“A COMPARATIVE STUDY OF ORGANIZATIONAL CLIMATE AND JOB

SATISFACTION IN PUBLIC, PRIVATE, AND FOREIGN BANKS”

Falah-ud-Din Butt, Dr. Niaz Ahmed Bhutto & Ghulam Abbas

Introduction & Literature

Organization development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, structure of organization.

In this era of intense competition and globalization very few people will disagree that the success of any organization is a direct reflection of its managerial effectiveness and efficiency.

Even though organizational development depends upon number of factors but to understand needs, concerns, and perceptions of employees the organizational climate needs to be assessed.

Cont---

Organizational Climate

“Organizational climate is defined as people’s perception and attitude about the organization - whether it is good or bad place to work, friendly or unfriendly, hardworking or easy-going, and so forth.”

Wendell L. French and Cecil H. Bell, Jr.[2004]

Sought to define organizational environments in terms of nine climate dimensions: structure, responsibility, reward, risk, warmth, support, standards, conflict, and identity.

Stringer & Litwin. G. [1968]

Cont----

Job Satisfaction

Job satisfaction is often thought to be the gratification of strong needs in the workplace or the degree of discrepancy between what a person expect to receive from work and what that person perceives is actually received.

John b. Miner [2002]

Employees with high job satisfaction do exhibit higher organizational citizenship behavior, which ultimately does have positive effects on the productivity of the entire organization.

Catt and Miller [1994]

Relationship Between Organizational Climate and Job Satisfaction.

Rice has investigated the relationship between job satisfaction and organizational climate and asserted that people were the heart of any enterprise because their ideas, attitudes, and efforts were key causes of organizational success.

Rice. C. [1982]

Individuals in the organization have certain expectations, and fulfillment of these, depends upon their perception whether organizational climate suits according to their needs or not.

Ritu Lehal [2004]

Variables of Organizational Climate and Job Satisfaction.

Organizational Climate

Organizational Structure Rewards Support Standard Conflict Resolution Identity Leadership Empowerment Human relations Communication Decision making Equity Responsibility Initiative

Job satisfaction

Work itself (4 questions)

Supervision (4 questions)

Colleagues (2 questions)

Miscellaneous (4 questions)

Objectives of the Study.

To compare the three banks; NBP, MCB, & SCB with reference to their organizational climate and job satisfaction

To study the inter-relationship of the two variables; organizational climate and job satisfaction

To analyze the perceptions of employees of each bank for organizational climate and job satisfaction.

To find out the effect of organizational climate’s sub-factors on job satisfaction.

Hypothesis Formulation

Hypothesis-1:H0: For organizational climate the mean value of 90

executives of the three banks is the same.

H1: For organizational climate the mean value of 90 executives of the three banks is not the same.

Hypothesis-2H0: With respect to job satisfaction, the mean value of

90 executives of the three banks is the same.

HI: With respect to job satisfaction, the mean value of 90 executives of the three banks is not the same.

Research Methodology

This research is based on descriptive cum analytical quantitative method

Data has been described through Box plotting

Data analysis has been done through Spearman’s rank correlation coefficient Kruskal Wallis test Multiple Regression analysis

Research Methodology

Data Collection

Personally administrated questionnaire based on 14 sub factors for each of both the organizational climate and job satisfaction.

Secondary data has been collected through literature search, by consulting research journals, organization reports, books,

newspapers, and internet surfing. Sampling

Based on convenience sampling method,

researcher has visited four (04) branches

for each of the three banks and able

to survey 90 executives.

35 3124

05

101520253035

No. of Responden

ts

NBP 4,branches

MCB 4,branches

SC 4,branches

Banks

Sample Size

Data Analysis and InterpretationG

RO

UP

1.00

2.00

3.00

ORG.CLIM

8070605040302010

13

NBP

MCB

SCB

Organizational Climate & Box Plots

GR

OU

P

1.00

2.00

3.00

JOB.SATI

80706050403020

18

Job Satisfaction & Box Plots

MCB

SCB

Data Analysis and Interpretation

Inter-relationship of Organizational Climate & Job Satisfaction

JobJobSatisfactionSatisfaction

Org. ClimateOrg. Climate Correlation CoefficientCorrelation Coefficient .685*.685*

Sig. (2-tailed)Sig. (2-tailed) .000.000

NN 3535

JobJobSatisfactionSatisfaction

Org. ClimateOrg. Climate Correlation coefficientCorrelation coefficient .406*.406*

Sig. (2-tailed)Sig. (2-tailed) .023.023

NN 3131

Spearman’s Correlation Coefficients NBP

Spearman’s Correlation Coefficients MCB

JobJobSatisfactionSatisfaction

Org. ClimateOrg. Climate Correlation CoefficientCorrelation Coefficient .429*.429*

Sig. (2-tailed)Sig. (2-tailed) .036.036

NN 2424

Spearman’s Correlation Coefficients SCB

*Sig. .05

*Sig. .05

*Sig. .05

Difference in Perception of Executives Across the Banks.

