“A COMPARATIVE STUDY OF ORGANIZATIONAL CLIMATE AND JOB
SATISFACTION IN PUBLIC, PRIVATE, AND FOREIGN BANKS”
Falah-ud-Din Butt, Dr. Niaz Ahmed Bhutto & Ghulam Abbas
Introduction & Literature
Organization development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, structure of organization.
In this era of intense competition and globalization very few people will disagree that the success of any organization is a direct reflection of its managerial effectiveness and efficiency.
Even though organizational development depends upon number of factors but to understand needs, concerns, and perceptions of employees the organizational climate needs to be assessed.
Cont---
Organizational Climate
“Organizational climate is defined as people’s perception and attitude about the organization - whether it is good or bad place to work, friendly or unfriendly, hardworking or easy-going, and so forth.”
Wendell L. French and Cecil H. Bell, Jr.[2004]
Sought to define organizational environments in terms of nine climate dimensions: structure, responsibility, reward, risk, warmth, support, standards, conflict, and identity.
Stringer & Litwin. G. [1968]
Cont----
Job Satisfaction
Job satisfaction is often thought to be the gratification of strong needs in the workplace or the degree of discrepancy between what a person expect to receive from work and what that person perceives is actually received.
John b. Miner [2002]
Employees with high job satisfaction do exhibit higher organizational citizenship behavior, which ultimately does have positive effects on the productivity of the entire organization.
Catt and Miller [1994]
Relationship Between Organizational Climate and Job Satisfaction.
Rice has investigated the relationship between job satisfaction and organizational climate and asserted that people were the heart of any enterprise because their ideas, attitudes, and efforts were key causes of organizational success.
Rice. C. [1982]
Individuals in the organization have certain expectations, and fulfillment of these, depends upon their perception whether organizational climate suits according to their needs or not.
Ritu Lehal [2004]
Variables of Organizational Climate and Job Satisfaction.
Organizational Climate
Organizational Structure Rewards Support Standard Conflict Resolution Identity Leadership Empowerment Human relations Communication Decision making Equity Responsibility Initiative
Job satisfaction
Work itself (4 questions)
Supervision (4 questions)
Colleagues (2 questions)
Miscellaneous (4 questions)
Objectives of the Study.
To compare the three banks; NBP, MCB, & SCB with reference to their organizational climate and job satisfaction
To study the inter-relationship of the two variables; organizational climate and job satisfaction
To analyze the perceptions of employees of each bank for organizational climate and job satisfaction.
To find out the effect of organizational climate’s sub-factors on job satisfaction.
Hypothesis Formulation
Hypothesis-1:H0: For organizational climate the mean value of 90
executives of the three banks is the same.
H1: For organizational climate the mean value of 90 executives of the three banks is not the same.
Hypothesis-2H0: With respect to job satisfaction, the mean value of
90 executives of the three banks is the same.
HI: With respect to job satisfaction, the mean value of 90 executives of the three banks is not the same.
Research Methodology
This research is based on descriptive cum analytical quantitative method
Data has been described through Box plotting
Data analysis has been done through Spearman’s rank correlation coefficient Kruskal Wallis test Multiple Regression analysis
Research Methodology
Data Collection
Personally administrated questionnaire based on 14 sub factors for each of both the organizational climate and job satisfaction.
Secondary data has been collected through literature search, by consulting research journals, organization reports, books,
newspapers, and internet surfing. Sampling
Based on convenience sampling method,
researcher has visited four (04) branches
for each of the three banks and able
to survey 90 executives.
35 3124
05
101520253035
No. of Responden
ts
NBP 4,branches
MCB 4,branches
SC 4,branches
Banks
Sample Size
Data Analysis and InterpretationG
RO
UP
1.00
2.00
3.00
ORG.CLIM
8070605040302010
13
NBP
MCB
SCB
Organizational Climate & Box Plots
GR
OU
P
1.00
2.00
3.00
JOB.SATI
80706050403020
18
Job Satisfaction & Box Plots
MCB
SCB
Data Analysis and Interpretation
Inter-relationship of Organizational Climate & Job Satisfaction
JobJobSatisfactionSatisfaction
Org. ClimateOrg. Climate Correlation CoefficientCorrelation Coefficient .685*.685*
Sig. (2-tailed)Sig. (2-tailed) .000.000
NN 3535
JobJobSatisfactionSatisfaction
Org. ClimateOrg. Climate Correlation coefficientCorrelation coefficient .406*.406*
Sig. (2-tailed)Sig. (2-tailed) .023.023
NN 3131
Spearman’s Correlation Coefficients NBP
Spearman’s Correlation Coefficients MCB
JobJobSatisfactionSatisfaction
Org. ClimateOrg. Climate Correlation CoefficientCorrelation Coefficient .429*.429*
Sig. (2-tailed)Sig. (2-tailed) .036.036
NN 2424
Spearman’s Correlation Coefficients SCB
*Sig. .05
*Sig. .05
*Sig. .05
Difference in Perception of Executives Across the Banks.
