RMAS ASSIGNMENT

EDHRM 2019
Prabha Hadkar – XHA19027

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Contents
Abstract:......................................................................................................................................................3
Introduction.................................................................................................................................................3
Literature Review........................................................................................................................................5
Research Design........................................................................................................................................10
Respondent Profile................................................................................................................................10
Dependent Variable...............................................................................................................................11
Independent Variable............................................................................................................................11
Mediating Variable................................................................................................................................12
ANALYSIS PLAN......................................................................................................................................12
SUMMARY OF REGRESSION BETWEEN ETHICAL CLIMATE AND JOB PERFORMANCE....................................................16
SUMMARY OF REGRESSION BETWEEN ETHICAL CLIMATE AND JOB SATISFACTION.....................................................17
SUMMARY OF REGRESSION BETWEEN GOAL CLARITY AND JOB PERFORMANCE.......................................................18
SUMMARY OF REGRESSION BETWEEN JOB SATISFACTION AND JOB PERFORMANCE..................................................19
IMPLICATION & RECOMMENDATIONS..................................................................................................21
Further Research...................................................................................................................................21
Annexures..............................................................................................................................................22
Bibliography...............................................................................................................................................29

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Abstract:
This study uses exploratory research to examine the relationship between organizational
Ethical Climate (EC), Job Satisfaction (JS), Goal Clarity (GC) and Job Performance (JP) of 101 employees
working in a manufacturing organization in India. The result showed that Ethical Climate had an
impact on Job performance through mediating variables goal clarity & job satisfaction. Ethical climate
also had a direct impact on job satisfaction & goal clarity. In addition, Job satisfaction had a direct
impact on Job performance. Finally, goal clarity had direct impact on Job performance. Based on these
results, practical implications are provided

Introduction
Ethical work climate represents a set of shared formal and informal perceptions of procedures and
policies, which shape expectations for ethical behavior. [ CITATION JOH93 \l 1033 ]. Of late researchers
have focused their attention on this construct, considering its influence on organizational outcomes and
individual behaviors. Many ethical climate studies have been conducted across a range of industries. Yet
no specific study of ethical climate in the manufacturing industry (especially Pharma manufacturing) has
been undertaken to ascertain what effect this construct has on job performance in the manufacturing
sector. Hence, the rationale for chosen selected manufacturing organization in India is because they
represent manufacturing organizations with huge capital layout, sophisticated machines and has
reasonable number of employees located in an industrial area in Maharashtra.

Objective of the Study

The objective of this study is to explore the relationship between ethical climate and job performance in
selected pharma manufacturing organization.

Research Question
The research question for this study includes:

What is the relationship between ethical climate and employees‟ job performance?

Research Hypotheses
In order to solve the objective of this study, the following hypothesis is formulated

Hypothesis 1- Ethical climate has an impact on job performance through mediating role of job
satisfaction & goal clarity

Hypothesis 2- Ethical climate has a positive direct impact on job satisfaction

Hypothesis 3 - There is a relationship between Goal Clarity and Job Performance

Hypothesis 4- Job satisfaction has a positive direct impact on employee job performance

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 H3- Job Variety (JV)
Compensation (CTC)
Relationship with co-workers (COW)
Management Policies (POL)
Relationship with Supervisors (RWS)
Job
Satisfaction
H4
H2
Mediator Variable

Ethical Job
Climate H1 Performance

H4 Task Performance
Independent Contextual
H3
Variable Performance
Counterproductive
behavior

Dependent
Variable
Goal Clarity

Mediator Variable

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Literature Review
ETHICAL CLIMATE [ CITATION Wei13 \l 1033 ] & [ CITATION Oko16 \l 1033 ]
Employees learn appropriate behavior within their organization through climate perceptions. [ CITATION
Vic90 \l 1033 ] defined climate as ‘‘values and beliefs that are known and perceived by workgroups
and/or organization members.’’ Early research done on organizational climate virtually ignored those
aspects of a firm’s climate that guides ethical behavior.
Ethical climate is a type of work climate which guides ethical behavior within an organization. They help
employees decide what is right or wrong behavior within an organization. The initial work on identifying
different types of ethical climate within an organization was done by [ CITATION Vic88 \l 1033 ]
[ CITATION Vic90 \l 1033 ]

The typology of ethical climates has three bases or criteria of moral judgment: egoism, benevolence, and
principle. These form the three basic ethical climates. In an egoistic climate, company norms support the
pursuit of self-interest. In the benevolent climate, company norms support maximizing the interests of a
particular social group. In the principled climate, company norms support following abstract principles
independent of situational outcomes. Based on the concept, the ethical climate dimension of the
organization is designed as follows: caring, law and code, rule, instrumentality, and independence
[ CITATION JOH93 \l 1033 ]

Based on the concept, the ethical climate of the organization is designed as follows: caring, law and
code, rule, instrumentality, and independence. This classification of ethical climates has been validated
against various measures of organizational effectiveness. The descriptions that follow are derived from
Victor & Cullen [CITATION JOH93 \l 1033 ]

