Acta Universitatis Danubius. Œconomica, Vol 10, No 6 (2014)
A Study on Predictor Variables of Organizational Climate in Educational Institutes
Gudivada Venkat Rao1
Abstract: The Organization Climate is a fancied term which is relevant at any point of time and is transient. The contextual reference of Organizational Climate is made for its ability to attract, retain and nurture talent. But, even though higher education in India is important; it failed to attract the best talent. The Organizational Climate and its contents were subjected to further scrutiny in this paper in Institutes of Higher Education in Visakhapatnam. The study examines the profile factors and their influence on the components of Organizational Climate. Further, the intra and inter relationships were also tested. The results show direction to the practioners for improving the significant influencing factors. The sample of 150 faculty members was drawn from five Institutes of Higher Education in Visakhapatnam. The human resources practices relating to Working Conditions, Job Design, Performance Management, Compensation, Relations, Communications, Training and Development, Objectivity and Rationality, Grievance Handling and Welfare were considered for estimating the organizational climate. The multi-regression and mean analysis find organizational climate as moderate. The gender diversity and female influence were there in the Educational Institutes. However, Compensation has a very low mean. The Performance Management, Objectivity & Rationality and Relations were found to be the major influencers.
Keywords: organizational climate; culture; working conditions; compensation; performance
JEL Classification: J28
1. Introduction
The Organization Climate is a fancied term which is relevant at any point of time. Many organizations conduct surveys periodically to assess the effect and effectiveness of the human resources practices in any type of organization viz. manufacturing and service. The academicians were keen to examine the content and relationship of organizational factors. Porter (1961) conducted surveys on Organizational Climate and its predictor variables. There are variations in understanding the term Organizational Climate at micro level and macro level. Further due to its transient nature it is taken as measuring metric for an organization at a particular point of time. The organizations in manufacturing or services are counting on their human resources and their competencies for competitive advantage. The ability of Organizational Climate to attract, retain and nurture talent is new area were not much studies were conducted.
Keith Davis (1975) say’s organizational climates is the totality of its culture, tradition and methods of action of the human environment within which an organization’s employees perform work. Seyder, R. A., and Benjamin Schneider (1975) view organizational climate as an experience, common phenomenon and a global expression of the organization. Don Hellriegal and Slocum, J. W. (1974) defines organizational climate as a set of attributes which can be perceived about a particular organization and or its sub systems by its members. Payne R L and Pugh (1976) say’s organizational climate as concept reflects the content and strength of the prevalent values, norms, attitudes, behavior and feelings of the members of a social system. Litwin, G. H., and Stringer, R. A. (1966) “it as a set of measurable properties of the work environment, perceived directly or indirectly by the persons who live and work in that environment”.
The Organizational Climate and Culture are the other areas were much clarification is required. Udai Pareek (2007) explains the difference at three levels 1.values, ethos 2.climate and 3.culture. Some feel no difference between organization culture and climate (Mile & Schmuck, 1970; Gellerman, 1968). Organizational climate is an assessment of organizational outlook, attitudes, belief, norms, value etc. (Keith Davies, 1975; Woodman and King, 1978); some authors feel it is a comparative term for distinguishing the organizations and industry. Smitha Das (2009) say’s organizational climate is the collective personality of a system, characterized by the social and professional interaction within it. Two organizational climates exits, one at individual level and the other at organizational level (Woodman and King, 1978; James and Jones 1974). The individual perceptions of policies, practices and procedure is known as psychological climate and summation of shared perceptions of all these individuals is organizational climate(Udai Pareek,2007;James& Ashe ,1990;Reichers & Schneider,1990). The summated climate for Burke, Borucki & Hurley (1992) is human relations climate whereas Schneider, White & Paul (1998) terms service climate as sub-system of organizational climate. Brown & Leigh (1996), Neal & Griffin (1999) has concluded organizational climate like Human Resources Management is an important determinant of organizational effectiveness and productivity. The work performance subsequently is influenced by the individual behavior and Youndt, Snell, Dean & Lepak (1996) predict that organizational climate has an impact on performance. The organizational climate is propelled by the individual behavior.
