A STUDY ON ORGANISATIONAL CLIMATE WITH

SPECIAL REFFERANCE TO UNITED BREWERIES LTD

CHERTHALA
The project work is submitted to
KERALA UNIVERSITY, THIRUVANANTHAPURAM
In partial fulfillment of the requirement for the award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
Submitted By
ARUN KRISHNAN T.S
19514812018
UNDER THE SUPERVISION AND GUIDANCE OF

VISHNU GOPALAKRISHNAN
Lecturer, DEPARTMENT OF MANAGEMENT

DEPARTMENT OF MANAGEMENT

NAIPUNNYA SCHOOL OF MANAGEMENT

(AFFILIATED TO KERALA UNIVERSITY,THIRUVANANTHAPURAM)
CHERTHALA, ALAPUZHA- 688524
2014-2017

DEPARTMENT OF MANAGEMENT

NAIPUNNYA SCHOOL OF MANAGEMENT

CERTIFICATE
This is to certify that this report entitled A STUDY ON ORGANISATIONAL
CLIMATE

WITH

SPECIAL

REFERENCE

TO

UNITED

BREWERIES,CHERTHALA is a bonafide record of original work

done

independently by ARUN KRISHNAN T.S BBA Student, Naipunnya School of

Management, Cherthala

under my guidance and supervision. Submitted to

Kerala University, Thiruvanathapuram for the award of the Degree of Bachelor

of Business Administration.
VISHNU GOPALAKRISHNAN
PROJECT GUIDE & HEAD OF THE DEPARTMENT
NAIPUNNYA SCHOOL OF MANAGEMENT
CHERTHALA

FORWARDED TO THE UNIVERSITY

Fr. Dr. PAUL KAITHOTTUNGAL
PRINCIPAL
NAIPUNNYA SCHOOL OF
MANAGEMENT
PLACE: CHERTHALA
DATE :

ACKNOWLEDGEMENT
This report is an outstanding prospect to convey my gratefulness to those many
people whose timely help and guidance went a long way in finishing this project work
from commencement to achievement.
First and foremost, I thank almighty for keeping me well and healthy for successful
completion of the project.
I would like to express my sincere thanks to Dr. Fr. PAUL KAITHOTUNGAL for
giving me an opportunity to do this project.
This project could not been completed without the able guidance and support of MR
VISHNU GOPALAKRISHNAN
Last but not the least would like to thank my friends, family members and all those
people who helped me for the completion and deeper understanding of the concept
Organizational Climate .Working on this project has proved to be an enlightening
experience for me.

ARUN KRISHNAN T
S

DECLARATION
I hereby declare that the project titled for "A Study on Organizational Climate with
special reference to United Breweries Ltd" is a bonafide work done by me after
detailed survey, necessary references and consultation during the period of my studies
in Naipunnya School of management in Kerala affiliated to Kerala university under
the guidance of Mr VISHNU GOPALAKRISHNAN, lecturer of Department of
management. The Contents of this Project was not lifted from any source and is
purely compiled from the honest work and effort from my side.

Place: Alappuzha

ARUN

KRISHNAN T S
Date:

TABLE OF CONTENTS
4

Chapter

Title

Page No.

Acknowledgment
List of Tables
List of Charts
Introduction
1.01 Scope of the study
1.02 Need and significance
1.03 Review of literature
1.04 Industry profile
1

1.05 Company profile

8-23

1.06 Product profile

1.07 Statement of the problem
1.08 Objectives of the study
1.09 Research methodology
1.10 Chapterisation Scheme
THEORETICAL CONCEPTS
2

RELEVENT TO THE STUDY

DATA ANALYSIS AND

3

INTREPRETATIONS

FINDINGS, SUGGESTIONS AND

24-27

28-44

45-48

CONCLUSION
49

BIBLIOGRAPHY

LIST OF TABLES

Table

Title of the tables

No.

Page No.

3.01

Performance in Current Environment

29

3.02

Opinion about Current Work Environment

30

3.03

Opinion on Welfare activities conducted by the organization

31

3.04

Opinion about Health and safety programs

32

3.05

Opinion about Health and Safety equipments provided

33

3.06

Level of satisfaction with the current working hours.

34

3.07

Opinion on interpersonal relationship with other workers

35

3.08

Opinion about relation with Supervisors

36

3.09

Opinion about the relationship with management

37

3.10

Whether the employees are free to express their opinions on

Decision making process

38

3.11

Whether the Company considers the Views and Opinions

39

3.12

Opinion on the recognition Provided by the organization

40

3.13
3.14
3.15
3.16

Whether the Employees think that they are better than other
workers in similar organizations
Types of Rewards

41
42

Level of Satisfaction With the current benefits provided by

the Organization
Level of Satisfaction with the current organizational climate

43
44

LIST OF CHARTS
Table
No.
3.01

Page
Title of charts
Performance in Current Environment
6

No.
29

3.02

Opinion about Current Work Environment

30

3.03

Opinion on Welfare activities Conducted by the Organization

31

3.04

Opinion about Health and Safety Programs

32

3.05

Opinion about Health and Safety equipments Provided

33

3.06

Level of satisfaction with the Current Working hours.

