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International Journal of Marketing and Human Resource Management (IJMHRM)

Volume 8, Issue 4, Oct – Dec 2017, pp. 01–13, Article ID: IJMHRM_08_04_001

Available online at http://www.iaeme.com/IJMHRM/issues.asp?JType= IJMHRM &VType=8&IType=4

ISSN Print: ISSN 0976 – 6421 and ISSN Online: 0976 – 643X

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© IAEME Publication

EFFECTIVENESS OF EMPLOYEE’S

EDUCATION ON ORGANISATIONAL CLIMATE

- A STUDY OF PUBLIC AND PRIVATE SECTOR

BANKS IN KARNATAKA

Nagaraju B

Chairman and Professor, DOS in Commerce/University of Mysore, India

Pooja J

Research Scholar, DOS in Commerce/University of Mysore, India

ABSTRACT

Organizational Climate of any institution repeats the perception and expressive

responses of the individuals working within that system. The present study has been

carried out by analyzing the data collected from 150 employees working in different

public and private sector banks to ascertain whether the responses differ significantly

or not with regard to their perception of organizational climate. The data for the

purpose has been collected with the help of relevant scale and analyzed by applying

different statistical techniques. The study reveals significant differences in employees’

perception of organizational climate across demographic and organizational variable

particularly with regard to educational qualification

Key words: organizational climate, educational qualification, public sector, private

sector, employees.

Cite this Article: Nagaraju B and Pooja J, Effectiveness of Employee‟s Education on

Organisational Climate - A study of Public and Private Sector Banks in Karnataka.

International Journal of Marketing and Human Resource Management, 8(4), 2017,

pp. 01–13.

http://www.iaeme.com/ IJMHRM /issues.asp?JType= IJMHRM &VType=8&IType=4

1. INTRODUCTION

Organizational climate is an important aspect of organization and management. The

increasing research in this field and the concentrated deliberations on the subject contributed

to its conceptualization and meaning which helped to develop a wide-ranging outlook of

organizational climate as an important concept. Organizational climate is the shared

perception of employees who work and subsist in the organization. It is the sum of individual

perceptions regarding the organizational procedures, policies and practices .It is the set of

measurable properties of the work environment, perceived directly or indirectly by the

members, influencing their work and satisfaction. Organizational Climate is about the

Nagaraju B and Pooja J


perceptions of the climate and about complete measures. The „Climate‟ may be regarded in

absolute terms and measured by instruments, but is „felt‟ differently by individuals. The

absolute climate may suit one person and not another. All organizational theoreticians and

researchers collectively agree that a social Climate is extremely important for the ultimate

achievement of organizational goals. Organizational Climate is comprised of a combination of

norms, values, expectations, policies and procedures that influence work motivation,

commitment and ultimately individual or work unit performance. The aging of the workforce

and its projected economic and societal consequences have led to an increased interest among

organizational researchers and practitioners in the topic of successful aging at work, including

ways to maintain and enhance older employees‟ motivation, performance, attitudes, and well-

being.

2. CONCEPT OF ORGANIZATIONAL CLIMATE

According to Campbellet, (1970) organizational climate is defined as a set of attributes

specific to a particular organization that may be induced from the way that organization deals

with its members and its environment. Hellreigel and Slocum (1974), organizational climate

is a set of perceived attributes of the organization (or its sub systems), induced from the way

the organization and its members deal with each other and with their environment. Schneider

and Hall (1972) have defined organizational climate as a set of global perceptions held by

organizational members about their organizational environment. Reichers & schneider, (1990)

Organizational climate is defined as shared perceptions or prevailing organizational norms for

conducting workplace activities Cooper (2003) describes organizational climate as “people‟s

perception of their working environment with regard to caring and friendliness.”

Gerber (2003) and Moran and Volkwein (1992) were integrated. Organizational climate is

defined as the shared perceptions, feelings and attitudes that organizational members have

about the fundamental elements of the organization, which reflect the established norms,

values and attitudes of the organization‟s culture and influences individual‟s behavior

positively or negatively.