Org. ClimateOrg. Climate Job SatisfactionJob Satisfaction
Chi-SquareChi-Square 35.22735.227 37.32237.322
dfdf 22 22
Asymp. Sig.Asymp. Sig. .000.000 .000.000
GROUPSGROUPS NN Mean RankMean Rank
Org. ClimateOrg. Climate NBPNBP 3535 27.3327.33
MCBMCB 3131 48.5848.58
SCBSCB 2424 68.0268.02
TotalTotal 9090
Job SatisfactionJob Satisfaction NBPNBP 3535 26.6926.69
MCBMCB 3131 48.9748.97
SCBSCB 2424 68.4668.46
TotalTotal 9090
Kruskal Wallis Test (Ranks)
Test Statistics
Sig. 5%, Table Value: 5.991
On the basis of Kruskal Wallis Test Results,
Our 1st Null Hypothesis is rejected. It means that mean values for Organizational Climate of 90 executives are not same. Similarly,
Our 2nd Null Hypothesis is also rejected. It means that mean values for Job Satisfaction of 90 executives are not same.
Effect of Organizational Climate on Job Satisfaction
RRRR
Sq.Sq.F F
ChangeChange df1df1 df2df2Sig.Sig.
F ChangeF Change
.785.785 .616.616 7.9207.920 1515 7474 .000.000
Multiple Regression Analysis for Organizational Climate and Job Satisfaction Model Summary
Table Value: 1.81
Effect of Organizational Climate on Job Satisfaction
VARIABLISVARIABLIS CoefficientsCoefficients tt Sig.Sig.
STRUCTURSTRUCTUR 3.3993.399 2.4782.478 .015.015
RESPONSIBILITYRESPONSIBILITY .559.559 .402.402 .689.689
REWARDSREWARDS 1.4171.417 1.3781.378 .172.172
INITIATIVEINITIATIVE 2.1742.174 1.8871.887 .063.063
SUPPORTSUPPORT .188.188 .170.170 .866.866
STANDARDSTANDARD -1.071-1.071 -.835-.835 .407.407
CONFLICTCONFLICT -.895-.895 -.577-.577 .566.566
IDENTITYIDENTITY 2.4192.419 2.2872.287 .025.025
LEADERSHIPLEADERSHIP -.582-.582 -.420-.420 .676.676
EMPOWERMENTEMPOWERMENT -3.051-3.051 -2.095-2.095 .040.040
HUMAN RELATIONSHUMAN RELATIONS 2.5422.542 2.0572.057 .043.043
COMMUNICATIONCOMMUNICATION -1.828-1.828 -1.077-1.077 .285.285
DECISION MAKINGDECISION MAKING 3.869E-023.869E-02 .025.025 .980.980
EQUITYEQUITY -3.104-3.104 -2.856-2.856 .006.006
COEFFICIENTS
Conclusion
The best employees perception is in SCB which indicates the best organizational climate prevails. Accordingly, the job satisfaction is also the highest amongst the three banks
Out of 14 sub factors of organizational climate three, organizational structure, identity, and human relations, are positively related to the job satisfaction.
However, the two factors, equity and empowerment, are negatively related to the job satisfaction.
Recommendations
Structure, Identity and Human Relations are positively related to the job satisfaction, for all the three banks.
Therefore , banks are required to focus more on the above mentioned factor to have more satisfied employees with them:
ii) Equity and Empowerment are negatively related to job satisfaction, for all the three banks.
Therefore there is a need to: Promote the advantages of equitable treatment of executive in
their banks and
Promote the practice of delegation of power, greater involvement in decision making, capacity building and proper Rewards for their good performance
ii) Equity and Empowerment are negatively related to job satisfaction, for all the three banks.
Therefore there is a need to:
Promote the advantages of equitable treatment of executive in their banks and
Promote the practice of delegation of power, greater involvement in decision making, capacity building and proper Rewards for their good performance
Research Methodology
Research Limitations:
Researcher has selected executives of only OG I, II, and III of the NBP, MCB and SCB, so the, results can not be generalized to employees at all level in banks
There was time limitation for this research which was a big challenge for the researcher
Future Areas of Research
If people are satisfied from their jobs, and if there exist the right type of climate, effectiveness can certainly be brought in the functioning of the organization.
Therefore this specific aspect of effectiveness should be studied along with organizational climate and job satisfaction.
Thanks
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