Study on the effects of organizational climate on motivation and commitment of employees. this thesis study uses both primary research and secondary data to conclude the relationship between the variables.

1. Effect of Organizational Climate on
Employee Motivation and Organizational
commitment in Pakistan
Research based Thesis
Page 0
8/16/2014
Institute of Business Management
Submitted to:
Sir Ashraf Janjua
Prepared by:
Sameen Salman
ID: 9929
Subject: Seminar in
Economic Policy

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Executive Summary
Organizations have become very different then what they were previously. The systems,
processes have changed and an individual is well aware of his or her interests and demands. This
creates a lot of challenges for the organization to continuously evolve their systems and keep
their eyes peeled for upcoming changes and find out new ways to deal with these challenges.
Previously, organizational climate was just a concept whose application was limited but that’s
not the case today and this concept has evolved a lot and its importance has increased
immensely. Now this concept is in a position to impact other factors on the job which make up
the organization.
This paper researches on the possibility of organizational climate to have impacts on motivation
and commitment of employees working in any organization. Sufficient literatures regarding its
concepts have been pondered over in this paper. Data has been collected specifically from those
individuals who have minimum one year experience in any corporate field in management of a
company. Further analysis is carried out using questionnaire which comprises of questions aimed
at identifying the importance of climate and its effects on motivation and commitment level of
employees.
The findings of the questionnaires are further analyzed by help of different theories. The analysis
came to discover that there is direct relationship between these three factors. Meaning that
organizational climate directly influences motivation and commitment of employees. Negative
organizational climate will have negative impacts on these two and positive organizational
climate will have positive effects.
There were some limitations in the study which were delayed responses of the targeted audience
because target respondents were all working professionals and were busy In their work and the
other limitation being short time. However, the study was completed within the time frame
developed and was successful in studying the cause it set out to.

3. Contents
Executive Summary ....................................................................................................................................... 1
Introduction to the topic: ............................................................................................................................. 3
Literature Review .......................................................................................................................................... 4
Organizational Climate .............................................................................................................................. 4
Motivation................................................................................................................................................. 6
Motivation Theories: ................................................................................................................................. 7
Organizational Commitment................................................................................................................... 10
Significance of the study: ............................................................................................................................ 11
Hypothesis: ................................................................................................................................................. 12
Variables: ................................................................................................................................................ 12
Research Objectives .................................................................................................................................... 12
Research Questions .................................................................................................................................... 13
Research Design: ......................................................................................................................................... 13
Methodology: .............................................................................................................................................. 13
Data Collection Method: ......................................................................................................................... 13
Sources of Data ....................................................................................................................................... 13
Sample Size ............................................................................................................................................. 13
Statistical Tool ......................................................................................................................................... 13
Research Findings ....................................................................................................................................... 14
Analysis: ...................................................................................................................................................... 24
Conclusion and Recommendations: ........................................................................................................... 25
Limitations: ................................................................................................................................................. 26
Appendix: .................................................................................................................................................... 27
Bibliography ................................................................................................................................................ 27
Questionnaire used: .................................................................................................................................... 29
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Introduction to the topic:
Organizations are more concerned about maintaining an effective organizational climate now
because of fast growth and competition. It can be made a competitive advantage of the company.
There has been a lot of research on the topic of organizational climate and its impacts. The
earliest researches can be tracked back to 1930s. Organizational climate is synonymous with
corporate environment. It is the direction to measure the culture of an organization. It comprises
of many components which shape up the environment both directly and indirectly influencing
employee attitudes and behavior.
Researchers suggest that organizational culture is very closely related to organizational climate.
Early researches such as Hawthorn studies were one of the pioneers in this topic. The main aim
or objective of the research was to study the effect of environment or surroundings of employees
and also to study the effect of different variables on their behaviors. Thus a concept of
organizational climate came into being. (K.Selvarajan, 2014)
Organization Climate has a rich history and implementations in both industrial and
organizational set ups. Kurt Lewin was one the first researcher who studies about this concept
and presented an argument that behavior is a product of an individual and the environment
surrounding him or her. Organizational climate studies took the stage in late 1970s and the focus
was to integrate the climate research into a broader spectrum and also studies on related concepts
of satisfaction and organizational structure.
Understanding the concept of climate became more important as the organizations grew and
more awareness spread regarding this concept. Previously organization climate was seen as a set
of objectives, structures, size, policies and organizational characteristics. Climate plays a great
role in developing and enforcing positivity in the employee’s behaviors, motivation levels,
commitment and loyalty etc. (Castro & Martins, 2010)
Organizational Climate is a set of important propositions in order to understand the employee
behavior in a particular organization. As mentioned before, many researches have been
conducted to study this phenomenon. Studies have been done to understand the role and
importance of organizational climate in shaping up the employee behaviors, the negatives and
the positives, the impacts and outcomes.
There are a lot of definitions for organizational climate, although a precise definition doesn’t
exist but scholars have determined certain elements or characteristics which may define
organizational climate:
 It is common and identified between the organizational members
 It is formed by the impressions which the organization gives to its members regarding the
work, values, processes and information flows. These are then adapted and shaped by the
employees through whom they communicate, develop policies, structures and processes.
 Climatic insights are depictions of environmental activities and circumstances rather than
assessments of them.
 It is a multi dimensional concept