3. LITERATURE REVIEW

Agarwal et.al. (2004) in his work “Organizational Climate for perceptions of procedural

fairness in human resource practices and role efficacy” found that demographic characteristics

of members are differently influenced by the HR policies of the organization and there by

procedural justice perceptions.

Pooja et.al. (2006) in his research article entitled “climate profile and organizational

citizenship behaviors: A comparative analysis of teachers working in public and private

schools”. Revealed influences of age and gender on organizational citizenship behaviors in

public and private schools. The cadre- wise, age- wise and experience-wise analysis has also

validated the findings.

Riggle (2007) in their article entitled „The Impact of Organizational Climate Variables of

Perceived Organizational Support, Workplace Isolation, and Ethical Climate on Salesperson

Psychological and Behavioral Bork Outcomes,‟ investigated that organizational climate

variables such as perceived organizational support, ethical climate, and trust do positively

impact salesperson psychological and behavioral outcomes

Fritzsch (2009) conducted a study on topic entitled „The Impact of Organizational

Climate and Organizational Strategy on Strategic Behavior‟ explored that various

configurations of organizational climate and organizational strategy lead to strategic

Effectiveness of Employee‟s Education on Organisational Climate - A study of Public and Private

Sector Banks in Karnataka


employee behavior which is crucial for organizations to reach their goals and also found that

strategic employee behavior is related to the fit between the organizational strategy as

perceived by all employees and the organizational climate within an organization. The results

reveal that fit is negatively related to innovative work behavior and the customer oriented

behavior; knowledge sharing and affective commitment are not significantly related to fit.

Lather, et al, (2010) topic entitled „Organizational Culture: A Study of Selected Organizations

in the Manufacturing Sector in NCR‟, compared the organizational structure of the selected

companies in the manufacturing and to identify and measure the perceived organizational

culture and its various dimensions. The result revealed that the executives and non-executives

perceive the culture differently and the study helped in identifying the weaker aspects of

culture in terms of values and beliefs that prevail in the organization.

Shah and Irani (2010) in their article entitled “Examining Employee Attitudes and

Behaviors towards Organizational Change Using Supervisor and Peer Relations” conducted a

study on employee workplace and demographic predictors to know the employee attitudes

and behaviors regarding organizational change. The findings indicated a significant

relationship between the read lines for the change and workplace and demographics factors.

First time supervisor and peer relations predictor has been examined to read lines for change.

Results further indicated positive and significant relationships between read lines for change

and supervisor and the peer relations. However, from demographic characteristics only two

i.e. number of dependents and younger employees have positive and significant

Adenike (2011) in his research article „Organizational Climate as a Predictor of Employee

Job Satisfaction: Evidence from Covenant University‟, explored the organizational climate as

an indicator of employee job satisfaction of academic staff to examine its role in job

satisfaction of worker which in turn affects organizational productivity. The hypotheses were

tested and the results of the study showed a significant positive relationship between these

two variables

Konda (2013) in his research article entitled” influence of demographic factors on

organizational climate”, revealed that employees have positively perceived the organizational

climate also highlighted that among variables age, education, income and experience, only

education has some influence on the perception.

4. NEED FOR THE STUDY

The present study has undertaken to evaluate the influence of age on organizational climate

with respect to the employees of public and private sector banks. And to make a comparative

analysis of organizational climate between public and private sector banks. As earlier studies

reveal that climate varies from organization to organization.so every organization has to be

attentive towards their organizational climate. The present study has made an attempt to find

is there any significant perceptional differences of age on organizational climate and between

the sectors of the employees.

5. OBJECTIVES OF THE STUDY

The main objective of the study has been to explore the employees‟ perception of the

organizational climate prevailing in public and private sector banks. The incidental objectives

of the study were as under:

1. To Study the effectiveness of employees‟ education on organizational climate prevailing in

public and private sector banks.



2. To study the employees‟ perceptional differences on organizational climate in public and

private sector banks with respect to education.

6. HYPOTHESIS OF THE STUDY

Based upon the following objectives the following hypotheses have been drawn for further

testing:

H0: There is no significant difference in employee‟s education on organizational climate

prevailing in public and private sector banks.