1. Caring. This climate type focuses on the benevolence ethical criterion and is based on concern
for others. In this atmosphere, individuals have a sincere interest in each other‟s well-being, as
well as that of others within and outside of the organization who might be affected by their
ethical decisions.
2. Independent. This dimension entails the principle ethical criterion. According to this dimension
of ethical climate, persons act according to their own personal moral belief based upon a set of
well-considered principles. .
3. Law and Code. The law and code dimension is associated with the principle of ethical criterion.
In decision making situations within a law and code climate, it is perceived that employees
should make decisions based on the mandate of some external systems such as the law, or
professional codes of conduct.
4. Rules. The rule dimension is associated with the principle ethical criterion. This dimension
relates to the accepted rules of conduct determined by the firm. Organizational decisions are
guided by a set of local rules or standards such as codes of conduct.
5. Instrumental. The instrumental climate involves the egoistic criterion and is primarily based on
the maximization of self-interest. Individuals believe that decisions are made to serve the
organization ‟s interests or to provide personal benefits

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JOB SATISFACTION[CITATION Wei13 \l 1033 ]
Locke [ CITATION Loc76 \l 1033 ] defined job satisfaction as ‘‘a pleasurable or positive emotional
state resulting from the appraisal of one’s job or job experience.’’

Job satisfaction refers to an employee‟s general attitude toward his or her job. An individual
who is satisfied with his or her job holds positive attitude toward the job (Robbins, 2000). The
dimensions of job satisfaction include; compensation, job variety, relationship with supervisor,
relationship with co-workers and management policies.

Churchill and his colleagues defined the construct of job satisfaction as consisting of seven
components [ CITATION Chu74 \l 1033 ]: the job itself, fellow workers, supervision, company
policy and support, pay, promotion and advancement and customers.

Job itself Most employees want an interesting and significant job which allows success, progress
and growth for them. Moreover, they want responsibility, autonomy, role clarity, feedback from
managers and lack of role conflict. [CITATION He851 \l 1033 ]
Fellow workers Employees like their colleagues who have similar values with them and facilitate
work accomplishment [ CITATION He851 \l 1033 ] Robbins stated that friendly and supportive
co-workers lead to increase in job satisfaction [ CITATION Rob00 \l 1033 ]
Supervision Employees enjoy considerate, honest, fair and competent supervisors. They also
want to be recognized and rewarded for good performance, and participate in decision making [
CITATION He851 \l 1033 ]. Although there may be some exceptions such as individual difference
participative decision-making leads to increased job satisfaction [ CITATION Rob00 \l 1033 ].
Company policy Employees want to work in an organization that respects for them and their
values, and are managed effectively [ CITATION He851 \l 1033 ]
Pay Pay affects the overall level of a worker‟s job satisfaction or dissatisfaction [ CITATION
Osh03 \l 1033 ]. Employees want fair and enough payment to meet their needs [ CITATION
He851 \l 1033 ]. Pay fairness refers a comparison between what people believe they deserve to
be paid and what others deserve to be paid [ CITATION Jac00 \l 1033 ]
Promotion A promotion refers to advancement to a position that is recognized as having higher
status, increased responsibility and/or higher pay [ CITATION Jac00 \l 1033 ] Employees want
just and unambiguous promotion system. When people perceive that promotion decisions are
made in fair, just manner and in line with their expectation they are like to be more satisfied in
their job [ CITATION Rob00 \l 1033 ].

Figure 1:

Ethical Climate Job Satisfaction

Caring Compensation
Law & Codes Job Variety
Rules Relationship with Supervisors
Instrumentality Relationship with Co-workers
Independence Management

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GOAL CLARITY [CITATION And15 \l 1033 ]

The central premise of Goal Setting Theory (GST) is that encouraging individuals to pursue clear and
difficult goals yields greater performance benefits than encouraging them to pursue vague and easy
goals, or to simply do their best.[ CITATION Loc90 \l 1033 ]. According to more than 400 studies, specific
and difficult goals leads consistently to higher performance than when one sets easy or vague ‘do-your-
best’ goals [ CITATION Loc90 \l 1033 ]
The management and applied psychology literatures generally define goal clarity as “the extent to which
the outcome goals and objectives of the job are clearly stated and well defined” [ CITATION Saw92 \l
1033 ].
For example, in the management literature, the frequently used measure of goal clarity developed by
[ CITATION Saw92 \l 1033 ] examines goal clarity as it pertains to one’s duties and responsibilities, job
goals and objectives, relations between individual work and the objectives of the overall unit, expected
work results, and aspects of work that lead to positive evaluations.

The five principles of goal settings are given below

1. Clarity. A goal must be specific and clear.

2. Challenge. An easy or tedious goal is demotivating. But keep a realistic balance: don’t expect
anyone on your team to spin straw into gold.
3. Commitment. Your employees must understand and buy in to the goal from the outset.
4. Feedback. Provide regular feedback throughout the whole process. This helps to keep the goal
on track.
5. Task complexity. Think about realistic timescales and break down the process into sub-goals
with regular reviews.

