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The study aimed at determining the level of Organizational Climate (OC) as perceived by the civil servants and finding out whether there is meaningful relationship between OC and Organizational effectiveness (OE). A standardised OC measurement questionnaires developed by Patterson et al (2005) based on Competing Values Model (CVM) and instrument of Speier & Venkatesh (2002) were used in collecting data. Hence, 348 questionnaires booklets were distributed to 6 public organizations in Amhara National Regional State (ANRS) and 260 questionnaires were returned, with an effective response rate of 75%. The collected data was analyzed using parametric statistical tools to test the hypotheses in SPSS. To this end, multiple linear regressions, Pearson’s Product-Moment Correlation Coefficients, Independent-samples t-test, and One-way ANOVA was adopted....
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42
EMPLOYEES’ PERCEPTION OF ORGANIZATIONAL CLIMATE
AND ITS IMPLICATIONS FOR ORGANIZATIONAL
EFFECTIVENESS IN AMHARA REGIONAL
PUBLIC SERVICE ORGANS
By
Mesfin Raji Kiltu
Project submitted in partial fulfilment for the award of the Degree of
EXECUTIVE MASTER OF BUSINESS ADMINISTRATION
Bahir Dar University, College of Business and Economics
Department of Management
Bahir Dar
June 2012
42
EMPLOYEES’ PERCEPTION OF ORGANIZATIONAL CLIMATE
AND ITS IMPLICATIONS FOR ORGANIZATIONAL
EFFECTIVENESS IN AMHARA REGIONAL
PUBLIC SERVICE ORGANS
By
Mesfin Raji Kiltu
Student ID Number: CBE/129/03
Project submitted in partial fulfilment for the award of the Degree of
EXECUTIVE MASTER OF BUSINESS ADMINISTRATION
Bahir Dar University, College of Business and Economics
Bahir Dar
June 2012
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
iii
DECLARATION
I hereby declare that this Project Report titled “Employees’ perception of
organizational climate and its implications for organizational
effectiveness in Amhara regional public service organs” is
submitted by me to the College of Business and Economics, Department of
Business Management, Bahir Dar University. It is a bonafide work undertaken
by me and it is not submitted to any other University or Institution for the
award of any degree diploma / certificate or published any time before.
Mesfin Raji Kiltu Signature
------------------------------------ --------------------------
Date ……………………………..
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
iv
CERTIFICATION
This is to certify that the Project Report title “Employees’ perception of
organizational climate and its implications for organizational
effectiveness in Amhara regional public service organs” is
submitted in partial fulfilment for the award of EMBA Programme of
Department of Business Management, College of Business and Economics,
Bahir Dar University, was carried out by Mr. Mesfin Raji Kiltu under our
guidance. It has not been submitted to any other University or Institution for
the award of any degree/diploma/certificate.
Principal Advisor: Yitbarek Takele (PhD) Bair Dar University College of Business and Economics Department of Management Signature Date
……………………………. ……………………….
Co- Advisor: Demeke Gadissa (MA) Bair Dar University College of Business and Economics Department of Management Signature Date
…………………………….. ………………………….
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
v
BOARD OF EXAMINERS
BAHIRDAR UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
EMPLOYEES’ PERCEPTION OF ORGANIZATIONAL CLIMATE
AND ITS IMPLICATIONS FOR ORGANIZATIONAL
EFFECTIVENESS IN AMHARA REGIONAL
PUBLIC SERVICE ORGANS
BY
MESFIN RAJI KILTU
Approved by the Board of Examiners:
Advisor Signature
…………………………………………….. ………………………..
External Examiner Signature
-------------------------------------- ---------------------
Internal Examiner Signature
-------------------------------------- --------------------
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
vi
ABSTRACT
The study aimed at determining the level of Organizational Climate (OC) as
perceived by the civil servants and finding out whether there is meaningful
relationship between OC and Organizational effectiveness (OE). A standardised
OC measurement questionnaires developed by Patterson et al (2005) based on
Competing Values Model (CVM) and instrument of Speier & Venkatesh (2002)
were used in collecting data. Hence, 348 questionnaires booklets were distributed
to 6 public organizations in Amhara National Regional State (ANRS) and 260
questionnaires were returned, with an effective response rate of 75%. The collected
data was analyzed using parametric statistical tools to test the hypotheses in
SPSS. To this end, multiple linear regressions, Pearson’s Product-Moment
Correlation Coefficients, Independent-samples t-test, and One-way ANOVA was
adopted.
Overall, it was found that (a) the independent aggregate variables; Human
Relations Values (HRV) and Open Systems Values (OSV) positively & significantly
predicted the dependent variable (OE) and 32.5% of the variation in OE is
explained by HRV & OSV combined on the half segment of the Competing Values
Model (CVM); (b) the dimensions Integration, Involvement, Supervisory Support,
Training and Welfare have shown significant positive correlation with their
respective HRV domain of OC; (c) the dimensions Innovation & Flexibility,
Outward Focus, and Reflexivity have shown significant positive correlation with
their respective OSV domain of OC; and (c) there is no significant difference
exhibited in employees gender, tenure, education level, and work processes in
terms of employees perception of OC and OE. On other hand, there is significant
difference found in employees’ perception in the type of organizations in terms of
OE and OSV of the OC in which nine (20%) out of 45 tests conducted revealed
statistically significant differences in the perception of organizational climate
between organizations. However, with regard to HRV, no significance difference
observed in employees’ perception across public organizations.
The research results will have implications for policy makers and future
researches in that it might contribute for a fundamental improvement in
efficiency and performance of organizations and reduced turnover of employees.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
vii
ACKNOWLEDGEMENTS
I am extremely grateful to my supervisors Dr Yitbarek Takele and Mr Demeke
Gaddissa for their guidance and continuous follow up in the entire process of
the thesis work without which this thesis could not have been completed.
I am also grateful for the Amhara National Regional Government for providing
me the opportunity to participate on the study program, staff of Amhara
Management Institute and coordinator of this especial post graduate study
program in EMBA at BDU who made the program run & successfully
completed.
I wish to thank all those who contributed directly and indirectly to this study,
and helped me conclude this research project. In particular the following
individuals deserves worth to be mentioned on facilitating data collection
process: Mr Kebede Yimam and Mr Sileshi Kume from Bureau of Environment
Protection & Land Administration; Mr Tefera Feyessa, Mr Fanta Moges & Mr
Dagnew Asmare from Bureau of Education; Mr Tilahun Arega & Mr Getahun
Ayalew from Bureau of Technical & Vocational Training; Mr Birhanu Gebre, Mr
Kassahun Molla, & Mr Adamu Bogalle from Bureau of Culture Tourism & Parks
Development; Mr Gared Legesse & Mr Chilot Amare from Office of General
Auditor; and finally, Mr Ashagrie Zewdie from Bureau of Women, Youth &
Children Affairs.
At Last but not least, my sincere thank goes to Mr Tefera Tegegne for
proofreading my manuscript and Ms Hizbalem Kebede for her unreserved
secretarial support she provided to me not only for my thesis but throughout the
learning process.
I reserve my final gratitude for my caring family, my wife Martha Desalegn and
my son, Biniyam. They have given me so much motivation, support and
encouragement, together with their love, patience, and the acknowledged
sacrifice of quality family time during my EMBA course. This dissertation
belongs more to them than to me.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
viii
ACRONYMS
ANRS
BoCS
BoCTPD
BoE
BoEPLA
BoFED
BoTVT
BoWYCA
BPR
CSA
CSRP
CVM
GTP
HRV
OC
OE
OGADT
OSV
PSCAP
Amhara National Regional State
Bureau of Civil Service
Bureau of Culture Tourism & Parks Development
Bureau of Education
Bureau of Environment Protection & Land Administration
Bureau of Finance Economic Development
Bureau of Technical & Vocational Training
Bureau of Women, Youth & Children Affairs
Business Process Reengineering
Central Statistics Agency
Civil Service Reform Program
Competing Values Model
Growth Transformation Plan
Human Relations Values
Organizational Climate
Organizational Effectiveness
Office of General Auditor
Open Systems Values
Public Service Capacity Building Program
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
ix
TABLE OF CONTENTS
Contents Page DECLARATION .................................................................................... iii
CERTIFICATION .................................................................................. iv
BOARD OF EXAMINERS ...................................................................... v
ABSTRACT ........................................................................................... vi
ACKNOWLEDGEMENTS .....................................................................vii
ACRONYMS ......................................................................................... viii
TABLE OF CONTENTS ......................................................................... ix
LIST OF TABLES ................................................................................ xiii
LIST OF FIGURES .............................................................................. xiii
LIST OF APPENDICES ........................................................................ xiv
CHAPTER I - THE PROBLEM AND ITS APPROACH ........................... 1
1.1. BACKGROUND OF THE STUDY ............................................................... 1
1.2. STATEMENT OF THE PROBLEM ............................................................. 7
1.3. OBJECTIVES ........................................................................................... 9
1.4. RESEARCH QUESTIONS ....................................................................... 10
1.5. RESEARCH DESIGN & METHODOLOGY ................................................ 10
1.5.1 Nature and Sources of Data ............................................................. 10
1.5.2. Sampling technique & sample size Determination .............................. 11
1.5.3. Method of Data collection ................................................................ 14
1.5.4. Method of Data analysis .................................................................. 16
1.5.5. Definitions and explanation of terms ................................................ 17
1.5.6. Validity & Reliability Tests ............................................................... 19
1.5.7. Variables of the study and Conceptual framework ............................. 21
1.5.8. Research hypotheses ........................................................................ 22
1.6. SIGNIFICANCE OF THE STUDY ............................................................. 23
1.7. SCOPE OF THE STUDY .......................................................................... 24
1.8. LIMITATIONS OF THE STUDY .............................................................. 25
1.9. ORGANIZATION OF THE PAPER ........................................................... 27
CHAPTER II – REVIEW OF RELATED LITERATURE ....................... 28
2.1. INTRODUCTION ................................................................................... 28
2.2. THEORETICAL FRAMEWORK ............................................................... 28
2.2.1. Overview ........................................................................................ 28
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
x
2.2.2. Definitions of Organizational Climate ............................................... 30
2.2.3. The emergence of Competing Values Model ....................................... 31
2.2.4. The link between Competing Values Model and Organizational Climate35
2.2.5. The relationship of Organizational Climate and Culture ..................... 36
2.2.6. Importance of Organizational Climate .............................................. 39
2.2.7. Factors affecting Organizational Climate .......................................... 41
2.3. CRITICAL REVIEW OF EMPIRICAL STUDIES ........................................ 44
2.3.1. Organizational Climate and Organizational Effectiveness .................. 44
2.3.2. Validation of instruments ................................................................ 46
CHAPTER III – OVERVIEW OF THE ANRS ...................................... 47
3.1. INTRODUCTION ................................................................................... 47
3.2. DEMOGRAPHIC SITUATION ................................................................. 47
3.3. NATURAL BEAUTY ............................................................................... 47
3.4. ECONOMIC ACTIVITY ........................................................................... 48
3.5. HUMAN RESOURCE ............................................................................. 48
3.6. THE CIVIL SERVICE REFORM............................................................... 49
3.6.1. The Public Service Capacity Building Program .................................. 49
3.6.2. Business Process Reengineering ....................................................... 50
CHAPTER IV: DISCUSSION AND ANALYSIS .................................... 52
4.1. INTRODUCTION ................................................................................... 52
4.2. DESCRIPTIVE STATISTICS: AN OVERVIEW ........................................... 52
4.2.1. Demography of Respondents............................................................ 53
4.2.1.1. Gender ..................................................................................... 53
4.2.1.2. Business Processes .................................................................... 53
4.2.1.3. Education................................................................................. 54
4.2.1.4. Tenure ..................................................................................... 55
4.2.2. Descriptive Statistics ....................................................................... 55
4.2.3. Summary ....................................................................................... 60
4.3. VALIDITY ANALYSIS ............................................................................. 60
4.3.1. Human Relation Values ................................................................... 61
4.3.1.1. Integration ............................................................................... 62
4.3.1.2. Involvement ............................................................................. 63
4.3.1.3. Supervisory Support ................................................................. 64
4.3.1.4. Emphasis on Training ............................................................... 64
4.3.1.5. Welfare .................................................................................... 65
4.3.2. Open System Values ........................................................................ 65
4.3.2.1. Innovation & Flexibility ............................................................. 66
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
xi
4.3.2.2. Outward Focus ......................................................................... 67
4.3.2.3. Reflexivity ................................................................................ 67
4.3.3. Organizational Effectiveness ............................................................ 68
4.4. RELIABILITY ANALYSIS ....................................................................... 69
4.4.1. Human Relations Values .................................................................. 70
4.4.1.1. Integration ............................................................................... 70
4.4.1.2. Involvement ............................................................................. 71
4.4.1.3. Supervisory Support ................................................................. 71
4.4.1.4. Emphasis on Training ............................................................... 71
4.4.1.5. Welfare .................................................................................... 72
4.4.2. Open Systems Values ....................................................................... 72
4.4.2.1. Innovation & Flexibility ............................................................. 72
4.4.2.2. Outward Focus ......................................................................... 73
4.4.2.3. Reflexivity ................................................................................ 73
4.4.3. Organizational Effectiveness ............................................................ 73
4.5. HYPOTHESIS TESTING ......................................................................... 74
4.5.1. Testing of Hypothesis One (effects between variables) ........................ 74
4.5.1.1. Nature & Strength of the Effect .................................................. 75
4.5.1.2. Explanation of the hypothesis .................................................... 77
4.5.2. Testing of Hypothesis Two (relationships between variables) ............. 78
4.5.2.1. Nature & Strength of Relationship ............................................. 78
4.5.2.2. Explanation of the hypothesis .................................................... 80
4.5.3. Testing of Hypothesis Three (relationships between variables) ........... 81
4.5.3.1. Nature & Strength of Relationship ............................................. 81
4.5.3.2. Explanation of the hypothesis .................................................... 82
4.5.4. Testing of Hypothesis Four (difference between gender) ..................... 84
4.5.4.1. Nature & Strength of Difference ................................................. 84
4.5.4.2. Explanation of the hypothesis .................................................... 85
4.5.5. Testing of Hypothesis Five (difference between tenure) ...................... 86
4.5.5.1. Nature & Strength of Difference ................................................. 86
4.5.5.2. Explanation of the hypothesis .................................................... 87
4.5.6. Testing Hypothesis Six (difference between education level) ............... 88
4.5.6.1. Nature & Strength of Difference ................................................. 88
4.5.6.2. Explanation of the hypothesis .................................................... 89
4.5.7. Testing Hypothesis Seven (difference between organization type) ....... 89
4.5.7.1. Nature & Strength of Difference ................................................. 90
4.5.7.2. Explanation of the hypothesis .................................................... 91
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
xii
4.5.8. Testing of Hypothesis eight (difference between work groups) ............ 92
4.5.8.1. Nature & Strength of Difference ................................................. 92
4.5.8.2. Explanation of the hypothesis .................................................... 93
CHAPTER V – SUMMARY, CONCLUSIONS & RECOMMENDATIONS ....................................................................... 95
5.1. INTRODUCTION ................................................................................... 95
5.2. SUMMARY ............................................................................................ 95
5.3. CONCLUSION ..................................................................................... 102
5.4. IMPLICATIONS AND RECOMMENDATIONS ........................................ 105
5.4.1. Implications for research ............................................................... 105
5.4.2. Recommendations for future research ............................................ 106
REFERENCES ................................................................................... 108
APPENDICES .................................................................................... 116
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
xiii
LIST OF TABLES
Table 1-1: Sample Selection & Distribution for organizations and respondents .......... 14
Table 2-1: Distinguishing Factors of the two approaches of the CVM ........................ 34
Table 2-2: Research Summary Made on OC by various researchers .......................... 42
Table 4-1: Descriptive Statistics for Gender of Respondents ..................................... 53
Table 4-2: Descriptive Statistics for Work processes of Respondents ........................ 54
Table 4-3: Descriptive Statistics for Education of Respondents ................................ 55
Table 4-4: Descriptive Statistics for Tenure of Respondents ..................................... 55
Table 4-5: Descriptive Statistics for Sub-scales of HRV ........................................... 57
Table 4-6: Descriptive Statistics for Sub-scales of OSV ............................................ 58
Table 4-7: Descriptive Statistics for HRV, OSV and OE ........................................... 59
Table 4-8: Case wise diagnostics of constructs ........................................................ 60
Table 4-9: Coefficients Result ............................................................................... 75
Table 4-10: Model Summary for the Strength of Relationship .................................. 77
Table 4-11: Pearson Correlations of dimensions with Human Relations Values .......... 79
Table 4-12: Pearson Correlations of dimensions with Open Systems Values .............. 82
Table 4-13: Independent-Samples T-test for Gender ............................................... 85
Table 4-14: One-Way Independent ANOVA test for Tenure ..................................... 87
Table 4-15: One-Way Independent ANOVA test for Education level.......................... 88
Table 4-16: One-Way Independent ANOVA test for Organization Type ..................... 90
Table 4-17: Strength of difference for organization types ......................................... 91
Table 4-18: Independent-Samples T-test between for Work Processes ...................... 93
LIST OF FIGURES
Figure 1-1: Sampling Frame Distribution based on Performance of Organizations ..... 13
Figure 2-4: Research Model Adapted from Natural System Model of CVM ............... 22
Figure 2-1: The Competing Values Framework ....................................................... 32
Figure 2-2: The Alternative Competing Values Framework ...................................... 34
Figure 2-3: The CVF and Culture .......................................................................... 38
Figure 4-1: Relationship between HRV and OSV on Organizational Effectiveness ..... 75
Figure 4-2: Relationships of Dimensions of OC with HRV ....................................... 79
Figure 4-3: Relationships of Dimensions of OC with OSV ........................................ 82
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
xiv
LIST OF APPENDICES
APPENDIX- A: List of Public Institution used for Sampling of Respondents ........... 116
APPENDIX- B: Determination of Respondents Sample ........................................ 117
APPENDIX- C: Questionnaire of the Study .......................................................... 118
APPENDIX- D: SPSS Chart Outputs of all Variables ............................................. 121
APPENDIX- E: Factor Analysis for Multifactor & Single factor structures ............... 132
APPENDIX- F: Item Loading for the Single Factor for HRV & OSV ........................ 135
APPENDIX- G: Item Loading for the Single Factor for Sub-scales of HRV & OSV .... 136
APPENDIX- H: Reliability Statistics for all Variables ............................................ 137
APPENDIX- I: SPSS Outputs of Regression Charts ............................................... 141
APPENDIX- J: Homogeneity test of Variance for Grouping Variable ...................... 142
APPENDIX- K: Suggestion of Intervention Strategies by Respondents ................... 143
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
1
CHAPTER I - THE PROBLEM AND ITS APPROACH
1.1. BACKGROUND OF THE STUDY
The environment of the early twentieth century was considerably more stable
and predictable than today’s. That is why Thomas (2009:19-20) stress the need
for strong sense of purpose by organizations and allow workers to take active
responsibility for handling more and more of the uncertainties involved in the
accomplishment of their purposes. As many of today’s businesses continue to
struggle to survive or remain competitive, it becomes important for managers to
better understanding of the factors that influence employees and important
employee-oriented work outcomes (Allison & Kaye 2005). Therefore,
individuals’ perceptions provide a starting framework for perceiving the
organization's current situation.
The growing significance placed on understanding of employees and
their behaviour within the organization has produced a great deal of interest in
investigating employees perceptions of climate within the organization (Riggle
2007) especially, at times when significant change is taking place. In our society,
we spend quite a bit of time in either public institutions, business enterprises, or
religious institutions. Therefore, the environment surrounding the individual
bears significant influence personally and professionally.
From human behaviour perspective, we learnt that people have their own
perceptions, feelings and attitudes towards the organisation. Vijayakumar
(2007) argued that climate in an organization evolves out of collective
perceptions of employees on various aspects of the organizational work life and
stressed organizational climate as indisputably a major contributing factor for
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
2
changing employees’ attitudes and behaviour towards superior job performance
and satisfaction. Hence, it is understandable that a person perception shapes his
attitudes to behave in a particular way. In fact, what does “perception” is all
about? How do it impart on factors of individual and group behaviours and
influence organizational effectiveness? These are the keenly awaiting answers
from the nomenclature of management theories.
According to Robbins (2004), perception can be defined as ‘a process by
which individuals organise and interpret their sensory impressions in order to
give meaning to their environment’ based on their perception of what reality is,
not on reality itself. Of course, perception affects our working relationships in
many ways relating to the factors of individual, group or organisational
behaviour. For example, based on the perceiver, context and target we may have
the perception that the management under which we are working are no good at
managing the job. Therefore, we may tend to avoid working with them, in fear of
held responsible for their failures, and in doing so, affecting our working
relationship with work environment, and ultimately, the effectiveness and
efficiency of the organisation.
Employee perceptions of organizational climate (OC) and work
experiences have become one of the most researched aspects of management.
According to Schneider & Snyder (1975) each individual perceives or
conceptualizes his organization in any number of ways, depending upon the
context and the set of information about the organization which is operative for
that individual. In this regard, climate is the employees’ perception of how it
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
3
feels to work in the unit, and includes specific aspects of the environment that
directly affect people's ability to get the job done (Mullins 2005).
The difference in perception is explained by Doherty & Horne (2002) as
it might be because of missing, or misconstruing, some of the stimuli since a
person’s perception is the way they select, organize and interpret stimuli.
Therefore, just as the perceptions of the individual are at the centre of any
behavioural intervention in OC, so are the perceptions of the characteristics of
the organization, by the members of the organization, central to the diagnosis of
organization's problems and dysfunctions. This in turn will lead us in
contemplating and understanding of how the OC as perceived by employees in
public sectors is antecedent of the organization’s effectiveness.
Managers in public sectors so far have concentrated on accountability
and high performance and have sought to restructure bureaucratic agencies,
redefine organizational missions, streamline organizational processes, and
decentralize decision-makings. Two of the more significant shifts in the 21st
century have been the increased attention to the delivery of public services on
the one hand, and greater decentralization of responsibility for these services on
the other (Ahmad et al. 2005). These facets of the service delivery have brought
about much attention in public sectors to be more accountable and meet the
expectations of the citizens.
Arguments on adopting some limited new forms of commercial
principles that may improve service delivery like outsourcing of some sections of
an organisation’s activities in security, cleaning and property management
could have a significant impact on changing the routinely entrenched mode of
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
4
service delivery (K. Brown et al. 2000). Such kind of collaboration at their face
value could be advantageous for citizens’ demands. Entwistle & Martin (2005)
argue that the turn to partnership marks an important departure in service
delivery and they insist as a proposition partnership that delivers a
transformational approach to service improvement. However, they fail short to
dictate explicitly the peculiarity and modalities in formulation of the
partnership. Across the public and private sector bridge, this characteristic of
open systems facilitates teaming with stakeholders and encouraging the
formation of partnerships.