34

3.07

Opinion on interpersonal Relationship with other workers

35

3.08

Opinion about Relation with Supervisors

36

3.09

Opinion about the Relationship with Management

37

3.10

Whether the employees are free to express their opinions on

Decision making process

38

3.11

Whether the Company considers the Views and Opinions

39

3.12

Opinion on the Recognition Provided by the Organization

40

3.13
3.14
3.15
3.16

Whether the Employees think that they are better than other
workers in similar organizations
Types of Rewards

41
42

Level of Satisfaction With the Current Benefits Provided by the

Organization
Level of Satisfaction with the current Organizational Climate

43
44

CHAPTER: 1
INTRODUCTION

1.01Introduction
Human Resource is of Paramount importance for the success of any Organization It
is a source of strength and aid. Human resource is the wealth of an Organization
which helps it in achieving goals.
Human Resource Management is that process of management which develops and
manages the Human elements of an enterprise.HRM does not confine itself to the
8

selection of right type person on right jobs .It helps to develop a team spirit Where
Employees satisfy their aspirations by developing themselves and contributing to
the accomplishment of organizational goals.
Management tries to utilize all the sources of production in the best possible
manner. This can be achieved only when employees Co-operate in this task. Effort
should be made to motivate employees for contributing their maximum. This effort
of management will not bear fruit if employees are not encouraged to work more
this indicates the importance of Organizational Climate. If the Organization can
provide a favorable Work atmosphere by taking care of all the vital factors, it will
eventually result in better productivity and Goodwill.
The concept of organizational climate was formally introduced by the human
relationists in the late 1940s. Now it has become a very useful metaphor for thinking
about and describing the social system. Organizational climate is also referred to as
the situational determinants or Environmental determinants which affect the
human behavior.
Some persons have used organizational culture and organizational climate
interchangeably. But there are some basic differences between these two terms.
According to BOWDITCH AND BUONO, Organizational culture is connected
with the nature of beliefs and expectations about organizational life, while climate is
an indicator of whether these beliefs and expectations are being fulfilled.

Climate of an organization is somewhat like the personality of a person. Just as every

individual has a personality that makes him unique and different from other
persons. Each organization has an organizational climate that clearly distinguishes
it from other organizations.
Basically, the organizational climate reflects a persons perception of the
organization to which he belongs. It is a set of unique characteristics and features
9

that are perceived by the employees about their organizations which serves as a
major force in influencing their behavior. Thus, organizational climate in a broad
sense can be understood as the social setting of the organization.

1.02 Need and Significance

Organizational Climate is an important factor when it comes to the growth of a
company. It has been often said that A happy Employee is a Productive Employee.
Only a Good Organizational Climate can ensure the happiness of an employee at a
work place. A happy employee can be motivated easily to do or indulge in productive

10

work. Through this study it is possible to study, evaluate and bring about changes in
the existing organizational climate if there exists any problem.
If the employees are not happy, they would prefer to leave the organization and join
another organization which would provide them a better work environment and
climate. Organizational climate is the key factor which determines and controls the
employee turnover in an organization. Treatment of this concept with paramount
importance will definitely benefit the organization.
Limelight on the development of employee performance needs to be at the top
of every organizations agenda. A positive workforce climate is no longer seen as a
simply an attractive option; it is a business vital

1.03 Review of literature

Organizational climate is a shared perception of what the organization is like in
terms of practices, policies, procedures, routines, and rewards what is important
and what behaviors are expected and rewarded- and is based on sharedperceptions

11

among employees within formal organizational units (BOWEN &OSTROFF,

2004).
Organizational climate represents the condition ofthe organizations culture. The
most common management issue faced by organization in this present day is search
for creative flexible work environment that promotes job satisfaction and
innovation. Being trained by fiscal constraint, downsizing, and outsourcing
requires organization to change dynamics in the workforce that is accommodating.

REKHA NAIR (2006) in her study noted the increasing importance of workplace
climate on employee job satisfaction, creativity, motivation and retention.
Because of the importance of workplace climate, IBM made adjustments and set
best practices which in turn have helped the organization to stay on top. In between
organizational climate and company performance, employee plays an
important role because employees job satisfaction is highlighted as the mediator
between organizational climate and company performance (PATTERSON
ET.AL 2004).

Literature on organizational climate and its impact on firms overall performances

many (JAMES & JONES, 1974), but the recent studies of climate is a bridge that
links HRM and performance. Organizational climate have been proven to
influence employees behavior such as participation, absenteeism level of stress
and work commitment (ROSE, 2002, 2004).
Limelight on the development of employee performance needs to be at the
top of every organizations agenda. A positive workforce climate is no longer seen
as a simply an attractive option; it is absences is vital. Climate has a tangible effect
on employees motivation. A good working climate boosts employee morale, loyalty
and productivity. There are 6 different dimensions of climate (established by Hay
Group)

