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 peoples perception and attitude about the organization - whether it is good or bad place to work, friendly or unfriendly, hardworking or easygoing, 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

Job satisfaction

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

Work itself Supervision

(4 questions) (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 climates 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-2
H0: 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 Spearmans 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 30 25 No. of 20 Responden 15 ts 10 5 0

Sample Size

35

31

24

NBP 4, branches

MCB 4, branches Banks

SC 4, branches

Data Analysis and Interpretation

Organizational Climate & Box Plots
NBP

1.00

MCB

13

2.00

SCB

3.00

GROUP

10

20

30

40

50

60

70

80

ORG.CLIM

Data Analysis and Interpretation

Job Satisfaction & Box Plots
MCB
18

1.00

SCB
2.00

3.00

GROUP

20

30

40

50

60

70

80

JOB.SATI

Inter-relationship of Organizational Climate & Job Satisfaction

Spearmans Correlation Coefficients NBP
Job Satisfaction Org. Climate Correlation Coefficient Sig. (2-tailed) N .685* .000 35

*Sig. .05

Spearmans Correlation Coefficients MCB

Job Satisfaction

Org. Climate

Correlation coefficient Sig. (2-tailed) N

.406* .023 31

*Sig. .05

Spearmans Correlation Coefficients SCB

Job Satisfaction

Org. Climate

Correlation Coefficient Sig. (2-tailed) N

.429* .036 24

*Sig. .05

Difference in Perception of Executives Across the Banks.

Kruskal Wallis Test (Ranks)
GROUPS Org. Climate NBP MCB SCB Total Job Satisfaction NBP MCB SCB Total N 35 31 24 90 35 31 24 90 26.69 48.97 68.46 Mean Rank 27.33 48.58 68.02

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.

Test Statistics
Org. Climate Chi-Square df Asymp. Sig. 35.227 2 .000 Job Satisfaction 37.322 2 .000

Sig. 5%, Table Value: 5.991

Effect of Organizational Climate on Job Satisfaction

Multiple Regression Analysis for Organizational Climate and Job Satisfaction Model Summary
Sig. F Change

R Sq.

F Change

df1

df2

.785
Table Value: 1.81

.616

7.920

15

74

.000

Effect of Organizational Climate on Job Satisfaction

COEFFICIENTS
VARIABLIS STRUCTUR RESPONSIBILITY REWARDS INITIATIVE SUPPORT STANDARD CONFLICT IDENTITY LEADERSHIP Coefficients 3.399 .559 1.417 2.174 .188 -1.071 -.895 2.419 -.582 t 2.478 .402 1.378 1.887 .170 -.835 -.577 2.287 -.420 Sig. .015 .689 .172 .063 .866 .407 .566 .025 .676

EMPOWERMENT
HUMAN RELATIONS COMMUNICATION DECISION MAKING EQUITY

-3.051
2.542 -1.828 3.869E-02 -3.104

-2.095
2.057 -1.077 .025 -2.856

.040
.043 .285 .980 .006

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