The influence of personal factors on the perceived

Organizational climate: Evidence from the Pakistani

Industrial Organizations
Iqbal, Adnan. Interdisciplinary Journal of Contemporary Research In Business 2.9 (Jan 2011): 511-
527.
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Organizational climate is perception of members about their work environment and it is

greatly influenced by individual attributes. This study explores the relationship
of organizational climate perceptions according to employees' demographic (age, and
education,…
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Abstract
Organizational climate is perception of members about their work environment and it is
greatly influenced by individual attributes. This study explores the relationship
of organizational climate perceptions according to employees' demographic (age, and
education, tenure and Job Ranks) background patterns. In order to achieve this goal, self-
administered questionnaires were distributed to 500 subjects in Pakistani industrial
organizations. Usable answers were obtained from 353 subjects. The results of the study
showed that the personal factors of the employees were found to account for significant
differences in the perception of several dimensions of climate. Specifically in attempting to
build a positive creative climate, Pakistani industrial organizations must consider not only the
size, ownership and existing structures of the organizations, but must also consider the job
tenure, training experience, length of service, education level and age of the
employees(sonority at workplace). Policies based on organizational factors only may have no
effect on improving the organizational climate, and may not make effective use of the
organization's resources.
Keywords: Personal Factors, Organizational Climate, culture, Creativity and Innovation,
Pakistani industry, Situational Outlook Questionnaire, Training, Pakistani Industrial
organizations
1. Introduction
The concept of organizational climate was developed in the late 1930s by the social scientists
(Lewin, Lippitt, and White, 1939). They used social climate term to describe subjective
feelings or atmosphere they encountered in their studies of organizations. They found that
different groups had distinctively different socialclimates. They have also established a linkage
between the climate and factors such as motivation, playfulness, aggression, productivity and
sharing (Isaksen, Lauer, Murdock, Dorval, and Puccio, 1995).Organizational climate gained
acceptance as describing the perceived social environment in which an individual's and
organization's expectations are met.
Since 1980s the concept of climate has seemed to have lost its appeal
to organizational researchers (Isaksen et al, 1995). In its place organizational culture, which
came from the field of anthropology, was introduced. Ekvall (1996) noted that
the organizational climate literature contained two main contradictions. One relates to
ontological issues, which include theories of organizational climate (Gui on, 1973; Ekvall,
1996; Altman, 2000) and the other on values, norms and belief system (Schneider and Brief,
1996). According to Ekvall (1996), this demarcation runs between theorists who conceive
'climate' as a common perception arising from interaction among members of an organization,
and those who perceive 'climate' as an objective property of an organization.
1. 1 Definitions of Organizational Climate
Tagiuri and Litwin (1968:25) defined climate as
The relatively enduring quality of the total [organizational] environment that a) is experienced
by the occupants b) influence their behavior, and c) can be described in terms of the values of
a particular set of characteristics (or attribute) of the environment.
Schneider (1975) narrated climate as molar perceptions people have of their work setting.
These molar perceptions have a psychological unity, being based on actual events, practices
and procedures that occur in their daily life. . Ekvall (1983) explained it as an attribute of the
organization, composed of behaviors, attitudes and feelings which are characteristic of the
organization'.
Early researchers assumed organizational climate on the basis of perception of their work
environment. For example, Moran and Volkwein (1992) defined organizational climate as a
dynamic process that involves group member interactions and environmental impact.
Similarly, Altman (2000) explained that the climate is an employee's perception of their work
environment. This definition of organizational climate represents the holistic view
of organizational setup and best described in all contexts.
1. 2 Organizational Climate and Organizational Culture
Several researchers have attempted to compare organizational
climate and organizational culture and explore the commonalities (Denison, 1996). Ekvall
(1983) distinguished organizational climate from organizationalculture. He suggested an
organization's culture was made of the beliefs, traditions, and values of the people within the
organization. In contrast, climate refers to feelings, attitude, and recurring behaviour pattern
which characterized daily life within the organization (Isaksen et al, 1995).