1.1. Components of Organizational Climate
Litwin and Stringer (1968) analyzed the organization in macro perspective using systems. The six motives are 1. Achievement 2. Influence 3. Control 4. Extension 5. Dependency 6. Affiliation. Schneider & Barlett (1968) examined the organizational climate with 1.Involvement 2.Co-Worker 3.Cohesion 4.Supervisor Support 5. Autonomy 6. Task Orientation 7. Work Pressure 8. Clarity 9. Managerial Control 10. Innovation and 11. Physical Comfort as factors. Hellriegel & Slocum (1974) have used the following constituents 1. Communication 2. Values 3. Expectations 4. Norms 5. Policies and Rule 6. Programs 7. Leadership to evaluate the organizational climate.
Likert (1967) proposed the following as six dimensions of organizational climate 1. Leadership 2. Motivation 3. Communication 4. Decisions 5. Goals and 6. Control. Udai Pareek (2004) in his explanation says six motives and twelve processes shape the climate of an organization. The twelve processes are 1. Orientation 2. Interpersonal Relationships 3. Supervision 4. Problem Management 5. Management of Mistakes 6. Conflict Management 7. Communication 8. Decision Making 9. Trust 10. Management of Rewards 11. Risk Taking 12. Innovation and Change. The six motives which influence the shape of organizational climate are 1. Achievement 2. Influence 3. Control 4. Extension 5. Dependency 6. Affiliation. The Organizational Climate construct of Lawler E Hall, D., & Oldham G. (1974) is combination of positive and negative features and it comprises of 1. Competent 2. Responsible 3. Practical 4. Risk-Oriented and 5. Impulsive. Dieterly, D. & Schneider, B, (1974) made a construct to examine the perceived organizational climate with a measure of 1. Individual autonomy 2. Position structure 3. Reward Orientation and 4. Consideration.
Organizational climate is the collective personality of a system that is characterized by the social and professional interactions within it. The factors of organizational climate are not clear and different researchers experimented with options. Climate is a phenomenon that is influenced by both the internal and external environments. The climate is durable and lasting but it changes over a period of time due to internal and external influences. Further, Organizational climate may be viewed as summation of the shared perceptions or Individual perceptions of organizational attributes.
Udai Pareek(2007) concludes Organizational Climate as concept may be analyzed at different level viz., individual is the organizational unit ,role is the organizational unit, teams and inter-teams is the organizational unit, organization is itself the unit and combination of organizations in a industry as unit.
2. Empirical Studies
Some studies on the relationship between profile factors, employment factors and organizational climate were reported to be conducted on college campus. The school climate and its relation to innovation was researched by Bennett (1969) on a sample drawn from high schools in America and found a higher positive relationship in both number and types of innovations in the more open types of climate. The studies of Schneider & Bartlett's (1970) concluded with similar findings in explaining the levels in the hierarchy and organizational climate. Perrow (1970) examined combining samples from various organizations to study organizational levels with organizational culture and climate, his studies found similar results for all the organizations.
Further, studies by Payne & Mansfield (1973) on organizational climate found variations in climate scores with respect to hierarchy. The group culture invariably influence the perception an individual holds of an organization, the same results were found by Gregory (1983) in a study on group culture in colleges and universities. The organizational climate is a construct with several factors and has relationship with job satisfaction, job performance, communication, leadership, structure and commitment (Ansari, Baumgartel & Sullivan, 1982; Likert, 1961and Austin 1987). Thomas Moran & J Fredricks Volkwein (1988) has found in his studies that Climate has relationship with the organizational level in educational institutes and concluded that administrative sub-units have significantly more positive perceptions of organizational climate than faculty. Hoy & Miskel (2001) in their study found both task oriented and relations oriented style as effective in a healthy school climate with dynamic leadership. Wynn & Carboni (2006) reported, teachers are more likely to remain in the profession when they are satisfied with the leadership and with the climate. The school climate was researched by Halpin & Croft (1963), has held the relationship among group members and the relationship between management and teaching staff are invariably influencing the organizational climate.