H1: There is a significant difference in employee‟s education on organizational climate

prevailing in public and private sector banks

H0: There is no significant perceptional differences of employees on organizational climate in

public and private sector banks with respect to education.

H1: There is a significant perceptional differences of employees on organizational climate in

public and private sector banks with respect to education.

7. METHODOLOGY

In the present study data has been collected from 150 employees working in public and

private sector banks. Simple random sampling method was used for the selection of the

employees from each bank for data collection. 92 respondents were from public sector bank

and 58 were from private sector bank.

To collect data standardized questionnaire developed same has been used for the data

collection for the same study. Data was collected through structured questionnaire on a five

point Likert Scale as “Strongly disagree “to “strongly agree” and rating given as 1 to 5

respectively. The questionnaire used consist of two categories i.e. the demographic

description of the employees working in different organizations (which includes gender,

experience, qualification, salary, managerial cadre etc.) and the second category includes

Organizational Climate factors. The collected data has been analyzed by applying relevant

statistical techniques i.e. mean score, standard deviations, and F-test (ANOVA). The F-test

i.e. has been used to ascertain whether the employees‟ perception on different aspects of the

study as mentioned in the objectives of the study differ significantly or not.

8. DATA ANALYSIS AND INTERPRETATION

8.1. Impact of education qualification on organizational climate

N Mean

Std.

Deviation

Work area has a safe working environment

Diploma 1 5.0000 .

Graduate 58 3.8966 .74197

Post-graduation 90 4.2778 .86151

others 1 4.0000 .

Total 150 4.1333 .83277

Sum of

Squares df Mean Square F Sig.

Work area has

a safe working

environment

Between Groups 5.898 3 1.966 2.946 .035

Within Groups 97.435 146 .667

Total 103.333 149




For the statement work area has a safe working environment has a significant difference

between educational qualification and working environment with a p- value of .035 < 0.05

8.2. Educational qualification between sectors

Sector N Mean Std.

Deviation

Std. Error

Mean

Work area has a safe working

environment

Public sector 92 4.2500 .76496 .07975

Private sector 58 3.9483 .90655 .11904

F Sig. t df

Sig.

(2-

tailed)

Work area has a safe working

environment

.801 .372 2.188 148 .030

2.106 106.248 .038

The work area has a safe working environment shows a significant difference between the

sector seeking a higher mean in case of public sector which is 4.2500 with a standard

deviation of .76496 whereas for private sector the mean was 3.9483 and SD was .90655 with

a p value = 0.38<0.05.

8.3. Impact of educational qualification on Participative management

N Mean Std.

Deviation

Employees are consulted before taking important

decision

Diploma 1 4.0000 .

Graduate 58 3.3448 .73870


others 1 4.0000 .

Total 150 3.7733 .85253

The management gives respect and power to the

worker‟s representatives in meetings

Diploma 1 3.0000 .

Graduate 58 3.5345 .88289


others 1 4.0000 .

Total 150 3.7867 .83213

Sum of

Squares

df Mean

Square

F Sig.

Employees are consulted

before taking important

decision

Between

Groups 17.368 3 5.789 9.296 .000

Within

Groups 90.926 146 .623

Total 108.293 149

The management gives

respect and power to the

worker‟s representatives in

meetings

Between

Groups 6.920 3 2.307 3.499 .017

Within

Groups 96.253 146 .659

Total 103.173 149

Employees are consulted before taking important decision has a significant difference in

educational qualification and participative management with a p- value of .000.



P-value of .017 shows that there is a significant difference on educational qualification

and participative management for the statement the management gives respect and power to

the worker‟s representatives in meetings.

8.4. Educational qualification and participative management between sectors

Sector N Mean Std.

Deviation

Std. Error

Mean



decision

Public sector 92 3.6522 .83119 .08666

Private sector 58 3.9655 .85769 .11262

The management gives respect

and power to the worker‟s

representatives in meetings

Public sector 92 3.6413 .90883 .09475

Private sector 58 4.0172 .63499 .08338

F Sig. t df Sig. (2-tailed)



decision

1.586 .210 -2.221 148 .028

-2.205 118.466 .029

The management gives

respect and power to the

worker‟s representatives in

meetings

12.765 .000 -2.753 148 .007

-2.979 146.375 .003

With reference to Employees are consulted before taking important decision found to have

a significant difference between the sectors indicating p value of 0.029<0.05. The mean and

SD for Public and Private sector were 3.6522, SD =.83119 and 3.9655 with SD = .85769

respectively.