Glick (1985) distinguishes between climate and culture based on methodological preferences.
Schein (1985) explains the differences on the base of epistemology. According to
him, climate research is usually nomothetic and comparative and is measured by using
quantitative techniques, whereas culture research tends to be idiographic and contextualized
and is usually measured by using qualitative methods.
Denison (1996) differentiated between climate and culture on methods of study.
"If researchers carried field notes, quotes, or stories and presented qualitative data to support
their ideas, then they were studying culture. If researchers carried computer printouts and
questionnaires and presented quantitative analysis to support their ideas, then they were
studying climate" (p. 621)
Organizational climate researchers place greater emphasis on organizational members'
perception. .Thus, it is temporal subjective and often subject to direct manipulation by people
with power and influence (Gui on, 1973; Denison, 1996). Other factors also helped to
distinguish these two topics in literatures. Culture researchers were more concerned with
evolution of social systems over time (Denison, 1996). In contrast, climateresearchers
generally less concerned with evolution but more concerned with the impact
that organizationalsystem have on groups and individuals (Koys and DeCotiis, 1991).
Altman (2000) notes that organizational climate refers to employee perceptions of their work
environment. According to Glisson and James (2002) organizational culture includes norms
and expectations regarding how people behave and how things are done in an organization, on
the other hand, climate reflects workers' perception of and emotional responses to their work
environment (Glisson and James, 2002).
Generally speaking, organizational climate is perception of members about their work
environment and it is greatly influenced by individual attributes. Evans (2006) noted that if
the employees believe that their skills and competence as well as their individual backgrounds
are recognized, they feel motivated both to contribute and to learn from their workplace
environment. This can encourage continuous positive interactions between employees and
their workplace environments where employees' dispositions and personal factors contribute
to the shaping and reshaping of their workplace environments. Furthermore, organizational
climate is affected by many factors - managerial style, mutual
relations, organizational structure, demographic variables and it is dimensioned by diver
numbers of dimensions. A group of researchers analyzed and suggested a significant
relationship between demographic variables (age, education, tenure) and climate dimensions
(Forte & Hansvick, 1999; Sveiby & Simons, 2002; Johnstone & Johnston, 2005; Hicks-Clarke
& lies, 2000; Karen, Clint & Sherry, 2002). Therefore, the relationship between individual
factors and organizational climate in Pakistani industrial organizations is expected.
The remainder of this paper presents significance of the study and data which allow an
examination of the relationship discussed above.
2. Significance of The Study
As noted earlier, individual perceptions of organizational climate depend both upon factors
which influence the real nature of the climate and upon factors which affect the individual's
perceptions of it. When attention is focused on the individual level of analysis individual
differences in the perception of climate within organizations are likely to be important in the
understanding and prediction of individual behavior (Payne and Mansfield, 1978), in terms of
employees turnover. The consequences of high turnover are both financial and non-financial.
High turnover can be a serious hurdle to productivity, quality, and profitability at firms of all
sizes. For the smallest of companies, a high turnover rate can mean that simply having
enough staff to fulfill daily functions is a challenge, even beyond the issue of how well the
work is done when staff is available (Iqbal, 2010).
Furthermore, there is a sufficient studies on organizational climate in the US or Western
contexts, rarely has this concept been examined in the context of developing countries such as
Pakistan. This study is an attempt to fill this gap in literature.
3. Purpose of the Study and Research Question
This study attempts to address the above mentioned gap in the current literature by
examining perceptions oforganizational climate by the Pakistani industrial employees.
Therefore, the study assumed the following key research question:
What is relationship between personal factors (age, length of service, education, and job
category) and theorganizational climate in Pakistani industrial organizations?
This study, however, will also attempt to determine how individual personal factors (Age,
Education level, job ranks and Tenure) influence the perceptions of organizational climate.