Nowadays a new paradigm for public management has emerged, aimed
at fostering a performance-oriented culture in a less centralized public sector in
which the Ethiopian Government has tried to implement as pilot New Public
Management (NPM) initiative and now in the process of drafting as new Human
Resource Development Policy (MoFED 2012; Abay & Perkins 2010). This ‘new
paradigm’ is often referred to as new public management that focus upon
achieving qualitative service improvement, from a citizen perspective, whilst
maintaining an overt focus upon bottom-line financial performance (Milner &
Joyce 2005; Abay & Perkins 2010). The new policy document is currently under
thorough review and discussion before submitted to the legislative bodies
(MoFED 2012).
Some of the critics of NPM which are outlined by Desta (2008) are: no
clear definition what New Public Management is, the concept is loose and
multifaceted and offer a kind of shopping basket of various elements for
reformers of public administration, and some of the theoretical justifications are
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
5
also highly questionable. Above all, NPM tends to bread management not
necessarily in terms of numbers rather the search for more effective means of
control in the name of accountability. This final conclusive remark of Desta, as
“means of control” is against the very essence of flexibility in a world of
uncertainty that demands proactive measures. In recent times, agitated by
persistent citizen tastes and requirements the hostile environment chases public
sectors beyond their expectation.
The new public service demands nothing more than satisfying the
customers. However, in differentiating the new public service from the old
public administration, the following invaluable principles are overriding (R. B.
Denhardt & J. V. Denhardt 2000:553-556). Serving, rather than steering;
Making the public interest as the aim, not the by-product; Thinking
strategically, and acting democratically; Serving citizens, not customers;
Understanding that accountability isn’t simple; Valuing people, not just
productivity; and finally, Valuing citizenship and public service above
entrepreneurship. Without an adequate understanding of OC or culture, many
well-intended leaders have led organizations to their demise since OC
represents one of the first widely studied concepts to address the social context
in organizations (Agard 2011: 611- 612).
An attempt had been made to establish interrelationship between OC and
its effect on performance and their attitudes of the civil servants. This is done
based on best instruments available after proper adaptation. According to Lok &
Crawford (1999), various researchers have confirmed that bureaucratic and
stable environment often resulted in a lower level of employee commitment
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
6
(Brewer 1994; Kratina 1990; Wallach 1983) and performance (Krausz et al.
1995; Trice & Beyer 1993).
The public administration scenario in ANRS, driven by the civil servants,
who are the main change agents through efficient service delivery, undergoes so
many strains and stresses during the discharge of their duties (BoCS 2010). OC
surveys routinely show that about 75 percent of working adults report that the
most stressful aspect of their job is their immediate boss (J. Hogan et al. 2009).
Another findings studied by Vijayakumar (2007) implied that the role of
management style in shaping climate perceptions of employees is crucial to
advocate the case for strengthening participatory approach in the management.
OC is a relatively an enduring quality of the internal environment of an
organization that is experienced by its members, influences their behaviour, and
can be described in terms of the values of a particular set of characteristics (or
attributes) of the organization (Mullins 2005).
In this study, the author tries to explore the concept of OC from the
viewpoint of employees’ sensation that resides in the prevailing psychological
environment of public institutions and the relevancy for quality and change
initiatives. Civil Servants are a vital part of our work environment. Therefore,
the purpose of this study is to investigate how the organizational values are
influenced by OC factors as perceived by employees and determine its
implications for organizational effectiveness that in turn bring about job
satisfaction and improved performance and understand how employees
perception mould the quality of the working situation emanating from their
interaction.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
7
1.2. STATEMENT OF THE PROBLEM
It is an undeniable fact that the public administration in ANRS is not
delivering well despite the fact that government effort to rejuvenate the system
through the managerial cult of BPR is still ongoing and the overall change
implementation process is yet at its infancy stage (BoCS 2010). According to
Hammer & Stanton (1995) full implementation of BPR across all the processes
of the business units of an organization can take many years (can easily last five
to seven years, or even longer). The deterioration in the work environment and
ineffectiveness of the whole public administration can be attributed not only to
the poor conduct of civil servants working in the organizations but it might also
be attributed to the lack of determination and failure of the leadership in
creating conducive OC which deemed to be one of its crucial responsibility.
This brings us to a point where thorough examination of the work
environment is needed to identify causes of this debacle. Effectiveness of the
public administration depends mainly upon the civil servants who are
responsible for running it according to the set goals. The efficiency of the civil
servants depends upon the extent and nature of their professional readiness for
the performance of their jobs. It is not sufficient, however, that the civil servants
merely have the required knowledge and skill or credentials only. It is essential
that they should have an adequate understanding of servant attitude and the
need to discern the underlying reasons and source of their payments besides
having the mandatory requirement of some desirable level of mastery in the job
in which they are assigned. That is why after reviewing empirical research about
public service motivation conducted during the last two decades, Perry et al.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
8
(2010) concluded that at the heart of the construct is the idea that individuals
are oriented to act in the public domain for the purpose of doing good for others
and society.
Even though the ANRS public administration change process is in a
mediocre stage; the lack of discipline in government institutions, substandard
accountability, unmotivated employees, redeployment, idleness all contribute to
poor performance of civil servants seems to aggravate the situation unless
possible measures put in place to circumvent the mishaps. Furthermore, the
new result oriented approach of outcome based public administration,
rudimentary management style of the leadership, flatten organizational
structures, the high customer expectation, coping with current political and
ambitious developmental aspirations, and eradication of unethical behaviors
and practices from public service sectors are believed to cause stress on civil
servants. This in turn will lead to poor performance, high turnover and
customer dissatisfaction.
In most cases the leadership evidently denied accountability and easily
put the whole blame on employees’ poor efficiency and lack of commitment.
Apart from the necessity of having the leadership and subordinate irreplaceable
relationships and technical competency little attention is usually paid to the
underlining context of the work environment whether it favors or degrades
employees’ morale. Therefore, the turning point of all fallacies and undesirable
manifestations is looking into the context of the work environment and amend
the irregularities. A recent survey concludes that public service delivery in
Ethiopia can be improved if the commitment, ownership, and the drive for
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
9
change are in place (Mengesha & Common 2006; Beyene 2007). In conviction
of the researcher, this can be realized if the context of the working environment
is found to be favorable to employees to bring job satisfaction and boost their
morale. From this OC takes the major share.
1.3. OBJECTIVES
The main objective of the study is to determine the nature and strength of
perception of OC in relation to the human relations (internal focus) and open
systems (external focus) of flexible organizational orientation of OC as perceived
by the civil servants of the ANRS.
The specific objectives of the study are:
a) To determine the influence of Human HRV and OSV domains of
flexible orientations of OC on OE of Public sectors as perceived by
employees.
b) To determine the relationship that exists between the dimensions of
OC and the aggregated HRV and OSV domains of OC respectively,
and determines the dominant factor in each category.
c) To find out if there is a significant difference in employees’
perceptions of OC in terms of employees’ gender, tenure, education
level, organization type, and work processes in human relations
values, OSV and Organizational effectiveness of OC across public
sectors.
d) To recommend a future research area that capitalizes on the findings
of this research and to lay ground for future localized empirical
research on similar topics.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
10
1.4. RESEARCH QUESTIONS
The study is aimed at answering the following research questions;
1. To what extent do HRV & OSV of OC influence organizational
effectiveness ANRS public services?
2. Is there any significant positive relationship between the dimensions of
OC and HRV (internal focus) of flexible orientation?
3. Is there any significant positive relationship between the dimensions of
OC and OSV (external focus) of flexible orientation?
4. What is the dominant factor of OC influencing employees’ perception in
public sectors of ANRS?
5. Is there any significant difference between employees’ perception of OC
in terms of employees’ gender, tenure, education level, organization type,
and work processes in HRV, OSVand OE across public sectors in ANRS?
1.5. RESEARCH DESIGN & METHODOLOGY
1.5.1 Nature and Sources of Data
The research design fall under the broad category of positivist studies
since its goal is to test the hypotheses proposed. A mixed research design of
qualitative and quantitative is used as it aided the researcher in analysing the
areas that impart employees’ perception towards OC and to scope out the
magnitude or extent of a particular phenomenon, problem, or behaviour. Even
though this research is qualitative in nature, data were collected using
quantitative research methods, as a quantitative approach was more
appropriate and the study involved the generation of data in quantitative form,
which is subject to rigorous quantitative analysis.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
11
A cross-sectional field survey adopted to collect primarily quantitative
data such as numeric scores and biographic metrics. Field surveys are non-
experimental designs that do not involve controlling for or manipulating
independent variables or treatments (Bhattacherjee, 2012) and it is convenient
to capture snapshots of practices, beliefs, or situations from a random sample of
subjects in field settings through a survey questionnaire. In the process,
independent and dependent variables were measured at the same point in time
using a single questionnaire.
According to C. Hutchison (2000) mentioned in Silberman (2001), there
are a number of data collection and analysis tools that can provide information
about the status of an organization. The survey used climate survey or attitude
survey in which it assesses employees’ current feelings and opinions within the
organization regarding factors of OC and employees’ commitment.
The study used mainly primary observational data sources i.e. personal
feelings & sensation collected through self-administered questionnaire of cross-
sectional survey. The sources of the primary data were all type of individual
government civil servants excluding political appointees in the selected sampled
public sectors.
1.5.2. Sampling technique & sample size Determination
In a positivistic study a representative or good sample is one in which the
results obtained for the sample can be taken to be true for the whole population
that can be able to generalise from the results. A good sample must be chosen at
random (every member of the population must have a chance of being chosen),
large enough to satisfy the needs of the investigation being undertaken, and
unbiased (Collis & Roger Hussey 2003). However, many of the above methods
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
12
present problems of sample bias, mainly because in a sampling frame we cannot
identify unambiguously in advance. In other words, the sample will not be
representative of the population as a whole. Therefore, in a positivistic study,
attempts are usually made to minimize the bias through justification of the
sample selection method.
In this study, taking the viability and representativeness of the sample,
and resource constraints into consideration a two step process was followed in
the selection of the respondents. First, the number of organizations was
sampled due to the homogeneity in work cultures across public sectors.
Therefore, for every ten only one organization was taken as representative
sample allowing equal chance of selection through random sampling from each
stratum. In the second step, however, the respondents sample size was
determined from the total number of employees in the thirty six organizations
and subsequently allocating the calculated figure to the selected organizations in
the first step proportionately.
The stratification was done taking into account their difference in
performance evaluation rankings in Civil Service Reform Program (CSRP)
implementation, formally evaluated by the formerly known Regional Capacity
Building and Civil Service Bureau1 (Amare et al. 2010). Thirty-seven
organizations took part in the evaluation of BPR implementation among which
one organization latter had dissolved (See APPENDIX- A).
The thirty-six organizations were classified based on the normal
distribution curve of their rankings, which shows a mean of 62.21% and
1 The report was dispatched in circular Ref No. አግሲስ/2/8/87 dated 04/08/2002EC
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
13
standard deviation measure of 8.08%. Assuming that the data is almost
normally distributed as it fulfills the condition set in the central limit theorem,
and transforming the data into standardized form and taking the standard
values of Z-scores as cut-off between +/- 1.00 and +/- 2.00 points, 20
organizations (55.56%) fall within the middle pile of the distribution curve, 7
organizations (19.44%) fall within the left 97.22% tail of data distribution,
another 8 organizations (22.22%) fall within the right 97.22% tail of data
distribution, and only one organization fall outside the right extreme end of the
97.22 % tail of the data distribution curve. Figure 1-1 shows the normal
distribution curve of the sampling distribution of organizations.
Figure 1-1: Sampling Frame Distribution based on Performance of
Organizations
Hence, a sample size of 348 individual respondents was determined
which were drawn from all work processes in random sampling out of the total
3,656 employees of the thirty six organizations proportionately using a formula
for Sampling (Renckly 2002: 25)(see APPENDIX- B).
Accordingly, the specific sampling distribution and sample sizes are
depicted in the following table;
1 8 7 13 7 0 N. of Organization
A B C D E F Class
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
14
Table 1-1: Sample Selection & Distribution for organizations and respondents
Strata (based on Z scores)
No. of Organiz
ation
Sampled Org.
Type of Work Processes &
their size
Respondent Sample
Size %
Class A (Above 1.79) 1 BoE
CP – 5 39 19% SP – 5 40 28%
TOT - 10 79 23%
Class B (1.15 to 1.79) 8 BoTVT
CP – 4 16 8% SP – 5 17 12%
TOT - 9 33 9%
Class C (0 to 1.14) 7 BoEPLA
CP – 5 26 13% SP – 5 23 16%
TOT - 10 49 14%
Class D (0 to -1.14) 13 BoCTPD
OGADT
CP – 4 105 52% SP – 5 48 33%
TOT - 11 153 44%
Class E (-1.15 to -1.79) 7 BoWYCA
CP – 5 17 9% SP – 4 17 11%
TOT - 9 34 10%
Class F (Below -1.79) 0 0
0 0 0 0 0 0 0 0 0
36 6
CP – 5 203 58% SP – 6 145 42%
TOT - 11 348 100% Note: CP – Core Process & SP – Support Process Source: Researcher’s own computation
1.5.3. Method of Data collection
The study adopted the standardised, structured and validated OC
measurement developed by Patterson et al (2005) based on competing values
model (CVM). Only the flexible orientation values of HRV and OSV were tapped
from the measurement. OE is measured indirectly using proxy variable
organizational commitment measurement developed by (Speier & Venkatesh
2002), which is adapted from (O’Reilly & Chatman 1986). Organizational
commitment has been identified as a useful measure of OE explaining the work-
related behaviour of employees in organizations” (Iqbal 2007; Steers 1977) and
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
15
the scales believed to measure the three basic components of organizational
commitment; identification, involvement, and loyalty.
Overall, the 8 dimensions of the OC measures comprised of 37 Likert-
type items having a proven regression weight of 0.6 and above, the minimum
recommendation (Hair et al. 1998; Vijayakumar 2007) were tapped from HRV
and OSV of the CVM. For organizational commitment measure three Likert-
type items, which previous researchers Speier & Venkatesh (2002) have found
an acceptable reliabilities of (α = 0.75 – 0.83) were used. The response formats
for both types of measures use a 5 point, Likert-type scale from 1- Strongly
Disagree to 5- Strongly Agree.
Both measures, translated into local language Amharic and put into a
single questionnaire, since more than 85% of the respondents are believed to be
undergraduates, questions in English language might not produce the required
response and assumed to limit their participation on the survey. A Group of
three linguistics professionals carried out the translation meticulously
preserving the dialects and original positive/negative wording of the English
language (see APPENDIX- C).
The demographic questions put at the beginning of the questionnaire,
though there is some debate regarding the best location for the classification
questions which ask about the respondent’s sex, education, etc. Some authors
believe that they are best placed at the beginning, so that respondents gain
confidence in answering easy questions; others prefer to place them at the end,
so that the respondent starts with the more interesting questions. However,
Collis & Roger Hussey (2003:175) advised that unless your questions have a
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
16
large number of classification and are of a sensitive nature, it may be best to
start with the non-threatening classification questions.
At the end of the questionnaire, a filtering question was provided using
nominal and ordinal scale measures to crosscheck the consistency and
genuineness of the responses. It also serves gather respondents opinion on the
areas of possible improvement of OE.
The questionnaire was prepared in two formats, in hard copy ballpoint
format for personal contact and electronic format. Adobe Acrobat X Pro
software was used to design the e-questionnaire with a friendly use of drop-
down lists and button marked response platform. Data collection started on
April 11, 2012 and concluded within 10 days.
1.5.4. Method of Data analysis
The collected data were statistically analysed by means of the Statistical
Package for Social Sciences (SPSS Version 16) and the data analyses involved
both descriptive and inferential statistics.
Descriptive statistics allow researchers to present the data acquired in a
structured, accurate and summarised manner (Collis & Roger Hussey 2003:
196). The descriptive statistics utilised in this research used to analyse the
demographic data included frequencies, percentages, means, median, and
standard deviations.
Inferential analysis is concerned with the various tests of significance for
testing hypotheses in order to determine with what validity data can be said to
indicate some conclusion(s) and concerned with the estimation of population
values (Kothari 2004: 131). The following linear regression model was tested
assuming that the interaction between predictors is negligible and the effect of
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
17
control variables is minimal. In multiple linear regressions, the individual
relationships in any of the component regressions are linear (straight-line, not
curved, or any other shape).
Organizational Effectiveness (OE) = ƒ (Xi=1-2) where, Xi are the two aggregated
values of the OC. i.e.
Y = 𝜶𝟎 + b1 X1 + b2 X2 + є
(Where: Y = dependent variable of Organizational Effectiveness (OE) and Xi =
independent variables in which; X1 = HRV, X2 = OSV, 𝛼0 = the y-intercept, bi,
i=1-2 = regression coefficients of the two factors in explaining Y, and є = the Error
term). Hence, H0: bi, i=1-2 = 0
Therefore, the collected data were analyzed using parametric statistical
tools to test the hypotheses. To this end, Multiple Linear Regressions, Pearson’s
Product-Moment Correlation Coefficients, Independent-samples T- test, and
One-way ANOVA were used for testing the hypotheses.
1.5.5. Definitions and explanation of terms
The terminologies used in the study are defined as follows;
Human Relations: refers to the well-being, growth and commitment of the
community of workers within an organization (Patterson et al. 2005) and
understanding of the problems and anxieties of the staff and to encourage their
wider motivations to work (Rose 2005).
Open systems: refers to the interaction and adaptation of the organization to
its environment, with managers seeking resources and innovating in response to
environmental demands (Pugh & Hickson 1996).
Work process: is a set of interrelated steps that begin with an input or trigger
and end with an outcome that satisfies the end user (Linden 1998).
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
18
Core processes: are those that end up touching an external customer; they
occur when an employee fills a customer’s order, responds to a customer’s
complaint, or develops a new program or product (Linden 1998).
Support Processes: are internally focused, such as the process of recruiting,
hiring, and training of new employees (Linden 1998).
Integration: is the extent of interdepartmental trust and cooperation
(Patterson et al. 2005) binding the variety of experience and expertise among
members to provide a synergetic effect which can be applied to the increasingly
complex problems of modern organisations (Mullins 2005).
Involvement: is the degree to which one is cognitively preoccupied with,
engaged in and concerned with one’s present job (Paullay et al. 1994), drives
alignment and promotes teamwork.
Supervisory Support: is the extent to which employees experience support
and understanding from their immediate supervisor (Patterson et al. 2005).
Laissez-faire leadership described as a leader's disregard of supervisory duties
and lack of guidance to subordinates (Barbuto 2005) as a result in today’s
environment, the supervisory role has shifted from authoritarian to team
facilitator.
Emphasis on training: is about developing employees’ skills and proved in
Samuel & Chipunza (2009) researches that training and development as a
motivational variables were found to have significantly influenced employee
retention in both the public and private sector organisations.
Employee Welfare: is the extent to which the organization values and cares
for employees (Patterson et al. 2005) and make them feel as though their well
being is considered as a vital component of OC.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
19
Innovation & flexibility: Innovation is the extent of encouragement and
support for new ideas and innovative approaches while flexibility is an
orientation toward change (Patterson et al. 2005). To survive, adapt, and gain
competitive advantage, organizations need to fully take advantage of their
employees’ innate creative potential (Zhou & George 2003), because employees’
creative ideas can be used as building blocks for organizational innovation,
change, and competitiveness.
Outward focus: is the extent to which the organization is responsive to the
needs of the customer and the marketplace in general (Patterson et al. 2005).
Reflexivity: is a concern with reviewing and reflecting upon objectives,
strategies, and work processes, in order to adapt to the wider environment
(Patterson et al. 2005).
1.5.6. Validity & Reliability Tests
Pilot study was carried out using convenient selection method on four
public organizations having the same characteristics with the participants of the
main study. The advantages of doing a pilot study include; it helps to detect
potential defects in the measurements procedures, it assists in identifying
ambiguous items, and it allows the researcher to become aware of non-verbal
behaviours that may occur due to the wording of questions (Singh 2009).
In fear of the boredom that may inflict on the participants, only one
organization was included from the sampling frame and the remaining three
were outside the sample frame. Since, the intention was to undertake the pilot
study on 20% of the sample size and hence, after randomly identifying and
having the list of email address of the participants, 68 questionnaires (splitting
evenly for both ballpoint and email filling) were distributed to the participants,
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
20
which were drawn from all work processes of the organizations. Eventually, 37
questionnaires were returned with a response rate of 54.4%.
The low response rate of the email filling, 26.5% as compared to 82.4%
for the hard copy was the first lesson learnt from the pilot study to rely only on
the ball-point and exclude the electronic questionnaire format. The second
lesson, it was learnt that no complains reported on the clarity and ambiguity of
wording of the questions. Thirdly, with regard to the psychometric properties of
the questionnaire, most items under their respective nine constructs has shown
a reliability measure, Cronbach's Alpha, within an acceptable range of .694 to
.873 except for one construct, Training, with low alpha value of .453 and
another, Integration, with a negative value. One question was identified as the
cause of low alpha value in the Training construct as there would be a possibility
of raising the alpha value to .673 if it had been eliminated there of.
The validity of the measurement during the pilot study was assessed
using the Kaiser–Meyer–Olkin measure of sampling adequacy (KMO) in
principal component analysis that represents the ratio of the squared
correlation between variables to the squared partial correlation between
variables. This had been done as KMO is another alternative way of gauging of
the substantive importance of a given variable to a given factor. Kaiser (1974) as
cited in Field (2009) recommends accepting values greater than 0.5 as barely
acceptable because values below this imply to either collect more data or rethink
what variables to include.
Hence, the KMO values obtained in the pilot study fall within the range
of .519 to .822 except for one construct, Integration that shown negative alpha
in reliability again showed KMO of .439, which is below the recommended
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
21
threshold value. However, it was decided latter to maintain Integration with the
Training construct that showed low alpha value though suspected of reasons
that may arise from the lax behaviours of respondents and the small sample size
used coupled with low response rate in the pilot study might have affected the
results.
1.5.7. Variables of the study and Conceptual framework
Organizational commitment that was selected as a proxy variable to measure
Organizational Effectiveness (OE) was considered as a dependent variable. The
sub-scales (dimensions) of the HRV domain (Training, Welfare, Integration,
Involvement, and Supervisory support) and OSV domain (Reflexivity, Outward
focus and Innovation & Flexibility) of OC were considered as first-order
independent variables. The aggregated domains of HRV and OSV were
considered as the second-order independent variables.
In the study, demographic variables such as sex, educational level, type of work
process in which the respondents are assigned, and tenure were considered as
control variables. Prior studies have demonstrated that these demographic
variables are potential predictors of organizational commitment (Avolio 2004).
Having a thorough review of earlier researches and noting the dearth of
empirical works in African work environment especially on public servants, this
study geared to focus in filling the gaps that is sought in the aforementioned
areas.
Figure 2-4 in the next page portrays the conceptual research model that
is formulated to rejuvenate the main elements of the study.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
22
Figure 2-2: Research Model Adapted from Natural System Model of CVM
This study was based on the premise that OC perceptions contribute to
groups and organizational effectiveness and would try to test the propositions
that positive climate perceptions would improve, and negative climate
perceptions would deteriorate group and organizational effectiveness.