Some foreign research works exists in education sector. In India, empirical reviews on organizational climate in schools, colleges and universities are not many, the university level is different from university affiliated colleges level, some empirical studies were reported but these are inconclusive. The factors of organizational climate were not uniformly used by the researchers. However, Objectivity and Rationality, Compensation, Grievance Handling, Working Conditions, Performance Management, Training and Development, Communications, Welfare, Relations and Job Design as factors were not comprehensively examined by different researchers.
The importance of organizational climate to the organization is clearly established in the empirical studies. The Educational Institutes play an important role in nation development but empirical literature is available only in school environment and little literature is available on prevailing organizational climate in Institutes of Higher Education.
3. Method
The present study is done to answer some of the areas mentioned in the research agenda. Climate is transient and way of process and style. The human resources practices and the concepts were reconceptualized and the following factors, 1.Working Conditions, 2. Job Design 3. Performance Management, 4. Compensation, 5. Relations, 6. Communications, 7. Training and Development, 8. Objectivity and Rationality, 9. Grievance Handling and 10. Welfare were considered for estimating the organizational climate.
3.1 Objectives of the Study
The research was initiated to meet the following stated objectives.
To understand the construct and profile of the faculty in private institutes of higher education relating to demographic and socio-economic variables.
To estimate the organizational climate in institutes of higher education in private affiliated institutes in Visakhapatnam.
To examine the content and factors of the organizational climate.
To examine and analyze the relationship between the profile and employment variables with organizational climate factors.
To estimate the extent of influence of organizational climate factors on the overall organizational climate.
3.2. Hypothesis
The organizational climate was influenced by profile and employment factors positively and comprehensively.
The organizational climate factors are influenced by each other.
The study was undertaken in the educational institutes offering higher education in the city of Visakhapatnam, India. Further, the sample is made from five private educational institutes offering post-graduation education in management, science and humanities. The five institutes are selected randomly from the list of affiliated colleges in Visakhapatnam under the Andhra University. The private institutes are supposed to implement Human Resources Practices as per Conditions of Service framed by the Andhra University for affiliated post graduated colleges as per University Grants Commission guidelines. The names are not revealed at the request of the participating Institutes. The representative sample is drawn from faculty members in five private educational institutes (Table 1). The multi-regression analysis was applied along with descriptive statistics in a systematic manner to prove the hypothesis.
4. Results
The collected data is tested using Cronbach’s Alpha reliability test. The Cronbach Alpha (Table 2) coefficients for socio-economic variables, organizational climate variables and total variables are 0.6531, 0.8630 and 0.8236 respectively.
|
Table 1. Distribution of Sample |
Table 2. Cronbach’s Alpha |
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|
Institute Sample
Percent
to Total 1 54 36.0 2 14 9.3 3 13 8.7 4 11 7.3 5 33 22.0 6 25 16.7 Total 150 100.0 |
Socio-Economic
Variables Organizational
Climate Variables Total Variables No.
of Items Alpha No.
of Items Alpha No.
of Items Alpha 17 .6531 32 .8630 49 .8236 |
||||||||||||||||||||||||||||||||||||||||||
The Cronbach Alpha above 0.60 is generally considered as reliable for the studies of this magnitude. The size of the sample is above 100 and generally large samples have normal distribution on a normal curve.
4.1 Socio-Economic and Employment Profile
We find substantial presence (87.5 per cent) of the respondents in 20- 40 years age group (Table 3). We find only 10 per cent and 2.7 per cent in 40-50 years and 50 years and above age group respectively. In educational institutes female participation is high (58.0 per cent) and is in majority in comparison to the males (42.0 per cent). The same Gender- Age analysis of educational institutes reveals that within 20- 30 age group 31.9 per cent are males and 68.1 per cent are females. Similarly, within 30 – 40 years age group males and females are evenly distributed.
