Business Studies Journal (Print ISSN: 1944-656X; Online ISSN: 1944-6578)

Short commentary: 2022 Vol: 14 Issue: 4

A study on employee perception towards organisational climate and HR practices in it companies at Chennai

Bala Murugan G, Anna University

Parthasarathi K, Anna University

Citation Information: Murugan, B.G.,& Parthasarathi, K. (2022). A study on employee perception towards organisational climate and hr practices in it companies at chennai. Business Studies Journal, 14(4), 1-8.

Abstract

Organization climate refers to the quality of working environment. Organizational climate is determined by member characteristics i.e., age, qualifications, experience, gender etc. Apart from this there are several other organizational variables which also influence organizational climate namely communication, support system, reward system, conflict resolution, participation in decision making. Human resource management plays an important role and largely determines a firm’s success and failure. HRM is broadly defined as the area of professional practice and organizational activities. This study reveals significant differences in employees’ perception of organizational climate and HR practices across demographic and organizational variables. This survey was passed in IT companies in Chennai. The research design used for this study is descriptive in nature. Sampling technique adopted for this study is Convince sampling, non-probability sampling. Data collection is made with primary data and secondary data in this study. The primary data were collected through questionnaire by means of mailing with the employees. The source of secondary data was website, journals, and research paper. The tool used for analysing and interpreting the variables is percentage analysis, chisquare test in SPSS, and regression analysis in SPSS.

Keywords

Organizational Climate, HR Practices, Non-Probability Sampling, Employee Perception.

Introduction

The organizational climate of a business is the perception employees have of the workplace environment. Each employee is conscious of the level of organizational quality of the place they work in. From internal surveys, it is then possible to measure their satisfaction with the workplace environment, and understand what the climate like in your business is. The organizational climate determines the quality of the experience of the employees by defining a clear psychological profile, albeit momentary. This is because employees’ perception can vary depending on the internal practices that are implemented. The better the climate, the better the performance. HR processes play a very important role in the development of the organization and their maintenance staffs are happy with the work. The working-class culture which will explain employees' perceptions of the organization and HR Practices in the present situation most organizations focus on is creating a friendly environment with employee's condition. Due to the bad culture and abnormal behavior of employees, the employees leave the job both changing their work and moving one organization to another organization and another to another it becomes a staff practice in the organization. Performance analysis helps to create the right work to improve efficiency and satisfaction.

Objectives of the study

1. To measure the IT employee’s perception towards their organizational climate

2. To analyze the level of employee perception towards HR practices

3. To find out whether the employees are satisfied with the HR practices followed in the organization

4. To find out the factors affecting the organizational climate

Need for the Study

Employee perception is an essential factor in any organization. It mainly focuses on fulfilling the needs of the organization, which helps to achieve its objectives framed. The study is taken up to find out the perception of employees in IT industries and also to suggest for the further measure.

Review of Literature

Vaibhav & Deepak (2019): Organizational climate, is often defined as the recurring patterns of behavior, attitudes and feelings that characterize life in the organization. It is understood that organizational climate is all about how following the culture set in the organization. It is fulfilling the beliefs and expectations set in the organization. It can be observed that as the industry scenario changes, the climate enduring over time changes or shifts. These shifts either tend to be better for the organization or worse in some cases. Organizational climate is affected by internal or external environment.

Kumari & Kumar (2020): The best Human Resources (HR) practices in the organization will create a positive working culture organization. This study brings to the culture of the organization the characteristics of the employees in which they work factory. Organizational culture contains values and beliefs of people in an organization that supports the goals of the organization; the culture of the organization contributes to employee satisfaction. This also explains the various dimensions of organizational performance.

Pankaj (2019): Human Resources Development can be viewed fundamentally as an approach or strategy to achieve integration between the individual employee and the organization by developing an appropriate mutual relationship. The present study is an attempt to ascertain whether the top management in public sector organizations believes in employee development and to what extent they are helpful in developing organizational development climate in their undertakings. The study is quite significant as it has significant perception of employees on the efficiency and productivity of the organization.

Usha & Sasikumar (2018): The main objective of the study is to know about the factors that contribute to the establishment of organizational culture and policies and to analyze the perception of employees towards organizational culture based on dimensions. For this a sample of 84 was collected from the employees in ITES industry were percentage analysis, chi-square and factor analysis were used as tools to analyze the data. The conclusion is that the employees feel that they have technological changes always and they felt that the performance evaluations measure an employee's adaptation to change sometimes.

Sankeerthana & Chaitanya (2019): Employees perception is formed by organizational roles, styles of leadership, styles of communication at the workplace etc. and so it is very important that the organization be able to form the correct perception in the minds of its employees. To understand the extent to which the perception enhances the employee in an organization. It also states the factors of perception, primary and secondary objectives, and features of organization and HR practices based on employee commitment in an organization.