JOB PERFORMANCE [ CITATION Nan18 \l 1033 ]

Employee Job Performance assesses whether an employee performs his or her job well. Job
performance (JP) has been studied academically as part of industrial and organizational psychology and
is a component of human resources development and management. Additionally, JP is a key criterion for
organizational outputs, outcomes and success [ CITATION Orp95 \l 1033 ] ; [ CITATION Pra17 \l 1033 ]; [
CITATION Yus14 \l 1033 ]. According to [ CITATION Hed16 \l 1033 ] and [ CITATION Ros16 \l 1033 ],
organizations make various resources available to enhance JP of employees. EJP is an indicator of
individual employees’ efficiency and productivity and organizational operational efficiency and long term
success. Thus, an effective job performance evaluation tool can contribute to enhancing employees
work performance and the attainment of organizational goals [ CITATION Sta16 \l 1033 \m Sta02];

Regarding to [ CITATION Pet14 \l 1033 ], job performance refers to employees’ behaviors related to
their responsible tasks and organizational goals. In fact, individual job-related behaviors can be
categorized into two types: behaviors within the context of responsible assignments or as specified in
the job description and behaviors performed in response to circumstances, not instructions.

The 3 main dimensions of Job Performance [ CITATION Koo11 \l 1033 ]

Task Performance - Task performance can be defined as the proficiency (ie, competency) with which
one performs central job tasks. It includes, for example, work quantity, work quality, and job knowledge

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Contextual Behavior- Contextual performance can be defined as individual behaviors that support the
organizational, social, and psychological environment in which the technical core must function. 5
Several labels exist for this dimension, such as non–job-specific task proficiency, extra-role performance,
organizational citizenship behavior, or interpersonal relations. All concepts, however, refer to behaviors
that go beyond the formally prescribed work goals, such as taking on extra tasks, showing initiative, or
coaching newcomers on the job
Counterproductive Work behavior- Attention for counterproductive work behavior, defined as behavior
that harms the well-being of the organization, has increased in recent years. It includes behaviors such
as absenteeism, being late for work, engaging in off-task behavior, theft, and substance abuse

EMPIRICAL STUDIES ON ETHICAL CLIMATE AND JOB PERFORMANCE[ CITATION Wei13 \l 1033 ]

Very little research had been done to examine the impact of ethical climate on employees’ job
performance.
Job performance is a term used to depict how well an employee performs his or her work-related duties
[ CITATION Cai10 \l 1033 ]. [ CITATION Jar06 \l 1033 ] found that a high ethical climate leads to higher
job performance of salespeople who work for a large retailer selling high-end consumer durables at 68
stores in 16 states. [ CITATION Elc07 \l 1033 ] proposed that corporate ethical values will be positively
associated with job performance in a survey of 253 blue-collar employees selected randomly from ten
middle sized manufacturing companies. [ CITATION Kim11 \l 1033 ],in a survey of 324 middle managers,
found that executives’ ethical leadership had an indirect impact on job performance through the
mediating role of affective commitment and extra effort. [ CITATION Sab12 \l 1033 ] found that
corporate ethical values had a significant impact on employee performance through the mediating
effect of ethical leadership in a survey of 150 employees.

Therefore, we expect that ethical climate also has an impact on job performance and proposed the
following hypothesis:

H1 Ethical climate has an indirect impact on job performance through mediating role of job
satisfaction & goal clarity

EMPIRICAL STUDIES ON ETHICAL CLIMATE AND JOB SATISFACTION

Several studies have examined the impact of different ethical climates on job satisfaction. The study of
[ CITATION Jar06 \l 1033 ] indicated that ethical climate resulted in lower role conflict and role ambiguity
and higher satisfaction.

[ CITATION Okp08 \l 1033 ] examine the impact of ethical climate on job satisfaction and organizational
commitment in Nigeria, and to discover the extent to which unethical practices among managers have
impacted upon managerial practices in Nigeria

[ CITATION Dan11 \l 1033 ] surveyed ethical climate on Job satisfaction in Iran‟s SMEs using [ CITATION
JOH93 \l 1033 ]Ethical Climate theory, and [ CITATION Spe85 \l 1033 ]job satisfaction Survey.

Thus, we will focus on this climate type in our research

H2- Ethical climate has a positive direct impact on job satisfaction

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EMPIRICAL STUDIES ON GOAL CLARITY & JOB PERFORMANCE [ CITATION And15 \l 1033 ]
Classic studies in the field and laboratory provide evidence that individuals working toward well-specified
goals performed better than those working with no goals or those who were encouraged to “do their best”
[ CITATION Dos79 \l 1033 ]; [ CITATION Iva76 \l 1033 ] ; [ CITATION Lat78 \l 1033 ]

Contemporary research [ CITATION Sei01 \l 1033 ] has revealed some aspects of goal clarity that may
lead to underperformance, the insights from early studies remains powerful. [ CITATION Ter76 \l 1033 ]
observed that employees working to achieve very specific goals tended to allocate more work time toward
the specific micro-tasks related to their goals. Similarly, clearly specified goals help managers evaluate
performance and
then render feedback [ CITATION Saw92 \l 1033 ] , and help employees self-regulate effort [ CITATION Lat91
\l 1033 ]. These causal mechanisms add to the general GST theory [ CITATION Loc11 \l 1033 ], which posits
that clear, difficult goals may lead to greater performance than no goals or imperatives to “do your best”
through directing action [ CITATION Loc70 \l 1033 ], enhancing effort [ CITATION Kah73 \l 1033 ],

Following classic Goal Setting Theory(GST), we will test the following hypothesis of the relationship
between goal clarity and performance:

H3 – There is a relationship between Goal Clarity and Job Performance

EMPIRICAL STUDIES ON JOB SATISFACTION & JOB PERFORMANCE

[CITATION Spr \l 1033 ] suggested that managers can improve employees’ job performance by applying
managerial strategies to increase job satisfaction and job motivation.