|
Gender |
Age in Years |
Total |
|||
|
20-30 |
30-40 |
40-50 |
50 and above |
||
|
Male
Female
Total Percent within Age Percent within total |
22 31.9% 47 68.1% 69
100.0%
46.0% |
31 50.0% 31 50.0% 62
100.0%
41.3% |
8 53.3% 7 46.7% 15
100.0%
10.0% |
2 50.0% 2 50.0% 4
100.0%
2.7% |
63 42.0% 87 58.0% 150
100.0%
100.0% |
The nativity trends in educational institutes show (table 4) that 51.3 per cent are from outside Visakhapatnam and 61.3 per cent are domicile of other urban areas. In educational institutes 52.4 per cent males and 46.0 per cent females as a percentage of gender belong to Visakhapatnam. Further, 47.6 per cent and 54 per cent as a percentage of gender do not belong to Visakhapatnam. In educational institutes, among the faculty 42.0 per cent are engaged in teaching, 2.0 per cent in Laboratory, 6.7 per cent in teaching and administration, 44.0 per cent in teaching and laboratory and 5.3 per cent in all the above mentioned activities(Table 5). Based on specialization, the distribution (Table 6) is computer science (28.7 per cent), Management Studies (34.0 per cent).
|
Table 4. Nativity – Gender |
Table 5. Nature of Duties |
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|
Nativity Gender Total Male Female Visakha-patnam Non-Visakha-patnam Total 33 52.4% 30 47.6% 63 100.0% 40 46.0% 47 54.0% 87 100.0% 73 48.7% 77 51.3% 150 100.0% |
Duties Frequency Percent Teaching Laboratory Teaching
and Administration Teaching
and Laboratory All Total 63 3 10 66 8 150 42.0 2.0 6.7 44.0 5.3 100.0 |
||||||||||||||||
Science (25.3 per cent), and Other Courses (12.0 per cent). Further the designation wise distribution is Lecturers (34.0 per cent), Assistant Professors (52.0 per cent), Associate Professors (8.00 per cent ), Professors(4.7 per cent ) and Lab Incharges(1.3 per cent). Therefore, majority of the respondents (86.0 per cent) are in the Lecturer and Assistant Professor Group.
Table 6. Classification - Specialization
|
Specialization |
Classification |
Total |
||||
|
Lecturer |
Assistant Professor |
Associate Professor |
Professor |
Lab. Assistant |
||
|
Computer Science % within specialization % within classification % within total |
12 27.9%
23.5%
8.0% |
25 58.1%
32.1%
16.7% |
2 4.7%
16.7%
1.3% |
2 4.7%
28.6%
1.3% |
2 4.7%
100.0%
1.3% |
43 100.0%
28.7%
28.7% |
|
Management Studies % within specialization % within classification % within total |
21 41.2%
41.2%
14.0% |
22 43.1%
28.2%
14.7% |
4 7.8%
33.3%
2.7% |
4 7.8%
57.1%
2.7% |
|
51 100.0%
34.0%
34.0% |
|
Science % within specialization % within classification % within total |
11 28.9% 21.6% 7.3% |
22 57.9% 28.2% 14.7% |
5 13.2% 41.7% 3.3% |
|
|
38 100.0% 25.3% 25.3% |
|
Other Courses % within specialization % within classification % within total |
7 38.9%
13.7%
4.7% |
9 50.0%
11.5%
6.0% |
1 5.6%
8.3%
.7% |
1 5.6%
14.3%
.7% |
|
18 100.0%
12.0%
12.0% |
|
Total %within specialization % within classification % within total
|
51 34.0%
100.0%
34.0% |
78 52.0%
100.0%
52.0% |
12 8.0%
100.0%
8.0%
|
7 4.7%
100.0%
4.7% |
2 1.3%
100.0%
1.3% |
150 100.0%
100.0%
100.0% |
|
|
|
|
|
|
|
|
|
Classification |
Gender |
Total |
|
|
Male |
Female |
||
|
Lecturer
Assistant Professor
Associate Professor
Professor
Lab. Assistants
Total
|
11 17.5% 40 63.5%
6 9.5%
4 6.3% 2 3.2%
63 100.0% |
40 46.0% 38 43.7%
6 6.9%
3 3.4%
87 100.0% |
51 34.0% 78 52.0%
12 8.0%
7 4.7% 2 1.3%
150 100.0% |
4.2 Collinear
The collinear values (Table 8) establish the independence of the variables and all the diagonal values in organizational climate matrix are unity with other values tending towards unity. The working conditions (x: 3.43) is the most influencing factor followed by Performance Management, Relations, Welfare, Objectivity & Rationality. The Compensation(x: 2.67) is the lowest influencer within the organizational climate. The factors are independently correlating with each other positively except Welfare which is negatively correlated with Job Design. Further to understand the relationship within the Organizational Climate Factors multiregression analysis was applied. The following multi regression analysis model is used.