Wang et al. (2020): Scholars are directing more attention to employee perceptions of Human Resources (HR) practices and have explored issues such as whether and how employees’ idiosyncratic or collective perceptions of HR practices shape employee outcomes. To further this area of research, we seek to determine what authors mean when they refer to “employee perceptions of HR practices.

Vanitha (2021): This main aim of this research is to know the Employee’s Perception of HR Practices followed in the organization. The study is descriptive in nature. From this study it was found that employees of Sarathy Export Fabrics employees were aware of their HR practices followed in the organization.

HR practices implemented by the company are shared to employees by proper channels among employees; they also conduct training programs for the development of employee’s performance.

Chitra et al. (2018): This paper aims to analyses the employee’s perception towards organizational climate factors in the Heavy vehicles body buildings industry. Descriptive research technique is applied. The sample respondents are working in the top companies of heavy vehicles body building in the Karur, District. The collected data are entered into the SPSS 16 version software package. Further, descriptive statistics is applied to know the employee’s perception towards organizational climate. It is found that autonomy, involvement, and training are the factors moderately perceived by the employees in the heavy vehicles body buildings industry.

Kannan (2014): In this paper, an attempt has been made to study the perception of the employees towards human resource management policies and practices of the select cooperative sugar mills in Tamil Nadu.

For this reason, 513 employees were selected from 4 co-operative sugar mills. Male respondents, respondents in the age group above 55 years, respondents having PG and above qualifications, respondents belonging to monthly salary of above Rs.35000, officers, respondents belonging to length of experience above 30 years, permanent employees and employees of the Salem Co-operative Sugar Mills are more satisfied towards human resource management policies and practices of the select co-operative sugar mills.

Anitharajathi & Divya (2016): Human Resources are cognizance, skills, creative abilities, attitude and other attributes obtained from the population on organizations point of view, they represent the total of the inbuilt abilities, acquired knowledge and skills as exemplified in the talents and attitude of the employees.

The policies, strategies and practice lead the company to react on its objectives. It should be a cultural reflection of the values and beliefs of the organization. The policies should be very brief and clear so that everyone in the organization can understand its objective, the steps to achieving the mission.

Research Methodology

Sample Design

Sampling is the selection of some part of aggregate or totality on the basis of which aggregate on the basis of totality is made. A representative part of population is sample. The process of selecting representative sample is sampling design.

From the infinite population 120 samples were chosen on the basis of snowball sampling.

1. Data source: Survey

2. Research instrument: Structured questionnaire

3. Sampling technique: Connivance

4. Population: Employees in IT companies

5. Sampling size: 120 sample

Data Collection

Data is collected through primary source, Data observed through directly from the first-hand information that is from the respondents which is employees from IT companies. It is collected through questionnaire.

Data Collection Instrument

The instrument used for the data collection through questionnaire. A questionnaire is simply a formalized set of questions for eliciting the information

Questionnaire Design

1. Scaling technique – Likert 5-point scale.

2. Questionnaire structure – Structured, closed ended questions.

Statistical Tools

Statistical methods constitute an integral part of research analysis. Any analysis of data should be subjected to relevant analysis as useful and meaningful conclusions can be arrived at. It is method of collecting, summarizing, analyzing and interpreting variable numerical data. Statistical methods can be contrasted with deterministic methods, which are appropriate where observations are exactly reproducible or are assumed to be so. The following are tools which are applied in this study.

1. Chi- Square

2. Regression

Chi Square Test

Hypothesis 1

H0: There is no association between the educational qualification of the respondents and training program organized by your organization.

H1: There is association between the educational qualification of the respondents and training program organized by your organization.

Interpretation

The Pearson Chi-Square value of the above table is 121.006 at a 5% level of significance. P-value is 0.000 which is lesser than 0.05, hence null hypothesis is rejected; it concluded that there is association between the educational qualification of the respondents and training program organized by your organization (Table 1).

Table 1 Educational Qualification Training Program Organised by Organization
  Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 121.006a 8 0
Likelihood Ratio 12.579 8 0.127
Linear-by-Linear Association 2.479 1 0.115
No of Valid Cases 120    

Hypothesis 2

H0: There is no association between the gender of the respondents and incentives by the organization.

H1: There is association between the gender of the respondents and incentives by the organization.

Interpretation

The Pearson Chi-Square value of the above table is 12.933 at a 5% level of significance. P-value is 0.012 which is lesser than 0.05, hence null hypothesis is rejected; it concluded that there is association between the gender of the respondents and incentives by the organization (Table 2).

Table 2 Gender Incentives by the Organization
  Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 12.933a 4 0.012
Likelihood Ratio 13.638 4 0.009
Linear-by-Linear Association 9.189 1 0.002
N of Valid Cases 120    

Hypothesis 3

H0: There is no association between the gender of the respondents and organization’s environment.

H1: There is association between the gender of the respondents and organization environment.