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 It affects the behavior of the employees
Organization climate can be defines as set of perceptions, feeling and attitude which
organizational employees have about the significant factors of the company. These reflect the
established norms, value and belief systems of the company’s climate and culture which in turn
affects the employee’s behavior positively or negatively. (K.Selvarajan, 2014)
Literature Review
Organizational Climate
Organizational Climate is a mechanism for understanding the problems and challenges of
organizations. It is described as a set of perceptions which individuals have about different work
aspects in the organization. (Evans, 1996)
There is extensive research which provided the evidence of how essential is organizational
climate for a company to function up to its potential. Researchers regularly said that
organizational climate is a very important factor which directly impacts the organizational
performance of the employees.
(Fullan & Miles, 1992) (Fullan M. , 1991)
The Climate is defined as a model of perceptions about the firm, made by the group of
employees who learn these things along the way of doing job for that company and solving
problems. (Kouzes & Posner, 1987)
Organizational climate is a broad concept of different factors which make up an organization.
The climate or the culture maybe considered as the value system of the company. It’s determined
by values of the top management or leadership of the company. It sets up a system which trickles
down to the different levels of management and takes its root in the company mindset.
(Tierney) (Lenz, 1999)
A work environment which illustrates that what each employee is valued and makes an important
contribution to the organization by utilizing the talent to its potential. (Berry, 1999)
According to Band (1991) customer satisfaction also is a factor in organizational climate
development. It can be termed as a successful method that every employee knows and
understands. This then turns into the feeling of team work throughout the organization which
helps to transfer it to the customers and provide a better service. (Band, 1991)
Organization determines the value system and image of the organization. It is made up of factors
such as ethics, mission and goals of the organization, the hierarchy, policy, organizational
behaviors and workplace dynamics.
Peterson and White suggest that it is the deeply rooted guidelines of organizational behavior and
the shared values and beliefs and ideologies that employees have about the company and the
works. (Peterson & White, 1992)

6. It’s an environment in which people work. It can be positive or negative or conductive and
supportive or not supportive at all. This all depends on if this was all provided to the people to do
their jobs. There are eight factors which shape up the workplace. Which are; amount and
quality of job-related information, availability of tools and equipment, availability of materials
and supplies, amount of budgetary support, amount of help available from other people, time
available for doing the job, and physical features of the work environment. (Peters & O’Connor,
1980)
According to Blanchard and Bowles organizational climate is in the organization and consists of two
things; the value of employees and of customers. (K.Blanchard & Bowles, 1993)
Andrew Halpin and Don Croft (Halpin & Croft, 1963) constructed the climate description
questionnaire through a research which was conducted in a school. The purpose of the research
was to discuss organizational climate and the factors affecting it. As a result; they were able to
discover 6 types of organizational climate:
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1. Open Climate:
It is the climate in which people generally worked well with each other. They had
friendly relationship with one another and the heads of departments.
2. Autonomous Climate: where the employees have control over their objectives, the plan of
action, self governance and initiative. Generally the morale of such people tends to be
higher as they are independent in thinking thus problem solving becomes better.
3. Controlled Climate: in this environment, less independence is given to the individuals
and more control is implied. The individuals are goal oriented and mainly concerned
about accomplishment. The individuals are told what to do rather than using own
instincts because of more control implemented by the top management. Feelings for
others are not part of this type of climate.
4. Familiar Climate: In this, the climate is friendly and more social oriented i.e. social
connectivity and needs of the people are mainly considered. Main concern isn’t the
productivity of the people that’s why they do not work up to their full potential.
5. Paternal Climate: in this the employees are not motivated as the top management acts
paternally thus the behavior was insincere as well.
6. Closed Climate: this is climate where there is neither concern for high achievement nor
any social connectivity. As a result the employees did not work well together and the top
management was ineffective in its decisions and managing the people.
The Organizational Climate Index
A way for measuring organizational climate was developed by a researcher. He considered two
aspects in his work; both individual and groups in the work setting. He felt that there are some
factors which affect the organizational climate and developed an index to measure those factors.
The index is Organizational Climate Index which measured 6 aspects of climate, which are:

