CEE CENTRE EXECUTIVE EDUCATION

A Report on the study of Organizational Climate of Professional Colleges
Business Decision Making
Rashida Yvonne Campbell 1/6/2010

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Contents
Contents................................................................................................................ 2 Executive Summary...............................................................................................2 1 - Introduction......................................................................................................4 1.1 Purpose of the study.....................................................................................4 1.1.1 Related studies..........................................................................................4 1.2 Who are the subjects of this study...............................................................5 1.3 Aims and Objectives.....................................................................................5 1.4 How the study is investigated.......................................................................5 2. Key Findings and Analysis.................................................................................6 Table 1................................................................................................................6 Mean Score and Rating.......................................................................................6 Table 2................................................................................................................6 Demographic Details of Employees....................................................................6 Table 3................................................................................................................7 Average Mean Score with Respect to Factors of Organisational Climate............7 2.1 Results Explained for Table 3.......................................................................8 3. Conclusion....................................................................................................... 11 4. Recommendations...........................................................................................12 5. References.......................................................................................................13 Bibliography.........................................................................................................14

Executive Summary
Report Title: Organisation: Report by: Organizational Climate of Professional Colleges Professional Colleges of Indore District Rashida Y Campbell

Objectives The study is to understand the present climate of professional colleges. From the findings of the research it will be decided if the climate is positive or negative and for either case to make suggestions in order to improve the present climate so that performance can also be improved.

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Sources of Data Primary sources of data using a 4-point scale questionnaire on the various factors that makes up organisational climate. Scope and Limitations Questionnaire administered on 40 randomly selected faculty members (23 male and 17 female) of professional colleges of Indore District. An organisational climate study enables a successful organization to operate more efficiently through the use of worker input and satisfaction ratings. Findings Development of employees Leadership Training Recruitment and Promotion These areas scored Cooperation Innovation either Very Good, Good Commitment Trust & Satisfactory Interpersonal Relations Performance Appraisal Job security either Physical facilities Poor or Reward Decision Making Responsibility Communication social security Counselling These areas scored Satisfactory, Inadequate

Conclusion and Recommendations The areas that score ratings of satisfactory, poor and inadequate are where the organisation needs to pay attention and focus on improving to gain better output performance. • Decision making received low score ratings, therefore it is recommendable for the top management to provide more inclusion of its faculty members during the decision-making process. • Communication and counselling are low score areas according to 75% of employees. After appraisal more guide and counselling needs to be provided so employees can improve their weaknesses. • Physical facilities and social security are also low score areas, the organisation must invest and improve facilities in the forms of transport, canteen etc. Social security should be provided to all employees as a benefit. • 55% of employees are dissatisfied with the level of financial and non-financial rewards. More attention focus and improvement needed in this area the organisation should revise its current reward system. The more satisfied employees are with the organisational climate the more motivation they will instil and therefore the better the performance output.

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1 - Introduction
This is a report on the study of ‘Organisational Climate of Professional Colleges.’ Organisational climate is comprised of a mixture of norms, values, expectations, policies and procedures that influence work motivation, commitment and ultimately individual and work-unit performance. It refers to the quality of working environment. Creating a ‘healthy’ organizational climate requires attention to the factors which influence employees’ perceptions including the quality of leadership, the way decisions are made and whether the efforts of the employees are valued. 1.1 Purpose of the study The studies investigate the link between organisational climates with corporate performance. It is hypothesized that a positive climate will encourage and improve performance, while a negative climate will discourage and inhibit performance. Professional colleges such as those training students in the fields of medicine, engineering, management, pharmacy, architecture etc, are responsible for developing these students into high quality professionals who will then be responsible for the future nation. To achieve this, it is therefore necessary to ensure that the faculty members – the employees mainly the lecturers must be satisfied with the organisational institute within which they work. 1.1.1 Related studies It is important to mention that there have been many studies examining organisational climate and its affect on performance over the past three and a half decades. The findings of such studies can provide management with evidence for them to consider whether or not to make changes within their organisation. Such studies include:

G James Francis & Gene Milbourn Jr. pg 92 “Organisational climate has helped to develop as a mature concept in management.”