Therefore, the study tried to shade light on identifying the blurred areas of
confrontation between management and employees in the work environment in
terms of flexible orientations of OC i.e. HRV and OSV.
1.5.8. Research hypotheses
The study proposes to test the following eight hypotheses:
1) The aggregated HRV & OSV of OC do not predict the organizational
effectiveness, which is measured by employees’ organizational
commitment.
Innovation & Flexibility
Outcome Organizational effectiveness
Integration
Involvement
Supervisory support
Training
Welfare
Outward Focus
Reflexivity Open systems (External Focus)
Human Relations
(Internal Focus)
Flexible Orientation of OC
Natural System Model
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
23
2) The dimensions of OC (Integration, Involvement, Supervisory Support,
Training, and Welfare) do not positively relate with HRV domain of
flexible orientation.
3) The dimensions of OC (Innovation & Flexibility, Reflexivity, and Outward
focus) do not positively relate with OSV domain of flexible orientation.
4) There is no significant difference between employees’ perception of OC in
terms of employees’ gender in HRV, OSV and OE across public sectors.
5) There is no significant difference between employees’ perception of OC in
terms of employees’ tenure in HRV, OSV and OE across public sectors.
6) There is no significant difference between employees’ perception of OC in
terms of education level in HRV, OSV and OE across public sectors.
7) There is no significant difference between employees’ perception of OC in
terms of type of organization in HRV, OSV and OE across public sectors.
8) There is no significant difference between employees’ perception of OC in
terms of work processes in HRV, OSV and OE across public sectors.
1.6. SIGNIFICANCE OF THE STUDY
The impetus for this study arose out of the realization that the aggressive
moves by the government to transform the country’s economy to middle-income
economy level within the coming decade, coupled with the general perception of
the necessity of creating competent public sectors and administration that
actively engaged on implementation of government policies to mobilize the
society. Hence, a more analytical approach in understanding how employees
perceive their environment and how this in turn influences their attitudes
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
24
towards the OE first need to be figured out to devise appropriate organizational
measures.
In this study, there are two basic factors: OC and OE. The study aimed at
determining the level of OC as perceived by the civil servants and find out
whether there is meaningful relationship between OC and OE. The study also
tries to verify whether there is difference in perception of OC within institutions
in terms of gender, tenure, educational level and work processes.
The findings of this study would serve as a basis for fostering improved
working relationships between the leadership and employees and that of
customers. It would also help the leadership of the regional government
bureaux to regulate their relationship towards their subordinates by providing
welfare facility, adequate participation, training prospects and promotion
opportunities. The results of the study will enable to acquire adequate
knowledge about the management styles of the leadership in ANRS. The
research may be helpful to the cabinet council to make intense efforts to
improve the public sector management competencies. The result of this
research will provide necessary information and more understanding about
public sectors officials’ competencies and their relation with their subordinates.
The result of this research will emphasize the need for and importance of pre-
service and in-service training of leadership for effective management.
1.7. SCOPE OF THE STUDY
The study is geographically confined to governmental public sectors of
the ANRS at the regional tier of political governance supervised by the regional
Bureau of Civil Service (BoCS) for the reason of responsibilities levied upon in
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
25
devising the developmental programs and put directions for the lower
administrative levels. The regional public offices are by far better than branch
offices at lower administration levels in terms of intellectual and institutional
arrangements to portray the working culture. The study also deals only on
aspects of Human relations (internal focus) and Open systems (external focus)
of flexible orientations of CVM of OC because it enables to get focussed and have
better insight and deal with the institutional adaption to the overall
organizational change process.
1.8. LIMITATIONS OF THE STUDY
One of the major limitations emerges from its scope, in spite of time
constraints and fear of bulkiness in managing the study process, the
relationship between organizational effectiveness and the control orientation’s
of organizations which represent almost half of the organizational analysis in
the CVM i.e. the Internal Process Values (IPV) and Rational Goal Values (RGV)
were not included in the set of independent variables. Since climate is best
described as employee perceptions of the organization and will be a function of
employee attitudes and values (Toulson & Smith 1994), and also Quinn (1988)
argued that a balance of competing organizational values is required for OE.
Therefore, it would have been better if the assessment is done holistically to gain
insight in light of factors of OE framed in OC.
Secondly, the study involves largely latent constructs that are not directly
measurable. Thus, though the measure is applied across a variety of
organizational types and in a variety of national contexts (Patterson et al 2005),
the inherent limitations of the questionnaire and selectivity of measurement
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
26
scales that was tapped from the manufacturing environment adaptation to
service industry of standardized validated measurement of such constructs
remain.
Thirdly, potential limitations that emerge from the nature of sampling;
targeting of on regional level public institutions and public servants, relatively
non-updated information used in determining the sampling frame and sample
size (true representativeness of the current situation may suffer) and the cross-
sectional nature of the data in the study. As a result, generalization of the results
may be limited. This research also relied on self-report surveys to measure
employees' perceptions of their work environment preferences, which raises the
potential for common method variance. Common method variance, in this case
refers to the problem that occurs when the same participant completes all the
measures using the same type of paper-and pencil response format (Vakola &
Nikolaou 2005). It is possible that data collected from the questionnaires do not
capture the complexity of employees’ perceptions towards their workplace
conditions. Since a quantitative design was used, qualitative data could have
added value to the research. Alternatively, a triangulation method like interview
and focal group discussion could have been employed to gather richer data to
establish the linkages of OC and OE.
Lastly, a limitation in a dearth of similar empirical researches and
relevant literatures in the area of employees’ perception of OC in Ethiopian as
well as ANRS work environments. In general, the results need to be interpreted
in the spatial, temporal, and methodological context of the study. That is, in the
country’s government institutions context and regional work culture as well as
the nature of the measurement employed for the statistical tests need to be
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
27
considered in interpreting the results. The use of a combination of methods also
relates to this need for flexibility in the study. Thus, the hypotheses need to be
tested in other empirical settings to garner further support.
1.9. ORGANIZATION OF THE PAPER
Chapter-I sets the tone and context of OC in the shift from old to new
public administration and outlines the reasons behind the study. It provides a
brief description about the background of the study, statement of the problem,
general and specific objectives, research questions & hypotheses, research
methodology, significance of the study, the scope, limitations and organization
of the paper.
Chapter-II provides a thorough review of related theoretical and
empirical literatures on the thematic issue of OC. The empirical evolution of
conceptual and methodological issues pertaining to research problem was
emphasised highlighting the methodological clues drawn through the literature
review.
Chapter-III addresses a brief historical retrospect about the entity of the
study, the regional government’s profile in relation to civil service reform
implementation.
Chapter-IV presents the data analysis and the most salient results
emanating from the analysis obtained in the study.
Chapter-V provides the summary and conclusions that are drawn based
on the obtained results and integrated with existing literature. Moreover,
practical implications of the research findings are highlighted and
recommendations for future research outlined.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
28
CHAPTER II – REVIEW OF RELATED LITERATURE
2.1. INTRODUCTION
This chapter reassesses the literature of the theoretical basis of the framework
used in the study, Competing Values Model. Literatures on the links between
Competing Values Model and Organizational Climate, the relationship of
Organizational Climate and Culture and the importance of OC and factors
affecting OC. The chapter try to review some of the empirical studies with
regard to the subject matter in light of its connection to organizational
effectiveness.
2.2. THEORETICAL FRAMEWORK
2.2.1. Overview
Early theories of employee motivation almost completely dominated by
the assumption that the only incentives available, which are likely to exist until
today to some managers, believed to rely more on the monetary ones and
economic self-interest (Schein 2004). However, Hawthorne studies
(Roethlisberger & Dickson 1939; Homans 1950) had born the new series of
“social” assumptions, postulating that employees motivated by the need to
relate well to their peer and membership groups and that such motivation often
overrides economic self-interest (Ibid, p172). This argument is against the many
economic theories assumption that human beings are rational and employ
utility maximization based on cost and benefit expectations as a way of
understanding human behaviour (Bhattacherjee 2012).
On the contrary, political science theories, assume that people are more
political than rational, and try to position themselves in their professional or
personal environment in a way that maximizes their power and control over
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
29
others (Ibid). This was previously supported by Ajzen (1991) in his theory of
planned behaviour postulating that behaviours are based on one’s intention
regarding that behaviour, which in turn is a function of the person’s attitude
toward the behaviour, subjective norm regarding that behaviour, and perception
of control over that behaviour. Recent theories also emphasize the need to
enhance the career development and psychosocial support to employees
through mentoring and reduce their perception of job-related stress (Sosik &
Jung 2010:345). In all perspectives, people’s behaviour framed not merely from
personal exposition but has direct linkage with organizational behaviours.
Even though the exact time of the individual assertion not mentioned,
excerpts obtained from the book “Writers on Organization” (Pugh & Hickson
1996), the great management gurus of the olden times had highlighted how the
need to function successfully in different environments led organizations to
adopt different structures and strategies. For instance, it was explained how
Tom Burns examined the effects rapidly changing technological developments
on the attempts of old-fashioned firms to adjust to new environments. How Paul
Lawrence and Jay Lorsch emphasised that it is the appropriateness of the
organization’s structure in relation to its environmental requirements, which is
the basis of effectiveness. James D. Thompson also portrayed organizations as
open systems having to achieve their goals in the face of uncertainty in their
environments, while Raymond Miles and Charles Snow emphasised the
strategic choices that managements have to make to adapt to the environmental
pressures they face. All the writers concern was the need for adaptation for
change situations and being flexible to the environment surrounding the
organizations.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
30
In their approach, they highlight three key elements on understanding of
organizational behaviour, which believed in line with the underling outlook of
this study. These are: a) it is people who have purposes, not organizations; b)
people have to come together to coordinate their different activities into an
organization; and c) the effectiveness of the organization is judged by the
adequacy with which the members’ needs are satisfied through planned
transactions with the environment (ibid).
2.2.2. Definitions of Organizational Climate
OC perceptions are descriptive of conditions that exist in the work
environment. The perceptions are not evaluative or affective (Schneider &
Snyder 1975) but recent work contradicts this view, suggesting strong evaluative
or affective components (Patterson et al 2005). For decades, the definitions
barely changed in the early understanding of OC as a “normative structure of
attitudes and behavioural standards which provided a basis for interpreting the
situations and act as a source of pressure for directing activities” (Gregopoulos
1965). To the recent amalgamated definition of Agard (2011) of all the
preceding studies, seeing OC to consist the visible attributes of an organization’s
values as interpreted, in a shared manner, by multiple members of the
organization. All in all, climate is best described as employee perceptions of the
organization, it follows that the measurement of climate will be a function of
employee attitudes and values (Toulson & Smith 1994).
There are a variety of measures of OC as summarized by Furnham &
Gunter (1993). To name the few; the categorical approach which attempts to
classify organizations according to pre-existing theoretical types, the
dimensional approach which attempts to classify organizations according to the
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
31
perceptions of its members to a set of dimensions, the third method is to use
historical data of an organization to develop an aggregate index of OC. The first
and the third methods are objective measures while the second is a subjective
measure based on the perceptions of individuals. We can therefore, summarize
the definitions as any course of sequence of behavior that aids in achieving a
necessary purpose or a series of action that lead to the accomplishment of
objectives.
2.2.3. The emergence of Competing Values Model
As part of their contribution on organizational behavior, Quinn and
Rohrbaugh (1983), where they engaged in a series of studies to review the OC
literature have compiled a list of dimensions, which they termed as the
“Competing Values Model”. Even though the model is likely rooted from
mechanistic and organic type of classification of organizations in which the
former is adapted to relatively stable conditions and the latter is adapted to
unstable conditions when new and unfamiliar problems continually arise (Burns
& Stalker 1961), the CVM is a preferred way of portraying the organizational
behavior in the context of organic type of organization that seek adaptation to
new environment.
According to (K. S. Cameron & Quinn, 1999; Quinn, 1988), the CVM
named as one of the fifty most important models in the history of business. It
has since extended as a framework that makes sense of high performance in
regards to numerous topics in the social sciences and organizations. The CVM
studied and tested in organizations for more than twenty-five years by a group
of thought leaders from leading business schools and corporations. It has been
the topic of many books and papers and it employed in the improvement of
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
32
thousands of organizations. Still, various researchers use the CVM for all
aspects and levels in organizations.
Two domains of the Competing Values Framework used in the present
study as a frame of reference (Quinn and Rohrbaugh 1983). This framework
captures the dimensions of flexibility/stability and the external/internal focus of
organizations and makes it possible to distinguish between organizational
values. The Open System type encompasses values such as flexibility, external
organizational orientation, adaptability, the capacity to change, uniqueness and
an orientation towards customers and the Human Relations type of values is
supported by an internal focus, cohesion, morale, trust and belongingness (K. S.
Cameron & Quinn 1999).
Source: (Adapted from Quinn & Rohrbaugh (1983: 369)
Figure 2-1: The Competing Values Framework
The framework suggests four main quadrants, each associated with
different managerial ideologies encapsulating the means by which outcomes
may be achieved (Cooil et al. 2009). A major strength of this model is its
Predictability/Control RATIONAL GOAL MODEL
INTERNAL PROCESS MODEL
Means: Information Management; Communication
Ends: Stability; Control
Internal Focus
Means: Cohesion; Morale Ends: Human Resource Development
Output
Q lit
Natural System Values
Rational Values
Flexibility/Spontaneity
External Focus
HUMAN RELATION MODEL
OPEN SYSTEM MODEL
Means: Flexibility; Readiness Ends: Growth; Resource Acquisition
Means: Planning; Goal Setting Ends: Productivity; Efficiency
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
33
derivation from four orientations to the study of organizational effectiveness,
reflecting long traditions in work and organizational psychology (Patterson et
al., 2004). Patterson and his colleagues thus, went on differentiating the two
approaches from the other two in that the open systems approach emphasizes
the interaction and adaptation of the organization in its environment, with
managers seeking resources and innovating in response to environment. The
human relations approach reflects the tradition derived from socio technical
and human relations schools emphasizing the well-being, growth and
commitment of the community of workers within the organization.
One of the main advantages of the CVM is the fact that it derives its
approach from long standing theories in management and organizational
psychology (Cooil et al. 2009) and it clarifies leadership roles and expectations
and the clarification minimizes ambiguity and avoids interpersonal conflicts
within teams (Zafft et al. 2009). The emergence of the pairs of competing
values; flexibility versus stability, and internal versus external reflects a basic
dilemma of organizational life and those organizations that are able to best
balance integration and differentiation are the most effective systems. From
which side we perceive, participants have unique feelings, likes and dislikes, and
require consideration, appropriate information, and stability in their workplace
(Quinn & Rohrbaugh 1983). Therefore, parallels among the models are
important. The human relations and open system models share an emphasis
upon flexibility whereas; the rational goal and internal process models are
rooted in a value on control (Ibid).
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
34
Source: Adapted from Quinn & Rohrbaugh (1983: 374)
Figure 2-2: The Alternative Competing Values Framework
In the following table the distinguishing factors of the two approaches in
CVM is presented;
Table 2-1: Distinguishing Factors of the two approaches of the CVM
Human Relations Approach:
Open Systems Approach:
Focus Commitment, Cohesion, and Morale
Adaptability and External Support
Assumption: Involvement results in commitment
Continual adaptation and innovation lead to acquiring and keeping necessary external resources
Emphasis: Participation, conflict resolution, consensus building
Political adaptability, creative problem solving, innovation, and management of change
Expectation: Act as a team, with high employee involvement
Operate in a high-risk, fast-paced, innovative climate, and to rely on vision and shared values
The leader: To take the role of a mentor, coach, and facilitator
To be highly adaptable, an innovator and broker
People: Want to and will perform well given the right environment and encouragement
Thrive on challenge, move from project to project as needed, and must watch for burn-out
Roles: Mentor, Facilitator Innovator, Broker Source: Adapted from Faerman (1990:4-5)
Quinn & Rohrbaugh further argue that OE is not a concept. It is a socially
constructed, abstract notion carried about in the heads of organizational
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
35
theorists and researchers and in judging the effectiveness of any organization,
they come up to demonstrate through social judgment analysis that it is possible
to articulate values, make the weights on each value explicit, and develop a
formula for empirically combining scores on each criterion. OE refers not only
to results, which are important but also to a number of other aspects - values,
philosophy, policies, process and outcomes.
2.2.4. The link between Competing Values Model and Organizational Climate
The CVM is an empirically derived and comprehensive framework that
encompasses many of the proposed dimensions in the literature and it has
proven to have both face and empirical validity (Cooil et al. 2009). With this
model, Quinn and his colleagues proposed that OC can best be classified by the
fundamental dimensions of internal versus external focuses and flexibility
versus control orientations (Quinn & Rohrbaugh 1983).
Kurt Lewin and his colleagues coined the term “Organizational Climate”
first in 1939 following a study of children’s school clubs. He subsequently
developed his well known field theory of behavior, which he linked to the
Gestalt psychology of holistic perception, and expanded to encompass whole
organizations (Clegg & Bailey 2008; Kundu 2007). The article mainly
emphasised on the relationship between leadership styles and so-called ‘Social
Climate’ that states as a distinctly organizational concept attributed to Rensis
Likert, whose work expanded Lewin’s ideas, and still actively influence the ways
scholars and practitioners approach OC. Likert’s use of surveys to measure
climate – still the dominant approach today – was intended to measure an OC
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
36
that he considered could not be explicitly known to the organization’s members,
nor was it something that could be created artificially.
OC can be seen as an enduring quality of the internal environment that is
experienced by members, influences their behavior and can be described by a
particular set of values of the characteristics of the organization that are created
by shared psychological climates and it is the employee’s perception of the work
environment and not the environment that is important. Schneider (1990) as
cited in (Patterson et al. 2004), suggested that OC perceptions focus on the
processes, practices, and behaviors which are rewarded and supported in an
organization. The success of Human Services organizations generally depends
on the relationships and interactions between service providers and service
recipients. These relationships are central to the quality and outcome of
services. Importing climate and process from the external environment,
organizations adapt ways from other organizations with which they compete or
cooperate. Effective management of organization processes is vital for
sustaining the competitive edge of any organization.
Processes no longer viewed as just production processes. Today,
management realizes there are many more processes that use material,
equipment, and people to provide many types of outputs and services. They are
called business processes, and today they are even more important to
competitiveness than production processes (Harrington 1991).
2.2.5. The relationship of Organizational Climate and Culture
Climate regarded as an attribute of the organization, a conglomerate of
attitudes, feelings, and behaviours that characterizes life in the organization,
and exists independently of the perceptions and understandings of the members
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
37
of the organization (Ekvall 1996). Ekvall has also stressed that OC is not
identical to organizational culture. The OC is mostly about attitude and
behaviours. Whereas culture is a process in which the aim is to form a collection
about more comprehensible system of values and believes (Gill 2008).
One of the critical issues in OC is its differentiation from organizational
culture. Indeed, the terms “culture” and “climate” used interchangeably in the
organizational literature. These concepts are, however, clearly differentiated
ontological perspectives and in most cases, culture refers to deeply embedded
values and assumptions (Clegg & Bailey 2008). Climate, on the other hand
refers to environmental factors that consciously perceived and, importantly are
subject to organizational control. That means, climate is something that can be
directly influenced by management policies and leadership, while culture is
much more difficult to change and control (Ibid).
Different authors like (Ashkanasy et al. 2000; Schneider 1990; Tagiuri &
Litwin 1968) as cited in (Edgar H. Schein 2004), defined the word “climate” as
the feeling that is conveyed in a group by the physical layout and the way in
which members of the organization interact with each other, with customers, or
other outsiders. In short, the author concludes climate understood as a surface
manifestation of culture. Nevertheless, some writers on culture divided the
concept into five components: values, beliefs, myths, traditions and norms that
are difficult and almost impossible to measure and even harder for people to
articulate but they are real and should be managed as part of the process of
changing the organization. On the other hand, more precisely, climate is shared
perceptions of organizational policies, practices and procedures (Imran et al.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
38
2010). Therefore, climate is more dependent on perceptions rather than
assumptions (Kundu 2007).
The study of OC split and evolved in two directions: research on climate
and research on culture. This divisiveness in the literature remains until today,
as articulated by researchers who advocate keeping the concepts of climate and
culture distinct and independent of each other. However, a growing number of
researchers laud the benefits of understanding climate and culture as reciprocal
and reinforcing concepts that may benefit from mutual study that exist as
related concepts with similar definitions (Agard 2011:613). James et al. (1990)
as cited in (Neal et al. 2000) highlighted that perceptions of the general OC
develop as individuals attribute meaning to their organizational context based
on the significance of the environment for individual values. Apart from these
principal research works, explained in (Kundu 2007), there were also other
studies and the collection of all the research work ultimately provided the initial
framework of OC.
Source: Adapted from Quinn (1988) cited in (Gray & Densten 2006:596) Figure 2-3: The CVF and Culture
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
39
As shown in Figure 2-3 above, an internally focused flexible
organization thought of as a clan, whereas an internally focused stable
organization thought of as a hierarchy. An externally focused flexible
organization is labelled an adhocracy, and an externally focused stable
organization is thought of as a market (Schein 2004).
In explaining the four culture types Higgs (2010: 79-80) has stated that;-
… clan organizations have parallels with family run organizations, characterized as a friendly place to work, with shared values and goals, a strong cohesiveness and sense of ‘we-ness’ permeates throughout the organization. In an adhocracy culture typically, power is decentralized, effective leaders are visionary, innovative and risk taking. The hierarchy organization characterized as formal and structured where procedures govern how people work and effective leadership includes good coordination and organization, where the maintenance of a smooth-flowing operation is the key. The fundamental assumptions of the market are the external environment is hostile and customers are demanding and seeking value. Leaders are typically hard driving, who are tough and demanding to work. The organization is bound together by its emphasis on winning.
Therefore, as Patterson et al. (2005) stated there is no doubt that culture
and climate are similar concepts since both describe employees’ experiences of
their organizations.
2.2.6. Importance of Organizational Climate
Patterson et al. (2005) suggested that climate perceptions are associated
with a variety of important outcomes at the individual, group, and
organizational levels. He cited the various researches to support his argument
on leader behaviour (Rousseau 1988; Rentsch 1990), turnover intentions
(Rousseau 1988; Rentsch 1990), job satisfaction (Mathieu, Hoffman & Farr
1993; James & Tetrick 1986; James & Jones 1980), individual job performance
(Brown & Leigh 1996; Pritchard & Karasick 1973), and organizational
performance (Lawler et al. 1974; Patterson et al. 2004). Furthermore, Glisson
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
40
and James (2002) have proved that organizational commitment and job
satisfaction also found to be closely related (Imran et al. 2010).
On the other hand, some of the characteristic features of a healthy
organisational climate were elucidated in Mullins (2005) and Punto (2009).
They emphasised that the need of integration of organisational goals and
personal goals and recognition of people’s needs and expectations at work and
individual differences and attributes. The necessity of equitable systems of
rewards based on positive recognition; concern for the quality of working life
and job design; opportunities for personal development and career progression;
and a sense of identity with, and loyalty to, the organisation and a feeling of
being a valued and important member. Every incident treated as a learning
opportunity and people have a sense of satisfaction in their work; and finally,
people feel that they are cared for and have a sense of belonging. However, what
is far more important than healthiness of an organization especially in service
sector is the issue of service agility and flexibility.