1.04 Industry Profile:

Brewery industry in India

12

Beer in India has been am import since the early 18 th century and brewed natively
since the late 1820s the first brewery in India was set up in kasuali, in the Himalaya
Mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer Dyers
brewery produced Asias first beer called LION.
The Indian beer industry has been witnessing steady growth of 10%-17% per year
over the last ten years The rate of growth has increased in recent years, with volumes
passing 170 million cases during the 2008-2009 financial years With the average age
of the population on the decrease and income levels on the increase, the popularity of
the beer in the country continues to rise The quality of Indian beers was generally
considered below average in the past However, in the recent years craft brewers such
International Breweries pvt Ltd have entered the market with a focus on high quality
brewing As a result the quality of Indian beer has improved dramatically over the
past decade.
The Indian beer industry has witnessed a big change during the last five years The
industry was previously dominated by competition

between the Vijay Mallya

controlled United Breweries Group and the Manu Chabbria controlled Shaw Wallace.
US bolstered its presence in the country in 1999 by creating sister company
Millenium Alcoveb, which produces beer brands like Zingaro and Sand piper Today,
this is a joint venture between the UB Group and Ravi jain, a friend of Mallya UBs
Kingfisher is the largest selling brand overall in the market

Domestic Industry

13

The beer and liquor market continuous to grow at an impressive rate even against an,
economic recession, the social stigma remains in a place, while manifests itself in
anti-growth state policies
However, Rs 60 billion organized beer and liquor industry has been growing at an
impressive rate In sharp contrast to the trend the world over, beer is losing ground to
hard liquor in India Amidst beers, the current trend is that larger beer is giving way to
strong beer Even as liquor manufacturers could hope to garner the people who are
shifting from beer to liquor, there is a vast country liquor market and a sizable grey
market to content with.
United breweries (UB), Shaw Wallace and McDowell (part of UB group) presently
dominate the liquor and beer market The market on its part is set to undergo a sea
change with the arrival of MNCS by The removal of quantitative restrictions (QRS)
A Brewery is a dedicated building for the making of, through beer can be made at
home, has been for much of beers industry A company that makes beer is called is a
brewery or a brewing company The diversity of size in breweries is matched by the
diversity of process, degrees of automation and kinds of beers produced breweries A
brewery is typically divided into distinct sections, with each section reserved for the
one part of the brewing process
The brewing industry is a Global business, Consisting of Several dominant
multinational

Companies

and

thousands

of

smaller

producers

known as

Microbreweries depending on size and region. More than 133 billion liters are sold
per day producing total global revenues of 294.4 billion USD as on 2006.

Structure of Industry
14

The brewery industry Consists of beer Manufacturing Companies like Belgium based
Anheuser-Busch, London based SA Bmiller (SAM.L), Heineken and Denmarks
Carlsberg have moved ahead of the rest of the part led by chinas Tsingtao Brewery in
5th place.
Budweiser Brewer AB-InBew had beer volumes of around 350 million hectoliters in
2009, well ahead of Miller Brewer SAB miller at just under 250 million, Heineken at
Hustover 200 million and Carlsberg around 125 million, while Tsingtao trailed at just
over 50 million hectoliters a year. In sixth place was north American Molson Coors
Brewing Co (TAP.N), While Mexicos GrupoModelo (GMODELOC.MX), Chinas
Beijing Yanjing Brewery Co ltd and Japanese Brewers Kirin Holdings Co Ltd and
Asahi Breweries Ltd made up the rest of the top 10.
Market Share
The Combined Market Share of top four Brewers grew from 22% by Volume in 1998
to nearly 50% in 2010.SAB miller has been talked of as a potential buyers for Molson
Coors, Australias Fosters, Efes , Turkeys largest Brewer though it might Find itself
in competition with Heineken .The market share of UB is 55% of the market and in
Kerala it is 79.9%.
Broad View of the Industry:
Mass Market beer Tastes like Soapy Water. People in Rich Countries are not drinking
enough beer. By volume sales feel in 2010 by 1.5% in US and 2.5% in Europe. Due to
the fall in quality and Taste the Customers have switched to other Beverages such as
Wine and Spirits.

Over view of the Organization

15

UB GROUP
Industry: Conglomerate
Founded: 1857
Founder: Thomas Leishman
Head Quarter: UB City, Bangalore
Area Served: India
Chairman: VijayMallaya
Products: Brewery, Alcoholic Beverages, chemicals Engineering, IT, Airline and
Pharmaceuticals
Division: United Spirits Ltd, United Breweries Ltd, Mangalore Chemicals and
Fertilizers Ltd
Business Summary
The Indian Beer Market is at the Start of its Growth Trajectory with a Per Capita
Consumption of only about 1.5 liters. This is significantly below the Global average
per capita Consumption of 27 liters and other emerging markets such as China, Russia
etc. Beer accounts or about 32% of the Indian Beverage Market by Volume.Sales of
the Company have achieved a 6% on sales in the previous year under review.
Total Sales Volume has Reached 133 million Cases. The net sales of the year 2011-12
are 277 million. The increased sales have enabled the company to notch up market
share notch up a market share of 55% more than twice that of closest competitor. The
net turnover for the year 2013-14 is 37,007 million .manufacturing Expenses stood at
16,278million.Employee benefit expenses of the company Stood at 1882 million. This
Comprised 5.2% of Net sales. Selling and Brand Promotion Expenses -10,003
million.
Earnings beforeinterest, taxation, Depreciation and Amortization stood at Rs.4850
.Compared to Rs.4348 million in the previous year, there was an increase of 11.5%
.Profit before taxation is Rs. 2,176 million and profit after taxation is 1,264 million.