Org. ClimateOrg. Climate Job SatisfactionJob Satisfaction

Chi-SquareChi-Square 35.22735.227 37.32237.322

dfdf 22 22

Asymp. Sig.Asymp. Sig. .000.000 .000.000

GROUPSGROUPS NN Mean RankMean Rank

Org. ClimateOrg. Climate NBPNBP 3535 27.3327.33

MCBMCB 3131 48.5848.58

SCBSCB 2424 68.0268.02

TotalTotal 9090

Job SatisfactionJob Satisfaction NBPNBP 3535 26.6926.69

MCBMCB 3131 48.9748.97

SCBSCB 2424 68.4668.46

TotalTotal 9090

Kruskal Wallis Test (Ranks)

Test Statistics

Sig. 5%, Table Value: 5.991

On the basis of Kruskal Wallis Test Results,

Our 1st Null Hypothesis is rejected. It means that mean values for Organizational Climate of 90 executives are not same. Similarly,

Our 2nd Null Hypothesis is also rejected. It means that mean values for Job Satisfaction of 90 executives are not same.

Effect of Organizational Climate on Job Satisfaction

RRRR

Sq.Sq.F F

ChangeChange df1df1 df2df2Sig.Sig.

F ChangeF Change

.785.785 .616.616 7.9207.920 1515 7474 .000.000

Multiple Regression Analysis for Organizational Climate and Job Satisfaction Model Summary

Table Value: 1.81

Effect of Organizational Climate on Job Satisfaction

VARIABLISVARIABLIS CoefficientsCoefficients tt Sig.Sig.

STRUCTURSTRUCTUR 3.3993.399 2.4782.478 .015.015

RESPONSIBILITYRESPONSIBILITY .559.559 .402.402 .689.689

REWARDSREWARDS 1.4171.417 1.3781.378 .172.172

INITIATIVEINITIATIVE 2.1742.174 1.8871.887 .063.063

SUPPORTSUPPORT .188.188 .170.170 .866.866

STANDARDSTANDARD -1.071-1.071 -.835-.835 .407.407

CONFLICTCONFLICT -.895-.895 -.577-.577 .566.566

IDENTITYIDENTITY 2.4192.419 2.2872.287 .025.025

LEADERSHIPLEADERSHIP -.582-.582 -.420-.420 .676.676

EMPOWERMENTEMPOWERMENT -3.051-3.051 -2.095-2.095 .040.040

HUMAN RELATIONSHUMAN RELATIONS 2.5422.542 2.0572.057 .043.043

COMMUNICATIONCOMMUNICATION -1.828-1.828 -1.077-1.077 .285.285

DECISION MAKINGDECISION MAKING 3.869E-023.869E-02 .025.025 .980.980

EQUITYEQUITY -3.104-3.104 -2.856-2.856 .006.006

COEFFICIENTS

Conclusion

The best employees perception is in SCB which indicates the best organizational climate prevails. Accordingly, the job satisfaction is also the highest amongst the three banks

Out of 14 sub factors of organizational climate three, organizational structure, identity, and human relations, are positively related to the job satisfaction.

However, the two factors, equity and empowerment, are negatively related to the job satisfaction.

Recommendations

Structure, Identity and Human Relations are positively related to the job satisfaction, for all the three banks.

Therefore , banks are required to focus more on the above mentioned factor to have more satisfied employees with them:

ii) Equity and Empowerment are negatively related to job satisfaction, for all the three banks.

Therefore there is a need to: Promote the advantages of equitable treatment of executive in

their banks and

Promote the practice of delegation of power, greater involvement in decision making, capacity building and proper Rewards for their good performance

ii) Equity and Empowerment are negatively related to job satisfaction, for all the three banks.

Therefore there is a need to:

Promote the advantages of equitable treatment of executive in their banks and

Promote the practice of delegation of power, greater involvement in decision making, capacity building and proper Rewards for their good performance

Research Methodology

Research Limitations:

Researcher has selected executives of only OG I, II, and III of the NBP, MCB and SCB, so the, results can not be generalized to employees at all level in banks

There was time limitation for this research which was a big challenge for the researcher

Future Areas of Research

If people are satisfied from their jobs, and if there exist the right type of climate, effectiveness can certainly be brought in the functioning of the organization.

Therefore this specific aspect of effectiveness should be studied along with organizational climate and job satisfaction.

Thanks