P-value of .007 and mean value of 4.0172 in private sector banks shows that there is a

significant difference on education qualification and participative management between

public and private sector banks.

8.5. Influence of educational qualification on involvement and commitment

N Mean Std.

Deviation

Employees feels it is the best place to work

and a sense of belongingness.

Diploma 1 5.0000 .

Graduate 58 3.6724 1.12994

Post-

graduation 90 4.1111 .78532

others 1 4.0000 .

Total 150 3.9467 .95388

Sum of

Squares

df Mean

Square

F Sig.

Employees feels it is the

best place to work and a

sense of belongingness

Between Groups 7.909 3 2.636 3.015 .032


Total 135.573 149




Employees feels it is the best place to work and a sense of belongingness shows a

significant difference of educational qualification on involvement and commitment with a p-

value of .032.

8.6. Involvement and commitment between sectors

Sector N Mean Std.

Deviation

Std. Error

Mean

Employees feels it is the best

place to work and a sense of

belongingness.

Public sector 92 3.7935 1.02215 .10657

Private sector 58 4.1897 .78264 .10277


Employees feels it is the best

place to work and a sense of

belongingness.

1.400 .239 -2.521 148 .013

-2.676 142.376 .008

For the statement Employees feels it is the best place to work and a sense of

belongingness' it too found a significant difference between the sectors stating the p value

as.008<0.05. The mean value for Private sector was 4.1897, SD= .78264 and for Public sector

it stood at 3.7935 and SD of 1.02215 indicating that Private sector had best place to work.

Mean value of 4.1897 and p- value of .013 shows that there is a significant difference of

involvement and commitment between public and private sector banks for the statement

employees feels it is the best place to work and a sense of belongingness.

8.7. Impact of educational qualification on Welfare concern

N Mean Std. Deviation

Group insurance and other facility

(benevolent, leave fare concession) provided

by the banks are beneficial.

Diploma 1 4.0000 .

Graduate 58 3.6552 .92815


others 1 4.0000 .

Total 150 3.9600 .92599

Sum of

Squares

df Mean

Square

F Sig.

Group insurance and other

facility (benevolent, leave fare

concession) provided by the

banks are beneficial.

Between

Groups 8.834 3 2.945 3.615 .015


Total 127.760 149

Group insurance and other facility (benevolent, leave fare concession) provided by the

banks are beneficial shows a significant difference on impact of educational qualification and

welfare concern with a p- value of .015.

8.8. Welfare concern between sectors

Sector N Mean Std.

Deviation

Std. Error

Mean

Group insurance and other facility

(benevolent, leave fare concession)

provided by the banks are beneficial

Public sector 92 3.7717 .93882 .09788

Private sector 58 4.2586 .82845 .10878




Group insurance and other

facility (benevolent, leave

fare concession) provided

by the banks are beneficial

Equal variances

assumed .030 .863 -3.234 148 .002

Equal variances

not assumed

-3.327 132.328 .001

Mean value of 4.2586 shows more with respect to private sector bank with a p-value of

.002 indicating there is a significant difference between education qualification and welfare

concern between public and private sector for the statement Group insurance and other facility

(benevolent, leave fare concession) provided by the banks are beneficial.

8.9. Influence of educational qualification on motivation


The centralized authority in the

organization motivates employee‟s

efficiency.

Diploma 1 4.0000 .

Graduate 58 3.5345 1.04656

Post-

graduati

on

90 4.1111 .79950

others 1 4.0000 .

Total 150 3.8867 .93792

Sum of

Squares

df Mean

Square

F Sig.



efficiency.

Between

Groups 11.753 3 3.918 4.794 .003


Total 131.073 149

The centralized authority in the organization motivates employee‟s efficiency with a p-

value of .003 shows that there is a significant difference between impacts of educational

qualification on motivation.