1.05Company Profile
16

History:
United Breweries or UB group is an Indian Conglomerate company headquartered in
Bangalore. It was established in the year 1826 by trading Company. Mr.Vittal mallaya
took over the UB group in year 1951. In early80s Dr.Vijay mallaya became the
Director of Mc Dowell and Company .In the year 1983 he became the chairman of
both UB group and McDowell. The company soon earned itself a reputation for
product development and marketing and marketing strategies .In 1987 the Company
shifted the Headquarters from Chennai to Bangalore. It also has Fully Fledged
technical Development center with research works being done in areas of product and
process developments.
The Logo:
The Pegasus, Which is the Symbol of UB found its place as the logo in 1940.Then ,
the Helladic horse associated with beer and Nectar in Greek Mythology carried a beer
case between the wings, Ostensibly because beer formed the core operations of the
group.Later the beer case was removed to represent the groups Multifaceted
Operations.
Quality statement:
They constitute a large, Global group based in India. They associate with World
leaders in order to adopt technologies and processes that it will enable a leadership
position in a large spectrum of activities. They are focused on assuming leadership in
all their target Markets .The seek to be the most preferred employer where ever they
operate. They recognize that their organization is built around people who are their
most valuable asset. They commit themselves to the ongoing mission of achieving
scientific excellence.
The UB group is one of the largest Companies in India with a Widespread network of
24 countries and Widely Diversified and well balanced portfolio of business activities.
The UB group maintains market leadership its traditional lines of business planning
alcoholic beverages,
Spirit and life sciences. The group objective is to position itself as the leader in each
of its field of activities.
Unit Cherthala:

17

The company is owned by Mc Dowell and UB groups Spirit Division. It was

Commissionedin 1973 and licensed capacity is 1.5 lac liters per month. From
February 2004 onwards the UB took over the Administration from Mc Dowell
EMPLOYEE WELFARE MEASURES IN UB GROUP
1. Cleanliness:
Factory is kept Clean by daily Sweeping and washing of the Floors of the Work
rooms. Walls, doors, windows shall be painted or re varnished at least once every
5 years. There should be atleast 6 hygiene workers who are responsible for
clearing the wastes from work area from time to time.
2. Disposal of Wastes
In the company, wastes are deposited in waste area and given to the outside
parties.Waste materials are stored out and those which can be useful to the
premises of the local area such as scraps, plastics sheets are bundled, is taken out
by outside parties
3. Lightning and Ventilation
Ideal tube lights are provided with washable covers adequate ventilation is
provided to avoid unwanted odor and condensation exhaust fans are provided for
this
4. Dust and Fumes
Effective measures shall be taken to prevent the inhalation and accumulation of
Dust and Fumes or other impurities at work place.
5. Toilets:
Each section is provided with adequate number of toilets with self closing doors
and washing solutions. The toilets are separated for male and female workers
within their work area
6. Protective Clothing
Company provides one pair of protective clothing at the start of every year.
7. Changing Rooms:
Adequate rooms are provided for employees to Change Clothes.
8. Health and Medical Facilities:
There are ESI schemes which cover the employees.

1.06 Product profile

18

United Breweries, Cherthala main deals with the production of Beer. Kingfisher is an
Indian beer brewed by United Breweries Group, Bangalore. The brand was launched
in 1978. With a market share of over 36% in India, it is also available in 52 other
countries.The Heineken Group holds 37.5% equity shares in United Breweries Ltd.
Kingfisher was ranked 74th among India's most trusted brands according to the Brand
Trust Report 2012, a study conducted by Trust Research Advisory. In the Brand Trust
Report 2013, Kingfisher was ranked 102nd among India's most trusted brands and
subsequently, according to the Brand Trust Report 2014, Kingfisher was ranked 198th
among India's most trusted brands.
During the years 2009 through 2015, United Spirits (USL) / Diageo exited all noncore investments in United Breweries and sold 850,000 INR shares to Heineken,
which will now give it leverage to managing affairs of India's largest beer producer.
USL sold 3.21% shares for Rs 872 core in a block trade. The shares were sold at Rs
1,030 apiece, a slight premium to Tuesday's closing price of Rs 1,014.10. As of July
2015, Heineken's stake in United Breweries (UB) has increased from 39% to 42.1%.
This deal will give Heineken an upper hand over Vijay Mallya in running the
company.

19

1.07 Statement of the Problem

Organizational climate is the process of quantifying the culture of an organization;
it precedes the notion of organizational culture. It is a set of properties of the work
environment, perceived directly or indirectly by the employees, that is assumed to be
a major force in influencing employee behavior, climate and culture are both
important aspects of the overall context, environment or situation.
Organizational climate plays a crucial role in the life of a company. A bad
organizational climate can result in disgruntled employees who will ultimately lead to
the destruction of a business whereas a good organizational climate will result in
happy employees and this in turn will boost the productivity of the entire
organization.
A goodclimate in the organization will definitely enhance the reputation and goodwill
both inside and outside the company and hence organizational climate is a concept of
paramount importance. without reputation or goodwill.
In this study the organizational climate at United Breweries is being studied to
understand and Find out what are the factors which affect the Organizational Climate
in the organization. This study can also give an insight into the deteriorating
employee-employer relations in the plant by identifying its certain causes.

