Page 1 of 9

Journal for Studies in Management and Planning

Available at https://pen2print.org/index.php/jsmap/

ISSN: 2395-0463

Volume 04 Issue 10

October 2018

Available online: https://pen2print.org/index.php/jsmap/ P a g e | 27

The Impact of Organizational Climate on Employees Job Satisfaction in

SLT Aluminium Company

SANI ABUBAKAR

Department of Business Administration

School of Management Sciences

Federal Polytechnic, Ekowe

Bayelsa State.

Nigeria.

saniab2020@yahoo.com

ABSTRACT

This study is aimed to analyze the impact of organisational climate on employee job satisfaction in SLT Aluminium

Company in Edo State, Nigeria. A self-constructed questionnaire titled The Impact of Organizational Climate on

Employees’ Job Satisfaction Questionnaire (TIOCEJSQ) was used to gather data for the study, consisting 15

questions with Likert Scale of Strongly Agree, Agree, Neutral, Disagree and Strongly Disagree. The research

design adopted in this study was a descriptive research survey design. The sample size of the study was 35 which

were collected using simple random sampling method. Frequency table and percentage analysis was used in

analyzing the collected data by using descriptive means. This study found that all the selected organisational

climate dimensions in this research have a positive and significant impact on employee job satisfaction. It was

therefore recommended that management should encourage employees’ by making them feel that their ideas are

noteworthy as well as they are important for the company and the gap between managers and the employees

should be reduced by raising the level of engagement.

KEYWORDS: Organisational Climate, Employees’ Productivity, Job Satisfaction, Motivation.

1. Introduction

Organisations in the 21st century are facing more challenges than ever before. These challenges are not

unique to any specific organisation or industry, but affect all organisations, regardless of their structure or size.

Organisational climate in particular is constantly challenged by changes impacting organisations today (Nair,

2006). To survive and outdo their competitors, organisations are constantly seeking to improve their performance.

Authors such as Brown and Leigh (2007) think that organisational climate is becoming more important than ever

before because organisations need to ensure that those individuals who add value to the bottom line will want to

stay in the organisation and will want to continue pouring their effort into their work to the benefit of the

organisation. Work environment or climate perception of employees has significant consequences for both

individuals and organization. Climate or atmosphere in workplace has impact on employee’s motivation,

behaviour, attitudes and potential, which, in turn is predicted to influence organizational productivity. Employees

are engaged when organizations have healthy work culture and communication practices, where they can get

Page 2 of 9

Journal for Studies in Management and Planning

Available at https://pen2print.org/index.php/jsmap/

ISSN: 2395-0463

Volume 04 Issue 10

October 2018

Available online: https://pen2print.org/index.php/jsmap/ P a g e | 28

platforms to express their concerns and opportunities to grow and develop their potential. The level of engagement

in employees can be enhanced by identifying its drivers (influential factors) and work on them.

According to Watkin and Hubbard (2003), high-performing organisations have climates with particular

measurable characteristics, which have shown how organisational climate can directly account for up to 30% of

the variance in key business performance measures. This is supported by research that examined the relationship

between the way in which employees describe their work environments and the relative performance success of

these environments (Wiley & Brooks, 2000). Watkin and Hubbard (2003) contend that climate does make a

difference to organisations' performance because 'it indicates how energising the work environment is for

employees'. There is, however, clearly more to an organisation's performance than an 'energised employee' or the

presence of certain organisational and leadership characteristics: 'productivity also depends on the morale which

governs discretionary effort the willingness to go the extra mile'. Researchers have been interested in

understanding how employees' perceptions of the work environment influence their level of job satisfaction. These

studies found that environmental factors influence worker productivity and morale. (Bisconti and Solomon cited

in Peek, 2003) report that an organisational climate that allows a high degree of autonomy and nurtures

relationships among peers, supervisors and subordinates results in more satisfied workers. Organisations that are

able to create environments that employees perceive as benign and in which they are able to achieve their full

potential are seen as a key source of competitive advantage (Brown & Leigh, 2007). Organisational climate can

therefore be regarded as a key variable in successful organisations.