Y = a +bx1 +cx2 + dx3 +ex4 +fx5 + gx6 +hx7+ix8 +jx9 +kx10 + error
Y = Dependent Variable i.e. one of the factors of organizational climate.
Xi where i takes values from 1 to 10 for other factors of Organizational Climate. Where a,b,c,d,e,f,g,h,i ,j, and k are the coefficients. Similarly, each of the factors is made dependable with other factors as independent variables for all the factors of Organizational Climate.
The Working Conditions as a dependable variable is explained to the extent of 18.6 per cent by two variables. The variations in Objectivity & Rationality are explained by five variables to the extent of 56.3 per cent. The Performance Management, Relations and Objectivity & Rationality explained 52.9 per cent variations in the Communication. In Educational Institutes, Objectivity & Rationality and Communications are the important factors. The Compensation factor with low mean is influenced by only two factors Performance Management and Welfare to the extent of 31.4 per cent. The F-test for each of the model is significant suggesting appropriateness. Thus, the second hypothesis is true.
Table 8 Collinear and Descriptive Statistics of Organizational Climate Variables
|
|
Mean |
S.D. |
1
|
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. |
3.43 3.16 3.38 2.67 3.34 3.07 3.13 3.29 3.10 3.34 |
.81 .90 .81 .88 .79 .77 .82 .80 .76 .88 |
1.00 .133 .208 .072 .236 .195 .253 .247 .385 .213 |
1.00 .042 .050 .032 .174 .067 .042 .111 -.026 |
1.00 .262 .160 .244 .211 .341 .400 .155 |
1.00 .114 .217 .339 .454 .214 .421 |
1.00 .347 .268 .458 .257 .357 |
1.00 .486 .408 .476 .196 |
.
1.00 .517 .435 .509 |
1.00 .434 .530 |
.
1.00 .386 |
1.00 |
In the next stage, the relationship between organizational climate factors and profile factors in educational institutes was examined by applying multiple regressions. Each factor of the Organizational Climate is regressed with profile factors viz., Age, Gender, Caste, Nature of Education, Nature of Work, Salary, Classification and Service. The profile factors are a combination of personal identity and employment identity. The multiple regression model is based on the equation
Y= a + bX1 + cX2+ dX3+ eX4 + gX5 +hX6 +iX7 + u
Y = Dependent variable i.e. one of the factors of organizational climate.
X1 = Age, X2 = Gender, X3 = Caste, X4 = Nature of Education, X5 = Salary, X6 = Classification
X7 = Service .Where a, b, c, d, e, f, g, h and i are constants and u is the error term.