Interpretation

The Pearson Chi-Square value of the above table is 6.940 at a 5% level of significance. P-value is 0.139 which is lesser than 0.05, hence null hypothesis is accepted; it concluded that there is no association between the gender of the respondents and organization’s environment (Table 3 & 4).

Table 3 Gender organization’s environment Chi-square tests
  Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 6.940a 4 0.139
Likelihood Ratio 8.879 4 0.064
Linear-by-Linear Association 4.036 1 0.045
N of Valid Cases 120    
Table 4 Employee Relationship Communication Anova
Model Sum of Squares df Mean Square F Sig.
Regression 15.51 1 15.51 28.383 .000b
Residual 64.482 118 0.546    
Total 79.992 119      

Regression

Hypothesis 4

H0: There is no relationship exist among Employee relationship and Communication.

H1: There is relationship exist among Employee relationship and Communication.

Interpretation

From the table, it is inferred that P value is greater than 0. i.e., P<0.05 (0.00<0.05) is less than the critical value 0.05, hence H0 is rejected and H1 is accepted. Therefore, there is positive relationship among Employee relationship and Communication (Table 5).

Table 5 Employee Relationship Communication Coefficients
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 2.121 0.315   6.739 0
Your organization supports two way communication 0.421 0.079 0.44 5.328 0

Hypothesis 5

H0: There is no relationship exist among Remuneration and Organizational growth

H1: There is relationship exist among Remuneration and Organizational growth

Interpretation

From the table, it is inferred that P value is greater than 0. i.e., P<0.05 (0.00<0.05) is less than the critical value 0.05, hence H0 is rejected and H1 is accepted. Therefore, there is positive relationship among Remuneration and Organizational growth (Table 6 & 7).

Table 6 Remuneration Organizational Growth Anova
Model Sum of Squares df Mean Square F Sig.
1 Regression 10.148 1 10.148 17.915 .000b
Residual 66.843 118 0.566    
Total 76.992 119      
Table 7 Remuneration Organizational Growth Coefficients
Model   Unstandardized Coefficients   Standardized Coefficients t Sig.
    B Std. Error Beta    
1 (Constant) 2.817 0.286   9.856 0
  Do you adequately remunerated for your exceptional performance 0.332 0.079 0.363 4.233 0

Findings from the Study

Chi Square test

1. There is association between the educational qualification of the respondents and training program organized by your organization.

2. There is association between the gender of the respondents and incentives by the organization

3. There is no association between the gender of the respondents and organization’s environment.

Regression Analysis

1. There is positive relationship among Employee relationship and Communication.

2. There is positive relationship among Remuneration and Organizational growth.

Conclusion

The conclusion of this study shows the employee’s perception towards organizational HR practices. By the perception, it also signifies the best HR practices of an organization. These practices are important to carry out different tasks between the employees in an organization. Through perception, it shows the commitment in the organization. And Organization climate depends on perception, feelings and trust, of the employees of the organization. Employee perception about the organization they are working in depends on various factors like recognition in the job, team members and managers help, changes that happen for the growth of the employees and the company, honest communication, training provided for improving performance and various ways opportunities provided for career growth and advancement.

References

Anitharajathi, V.M., & Divya, K. (2016). Human Resource: Employee’s Perception Towards HR Policies in Information Technology (IT) Companies. International Journal for Innovative Research in Science & Technology -IJIRST, 2(11)54 -56.

Chitra, P., Balajai, V., & Jaykrishnan, J. (2018). Employees Perception on Organizational Climate Factors in Heavy Body Buildings Industry. Management, 3, 1-501.

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Kannan, V. (2014). Employees’ Perception towards Human Resource Management Policies and Practices. International  Journal of Engineering and Management Research (IJEMR), 4(6), 90-96.

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Usha, S., & Sasikumar, K.  (2018). A study on organisational climate with reference to its companies in coimbatore city. International Journal of Interdisciplinary Research in Arts and Humanities (IJIRAH), 3(1), 340 – 344.

Vaibhav, P.V., & Deepak, N. (2019). A study of employee perception of organizational climate of small scale cement companies in north Karnataka. International Journal of Management, Technology And Engineering, 9(2), 369 -374.

Vanitha, P. (2021). Employee’s Perception towards HR Practices. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), 1794-1806.

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Wang, Y., Kim, S., Rafferty, A., & Sanders, K. (2020). Employee perceptions of HR practices: A critical review and future directions. The International Journal of Human Resource Management, 31(1), 128-173.

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Received: 28-Jun-2022, Manuscript No. BSJ-22-12269; Editor assigned: 30-Jun-2022, PreQC No. BSJ-22-12269(PQ); Reviewed: 14-Jul-2022, QC No. BSJ-22-12269; Revised: 18-Jul-2022, Manuscript No. BSJ-22-12269(R); Published: 25-Jul-2022

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