20

1.08 Objectives of the study

A. Primary Objective:

To study the existing organizational Climate in the organization

To identify Key Factors Affecting the organization

B. Secondary Objectives
To analyze and find out the Existing Problems in the current Climate.

1.09. Research Methodology

Research Methodology is the Way to solve the research problem systematically. It
may be understood as a science of studying how the research is done scientifically and
extensive literature review of primary data sources was undertaken as relevant to the
stated objectives of study. Various tools of research methodology are used to analyze
the particular reasons which can cause comfort or discomfort to Employees which can
determine the level of organizational climate. Hence research methodology plays a
key role to enhance the potentials in the Study in each stage.
Research Design
The research Design used for carrying out the study is descriptive in nature.
Sample design
Sample Design used in this Project is Simple Random Sampling.
Sample Size
The sample size Selected for the Study is 100
Data Collection
After establishing the objectives and determining the design of the research study,it is
necessary to collect accurate data The data that are needed for the study can be
classified as primary data and secondary data

21

a. Primary data
The primary data are those which are collected as fresh for the first time and thus
happen to be original in character The primary data were collected directly from
employees with structured questionnaire This questionnaire consist of 16 questions,
which includes open ended, close ended and rating scale has also been adopted
Pilot study
Before collecting the primary data using questionnaire, the pilot has been conducted
on 10 respondents to find out the relevant of the questions are then framed in logical
manner and irrelevant once are screened out Thus well-structured questions are used
for collection of data from the employees
b. Secondary data
The secondary data are those which have already been collected by someone eels and
which have already passed through the statistical process the secondary data were
collected through company records and magazines, journals and from internet
Tools used
Questionnaires were adopted for collecting the primary data and simple percentage
analysis were adopted for analyzing the data
Limitations of the Study :
1. The employees were a bit hesitant to reveal the negative aspects in spite of the
confidence given to them that study is meant for academic purpose and the personal
details will maintained in total confidence.
2. Due to shortage of time the sample size is limited to only 100.
3. The information provided by the respondents is spontaneous and they may not
be consistent.

22

1.10 Chapterisation Scheme

The entire research work will run into four chapters. The first one on Introduction
brings out the importance of the study, and states its objectives and hypotheses. It also
includes methodology and limitations. Chapter II will contain importance of the topic
of study and history of the Problems. A Quick look on subjective well-being will also
be carried out in chapter II. Chapter III will be a methodological part of the study.
Analysis and Discussions is to be done in chapter IV. Findings, Conclusions and
Suggestions for further Research will be presented in Chapter V followed by
Bibliography and References.
Chapter 1 - Introduction
1.1Scope of the study
1.2 Need and significance of the study
1.3Review of literature
1.4Industry profile
1.5Company profile
1.6Product profile
1.7Statement of the problem
1.8objectives of the study
1.9 Research methodology
1.10Chapterisation Scheme
Chapter2- Theoretical concepts relevant to the study
Chapter 3-Data analysis and Interpretation
Chapter 4- Findings, Suggestions and Conclusions of the study
4.1 Findings
4.2 Suggestions
4.3 Conclusion

23

CHAPTER: 2
Theoretical Concepts Relevant to study

24

Theoretical Concepts Relevant to the study

The concept of organizational climate was formally introduced by the human
relationists in the late 1940s. Now it has become a very useful metaphor for thinking
about and describing the social system. Organizational climate is also referred to as
the situational determinants or Environmental determinants which affect the
human behavior.

Some persons have used organizational culture and organizational climate

interchangeably. But there are some basic differences between these two terms.
According to Bowditch and Buono, Organizational culture is connected with the
nature of beliefs and expectations about organizational life, while climate is an
indicator of whether these beliefs and expectations are being fulfilled.Climate of an
organization is somewhat like the personality of a person. Just as every individual has
a personality that makes him unique and different from other persons. Each
organization has an organizational climate that clearly distinguishes it from other
organizations.

Basically, the organizational climate reflects a persons perception of the organization

to which he belongs. It is a set of unique characteristics and features that are perceived
by the employees about their organizations which serves as a major force in
influencing their behavior. Thus, organizational climate in a broad sense can be
understood as the social setting of the organization.

25

Meaning and Definition:

Before understanding the meaning of organizational climate, we must first understand
the concept of climate.Climate in natural sense is referred to as the average course or
condition of the weather at a place over a period of years as exhibited by temperature,
wind, velocity and precipitation.
However, it is quite difficult to define organizational climate incorporating the
characteristics of natural climate. This is so because the most frustrating feature of an
attempt to deal with situational variables in a model of management performance is
the enormous complexity of the management itself. People have defined
organizational climate on the basis of its potential properties. A few important
definitions are as given below.

