Kirti and Nisha Pawaria, International Journal of Research in Engineering, IT and Social Sciences,

ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 281-284

A Study to Analyze Organizational Climate of

Life Insurance Corporation
Kirti1 and Nisha Pawaria2
1
(Research Scholar, Deptt. of Commerce, MDU, Rohtak, India)
2
(Research Scholar, Deptt. of Commerce, BMU, Rohtak, India)
Abstract: In this ever changing competitive environment, the major challenge for any organization is to handle
various types of interpersonal and intrapersonal conflicts within the company or institute or it can be said that
actual conflict is between employees’ needs and organizational needs. The life Insurance Corporation of India
is the largest insurance company in India and is an Indian state owned insurance group with its multiple
products like life insurance, health insurance, investment management and mutual funds and is a major
contributor to the state’s economy. Hence, there is a need to study the organizational climate in LIC of India. It
is also endeavour to monitor the variables that affects the organizational climate.
Keywords: Development, environment, work satisfaction.

I. INTRODUCTION
Employees are the lifeline of any organization, as oxygen is very necessary for every human being,
similarly employees seems to be a vital organ for the smooth functioning in the organization. It is the only
human being who is responsible for the gaining of said objectives and goals as well as growth of the
organization. They are necessary to develop proper suitable environment in which all will work with sincerity
and dedication. Moreover the growth of an employee is the achievement of the organization and their failure is
the failure of the organization (Sacher, 2007, p.12) 1.
In the words of Joe Kelly, “climate may be thought of as the perception of the characteristics of the
organization”. Climate of an organization convey the message of work environment through the employees’
behaviour in terms of their performance. Climate of an organization is to be viewed as total system in the
organization whereas there may be some differences among different departments in the organization
(Brahmaiah, 2010)2. Various studies relate the climate to the acceptance of the organisation as a social system
because organizations are consist social values in the organization. It can also be seen as the state of good
relationships, trust and understanding among the members of the particular organisation. Therefore,
Organisational climate is characterised by the nature of internal policies, standards, values, ethics, relationships
and many more. Relationships does not only mean to the senior-subordinates relationships but also determined
by the interactions among goals and objectives of the organization, the organizational structure, the leadership
style, communication system, the procedure, the management and the behaviour of employees with each other
(Kamaraj, 1998)3.
Definitions
Table 1: Some Definitions of Organizational Climate are as follows:
AUTHORS YEAR DEFINITIONS
Forehand and 1964 Organizational climate is defined as a ”set of attributes and
Gilmer4 properties that (a) describe the organization and distinguish it
from other organizations, (b) are relatively enduring over time
and (c) affect the behaviour of employees in the organization”.
Litwin and 1968 Organizational climate is defined “a set of measurable attributes
Stringer5 of the work environment, perceived directly or indirectly by the
people who live and work in that environment, which influences
workers’ motivation and behaviour”.
Friendlander6 1969 Organizational climate may be defined ‘’as a relatively stable or
and Margulies on-going property of the organization which may release,
channel, facilitate or constrain an organization’s resources as
well as human resources”.
Baumgartel7 1971 Organizational climate may be defined as “a product of
managers’ practices, communication practices, and enduring and
systematic characteristics of the working relationship among
persons and divisions of any particular organization”.
(Source: Literature Review from numerous journals, articles and research papers).
On the basis of the above definitions and review of literature following characteristics are as following;

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Kirti and Nisha Pawaria, International Journal of Research in Engineering, IT and Social Sciences,
ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 281-284

Characteristics Of Organizational Climate

Batlis8 (1980, p. 234) says that organizational climate possesses four characteristics:
• Organizational climate is considered as a global approach which consists of employees from different
background and culture. And who are interacting with each other.
• It is not related with single dimension rather a multi-dimensional perspective, it is a multi-dimensional
variable.
• It can be considered as a mediating variable which influenced by organizational characteristics such as
interpersonal relationship and work activities, and, in turn influencing employees’ behaviour and job-related
perception.
After viewing all the above definitions, we may find some other characteristics also which are as
follows:
• A wide and multi-dimensional concept,
• Influence the employees behaviour,
• Reflects whole organization’s system, policies, environment,
• It possess unique characteristics in respect to the other organizations,
• Changes take place in the climate over a period of time.
Objectives of the study
Objectives are the important basic components and the foundation of research study, without which a
study never be proceed and completed. This provides simply a way to go ahead in the research study. Following
are the main objectives of the present study:
1. To analyze the organizational climate of Life Insurance Corporation.
2. To study the opinion of employees towards their working environment in Life Insurance Corporation.