3. 1 Research Hypotheses:
With the above research question, the following hypotheses have been formulated:
H^sub 1^: There is no relationship between personal factors and organizational climate in the
Pakistani industrial organizations
H^sub 2^: There is no relationship between personal factors and organizational
climate dimensions in the Pakistani industrial organizations
H^sub 3^: There is no influence of personal factor s (Age, Educational level, Job ranks and
Tenure) onorganizational climate in the Pakistani industrial organizations
4. Methodology
The present study is a relationship based research in that it attempts to establish a correlation
between personal factors (such as Age, Job ranks, Length of service, qualification and
university Status) andorganizational climate in Pakistani industrial organizations.
4.1.1 Instrument of the study
The data was collected using a structured questionnaire. A two part questionnaire was
administered, of which the first section relates to personal factors (Age, Education level, Job
ranks and Tenure), the second section contains the Situational Outlook questionnaire (SOQ).
The SOQ examines several aspects of the work environment commonly referred to as
'organizational climate'. The SOQ helps to study the organization in view of current work
environment and how it supports or limits the release and productive use of creativity,
innovation and change.
[Table 1 Here]
4. 1 .2 Reliability of construct
The SOQ provides four alternative responses (O = not at all applicable, 1 = applicable to some
extent, 2 = fairly applicable, and 3 = applicable to a high extent). In this study the internal
consistency (Cronbach' s Alpha) of SOQ is 0.840.
4.2 Sample Size
The population of the study was constituted of the employees of the knitwear sector. Of the
500 questionnaires distributed to the 100 knitwear organizations located in Lahore and
Faisalabad, Pakistan, 415 questionnaires were returned. 62 questionnaires were incomplete
and could not be used; this gives a total of 353 usable responses. The response rate is thus
approximately 70%.
4. 3 Limitation of the study
The potential limitation of this study includes the scope of the research. This study aims to
explore the relationship between personal factors and organizational climate. Future research
needs to explore the effects of sub-variables, such as Job ranks (Managers, Supervisors and
workers), Age groups, education categories) on Organizational climate sub-dimensions, that
were not explored fully in the current study, which can also directly or indirectly influence the
said relationship in Pakistani industrial organizations. This study, however, may serve as a
foundation for future studies on larger scales with same variables, which in turn could
generate strategies to improve the working environment and to reduce the employees'
turnover.
5. Results and Analysis
The purpose of this study was to determine if there were significant relationship between
Individual factors and perceived organizational climate. This section is a presentation and
analysis of the data collected to evaluate the relationship between personal factor and
perceived organizational climate Pakistani industrial sector.
Three steps of data analysis have been conducted for this study 1) Descriptive Statistics 2)
Correlation analysis and 3) determination of significant independent variables through
regression analysis.
5. 1 Personal Factors
[Table 2 Here]
Section I of the survey yielded demographic information on the sample being studied. Of the
N=353 respondents 117(33%) managers, 142 (40%) supervisors and 94(27%) workers (see
Table 2), which shows a good representation of staff.
[Table 3 Here]
According to Table 3, respondent were quite evenly spread across the age groups. 60%
respondents were below 30 years. 26% of supervisors were under the age of 30. But with only
3.2% falling in the 50-59, and 60+ years age categories. The age ranges from 18 to 65 years.
[Table 4 Here]
Table 4 shows the data on education level and job category. 26% of the respondents had
university degrees and ofthat 26%, 21 % were managers. Above 50% employees sample have
Matric (O-levels) qualification.
[Table 5 Here]
Table 5 shows the data of length of service of respondents. 66% employees have less than 5
year tenure in the organizations. In general 87% workers have less than ten years working
experience.
5. 2 Correlation Tests for Hi and H 2
[Table 6 Here]
One of the hypotheses of this study was that there was no relationship between personal
factors andorganizational climate in the Pakistani industrial organizations (hypothesis 1). As
can be seen in Table 6 above, there was a relationship between Age (r = .12; p<0.05) and the
perceived organizational climate, another relationship between length of service (r = .17;
p<0.001) and the perceived organizational climate. Therefore, null hypothesis Hl is rejected.