Bessant et al. (2001:31) offer the following definition of agility cited in
(S. Brown et al. 2005): Agility in manufacturing involves being able to respond
quickly and effectively to the current configuration of market demand, and also
to be proactive in developing and retaining markets in the face of extensive
competitive forces. Moreover, they offer an emerging model of agile
manufacturing capabilities, consisting of four key interlinked parameters: agile
strategy, agile processes, agile linkages, and agile people developing a flexible
and multi-skilled workforce, creating a culture that allows initiative, creativity
and supportiveness to thrive throughout the organization.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
41
Successful services are dynamic organizations that can adapt to changes
in the quantity and nature of demand. How well a service can adapt depends
greatly on the flexibility inbuilt in it. Flexibility also might be called "designing
for the future" (]ames A. Fitzsimmons & M. Fitzsimmons 2006). Therefore, a
positive OC is important job resource for organizations as it helps them cope
with demanding interactions with customers.
2.2.7. Factors affecting Organizational Climate
Several authors on literatures, one way or another, tried to explain that
OC is affected by several factors both internal & external: Internal -
Organizational structure, Individual responsibility, Rewards, Risk taking, and
Conflict & Tolerance. External - Physical environment, Leadership style,
Organizational politics, Characteristics of members, and Organizational size &
structure. Most importantly, Climate is somewhat used interchangeably with the
term psychological environment and is concerned with the structure, autonomy,
reward structure, tolerance and conflict, need for innovation, warmth, support,
consideration, job stress, job satisfaction, leadership style etc (Raza 2010).
Hence, we can easily understand that OC construct is used to describe the
psychological structure of organization and their sub units.
Table 2-2 portrays some of the compiled types of dimensions used while
studying OC by various researchers at different times.
42
Table 2-2: Research Summary Made on OC by various researchers
No Authors Variables used in their research Main findings Thesis Statement
1 Forehand &
Gilmer (1964)
1) Size 2) Structure 3) System Complexity 4) Leadership Style, and 5) Goal directions
They viewed climate as an objective property of the organization and found that firm’s climate cannot be affected by fluctuations in employee behaviours such as turnover
It has proved how OC influence the behaviour of people in the organization
2 Litwin & Stringer (1968)
1) Structure 2) Responsibility 3) Reward 4) Risk 5) Warmth, and 6) Support
They viewed climate as the perceived attributes of an organization and its sub-systems and they found that over time, the climates became increasingly differentiated consistent with the leader’s style.
Their work more focused on managerial styles and accounts for variance of climate perceptions
3 Schneider &
Snyder (1975)
1) Support 2) structure 3) harmony 4) Concern 5) agent independence, and 6) morale
They found that climate and satisfaction measures are correlated for people in some positions in the agencies and people agree more on the climate of their agency than they do on their satisfaction.
Their work is more concerned with the interpositions agreement on climate perception
4
Jones & James (1979)
1) leadership facilitation and support 2) work group cooperation, friendliness, and warmth 3) conflict and ambiguity 4) professional and organizational spirit 5) job challenge, importance, and variety 6) mutual trust
They proved that employee evaluations of OC have been related to the perceptions of customers who purchased the organization’s services or products.
They delineated the approaches to the study of OC using organizational & individual attributes.
5 Preziosi (1980)
1) Purpose 2) Structure 3) Leadership 4) Relationship 5) Reward 6) Helpful Mechanisms, and 7) Propensity for Change
He develop an organizational diagnosis questionnaire that helps in analysing the relationships among variables that influence organizational functioning.
It is based on Weisbord’s six box model and measures employee’s perception
6 Lehman et al.(2002)
1) Clarity of mission and goals 2) Staff cohesiveness 3) Staff cohesiveness 4) Openness of communication 5) Stress, and 6) Openness to change
A comprehensive assessment of organizational functioning and readiness for change (ORC) was developed based on a conceptual model and previous findings on transferring research to practice
Intended to device a measurement tool based on motivation and personality attributes
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
43
No Authors Variables used in their research Main findings Thesis Statement
7 Patterson et al.
(2005)
1) Autonomy 2) Clarity of Organizational Goals 3) Efficiency 4) Effort 5) Formalization 6) Innovation & Flexibility 7) Integration 8) Outward focus 9) Participation 10) Performance Feedback 11) Pressure to produce 12) Quality 13) Reflexivity 14) Supervisory Support 15) Tradition 16) Training, and 17) Welfare
They developed and validated a comprehensive multidimensional OC Measure (OCM), based upon Quinn and Rohrbaugh’s Competing Values model that help to examine organizational change processes.
Offers researchers a relatively comprehensive and flexible approach to the assessment of organizational members’ experience
8 Saad, Juhdi, & Samah (2008)
1) Support from Organization 2) Work-Family Conflict 3) Relationship With Peers 4) Self Competence 5) Impact on Job 6) Meaningfulness of Job 7) Optimism on Organizational Change 8) Autonomy 9) Access to Resources, and 10) Time Control
They found that only three variables (meaningfulness of job, optimism on organizational change, and autonomy) are significantly related to Job Satisfaction explaining 28.8% of the variance in Job Satisfaction.
It gives insight into employee’s perception of their work-life quality
9 Cooil et al.
(2009)
1) Autonomy 2) Integration 3) Involvement 4) Supervisory Support 5) Training 6) Welfare 7) Clarity of Goals 8) Efficiency 9) Performance Feedback 10) Effort and Pressure to produce
OC is positively correlated with all positive perceptions and most highly correlated with the perceptions of well-defined objectives/tasks, necessary personal resources, and with perceptions relating to teamwork using a multivariate partial least squares (MPLS) approach
Their approach was geared to the three business outcomes: employee retention, customer satisfaction, and scaled revenue.
10
Adenike (2011) adapted from Nicholson and Miljus (1992)
1) Management or leadership styles 2) Participation in decision making 3) Provision of challenging jobs to employees 4) Reduction of boredom and frustration 5) Provision of benefits 6) Personnel policies 7) Provision of good working conditions, and 8) Creation of suitable career ladder
The finding showed a significant positive relationship between OC and employee job satisfaction of academic staff from a private Nigerian University
Their work was a symbolical and good start for developing nations to build upon especially in African context.
Source: Researcher’s own compilation
44
2.3. CRITICAL REVIEW OF EMPIRICAL STUDIES
2.3.1. Organizational Climate and Organizational Effectiveness
Since OC represents the way, in which its members perceive the
organization, from a practical point of view, climate usually assessed by
measuring employee’s perceptions of specific aspects of dimensions of the
organization. From public sectors point of view, the OC is the blend of top
leadership’s behaviour and employee’s behaviour. Most empirical studies have
used an aggregate unit of analysis, such as the work group, department, or
organization (Patterson et al. 2005). The rationale behind aggregating
individual data to a unit level is the assumption that organizational collectives
have their own climate and that these climates identified through the
demonstration of significant differences in climate between units and significant
agreement in perceptions within units.
In this regard, empirical studies on the process of how climate
perceptions are formed are scanty, indirect and mostly anecdotal and numerous
studies have shown OC as indisputably a major contributing factor for changing
employees’ attitudes and behaviour towards superior job performance and
satisfaction (Vijayakumar 2007). Some studies have focused on perceptually
based measures of climate dimensions and job satisfaction. For instance,
Adenike (2011), focusing on academic staffs of private Nigerian University,
sampled size of 384 proved in his finding that there is a significant positive
relationship (r = 0.671; df = 293, 0.01 sig. level) between OC and job
satisfaction. Adenike (2011) also showed a significant positive relationship
between these two variables and the findings show that 85.7% of the variability
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
45
in OC explained by boredom and frustration, personnel policies, working
conditions and participation in decision-making.
In the same country Nigeria, a study conducted by Idogho (2006) on
academic staff of Edo state Universities indicated the existence of significant
difference among academic staff [F (2, 4091) = 48.46, P < 0.05], among
universities in their perception of OC [F (3, 4091) = 12.545, P < 0.05)].
Moreover, the male and female academic staff of universities, do not differ in
their perception of OC [F (1, 4092) = 1.530, P > 0.05)] and no difference exist
between young and older academic staff in their perception of OC [F (1, 4092) =
0.002, P > 0.05)].
On the other hand, Cooil et al. (2009) proved that OC is significantly and
positively correlated with both retention and customer satisfaction using ten
dimensions of OC. According to (Imran et al. 2010) who relied only on the two
open system and rational goal models from CVM in his research to determine
innovative work behavior has proved that OC has highly significant positive
relation with its subscales open system model (r = 0.82, p < 0.01).
In Another Pakistan work environment (Iqbal 2007) has proved that
statistically significant correlations between some dimensions of OC and
organizational commitment (r = 0.38, P < 0.01 and r = 0.24, P < 0.01 for
Challenge & Involvement and Trust & Openness dimensions respectively)
demonstrating its strong implications for the literature of organizational
employees perception in developing countries. Therefore, several researchers
have tried to measure the perception of OC using their own specific dimensions
in their work and Prior research suggests that there are personal and
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
46
organizational factors that serve as antecedents to organizational commitment
(Avolio et al. 2004).
2.3.2. Validation of instruments
The OC measurement instrument that is intended to be used in this study
is well addressed through the rigorous methods the researcher followed in that a
sample of 6,869 employees across 55 manufacturing organizations was used in
the formulation process (Patterson et al. 2005). All the scales contained within
the measure had acceptable levels of reliability and were factorially distinct.
Reliability is concerned with the research and results in terms of replication (J.
Hussey & R. Hussey 1997). If the prime objective of a study is to understand the
OC and it is likely that another researcher following the same method with the
same data would offer similar conclusions, even though the opinions of a
different researcher would add a degree of subjectivity. This is because the
review method is a summary and synthesis of existing empirical research, thus
reliability would be reasonably high. Similar outcomes should be obtainable if
the research is repeated.
The concept of validity refers to the probability that an assertion or
finding is true (Dooley 1984). The unrelenting effort made to review research
from peer-reviewed research journals, the validity of the data set would be quite
accurate in representing organisational climate.
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
47
CHAPTER III – OVERVIEW OF THE ANRS
3.1. INTRODUCTION
This chapter highlights some of the socio-demographic characteristics of the
regional state in relation to its administrative structures, natural beauty,
economic activity, human resource and with a particular emphasis on the
undergoing organizational civil service reform program.
3.2. DEMOGRAPHIC SITUATION
ANRS is one among the nine and the third largest regional member
states established in Ethiopian Constitution by article 47 (FDRE 1995) and
decentralized into 10 administrative zones, 167 woredas (districts) and 3411
kebeles (localities)(BoFED 2011). The region covers an area of 157, 076 km2, and
covering 15% of the country’s total area. It has a population of 17,221,976 (Male
50.18% and Female 49.82 %) and the economically active and inactive
population stands at 49.4% and 21.9% respectively (CSA 2007). In the same
report it is indicated that out of 8,513,439 economically active population 98.1%
are employed and unemployed rate stands at 1.9 (urban 14.3 and rural 0.6).
The age structure of the population in the region, 42.59 percent are age
14 and under and those who are greater than or equal to 65 constitute 3.97
percent of the population. Hence, the young age dependency ratio is 79.69 and
that of the old age is 8.53 percent which make the societal dependency ratio
87.13 per cent (BoFED 2009).
3.3. NATURAL BEAUTY
The region is known for its historical and tourist attractions with about
70% of international and 80% of domestic tourists flow to the region (BoCTPD
2011). In the same report, it was disclosed that the three main tourist
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
48
destinations are Bahirdar, Gonder and Lalibella. The flow of domestic tourists
flow have showed a staggering 21 fold increment from 2002 (33,792) to 2010
(708,399) while the international tourists flow has increased steadily by 4 fold
from 2002 (22,589) to 2010 (86,772) during the eight years respectively
(BoCTPD 2010). However, still there is much to remain to reap out of the
immense potential and natural beauty of the region’s expositions.
3.4. ECONOMIC ACTIVITY
Concerning the economic activity rate or labour force participation rate,
which is computed as the percentage of the economically active population to
the total of economically active and inactive population, the region’s activity rate
accounts 61.0 which is above the national activity rate of 60.3 percent (CSA
2011). This means out of 100 persons aged ten years and above 61 persons is
engaged or available to participate in the production of goods and services.
While the remaining 39 persons are not ready to do so due to various reasons
such as education, illness, pregnancy, old age…etc.
3.5. HUMAN RESOURCE
In the regional state, there are 170,951 civil servants (Male 63.2% and
Female 36.8%) working at various government institutions of which; 13.9% are
graduate and above, 71.5% are undergraduates of diploma and certificates, and
the remaining 14.6% are high schools and undefined (BoFED 2011). The same
report has indicated that at regional level there are 4,276 civil servants working
in forty-six Public Institutions out of which currently three institutions have
been merged due to the organizational restructuring process.
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3.6. THE CIVIL SERVICE REFORM
Having noting the need to reform the overall public institutions, the
regional government has embarked intensively on BPR initiatives ever since the
program launched at National level in 2001.
3.6.1. The Public Service Capacity Building Program
The Civil Service Reform Program (CSRP) which is one of the six country
wide reform sub-programs under PSCAP started implementation in 1996/1997
in response to weaknesses in the administrative system and aims to introduce
new and improved legislation and working systems to simplify administrative
processes as well as ensuring effectiveness, efficiency, and ethical behaviour in
performance and service delivery. The PSCAP which was part of the GTP gave
especial focus on reform activities, mobilizing the civil servants to bring
dramatic improvements in the civil service, ensure zero tolerance to rent-
seeking attitude and practice, as well as deliver effective and efficient service
delivery to the customers.
In her results analysis report of the National project PSCAP (November
2004 to April 2009) Araya, (2009) stated that all the seven sub-program
components that run under CSRP progressed well in some aspects and failed to
bring the expected results. The components are: i) strengthening the capacity of
CSRP coordinating structures; ii) improving governance of financial resource
management; iii) improving governance of human resource management; iv)
improving performance and public service delivery; v) improving accountability
and transparency; vi) strengthening top management systems; and vii) building
the policy and institutional governance capacity of the four least developed
regional states.
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The same report by Araya has also revealed that Amhara region has
demonstrated a good start in rolling out the sub-programs and especially
pioneer in implementing the BPR, which in later stage lags behind from its
determined targets and outcomes. Another report that investigates the
weaknesses in service delivery on 6,944 samples (Amhara Management
Institute, 2007) has attempted to identify the causes, which keep public
servants from observing the conduct norms specific to their field.
These causes are listed as follows:
a) The lack of accountability and transparency (29%);
b) Lack of fairness in placement (28%);
c) The lack of shared vision and a clear mission (11%);
d) The lack of Involvement (20%);
e) The low level of the leadership capacity (25%) and public servants (9%);
f) Lack of ownership of the public servants (24%);
g) The low level of morality when it comes to public servants (17%); and
h) Attitudinal problems (16%)
3.6.2. Business Process Reengineering
Reengineering is the fundamental rethinking and radical redesign of
work processes to achieve dramatic improvements in critical, contemporary
measures of performance such as cost, quality, service and speed (Hammer &
Champy 1993). Unfortunately the number of BPR successes where expectations
have been fully realized is said to be quite small (E. Cameron & Green 2009).
BPR therefore offers the very attractive prospect of radically transforming key
processes by starting from a very blank sheet. The downside comes during
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implementation, when resistance from those who have not been involved may
be encountered.
According to the GTP annual progress report released recently by
MoFED (2012) clearly stated that “though encouraging efforts have been done
in capacity building and good governances in the civil service, there were certain
weaknesses observed. These include among others that institutional
transformation is not progressing at the expected level and rent-seeking
attitudes and practices are still the key constraining challenges facing the civil
service.” That is why to solve the problems of hierarchical bureaucracy with
many non-value adding works/staffs/positions, nepotism, etc; BPR is seriously
implemented in all public institutions gradually. The three elements that
characterize work processes are the inputs, the processing and the outcome. The
problematic part of the process is processing (Zigiaris 2000). Work process
reengineering mainly intervenes in the processing part, which reengineered in
order to become less time and money consuming.
The organizational change program that the government had embarked
upon was once evaluated in connection to determining the extent of
implementation of BPR using rigorous criteria developed by the then regional
Bureau of Capacity Building and Civil Service (Amare et al. 2010). The
evaluation team constitute 24 individuals pooled from 17 public institutions.
The criteria used for the evaluation revolve around nine managerial issues.
These were; Planning, Efficiency, Effectiveness, Communication, Transparency,
Accountability, Rule of law, Participatory, and Ethics. The result of the
assessment report was used for determining the sampling frame of this study as
mentioned in chapter two.
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CHAPTER IV: DISCUSSION AND ANALYSIS
4.1. INTRODUCTION
This chapter focuses on research results. The purpose of the chapter is to
explain the results from the analysis conducted using SPSS (Statistical Package
for the Social Sciences), on the data obtained from the respondents via the
questionnaires.
Following this introduction, Section 4.2 presents the descriptive statistics
of the measured demographic variables. Section 4.3 shows the results of validity
testing using principal component analysis to validate the constructs. Section
4.4 describes reliability analysis using Cronbach’s alpha to analyse the
constructs, and Section 4.5 provides details of hypothesis testing using
statistical tests of Multiple Linear Regression, Pearson’s Product-Moment
Correlation Coefficients, Independent-Samples t-test, and One-Way ANOVA
analysis.
4.2. DESCRIPTIVE STATISTICS: AN OVERVIEW
Descriptive Statistics, the simplest level of quantitative analysis, is used
to summarize or display quantitative data and is limited to, at most, the analysis
of frequencies, average and ranges (Collis & Roger Hussey 2003; Lancaster
2005). The demographics of respondents include gender, level of education,
tenure, and work processes in which they are working.
As part of this study, 348 questionnaires were distributed to 6 public
organizations in ANRS and 260 questionnaires were returned, an effective
response rate of 75%. Of the returned questionnaires, nineteen were found to be
missing responses to one or more questions. The missing responses were
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replaced with the mean value of the variables based on the valid responses (Hair
et al. 2003).
4.2.1. Demography of Respondents
4.2.1.1. Gender
Table 4-1 shows that, of the 260 respondents, 169 were male and 91
were female. Males made up the majority of respondents at 65% while females
were 35%. The ratio of males to females in this sample is 65 to 35.
The sample is similar to the ratio of males and females (Male 63.2% and
Female 36.8%) in the distribution of ANRS civil servants (Bureau of Finance
and Economic Development, 2011), which covers workers at regional level. As
such, the sample is representative of the public work force in ANRS.
Table 4-1: Descriptive Statistics for Gender of Respondents
Frequency Percent Valid Percent
Cumulative Percent
Valid Male 169 65.0 65.0 65.0 Female 91 35.0 35.0 100.0 Total 260 100.0 100.0
Source: Researcher’s own computation
4.2.1.2. Business Processes
Table 4-2 shows that, of the 260 respondents, 149 working in core
process and 111 working in support process. Respondents from core process
made up the majority of respondents at 57.3% while respondents from support
process were 42.7%. The ratio of respondents in core process to support process
in this sample is 57 to 43.
The sample is similar to the ratio of the working force available (In Core
process 59% and in Support process 41%) in the distribution of ANRS civil
servants (Bureau of Civil Service 2010), which covers workers public institutions
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at regional level. As such, the sample is representative of the proportion of work
processes in ANRS.
Table 4-2: Descriptive Statistics for Work processes of Respondents
Frequency Percent Valid Percent
Cumulative Percent
Valid Core Process 149 57.3 57.3 57.3 Support Process 111 42.7 42.7 100.0 Total 260 100.0 100.0
Source: Researcher’s own computation
4.2.1.3. Education
Table 4-3 shows the distribution of respondents’ level of Education as
follows: 10th, 12th & below (5.2%), Certificate (3.1%), Diploma (20.0%), Bachelor
Degree (52.7%) and 2nd Degree & above (16.2%). 8 respondents (3.1%) did not
state their education level.
The sample is a little different to the ratio of the education level (13.9%
are graduate and above and 71.5% are undergraduates of diploma and
certificates and the remaining 14.6% are high schools and undefined) in the
distribution of ANRS civil servants (BoFED 2011), which covers workers of
public institutions at regional level. This might be explained by the expansion of
the education sector compounded by the fast economic growth that helped were
graduating from 2010 onwards. As such, the sample is representative of the
proportion of level education in ANRS.
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Table 4-3: Descriptive Statistics for Education of Respondents
Frequency Percent Valid Percent
Cumulative Percent
Valid 10th,12th & Below 13 5.0 5.2 5.2 Certificate 8 3.1 3.2 8.3 Diploma 52 20.0 20.6 29.0 Bachelor Degree 137 52.7 54.4 83.3 2nd Degree & Above 42 16.2 16.7 100.0 Total 252 96.9 100.0
Missing 0 8 3.1
Total 260 100.0
Source: Researcher’s own computation
4.2.1.4. Tenure
Table 4-4 shows the distribution of respondents’ tenure as follows:
Below 5 years (42.4%), 5 to 10 years (27.2%), 11 to 15 years (11.6%), 16 to 20
years (8.0%) and above 20 years (10.8%). 10 respondents (3.8%) did not want
to state their tenure.
Table 4-4: Descriptive Statistics for Tenure of Respondents
Frequency Percent Valid Percent
Cumulative Percent
Valid Below 5 Years 106 40.8 42.4 42.4 5 to 10 Years 68 26.2 27.2 69.6 11 to 15 Years 29 11.2 11.6 81.2 16 to 20 Years 20 7.7 8.0 89.2 Above 20 Years 27 10.4 10.8 100.0 Total 250 96.2 100.0
Missing 0 10 3.8
Total 260 100.0
Source: Researcher’s own computation
4.2.2. Descriptive Statistics
The key descriptive statistics are mean, standard deviation, skewness and
kurtosis (Field 2009; Veaux et al. 2008; Collis & Roger Hussey 2003). Standard
deviation is an indication of the dispersion of the data (De Veaux et al. 2008).
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Positive values of skewness indicate too many low scores in the distribution,
whereas negative values indicate a build-up of high scores. Positive values of
kurtosis indicate a pointy and heavy-tailed distribution, whereas negative values
indicate a flat and light-tailed distribution (Field 2009).
Skewness measures the degree to which cases are clustered towards one
end of an asymmetry distribution. In general, the further the value of skewness
is from zero, the more likely it is that the data are not normally distributed
(Field 2009).
Kurtosis measures the level of peakiness in a histogram (De Veaux et al.
2008). High peaks have positive kurtosis, while flatter distributions have
negative kurtosis (De Veaux et al. 2008). Skewness and kurtosis are converted
to z-scores using the following formulas (Field 2009:139)
Zskewness = 𝑆−0𝑆𝐸𝑠𝑘𝑒𝑤𝑛𝑒𝑠𝑠
Zkurtosis = 𝐾−0𝑆𝐸𝑘𝑢𝑟𝑡𝑜𝑠𝑖𝑠
An absolute value of z-scores greater than 1.96 is significant at p < .05,
above 2.58 is significant at p < .01 and absolute values above about 3.29 are
significant at p < .001. Large samples will give rise to small standard errors and
so when sample sizes are big, significant values arise from even small deviations
from normality therefore, in large samples this criterion should be increased to
the 2.58(Field 2009: 139).