II. RESEARCH METHODOLOGY

Research design: It is a process of conducting a study and collecting data for decision making. It includes
surveys, instruments, tools, methods, publication work, interviews and both present and past information.
Research design and research methodology both are different thing up to some extent. Research methodology
refers to the philosophical or theoretical aspect for conducting a study and research design answers the question
how do the actual practical part of the research. Researcher followed a descriptive research approach for the
present study. The study is conducted on a sample of 110 employees of 5 branches of LIC at Rohtak. A quota
sampling technique is used for study with the help of Yemen’s formula of sample selection. A semi structured
questionnaire with 15 statements was used to know the opinion of employees towards their organizational
climate.
Organisational Climate Statements
After an in-depth examination of the relevant literature and various measures (questionnaire) developed
by various scholars (Gani and Shah9, 2001; Joshi and Sharma10, 1997; Newman11, 1977; Sharma et al.12, 2012)
regarding organisational climate, finally, researcher was followed a standard questionnaire which was developed
by Prof. B.S. Bhatia (Punjabi University) and Prof. Vohra (Haryana Institute of Public Administration) on
organizational climate. This particular standard questionnaire adopted for collecting the data as it contained
maximum statements of organizational climate i.e 45 statements, and fulfilled our requirement of collecting data
from concerned organization. The validity of this standard questionnaire has already been tested. The
questionnaire included 45 statements on 15 factors which can affect the climate of an organization.
But as per our study requirement, we modify this standard questionnaire and select only 15 statements
of organizational climate. Hence, the researcher has adopted a semi-structured questionnaire.
Limitations of study
• Since, present study is confined to the LIC employees of Rohtak district only; hence the results may not be
applicable to all the employees of LIC in India or outside India.
• Incomplete and inadequate information with respect of some statements asked could not be avoided.
• In some cases employees were not truly respond of questions because of fear of position and lack of
knowledge.
• The present study is confined to collected primary and available secondary data.

III. ANALYSIS AND INTERPRETATION

Variables regarding Organizational Climate: In this Section, an analysis and interpretation is made on the
organizational climate of all the branches of LIC, Rohtak.
RO: Findings pertaining to the first and second research objective i.e, to analyze the organizational climate of
Life Insurance Corporation of India and to study the views of employees towards their organizational climate.
Descriptive Statistical Analysis: illustrates the findings of descriptive statistical analysis based on mean and
standard deviation and the responses have been measured on 5-point Likert-Scale.
Items in the table;
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N= total no. of respondents for each statement; X= mean value of each statement
S.D= standard deviation
Responses for each statement are measured on the 5 point Likert- Scale;
SA= strongly agree; A= agree; N= neutral; DA= disagree; SDA= strongly disagree
(ANALYSIS OF ORGANIZATIONAL CLIMATE)
Table2: Responses of LIC employees with respect to organizational climate
S. STATEMENTS N X S.D SA A N D SDA
N
O.
1. It is always easy to know 110 1.65 0.88 60 36 6 8 0
that who has the authority (54.5%) (32.7%) (5.5%) (7.3%)
to take some of the
decisions in this
organization.
2. There is good atmosphere 110 1.76 0.72 39 62 7 0 2
in this organization. (35.5%) (56.3%) (6.4%) (1.8%)
3. Appropriate rules and 110 1.90 0.80 38 47 22 0 3
regulation are set by the (34.5%) (42.7%) (20.1%) (2.7%)
organization.
4. The philosophy of the 110 2.22 1.19 32 44 21 7 6
organization promotes self- (29.1%) (40%) (19.1%) (6.4%) (5.5%)
problem solving capability
of the employees.
5. Adequate information 110 1.95 0.72 30 56 23 0 1
regarding policies/ (27.3%) (50.9%) (20.9%) (0.9%)
programs and other issues
are provided to all
employees at the right time.
6. Relationship between 110 1.86 0.74 38 50 21 1 0
seniors and their (34.5%) (45.5%) (19.1%) (0.9%)
subordinates in our
organization is warm and
friendly.
7. Seniors initiate risk in 110 2.02 0.95 37 42 24 5 2
welcoming innovative ideas (33.6%) (38.2%) (21.8%) (4.5%) (1.8%)
of subordinates.
8. Seniors always encourage 110 2.18 0.92 24 56 16 14 0
their subordinates to think (21.8%) (50.9%) (14.5%) (12.7%)
about their development.
9. There is no excessive 110 2.21 0.98 26 49 23 9 3
pressure in the organization. (23.6%) (44.5%) (20.9%) (8.2%) (2.7%)
10. We get feedback from 110 2.16 0.92 28 47 24 11 0
leaders regarding our (25.5%) (42.7%) (21.8%) (10.0%)
performance time to time.
11. Employees are always 110 2.10 0.90 32 41 30 7 0
ready to work for their (29.1%) (37.3%) (27.3%) (6.4%)
seniors.
12. There is also a system of 110 2.14 0.91 31 40 31 8 0
informal interaction among (28.2%) (36.4%) (28.2%) (7.3%)
employees regarding
working of the
organization.
13. Employees here are 110 2.19 0.99 29 44 28 5 4
generally support to each (26.4%) (40.0%) (25.5%) (4.5%) (3.6%)
other.
14. Job performance of 110 2.14 0.98 36 32 32 10 0
employees is rewarded as (32.7%) (29.1%) (29.1%) (9.1%)
their promotion.