This shows that the organizational climate and some of the personal factors, such as Age and
length of service, are generally related to each other
[Table 7 Here]
The second hypothesis states that, there is no relationship between personal factors
and organizational climate dimensions in the Pakistani industrial organizations (Hypothesis 2).
In order to test this hypothesis a detailed correlation test was conducted (Table 7) using the
four personal factors (Such as Age, Job ranks, Education and length of service) and
nine organizational climate dimensions (Challenge and involvement, Freedom, Idea support,
Playfulness and humor, Debate, Trust and Openness, Idea time, Risk taking, and Conflict). It
can be seen from the Table 7, there was a significant but negative relationship between Job
Category and organizational climate dimension freedom [r=.11, p<.05]; another a significant
but negative relationship between Job category and organizational Climate dimension debate
[r=-.12, p<.05]; there was a significant and positive relation between Job category
and Organizational Climate dimension Trust and openness [r=.13, p<.05].
Age showed, in Table 7, significantly associated with the Organizational climate dimensions,
freedom [r= .12, p<05], playfulness and humor[r= .13, p<.05], debate [1= .15, p<.001] and
trust and openness[r=- .14, p<.05]. Another personal factor, length of service, found
significantly correlated with the organizational climatedimensions. The Coefficient of
correlations between length of service and organizational climate dimensions were, challenge
and involvement [r= .12, p<.05], freedom [r= .12, p<.05], Playfulness and humor [r= .19,
p<.001], debate [r= .14, p<.05], and idea time [r= .13, p<05]. Similarly, education level was
found significantly associated with some of the organizational climate dimensions. It can be
seen from Table 3, education level was significantly correlated with some of
the organizational dimensions, freedom [r= -.12, p<.05], and trust and openness [r= .18,
p<.001]. The second hypothesis states that, there is no correlation between personal factors
and organizational climate dimensions in the Pakistani industrial organizations. However, the
results of the data presented in Table 7 show statistically significant correlations between
personal factors andorganizational climate dimensions. Therefore, the null hypothesis H2 is
rejected.
5. 3 Regression Analysis for H 3
[Table 8 Here]
[Table 9 Here]
For further testing H3, there is no influence of personal factors on organizational climate. A
linear regression was carried out on organizational climate to assess the predictability of the
independent variables onorganizational climate. When all independent variables were entered
at once, the length of service was found significant predictor of organizational climate.
Therefore, H3 null hypothesis is rejected. The adjusted R in the regression model was 0.020
indicating that the population effect size is small (Cohen, 1992).
6. Discussion
One of the most significant problems facing the Pakistani industrial organizations is that of
employee turnover, the sense of being an integral part of the organization. Descriptive
statistics (Table 5) of this study showed that more than 66% employees had less than 5 years
of experience and 87% of employees had less than 10 years of experience. The focus of this
study was to examine the perception of employees towardsorganizational climate. Therefore,
the aim of the study was to investigate the relationship between personal factors
and organizational climate in Pakistani industrial organizations. The personal factors include
age, length of service, education and job category. Therefore, the study postulated the
following research question:
What is relationship between personal factors (age, length of service, education, and job
category) and theorganizational climate in Pakistani industrial organizations?
In order to address the above mentioned research question, the study presented a detailed
literature on the relationship between personal factors and organizational climate. This review
led to the development of three main hypotheses that were tested in this study. The study
used several statistical tests such as descriptive statistics, correlations and regression
analysis, to test the hypotheses.
6. 1 Personal Factors and Organizational climate
The personal factors used in this study include age, length of service, education and job
category. The findings of the study showed that age and length of service have a significant
relationship with Organizational climatewhile no relationship was found between education, job
category and organizational climate. The following discussion explains the possible reasons for
the relationship between these variables and organizational climate.
6.1.1 Age
Age was significantly correlated with overall organizational climate. This study is consistent to
the previous studies, such as Forte & Hansvick, 1999; Sveiby & Simons, 2002; Karen, Clint &
Sherry, 2002). Though very few researches revealed the same relationship between age
and organizational climate variables but it is quite evident that older employees express more
moderate opinions about actions in organizations as compare to the young workers.