8.10. Motivation between sectors

Sector N Mean Std.

Deviation

Std.

Error

Mean



efficiency.

Public sector 92 3.7717 .97331 .10147

Private sector 58 4.0690 .85557 .11234

F Sig. t df Sig. (2-

tailed)

The centralized

authority in the

organization

motivates

employee‟s

efficiency.

Equal

variances

assumed

.212 .646 -1.907 148 .048

Equal

variances not

assumed

-1.963 132.646 .042




Mean value of 4.0690 and p-value of .048 shows that there is a significant difference

between public and private sector on motivation for the statement the centralized authority in

the organization motivates employee‟s efficiency.

8.11. Influence of educational qualification on training and development

N Mean Std.

Deviation

Training and development enhance

the efficiency and effectiveness of

the work being performed by the

employees.

Diploma 1 5.0000 .

Graduate 58 3.7241 1.16669


others 1 4.0000 .

Total 150 4.0800 .92337

Training needs identified are

realistic, useful and based on the

business strategy of the bank.

Diploma 1 4.0000 .

Graduate 58 3.6897 1.14259


others 1 4.0000 .

Total 150 4.0000 .91959

Sum of

Squares

df Mean

Square

F Sig.

Training and development

enhance the efficiency and

effectiveness of the work being

performed by the employees

Between Groups 12.554 3 4.185 5.336 .002


Total 127.040 149


realistic, useful and based on the

business strategy of the bank.

Between Groups 9.186 3 3.062 3.827 .011


Total 126.000 149

Training and development enhance the efficiency and effectiveness of the work being

performed by the employees with a p-value of .002 shows that there is a significant difference

on the impact of educational qualification on training and development.

P-value of .011 shows that there is a significant difference influencing training and

development by educational qualification for the statement Training needs identified are

realistic, useful and based on the business strategy of the bank.

8.12. Training and development between sectors

Sector N Mean Std.

Deviation

Std. Error

Mean

Training and development

enhance the efficiency and

effectiveness of the work being

performed by the employees

Public sector 92 3.9239 1.01887 .10622

Private sector 58 4.3276 .68538 .09000


realistic, useful and based on

the business strategy of the

bank.

Public sector 92 3.8696 .97459 .10161

Private sector 58 4.2069 .78937 .10365



F Sig. t df Sig.

(2-

tailed)

Training and

development enhance

the efficiency and

effectiveness of the work

being performed by the

employees

Equal variances assumed .333 .565 -2.660 148 .009

Equal variances not

assumed

-2.899 147.334 .004

Training needs identified

are realistic, useful and

based on the business

strategy of the bank.

Equal variances assumed .052 .820 -2.216 148 .028

Equal variances not

assumed

-2.324 138.865 .022

Training and development enhance the efficiency and effectiveness of the work being

performed by the employees has a mean value of 4.3276 more in private sector bank and also

with a p-value of .009 indicating there is a significant difference between public and private

sector banks on training and development,

Mean value of 4.2069 and p- value of .022 this too shows a significant difference between

public and private sector banks on training and development for the statement „Training needs

identified are realistic, useful and based on the business strategy of the bank‟.

8.13. Impact of educational qualification on empowerment

N Mean Std.

Deviation

Empowerment makes employees feel that they are

vital to the success of the organization.

Diploma 1 4.0000 .

Graduate 58 3.7931 .93205


others 1 4.0000 .

Total 150 4.0200 .78124

Empowered employees facilitate the process of

positive change in the organization.

Diploma 1 4.0000 .

Graduate 58 3.7931 .91304


others 1 4.0000 .

Sum of

Squares

df Mean

Square

F Sig.

Empowerment makes employees

feel that they are vital to the

success of the organization.

Between Groups 4.923 3 1.641 2.785 .043


Total 90.940 149

Empowered employees facilitate

the process of positive change in

the organization.

Between Groups 5.221 3 1.740 3.314 .022


Total 81.893 149

Empowerment makes employees feel that they are vital to the success of the organization

with a p-value of .043 shows that there is a significant difference of educational qualification

on empowerment.