For a large sample (200 or more) it is more important to look at the
shape of the distribution visually and to look at the value of the skewness and
kurtosis statistics rather than calculate their significance (Field 2009: 139).
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Tables 4-5, 4-6 & 4-7 show the descriptive statistics for the variables:
Integration, Involvement, Supervisory Support, Training, Welfare, Innovation
& Flexibility, Outward Focus, Reflexivity, HRV, OSV and OE.
Table 4-5 shows that the Integration variable has a mean of 3.396, a
median of 3.50, and a standard deviation of 0.997. It is a negatively skewed
distribution (-0.383) and with negative kurtosis of (-0.479). The Involvement
variable has a mean of 3.07, a median of 3.00, and a standard deviation of
0.912. It is a negatively skewed distribution (-0.105) and with negative kurtosis
of (-0.630). The Supervisory Support variable has a mean of 3.15, a median of
3.20, and a standard deviation of 1.02. It is a negatively skewed distribution (-
0.205) and with negative kurtosis of (-0.765). The Training variable has a mean
of 2.91, a median of 2.67, and a standard deviation of 0.974. Its skewness is
almost zero and with negative kurtosis of (-0.573). The Welfare variable has a
mean of 2.87, a median of 3.00, and a standard deviation of 1.05. It is a
negatively skewed distribution (-0.118) and with negative kurtosis of (-0.865).
Table 4-5: Descriptive Statistics for Sub-scales of HRV
Integration Involvement
Supervisory
Support
Emphasis on
Training
Welfare
N Valid 260 260 260 260 260 Mean 3.396 3.07 3.15 2.91 2.87 Median 3.500 3.00 3.20 2.67 3.00 Std. Deviation .997 .912 1.02 .974 1.05 Skewness -.383 -.105 -.205 -.002 -.118 Std. Error of Skewness .151 .151 .151 .151 .151 Kurtosis -.479 -.630 -.765 -.573 -.865 Std. Error of Kurtosis .301 .301 .301 .301 .301 Zskewness -2.54 -0.70 -1.36 -0.01 -0.78 Zkurtosis -1.59 -2.09 -2.54 -1.90 -2.87 Not Significant at P < .01 P < .01 P < .01 P < .05 P < .001
Source: Researcher’s own computation
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Table 4-6 shows that the Innovation & Flexibility variable has a mean of
2.999, a median of 3.00, and a standard deviation of 0.84. It is a negatively
skewed distribution (-0.109) and with negative kurtosis of (-0.421). The
Outward Focus variable has a mean of 3.695, a median of 4.00, and a standard
deviation of 0.774. It is a negatively skewed distribution (-0.474) and with
negative kurtosis of (-0.194). The Reflexivity variable has a mean of 3.39, a
median of 3.33, and a standard deviation of 0.84. It is a negatively skewed
distribution (-0.476) but with positive kurtosis of (0.076).
Table 4-6: Descriptive Statistics for Sub-scales of OSV
Innovation & Flexibility
Outward Focus
Reflexivity
N Valid 260 260 260 Mean 2.9994 3.6949 3.3949 Median 3.0000 4.0000 3.3333 Std. Deviation .84318 .77447 .84061 Skewness -.109 -.474 -.476 Std. Error of Skewness .151 .151 .151 Kurtosis -.421 -.194 .076 Std. Error of Kurtosis .301 .301 .301 Zskewness -0.72 -3.14 -3.15 Zkurtosis -1.40 -0.64 0.25 Not Significant at P < .05 P < .001 P < .001
Source: Researcher’s own computation
Table 4-7 shows that the HRV variable has a mean of 3.06, a median of
3.05, and a standard deviation of 0.718. It is a positively skewed distribution
(0.058) and with negative kurtosis of (-0.462). The OSV variable has a mean of
3.01, a median of 3.00, and a standard deviation of 0.867. It is a negatively
skewed distribution (-0.114) and with negative kurtosis of (-0.479). The OE
variable has a mean of 3.49, a median of 3.67, and a standard deviation of 1.06.
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It is a negatively skewed distribution (-0.49) and with negatively kurtosis of (-
3.22).
Table 4-7: Descriptive Statistics for HRV, OSV and OE
HRV OSV OE N Valid 260 260 260 Mean 3.0595 3.0085 3.4885 Median 3.0526 3.0000 3.6667 Std. Deviation .71756 .86694 1.05829 Skewness .058 -.114 -.490 Std. Error of Skewness .151 .151 .151 Kurtosis -.462 -.479 -.322 Std. Error of Kurtosis .301 .301 .301 Zskewness 0.38 -0.75 -3.25 Zkurtosis -1.53 -1.59 -1.07 Not Significant at P < .05 P < .05 P < .001
Source: Researcher’s own computation
Table 4-8 shows Case wise diagnostics for the sample size of 260. It is
reasonable to expect about 13 cases (5%) to have Standardized Score outside of
the limit of +/- 1.96 and expect about 3 cases (1%) to have Standardized Score
outside of the limit of +/- 2.58 (Field 2009). Hence, we can see that we have 17
cases (7%) only for Innovation & Flexibility, which is outside of the limits. There
are no cases that falls outside the limit of +/- 2.58. This indicates that the
sample can be assumed as normally distributed and statistically analyzed with
99% confidence level. Therefore, our sample is within 1% error of what we
would expect.
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Table 4-8: Case wise diagnostics of constructs
Constructs z-scores outside +/-1.96
% z-scores outside +/-2.58
% z-scores outside +/-3.29
%
Integration 7 3% 0 0 Involvement 10 4% 0 0 Supervisory Support 5 2% 0 0 Emphasis on Training 8 3% 0 0 Welfare 7 3% 0 0 Innovation & Flexibility 17 7% 0 0 Outward Focus 12 5% 2 1% 0 Reflexivity 10 4% 0 0 OE 12 5% 0 0 HRV 13 5% 1 1% 0 OSV 12 5% 0 0
Sample size 260 100% Source: Researcher’s own computation
4.2.3. Summary
In summary, the majority of the respondents were male (65%). The
majority of respondents are working in Core work process (57.3%) and the
majority of respondents were holders of Bachelor degree and above (71.1%). The
majority of respondents have worked in the present institution more than 5
years (57.6%). The means, standard deviations, skewness and kurtosis of the
eleven variables were presented. (The plots of Histogram, Normal Q - Q and Box
plots are annexed (see APPENDIX- D).
4.3. VALIDITY ANALYSIS
The psychometric properties of a measurement are important because it
gives an indication of the effectiveness of the measurement utilized. It was
determined by measuring the reliability and validity. Validity is the extent to
which an instrument measures what it claims to.
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Principal component analysis is a psychometrically sound procedure, it is
conceptually less complex than factor analysis, and it bears numerous
similarities to discriminant analysis (Field 2009). In a reliable scale, all items
should correlate with the total.
Factors with a few low loadings should not be interpreted unless the
sample size is 300 or more (Field 2009) as communalities become lower the
importance of sample size increases. In the worst scenario of low
communalities (well below 0.5) and a larger number of underlying factors
MacCallum, Widaman, Zhang, & Hong, (1999) recommended samples above
500. However, as Field (2009) pointed out that a sample of around 300 or more
will probably provide a stable factor solution. Typically, researchers take a
loading of an absolute value of more than 0.3 to be important (Field 2009).
Since the communality is a measure of the proportion of variance
explained by the extracted factors, Stevens (2002) as mentioned in Field (2009:
644) recommends that based on an alpha level of .01 (two-tailed), for a sample
size of 200 it should be greater than 0.364, for 300 it should be greater than
0.298. On the other hand Hair et al. (1998) suggested that a cut-off loading
value of 0.50 be adopted because of the large number of variables being
analyzed. Therefore, a cut-off loading value of 0.5 was used for this analysis.
4.3.1. Human Relation Values
A principal component analysis was conducted using SPSS on the HRV scale to
examine its proposed multi-factor structure. The results of the principal
components analysis annexed (see APPENDIX- E) and according to the
“Eigenvalue > 1” rule, there are five significant factors named as Supervisory
Support, welfare, integration, involvement and Training. It explains a total of
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65.218% of the total variance in the nineteen items discarding items revQn1,
Qn2, revQn8, revQn9 & Qn10 due to their non significant correlation with any
other items and low communality (below 0.5).
Item loading for the multi Factor for HRV that contains the item loading
showed that all of the items are loaded strongly onto their respective
components (See APPENDIX- F). This suggests a multi-factor structure with
five sub-scales is extracted for the HRV scale. Eight items loaded on the first
factor, which is characterized by Supervisory Support & Welfare sub-scales
together, four items loaded on the second factor solicited from Emphasis on
Training, welfare & involvement sub-scales, three items explicitly characterized
by integration sub-scale loaded on the third factor, three items solicited from
involvement and training sub-scales loaded on the fourth factor and lastly, one
item from training sub-scale loaded on the fifth factor strongly. All of the items
have loadings above the 0.5 level, as recommended by Hair et al. (1998). KMO
value of .914, which is above the cut-off point of 0.5 recommended by Kaiser
(1974) and close to 1 indicates that patterns of correlations are relatively
compact and so factor analysis should yield distinct and reliable factors.
4.3.1.1. Integration
A principal component analysis was conducted using SPSS on the
Integration scale to examine its proposed single-factor structure. The results of
the principal components analysis annexed (see APPENDIX- E ) and according to
the “Eigenvalue > 1” rule, there is only one significant factor, Integration, and it
explains 75.140% of the total variance in the two items discarding items revQn1,
Qn2 & revQn5 due to their non significant correlation with any other items and
low communality (below 0.5).
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Item loading for the Single Factor for Integration that contains the item
loading, showed that all of the items are loaded strongly onto the first
component (see APPENDIX- F). This suggests a single-factor structure for the
Integration scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .5, which is exactly equal to
the cut-off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates
that patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.1.2. Involvement
A principal component analysis was conducted using SPSS on the
Involvement scale to examine its proposed single-factor structure. The results of
the principal components analysis annexed (see APPENDIX- E ) and according to
the “Eigenvalue > 1” rule, there is only one significant factor, Involvement, and
it explains 56.517% of the total variance in the three items discarding items
revQn7, revQn8 & revQn11 due to their non significant correlation with any
other items and low communality (below 0.5).
Item loading for the Single Factor for Involvement that contains the item
loading, showed that all of the items are loaded strongly onto the first
component (see APPENDIX- F). This suggests a single-factor structure for the
Involvement scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .635, which is above the cut-
off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates that
patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
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4.3.1.3. Supervisory Support
A principal component analysis was conducted using SPSS on the
Supervisory Support scale to examine its proposed single-factor structure. The
results of the principal components analysis annexed (see APPENDIX- E) and
according to the “Eigenvalue > 1” rule, there is only one significant factor,
Supervisory Support, and it explains 69.697% of the total variance in the five
items.
Item loading for the Single Factor for Supervisory Support that contains
the item loading, showed that all of the items are loaded strongly onto the first
component (see APPENDIX- F). This suggests a single-factor structure for the
Supervisory Support scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .874, which is above the cut-
off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates that
patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.1.4. Emphasis on Training
A principal component analysis was conducted using SPSS on the
Emphasis on Training scale to examine its proposed single-factor structure.
The results of the principal components analysis annexed (see APPENDIX- E)
and according to the “Eigenvalue > 1” rule, there is only one significant factor,
Emphasis on Training, and it explains 62.106% of the total variance in the three
items.
Item loading for the Single Factor for Emphasis on Training that
contains the item loading, showed that all of the items are loaded strongly onto
the first component (see APPENDIX- F). This suggests a single-factor structure
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for the Emphasis on Training scale. All of the items have loadings above the 0.5
level, as recommended by Hair et al. (1998). KMO value of .623, which is above
the cut-off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates
that patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.1.5. Welfare
A principal component analysis was conducted using SPSS on the
Welfare scale to examine its proposed single-factor structure. The results of the
principal components analysis annexed (see APPENDIX- E) and according to the
“Eigenvalue > 1” rule, there is only one significant factor, Welfare, and it
explains 77.705% of the total variance in the three items discarding one item
revQn21 due to its non significant correlation with any other items and low
communality (below 0.5).
Item loading for the Single Factor for Welfare that contains the item
loading, showed that all of the items are loaded strongly onto the first
component (see APPENDIX- F). This suggests a single-factor structure for the
Welfare scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .708, which is above the cut-
off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates that
patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.2. Open System Values
A principal component analysis was conducted using SPSS on the OSV
scale to examine its proposed multi-factor structure. The results of the principal
components analysis annexed (see APPENDIX- E) and according to the
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“Eigenvalue > 1” rule, there are two significant factors, Innovation & Flexibility
and Outward Focus, and altogether explain 65.717% of the total variance in the
thirteen items discarding items Qn30, revQn31, Qn35, Qn36 and Qn37 due to
their non significant correlation with any other items and low communality
(below 0.5).
Item loading for the Single Factor for OSV that contains the item loading,
showed that all of the items are loaded strongly onto their respective
components (see APPENDIX- F). This suggests a multi-factor structure with
two sub-scales is extracted for the OSV scale. Five items loaded on the first
factor, which is explicitly characterized by Innovation & Flexibility sub-scale,
three items loaded on the second factor explicitly characterized by the Outward
Focus sub-scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .804, which is above the cut-
off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates that
patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.2.1. Innovation & Flexibility
A principal component analysis was conducted using SPSS on the
Innovation & Flexibility scale to examine its proposed single-factor structure.
The results of the principal components analysis annexed (see APPENDIX- E)
and according to the “Eigenvalue > 1” rule, there is only one significant factor,
Innovation & Flexibility, and it explains 61.732% of the total variance in the Six
items.
Item loading for the Single Factor for Innovation & Flexibility that
contains the item loading, showed that all of the items are loaded strongly onto
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the first component (see APPENDIX- F). This suggests a single-factor structure
for the Innovation & Flexibility scale. All of the items have loadings above the
0.5 level, as recommended by Hair et al. (1998). KMO value of .856, which is
above the cut-off point of 0.5 recommended by Kaiser (1974) and close to 1
indicates that patterns of correlations are relatively compact and so factor
analysis should yield distinct and reliable factors.
4.3.2.2. Outward Focus
A principal component analysis was conducted using SPSS on the
Outward Focus scale to examine its proposed single-factor structure. The
results of the principal components analysis annexed (see APPENDIX- E) and
according to the “Eigenvalue > 1” rule, there is only one significant factor,
Outward Focus, and it explains 66.835% of the total variance in the four items
discarding one item revQn31 due to its non significant correlation with any
other items and low communality (below 0.5).
Item loading for the Single Factor for Outward Focus that contains the
item loading, showed that all of the items are loaded strongly onto the first
component (see APPENDIX- F). This suggests a single-factor structure for the
Outward Focus scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .652, which is above the cut-
off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates that
patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.2.3. Reflexivity
A principal component analysis was conducted using SPSS on the
Reflexivity scale to examine its proposed single-factor structure. The results of
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the principal components analysis annexed (see APPENDIX- E ) and according to
the “Eigenvalue > 1” rule, there is only one significant factor, Reflexivity, and it
explains 65.389% of the total variance in the three items.
Item loading for the Single Factor for Reflexivity that contains the item
loading, showed that all of the items are loaded strongly onto the first
component (see APPENDIX- F). This suggests a single-factor structure for the
Reflexivity scale. All of the items have loadings above the 0.5 level, as
recommended by Hair et al. (1998). KMO value of .685, which is above the cut-
off point of 0.5 recommended by Kaiser (1974) and close to 1 indicates that
patterns of correlations are relatively compact and so factor analysis should
yield distinct and reliable factors.
4.3.3. Organizational Effectiveness
A principal component analysis was conducted using SPSS on the OE
scale to examine its proposed single-factor structure. The results of the principal
components analysis annexed (see APPENDIX-E) and according to the
“Eigenvalue > 1” rule, there is only one significant factor, OE, and it explains
79.181% of the total variance in the three items.
Item loading for the Single Factor for OE that contains the item loading,
showed that all of the items are loaded strongly onto the first component (see
APPENDIX- F). This suggests a single-factor structure for the OE scale. All of
the items have loadings above the 0.5 level, as recommended by Hair et al.
(1998). KMO value of .725, which is above the cut-off point of 0.5 recommended
by Kaiser (1974) and close to 1 indicates that patterns of correlations are
relatively compact and so factor analysis should yield distinct and reliable
factors.
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4.4. RELIABILITY ANALYSIS
The test of reliability is an important test of sound measurement. It refers
to consistency of obtaining the same results carried out under same conditions
or a condition that particular data collection approach will yield the same
results on different occasions (Kothari 2004; Lancaster 2005) i.e. if we took two
people from different organizations that have positive outlook on same
construct, they should both get equally same scores. The split-half method is
used to test internal consistency levels of the measuring instrument (Field
2009; Nunnally 1978). The method randomly splits all items that are used to
measure the same construct into two sets (Field 2009; Nunnally 1978). By
comparing one half of the results with the other half of the results from the
same construct using Cronbach’s coefficient alpha (𝛼) test, reliability can be
established (Nunnally 1978).
Cronbach’s alpha is a commonly used test of internal reliability and it
essentially calculates the average of all possible split-half reliability coefficients.
The correlation between the two halves is the statistic computed in the split-half
method, with large correlations being a sign of reliability (Field 2009). The
intention is to test the level to which scale items are consistent and reveal the
same fundamental constructs. The calculated alpha coefficient fluctuates
between 1 (perfect internal reliability) and 0 (no internal reliability). The figure
.70 is recommended by Nunnally (1978) as a rule of thumb, to indicate the level
of internal consistency reliability that can be considered satisfactory.
Nonetheless, Kline (1999) cited in Field (2009) suggest that when dealing with
psychological constructs values below even .7 can, realistically, be expected
because of the diversity of the constructs being measured. It also mentioned in
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same document, Cronbach (1951) suggested that if several factors exist then the
formula should be applied separately to items relating to different factors.
(Reliability statistics of the SPSS outputs for all variables is annexed see
APPENDIX- E)
4.4.1. Human Relations Values
A Cronbach’s alpha analysis was performed using SPSS on the HRV scale
to examine its internal consistency. Cronbach’s alpha for the nineteen items
scale after discarding five items (revQn1, Qn2, revQn8, revQn9 & Qn10) was
calculated to check the internal consistency reliability of the scale and was
0.900, which is above the 0.70 criterion of Nunnally (1978). Since the value can
be improved to 0.907 by discarding one item (revQn19) further, the item was
retained because the increment does not bring substantial difference and above
all, both values reflect a good degree of reliability. Therefore the internal
consistency reliability of the HRV scale used in this study can be considered
acceptable.
4.4.1.1. Integration
A Cronbach’s alpha analysis was performed using SPSS on the
Integration scale to examine its internal consistency. Cronbach’s alpha for the
two items scale after discarding three items (revQn1, Qn2 & revQn5) was
calculated to check the internal consistency reliability of the scale and was
0.667, which is not substantially below the 0.70 criterion of Nunnally (1978).
Therefore the internal consistency reliability of the Integration scale used in
this study can be considered acceptable (Kline 1999 as cited in Field 2009: 675).
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4.4.1.2. Involvement
A Cronbach’s alpha analysis was performed using SPSS on the
Involvement scale to examine its internal consistency. Cronbach’s alpha for the
three items scale after discarding three items (revQn7, revQn8 & revQn11) was
calculated to check the internal consistency reliability of the scale and was
0.615, which is not substantially below the 0.70 criterion of Nunnally (1978).
Therefore the internal consistency reliability of the Involvement scale used in
this study can be considered acceptable (Kline 1999 as cited in Field 2009: 675).
4.4.1.3. Supervisory Support
A Cronbach’s alpha analysis was performed using SPSS on the
Supervisory Support scale to examine its internal consistency. Cronbach’s alpha
for the five items scale was calculated to check the internal consistency
reliability of the scale and was 0.891, which is above the 0.70 criterion of
Nunnally (1978). Therefore the internal consistency reliability of the
Supervisory Support scale used in this study can be considered acceptable.
4.4.1.4. Emphasis on Training
A Cronbach’s alpha analysis was performed using SPSS on the Emphasis
on training scale to examine its internal consistency. Cronbach’s alpha for the
three items scale after discarding one item (revQn19) was calculated to check
the internal consistency reliability of the scale and was 0.691, which is not
substantially below the 0.70 criterion of Nunnally (1978). Therefore the internal
consistency reliability of the Emphasis on training scale used in this study can’t
be considered acceptable (Kline 1999 as cited in Field 2009: 675).
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4.4.1.5. Welfare
A Cronbach’s alpha analysis was performed using SPSS on the Welfare
scale to examine its internal consistency. Cronbach’s alpha for the three items
scale after discarding one item (revQn21) was calculated to check the internal
consistency reliability of the scale and was 0.856. Since the value can be
improved to 0.866 by discarding one item (Qn24) further, the item was retained
because the increment does not bring substantial difference and above all, both
values reflect a good degree of reliability. The obtained value is above the 0.70
criterion of Nunnally (1978). Therefore the internal consistency reliability of the
Welfare scale used in this study can be considered acceptable.
4.4.2. Open Systems Values
A Cronbach’s alpha analysis was performed using SPSS on the OSV scale
to examine its internal consistency. Cronbach’s alpha for the thirteen items scale
after discarding four items (Qn30, revQn31, Qn35, Qn36 & Qn37) was
calculated to check the internal consistency reliability of the scale and was
0.835, which is above the 0.70 criterion of Nunnally (1978). Since the value can
be improved to 0.837 by discarding one item (revQn32) further, the item was
retained because the increment does not bring substantial difference and above
all, both values reflect a good degree of reliability. Therefore the internal
consistency reliability of the OSV scale used in this study can be considered
acceptable.
4.4.2.1. Innovation & Flexibility
A Cronbach’s alpha analysis was performed using SPSS on the
Innovation & Flexibility scale to examine its internal consistency. Cronbach’s
alpha for the six items scale was calculated to check the internal consistency
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reliability of the scale and was 0.875, which is above the 0.70 criterion of
Nunnally (1978). Therefore the internal consistency reliability of the Innovation
& Flexibility scale used in this study can be considered acceptable.
4.4.2.2. Outward Focus
A Cronbach’s alpha analysis was performed using SPSS on the Outward
Focus scale to examine its internal consistency. Cronbach’s alpha for the three
items scale after discarding one item (revQn31) was calculated to check the
internal consistency reliability of the scale and was 0.751, which is above the
0.70 criterion of Nunnally (1978). Therefore the internal consistency reliability
of the Outward Focus scale used in this study can be considered acceptable.