7. 1. Intellectual Climate: where the people of the organization supported intellectual and
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academic interests.
2. Achievement Standards: it’s an indicator of how much the climate of the organization
emphasize on high personal success.
3. Personal Dignity: an indicator to if the environment emphasized a sense of ethicality,
openness, integrity, sincerity and support for individual needs.
4. Organizational Effectiveness: this indicator shows the extent of the environment
enhanced by the skills and talents of the people to efficiently do their jobs.
5. Orderliness: which measures the conformity pressure to mold one’s self with defined
code of conduct, personal appearance and organizational image?
6. Impulse control: it indicates the limitation and control of the organization over the
employees and work climate.
Organizational climate can be measured by these factors of Organizational Climate Index.
When analyzed these can give signs of how and what is the organizational climate of the
company. (Gratto, 2001)
The Importance of Organizational Climate:
The working conditions and climates are changing rapidly and are far different from what they
were in the previous years. The reason for these rapid changes is because of the wide spread of
awareness, the increasing challenges which companies face now such as; technological changes,
changes in the structure and nature of companies, the challenges of employees’ demands and
needs management. (K.Selvarajan, 2014)
Motivation
Motivation is foundation of target oriented performance. Motivation is deeply rooted in the need
of maximizing achievement and minimizing failure or as explained by Maslow; the basic need of
social interactivity, physical needs, psychological need etc or it can be associated with less
visible reasons such as selflessness, self centeredness or ethics.
“Motivation is that in and around us, what brings us to behave like we do and do not.” (Nick)
“Motivation is the art of getting people to do what you want them to do because they want to do
it” (Dwight D. Eisenhower) (Jelencic, 2010)
“Motivation is comprised of factors both internal and external which stimulate desire and passion
in people to be interested and committed to their work in order to achieve the goals set.
Motivation is a product of both conscious and unconscious factors such as desire, incentives,
rewards, vale of goals, expectations etc. These factors then lead the person in behaving in a
certain way.” (Dictionary)
Types of Motivation:
There are two main types of motivation:

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Intrinsic Motivation:
Intrinsic motivation emerges from within the person. It leads to a particular behavior because the
person sees it as aligned to his or her value system and belief system which then fulfills a desire
which hold specific importance. Deep seeded needs have the maximum motivational power.
Examples may be; of Acceptance by the society of who we are, to be Honored, Independence
and autonomy, Power and authority to perform, Social interactivity, and good Social Status,
recognition etc
Extrinsic Motivation:
This kind of motivation deals which the motivation which is generated by external desires
fulfillment. Some examples may be: of Salary and benefits package, monetary rewards, bonuses
etc. (Central)
Motivation Theories:
Theory X and Theory Y:
According to this theory (McGregor, 2006) there are two types of managers or people. Theory X
sees an individual as a lazy person and procrastinator who must be pushed and forced to their
tasks. They must be monitored and controlled, threatened with bad consequences if they do not
perform their duties and achieve the goals set. According to McGregor, this is an average human
being who takes direction, avoids authority, and lacks ambition to perform.
Whereas on the other hand, there are people who come In Theory Y. these individuals do not
procrastinate neither are they pushed to perform but they do it by will and find satisfaction in it.
They do not see threat of punishment as a motivator for doing their jobs but they are self directed
and set their own goals and paths. As they set their own goals, they are automatically committed
to them and as a result they perform up to the standard required. The goal achievement is
reinforced by incentives associated with goal achievement.
Maslow’s Hierarchy of Needs:
In this theory (Maslow, 1987) Maslow has developed framework about human behavior and the
composition of needs which man wants. A need which is satisfied cannot be a source of
motivation but only those needs which are unsatisfied are a source of motivation.
Our needs are of different sorts thus a hierarchy comes into existence. There is a lower level, the
next level and then the higher level. Our needs travel through them i.e. as the lower needs are
met; they progress to next levels and reach the highest level and demand to be satisfied.
Maslow believed that there are five levels of needs which carry specific needs to be satisfied,
which are:

9. (Fenwick)
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Herzberg’s Theory of Motivation:
In this theory of motivation, the findings were that certain events lead to satisfaction and they are
not surprising and were very different from those which cause dissatisfaction. According to
Herzberg, there are two types of factors, in one, if some of them are absent then it may cause
dissatisfaction and these factors are related to job context. They exist in external environment of
the job and are called Hygiene factors.
The other type of factors is called motivators, these if are present in the context will motivate
individuals. (Herzberg, 1959)
(Training, 2013)
Social Need

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McClelland’s Theory:
It was developed by David McClelland, who defined different types of needs which are
motivating needs in individuals. Every need is present in individuals but there weights vary. The
three needs are (McClelland, 1987):
(WikiSpaces, Expectancy Theory, 2014)
Vroom’s Expectancy Theory
Expectancy theory explains behaviors of individuals are shaped by their expectations of the
result that their behavior will yield. Thus, behavior is directly related to the desirability of the
reward. Individuals may behave in certain way with regard to the expectations regarding the
reward and how it satisfies them and motivates them to achieve the goal.
Motivation is a product of effort put in by the individual, the effort required for best performance
to get the reward. These are relationships which determine the power of motivation. The strength
of the person’s preference for a reward will dictate the amount of effort he or she puts in for
achieving the goal. (Koontz & Weihrich, 2009)
(WikiSpaces, Need Theories, 2014)