P-value of .022 shows that there is a significant difference on empowerment by

educational qualification for the statement Empowered employees facilitate the process of

positive change in the organization.




8.14. Empowerment between sector

Sector N Mean Std.

Deviation

Std. Error

Mean

Empowerment makes employees

feel that they are vital to the

success of the organization.

Public sector 92 3.9022 .79917 .08332

Private sector 58 4.2069 .71962 .09449

Empowered employees facilitate

the process of positive change in

the organization.

Public sector 92 3.9348 .78172 .08150

Private sector 58 4.1724 .65260 .08569


tailed)

Empowerment makes

employees feel that

they are vital to the

success of the

organization.

Equal variances

assumed 2.505 .116 -2.362 148 .019

Equal variances not

assumed

-2.419

130.63

1 .017

Empowered employees

facilitate the process of

positive change in the

organization.

Equal variances

assumed .001 .974 -1.929 148 .048

Equal variances not

assumed

-2.009

136.69

9 .046

Empowerment makes employees feel that they are vital to the success of the organization

has a mean value of 4.2069 I private sector bank showing a significant difference between

public and private sector banks on empowerment with a p-value of .019.

Mean value of 4.1724 is also more in private sector banks with a p-value of .048

highlights that there is a significant difference between public and private sector banks for the

statement‟ Empowered employees facilitate the process of positive change in the

organization‟.

8.15. Impact of educational qualification on career


Career opportunities are pointed out to

juniors by the senior officers in the

organization.

Diploma 1 4.0000 .

Graduate 58 3.4828 1.06361


others 1 4.0000 .

Total 150 3.7933 .89215

Sum of

Squares

df Mean

Square

F Sig.

Career opportunities

are pointed out to

juniors by the senior

officers in the

organization.

Between

Groups 9.122 3 3.041 4.055 .008


Total 118.593 149



Career opportunities are pointed out to juniors by the senior officers in the organization

with a p- value of .008 shows a significant difference on career due to educational

qualification.

8.16. Career between sectors

Sector N Mean Std. Deviation Std. Error

Mean

Career opportunities are pointed

out to juniors by the senior

officers in the organization

Public sector 92 3.6522 .97704 .10186

Private sector 58 4.0172 .68803 .09034


tailed)

Career

opportunities are

pointed out to

juniors by the

senior officers in

the organization

Equal

variances

assumed

10.257 .002 -2.483 148 .014

Equal

variances not

assumed

-2.681 146.124 .008

It was found that there was a significant difference between the sector as per the p value =

.008<0.05 with response to Career opportunities are pointed out to juniors by the senior

officers in the organization. It seemed to be significantly higher in private sector when

compared to Public sector.

9. FINDINGS

According to the academic qualifications the respondents have been categorized in four layers

i.e. diploma. Graduate, post-graduation and others. The F-value and p-value between sectors

and educational qualification with respect to organizational climate leads to the rejection of

the null hypothesis .The main purpose of the study was to investigate that there is significant

difference between the perception of the employees of public and private sector banks with

respect to educational qualification on organizational climate.

The obtained data were analyzed in the light of the objectives and hypothesis proposed in

the study. For this purpose ANOVA was carried out so that a comparison can be done. The

summary of the ANOVA of work with respect to educational qualification on organizational

climate in public and private sector banks have a significant difference. Hence the null

hypotheses stating there is no significant difference in the perception of employees regarding

organizational climate with respect to their educational qualifications is rejected and also

there is no significant difference in the perception of employees regarding organizational

climate in different public and private sector banks with respect to education is also rejected.

10. CONCLUSIONS

It goes beyond saying that organizational climate describes the assurance and perceptions of

the organization and is quite particular in its description. Yet the employees‟ perception of the

same leads to the variety in image building of the organization. Organizational climate leads

to the smooth working of any organization, it is very essential to study the organizational

climate and various factors which directly or indirectly influence the climate of any

organization. The results of the present study bring out many interesting facts which may help

the future organization in reshaping their climate. From the results obtained significant




variations have emerged in the perception of overall organizational climate on the basis of

serving sector i.e. public/private sector, the academic qualifications of the respondents.

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