4.4.2.3. Reflexivity
A Cronbach’s alpha analysis was performed using SPSS on the Reflexivity
scale to examine its internal consistency. Cronbach’s alpha for the three items
scale was calculated to check the internal consistency reliability of the scale and
was 0.735, which is above the 0.70 criterion of Nunnally (1978). Therefore the
internal consistency reliability of the Reflexivity scale used in this study can be
considered acceptable.
4.4.3. Organizational Effectiveness
A Cronbach’s alpha analysis was performed using SPSS on the OEscale to
examine its internal consistency. Cronbach’s alpha for the three items scale was
calculated to check the internal consistency reliability of the scale and was
0.868, which is above the 0.70 criterion of Nunnally (1978). Therefore the
internal consistency reliability of the OE scale used in this study can be
considered acceptable.
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4.5. HYPOTHESIS TESTING
It is proposed that the collected data be analyzed using parametric
statistical tools to test the hypotheses since it is assumed that the sampling
distribution is normal and none of the assumptions were found violated.
Hypotheses 1 is tested using multiple linear regressions. Hypotheses 2 and 3 are
tested using Pearson’s product-moment Correlation Coefficients. Hypothesis 4
and 8 are tested using Independent-samples T- test. Hypotheses 5, 6 and 7 are
tested using One-way ANOVA.
4.5.1. Testing of Hypothesis One (effects between variables)
Multiple Linear Regression was used to determine the effects of the two
independent variables (HRV and OSV) on the dependent variable (OE)
measured indirectly by organizational commitment (Speier & Venkatesh 2002).
The following multiple regression model was used to measure the effects
of the two independent variables on the dependent variable.
Y = 𝜶𝟎 + b1 X1 + b2 X2 + є
Where: Y = the dependent Variable of OE, Xi = the independent Variables in
which; X1 = HRV, X2 = OSV, 𝛼0 = the y-intercept, bi, i=1-2 = regression
coefficients of the two factors in explaining Y, and є = the Error term.
With a statistical significance p < .05, the test results may be considered
acceptable at the 95% confidence level, and the results are unlikely to change.
With a value of p < 0.01 the test results can be considered acceptable at the 99%
confidence level. The SPSS results from the multiple linear regressions to test
the relationship in the model and to determine to what degree the dependent
variable is explained by the independent variables are presented in the following
sections. Though prior studies have demonstrated that demographic variables
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are potential predictors of organizational commitment (Avolio 2004), all the
demographic variables in this study correlated hardly with the dependent
variable and hence, their effects have been removed from the regression
analysis. (Regression chart outputs are annexed See APPENDIX- G)
4.5.1.1. Nature & Strength of the Effect
As shown in Table 4-9, HRV and OSV significantly predicted OE (β =
0.272, p < 0.01 and β = 0.338, p < 0.01, respectively). The VIF values less than
10 and tolerance values greater than 0.2 indicates there is no problem of
multicollinearity.
Table 4-9: Coefficients Result
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
Collinearity Statistics
B Std.
Error Beta Tolerance VIF
1 (Constant) 1.021 .239 4.277 .000
HRV .401 .113 .272 3.544 .000 .446 2.242 OSV .412 .094 .338 4.398 .000 .446 2.242
a. Dependent Variable: OE Source: Researcher’s own computation
Figure 4-1 provides a diagrammatic view of the relationship between HRV and
OSV on OE.
Figure 4-1: Relationship between HRV and OSV on Organizational Effectiveness
Independent Variables Dependent Variable β = .272, p < .01 β = .338, p < .01
Human Relations Values (X1)
Open Systems Values (X2)
Organizational effectiveness (Y)
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Referring back to Table 4-9, “B” values were extracted and the following
regression equation was derived:
OE= 1.021 + 0.401 (HRV) + 0.412 (OSV)
Therefore, according to the regression equation, HRV and OSV have a
positive influence on OE. Table 4-10 shows the strength of the above
relationship as indicated by the adjusted R Square value which in this case is
0.319, and is considered as low positive correlation (Collis & Roger Hussey
2003). The difference for the final model is small (in fact the difference between
the values is .325 − .319 = .005 (about 0.6%). This shrinkage means that if the
model were derived from the population rather than a sample it would account
for approximately 0.6% less variance in the outcome.
Another important point to notice from Table 4-10 is the Durbin–
Watson test that tests for serial correlations between errors in regression
models (Field 2009). Specifically, it tests whether adjacent residuals are
correlated, which is useful in assessing the assumption of independent errors
(Field 2009). Values less than 2 indicate a tendency for observations that are
close in time to be similar (positive autocorrelation), values greater than 2
indicate a tendency for close observations to be different (negative
autocorrelation) and values close to 2 indicates there is no autocorrelation. In
this result, the Durbin-Watson test does assume that the regression residuals
are normally distributed (Manly 2009: 191).
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Table 4-10: Model Summary for the Strength of Relationship
Model Summaryb
Model R R
Square
Adjusted R
Square
Change Statistics
Durbin-
Watson
R Square Change
F Change df1 df2
Sig. F Chang
e 1 .570a .325 .319 .325 61.765 2 257 .000 1.974
a. Predictors: (Constant), Open Systems Values, Human Relations Values b. Dependent Variable: OE Source: Researcher’s own computation
4.5.1.2. Explanation of the hypothesis
Null hypothesis 1: The aggregated HRV & OSV of OC do not predict the OE
that is measured by employees’ Organizational commitment.
The Multiple Linear Regression analyses discussed above indicate that
the effect of HRV significantly predicted OE (β = .272, p < .05). The
independent variable HRV significantly predicts the dependent variable OE,
which reflects the research findings from the organic view of CVM model of
Quinn and Rohrbaugh (1983) on organizational effectiveness. This indicates
that in the natural system approach employees perceive that OC is important
(exhibit high HRV such as morale and cohesion) and has an impact on their
behavioral intentions to give more emphasis on human resource development.
This, in turn, places OC as a leading indicator of organisational performance
that contributes to OE (Srivastav 2009).
The Multiple Linear Regression analyses indicate also OSV significantly
predicted OE (β = .338, p < .05). The independent variable OSV significantly
predicts the dependent variable OE, which reflects the research findings from
the organic view of CVM model of Quinn and Rohrbaugh (1983) on
organizational effectiveness. This indicates that in the natural system approach
employees perceive that OC is important (exhibit high OSV such as flexibility
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
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and readiness) and has an impact on their behavioral intentions to give more
emphasis on growth and resource acquisition. This, in turn, places OC as a key
motivational factor for organizational change that contributes to OE (Lehman et
al. 2002).
Most importantly, in the model summary, R square of .325 indicates
32.5% of the variation in OE is explained by HRV & OSV combined. The
remaining 67.5% variation in OE is explained by factors not included in the
model, essentially, contributed by either the untapped items (5 items from
Autonomy dimension, 1 item from Outward Focus dimension, and 2 items from
Reflexivity dimension) or contributed by the other two organizational values of
the quadrants of CVM; Rational Goal Values (RGV) & Internal Process Values
(IPV) or might be explained by both factors. HRV & OSV combined proved to
contribute almost 65% of the variation on the half segment of the CVM. In a
summary, the multiple linear regression test undertaken above proved that the
null hypothesis 1 is rejected.
4.5.2. Testing of Hypothesis Two (relationships between variables)
Pearson's product-moment correlation coefficient (r) was used to
determine the strength of association between the specific dimensions and
domains of OC. Pearson's product moment correlation coefficient (r) is a
parametric technique which gives a measure of the strength of association
between two variables (Collis & Roger Hussey 2003).
4.5.2.1. Nature & Strength of Relationship
As shown in Table 4-11, Involvement, Supervisory Support, Training
and Welfare have shown high positive correlation with HRV (r = .736, .868,
.766, and .848 at p < 0.01 respectively). In contrast, Integration have shown
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
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medium positive correlation with HRV (r = .622) (Collis & Roger Hussey 2003;
Patterson et al. 2005). The coefficient of determination, R2 that determines
the amount of variability in one variable that is shared by the other (Field
2009), shows that Integration shares 38.7% of the variability in HRV,
Involvement shares 54.2% of the variability in HRV, Supervisory Support
shares 75.3% of the variability in HRV, Training shares 58.7% of the variability
in HRV, and Welfare shares 71.9% of the variability in HRV. Therefore the
Condition for hypothesis test is met.
Table 4-11: Pearson Correlations of dimensions with Human Relations Values
Variables HRV Integration
Involvement
Supervisory
Support
Emphasis on
Training Welfare
HRV 1 Integration .622** 1 Involvement .736** .539** 1 Supervisory Support .868** .433** .584** 1 Emphasis on Training .766** .390** .552** .543** 1
Welfare .848** .468** .545** .741** .616** 1 **. Correlation is significant p < 0.01 level (1-tailed). Source: Researcher’s own computation Figure 4-2 provides a diagrammatic view of the relationship between the
dimensions; Integration, Involvement, Supervisory Support, Training and
Welfare with HRV domain.
Figure 4-2: Relationships of Dimensions of OC with HRV
Dimensions Domain R2 = .387, p < .01 R2= .542, p < .01 R2 = .753, p < .01 R2 = .587, p < .01 R2= .719, p < .01
Integration
Supervisory Support
Training
Welfare
Involvement
Human Relations
Values (HRV)
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4.5.2.2. Explanation of the hypothesis
Null hypothesis 2: The dimensions of OC (Integration, Involvement,
Supervisory Support, Training, and Welfare) do not
positively related with HRV of flexible orientation.
The Pearson's product moment correlation coefficient analyses discussed
above indicate that Integration, Involvement, Supervisory Support, Training
and Welfare have shown high and medium positive correlation with HRV (r =
.622, .736, .868, .766, and .848 at p < 0.01 respectively).
Although Integration, Involvement, Supervisory Support, Training and
Welfare can account for 38.7%, 54.2% , 75.3% , 58.7% , and 71.9% of the
variation in HRV respectively, it does not necessarily cause this variation and
this still says nothing about which way causality runs. It can only express in
terms of “the variance in y accounted for by x ”, or even the variation in one
variable explained by the other (Collis & Roger Hussey 2003; Field 2009). The
research findings from the competing values framework perspective proved that
the climate strength of all or most climate dimensions within a quadrant inter-
correlate highly as a predictor of organizational outcomes (Patterson et al
2005). Previous research conducted in Pakistan work environment by Iqbal
(2007) has proved that statistically significant correlations between some
dimensions of OC and organizational commitment (r = 0.38, P < 0.01 and r =
0.24, P < 0.01 for Challenge & Involvement and Trust & Openness dimensions
respectively), which is consistent with this findings.
Above all, the results have shown that employees of public institutions do
not only perceive the dimensions of HRV positively but also it has strong effect
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on their behavioural intentions of HRV such as morale, cohesion, trust and
belongingness (Reino & Vadi 2010).
The findings also reveal that in relative terms, supervisory support found
to be the major dominant factor and Integration is the least dominant factor
among the HRV domain in influencing employees’ perception. This is somewhat
contradictorily answered by respondents in the cross-checking question (see
APPENDIX- I) whether they do believe their organization is effective in doing
its job, the majority respondents suggested that Welfare & Emphasis on
training should be viewed as a first intervention strategy in improving the work
environment. In a summary, Pearson's product-moment correlation coefficient
analysis undertaken above proved that the null hypothesis 2 is rejected.
4.5.3. Testing of Hypothesis Three (relationships between variables)
Pearson's product-moment correlation coefficient (r) was used to
determine the strength of association between the specific dimensions and
domains of OC.
4.5.3.1. Nature & Strength of Relationship
As shown in Table 4-12, Innovation & Flexibility indicates very high
positive correlation with OSV (r = .987; p< 0.01). In contrast, Reflexivity, have
demonstrated medium positive correlation with OSV (r = .677 at p < 0.01) and
Outward Focus have demonstrated low positive correlation with OSV (r = .367
at p < 0.01) (Collis & Roger Hussey 2003; Patterson et al. 2005). The
coefficient of determination, R2 shows that Innovation & Flexibility shares
97.4% of the variability in OSV, Outward Focus shares 13.5% of the variability
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in OSV, and Reflexivity shares 45.8% of the variability in OSV. Therefore the
Condition for hypothesis test is met.
Table 4-12: Pearson Correlations of dimensions with Open Systems Values
Variables OSV
Innovation &
Flexibility
Outward Focus Reflexivity
OSV 1 Innovation & Flexibility .987** 1 Outward Focus .367** .383** 1 Reflexivity .677** .676** .403** 1 **. Correlation is significant p < 0.01 level (1-tailed). Source: Researcher’s own computation Figure 4-3 provides a diagrammatic view of the relationship between the
dimensions; Innovation & Flexibility, Outward Focus, and Reflexivity with
OSV domain.
Figure 4-3: Relationships of Dimensions of OC with OSV
4.5.3.2. Explanation of the hypothesis
Null hypothesis 3: The dimensions of OC (Innovation & flexibility,
Reflexivity, and Outward focus) do not positively related
with OSV of flexible orientation.
The Pearson's product moment correlation coefficient analyses discussed
above indicate that Innovation & Flexibility, Outward Focus, and Reflexivity
Dimensions Domain R2 = .974, p < .01 R2 = .135, p < .01 R2= .458, p < .01
Innovation & Flexibility
Outward Focus
Reflexivity
Open Systems Values (OSV)
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have shown high, medium and low positive correlation with OSV (r = .987, .677,
and .367 at p < 0.01) respectively.
Although Innovation & Flexibility, Outward Focus, and Reflexivity can
account for 97.4%, 13.5%, and 45.8% of the variation in OSV respectively, it does
not necessarily cause this variation and this still says nothing about which way
causality runs. It can only express in terms of ‘the variance in y accounted for by
x’, or even the variation in one variable explained by the other (Collis & Roger
Hussey 2003; Field 2009). The research findings from the competing values
framework perspective proved that the climate strength of all or most climate
dimensions within a quadrant inter-correlate highly as a predictor of
organizational outcomes (Patterson et al 2005). Above all, the results have
shown that employees of public institutions do not only perceive the dimensions
of OSV positively but also it has strong effect on their behavioural intentions of
OSV that encompasses values such as flexibility, external organizational
orientation, adaptability, the capacity to change, uniqueness and an orientation
towards customers (Reino & Vadi 2010).
The findings also reveal that in relative terms, Innovation & Flexibility
found to be the major dominant factor and Outward Focus is the least
dominant factor among the OSV domain in influencing employees’ perception.
This is somewhat contradictorily, tied-up answer obtained in the cross-checking
question (see APPENDIX- I) whether they do believe their organization is
effective in doing its job, the majority respondents suggested that Innovation &
Flexibility should be viewed as a first intervention strategy in improving the
work environment. On other hand, the same size respondents suggested
Innovation & Flexibility to be considered as the last option. However, the
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84
former group’s opinion is supported since it seems realistically suggested. In a
summary, Pearson's product-moment correlation coefficient analysis
undertaken above proved that the null hypothesis 3 is rejected.
4.5.4. Testing of Hypothesis Four (difference between gender)
Independent Samples t-test, a test that uses the t-statistic to establish
whether two means collected from independent samples differ significantly
(Field 2009). The t-test compares two means, when those means have come
from different groups of entities and a significant result under Levene’s Test for
Equality of Variance indicates that the variances are significantly different –
therefore, the assumption of homogeneity of variances has been violated (Field
2009). If the Sig. value of Levene’s test is bigger than .05 then you should look
at the row in the table, labelled Equal variances assumed and the F-ratio is,
therefore, a measure of the ratio of systematic variation to unsystematic
variation (Field 2009).
To discover whether the effect is substantive it is important to know
about effect sizes by converting a t-value into an r-value using the following
formula and a value of .5 is the threshold for a large effect (Field 2009: 332).
𝑟 = �t2
t2 + df
4.5.4.1. Nature & Strength of Difference
Table 4-13 shows the results of Independent-samples t-test, on average,
Males experienced greater positive perception to OE (M = 3.53, SE = 0.09) than
to Females (M = 3.42, SE = 0.10), greater positive perception to HRV (M = 3.06,
SE = 0.06) than to Females (M = 3.05, SE = 0.07), and greater positive
perception to OSV (M = 3.04, SE = 0.07) than to Females (M = 2.96, SE =
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
85
0.09). This difference was not significant, t (209.6) = .829, p > .05 for OE; not
significant, t (258) = .151, p > .05 for HRV; and not significant, t (258) = .685, p
> .05 for OSV.
Table 4-13: Independent-Samples T-test for Gender
Group Statistics Variables Gender N Mean Std. Deviation Std. Error Mean
OE Males 169 3.5266 1.11126 .08548 Females 91 3.4176 .95400 .10001
HRV Males 169 3.0645 .73498 .05654 Females 91 3.0503 .68793 .07211
OSV Males 169 3.0355 .86694 .06669 Females 91 2.9582 .86949 .09115
Levene's Test for Equality of Variances t-test for Equality of Means Variables Condition F Sig. t df Sig. (2-tailed)
OE
Equal variances assumed
4.213 .041 .792 258 .429
Equal variances not assumed
.829 209.613 .408
HRV
Equal variances assumed
.790 .375 .151 258 .880
Equal variances not assumed
.154 195.141 .877
OSV
Equal variances assumed
.313 .576 .685 258 .494
Equal variances not assumed
.684 183.913 .495
Source: Researcher’s own computation
4.5.4.2. Explanation of the hypothesis
Null hypothesis 4: There is no significant difference between employees’
perception of OC in terms of employees’ Gender in HRV,
OSV and OE across public sectors.
The Independent-Samples t-test discussed above indicated that Males
experienced greater positive perception to all three variables of OE, HRV and
OSV in which, the difference in perception in all cases was not significant (t
(209.6) = .829, p > .05), (t (258) = .151, p > .05) and (t (258) = .685, p > .05)
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
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than to Females respectively. This will lead us to a conclusion that male and
female do not differ in their perception of OC and on OE.
The research findings proved that consistent result obtained with the
previous research conducted by Idogho (2006) on Nigerian academic staff of
universities, in which he found that male and female do not differ in their
perception of OC [F (1, 4092) = 1.530, P > 0.05)]. In a summary, Independent-
Samples t-test undertaken above proved that there is no ground for the null
hypothesis 4 to be rejected for OC and OE.
4.5.5. Testing of Hypothesis Five (difference between tenure)
One-way independent ANOVA test was used to test for differences
between several independent groups. The one-way independent ANOVA
compares several means, when those means have come from different groups of
people based on respondents Tenure. (Homogeneity test of Variance for
grouping variables is annexed see APPENDIX- H)
4.5.5.1. Nature & Strength of Difference
Table 4-14 shows there was no significant difference observed in
employees perception based on Tenure in terms of OE, F (4, 245) = 1.151, p
>.05. There was no significant difference observed in employees perception
based on Tenure in terms of HRV, F (4, 245) = .918, p >.05. There was no
significant difference observed in employees perception based on Tenure in
terms of OSV, F (4, 245) = .864, p >.05. Therefore the Condition for hypothesis
test is met.
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Table 4-14: One-Way Independent ANOVA test for Tenure
Sum of
Squares df
Mean Square
F Sig.
OE
Between Groups 5.030 4 1.258 1.151 .333 Within Groups 267.690 245 1.093 Total 272.720 249
HRV
Between Groups 1.958 4 .489 .918 .454 Within Groups 130.606 245 .533 Total 132.564 249
OSV
Between Groups 2.520 4 .630 .864 .486 Within Groups 178.597 245 .729 Total 181.117 249
Source: Researcher’s own computation
4.5.5.2. Explanation of the hypothesis
Null hypothesis 5: There is no significant difference between employees’
perception of OC in terms of employees’ Tenure in HRV, OSV
and OE across public sectors.
The One-way Independent ANOVA test discussed above indicate that
there was no significant difference in Tenure exhibited in a period of job
possession in terms of employees perception of OC and organizational
commitment; OE, F (4, 245) = 1.151, p >.05, HRV, F (4, 245) = .918, p >.05, and
OSV, F (4, 245) = .864, p >.05.
The research findings proved that consistent result obtained with the
previous research conducted by Idogho (2006) on Nigerian academic staff of
universities, in which he found that no difference exist between young and older
academic staff in their perception of OC [F (1, 4092) = 0.002, P > 0.05)]. In a
summary, One-way Independent ANOVA test undertaken above proved that
there was no ground for the null hypothesis 5 to be rejected for OC factors of
HRV & OSV and OE.
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4.5.6. Testing Hypothesis Six (difference between education level)
One-way independent ANOVA test was used to test for differences
between several independent groups. The one-way independent ANOVA
compares several means, when those means have come from different groups of
people based on respondents education level.
4.5.6.1. Nature & Strength of Difference
Table 4-15 shows there was no significant difference observed in
employees perception based on Education level in terms of OE, F (4, 247) =
1.918, p >.05. There was no significant difference observed in employees
perception based on Education level in terms of HRV, F (4, 247) = .369, p >.05.
There was no significant difference observed in employees perception based on
Education level in terms of OSV, F (4, 247) = .995, p >.05. Therefore the
Condition for hypothesis test is met.
Table 4-15: One-Way Independent ANOVA test for Education level
Sum of Squares
df Mean
Square F Sig.
OE Between Groups 8.506 4 2.126 1.918 .108 Within Groups 273.799 247 1.108
Total 282.305 251
HRV Between Groups .786 4 .197 .369 .831 Within Groups 131.586 247 .533
Total 132.372 251
OSV Between Groups 2.940 4 .735 .995 .411 Within Groups 182.420 247 .739
Total 185.360 251
Source: Researcher’s own computation
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89
4.5.6.2. Explanation of the hypothesis
Null hypothesis 6: There is no significant difference between employees’
perception of OC in terms of Education level in human
relations, OSV and OE across public sectors.
The One-way Independent ANOVA test discussed above indicated that
there was no significant difference in Education level exhibited whether the
employee is qualified or not in terms of employees perception of OC and
organizational commitment. OE, F (4, 247) = 1.92, p >.05, HRV, F (4, 247) =
.369, p >.05, and OSV, F (4, 247) = .995, p >.05.
The research findings proved that employees’ background in educational
qualification has nothing to do with employees’ perception towards OC. In a
summary, One-way Independent ANOVA test undertaken above proved that
there was no ground for the null hypothesis 6 to be rejected for OC factors of
HRV & OSV and OE.
4.5.7. Testing Hypothesis Seven (difference between organization type)
One-way independent ANOVA test and Independent-sample t-test were
used to test for differences between several independent groups. The one-way
independent ANOVA compares several means, when those means have come
from different groups of people based on respondents’ organization type. The t-
test compares two means, when those means have come from different groups
of entities.
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4.5.7.1. Nature & Strength of Difference
Table 4-16 shows there was a significant difference observed in
employees perception based on the type of organization in terms of OE, F (5,
254) = 2.395, p <.05 with a mean of OGADT = 3.84, BoTVT = 3.67, BoCTPD =
3.53, BoEPLA = 3.47, BoE = 3.28, and BoWYCA = 3.19. There was no significant
difference observed in employees perception based on the type of organization
in terms of HRV, F (5, 254) = 2.081, p >.05. There was a significant difference
observed in employees perception based on the type of organization in terms of
OSV, F (5, 254) = 3.67, p <.05 with a mean of OGADT = 3.39, BoCTPD = 3.09,
BoEPLA = 2.99, BoTVT = 2.93, BoE = 2.91, and BoWYCA = 2.65. Therefore the
Condition for hypothesis test is met.