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Adam’s Equity Theory:
It’s concerned with equalities and inequalities which employees perceive in their jobs. When an
individual feel a sense of inequality then they will make an effort to put it into balance by
reducing their input into the work as they perceive inequality in the output they are receiving.
Employees who feel positive inequality i.e. for e.g. being over paid then they increases their
input to balance the situation but those who are underpaid will do the opposite. These feelings of
inequality are driven by the individual perceptions. (Biswajeet, 2005)
Organizational Commitment
Organizational Climate influences the person’s decision to continue the job or not.
Organizational commitment is the power of an employee’s involvement in the organization and
if the employee identifies himself with the organization. It is seen, that those employees who
have been with the company for a long time tend to have a stronger commitment with the
organization than of those who have served the company on a shorter scale. The characteristics
of organizational commitment are:
 A strong hold of and acceptance of the organization’s objectives and principles
 A motivation to put forth good amount of effort on behalf of the company
 An aspiration to stay with the organization
Highly committed members of the organization can be seen as dedicated employees. They have a
sense of belongingness to the organization; they identify themselves with the organization and
give personal references whenever they talk about the company. These people are generally
satisfied with the work and the company. However those employees who do not see a
commitment with the organization will be dissatisfied with their jobs.
Organizational commitment is not only restricted to loyalty to the organization but also extends
to achievement of goals and organizational processes. Organizational commitment is an attitude
which is work oriented.
Organizational commitment is more stable than satisfaction because it is less volatile, and isn’t
affected by day to day activities. The commitment to the organization depends upon the person’s
own characteristics such as personality, values etc. it affects the job experience of many
individuals it can lead to satisfaction. (Hellreigel & Slocum, 2009)

12. Researchers have suggested that understanding a concept of organizational commitment has
propositions for the members of the organization and the organization itself. It also benefits the
society as it receives benefits from increasing employees’ organizational commitment as if they
are committed then they want change jobs quickly and thus the productive would increase on a
whole basis.
Researchers have defines organizational commitment in many ways. Buchanan (1974) defines
commitment with help of 3 factors:
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 Identification with the organization’s values and objectives
 Engagement or involvement
 Loyalty
Scholars say that a committed individual will show these characteristics:
 Acceptance and support of goals and values
 Organizational involvement in decision making and other matters
 A motivation to stay with the company and serve it
 A desire to go beyond the efforts required for goal achievement of the organization
There are three elements which are important for organizational commitment:
 A strong acceptance of organizational values, beliefs, standard and procedures
 Desire and willingly able to perform beyond requirement of the goal achievement
 Strongly wanting to stay with the organization. (Cortez, 2008)
Significance of the study:
There always has been a great interest in finding out the impacts of organizational climate on the
success of an organization and on behaviors of the employees working there. It is important
mainly because of the relationship of organizational phenomena such as job satisfaction. Job
performance, leadership, quality of work life balance, group dynamics etc. Recent work done on
job satisfaction highlights organizational climate as a key factor for increasing or decreasing
satisfaction. The main point being that if the organization environment is good, conductive and
supportive then it will much more desirable for the members to work in it and results in
satisfaction among the employees.
The objective of this study is to explore the effects of both positive/supportive and negative/strict
organizational climate on employee motivation and organizational commitment to conclude if
employee perception of the organizational climate influences the level of motivation and
commitment.

13. Organizations are facing more challenges than ever before. These challenges are not limited to
certain organizations or industries, but influence all organizations. Organizational climate
specifically is continuously challenged by changes impacting organizations today. The
motivation for this research is particularly to check of how the organizations foster a supportive
organizational climate and how much importance does it carries in perspective of the employees.
Hypothesis:
Organizational Climate and its relationship to various concepts require research and to tap into
the professional individuals mind set to see whether they see the relationship as positive or
negative. As already observed in the literature review considerable work has been done in this
field but continuous researches are needed to keep a check on the rapidly changing work
environment in the organizations. The following hypotheses have been constructed to conduct
the research paper. The hypotheses are alternative hypotheses and on basis of research tools they
will be analyzed further for the relationship being direct or not.
H1A: There is a direct relationship between Organizational Climate and level of motivation of
employees
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H2A: There is a direct relationship between Organizational Climate and Organization
Commitment of employees.
Variables:
The independent variable is; Organizational Climate and dependant variables are; Level of
Employee Motivation and Organization Commitment as displayed by employees.
Research Objectives
The objective of this study was to:
 To discover the relationship between organizational climate and employee motivation
and organizational commitment, whether it is positive or negative.
 To determine if employees’ perceptions of the organizational climate influence their
level of motivation and commitment.
 To help me understand the dimensions of organizational climate and its impact on a
better organizational commitment and employee motivation.
 To make this research available so that it can benefit all those who seek to maintain a
healthy organizational climate which supports the employees in decision making,
maintaining work life balance, building social relationships and professional
relationships, fostering employee engagement etc.

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Research Questions
The research questions which led me to take this topic up were:
 What is the nature of relationship between these three variables of organizational
commitment, employee motivation and organizational commitment?
 Does this relationship effects performance and satisfaction of the employees in the long
run?
 What are the main perceptions of the professionals regarding importance and application
of conductive supportive organizational climate?
 What elements do they deem necessary for constructing a well suited organizational
culture and what elements they want more work to be done by the management?
Research Design:
Methodology:
Data Collection Method:
As mentioned previously, Primary research was conducted with help of questionnaire developed
for this research paper along with short interviews with the business professionals who were
asked to fill in the information. (Questionnaire used is attached in the Appendix section)
Sources of Data
The source of Primary data are; Questionnaires and Interviews. Sources for secondary research
includes international journals, magazines and well acclaimed theories and researches published.
Such as, Society for Human Resources Management, Chartered Institute of Personnel and
Development (CIPD), The Motivation To Work by Herzberg,Personnel Today (online magazine)
etc
Sample Size
The sample was chosen from those professionals who had working experience of at least 1 year.
The sample size chosen by random sampling and was constructed at 50 professionals who are
currently employed and carrying the experience mentioned previously.
The target respondents will be particularly those working and employed at middle management
level and top management. The organizations would be multinational organizations working in
Pakistan specifically Karachi.
Statistical Tool
Statistical Analysis has been done by using Microsoft Excel worksheets for construction of
graphs, data bar charts, percentages based on frequency of data.