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 Kirti and Nisha Pawaria, International Journal of Research in Engineering, IT and Social Sciences,
ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 281-284

15. There is a sound grievance 110 2.17 0.88 33 27 48 2 0

handling procedure that (30.0%) (24.5%) (43.6%) (1.8%)
tells employees how to deal
if they have a grievance.
(Source: primary survey i.e., questionnaire)
Table2 shows that no. of respondent, mean, frequency, percentage and standard deviation of
organizational climate in LIC branches of Rohtak district and measuring employees views regarding the
organizational climate variables which were identified in the primary survey and the respondents responses are
scored.
IV. FINDINGS
Table2 depicts the mean scores of organizational climate statements and frequency, percentage of
responses of managers and employees of Life Insurance Corporation of India, Rohtak. The analysis of the data
reveals that overall responses regarding organizational climate statements lies between agree and neutral. Most
of the respondents were agree that the overall organizational climate is good but some of the respondents were
neutral regarding some aspects of organizational climate. The mean score of each statement is nearest to agree
which means employees are satisfied with present organizational climate. Most of the respondents agree that
they are working in good atmosphere with better infrastructural facilities and getting proper support, cooperation
and feedback from their seniors. The study finds that both executive and non-executive member of the LIC are
happy with the organizational climate which leads to increase satisfaction, high commitment and better
performance of employees.
Standard deviation is the measure of dispersion of a set of data from its mean value. A low standard
deviation means that most of the responses are very close to the average and a high standard deviation means
that the values are spread out. In this research study most of the respondents have same views regarding
organizational climate statements. The table no.2 shows that standard deviation of each statement is less than its
mean value which indicates that the data is not spread out. Standard deviation of maximum statements is less
than 1 which means there is a very low deviation which indicates common views regarding organization. But for
the some statements standard deviation is greater than 1 which indicates different views regarding
organizational climate of LIC.

V. SUGGESTIONS AND RECOMMENDATIONS

 It is examined that most of the respondents said that they got frustrated if the rules, regulations and policies
in the organization are unclear and ambiguous, and not same for all. So, it is suggested that rules,
regulations and policies of the organization should be clear and same for all.
 It is suggested that a healthy environment must be created in the organization where employees enjoy their
work and go home without any tension of workplace.
 The research further revealed that the majority of the employees felt that team spirit affects the work
performance. Hence, the focal point should be given attention to find out those factors that increase team
spirit and feeling of cooperation among group members.
 Further, it is apparent from the research that majority of the respondents felt that the climate of their
organization is good. It is further suggested that an efforts should made by organization to convert the good
organizational climate into excellent which helps employees in achieving greater job satisfaction.

VI. REFRENCES
[1] Sacher, A. (2007). Influence of organization climate on managerial effectiveness in pharma industry. Ph.D thesis, University HNB Garhwal.
[2] Brahmaiah, C. (2010). An empirical study on organizational climate and job satisfaction in TTD. Ph.D thesis, Sri Venkaeswara University,
Tirupati.
[3] Kamaraj, S.P. (1998). A study on organizational climate, job involvement, job anxiety and job alienation of bank employees. Ph.D thesis, Bharathir
university, Coimbatore.
[4] Forehand, G.A. & Gilmer, B. (1964). Environmental variation in studies of organizational behaviour. Psychological Bulletin, 62 (6), 361-382.
[5] Litwin, G.H. & Stringer, R.A. (1968). Motivation and organizational climate, Division of Research, Graduate School of Business Administration,
Harvard University, Boston, MA.
[6] Friedlander, F. & Margulies, N. (1969). Multiple impacts of organisational climate and individual values systems upon job satisfaction. Personnel
Psychology, 55, 287-295.
[7] Baumgartel, H. (1971). The penetration of modern management technology and organisational practices in Indian business organisations. Indian
Administrative and Management Review, 3.
[8] Batlis, N. (1980). The effect of organizational climate on job satisfaction, anxiety and propensity to leave. Journal of Psychology, 104, 233-246.
[9] Gani, A., & Shah, F.A. (2001). Correlates of organisational climate in banking industry. Indian Journal of Industrial Relations, 36(3), 301-322.
[10] Joshi, R.J., & Sharma, B.R. (1997). Determinants of managerial job satisfaction in a private organisation. Indian Journal of Industrial Relations,
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[11] Newman, J.E. (1977). Development of a measure of perceived work environment (PWE). The Academy of Management Journal, 20(4), 520-534.
[12] Sharma, B.R., Srivastava, V.N., Nlngthoujam, S. (2012). Job involvement as a key component of work motivation: Search for Predictors. The Indian
Journal of Industrial Relations, 48(2), 325-340.

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