Table 4-16: One-Way Independent ANOVA test for Organization Type
Sum of
Squares df Mean
Square F Sig.
OE
Between Groups 13.059 5 2.612 2.395 .038 Within Groups 277.017 254 1.091 Total 290.076 259
HRV Between Groups 5.248 5 1.050 2.081 .068 Within Groups 128.108 254 .504 Total 133.356 259
OSV Between Groups 13.115 5 2.623 3.670 .003 Within Groups 181.546 254 .715 Total 194.661 259
Source: Researcher’s own computation
Table 4-17 shows the result of Independent-sample t-test run for each
grouping that 9 out of 45 tests conducted revealed statistically significant
differences in the perception of organizational climate. At least two significant
differences exist in each factor. At least one significant difference exists for each
pair of organization grouping. Organizational climate is, therefore, not uniform,
but differential across various groups across organizations.
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Table 4-17: Strength of difference for organization types
Pair of groups for Organizations
t-values OE HRV OSV
BoE Vs BoTVT -1.726 .321 -.114 BoE Vs BoEPLA -.778 -1.421 -.411 BoE Vs OGADT -2.691** -1.724 -3.021**
BoE Vs BoCTPD -1.193 -.121 -1.041 BoE Vs BoWYCA .397 1.301 1.654 BoTVT Vs BoEPLA .814 -1.581 -.282 BoTVT Vs OGADT -.767 -1.839 -2.617*
BoTVT Vs BoCTPD .589 -.400 -.853 BoTVT Vs BoWYCA 2.152* .889 1.733 BoEPLA Vs OGADT -1.520 -.134 -1.930 BoEPLA Vs BoCTPD -.249 1.212 -.426 BoEPLA Vs BoWYCA 1.126 2.542* 1.713 OGADT Vs BoCTPD 1.419 1.479 1.664 OGADT Vs BoWYCA 2.948** 2.851** 4.603***
BoCTPD Vs BoWYCA 1.497 1.312 2.548*
Notes: * p<=.05, **p<= .01 and ***p<= .001 Source: Researcher’s own computation
4.5.7.2. Explanation of the hypothesis
Null hypothesis 7: There is no significant difference between employees’
perception of OC in terms of type of organization in HRV,
OSV and OE across public sectors.
The One-way Independent ANOVA test discussed above indicate that
there is significant difference in employees perception across Organizations in
terms of OE (F (5, 254) = 2.395, p <.05) with a mean of OGADT = 3.84, BoTVT
= 3.67, BoCTPD = 3.53, BoEPLA = 3.47, BoE = 3.28, and BoWYCA = 3.19 and
OSV (F (5, 254) = 3.67, p <.05) with a mean of OGADT = 3.39, BoCTPD = 3.09,
BoEPLA = 2.99, BoTVT = 2.93, BoE = 2.91, and BoWYCA = 2.65 of the OC. On
other hand, no significance difference observed in HRV (F (5, 254) = 2.081, p
>.05) of employees perception across public organizations. OGADT & BoWYCA
are the two organizations, which exhibited extreme values in employees’
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
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perception in both cases that impart significant difference in perception of the
OC. Furthermore, the Independent-sample t-test reveals nine (20%) out of 45
tests conducted revealed statistically significant differences in the perception of
organizational climate between organizations.
The research findings proved that partial result obtained with the
previous research conducted by Idogho (2006) on academic staff of Edo state
Universities that indicated the existence of significant difference among
universities in their perception of OC [F (3, 4091) = 12.545, P < 0.05)], which
are not categorized as human relations or open systems values. This makes the
obtained result differentiated from the previous researches. In a summary, One-
way Independent ANOVA test undertaken above proved that the null hypothesis
7 can be rejected for OC factor of OSV and OE. However, there is no ground for
the null hypothesis 7 to be rejected for OC factor of HRV.
4.5.8. Testing of Hypothesis eight (difference between work groups)
Independent Samples t-test was used to determine the difference and its
significance by comparing the means of two work groups in which the
respondents are working in.
4.5.8.1. Nature & Strength of Difference
Table 4-18 shows the results of Independent-samples t-test, on average,
employees in Core processes experienced greater positive perception to OE (M =
3.56, SE = 0.08) than to employees in Support processes (M = 3.39, SE = 0.11).
On other hand, on average, employees in Support processes experienced greater
positive perception to HRV (M = 3.08, SE = 0.07) than to employees in Core
processes (M = 3.04, SE = 0.06) and on average, employees in Support
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93
processes experienced almost equal positive perception to OSV (M = 3.01, SE =
0.09) with employees in Core processes (M = 3.01, SE = 0.07). However, the
differences in OE & HRV were not significant t (258) = 1.291, p > .05 for OE; not
significant t (258) = -.381, p > .05 for HRV; and not significant t (258) = -.038,
p > .05 for OSV. Therefore the Condition for hypothesis test is met.
Table 4-18: Independent-Samples T-test between for Work Processes
Group Statistics Variables Business Processes N Mean Std. Deviation Std. Error Mean
OE Core Process 149 3.5615 1.01126 .08285 Support Process 111 3.3904 1.11543 .10587
HRV Core Process 149 3.0449 .68989 .05652 Support Process 111 3.0792 .75583 .07174
OSV Core Process 149 3.0067 .80216 .06572 Support Process 111 3.0108 .95073 .09024
Levene's Test for Equality of Variances t-test for Equality of Means Variables Condition F Sig. t df Sig. (2-tailed)
OE
Equal variances assumed
.692 .406 1.291 258 .198
Equal variances not assumed
1.273 223.634 .204
HRV
Equal variances assumed
.998 .319 -.381 258 .704
Equal variances not assumed
-.376 224.608 .707
OSV
Equal variances assumed
3.669
.057 -.038 258 .970
Equal variances not assumed
-.037 213.071 .971
Source: Researcher’s own computation
4.5.8.2. Explanation of the hypothesis
Null hypothesis 8: There is no significant difference between employees’
perception of OC in terms of work processes in HRV, OSV
and OE across public sectors.
The Independent-Samples t-test discussed above indicate that employees
in Core work processes experienced greater positive perception to OE than
employees in Support processes in which, the difference in perception is not
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
94
significant (t (258) = 1.291, p > .05). On other hand, employees in Support
processes experienced greater positive perception to HRV than employees in
Core processes in which, the difference in perception is not significant (t (258) =
-.381, p > .05). Lastly, employees in Support processes experienced almost equal
positive perception to OSV with employees in Core processes in which, their
perception is not significant t (258) = -.038, p > .05.
The research findings produces contradictory result with previously
studied related topics that was conducted on 155 individuals drawn from 27
hospital management teams by N. R. Anderson & M. A. West (1998), which
states there is variation in level of agreement both across teams within samples
and within teams across particular dimensions. In a summary, Independent-
Samples t-test undertaken above proved that there is no ground for the null
hypothesis 8 to be rejected for OE as well as for OC factors of HRV and OSV.
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CHAPTER V – SUMMARY, CONCLUSIONS &
RECOMMENDATIONS
5.1. INTRODUCTION
This chapter presents the concluding part of the research project. Section
5.1 provides an introduction to the chapter. Section 5.2 focuses on the major
findings while Section 5.3 is the conclusion for the research. Finally, Section 5.4
provides implications and recommendations for future research.
5.2. SUMMARY
Chapter 4 presented the research results that were generated by SPSS software.
The results include the demographics of respondents, namely: gender,
education level, work groups they are working in and years of experience in the
latest organization. The majority of respondents are male (63.2%). The finding
is representative of the ANRS public institutions work force at regional level,
and is consistent with statistic for civil servants (Bureau of Finance and
Economic Development, 2011). The majority of respondents are from core work
processes (57.3%) and the majority of respondents were holders of Bachelor
degree and above (71.1%). The majority of respondents have worked in the
present institution more than 5 years (57.6%). Except for educational level the
sample is representative of the distribution of ANRS civil servants at regional
level (Bureau of Civil Service 2010). Prior studies have demonstrated that these
demographic variables are potential predictors of organizational commitment
(Avolio 2004)
For testing the eight hypotheses in accordance with the research model in
Figure 2-4, various statistical tests were adopted to reject the null hypotheses.
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96
For null hypothesis 1, Multiple Linear Regression was used to
determine the effects of the two independent variables (HRV and OSV) on the
dependent variable (OE) measured indirectly by organizational commitment
(Speier & Venkatesh 2002).
The results show that the conditions for regression analysis have been
met and the independent variables significantly predicted the dependent
variable.
The Multiple Linear Regression together with the relationship described
in Sections 4.5.1.1and 4.5.1.2, demonstrate that Hypothesis 1 was not supported,
rather HRV and OSV significantly predicted OE (β = .272, p < .05) and (β =
.338, p < .05) respectively. In the regression model summary, R square of .325
indicates 32.5% of the variation in OE is explained by HRV & OSV combined.
The remaining 67.5% variation in OE is probably explained by factors not
included in the model, essentially, by the other two values in the quadrants of
CVM; Rational Goal Values (RGV) & Internal Process Values (IPV) or either
explained by the remaining untapped items or both. HRV & OSV contribute
around 65% of the variation on the half segment of the CVM if we assume that
the full model is split into two segments proportionately.
The research finding does not support null Hypothesis 1 and is consistent
with prior theory and research in that OC positively & significantly influence on
employees’ perception of their work environment and impacts upon OE (Quinn
and Rohrbaugh 1983). Employees’ psychological capital is positively related to
their performance, satisfaction, and commitment and that a supportive climate
is related to employees’ satisfaction and commitment(Bakker & Schaufeli
2008). Moreover, according to CVM about 50% of the variation in OE should
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
97
have to be explained by HRV & OSV domains (Quinn & Rohrbaugh 1983).
However, in this study, 32.5% of the variation was proved been accounted by the
two quadrants of CVM; HRV and OSV.
This indicates that in the natural system approach employees perceive
that OC is important (exhibit high HRV such as morale and cohesion, and high
OSV such as flexibility and readiness) and has an impact on their behavioral
intentions to give more emphasis on human resource development and growth
and resource acquisition. This, in turn, places OC as a leading indicator of
organisational performance and as a key motivational factor for organizational
change that contributes to OE (Srivastav 2009; Lehman et al. 2002).
Since the alternate hypothesis was supported, the research question has
been answered, in that the OE of public sectors in ANRS that is measured by
employees’ organizational commitment are highly predicted by the flexible
orientation internal & external values of OC.
For null hypothesis 2 & 3, Pearson's product-moment correlation
coefficient (r) was used to determine the strength of association between the
specific dimensions and domains of OC. The result indicates that Involvement,
Supervisory Support, Training and Welfare have shown high positive
correlation with HRV (r = .736, .868, .766, and .848 at p < 0.01 respectively). In
contrast, Integration have shown medium positive correlation with HRV (r =
.622) accounting with determination of coefficient, R2, of 38.7%, 54.2%,
75.3%, 58.7%, and 71.9% of the variation in sub-scales of Integration,
Involvement, Supervisory Support, Training, and Welfare in the HRV of OC
respectively.
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98
On other hand, Innovation & Flexibility indicates very high positive
correlation with OSV (r = .987; p< 0.01). In contrast, Reflexivity have
demonstrated medium positive correlation with OSV (r = .677 at p < 0.01) and
Outward Focus have demonstrated low positive correlation with OSV (r = .367
at p < 0.01) accounting with determination of coefficient, R2, of 97.4%,
13.5%, and 45.8% of the variation in sub-scales of Innovation & Flexibility,
Outward Focus, and Reflexivity in the OSV of OC respectively.
The research finding does not support null Hypotheses 2 & 3 and is
consistent with prior theory and research conducted on competing values
framework that the climate strength of all or most climate dimensions within a
CVM quadrant inter-correlate significantly as a predictor of organizational
outcomes such as organizational commitment (Iqbal 2007; Patterson et al.
2005)
The results have shown that employees of public institutions do not only
perceive the dimensions in the HRV and OSV domain of OC positively, but also
their perception has strong effect on their behavioural intentions of HRV such
as morale, cohesion, trust and belongingness. This is true also for OSV that
encompasses values such as flexibility, external organizational orientation,
adaptability, the capacity to change, uniqueness and an orientation towards
customers (Reino & Vadi 2010).
The findings also reveal that in relative terms Supervisory support and
Innovation & Flexibility found to be the dominant factors under HRV and OSV
domain of OC in influencing employees’ perception respectively. Integration
and Outward Focus are the least among the HRV and OSV domain of OC in
influencing employees’ perception respectively.
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99
Since both alternate hypotheses 2 & 3 were supported, the research
questions has been answered, in that there is significant positive relationship
between the dimensions of OC and both HRV (internal focus) and OSV (external
focus) of flexible orientation.
For null hypothesis 4 & 8, Independent Samples t-test was used to
determine the difference and its significance by comparing the means of two
groups of gender and work processes with respect to employees’ perception
towards to OC. It was found that Males experienced greater positive perception
to OE (M = 3.53, SE = 0.09) than to Females (M = 3.42, SE = 0.10), greater
positive perception to HRV (M = 3.06, SE = 0.06) than to Females (M = 3.05,
SE = 0.07), and greater positive perception to OSV (M = 3.04, SE = 0.07) than
to Females (M = 2.96, SE = 0.09). However, the difference was not significant, t
(209.6) = .829, p > .05 for OE; not significant, t (258) = .151, p > .05 for HRV;
and not significant, t (258) = .685, p > .05 for OSV.
Employees in Core processes experienced greater positive perception to
OE (M = 3.56, SE = 0.08) than to employees in Support processes (M = 3.39, SE
= 0.11). On other hand, on average, employees in Support processes experienced
greater positive perception to HRV (M = 3.08, SE = 0.07) than to employees in
Core processes (M = 3.04, SE = 0.06) and on average, employees in Support
processes experienced almost equal positive perception to OSV (M = 3.01, SE =
0.09) with employees in Core processes (M = 3.01, SE = 0.07). However, the
differences in perceptions were not significant t (258) = 1.291, p > .05 for OE;
not significant t (258) = -.381, p > .05 for HRV; and not significant t (258) = -
.038, p > .05 for OSV.
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100
The research findings was consistent with the previous research that
states male and female do not differ in their perception of OC (Idogho 2006).
On the contrary, contradictory result obtained with regard to work processes
with previously studied related topics that states there is variation in level of
agreement both across teams within samples and within teams across particular
dimensions (Anderson & West 1998; Srivastav 2009). However, it cannot
arguably be ruled out that the organizational dynamism could have significant
impact in today’s work environment than long time ago to rely more on latest
phenomena.
Even though, both null hypotheses 4 & 8 were supported for all factors in
the same manner, the research questions has been answered, in that there is no
significance difference between employees’ perception of OC in terms of
employees’ gender and work processes in HRV, OSV and OE across public
sectors.
For null hypothesis 5, 6 & 7, One-way independent ANOVA test was
used to test for differences between several independent groups. The one-way
independent ANOVA compares several means, when those means have come
from different groups of people based on respondents’ tenure, education level,
and organization type. It was found that based on employees tenure, no
significant difference in Tenure exhibited in a period of job possession in terms
of employees’ perception of OC and organizational commitment; OE, F (4, 245)
= 1.151, p >.05, HRV, F (4, 245) = .918, p >.05, and OSV, F (4, 245) = .864, p
>.05. There was no significant difference observed either in employees’
perception based on Education level in terms of OE, F (4, 247) = 1.918, p >.05,
in terms of HRV, F (4, 247) = .369, p >.05, and in terms of OSV, F (4, 247) =
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
101
.995, p >.05. On other hand, there is significant difference in employees
perception across Organizations in terms of OE (F (5, 254) = 2.395, p <.05) and
OSV, F (5, 254) = 3.67, p <.05) of the OC in which nine (20%) out of 45 tests
conducted revealed statistically significant differences in the perception of
organizational climate between organizations. However, no significance
difference observed in HRV, F (5, 254) = 2.081, p >.05) of employees perception
across public organizations.
The research findings proved that in terms of tenure, consistent result
obtained with the previous research conducted on academic staff of universities
in which there is no difference exist between young and older academic staff
(Idogho 2006). In terms of education level, even though no previous research
found to contrast with, the findings proved that employees’ background in
educational qualification has nothing to do with employees’ perception towards
OC. In terms of differences in organization type, partial result obtained with the
previous research conducted on academic staff of Universities that indicated the
existence of significant difference among universities in their perception of OC
(Idogho 2006) even if the unit of analysis are aggregated by human relations or
open systems values. The measuring instrument should demonstrate significant
differences in employee perceptions across organizations if it is to be useful in
discriminating between organizations (Patterson et al 2005).
Since, both null hypotheses of 5 & 6 were supported, the research
questions has been answered, in that there is no significance difference between
employees’ perception of OC in terms of employees’ tenure and education level
in HRV, OSV and OE across public sectors. On other hand, null hypothesis 7 is
partially supported in which the research questions have been answered, in that
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102
there is significance difference between employees’ perception of OC in terms of
OE & OSV. However, there is no significance difference between employees’
perception of OC in terms of organization type in HRV.
5.3. CONCLUSION
The ANRS public service management is slow becoming nexus between
government deliverables and citizens demand. To maintain efficiency in service
delivery in Amhara is somehow illusive because employees have an inherent
exposition on how the work environment could be crafted to suit the general
public. One such view is OC in which it was described in the introduction part as
employees’ perception of how it feels to work in the unit, and includes specific
aspects of the environment that directly affect people's ability to get the job
done.
The literature review in Chapter 2 indicates that OC can be used as a tool
to assess employee perception towards organizational practices in the notion of
upholding participatory management. Public institutions around the world,
these days, are becoming heavily accountable in their service delivery to bring
about customer satisfaction. Investigations have indicated that employees have
positive outlook and capable of sharing their responsibilities on the work
environment. This is a significant breakthrough for bolstering the
organizational change process that can be achieved within the realm of reform
programs.
Findings from the literature review indicate that there is a lack of
localized empirical research in the country that relates OC to organizational
effectiveness, especially in the public service institutions. Therefore, to bridge
this gap, the following research questions were developed: (a) To what extent
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103
does the OE of public sectors that is measured by organizational commitment of
employees are explained by the internal & external values of OC? (b) Is there
any significance positive relationship between the dimensions of OC and HRV
(internal focus) of flexible orientation? (c) Is there any significance positive
relationship between the dimensions of OC and OSV(external focus) of flexible
orientation?, and (d) Is there any significance difference between employees’
perception of OC in terms of employees’ gender, tenure, education level,
organization type, and work processes in HRV, OSVand OE across public
sectors?
From the research problem and research question, a research model was
developed adapted from competing values model. The model adopts HRV and
OSV as two aggregated independent variables, which are direct antecedents of
OE. Within each aggregated independent variables, there are sub-scales in
which for HRV there are Integration, Involvement, Supervisory Support,
Emphasis on Training, and Welfare and for OSV, there are Innovation &
Flexibility, Outward Focus, and Reflexivity. The last construct is OE as the
dependent variable measured by organizational commitment.
As part of the research model, eight hypotheses were derived, namely: (a)
The aggregated HRV & OSV of OC do not predict the OE that is measured by
employees’ organizational commitment. (b) The dimensions of OC (Integration,
Involvement, Supervisory Support, Training, and Welfare) do not positively
relate with HRV of flexible orientation. (c) The dimensions of OC (Innovation &
flexibility, Reflexivity, and Outward focus) do not positively relate with OSV of
flexible orientation. (d) There is no significant difference between employees’
perception of OC in terms of employees’ Gender in HRV, OSV and OE across
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
104
public sectors. (e) There is no significant difference between employees’
perception of OC in terms of employees’ Tenure in HRV, OSV and OE across
public sectors. (f) There is no significant difference between employees’
perception of OC in terms of Education level in HRV, OSV and OE across public
sectors. (g) There is no significant difference between employees’ perception of
OC in terms of type of organization in HRV, OSV and OE across public sectors.
(h) There is no significant difference between employees’ perception of OC in
terms of work processes in HRV, OSV and OE across public sectors.
A quantitative cross-sectional mixed research method was use to test the
eight hypotheses, and the unit of analysis were the individual, organization and
work groups. Standardized and validated questionnaires by Patterson et al
(2005) and Speier & Venkatesh (2002) were used to collect the data required for
analysis. The questions were adapted from previous studies and are based on
Likert scales.
The research data was tested using the SPSS Version 16 statistical test
utilities namely; multiple linear regression, Pearson’s moment-product
correlation, Independent samples t-test, and One-way independent samples
ANOVA test.
The hypotheses testing reveals the following results: (a) the independent
aggregate variables (HRV and OSV) positively & significantly predicted the
dependent variable (OE) and 32.5% of the variation in OE is explained by HRV
& OSV combined; (b) the dimensions Integration, Involvement, Supervisory
Support, Training and Welfare have shown significant positive correlation with
their respective HRV domain of OC; in addition, it also revealed that in relative
terms Supervisory support found to be the dominant and Integration becomes
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
105
the least influencing factors under HRV domain of OC; (c) the dimensions
Innovation & Flexibility, Outward Focus, and Reflexivity have shown
significant positive correlation with their respective OSV domain of OC, in
addition, it also revealed that in relative terms Innovation & Flexibility found to
be the dominant and Outward focus becomes the least influencing factor under
OSV domain of OC; (d) there is no significant difference exhibited in employees
gender in terms of employees’ perception of OC and OE; (e) there is no
significant difference exhibited in employees tenure in terms of employees
perception of OC and OE; (f) there is no significant difference exhibited in
employees education level in terms of employees’ perception of OC and OE; (g)
there is significant difference in employees’ perception in the type of
organizations in terms of OE and OSV of the OC. However, no significance
difference observed in HRV of employees’ perception across public
organizations; (f) there is no significant difference exhibited in work groups in
terms of employees’ perception of OC and OE.
5.4. IMPLICATIONS AND RECOMMENDATIONS
5.4.1. Implications for research
Future researchers may consider investigating whether OE and other OC
variables have a significant bottom-line impact on firm performance.
Investigating these bottom-line influences will help organizations decide
whether to allocate scarce resources toward developing positive OC. Moreover,
research may find that certain types of individual’s behaviours are more
susceptible to these OC variables and thus will be more motivated than other
types of employees. The implication of this would be a fundamental
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
106
improvement in efficiency and performance of organizations and reduced
turnover of employees.
Since this study focused only on direct path relationships, future research
should focus on assessing more mediating and moderating relationships.
Mediating and moderating relationships between the OC variables and
psychological and behavioural outcomes could help shed light on exactly how
these relationships vary. The implication of this would be a multidimensional
view of organizations and their interaction with the internal and external
environment.
Examining the association between OC and OE where if the latter is
measured in a multi-dimensional manner is also worthwhile. This is because an
aggregate unidimensional measure like OC may not help adequately capture the
contribution that employee perception may make to different dimensions of OC.
