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
