FACTORS INFLUENCING ORGANIZATIONAL CLIMATE
 
  Organizational Climate is a result of attitudes & approaches of organizational
members towards the organization. It also depends on the perception hence it is
highly judgmental & subjective.
 
  According to Litwin & Stringer organizational factors affected by 6 factors: -

1. Organizational Structure: -
It deals with the superior subordinate relationship, formal & informal
structures, span of management, rules & regulations etc.
2. Individual Responsibility: -
Feeling of autonomy of being an own boss, authority, decision making power
etc.
3. Rewards: -
The rewards & incentives associated with job and with achievement of
objectives.
4. Risk & Risk taking: -
Involvement of risk & challenges in the work. How far the need of
achievement is satisfied, (NACH).
5. Warmth & Support: -
It deals with the feeling of co-operation, friendship & helpfulness in the
workplace.
6. Tolerance & Conflict: -
It deals with the feeling that the organizational climate accommodates
differing views.

20
 IMPACTS OF ORGANIZATIONAL CLIMATE

  Organizational Climate influences the performance of the employees to a great

extent. In specific terms it affects the motivation level & job satisfactions of
employees. Satisfaction & motivation in turn leads to the efficiency & performance of
employees. Thus, organizational of employees. Thus, Organizational Climate &
Efficiency of employees are directly related.
  The Organizational Climate affects the employee’s behavior in 4 different ways: -
 
1. Constraint System: -

As a constraint system Organizational Climate encourages & avoid

various behaviors in the organization. The management provide information to the
employees about what kind of behaviors will be rewarded, punished, or ignored.
Thus, behavior can be influence by varying degrees of rewards & punishment.

2. Evaluation of Self & Others: -

Organizational variables may affect behavior through evaluations of

self & others. Such evaluation will affect the human behavior.

3. By Acting as a Stimuli: -

21
 Organizational factors can influence human behavior by acting as stimuli
which leads to arousal. The level of arousal will directly affect the level of activation
affect the level of activation & hence performance.

4. By helping the individual to form a perception: -

Organizational factors influence the behavior by helping the individual in

forming a perception of the organization. The perception then influences behavior.

LITERATURE REVIEW

Introduction
An extensive review of literature on the subject has revealed through
various approaches to study of Organizational Climate. One approach assumes
Organizational Climate to be an attribute of the organization and independent of any
individuals who might provide data about it.

REVIEW-1

  The article presented by P. Yuthamarani Permarupan, Raja Suzana Raja Kasim,

Bamini KPD Balakrishnan.
  Gives out the following conclusion:
I. Employees who are highly satisfied with are highly satisfied with the organizational
climate have more passion for their work.
II. The higher the satisfaction with organizational Climate, the higher the employee’s
organizational commitment.
III. There is a positive relationship between Organizational Commitment.

REVIEW-2

  A research article was presented by Aysen Berberoglu on impact of Organizational

Climate on organizational commitment and organizational performance in public
22
 hospitals. He concluded that there is a positive and linear relationship between
Organizational Climate and commitment along with performance. He studied
hospitals of north cypress. The Organizational Climate was found be significant in
determining the organizational commitment of the employees.

REVIEW-3

Rashmi Rai, an assistant professor in Noida presented a study on impact of

Organizational Climate On employee satisfaction in the Indian IT organizations she
studied Organizational Climate based on various parameters like: -

1.Role and responsibility

2.Objectives and goals
3.Leadership and management
4.Work environment
5. Performance management
6. Career goal opportunities
7.Work life balance
8.Rewards and Recognition
9.Pay and benefits
Based on our study the following finding can be presented: -
1. Out of the total employees 58% felt satisfied about the fact that there job makes good
use of their skills and abilities 55% felt that their work is challenging 56% of
employees satisfied with the roles and responsibilities they have in the organization ,
while 18% were dissatisfied.
2. 51% of the employees were satisfied that their objectives and goals were clear, 33%
of the employees felt that organization has fixed the realistic goals for them .Overall
51% were satisfied with the Objectives and goals that the organizations has set for the
employees and itself were 25% of employees were dissatisfied.
3. In all 62% of the employees were satisfied with the organizations policies, 23% were
in different & 53% were dissatisfied.
4. 38% of the employees were satisfied with the work environment prevailing in the
organizations, 26% were indifferent & 36% were dissatisfied.
5. 50% employees were satisfied with the performance management system prevalent in
the industry, 25% were indifferent & 25% were dissatisfied.