15. Research Findings
The following data has been generated with help of Excel and from the data gathered from
respondents through questionnaires.
Good Internal communication
Supportive Organizational culture
Availability of Professional
development opportunities
Performance based Evaluation
Performance based Promotion
Top Management’s Regard for
Employee’s growth
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Explanation:
1. What is your perception of a
good/healthy/conductive organizational climate?
1
The question asked from the respondents was to judge their perception of what elements are to
be included in a good organizational climate to make it more conductive and supportive of the
organizational member. For this purpose certain elements were given in options as can be seen
above along with another option given to respondents to add in their own views about any other
element they deem important in an organizational climate. It is quite visible that the respondents
termed Performance based Promotion to be the most important element for a good organizational
climate where as, availability of opportunities and a supportive climate are termed as important
as well. It can be easily seen that top management’s regard for employee’s growth is rather at a
lower importance than others which is rather surprising as if the employees are deeming
opportunities for growth an optimum element then why is the top management not seen as an
important tool in this development? Probably because the employees see their growth ladder to
be self made and less intrusion from the top management which is a sign for top management to
start involving the employees and make them see that they are concerned about their growth.
Another point highlighted by the respondents was the presence of Respect for every individual to
be present in every good climate of any organization.

16. Participation in Decision-Making
Autonomy to take Initiatives
Good Quality Relationship with
Colleagues, peers, subordinates
and supervisor
Supportive Organizational climate
Equitable Salary and Benefits
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5
4
3
2
1
0
2. Which of these is the cause of motivation and
commitment to the organization in an employee such
Explanation:
as you?
The second question was related to identify the major causes of motivation and commitment.
The participants were asked to rank the mentioned elements in order of preference on a scale of 5
(1: Most important cause 5: Least important cause). The elements selected were specifically to
identify their relationship with organizational climate. Although respondents gave very diverse
rankings but the average score lied in almost the same rank of importance and no element took
the top most priority. It can be observed from the graph about that almost all elements seemed to
be ranked in top places thus indicating that these all are relevant motivators and important
elements in maintaining organizational commitment. The top element was supportive
organizational climate, others were separate just by difference of decimals and were;
participation in decision making and autonomy to take decisions. These both are interlinked
because both include employee engagement in decision making. Other element which made it to
being highly ranked was Good quality relationship with colleagues, peers, subordinates and
supervisors. This indicates that employees favor good interpersonal relationships and is a source
of motivation and commitment. This can only be possible with the help of good organizational
climate, as if a climate which is doesn’t foster good communication and open door policy then
interpersonal relationships cannot be established. Lastly, equitable salary and benefits falls at a
rather neutral spot, ranked third in the overall ranking. This ranking proposed that all these
elements are important in creating motivation and commitment in the employees

17. 3. What is the significance of these elements in a
Performance management
Trust between coworkers
Equitable Rewards and
remuneration
Teamwork/ cohesiveness
Training and development
Image of the company
Organizational support
Organizational policies and HR
development policies
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8
7
6
5
4
3
2
1
0
Explanation:
good organizational climate?
1
Job satisfaction
Working Climate
Leadership
Communication
The third question asked was another ranking question specifically targeted at finding out the
significance of the mentioned elements on a scale of 1-12 where, 1: Highest significance and 12:
lowest significance. The top rated element is job satisfaction later performance management and
Work environment. Seeing that working climate in the top three most significant elements
highlights its importance in effective organizational building and management. The neutral
elements included image of the company, organizational support, training and development.
Approaching 8 on the scale which is going towards elements carrying lowest significance can be
seen easily as organizational policies and HR development policies, which is then again
contradictory of the responses as these are the organizational policies which shape up the climate
of any organization. However, the major emphasis lies on the employee participation in
developing and fostering the climate of any organization so this ranking can be justified in that
perspective.

18. Trust between coworkers
Performance management
Teamwork/ cohesiveness
Image of the company
Training and development
Organizational support
Equitable Rewards and
remuneration
Work environment
Organizational policies and HR
development policies
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4. Which of the mentioned elements are present in
Explanation:
your organizational climate?
Job satisfaction
Communication
Leadership
The next question inquires the respondents to give an insight about the elements present in the
climate of their organizations respectively. The top element which is visible in the graph is
working environment and coming behind it is image of the company. Keeping in mind that in the
previous question, the respondents ranked image of the company to be a rather neutral element in
their organizational climate meaning that it doesn’t carry much significance but they are well
aware that it is present in their organizations. Another element which can be seen as highly
present is team work and cohesion which is an element of supportive organizational climate as a
good and conductive climate fosters team work. The element which has a lesser presence
according to the respondents is; effective performance management, which is again an issue for
top management to consider. Seeing that trust and job satisfaction are present in almost all
companies, lets revert back to last question in which respondents ranked job satisfaction as the
top significant factor in good organizational climate. This is something for the policy and
structure makers of an organization to keep in mind while maintaining the climate of
organization.