Organisational climate can be viewed as an illustrative idea that mirrors the regular view and

understanding of all individuals with respect to the different components of the organisation, for example,

structure, frameworks and practices (McMurray, 2003). Hence, organisational climate essentially basically alludes

to the experience of employees in the organisation. The idea of organisational climate centres bases on

discernment. Brown and Brooks (2002) describe climate as the “feeling in the air” and the “atmosphere that

employees perceive is created in their organisations due to practices, procedures and rewards.” Based on these

clauses, obviously the individual view of employees in the organisation affects the climate. Despite the fact that

people contrast in the method they perceive, analyze and interpret information, the climate introduce in the

organisation is an aggregate view or recognition (Dormeyer, 2003) as climate is the individual’s perceptual or

psychological description (Al-Shammari, 2008).

Employee productivity has been one of the most important objectives for several organizations. This is

because higher levels of employee productivity provide an organization and its employees with various

advantages. For instance, higher productivity leads to favourable economic growth, large profitability and better

social progress (Sharma & Sharma, 2014). Additionally,

employees' who are more productive can obtain better wages/ salaries, better working conditions, and favourable

employment opportunities. Moreover, higher productivity tends to maximize organizational competitive

advantage through cost reductions and improvement in high quality of output (Baily et al., 2005; Hill et al., 2014;

Wright, 2004).

Page 3 of 9

Journal for Studies in Management and Planning

Available at https://pen2print.org/index.php/jsmap/

ISSN: 2395-0463

Volume 04 Issue 10

October 2018

Available online: https://pen2print.org/index.php/jsmap/ P a g e | 29

This study will benefit many organisations by providing an appropriate framework to identify the

variables in organisational climates. Therefore, these help the organisation to strategies effectively using the

suitable variables in the organisation to boost up the performance of employees.

The aim of this research is to investigate the impact of organizational climate on employee job

performance in SLT Aluminium Company in Edo State. Besides, the objective of the study is to determine the

relationships between organisational climate and employee job satisfaction based on the chosen variables such as

reward, warmth, support and commitment, structure, risk and conflicts and finally standards will be determined

in this study. This study will also clarify the impact of each variables of organisational climate to employees in

the organizations.

2. Literature Review

2.1 Organizational climate and its concept

Researchers in organizational behaviour have long been interested in understanding employees’

perceptions of the work environment and how these perceptions influence individuals’ work- related attitudes and

behaviours. Early researchers suggested that the social climate or atmosphere created in a workplace had

significant consequences on employees’ perceptions of the work context purportedly influenced the extent to

which people were satisfied and perform up to their potential, which in turn, was predicted to influence

organizational productivity (Katz& Kahn, 2004, McGregor, 2000). Many studies have formulated indicators of

organizational climate most of which are related. The indicators identified so far range from six to eighteen

dimensions (Litwin and Stringer, 2000). Among these are employees’ responsibility, organizational structure,

administrative style, management support, performance related feedback, conflict management and rewards. The

construct of climate has been studied extensively and has proven useful in capturing perceptions of the work

context (Denisson, 2006; Ostroff, Kinicki & Tamkins, 2007). Climate has been described as an experientially

based description of the work environment and, more specifically, employees’ perceptions of the formal and

informal policies, practices and procedures in their organization (Schneider, 2008).

Organizational climate represents the condition of the organization’s 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 drained by fiscal constraint, downsizing, and outsourcing requires

organization to change dynamics in the workforce that is accommodating. Organizational climate have been

proven to influence employee’s behaviour such as participation, absenteeism level of stress and work commitment

(Rose, 2004). Limelight on the development of employee performance needs to be at the top of every

organization’s agenda. Promoting a supportive environment and a positive workforce climate is no longer seen as

a simply an attractive option; it is a business vital. Climate has a tangible effect on employees’ motivation. A good

working climate boosts employee morale, loyalty and productivity.

2.2 Employees’ Productivity

One of the key issues that most organizations face nowadays is the need to improve employee

productivity. Employee productivity is an assessment of the efficiency of a worker or group of workers. In actual

terms, productivity is a component which directly affects the company’s profits Sels et al., (2006). Productivity