[ CITATION Che12 \l 1033 ]found that job performance in Taiwan was positively affected by job
involvement, job satisfaction, and internal marketing. [ CITATION Hir12 \l 1033 ] found there was a
positive relationship between job satisfaction and job performance in a survey of 335 respondents that
work in middle level of banking sector.

[ CITATION Iqb12 \l 1033 ] also found that job satisfaction has a positive impact on job performance in a
survey of 251 respondents from various universities. The previous studies have shown that job
performance was influenced by job satisfaction., so we propose the following hypotheses

H4- Job satisfaction has a positive direct impact on job performance

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Research Design
In this study, a descriptive type of survey design is used. Descriptive survey research design is the
systematic collection of data in standardized form from an identifiable population or representative

Data was collected from purposively sampled pharma manufacturing organization and 255 sample
employees were selected using simple random sampling technique. The survey was created on
QuestionPro and distributed online (due to global lockdown, other methods of data collection was not
feasible), however, 101 questionnaires were found properly filled and returned from the employees
who accounts 40% response rate

Respondent Profile
100 100
80% 74%
80%
60%
60%
40% 26% 37% 38%
40%
20% 23%
0%
20%
Mal 1% 2% 0%
0%
18- 25- 35- 45- 55- Abo

100%
Educational Qualification
80%
59%
60%

40%
25%
20% 8%
3% 5%
0%
0%

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 Job Role
1%
Executive/Senior
16% 19% Executive/Supervisor
Assistant Manager/Deputy Manager
Manager/Senior Manager
General Manager/AVP/Vice
President
Management/C-Level
Owner
Other
35% 30%

Function/Department
Others 6%
Supply Chain Management 5%
Strategy 3%
Finance 3%
IT 0%
Human Resources & Admin 46%
Customer Service 4%
New Product Development/Innovation 3%
Operations 19%
Marketing 1%
Sales 9%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Dependent Variable
The basis for measuring employee work/job performance as mentioned in the hypotheses development
is structured questionnaire of Individual job performance/work performance scale taken from
[ CITATION Koo \l 1033 ] which is validated and able to measure the overall performance of employee in
anywhere. The 18 items were answered on a 5-point Likert Scale from (1)- Very Low to (5) – Very High.

Independent Variable
The next part describes the measurement scales for the independent variable: Ethical climate.

The Ethical Climate Questionnaire used in the studies of Victor and Cullen contained 26 items[CITATION
JOH93 \l 1033 ] was adopted. The items were answered on a 6-point Likert Scale from (1)- Completely
False to (6) – Completely True.

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Mediating Variable
The mediating variables, goal clarity and job satisfaction are measured using the scales described in this
part

The items for team goal clarity are taken from the article of [ CITATION Lee91 \l 1033 ] and [ CITATION
Bip09 \l 1033 ]. The items were answered on a 5-point Likert Scale from (1)- Strongly disagree to (5) –
Strongly Agree

The items for Job Satisfaction are taken from Job Satisfaction Survey (JSS) [ CITATION Spe85 \l 1033 ] is
a questionnaire used to evaluate nine dimensions of job satisfaction related to overall satisfaction. This
instrument is well established among the other job satisfaction scales. In order to take the test, the
participants are asked to respond to 36 items, or 4 items for each of the nine sub-scales. The items were
answered on a 6-point Likert Scale from (1)- Disagree very much to (6) – Agree Very Much

After collecting the data (filled out questionnaires), these data was entered into a statistical
computer application (SPSS 18.0). The relationships among variables were assessed by factor analysis,
reliability, descriptive statistics and the proposed hypotheses could be tested using multiple linear
regression

ANALYSIS PLAN
WE performed exploratory factor analysis on SPSS program to identify number of factors that can be
used to represent relationships among sets of interrelated variables

BARLETT’s TEST OF SPHERICITY was used to test the hypos thesis that the co-relation matrix is identity
matrix. We looked for SIGNIFICANCE (less than 0.05) because we WANT the variables to be co-related

KMO- measure of sampling adequacy was used to compare the magnitudes of the observed correlation
co-efficients. Large KMO values are good because co-relations between pair of variables can be
explained by other variables. KMO = 0.731. If KMO is below 0.5, we don’t do factor analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure .731
of Sampling Adequacy.
Bartlett's Test of Approx. 718.755
Sphericity Chi-
Square
df 120
Sig. .000
Check the Significance at KMO & Bartlett’s Test is 0, which means at least one variable is valid; and
hence, we should proceed further.

Communalities Table showed extraction values > 0.30 (Refer to Annexures for Communalities Table)

ROTATION- using Varimax rotation. Maximum iterations for convergence changed to 70.