23
6. Overall, 18% of the employees were satisfied with the career goals opportunities
provided to them, 22% were indifferent and 63% were dissatisfied.
7. 23% of total employees were satisfied with the quality of work life in the industry, 26%
were neutral & 56% were dissatisfied.
8. Overall, 40% of employees were satisfied with the facts that they were given rewards
recognitions for their efforts, 17% were neutral & 43% were dissatisfied.
9. 40% of the employees were satisfied with the pay & benefits they received, 26% were
indifferent and 34% were dissatisfied.

REVIEW-4

A study on impact of organizational climate on job satisfaction among banks staffs

was undertaken by K. Balamurugan & Dr. T. Vanniarajan, Tamil Naidu.
They Considered various parameters as far as the organizational climate is
concerned. They named them Organizational Climate factors (ocf). They considered
the following factors:

1.Interpersonal Relationship
2.Participative management
3.Formulization & Standardization
4.Training & Development
5.Monetary benefits
6.Objectivity & Rationality
7.Scope for advancement
8.Supervision
9.Concern for Welfare
10. Safety and security
The study concludes that organizational climate factors are significantly influencing
the job satisfaction among their employees in the banking industry. The important
Organizational Climate factors to be focused by the policy makers are monetary
benefits, scope for advancement, training and development and interpersonal
relationship. So, the management must take essential step to improve

24
 The above factors in the banking industry to enrich their employee satisfaction which
results in better organizational performance.

REVIEW-5

  A study on effectiveness of Organizational Climate and its impact on organizational

commitment was presented by Reetu & Anshu Yadav in sept 2019. It published in
IJITEE, volume 8-issue-ll.
 
They concluded that the organizational climate had strong relationship with
effectiveness and commitment. They suggested that the organization should provide
employees with different activities from time to time. So that, there satisfaction can
be boosted. The results of this study implied that the management should follow
democratic style of leadership to increase the Organizational Climate effectiveness
and allow the worker to take their own decisions. The management should be consulted
for important matters only. Guidance should be given to the employees instead of orders.
Proper incentives and rewards should be given to employees so that they can feel
committed towards the organization.

REVIEW-6

A study on Organizational Climate and employees job satisfaction in context of

Kaohsiung port was conducted by Chaur-luh in December 2014.

This study aimed to explore the Organizational Climate in the container terminal
operation context, and the effect of Organizational Climate on the employees’ job
satisfactory as well. Data was collected from the employee’s perception referring to
Organizational Climate in their workplace through questionnaire survey. The author
attempted to extract for main dimensions of Organizational Climate namely
management system, award & motivation, transformation leadership & laissez-faire
leadership.

It was finally concluded that the Organizational Climate significantly affected job
satisfaction. The employees with clear and effective incentives had better job
satisfaction and a feeling of higher job security.

25
It was also found that salary & pay were the most important variables which can
provide incentives to the employees. They made the employees feel secured &
satisfied.

REVIEW-7

Ms. Ruchi Arya, Dr. Monica Sainy conducted a study on the impact of Organizational
Climate and employee engagement in banking sector with special reference to State
Bank of India, Indore.

The purpose of their study is to identify the drivers of the employee engagement in
the banking sectors with special reference to SBI.

The result of their study showed that there is a significant relation between
Organization Climate & employee engagement. Their study focused on
Organizational Climatic factors such as structure, responsibility standards, support,
commitment, reward, risk & conflict, warmth etc that affects the employee’s behavior
and acts as a driver for engaging the bank employees.

Further they also suggested that there should be frequent & regular meetings
between employees & managers to discuss about the improvement in the company,
at a workplace.

REVIEW-8

A study was carried out by Saurav Ghosh and Dr Parikshit Joshi who belonged to
Shree Venkateshwara University, Gajraula, UP and Amity University, Noida, UP
respectively.

The title of their study is Organizational Climate and Job Satisfaction among
Academic, staffing private Universities of Western Uttar Pradesh, Delhi & NCR- An
Empirical Analysis.

They have identified the unique important of Organizational Climate in relation to job
satisfaction among academics in the university which affect the realization of these
institution’s vision.