Age showed, in Table 7, significantly associated with the Organizational climate dimensions,
freedom [r= .12, p<05], playfulness and humor[r= .13, p<.05], debate [r= .15, p<.001] and
trust and openness[r=- .14, p<.05]. As employees' age increase, they develop a kind of
occupational bond and become more oriented to their careers. They also enjoy seniority,
freedom, playfulness and humor, sharing opposite view point and create a trust and openness
at workplaces. They also reach a point of settling into their respective organizations and close
other career options because they become limited by their efforts, promotions and other
investments in the organizations (Colarelli and Bishop, 1990).
6. 1 .2 Education Level
Education had an insignificant correlation with organizational climate. However, education
level was significantly correlated with the organizational climate dimension trust and
openness. Lauer (1994) highlighted that when there is strong level of trust, everyone in the
organization dares to put forward ideas and opinions. Initiatives can be taken without fear of
reprisals and ridicule in case of failure. The communication is open and straightforward.
Another interesting finding of this study reveals that there is statistical significant but negative
relationship between education level and organizational climate dimension freedom. Ekvall
(1996) explains that a certain level of freedom has to exist to provide innovation. However,
high values in freedom point to a situation in which subordinates are able to work
independently without permanent observations. It has been observed that more integrated
factory environments can affect workplace freedom and autonomy, regardless of managerial
intent to empower or control workers and education levels in Pakistani industrial organizations.
Generally, goals are set by management, work related relationships are maintained and tasks
are defined by top management. It is assumed that management controls the working
environment which leads to lack of freedom in the workplace. This view was also supported by
Jones and Blunt (1997):
This is consistent with the higher levels of power distance which characterize most East Asian
societies (Hofstede, 1980) with patrimonial family structures and such cultural features as filial
piety. All of these factors contribute to the wide social distance separating leaders from
followers. Goals, and means for their attainment, are decided by leaders and are carefully and
humanely imposed. There is little involvement of followers and little expectation on their part
that this will occur. The power and authority of the leader are accepted as right and proper.
Hierarchy is viewed as the natural way to order social relations. There is "conformity to the
'natural' order of power relations".
6.1.3 Length of Service
Length of service was found significantly correlated with organizational climate (r = .17;
p<0.001). The longer employees are with the organization, the more time there is to evaluate
the relationship. This finding is consistent with the previous studies (such as Buchanan, 1974).
Buchanan (1974) argues that members' perceptions of their organizational experiences vary
with the length of time they have been employed by an organization (i.e. tenure). As a new
employee enters an organization he or she likely to have some views
oforganizational practices that are different from the organizational codes (March, 1991).
Therefore, the creativeclimate in general and how it is perceived by new employees in
particular, influences the efficiency of labor mobility as a mechanism for idea diffusion in
organizations. Therefore, people with longer service in respective organizations would assess
their organizations as more creative.
Another interesting finding of this study suggests that certain personal factors such as length
of service exert an influence on organizational climate. The following section discusses how we
can develop organizational climate. A detailed correlation study was conducted on length of
service and organizational climatedimensions. Length of service, found significantly correlated
with the organizational climate dimensions. The Coefficient of correlations between length of
service and organizational climate dimensions were, challenge and involvement [r= .12,
p<.05], freedom [r= .12, p<.05], Playfulness and humor [r= .19, p<.001], debate [r= .14,
p<.05], and idea time [r= .13, p<.05]. The length of service is correlated with challenge at
workplace, freedom, playfulness and humor, debate and idea time. The longer an individual's
tenure (length of service) in an organization, the better is their perception about the work
environments for innovation in terms of generating new ideas for actions (Pant, 2010).
In order to study the influence of length of service on organizational climate, a multiple
regression test was conducted (See Table 9). It can be seen that length of service has a
positive and significant influence onorganizational climate. The significant level is 0.01.