The purpose of rotation is to simplify the structure of the analysis, so that each factor will have nonzero
loadings for only some of the variables without affecting the communalities and the percent of variance

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explained. The most common method is ‘Varimax’ which minimizes the number of variables that have
high loadings on a factor

OPTIONS- “Suppress absolute values less than 0.40” will eliminate values from the output that we would
not need to interpret anyway, making the output of some analyses easier to read

Factor Analysis results indicated, a final 22 components in total. Out of 84 items with which we
proceeded, we removed items because of cross loading, unloading, misloading and arrived at 15
items. These 4 components were meaningful. (Please refer to Annexures for FA deletions of
contaminants

The 4 components explained variance of 64.63 (which is more than 50% for good factor solution)
  Extraction Sums of Squared
Initial Eigenvalues Loadings Rotation Sums of Squared Loadings
Componen % of Cumulative % of Cumulative % of Cumulative
t Total Variance % Total Variance % Total Variance %
1 4.640 29.003 29.003 4.640 29.003 29.003 3.668 22.927 22.927
2 3.115 19.468 48.470 3.115 19.468 48.470 2.575 16.095 39.022
3 1.557 9.730 58.200 1.557 9.730 58.200 2.377 14.858 53.880
4 1.030 6.435 64.635 1.030 6.435 64.635 1.721 10.755 64.635
5 .866 5.412 70.047            
6 .777 4.855 74.902            
7 .706 4.410 79.312            
8 .620 3.876 83.188            
9 .558 3.489 86.677            
10 .521 3.254 89.931            
11 .417 2.604 92.535            
12 .360 2.247 94.782            
13 .310 1.938 96.720            
14 .247 1.543 98.263            
15 .154 .960 99.223            
16 .124 .777 100.000            
Having obtained clear factor solutions, we performed Reliability test on each component separately and
found 4 components (EC, GC, JP and JS) to be reliable. Cronbach α =0.7 means items are reliable

1. Reliability: Ethical Climate

Cronbach α = 0.785 and individual item wise reliability (Corrected Item Total Correlation- CITC) > 0.35

Reliability Statistics

Cronbach's Alpha N of Items

.754 5

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 Item-Total Statistics
Scale Scale Cronbach's
Mean if Variance if Corrected Alpha if
Item Item Item-Total Item
Deleted Deleted Correlation Deleted
EC2 - The major responsibility for people in my 16.78 11.082 .442 .741
organization is to consider efficiency first.
EC5 - In my organization, people look out for each 16.70 10.192 .608 .676
other’s good.
EC12 - The most important concern is the good of all the 16.48 10.757 .597 .683
people in the organization.
EC16 - In my organization, our major concern is always 17.37 10.720 .534 .705
what is best for the other person.
EC26 - It is expected that you will always do what is right 15.75 12.412 .435 .739
for the customer and public.

2. Reliability: Goal Clarity

Cronbach α = 0.815 and individual item wise reliability (Corrected Item Total Correlation- CITC) > 0.35

Reliability Statistics
Cronbach's
Alpha N of Items
.815 3

Item-Total Statistics
Scale Scale
Mean if Variance Corrected Cronbach's
Item if Item Item-Total Alpha if Item
Deleted Deleted Correlation Deleted
GC2 - I have specific, clear goals to 8.14 2.687 .716 .692
aim for on my job
GC3 - If I have more than one goal to 7.98 3.171 .636 .777
accomplish, I know which ones are
most important and which are least
important
GC4 - I am encouraged to attain my 8.12 2.773 .652 .762
goals

3. Reliability: Job Performance

Cronbach α = 0.855 and individual item wise reliability (Corrected Item Total Correlation- CITC) > 0.35

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 Reliability Statistics

Cronbach's Alpha N of Items

.863 6

Item-Total Statistics
Scale Cronbach's
Scale Mean Varianc Corrected Alpha if
if Item e if Item Item-Total Item
Deleted Deleted Correlation Deleted
JP6 - I take on extra responsibilities 20.24 8.992 .626 .845
JP7 - I start new tasks myself, when my old ones are 20.30 8.798 .616 .847
finished
JP9 - I work at keeping my job knowledge up-to- 20.43 8.349 .762 .820
date
JP10 - I work up keeping my job skills up-to-date 20.45 8.614 .709 .831
JP11 - I come up with creative solutions to new 20.46 8.695 .591 .853
problems
JP13 - I actively participate in work meetings 20.22 9.062 .649 .842

4. Reliability: Job Satisfaction

Reliability Statistics
Cronbach's
Alpha N of Items
.849 2

Cronbach α = 0.849 and individual item wise reliability (Corrected Item Total Correlation- CITC) > 0.35

Item-Total Statistics
Cronbach's
Scale Mean Scale Corrected Alpha if
if Item Variance if Item-Total Item
Deleted Item Deleted Correlation Deleted
JS27 - I feel a sense of pride in doing my 4.70 1.303 .742 .a
job.
JS35 - My job is enjoyable. 5.00 1.051 .742 .a

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DATA ANALYSIS

The results of the statistical analysis of the data obtained in the study are presented in the tables below:

Descriptive Statistics
Std.
N Mean Deviation
Mean of Ethical Climate 100 4.1540 .80597
Mean of Goal Clarity 100 4.0400 .81137
Mean of Job Performance 100 4.0700 .58372
Mean of Job Satisfaction 100 4.8500 1.01130
Valid N (listwise) 100    

SUMMARY OF REGRESSION BETWEEN ETHICAL CLIMATE AND JOB PERFORMANCE.