According to FOREHAND AND GILMER, Climate consists of a set of

characteristics that describe an organization, distinguish it from other organizations
are relatively enduring over time 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 (such as degree
of autonomy) and behavior outcome and outcome- outcome contingencies.

26

Characteristics of Organizational Climate:

1.

General Perception:

Organizational climate is a general expression of what the organization is. It is the

summary perception which people have about the organization. It conveys the
impressions people have of the organizational internal environment within which they
work.

2.

Abstract and Intangible Concept:

Organizational climate is a qualitative concept. It is very difficult to explain the

components of organizational climate in quantitative or measurable units.

3.

Unique and District Identity:

Organizational climate gives a distinct identity to the organization. It explains how

one organization is different from other organizations.

4.

Enduring Quality:

Organizational climate built up over a period of time. It represents a relatively

enduring quality of the internal environment that is experienced by the organizational
members.

5.

Multi-Dimensional Concept:

27

Organizational climate is a multi- dimensional concept. The various dimensions of

the organizational climate are individual autonomy, authority structure, leadership
style, pattern of communication, degree of conflicts and cooperation etc.

CHAPTER: 3
28

Analysis and Interpretation

Table3.1:
Performance in Current Environment
Response
Very High
High
Medium
Low
Very Low
Total

Number of Respondents
23
27
22
12
16
100

The Following Pie diagram shows the Performance of the Employees

29

Percentage
23%
27%
22%
12%
16%
100

Chart 3.1:

Performance in Current Environment

16%

Very High

23%

High

12%

Medium
Low

27%

22%

Very Low

Interpretation:
From the Above table it can be interpreted that more than 50% of the employees are
satisfied with their performance in the current Environment

Table 3.2:
Opinion about Current Work Environment
Response

Number of Respondents

Percentage

Highly Satisfied

12

12

Satisfied

20

20

Neutral

24

24

Dissatisfied

30

30

Highly Dissatisfied

14

14

Total

100

100

Chart 3.2 :

30

opinion about current work environment

14%

Highly Satisified

12%

Satisified
20%

30%

Neutral
Dissatisified

24%

Highly Dissatisified

Interpretation:
From the table it can be interpreted that more than 34% of the Employees are Either
Dissatisfied or highly Dissatisified.32% of the employees are satisfied and 24 % of
the employees are unsure about their opinion.

Table 3.3:
Opinion on Welfare activities Conducted by the Organization
Response

Number of Respondents

Percentage

Highly Satisfied

19

19

Satisfied

22

22

Neutral

10

10

Dissatisfied

29

29

Highly Dissatisfied

20

20

100

100

Chart 3.3:
31

Opinion on Welfare activities Conducted by the Organisation

Highly Satisified
Satisified
Neutral

19%

20%

Dissatisified
22%

29%

Highly Dissatisified

10%

Interpretation
From the above table, it can be noted that Majority of the employees are Dissatisfied
with the Welfare activities in the organization

Table 3.4:
Opinion about Health and Safety Programs
Response

Number of Respondents

Percentage

Highly Satisfied

11

11

Satisfied

19

19

Neutral

10

10

Dissatisfied

35

35

Highly Dissatisfied

25

25

Total

100

100

Chart 3.4:

32

Opinion about Health and Saftey Programs

Highly Satisified
Satisified
25%

Neutral

11%
19%
10%

35%

Dissatisified
Highly Dissatisified

Interpretation:
From the above table it can be interpreted that majority of the employees are
Dissatisfied ( more than 60%) with the current health and safety Programs. 19 % are
satisfied ,11% are highly satisfied and the remaining 10 % are unsure about their
opinion.

Table 3.5:
Opinion about Health and Safety Equipments Provided by the Company
Response

Number of Respondents

Percentage

Highly Satisfied

13

13

Satisfied

15

15

Neutral

22

22

Dissatisfied

24

24

Highly Dissatisfied

26

26

Total

100

100

Chart 3.5:

33

Opinion about Health and Saftey Equipments Provided by the Company

Highly Satisified
26%

Satisified

13%
15%

24%

22%

Neutral
Dissatisified
Highly Dissatisified

Interpretation:
From the above table , it can be interpreted that50% of the employees are dissatisfied
with the health and safety Equipments Provided by the Company.

Table 3.6:
Level of satisfaction of employees with the current working hours.
Response

Number of Respondents

Percentage

Highly Satisfied

30

30

Satisfied

35

35

Neutral

20

20

Dissatisfied

12

12

Highly Dissatisfied

Total

100

100

34

Chart 3.6:

Sales
Highly Satisified

12% 3%

30%

Satisified
Neutral

20%

Dissatisified
Highly Dissatisified

35%

Interpretation:
It can be Interpreted from the Table given above that majority of the employees are
satisified with the Current Working hours.