6.1.4 Job Category
The result in Table 6 shows no significant correlation between job category and organizational
climate. However, it can be seen from the Table 7, there was a significant but negative
relationship between Job Category and organizational climate dimension freedom [r=-.ll5
p<.05]; another a significant but negative relationship between Job category
and organizational Climate dimension debate [r=-.12, p<.05]; there was a significant and
positive relation between Job category and Organizational Climate dimension Trust and
openness [r=.13, p<.05].
It is interesting to note that there are significant but negative relationships between job
category & freedom and Job category & debate. The possible explanations of these findings
are that because of strictly following the hierarchy, employees in Pakistani companies rarely
venture voluntary opinions and they feel less freedom in their working environments. There is
a marked tendency to play it safe even when permission has been granted by higher-ups to be
innovative. This reluctance or fear to contribute new ideas seems to stem from a perception
that the penalty for making a mistake or voicing a controversial opinion is too high. It actually
appears that for some, leaving a positive impression with their superiors is more important
than producing results.
7. Conclusion and Implications
Effective organizations are increasingly realizing that of the varied factors that contribute to
performance, the human element is clearly the most critical. Regardless of the size or nature
of an organization, the activities it undertakes, and the environment in which operates, its
success is determined by the decisions its employees make and the behavior they engage
(Mello, 2011).
The practical implication of this study is the importance of contingency. There is no one
method in developing creative environment; rather, the choice of the correct principle or
technique is contingent upon the combination of situations facing the employees. Policies
produced by managers must be contingent upon the situation in which they will operate both
its organizational aspects and the personal factors of the workforce. Some of
the climate dimensions examined in this study lend themselves to easy analysis by
administrators and employers; for example freedom (The independence in behavior exerted
by the people in the Organization), Trust and Openness (The emotional safety in relationship),
Debate (The occurrence of encounters and clashes between viewpoints, Ideas and different
experience or knowledge) and Idea Time (The amount of time people use to elaborate ideas).
If there are discrepancies in relative policies then policies can be revised or improved.
Specifically in attempting to build a positive creative climate, Pakistani industrial organizations
must consider not only the size, ownership and existing structures of the organizations, but
must also consider the retention policies, training experience, length of service, education
level and age of the employees (seniority of the workers). Policies based
on organizational factors only may have no effect on improving the organizational climate, and
may not make effective use of the organization's resources. The most effective
recommendations are: Greater importance of non-financial recognition and appreciation
effective training needs (Iqbal, 2010), adjustments in work content and physical work
environment (Ilmarinen, 2001). Management has to be aware of these agerelated changes
and has to provide a work environment that recognizes and accommodates the unique needs
and capabilities of all workers to keep them active and motivated (Walker and Taylor, 2000).
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AuthorAffiliation
Adnan Iqbal
College Of Business Administration
Prince Sultan University P. O. Box No. 66833
Riyadh 1 1673, Kingdom of Saudi Arabia
Copyright Institute of Interdisciplinary Business Research Jan 2011
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Cite this
Subjects
Studies, Impact analysis, Creativity, Training, Corporate culture;Pakistan
Locations
Pakistan
Classification
6200: Training & development, 9179: Asia & the Pacific, 9130: Experiment/theoretical
treatment
Title
The influence of personal factors on the perceived Organizational climate: Evidence from the
Pakistani Industrial Organizations
Authors
Iqbal, Adnan
Publication title
Interdisciplinary Journal of Contemporary Research In Business
Volume
2
Issue
9
Pages
511-527
Number of pages
17
Publication year
2011
Publication Date
Jan 2011
Year
2011
Publisher
Institute of Interdisciplinary Business Research
Place of Publication
Belleville
Journal Subjects
Business And Economics
ISSN
20737122
Source type
Scholarly Journals
Language of Publication
English
Document Type
Feature
Document Features
Tables, References
ProQuest Document ID
857735951
Document URL
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Copyright Institute of Interdisciplinary Business Research Jan 2011
Last Updated
2011-03-20
Database
ABI/INFORM Complete
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