Dependent Variable: Mean of Job Satisfaction

Model Summary
Model Adjusted R Std. Error of
R R Square Square the Estimate
1 .282 .079 .051 .56877

a. Predictors: (Constant), Mean of Job Satisfaction, Mean of

Ethical Climate, Mean of Goal Clarity

ANOVA
Model  
Mean
Sum of Squares df Square F Sig.
1 Regression 2.677 3 .892 2.758 .046
Residual 31.056 96 .323    
Total 33.732 99      

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Coefficients
Model Standardize
Unstandardized d Collinearity
Coefficients Coefficients Statistics
Toleranc
B Std. Error Beta t Sig. e VIF
1 (Constant) 3.319 .372 8.917 .000
Mean of Ethical -.060 .078 -.082 -.764 .446 .829 1.206
Climate
Mean of Goal .108 .083 .151 1.299 .197 .714 1.401
Clarity
Mean of Job .116 .068 .200 1.708 .091 .698 1.433
Satisfaction
a. Dependent Variable: Mean of Job Performance

Coefficients
Model Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Toleranc
B Std. Error Beta t Sig. e VIF
1 (Constant 3.937 .309 12.733 .000
)
Mean of .032 .073 .044 .437 .663 1.000 1.000
Ethical
Climate
a. Dependent Variable: Mean of Job Performance
Result showed that all variables of ethical climate had a low co-relation with Job Performance.

 Therefore, H1 which states Ethical climate has an indirect impact on job performance through
mediating role of job satisfaction & goal clarity is accepted

SUMMARY OF REGRESSION BETWEEN ETHICAL CLIMATE AND JOB SATISFACTION.

Dependent Variable: Mean of Job Satisfaction

Model Summary
Model
Std. Error of the
R R Square Adjusted R Square Estimate
  1 .372 .138 .130 .94354

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 ANOVA
Model Sum of
Squares df Mean Square F Sig.
1 Regression 14.004 1 14.004 15.731 .000a

Residual 87.246 98 .890

Total 101.250 99

a. Predictors: (Constant), Mean of Ethical Climate

b. Dependent Variable: Mean of Job Satisfaction

Coefficients
Model Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) 2.912 .498   5.849 .000    
Mean of Ethical.467 .118 .372 3.966 .000 1.000 1.000
Climate
a. Dependent Variable: Mean of Job Satisfaction

Result showed that all variables of ethical climate had a low co-relation with Job Satisfaction.
 Therefore, hypothesis two which states that there is a relationship between ethical climate
and job satisfaction is accepted.

SUMMARY OF REGRESSION BETWEEN GOAL CLARITY AND JOB PERFORMANCE.

Model Summary
Model Std. Error of the
R R Square Adjusted R Square Estimate
1 .224 .050 .040 .57180
a. Predictors: (Constant), Mean of Goal Clarity

ANOVAb
Model Sum of
Squares df Mean Square F Sig.
1 Regression 1.691 1 1.691 5.172 .025a
Residual 32.041 98 .327
Total 33.732 99
a. Predictors: (Constant), Mean of Goal Clarity
b. Dependent Variable: Mean of Job Performance

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Coefficients
Model Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) 3.419 .292 11.718 .000
Mean of Goal .161 .071 .224 2.274 .025 1.000 1.000
Clarity
a. Dependent Variable: Mean of Job Performance
Result showed that goal clarity had a low co-relation with Job Satisfaction.
 Therefore, hypothesis three which states that there is a relationship between Goal Clarity and
Job Performance is accepted.

SUMMARY OF REGRESSION BETWEEN JOB SATISFACTION AND JOB PERFORMANCE.

Dependent Variable: Mean of Job Performance

Model Summary
Model Std. Error of the
R R Square Adjusted R Square Estimate
  1 .246 .061 .051 .56864

ANOVAb
Model Sum of
Squares df Mean Square F Sig.
1 Regression 2.043 1 2.043 6.319 .014a
Residual 31.689 98 .323
Total 33.732 99
a. Predictors: (Constant), Mean of Job Satisfaction
b. Dependent Variable: Mean of Job Performance

Coefficients
Model Standardize
Unstandardized d
Coefficients Coefficients Collinearity Statistics
Std. Toleranc
B Error Beta t Sig. e VIF
1 (Constant) 3.381 .280   12.078 .000    
Mean of .142 .057 .246 2.514 .014 1.000 1.000
Job

19 | P a g e
 Satisfaction
a. Dependent Variable: Mean of Job Performance

Result showed that all variables of Job Satisfaction had a low co-relation with Job Performance .
 Therefore, hypothesis four which states that there is a relationship between job satisfaction &
job performance is accepted.

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IMPLICATION & RECOMMENDATIONS
An important implication of this study is that senior leadership and decision- makers can influence
overall job satisfaction and satisfaction with job variety, relationship with supervision, relationship with
co-workers and management policies by ensuring that the firm has a professional climate, a code to
ethics and a sound company policy that will ensure that all workers comply with the legal and
professional standard.

Our study indicates that ethical climate is predictor of number of important organizational outcomes like
job satisfaction and job performance. Our study supports the understanding that is worthwhile for
organizations to develop strategies to improve job satisfaction. A critical element of our findings is that
the impact of these strategies will be more effective when the employees are aware that
the company cares for them. [ CITATION Som11 \l 1033 ] suggested that employees whose supervisors
used constructive feedback had greater job satisfaction. Research also suggests that mangers can also
improve employees’ satisfaction by providing a good environment for employees learning ([ CITATION
Alo10 \l 1033 ]

Further Research
This research used descriptive survey design. Therefore, it will be good if following research in this area
employs longitudinal method in order to have deeper insights into ethical climate & job performance.