• Mark A Shadur, Rene Kienzie & J Rodwell their study “The Relationship between Organisational Climate and Employee Perceptions of Involvement,” found that employee perceptions of participation in decision-making,

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teamwork and communication created an employee supportive environment with greater job satisfaction.

Davidson, Michael Cameron Gordon in the study “Organisational Climate and its Influence upon Performance” studied Australian Hotels and found that there is a direct link between organisational climate and financial performance. Chris Watkins, Hay Group, UK conducted a survey of 10 bottling plants in one of the world’s largest soft drinks. The survey “How to Improve Organisational Climate” was published in the journal ‘People Management in June 2001. The results showed the most favourable working environment were also the most profitable. The research building upon Litwin and Stringer at Harvard University indicates 50-70% of organisational climate can be traced to its leadership or management style.

1.2 Who are the subjects of this study This study has been conducted from a random sample size from professional colleges of Indore District limited to only the teaching faculty of these colleges. The study conducts research according to the employees’ point of view. 1.3 Aims and Objectives • To study the present climate of professional colleges • To provide suggestions for improvement of the climate 1.4 How the study is investigated • Based on primary data collection using a survey • Using a 4-point scale questionnaire on faculty members developed by T. V. Rao • Allowing 4 types of responses Strongly Disagree, Disagree, Agree, and Strongly Agree. The scores to these responses are 1, 2, 3, 4. • Questionnaire administered on 40 randomly selected faculty members (23 male and 17 female) of professional colleges of Indore District. • Item-wise score of each respondent of agreement options was found in percentage.

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• Mean was calculated in percentage and used in placing it in different ranges • Average mean scores of items related to specific factors are also calculated to find conclusions. It is also used to compare different demographic details of employees • According to Z-Test a sample above 30 is considered as large so the Z-Test proportion is used for the analysis of data.

2. Key Findings and Analysis
Table 1 Mean Score and Rating Range/True Statement 85% and above 75% - 84% 67% - 74% 59% - 66% 50% - 58% 40% - 49% <40%

Mean Score 3.5 – 4.0 3.2 – 3.5 2.9 – 3.2 2.6 – 2.9 2.3 – 2.6 2.0 – 2.3 <2.0

Rating Excellent Very Good Good Satisfactory Inadequate Poor Very Poor

Table 2 Demographic Details of Employees Male Female Average age in years 40.34 43.35 Average length of service 13.41 12.05 Designation Lecturer 37.5% 27.5% Assistant Professor 2.5% 10% Professor & Above 17.5% 5% Qualification Graduate 27.5% 17.5% Postgraduate 22.5% 22.5%

Total 41.84 12.73 65% 12.5% 22.5% 45% 45%

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Doctorate

7.5%

2.5%

10%

S. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Table 3 Average Mean Score with Respect to Factors of Organisational Climate Factors Male Femal e Development of GOOD 3.13 3.11
employees Leadership

3.02 3.28 3.20 3.08 3.05 3.04 3.05 2.91 2.82 3.09 2.82 2.52 2.03 2.07 2.54

3.06 3.50 3.35 3.17 3.04 3.11 3.07 3.05 3.11 3.14 3.11 2.66 2.41 2.16 2.73

GOOD V.GOOD V.GOOD GOOD GOOD GOOD GOOD GOOD
SATISFACTORY/GO OD

Recruitment and Promotion Training Cooperation Innovation Commitment Trust Interpersonal Relations Authority Performance Appraisal Responsibility Decision Making Communication Physical facilities and social security Reward