Table 9. Significance Table of one organizational climate factor on other organizational climate factors
|
Dependent OC variable variable |
Independent OC Variable Which is Significant |
F-test of the model |
R2 |
t Value |
|
1. Working Conditions |
1.Job Design 2.Relations |
Signi- ficant |
.186 |
3.445* 1.975*** |
|
2. Job Design |
1.Working Conditions 2.Objectivity and Rationality |
Signi- ficant |
.165 |
3.445* 2.427** |
|
3. Performance Management |
1. Compensation 2. Communication 3. Objectivity and Rationality |
Signi- ficant |
.366
|
2.278** 3.104* 2.186** |
|
4. Compensation |
1. Performance Management 2. Welfare |
Signi- ficant |
.314 |
2.278** 4.915* |
|
5. Relations |
1. Working Conditions 2. Communication 3. Objectivity and Rationality |
Signi- ficant |
.369
|
1.975*** 2.291** 3.596* |
|
6. Communication
|
1. Performance Management 2.Relations 3.Objectivity and Rationality |
Signi- ficant |
.529 |
3.104* 2.291** 5.465* |
|
7. Training & Development |
1. Welfare |
Signi- ficant |
.249 |
4.332* |
|
8. Objectivity &Rationality |
1. Job Design 2. Performance Management 3. Relations 4. Communications 5. Grievance |
Signi- ficant |
.563 |
2.427** 2.186** 3.596* 5.465* 1.777*** |
|
9. Grievance |
1. Objectivity and Rationality |
Signi- ficant |
.207 |
1.777*** |
|
10. Welfare |
1. Compensation 2. Training and Development |
Signi- ficant |
.351 |
4.915* 4.332* |
The Organizational Climate Factors, one at a time are regressed with profile factors to understand the relationship. The data pertaining to organizational climate and profile factors of the Educational Institute are regressed. When, Job Design is regressed with other profile variables. The explanatory power of the variables R2 is 7.7 per cent only, Gender was found to negatively influencing the organizational Climate variable. When Working Conditions, Performance Management, Compensation, Relations, Communication, Grievance, Welfare and Objectivity and Rationality were treated as dependent variables separately and regressed with profile variables, in each case none of the profile variables were found to be influencing. The Training & Development as dependent variable is regressed with the independent profile variables. The explanatory power (R2 ) is .030. i.e. 3.00 per cent and only Caste was found to be influencing negatively(Table 10). The first hypothesis is false.
Table 10. Significance Table of one Organizational Climate Factors on Profile Factors
|
|
Gender |
Caste |
|
Job Design |
-2.951* R2 .077 |
|
|
Training and Development |
|
-1.691*** R2 .030 |
|
Significance Levels *: 1% **: 5% ***: 10% |
||
The findings of the study give an account of the distributive characteristics of faculty in educational institutes. The gender diversity and age diversity is positive. The major concentration of employees is within 40 years (87.3 per cent) and most of the respondents join teaching profession as stop gap arrangement. The decrease in concentration as age increases happens as majority shift to better opportunities in other sectors. The reason for shifting is lower salary. The male-female distribution is even and traditionally women enter teaching profession. The majority of the faculty are migrants and from other urban areas. The designation wise distribution shows no gender difference and females are even with males in designation hierarchy. The majority of both male and female are concentrated at Lecturer and Assistant Professor level. The employee loyalty is very low and majority (62.7per cent) has less than 5 year service. The gender and specialization selection trends are interesting, the females are more in number in management and science stream whereas men are more in computer science. The selection of specialization and gender shows some relationship.
5. Conclusion
The Organizational Climate in the private affiliated Educational institutes at post graduate level is moderate at 3.191 and the major factors with moderate means are Performance Management, Relations, Welfare and Objectivity & Rationality. However, Compensation has a very low mean. The multi-regression model was applied to analyze the intra-factor influence. The Performance Management, Objectivity & Rationality and Relations were found to be the major influencers. The Grievance, Training & Development and Compensation were in the lower order. The second hypothesis is true as all the Organizational Climate factors are intertwined and influencing each other either positively or negatively. The profile factors gender and caste is playing a negative role on Organizational Climate factors. The first hypothesis is untrue as only gender and caste were found to influencing Organization Climate factors Job Design and Training and Development negatively. The Compensation being very low as found in the descriptive data is one of the area of concern which is affecting the climate in private educational institutes. Therefore, the educational institutes have to concentrate on grievance mechanism, training & development and compensation for improving the performance.
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1 Assistant Professor, MHRM, MPhil, PhD, Dept. Of HRM, Dr. L. Bullayya P. G. College, Visakhapatnam, India, Tel.: +91 9949852286, Corresponding Author: gvr101@rediff.com.
AUDŒ, Vol. 10, no. 6, pp. 33-47
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