19. Yes
No
It doesn't matter
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Explanation:
5. Are you satisfied with the working environment/
organizational climate established in your
organization?
93%
3%
4%
This question was directed towards finding out whether the respondents were satisfied with their
job and other work related elements. As it can be seen in the graphical representation, 92% of the
respondents were satisfied with their jobs however 3% of them were not satisfied and 4%
believed it did not matter. Come to think of the motivation theories mentioned earlier, with
reference to Two Factor Theory, whereby there are motivators and hygiene factors and opposite
of satisfaction is not dissatisfaction. It can be deduced that the 3% who perceived not to be
satisfied with their jobs because some of the elements missing from motivator factors in the
organizational climate thus having an effect on their motivation and commitment.
Looking closely at the data provided by these particular 3% respondents, I was able to identify
the elements they thought were missing in their organization’s climate which reflected on both
their motivation and commitment. The elements identifiably missing were common in these 3%
personnel. These included; job satisfaction, leadership, organizational support and
communication to be absent in the climate. Referring to the two factor theory again, these factors
are hygiene factors, which are to be ensured by the management to ensure that an employee does
not become dissatisfied. They do not lead to higher levels of motivation but without them there is
dissatisfaction. Job satisfaction however is a motivator and its absence can hurt the employee’s
sense of commitment to the organization and overall his or her motivation to work harder and
progress.

20. The rest of 4% believe it doesn’t matter to have a supportive organizational climate or not
probably because they perceive organizational climate supportiveness as a hygiene factor rather
than a motivator and believe that without it they can succeed or move up the ladder in their
career.
organizational climate boost an employee’s commitment to the
Yes definitely
No, it’s not necessary
Depends upon the individual
19 | P a g e
0%
Explanation:
6. According to your perspective, does a good conductive
organization and motivation level?
77%
23%
The next question was aimed at knowing the perceptions of the regarding the actual topic of
research which is to judge the relationship between the organizational climate and motivation
and commitment. The data gathered suggests that 77% of the respondents see direct link between
the three variables mentioned above. Whereas 23% believe it varies according to each person.
Different people have different personality and a way of seeing things in life. For example, an
area where sales are hard to gain and require hard work but carry a lot of potential maybe seen as
a challenge, a source of motivation for one sales representative but for the other it can be seen as
a dreadful job and maybe a source of demonization. It was fascinating to see that no one
perceives that organizational climate doesn’t boost employee motivation and commitment, which
then again tells that they perceive organizational climate to be an important factor in motivation
and commitment. In the next question I’ve also inquired about the possible reasons for the
responses which will shed some more light on this perception.

21. 7. if yes, mention a few points supporting your answer. If no, mention a few
points supporting your answer.
According to majority of respondents who marked yes on the previous option, gave very detailed
look into their perspective. According to the respondents, Organizational climate carries great
significance because it includes very important elements which are necessary for every
successful and progressive organization these include management or leadership styles,
participation in decision making, provision of challenging jobs to employees, reduction of
boredom and frustration, provision of benefits, personnel policies, and provision of good
working conditions of the employees. In a good organizational climate People would like to
come to the place every day committed and with high energy level less absenteeism increased
productivity. It definitely has an important role to play because in such environment individual’s
personal and professional skills enhance.
Good Organizational Climate is a key enabler where one can speak out his mind and make an
effort to bring in positive change with the consideration that the change for the sake of
improvement would be embraced by colleagues, top management and colleagues.
A conductive organizational climate will definitely be a potential factor for an employee by
which the employee will perform for the betterment of the company and foremost his company.
If the working environment is satisfactory, training and development is there and the supervisors
are supportive and motivating and encouraging you ten naturally employee's commitment to
organization will increase.
Continuous appreciation and organizations support definitely boost the motivation level as we
know monetary remunerations are not the only factor of motivations there are other intangible
gains that help an employee to stay loyal to its organization and keep doing better.
Organizational climate is important because without the back organizational support employee
can never feel comfortable to work then it is very difficult for an individual to be fully
committed with the organization hence low motivation and poor performance.
According to the respondents, level of employee motivation is directly proportional to his or her
commitment to the organization, therefore. It is not wrong to say that there is a positive co-relation
exists among all these three elements are. If the climate of the organization is not good,
20 | P a g e
it will de-motivate the employee no matter how good he/she is. It will impact his/her
performance in an adverse manner.
Although salary and benefits matter, but to work effectively, environment, support, team, etc. are
major factors for smooth and satisfactory performance.
Its importance is mainly because if the organization’s climate isn’t supportive of employee’s
actions then he or she would not be creative and will not come up with new ideas to manage any
problem or propose changes in systems. If an organization provides a healthy working climate