GOOD
SATISFACTORY/GO OD

INADEQUATE
POOR/INADEQUAT E

POOR
INADEQUATE/SATISFA CTORY

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17 18

Counselling Job security

2.21 2.50

2.22 2.90

POOR
INADEQUATE/SATISFA CTORY

2.1 Results Explained for Table 3
2.1.1 Development of Employees • The average mean score of 3.12 on the views of the employee’s state that 67%-74% believe development of subordinates by superiors are good. Male and female have similar perceptions. 2.1.2 Leadership • The average mean score 3.05 on the views of the employee’s perception on leadership are good. Male and female employees with Post-Graduate and Doctorate degrees are best satisfied with leadership available to employees. 2.1.3 Effectiveness of Recruitment Procedure & Promotion System • The average mean score 3.12 on the views of the employee’s perception on recruitment and promotion is very good. Both male and female employees with PostGraduate and Doctorate degrees have no significant difference. 2.1.4 Training • The average mean score 3.2 on the views of the employee’s perception on training is very good. Female employees have greater satisfaction than that of men. Female employees with a length of service up to ten years have the greatest satisfaction. 2.1.5 Cooperation

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• The average mean score 3.12 on the views of the employee’s perception on cooperation is good. Female employees feel better cooperation than men with the same length of service. 2.1.6 Innovation, Changes and their Management • The average mean score 3.05 on the views of the employee’s perception on innovation, changes and their management are good. There is a significant difference between male and female. Male employee’s age group 3850 mean 3.5 and that of female employees with PostGraduate and Doctorate and higher posts with a mean of 4.0 is Excellent.

2.1.7 Commitment • The average mean score 3.07 on the view of the employee’s perception on commitment are good. Female employees feel that management’s commitment is satisfactory, while male employees with higher posts like reader and professor feel it good. 2.1.8 Trust • The average mean score of 2.85 on the view of the employee’s perception on trust are satisfactory. Female employees feel that the trust level is good. 2.1.9 Interpersonal Relations • The average mean score of 2.95 on the view of the employee’s perception on interpersonal relations are good. Female employees feel the relations with greater intensity than that of male employees. 2.1.10 Authority • The average mean score of 2.95 on the view of the employee’s perceptions on authority is satisfactory according to the males. Females score is significantly higher resulting in good. 2.1.11 Performance Appraisal

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• The average mean score of 2.92 on the view of the employee’s perceptions on performance appraisal is good. Male and female employees agree equally. 2.1.12 Responsibility • The average mean score 2.95 are the opinion that higher officers discharge their responsibilities effectively towards their subordinates. Male lecturers view acts of responsibilities as satisfactory whereas females view it as good. 2.1.13 Decision-Making • The average mean score of 2.5 states that 50%-58% employee’s feel that they do not get adequate chances of their involvement in the process of decision making in the organisations. Perception of male and female members about decision making is almost the same.

2.1.14 Communication • The average mean score of 2.32 of the view of the employee’s perception on communication regarding feedback to subordinates is poor. General communication average mean score is 3.3 is good. Male employees of the age group 38-50 and female post of reader and professor find feedback system inadequate. 2.1.15 Physical Facilities and Social Security • The average mean score of 2.08 states that most of the employees are not satisfied with the physical facilities and social security such as telephone, office facilities, canteen, medical, transportation etc, being provided to them from their organisations. Male employees of the age group 3850 and female employees at the post of reader/professor find physical facilities very poor. 2.1.16 Reward • The average mean score of 2.62 of the view of employee’s perceptions on reward states that reward is almost
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inadequate. There is little difference between male and female opinions. 2.1.17 Counselling • The average mean score of 2.22 of the view of employee’s perception on counselling facilities available to the organisation is unsatisfactory. 40%-49% employees are not satisfied, male and female employees have almost the same perception that it is poor. 2.1.18 Job Security • The average mean score of 2.6 of the view of employee’s perception on job security is satisfactory. Female employee’s age group 51-62 perceive it better than male employees. Male employee’s age group 25-38 perceive job security as inadequate.