They identified various climatic variables that affected the job satisfaction of the
employees. These variables are experience in the university, rank in the university,

26
line of communication, administrative style, supervisor support, promotional
opportunities, workload, etc.

They identified the job satisfaction variables like decision making challenging job,
Bordem, Fringe benefit, Personnel policy, career, etc. They concluded that they were
strong & significant impact of climatic variables on job satisfaction.

REVIEW-9

A research study was done by Dr. Chengedzai Mafini, Vaul University of

Technology, South Africa. The title of the study is The Contribution of Organisational
Climate to Employee Well-being.

The factors of Organizational Climate which were consider are manager-employee

relationship, working conditions, remuneration, work allocation etc.

It was concluded that the relation between the managers & employees is an indicator
of the level of employee well-being at the workplace. There was also a strong
relation between working condition and the employee well-being. Even the
relationship between remuneration & employee well-being was found to be
significant. All the Organizational Climatic factors were found to be statistically
significant which implies that they are predictors of employee well-being.

REVIEW-10

A study was conducted by Vijayalakshmi C, Benita S Monica & MS Siranjeevi

Sivakumar. The title of the study was A Study on Impact of Organizational Climate
on Job Satisfaction in Recruitment Firm -Chennai.

They considered the Organizational Climatic factors with response to fair

remuneration, recognition & effective communication.

It was concluded that Organizational Climate is an independent variable & Job

Satisfaction is a dependent variable. It was found that Organizational Climate has a
moderate on influence of Job Satisfaction. Job satisfaction was affected by number
of other factors such as appraisal, employee engagement, review meetings, leaves,
transportation etc. It was highly recommended for the organisation to concentrate on

27
the other climate factors such as rewards, decision making authority to be
improvised to make the employees work towards the objectives & goals of the
organisation. It was also suggested that the organization should provide fair
remuneration to the employees to retain them.

BACKGROUND OF THE STUDY

Employee behavior in organizations is a result of their personal characteristics as

well as the environment in which they perform. Employees’ job attitudes are affected
by a wide range of Organizational characteristics and social relationships, which
form the employees’ work environment. When referring to employees’ perceptions of
their working environments, it is possible to find a variety of terms and definitions
such as Organizational Climate, psychological climate, collective climate, and
organizational culture. Organizational Climate is one of the most important matters
regarding organizational environment, which has a direct relationship with employee
behavior. Since late 1960s, Organizational Climate has been a popular topic
discussed in organizational behavior literature and is considered as a vital viewpoint
to comprehend employee’s work-related attitudes and behaviors.

This study focuses on the Organizational Climate & Job Satisfaction of Employees in
the Engineering firm. The survey may prove to be useful for management of this
firms to know the causes & mediating factors of employee commitment &
performance. The management may put efforts in improving the Organizational
Climate. This may result into higher job satisfaction & retention of employees.

28
 RATIONALE OF THE STUDY

Organization Climate is one of the important topics in human resource management.

Organizational Climate directly influences the employees Job satisfaction &
commitment towards their work. The need for the study is to find out how
environmental factors are associated with the job satisfaction & performance.
Moreover, the factors influencing the Job satisfaction can also be identified and
addressed.

OBJECTIVES OF THE STUDY

 To investigate the relationships between some characteristics of climate and

employee satisfaction.

 To analyze the organizational factors which affect to employee satisfaction.

 To give recommendations for making improvements in the organizational climate.

 To examine the impact of communication, reward system & team work on employee
performance.

 To examine the impact of direction, relationship & career- development opportunities

on employee performance.

HYPOTHESIS OF THE STUDY

29
As a result, the literature review, the present study has adopted various hypothesis.
They are as under: -
H1: - There is a positive relationship between Organization Climate & Employee
commitment.
H2: - There is a positive relationship between Organizational Climate & Job
Satisfaction.
H3: - There is a positive relationship between Organizational Climate & Job
Performance.
H4: - Organizational Climate is significant in predicting employee performance.
H5: - Organizational Climate is Significant to employee performance.