22. and maintains it with ample autonomy and communication flow then employee’s motivation
level will increase and he'll be more committed to his work and organization.
However one of the respondents who were in the 25% suggested that an individual determines
his or her own career path irrespective of the acceptability work environment offers.
It’s very important; as if the
climate isn’t open, innovative and
conductive no one will be pushed
to perform to their full potential.
It’s partly important; as if the
employee is working hard then
climate would not be an obstacle
in his or her motivation.
It’s not important, as salary
benefits package is good then non
conductive climate can be ignored
21 | P a g e
8. How important is organizational climate in improving or
reducing the employee’s motivation to come to work every
Explanation:
85%
15%
0%
day?
This question is targeted towards finding out the significance of organizational climate in
employees’ perspective. As it was already pondered upon in the previous question very deeply
by the respondents, it will not be covered in much detail over here.
Here the respondents were given detailed options to fully suit their answers and 85% of the
respondents termed it as very important and believed that potential can be fully utilized even it is
backed by proper climate, which corresponds to the responses gathered earlier of the
respondents.
A rather smaller percentage opted for the option which signifies that it’s important but not that
much that it influences work a lot but it depends upon the employee and his self drive to excel.
One of the respondents explained the reason behind choosing this option as; although

23. organizational climate is important but idealistic type of organization are very rare so people tend
to comply with existing one and each for idealistic organization so this doesn’t reduce motivation
to work every day.
None of the respondents opted for the last option which terms organizational climate to be of no
importance. This establishes that it does carry some weight and just cannot be ignored even if
monetary benefits are being provided in abundance.
It will not have any impact at all
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9. If you work at a place where you receive ample praise for
your work and supportive organizational climate for your
initiatives, would that effect your motivation to work harder
Explanation:
and commitment to the organization?
0%
100%
Yes it would
No it will not
This is a situational question, which was asked to the respondents. It is human psychology to
respond better to positive reinforcement and that is the sole reason as to why all the respondents
marked in the favor of only one option that supportive organizational climate, communication,
appreciation would help motivate them and also would promote organization citizenship
behavior amongst them.

24. Will not have any impact
My motivation and commitment
would decline to an extent of
quitting
23 | P a g e
10. In a situation, where you are being provided great salary
package and work according to your preference but the
climate is neither conductive nor supportive of your actions
and initiatives. How would that impact your motivation and
31%
4%
2%
Explanation:
commitment?
63%
Negetively
Positively
Another situational type of question was asked to the respondents. A big chunk of the
respondents 63% believed that it would have a negative impact on the motivation and
commitment. The second highest preference was given to another option which may explain the
extreme conditions in which employees are so de-motivated by the climate of the organization
and its impacts that quitting seems like an easy option.
This immensely illustrates the importance of organizational climate and its effects on motivation
and commitment of any employee. Even though salary and benefits are being provided and work
is being provided as well but just because the climate isn’t nurturing and supportive, it’s having
bad impacts on the employees’ drive to stay with the company.
Apart from that, 4% of the respondents believed that it will not have any impact. These
respondents are specifically the ones who responded earlier in response of question 8 that
supportive climate is partly important for over all motivation and commitment.

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Analysis:
The analysis or the results that were discovered by the administration of this research found a
direct relationship between organizational climate and motivation and at the same point found
direct relationship between organizational climate and organizational commitment. Thus it
would be relevant to say that both hypotheses mentioned previously were proved to be correct.
Organizational climate does impact both motivation and commitment. However the degree to
which the positivity is present in the relationship between these variables can be argued.
Through the analysis and studies, it can be said that a strong positive/ direct relationship is
present between climate and motivation. If the climate is positive, conductive and nurturing then
it will have a positive impact on motivation level of the employees and negative climate bearing
elements will have a deteriorating effect on both motivation and commitment. Commitment is
more oriented to towards the number of years that a particular employee has been with the
company. Apart from that it can be seen from the responses of the individuals that they do see a
positive relationship between commitment and climate.
In the short interviews I was able to ask some of the respondents about what enhances the
organizational commitment in employees? The elements highlighted by them included loyalty
due to long tenure, job satisfaction, working climate, top management support and ample
opportunities to grow. Although it is emphasized that commitment comes with longer tenure
however with the data acquired I observed that those who just had one to two years of experience
were able to comment that they are committed to their respective organizations because they are
satisfied with the elements which make up the climate and over all provide a satisfied and good
professional environment.
These results are consistent with the previous work done on these topics and determining their
relationships. Research suggests that there are certain climate elements which may impact the
employee’s motivation and in longer run may impact commitment. According to one research
(James, A, M.W, & A.P, 1977) there is a relationship between psychological climate and
components of motivation model. The research concluded that psychological climate was
significantly related to various aspects of motivation.
As highlighted previously in the report, one of the research questions was to see if this
relationship effects performance and satisfaction of the employees in the long run. It is evident
that motivation impacts performance and causes it to escalate and results in better performance
and that performance when supported by the organizational climate would then effect the
perception that the employee carries for his or her organization and in the long run affects
organizational commitment.