3. Conclusion
Organisational Climate studies the employees' perceptions and perspectives of an organization. The surveys address attitudes and concerns that help the organization work with employees to instil positive changes. Organisational climate surveys increase productivity. Climate surveys give employees a voice to assist in making desired transitions as smooth as possible. It also serves as a basis for quality improvements. By identifying areas of inefficiency and acting on performance barriers identified by employees of all levels, an organization gains a fresh and different perspective. Survey analysis identifies areas of employee satisfaction and dissatisfaction to facilitate management in the creation of greater workplace harmony and, therefore, increased productivity. The aim of this study was to examine the present organisational climate of professional colleges at the Indore District. The study was based on the recognition that a good healthy organisational climate affects employee’s performance. Once an investigation is complete then suggestions for improvement can be made. The research also implies that
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professional colleges have a responsibility towards its performance in producing and developing students into responsible professionals of the future which in turn will affect the nation. The research was based on primary data collection using questionnaires. It can be argued here that the main limitation of this study was its sample size because it only focused on the Indore District of randomly selected professional colleges. The research was also limited to teaching faculty employees of these colleges. The Z-Test was also the only method used for the assessment of the answers to give the mean score. On completion of the research survey conducted at the Indore District Colleges; it is concluded that 60% of the faculty members of the professional colleges are satisfied with the climate of their organisation. The factors that determine a healthy climate such as: development of employees, leadership, recruitment & selection, training, cooperation, innovation, commitment, trust and performance appraisal all received higher score ratings as either very good or good. The factors regarding; decision-making, communication and counselling, physical facilities and social security and reward received a mixed response from inadequate, poor and satisfactory. These are the main areas of concern for the organisations to improve on. As previous studies have shown the importance of organisational climate has a direct link with corporate performance. . Conclusions are drawn from this data, and recommendations are made to the management team.

4. Recommendations • 4.1 Decision Making Top management should devote enough time to its colleges so that its members can themselves be included in the decision-making process. This can result in motivation for employees. Providing more responsibility to its faculty members to contribute to the decision making process is one of the key factors to establishing a good organisational climate. If an employee is involved in the decisions and choices for the future of the organisation

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then they are more likely to participate in achieving those decisions that have been made.

4.2 Communication and counselling 75% of employees find that there is no counselling at the end of their performance appraisal. It indicates that they are unable to know their Strengths, Weaknesses properly. If they want to improve their performance further, they get no feedback. Employees need to solidify their strengths and minimise their weaknesses. It will add to the total performance of the colleges. Employees should be provided counselling whenever they need it. Guidance and counselling cells should be opened guidance and counselling as per need of organisation. Professional colleges increase the effectiveness of their communication system. They should realize the importance of feedback in communication. Good communication is the soul of an organisation. 4.3 Physical facilities and social security Physical facilities should be improved so that people feel satisfied with their jobs. The organisation needs to invest in the facilities to improve areas such as equipment (telephones), better canteen facilities and transportation. Employees should be provided social security; organisations in most western countries are legally bound to provide social security. All these work toward a better organisational climate. 4.4 Reward 55% employees feel that there are not enough ways to regard good work done by them; they should be rewarded in as many as possible ways. All financial and non-financial ways should be used so that the employees feel motivated for further good work. It will also work as motivation for others.

5. References

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T. V. Rao 4 point scale and Z-Test • Lecturer, Department of Humanities, Shri Vaishnav Institute of Technology and Science, Indore • Officer on special duty, Shri Vaishnav, Vidyapith (Deemed University), Indore, and former Director, Shri Vaishnav Institute of Management, Indore

Bibliography • G James Francis & Gene Milbourn Jr. pg 92 “Organisational climate has helped to develop as a mature concept in management.” • Mark A Shadur, Rene Kienzie & J Rodwell their study “The Relationship between Organisational Climate and Employee Perceptions of Involvement,” • Chris Watkins, Hay Group, UK conducted a survey of 10 bottling plants in one of the world’s largest soft drinks. The survey “How to Improve Organisational Climate”

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