Table 3.7:
Opinion on interpersonal Relationship with other workers
Response

Number of Respondents

Percentage

Highly Satisfied

22

22

Satisfied

42

42

Neutral

Dissatisfied

16

16

Highly Dissatisfied

15

15

Total

100

100

Chart 3.7:
35

Opinion on interpersonal Relationship with other workers

Highly Satisified
15%

22%

16%

Satisified
Neutral
Dissatisified

5%

Highly Dissatisified

42%

Interpretation:
From the above table, It is noted that 22% of employees are highly satisfied , 42% of
the employees are satisfied , 5% of Employees are unsure about their opinion ,16 % of
the employees are dissatisfied and 15% of the employees are highly dissatisfied with
the inter personal Relationship with Co-workers.

Table 3.8:
Opinion about Relation with Supervisors
Response

Number of Respondents

Percentage

Highly Satisfied

10

10

Satisfied

11

11

Neutral

20

20

Dissatisfied

39

39

Highly Dissatisfied

20

20

Total

100

100

Chart 3.8:

36

Opinion about Relation with Supervisors

Highly Satisified
20%

10%

Satisified
11%
20%

39%

Neutral
Dissatisified
Highly Dissatisified

Interpretation:
From the above table, It is noted that 10% of employees are highly satisfied , 11% of
the employees are satisfied , 20% of Employees are unsure about their opinion ,39 %
of the employees are dissatisfied and 20% of the employees are highly dissatisfied
with their Relation with supervisors.

Table 3.9:
Opinion about the Relationship with Management
Response

Number of Respondents

Percentage

Highly Satisfied

11

11

Satisfied

18

18

Neutral

12

12

Dissatisfied

37

37

Highly Dissatisfied

22

22

Total

100

100

Chart 3.9:

37

Opinion about the Relationship with Management

22%

Highly Satisified

11%
18%
12%

37%

Satisified
Neutral
Dissatisified
Highly Dissatisified

Interpretation:
From the table it can be interpreted that Majority of the Employees are dissatisfied
with their current relationship with management (59%).29% are satisfied and
remaining 12 %are unsure about their opinion.

Table 3.10:
Whether the employees are free to express their opinions on Decision making
process.
Response

Number of Respondents

Percentage

Yes

65

65

No

35

35

Total

100

100

Chart 3.10:

38

Whether the employees are free to express their opinions on Decision making process.

Yes
No
35%
65%

Interpretation:
65 % of the Employees have the opinion that they are free to express their opinions
whereas 35% are of the opinion that they do not have the freedom to express their
opinions.

Table 3.11:
Whether the Company considers the Views and Opinions
Response

Number of Respondents

Frequently

15

15

Sometimes

45

45

Never

40

40

39

Percentage

Total

100

100

Chart 3.11:

Whether the Company considers the Views and Opinions of employees

15%

Frequently
Sometimes

40%

Never
45%

Interpretation:
15% of the employees says that the organization considers the Views and opinions of
the Employees, 45 % feels that the Organization Considers their views sometimes and
40% feel that Organization never Considers their views and opinions.

Table 3.12
Opinion on the recognition provided by the Organization
Response

Number of Respondents

Percentage

Yes

35

35

No

65

65

Total

100

100

Chart 3.12:
40

Opinion on the Recognition Provided by the Organisation

Yes

35%

No
65%

Interpretation:
35 % of the Employees feel that the Organization gives Recognition to them and 65%
are of the opinion that they do not get any kind of Recognition for their Work

Table 3.13:
Whether the Employees think that they are better than other workers in similar
organizations
Response

Number of Respondents

Percentage

Yes

82

82

No

18

18

Total

100

100

Chart 3.13:
41

Whether the Employees think that they are better than other workers in similar organisations

18%
Yes
No
82%

Interpretation:
82% of the employees think that they are better and 18% think they are not better
when it comes to Competence with Employees in similar organization.

Table 3.14:
Types of Rewards Received by the Employees
Response

Number of Respondents

Monetary

73

73

Non-Monetary

27

27

Total

100

100

Chart 3.14:

42

Percentage

Types of Rewards Received by the Employees

27%

Monetary
Non-Monetary
73%

Interpretation:
73% of the Employees say that they get Monetary Rewards and 27% says that they
get non-monetary Rewards.

Table 3.15:
Level of Satisfaction With the Current Benefits Provided by the Organization
Response

Number of Respondents

Percentage

Highly Satisfied

12

12

Satisfied

19

19

Neutral

10

10

Dissatisfied

32

32

Highly Dissatisfied

27

27

Total

100

100

43

Chart 3.15:

Sales

27%

Highly Satisified

12%
19%
10%

32%

Satisified
Neutral
Dissatisified
Highly Dissatisified

Interpretation:
Majority of the employees( 59%) are not satisfied with the current benefits provided
by the Organization.. 31% are satisfied with the benefits and remaining 10% are
unsure about their opinion.

Table 3.16:
Level of satisfaction with the current Organizational climate
Response

Number of Respondents

Percentage

Highly Satisfied

17

17

Satisfied

13

13

Neutral

Dissatisfied

46

46

Highly Dissatisfied

19

19

Total

100

100

44

Chart 3.16:

Satisifaction of Employees with regards to the current organizational climate .