5.4.2. Recommendations for future research
This study focused on one of the three axes or value dimensions of OE
criteria’s i.e. on organizational focus, from an internal, micro emphasis on the
well-being and development of people in the organization to an external, macro
emphasis on the well-being and development of the organization itself (Quinn &
Rohrbaugh 1983). The other two, which are related to organizational structure
from an emphasis on stability to an emphasis on flexibility, and related to
organizational means and ends, and from an emphasis on important processes
to an emphasis on final outcomes (Ibid), should be addressed in future studies
based on the other two values; rational goal values & internal process values.
Because, it enables managers’ in organizations to assess employees’ experience
over many fundamental dimensions of OC (Patterson et al 2005).
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
107
Although the sample size had a satisfactory number of respondents to
compute all the statistical analyses, it was a randomly sampled from stratified
sample based on single-moment performance evaluation on change
implementation program. This implies an organization maintain its
achievement on change successes consistently for long period, which is unlikely
in real situation especially in the country’s creeping organizational change
initiatives. Therefore, future research should be conducted keeping these
variables constant, or doing studies comparing multiple industries or several
organizations with different sampling methodology.
Within each organization, this study also used just one data point to
gather information regarding the employees’ perception. For that reason, future
research should use multiple data points within one organization (for instance;
observe specific leadership behaviour, conduct in depth‐interviews with leaders
and survey the leaders’ subordinates). These multiple data points would results
in proven generelizability. Furthermore, the examination of employee’s
perceptions about their climate and its impact on OE requires relatively longer
period. A longitudinal design would capture the dynamic nature of the
perception process and its outcomes in a more comprehensive manner (Imran
et al. 2010).
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
108
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APPENDICES APPENDIX- A: List of Public Institution used for Sampling of Respondents
No Organizations No employees Perform
ance Results
Z- scores M F ToT
1 Bureau of Education 116 56 172 80.55% 2.27
2 Bureau of Justice 56 44 100 74.20% 1.48
3 Urban planning Institute 52 16 68 72.90% 1.32
4 Bureau of Industry & Urban works development 98 63 161 72.30% 1.25
5 Bureau of Technical & Vocational Training 46 19 65 71.85% 1.19
6 Office of Prison Administration 245 198 443 71.60% 1.16
7 Cooperatives Promotion Agency 28 10 38 71.45% 1.14
8 Police Commission 16 28 44 71.25% 1.12
9 Bureau of Administration & Security Affairs 27 20 47 71.00% 1.09
10 Bureau of Health 67 36 103 68.75% 0.81
11 Sport Commission 51 35 86 67.95% 0.71
12 Bureau of Finance & Economic Development 94 41 135 65.95% 0.46
13 Bureau of Env/ Protection & Land Adm. 67 36 103 65.60% 0.42
14 Management Institute 41 25 66 64.15% 0.24
15 Office of Communication 32 21 53 62.95% 0.09
16 ANRS Council Office 58 47 105 62.55% 0.04
17 Office of HIV Secretariat 32 15 47 61.95% -0.03
18 Supreme Court 45 44 89 61.15% -0.13
19 Revenue Authority 45 22 67 60.90% -0.16
20 Micro & Small Industries promotion Agency 48 35 83 60.50% -0.21
21 Bureau of Civil service 58 33 91 60.25% -0.24
22 Agricultural Research Institute 50 40 90 59.01% -0.40
23 Bureau of Agriculture 146 54 200 58.45% -0.47
24 Office of General Auditor 135 38 173 58.45% -0.47
25 Mining and Rural Energy Dev’t & Prom’n Agency 32 5 37 58.20% -0.50
26 Bureau of Water Development 138 44 182 58.15% -0.50
27 Bureau of Culture Tourism & Parks Development 74 19 93 57.15% -0.63
28 Bureau of Labour & Social Affairs 22 9 31 56.80% -0.67
29 Bureau of Trade & Transport 79 53 132 55.50% -0.83
30 Office of Militia 4 4 8 53.75% -1.05
31 Secretariat of the Council of the ANRS 35 20 55 53.05% -1.13
32 Bureau of Women, Youth & Children Affairs 42 35 77 52.80% -1.16
33 Office of Food Security & Disaster Prevention 73 24 97 50.70% -1.42
34 Parks Development & Protection Authority 17 2 19 50.15% -1.49
35 Ethics and Anti-corruption Commission 47 15 62 50.00% -1.51
36 Mass media Agency 154 80 234 47.78% -1.79
Source: Amhara National Regional State Amare (2010)
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
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Table of Z values
Confidence Level Z Factor 99.9 3.2905 99.7 3.0000 99.5 2.8070 99.0 2.5758 98.0 2.3263 95.5 2.0000 95.0 1.9600 90.0 1.6449 85.0 1.4395 80.0 1.2816
APPENDIX- B: Determination of Respondents Sample
A formula for Sampling (Renckly 2002: 25);
𝑛 = 𝑁Z2 ∗0.25
[𝑑2∗ (𝑁−1)]+ ⌊𝑍2∗0.25⌋ , OR
𝑛 = 384∗N
384+N, (for d = 0.05 & z = 1.96)
Where: n = sample size required
N = total population size (known or estimated)
d = precision level (usually .05 or .10)
Z = number of standard deviation units of the sampling distribution
corresponding to the desired confidence level
Hence, for our sample, N = 552 n = 3,656 ∗ 1.962 ∗0.25
[0.052∗ 3,656]+ ⌊1.962∗0.25⌋
n = 3,511.22/10.10
n = 348
If the total population (N) is 3,656, and we wish a 95% confidence level and ± 5
percent precision level (d = .05, Z = 1.96 from the table) and the number of
distributed questionnaire without adjusting for response rate will be 348.
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APPENDIX- C: Questionnaire of the Study
Questionnaire
Dear respondent,
My name is Mesfin Raji, I am carrying out a research entitled “Employees’ perception of organizational climate and its implications for organizational effectiveness in Amhara regional PSOs”. This forms part of the requirements for the award of Executive Master of Business Administration Degree at Bahirdar University. The aim of the study is to find ways of improvement of the work environment incorporating employees’ needs. Your participation and views regarding the topic is fundamentally important for the success of the study. I would be grateful for your cooperation in filling the accompanying questionnaire completely. I assure you all replies to this questionnaire are confidential and will be used for statistical purposes only, as part of academic research. Please attempt all questions based on the instructions given below promptly. I appreciate in devoting your valuable time in filling the questions.
I really appreciate your Participation in the Study!!
Instructions
1. You don’t have to state your name or any other personal identification other
than the one you asked to provide in this questionnaire.
2. Read the questions in the left hand of the table and rate parallel to them
according to your feeling using the space provided on the right hand side of the
table.
3. For Part I, give your answer by ticking “√” or “X” sign where it best describes
you.
4. For Part II, rate each question from least 1 - “Strongly Disagree” to the most 5
- “Strongly Agree” using the signs shown in the above instruction number 3.
5. Question 42 will be answered based on your response for Question 41, please
don’t answer Question 42 if your answer for question for 41 is “Yes”,
Employees’ Perception of Organizational Climate and its implications for Organizational Effectiveness
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Part I – Information on demography
1)Gender Male 1
4) Educational level attained Female 2 2)Work Process you are working in
Core Process 1 Support Process 2
3)Tenure within the current organization
Below 5 Years 1 10th ፣12th and below 1 From 5-10 Years 2 Certificate 2 From 11-15 Years 3 Diploma 3 From 16-20 Years 4 Bachelor Degree 4 Above 20 years 5 Second Degree & above 5
Part II – Information on the Subject matter
No
Rating scale: Strongly disagree (1), Disagree (2), Undecided (3), Agree (4), and Strongly agree (5)
Questions (1) (2) (3) (4) (5) 1 People are suspicious of other departments* 2 There is very little conflict between departments here 3 People in different departments are prepared to share
information
4 Collaboration between departments is very effective 5 There is very little respect between some of the
departments here*
6 Management involve people when decisions are made that affect them
7 Changes are made without talking to the people involved in them*
8 People don’t have any say in decisions which affect their work*
9 People feel decisions are frequently made over their heads*
10 Information is widely shared 11 There are often breakdowns in communication here* 12 Supervisors here are really good at understanding
peoples’ problems
13 Supervisors show that they have confidence in those they manage
14 Supervisors here are friendly and easy to approach 15 Supervisors can be relied upon to give good guidance
to people
16 Supervisors show an understanding of the people who work for them
17 People are not properly trained when there is a new machine or bit of equipment*
18 People receive enough training when it comes to using new equipment
19 The company only gives people the minimum amount of training they need to do their job*
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No Questions Rating scale (1) (2) (3) (4) (5)
20 People are strongly encouraged to develop their skills 21 This company pays little attention to the interests of
employees*
22 This company tries to look after its employees 23 This company cares about its employees 24 This company tries to be fair in its actions towards
employees
25 New ideas are readily accepted here 26 This company is quick to respond when changes need
to be made
27 Management here are quick to spot the need to do things differently
28 This organization is very flexible; it can quickly change procedures to meet new conditions and solve problems as they arise
29 Assistance in developing new ideas is readily available 30 People in this organization are always searching for
new ways of looking at problems
31 This organization is quite inward looking; it does not concern itself with what is happening in the market place*
32 Ways of improving service to the customer are not given much thought*
33 Customer needs are not considered top priority here* 34 This company is slow to respond to the needs of the
customer*
35 The methods used by this organization to get the job done are often discussed
36 There are regular discussions as to whether people in the organization are working effectively together
37 In this organization, time is taken to review organizational objectives
38 I am proud to tell others that I am part of this organization.
39 I am proud to tell others that I am part of this organization.
40 I am proud to tell others that I am part of this organization.
41 Generally, do you believe that your organization is effective in doing its job? Yes ____ No____
42 If your answer is "No" please rank from 1 to 8 the following possible interventions strategy in their order of priority within the scope of the research
1) Integration 3) Supervisory Support
5) Welfare 7) Outward Focus
2) Involvement 4) Training
6) Innovation & Flexibility
8) Reflexivity
Remark: Items marked with an asterisk (*) are reversed. - Items from 1-37 refers OC measures - Items from 38 – 40 refers Organizational Commitment measures
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APPENDIX- D: SPSS Chart Outputs of all Variables
Integration
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Involvement
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Supervisory Support
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Emphasis on Training
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Welfare
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Innovation & Flexibility
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Outward Focus
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Reflexivity
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Organizational Commitment
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Human Relations Values
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Open Systems Values
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APPENDIX- E: Factor Analysis for Multifactor & Single factor structures
Results for HRV
Total Variance Explained
Component
Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 7.320 38.529 38.529 5.104 26.865 26.865 2 1.537 8.091 46.620 2.581 13.582 40.447 3 1.334 7.020 53.639 1.763 9.281 49.728 4 1.174 6.182 59.821 1.524 8.021 57.749 5 1.025 5.397 65.218 1.419 7.468 65.218 6 .842 4.430 69.648
7 .692 3.640 73.287 Collapsed for saving space
18 .236 1.243 98.980
19 .194 1.020 100.000 Extraction Method: Principal Component Analysis.
Results for OSV
Total Variance Explained
Componen
t
Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 3.741 46.765 46.765 3.207 40.088 40.088 2 1.516 18.952 65.717 2.050 25.629 65.717 3 .766 9.579 75.296
4 .577 7.217 82.513 Collapsed for saving space
7 .315 3.939 96.545
8 .276 3.455 100.000 Extraction Method: Principal Component Analysis.
Results for OE
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 2.375 79.181 79.181 2.375 79.181 79.181 2 .383 12.778 91.959
3 .241 8.041 100.000 Extraction Method: Principal Component Analysis.
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Results for Integration
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 1.503 75.140 75.140 1.503 75.140 75.140 2 .497 24.860 100.000
Extraction Method: Principal Component Analysis. Results for Involvement
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 1.696 56.517 56.517 1.696 56.517 56.517 2 .708 23.608 80.125
3 .596 19.875 100.000 Extraction Method: Principal Component Analysis.
Results for Supervisory Support
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 3.485 69.697 69.697 3.485 69.697 69.697 2 .488 9.769 79.466
3 .426 8.511 87.978
4 .354 7.076 95.053
5 .247 4.947 100.000 Extraction Method: Principal Component Analysis.
Results for Emphasis on Training
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 1.863 62.106 62.106 1.863 62.106 62.106 2 .711 23.685 85.792
3 .426 14.208 100.000 Extraction Method: Principal Component Analysis.
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Results for Welfare
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 2.331 77.705 77.705 2.331 77.705 77.705 2 .434 14.469 92.174
3 .235 7.826 100.000 Extraction Method: Principal Component Analysis.
Results for Innovation & Flexibility
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 3.704 61.732 61.732 3.704 61.732 61.732 2 .750 12.505 74.237
3 .523 8.718 82.955
4 .409 6.820 89.775
5 .324 5.405 95.180
6 .289 4.820 100.000 Extraction Method: Principal Component Analysis.
Results for Outward Focus
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 2.005 66.835 66.835 2.005 66.835 66.835 2 .614 20.478 87.313
3 .381 12.687 100.000 Extraction Method: Principal Component Analysis.
Results for Reflexivity
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 1.962 65.389 65.389 1.962 65.389 65.389 2 .544 18.139 83.528
3 .494 16.472 100.000 Extraction Method: Principal Component Analysis. Source: Researcher’s own computation
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APPENDIX- F: Item Loading for the Single Factor for HRV & OSV
Rotated Component Matrixa HRV(HRV) OSV(OSV)
Component Component 1 2 3 4 5 1 2
Qn15 .826 Qn27 .816
Qn14 .813 Qn29 .815
Qn16 .784 Qn28 .784
Qn12 .782 Qn26 .769
Qn13 .743 Qn25 .764
Qn24 .697 revQn33 .861 Qn23 .671 revQn32 .801 Qn22 .600 .511 revQn34 .741 revQn21 .705
Qn18 .601
Qn20 .584
Qn6 .551
Qn3 .781
Qn4 .713
revQn5 .573
revQn11 .795
revQn17 .565 revQn7 .538 revQn19 .816 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations. a. Rotation converged in 3
iterations. Kaiser-Meyer-Olkin Measure of Sampling Adequacy
.914 .804 Source: Researcher’s own computation
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APPENDIX- G: Item Loading for the Single Factor for Sub-scales of HRV & OSV
Component Matrixa Items Component Component Component
1 1 1 Integration Welfare Organizational
effectiveness Qn3 .867 Qn22 .910 Qn38 .909 Qn4 .867 Qn23 .898 Qn39 .902 Qn24 .835 Qn40 .858
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .500 .709 .725
Involvement Innovation & Flexibility
Qn6 .789 Qn25 .744 revQn9 .733 Qn26 .770 Qn10 .732 Qn27 .819 Qn28 .808 Qn29 .828 Qn30 .741
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
.635 .856 Supervisory Support Outward Focus
Qn12 .814 revQn33 .874 Qn13 .798 revQn34 .790 Qn14 .814 revQn32 .785 Qn15 .887 Qn16 .859
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
.874 .652 Emphasis on Training Reflexivity
revQn17 .699 Qn35 .797 Qn18 .803 Qn36 .821 Qn20 .855 Qn37 .807
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
.623 .685
Source: Researcher’s own computation
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APPENDIX- H: Reliability Statistics for all Variables
Reliability Statistics for HRV Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Squared Multiple
Correlation
Cronbach's Alpha if
Item Deleted
Qn3 54.53 172.520 .423 .354 .898 Qn4 54.93 168.077 .524 .417 .895 revQn5 54.91 174.756 .327 .242 .901 Qn6 55.20 165.180 .589 .412 .893 revQn7 54.97 172.420 .397 .284 .899 revQn11 55.27 175.981 .268 .174 .903 Qn12 55.04 162.647 .673 .568 .891 Qn13 55.00 165.112 .646 .553 .892 Qn14 54.88 164.430 .615 .574 .893 Qn15 55.03 161.976 .715 .686 .890 Qn16 54.94 161.749 .739 .664 .889 revQn17 55.11 169.363 .459 .346 .897 Qn18 55.33 170.043 .466 .364 .897 revQn19 55.02 181.475 .099 .147 .907 Qn20 55.24 161.773 .693 .582 .890 revQn21 55.18 170.656 .445 .329 .898 Qn22 55.26 161.792 .732 .684 .889 Qn23 55.53 162.435 .715 .682 .890 Qn24 54.99 164.876 .665 .556 .891 Cronbach's Alpha for N of items 19 = .900 Cronbach's Alpha can be improved to .907 but it is not a substantial change if the item is deleted
Source: Researcher’s own computation
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Reliability Statistics for OSV
Item-Total Statistics
Scale Mean if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total
Correlation
Squared Multiple
Correlation
Cronbach's Alpha if Item
Deleted Qn25 23.02 24.347 .591 .497 .811 Qn26 23.20 23.425 .626 .539 .806 Qn27 23.10 23.005 .663 .557 .801 Qn28 23.00 23.958 .665 .545 .802 Qn29 23.27 24.010 .629 .530 .806 revQn32 22.40 27.300 .368 .359 .837 revQn33 22.40 26.002 .465 .464 .827 revQn34 22.49 25.942 .478 .364 .826 Cronbach's Alpha for N of items 8 = .835 Cronbach's Alpha can be improved to .837 but it is not a substantial change if the item is deleted
Reliability Statistics for Sub-scales of HRV & OSV Reliability Statistics for Integration
Item-Total Statistics Scale Mean
if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlatio
n
Squared Multiple
Correlation
Cronbach's Alpha if Item
Deleted
Qn3 3.20 1.448 .503 .253 .a Qn4 3.60 1.199 .503 .253 .a Cronbach's Alpha for N of items 2 = .667 Cronbach's Alpha cannot be improved since the value will become negative due to a negative average covariance among items.
Source: Researcher’s own computation
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Item-Total Statistics
Scale Mean if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Squared Multiple
Correlation
Cronbach's Alpha if
Item Deleted
Reliability Statistics for Involvement Qn6 6.28 3.645 .466 .217 .451 revQn9 6.20 4.006 .404 .167 .543 Qn10 5.94 4.251 .402 .167 .545 Cronbach's Alpha for N of items 3 = .615 Cronbach's Alpha cannot be improved as no better value will be obtained if any item is deleted Reliability Statistics for Supervisory Support Qn12 12.67 17.132 .707 .501 .873 Qn13 12.63 17.955 .685 .491 .877 Qn14 12.52 17.154 .706 .514 .873 Qn15 12.67 16.540 .805 .664 .850 Qn16 12.57 17.033 .765 .608 .860 Cronbach's Alpha for N of items 5 = .891 Cronbach's Alpha cannot be improved as no better value will be obtained if any item is deleted Reliability Statistics for Emphasis on training revQn17 8.81 5.845 .396 .185 .382 Qn18 9.03 5.984 .416 .324 .368 revQn19 8.72 8.535 -.008 .012 .691 Qn20 8.94 5.174 .518 .376 .254 Cronbach's Alpha for N of items 4 = .528 Cronbach's Alpha for N of items 3 if item(revQn19) discarded = .691 Reliability Statistics for Welfare Qn22 5.74 4.447 .780 .629 .749 Qn23 6.01 4.560 .758 .607 .772 Qn24 5.47 5.161 .654 .430 .866 Cronbach's Alpha for N of items 3 = .856 Cronbach's Alpha can be improved to .866 but it is not a substantial change if the item is deleted
Source: Researcher’s own computation
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Item-Total Statistics Scale Mean
if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple
Correlation
Cronbach's Alpha if
Item Deleted
Reliability Statistics for Innovation & Flexibility Qn25 14.89 18.707 .636 .495 .861 Qn26 15.07 17.946 .663 .515 .857 Qn27 14.97 17.447 .717 .550 .847 Qn28 14.87 18.436 .705 .544 .850 Qn29 15.13 17.986 .731 .570 .845 Qn30 15.04 18.790 .624 .418 .863 Cronbach's Alpha for N of items 6 = .875 Cronbach's Alpha cannot be improved as no better value will be obtained if any item is deleted Reliability Statistics for Outward Focus revQn32 7.36 2.942 .532 .316 .719 revQn33 7.36 2.417 .670 .449 .556 revQn34 7.45 2.735 .541 .323 .712 Cronbach's Alpha for N of items 3 = .751 Cronbach's Alpha cannot be improved as no better value will be obtained if any item is deleted Reliability Statistics for Reflexivity Qn35 6.63 3.299 .543 .296 .667 Qn36 6.91 3.049 .576 .332 .628 Qn37 6.83 3.253 .557 .312 .651 Cronbach's Alpha for N of items 3 = .735 Cronbach's Alpha cannot be improved as no better value will be obtained if any item is deleted Reliability Statistics for OE Qn38 7.03 4.513 .782 .625 .783 Qn39 7.11 4.737 .771 .611 .794 Qn40 6.80 5.074 .695 .484 .862 Cronbach's Alpha for N of items 3 = .868 Cronbach's Alpha cannot be improved as no better value will be obtained if any item is deleted
Source: Researcher’s own computation
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APPENDIX- I: SPSS Outputs of Regression Charts
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APPENDIX- J: Homogeneity test of Variance for Grouping Variable
Variances
Grouping Variable Variables Levene
Statistic df1 df2 Sig.
Education level
Organizational Commitment 1.305 4 247 .269
Human Relations Values .983 4 247 .418 Open Systems Values 2.597 4 247 .037
Grouping Variable Variables Levene
Statistic df1 df2 Sig.
Tenure
Organizational Commitment .292 4 245 .883
Human Relations Values .577 4 245 .680 Open Systems Values .204 4 245 .936
Grouping Variable Variables Levene
Statistic df1 df2 Sig.
Organization Type
Organizational Commitment .621 5 254 .684
Human Relations Values 1.607 5 254 .159 Open Systems Values 2.118 5 254 .064
Correlations for regressed variables
Variables Organizational Commitment
Human Relations
Values
Open Systems Values
Pearson Correlation
Organizational Commitment 1.000
Human Relations Values .523*** 1.000 Open Systems Values .540*** .744*** 1.000
***Correlation significant, p < .001 Sig. (1-tailed)
Source: Researcher’s own computation
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APPENDIX- K: Suggestion of Intervention Strategies by Respondents
Do you believe that your organization is effective in doing its job? Frequency Percent Valid
Percent Cumulative
Percent Valid Yes 158 60.8 65.8 65.8
No 82 31.5 34.2 100.0 Total 240 92.3 100.0
Missing 0 20 7.7
Total 260 100.0 For the response “No”, prioritized intervention strategy suggested by
respondents
Variables Valid No Suggestion
Missing Total Ranking (Mode)
Integration 70 12 178 260 (4a)3a Involvement 70 12 178 260 3
Supervisory Support 70 12 178 260 4 Training 70 12 178 260 1 Welfare 70 12 178 260 2 Innovation & Flexibility
70 12 178 260 (8a)1a
Outward Focus 70 12 178 260 7
Reflexivity 70 12 178 260 6 Total 240 12 8 260 a. Multiple modes exist. All values are shown
Source: Researcher’s own computation