Also we studied employees from select pharma manufacturing organization in India, therefore further
research can include participants from other manufacturing organizations for effective findings

Due to time and resource constraints data was collected at a single point in time and through online
medium which does not allow changes in perception and attitudes over a period of time and get other
modes of data collection to have large responses.

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Annexures
Factor Analysis Deletions

FA Deletions Reason for deletion

EC1 - In my organization, people are mostly out for themselves. non loading
EC8 - Work is considered sub-standard only when it hurts the organization's interests non loading
EC15 - Everyone is expected to stick by organization rules and procedures. non loading
EC18 - Successful people in my organization go by the book non loading
EC22 - In my organization, people are guided by their own personal ethics non loading
JS2 - There is really too little chance for promotion on my job. non loading
JS4 - I am not satisfied with the benefits I receive. non loading
JS10 - Raises are too few and far between. non loading
JS14 - I do not feel that the work I do is appreciated. non loading
JP14 - I tend to complain about unimportant matters at work non loading
EC10 - In my organization, people protect their own interest above other considerations. Cross loading
EC11 - The most important consideration in my organization is each person’s sense of right
and wrong. Cross loading
EC14 - People are expected to comply with the law and professional standards over and
above other considerations. Cross loading
EC17 - People are concerned with the organization’s interests Cross loading
EC19 - The most efficient way is always the right way, in my organization. Cross loading
EC21 - Our major consideration is what is best for everyone in the organization. Cross loading
EC23 - Successful people in my organization strictly obey the organization policies Cross loading
EC24- In my organization, the law or ethical code of their profession is the major
consideration Cross loading
EC25 - In my organization, each person is expected, above all, to work efficiently Cross loading
JS1 - I feel I am being paid a fair amount for the work I do. Cross loading
JS3 - My supervisor is quite competent in doing his/her job. Cross loading
JS5- When I do a good job, I receive the recognition for it that I should receive. Cross loading

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JS7 - I like the people I work with.  
JS22 - The benefit package we have is equitable. Cross loading
JS25 - I enjoy my coworkers. Cross loading
JS29 - There are benefits we do not have which we should have. Cross loading
JP2 - My planning is optimal Cross loading
JP4 - I am able to separate main issues from side issues at work Cross loading
JP5 - I am able to perform my work well with minimal time and effort Cross loading
JP8 - I take on challenging work tasks, when available Cross loading
JP16 - I focus on the negative aspect a work situation, instead of on the positive aspects Cross loading
JP17 - I tend to speak with colleagues about the negative aspect of my work Cross loading
JS6 - Many of our rules and procedures make doing a good job difficult. -.499

JS8 - I sometimes feel my job is meaningless. -.540

JS9 - Communications seem good within this organization. .672

JS12 - My supervisor is unfair to me. -.572

JS15 - My efforts to do a good job are seldom blocked by red tape. -.488

JS16 - I find I have to work harder at my job because of the incompetence of people I work -.505
with.

JS18 - The goals of my organization are not clear to me. -.666

JS19 - I feel unappreciated by the organization when I think about what they pay me. -.622

JS23 - There are few rewards for those who work here. -.469

JS26 - I often feel that I do not know what is going on with the organization. -.587

JS32 - I don't feel my efforts are rewarded the way they should be. -.501

JS34 - There is too much bickering and fighting at work. -.546

JS36 - Work assignments are not fully explained. -.597

JP15 - I make problems greater than they are at work -.404

JP18 - I speak with people from outside the organization about the negative aspects of my -.448
work

EC20 - In my organization, people are expected to strictly follow legal or professional

standards. cross loading
JS21 - My supervisor shows too little interest in the feelings of subordinates. cross loading
JS30 - I like my supervisor. cross loading

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JP12 - I keep looking for new challenges in my job cross loading
EC6 - There is no room for one’s own personal morals or ethics in my organization. .873

GC1 - I understand exactly what is supposed to do on my job misloading

JP1 - I managed to plan my work so that it is done on time misloading
JP3 - I kept in mind the results that I have to achieve in my work misloading

EC4 - People are expected to do anything to further the organization's interests cross loading
EC7 - It is very important to follow strictly the organization's rules and procedures here.  
JS17 - I like doing the things I do at work. .844

JS33 - I am satisfied with my chances for promotion. .866

EC13 - The first consideration is whether a decision violates any law. cross loading
JS13 - The benefits we receive are as good as most other organizations offer cross loading
JS28 - I feel satisfied with my chances for salary increases. cross loading
EC3 - In my organization, people are expected to follow their own personal and moral beliefs. misloading
EC9 - Each person in my organization decides for himself what is right and wrong. misloading
JS24 - I have too much to do at work.  

JS11 - Those who do well on the job stand a fair chance of being promoted. misloading

JS20 - People get ahead as fast here as they do in other places.  misloading

24 | P a g e
 JOB SATISFACTION SURVEY
Paul E. Spector

Department of Psychology

University of South Florida

Copyright Paul E. Spector 1994, All rights reserved.

Disagree very much

PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT
COMES CLOSEST TO REFLECTING YOUR OPINION
ABOUT IT.