Highly Satisified
19%

Satisified

17%
13%
5%

46%

Neutral
Dissatisified
Highly Dissatisified

Interpretation:
From the above table, It is noted that 17% of employees are highly satisfied, 13% of
the employees are satisfied, 5 of Employees are unsure about their opinion, 46 % of
the employees are dissatisfied and 19% of the employees are highly dissatisfied with
the Current Environment provided by the Organization.

45

Chapter: 4
Findings of the Study

4.1 Finding of the Study

From this study the Following Points where Noted:

46

Out of the total number of Employees, majority are Employed on Contractual

basis and not on permanent Basis.

From theopinions of the Employees it was found out that the outdated
machinery is causing reduction in their Productivity.

Majority of the Employees are not satisfied with the Current Work
environment, the Welfare activities and the safety programs in the
Organization.

Majority of the Employees are not satisfied with their relationship with their
Colleagues and Supervisors.

From the Opinion of Employees it was noted that there are frequent disputes
between the management and the Employee union.

From the opinion of Employees it was also noted that the Organization doesnt
give importance to the opinions and of Employees.

There are Problems in the Line of Communication

Though the Employees have necessary Skills and are competent enough to
deliver the best Performance, The policies and decisions taken bythe
management is leading to the Deterioration of the Climate inside the
Organization

Though there are no major problems between the employees and superiors, it
was noted from the opinion of employees that the relation which exists
between the 2 parties are strictly based on terms and conditions.

4.2 Suggestions:

The Management must Consider the Opinions of the employees in their

Welfare activities

47

All the Outdated Machinery and equipments must be immediately

Replacedinorder to increase the Productivity and take the burden off the
shoulders of Employees.

More Incentives and Benefits must be provided by the Company to the

employees. Happy Employees Signify good Organizational Culture.

The safety Equipments must also be replaced and safety Drills must be
Organized From time to time in order to ensure the safety of Employees.

Job Rotation or any other Methods can be implemented to avert stagnation

which may result in loss of interest in the job.

Rather than keeping the employees on a Contractual basis, they must be

recruited on a permanent basis to avert certain problems which may arise
due to disputes between the union and management. And more over this
would assure that the organization is doing what is best for their
employees.

To promote a new Climate in the organization, the company should

implement a lot of changes both in their current mode of functioning and
also in the appearance.

Hostile behavior between the superiors and their employees can never help
in the growth of the organization and it must be seen that this issue is
addressed by giving it the at most importance.

4.3 Conclusion:
Organizational climate is a factor which cannot be ignored by the Companies. A good
Organizational climate would result in Exponential Growth and a bad organizational
climate may result in the Destruction of the entire business.
Organizational Climate is an interesting concept which has received much attention in
the past and is sure to never go out of fashion anytime in the near future. By taking
48

care of the Organizational climate many of the Problems which may normally occur
in an organization can be averted.
From this study we can conclude that the Organization has several problems which
includes Disgruntled employees and complaints regarding the welfare activities and
incentive programs. Suggested measures may be adopted to improve the situation and
provide a good Organizational Climate

BIBLIOGRAPHY:
Books:
Kothari

CR

Research

Methodology,

Methods

and

Techniques,

Wishwaprakashan( New Delhi 1997)

Prasad,L.M Human Resource Management ,Second Edition ,Reprint (2006),
Sultan Chand Sons, New Delhi.
49

 Schneider Benjamin Organizational Climate and Culture First edition

(2009) Pfeiffer, North Carolina

Websites:
www.Businessdictionary.com
www.Blackwellreference.com
Journals:
Company Documents Related to United Breweries
Annual Report of United Breweries Limited
Study Reports on United Breweries Limited

ANNEXUR: A STUDY ON ORGANISATIONAL CLIMATE

Questionnaire
NAME
AGE
DEPARTMENT
QUALIFICATION
WORKING ENVIRONMENT:
50

1. How is your performance in the current Work Environment?

A. Very High ( ) B. High ( ) C. Medium ( ) D. Low ( ) E. Very Low ( )
2. What is your Opinion about the Current Work Environment?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
3. Your opinion about the Welfare activities provided by the Organization?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
4. What is your opinion about the health and safety Programs in the
organization?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
5. Opinion about the safety equipments provided by the Organization?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )

AUTONOMY:
6. What is your level of satisfaction with the Working hours?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
7. What is your opinion on Interpersonal Relationship With others?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
8. Relation with Supervisors?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )

51

9. Your opinion about Relationship with Management?

A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
10. Are you Free to express your opinions in the Decision Making Process?
A. Yes ( ) B. No ( )
11. How often does the Company Consider your Views and opinions?
A. Frequently ( ) B. Sometimes ( ) C. Never ( )
12. Does your organization Give Recognition to you?
A. Yes ( ) B. No ( )
13. Do you think that you are better than other workers in similar
organization?
A. Yes ( ) B. No ( )

REWARDS:
14. What type of Rewards do you receive?
A. Monetary ( ) B. Non Monetary ( )
15. Are you satisfied with the Current Benefits provided by the
Organization?
A. Highly Satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )
16. Are you satisfied with the Existing Organizational Climate?
A. Highly satisfied ( ) B. Satisfied ( ) C. Neutral ( ) D. Dissatisfied ( ) E.
Highly Dissatisfied ( )

52