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Conclusion and Recommendations:
The findings from this study suggest that if the climate is open, supportive and is concerned
about the welfare of the employees coupled with a good structure, performance management will
definitely have a positive and direct impact on the motivation and commitment of the employees.
A supportive organizational climate can facilitate the company to boost its productivity and also
motivate the employees and foster commitment amongst the employees. It’s the management’s
task to make all arrangement to maintain positivity of the environment to foster job satisfaction
and create a sense of belongingness. There are many ways in which this can be made sure by the
management. Some actions which may help the management to create such conductive
environment:
 Organizational vision and mission
 Clarity of goals and objectives
 Input from employees in decision making and important changes
 Autonomy and initiative
 Personal growth and top management support
These all factors well help the organization to maintain a positive working environment and
increase the motivational level of the employees and the sense of belongingness.
Establishment of trust and open door policy will help the employees to open up, take initiatives
as they’ll know that the top management will be supportive of the right actions. Management
should make sure by communication and frequent feedback throughout the organization; this
would help in motivating the employees and keeping the morale high. Another benefit would be
that employees will be able to communicate problems and solve them with a combine effort.
This will not only help the smooth operations of the company but also will help the employees in
personal development and will help them in identifying their strengths and weaknesses and
improve the performance.
Establishing an open door policy is one of the main tools for positive organizational climate.
This facilitates communication and interpersonal relationship building between the employees.
Communication and freedom of expression can be encouraged. This can give birth to more
creativity, better problem solving, new ideas etc.
Personal development Plans should be constructed, so that the employees may see a clear career
ladder to their personal success. This will not only help the employees but also for the company
to identify high potential employees for promotions and succession planning.

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Limitations:
• There was some discrepancy and inconsistency in responses as even those
respondents who marked organizational climate to be a secondary factor in
motivation and commitment also chose the options which signified that it is an
integral part later in the questionnaire. For e.g. a respondent who gave an opinion
about climate being partly important also said that if he or she receives a positive
climate to work in, it will have a positive impact on the levels of motivation and
commitment.
• Another limitation can be that organizational climate is unique to every organization
and the respondents in this sample interpreted the items differently rather than
generally.
• The limited time was a pressurizing factor and probably a limitation for the research.
• As the target audience required for the study needed to be professionals who are
working in an organization, it was very difficult to gather data from them as most of
them delayed because of their busy schedules.

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Appendix:
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30. Questionnaire used: Effects of Organizational Climate on Employee Motivation
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and Organizational commitment in Pakistan
Note: Please fill in all the fields as required. All the information will be used for educational purposes only.
Name (optional): Gender:
Company: Position in the Company (optional):
Total Professional Experience (in years):
1. What is your perception of a good/healthy/conductive organizational climate? (Mark the desired
answers, you may choose multiple answers)
□ Good Internal communication
□ Supportive Organizational culture
□ Availability of Professional development opportunities
□ Performance based Evaluation
□ Performance based Promotion
□ Top Management’s Regard for Employee’s growth
□ Other (please specify)
_____________________________________________________
2. Which of these is the cause of motivation and commitment to the organization in an employee such
as you? Rank the following in order of preference (1: Most important cause 5: Least important cause)
Participation in Decision-Making
Autonomy to take Initiatives
Good Quality Relationship with Colleagues, peers, subordinates and supervisor
Equitable Salary and Benefits
Supportive Organizational climate
3. What is the significance of these elements in a good organizational climate? Rank the following in
order of preference on the scale of 1-10 (1: Highest significance 12: lowest significance)
Trust between coworkers
Job satisfaction
Communication
Performance management
Teamwork/ cohesiveness
Image of the company
Training and development
Leadership
Organizational support
Equitable Rewards and remuneration
Work environment
Organizational policies and HR development policies
4. Which of the below mentioned elements are present in your organizational climate? (Mark the
options which are present)
Trust
Job satisfaction
Communication
Performance management
Teamwork/ cohesiveness
Image of the company
Training and development
Leadership
Organizational support
Rewards and remuneration
Work environment
Organizational policies and HR development policies

31. 30 | P a g e
Others (please specify):
5. Are you satisfied with the working environment/ organizational climate established in your
organization?
• Yes
• No
• It doesn’t matter
6. According to your perspective, does a good conductive organizational climate boost an employee’s
commitment to the organization and motivation level?
• Yes definitely
• No, it’s not necessary
• Depends upon the individual
7. If yes, mention a few points supporting your answer. If no, mention a few points supporting your
answer.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
8. How important is organizational climate in improving or reducing the employee’s motivation to come
to work every day?
• It’s very important; as if the climate isn’t open, innovative and conductive no one will be
pushed to perform to their full potential.
• It’s partly important; as if the employee is working hard then climate would not be an
obstacle in his or her motivation.
• It’s not important, as salary benefits package is good then non conductive climate can be
ignored
• Other:______________________________________________________________________
__________________________________________________________________________
9. If you work at a place where you receive ample praise for your work and supportive organizational
climate for your initiatives, would that effect your motivation to work harder and commitment to the
organization?
• Yes it would
• No it will not
• It will not have any impact at all
10. In a situation, where you are being provided great salary package and work according to your
preference but the climate is neither conductive nor supportive of your actions and initiatives. How
would that impact your motivation and commitment?
• Negatively
• Positively
• Will not have any impact
• My motivation and commitment would decline to an extent of quitting

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Additional Statistics:
Percentage of Male and Female Participation
59%
41%
Male
Female
Participants' Experience
78%
3%
15%
4%
1-5 years
6-11 years
12-20 years
21 years+