PART-2

RESEARCH METHODOLOGY

The purpose of research methodology is to describe the research procedures. It

includes the research design, sources od data, data collection method, sampling
method etc. Methodology is a systematic procedure for collecting information in
order to analyze and verify the phenomenon. The research design is purely the
framework or plans for a study that guides the collection and analysis of data. It is a
blueprint that is followed in completing a study. It may be a worthwhile to mention
here that a research designs essentially the framework for the study.
This is a descriptive study which involves collection & analysis of the primary data
collected with the help of structured questionnaires.

SCOPE OF THE STUDY

30
The scope of the study is to gain an insight into Organizational Climate prevailing at
the Engineering Industry and observe the degree of satisfaction levels of the
employees in the organisation. This study is an attempt to find out the root cause of
problems related to employees with Organisational Climate and job satisfaction.
Keeping track with the advancement in country, engineering industry is showing
huge growth and carries great significance because of the stiff competition. The two
organization under study are one of the most organizations of this industry. This
study is an attempt to find out the main cause of problems related to managers with
Organizational Climate and job satisfaction. The managerial level cadre of
employees were taklen into consideration for the purpose of the study.

SOURCES OF DATA

For this study, primary data as well as secondary data is been used. The population
of this study consist of the employees of two different companies viz Conmat &
Sany.

SAMPLE SIZE

To achieve the objective of the study minimum 30 questionnaires were distributed to

the employees of both the organizations together.

DATA COLLECTION METHOD & INSTRUMENT

31
 To this study questionnaire was prepared and distributed among the respondents.
The questionnaire consisted of 27 question & it was divided into 10 parts. Part 1
included the personal details while part 2 included the details related to work. Part 3
gathered the information about the reward system prevailing in the organization, part
4 gave the information weather there was warmth relationship among people, part 5
was related to the atmosphere of support & commitment in the organization., part 6
talked about the organizational structure while part 7 gave the information about
state of risk & conflict in the organization, Part 8 give information about the standards
set in the organization, part 9 gives information about career- development & growth
opportunities , while rest other factors are included in part 10.

TOOLS OF DATA ANALYSIS

The tools used for data analysis were pie-chart & percentage analysis.

Questionnaire: -

NAME: -……………………………………………………………... GENDER: -…………………………. AGE: -………….

Department: -……………………………………………………… Designation: -…………………………………………
Year of Experience in the current organisation: -…………………………………

1. In this organizational there is a fair reward and recognition procedures.

Strongly Agree Agree Neutral  Disagree  Strongly Disagree

2. Employees are rewarded in proportion to the excellence of their job performance.

Strongly Agree Agree Neutral  Disagree  Strongly Disagree

3. There is a promotion system here that helps the best man to rise to the top.

Strongly Agree Agree Neutral  Disagree  Strongly Disagree

4. A friendly atmosphere prevails among the people in the organization.

 Strongly Agree Agree  Neutral  Disagree  Strongly Disagree

5. There is a warmth relationship between management & employee in this organization.

 Strongly Agree Agree  Neutral  Disagree  Strongly Disagree

32
6. This organization has a relaxed, comfortable & an easy-going working climate.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
7. Employees in this organization tend to be cool and aloof towards each other.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
8. I feel that I am a member of a well- functioning team.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
9. When I am on a difficult assignment, I expect to get help from my superiors & colleagues.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
10. In this organization people usually look out for their own interest.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
11. In this organization, people don’t really trust each other.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
12. It is sometimes not clear as to who has the formal authority to make decisions.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
13. Here, the jobs are clearly defined & logically structured.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
14. Our management believes that conflict among the departments & the individuals can be
healthy.

 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree

15. A person can make good impression in this organization by open argument & clearing
disagreement.

 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree

16. The philosophy of our management is that in the long run, we can achieve fast results by
being slow, steady & sure.

 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree

17. In the meetings we tried to arrive at the decision as quickly as possible.

 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree

18. Our management believes that there is always a scope of improvement in every job & tasks.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
19. In this organization we set very high standards for performance.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree

33
20. There is a feeling of pressure to improve our personal and group performance.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
21. I find high & growth chances of career development in the organization.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
22. Since the time I had joined this organization, I have moved up in my career.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
23. My superiors and colleagues try to enhance my career by their positive inputs.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
24. This organization gives sufficient decision-making authority to the employees.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
25. This organization provides challenging job which needs to sense of achievement.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
26. The personnel policy in this organization is employee oriented.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree
27. In this organization employee’s growth & career are given due importance.
 Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree

34
35