1 I feel I am being paid a fair amount for the work I do. 1 2 3 4 5 6

2 There is really too little chance for promotion on my job. 1 2 3 4 5 6

3 My supervisor is quite competent in doing his/her job. 1 2 3 4 5 6

4 I am not satisfied with the benefits I receive. 1 2 3 4 5 6

5 When I do a good job, I receive the recognition for it that I should receive. 1 2 3 4 5 6

6 Many of our rules and procedures make doing a good job difficult. 1 2 3 4 5 6

7 I like the people I work with. 1 2 3 4 5 6

8 I sometimes feel my job is meaningless. 1 2 3 4 5 6

9 Communications seem good within this organization. 1 2 3 4 5 6

10 Raises are too few and far between. 1 2 3 4 5 6

11 Those who do well on the job stand a fair chance of being promoted. 1 2 3 4 5 6

12 My supervisor is unfair to me. 1 2 3 4 5 6

13 The benefits we receive are as good as most other organizations offer. 1 2 3 4 5 6

14 I do not feel that the work I do is appreciated. 1 2 3 4 5 6

15 My efforts to do a good job are seldom blocked by red tape. 1 2 3 4 5 6

16 I find I have to work harder at my job because of the incompetence of 1 2 3 4 5 6

people I work with.

17 I like doing the things I do at work. 1 2 3 4 5 6

18 The goals of this organization are not clear to me. 1 2 3 4 5 6

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 Disagree very mcuh
PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT
COMES CLOSEST TO REFLECTING YOUR OPINION
ABOUT IT.
Copyright Paul E. Spector 1994, All rights reserved.

19 I feel unappreciated by the organization when I think about what they pay 1 2 3 4 5 6
me.

20 People get ahead as fast here as they do in other places. 1 2 3 4 5 6

21 My supervisor shows too little interest in the feelings of subordinates. 1 2 3 4 5 6

22 The benefit package we have is equitable. 1 2 3 4 5 6

23 There are few rewards for those who work here. 1 2 3 4 5 6

24 I have too much to do at work. 1 2 3 4 5 6

25 I enjoy my coworkers. 1 2 3 4 5 6

26 I often feel that I do not know what is going on with the organization. 1 2 3 4 5 6

27 I feel a sense of pride in doing my job. 1 2 3 4 5 6

28 I feel satisfied with my chances for salary increases. 1 2 3 4 5 6

29 There are benefits we do not have which we should have. 1 2 3 4 5 6

30 I like my supervisor. 1 2 3 4 5 6

31 I have too much paperwork. 1 2 3 4 5 6

32 I don't feel my efforts are rewarded the way they should be. 1 2 3 4 5 6

33 I am satisfied with my chances for promotion. 1 2 3 4 5 6

34 There is too much bickering and fighting at work. 1 2 3 4 5 6

35 My job is enjoyable. 1 2 3 4 5 6

36 Work assignments are not fully explained. 1 2 3 4 5 6

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 ETHICAL CLIMATE SURVEY
VICTOR & CULLEN

1. In my organization, people are mostly out for themselves.

2. The major responsibility for people in my organization is to consider efficiency first.
3. In my organization, people are expected to follow theft own personal and moral beliefs.
4. People are expected to do anything to further the organization’s interests.
5. In my organization, people look out for each other’s good.
6. There is no room for one’s own personal morals or ethics in my organization.
7. It is very important to follow strictly the organization’s rules and procedures
8. Work is considered sub-standard only when it hurts the organization’s interests
9. Each person in my organization decides for himself what is right and wrong.
10. In my organization, people protect their own interest above other considerations.
11. The most important consideration in my organization is each person’s sense of right and wrong.
12. The most important concern is the good of all the people in the organization.
13. The first consideration is whether a decision violates any law.
14. People are expected to comply with the law and professional standards over and above other
considerations.
15. Everyone is expected to stick by organization rules and procedures.
16. In my organization, our major concern is always what is best for the other person.
17. People are concerned with the organization’s interests—to the exclusion of
18. Successful people in my organization go by the book
19. The most efficient way is always the right way, in my organization.
20. In my organization, people are expected to strictly follow legal or professional standards.
21. Our major consideration is what is best for everyone in the organization.
22. In my organization, people are guided by theft own personal ethics.
23. Successful people in my organization strictly obey the organization policies
24. In my organization, the law or ethical code of theft profession is the major consideration.
25. In my organization, each person is expected, above all, to work efficiently.
26. It is expected that you will always do what is right for the customer and public.

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 INDIVIDUAL JOB PERFORMANCE SURVEY
KOOPMAN

1. I managed to plan my work so that it was done on time

2. my planning was optimal
3. I kept in mind the results that I had to achieve in my work
4. I was able to separate main issues from side issues at work
5. I was able to perform my work well with minimal time and effort
6. I took on extra responsibilities
7. I started new tasks myself, when my old ones were finished
8. I took on challenging work tasks, when available
9. I worked at keeping my job knowledge up-to-date
10. I worked up keeping my job skills up-to-date
11. I came up with creative solutions to new problems
12. I kept looking for new challenges in my job
13. I actively participate in work meetings
14. I complained about unimportant matters at work
15. I made problems greater than they were at work
16. I focused in the negative aspect a work situation, instead of on the positive aspects
17. I spoke with colleagues about the negative aspect of my work
18. I spoke with people from outside the organization about the negative aspects of my work

Goal Clarity Questionnaire

1. I understand exactly what is supposed to do on my job
2. I have specific, clear goals to aim for on my job
3. If I have more than one goal to accomplish, I know which ones are most important and which
are least important
4. I am encouraged to attain my goals

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