Browsing by Subject "Organizational climate"

Now showing 1 - 2 of 2
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    Employee Perceptions and Financial Performance
    (2011-07) De Georgeo, Michael R.
    A number of studies have found evidence supporting a link between the organizational environment and financial performance. However, several studies have found a mixed support or no support for this link. This study builds on these findings to address the question: Is there a relationship between organizational environment factors and financial performance? Organizational environment data for this study came from employees of a sales and service division of a global manufacturer located in the Midwest of the U.S. A sample of 1,518 respondents, from a total population of 1,615 employees organized in 100 teams, completed a 68-item survey instrument for a response rate of 94%. An exploratory factor analysis generated a model with 11 subscales using 52 items from the original instrument. The subscales are (1) operational effectiveness, (2) immediate manager/supervisor, (3) senior management, (4) mission, (5) valuing employees, (6) training, (7) involvement, (8) corporate social responsibility, (9) satisfaction, (10) teamwork, and (11) inclusion. Cronbach's alpha coefficients for all subscales on the survey were acceptable, ranging from .85 to .90. Team-level factor scores, the predictor variables, were generated by computing factor scores for individual respondents, followed by computing a mean of each of the factor scores from members of each team. This approach produced 11 factor scores for each team. Contribution margin ratio, a measure of profitability, was the outcome variable. This variable was calculated at the team level and is the quotient created when dividing operating income by revenue. This study used contribution margin ratios from five financial periods: four consecutive fiscal quarters and the fiscal year overall. This study found that team-level employee perceptions of organizational environment factors had no to weak relationships between various organizational environment factors and various measures of financial performance. The regression analyses, subsequently, found that organizational environment factors were able to explain only single-digit percentages of variation in financial performance. Implications of these findings with regard to organizational performance are discussed.
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    An Investigation of the Predictors and Moderators of Climate Strength
    (2015-08) D'Mello, Susan
    Organizational climate is a useful set of variables used to describe and better understand work environments that has been shown to relate to various individual and group outcomes. While most of this research has focused on the means of individual climate perceptions aggregated to higher levels, the degree of agreement or "strength"� has received markedly less attention. The climate strength hypothesis states that climate strength moderates the relationship between climate perceptions and outcomes, where a stronger link is found for stronger climates (Denison, 1984; Schneider, Ehrhart, & Macey, 2013). Though this hypothesis has been empirically tested by several researchers, sample and group sizes were limited, and they were smaller scale examinations. This study used a large multi-level survey to look at climate strength from a more macro perspective involving individuals nested within large subagencies, nested within larger agencies comprising the U.S. federal government sector. First, demographic variables including gender, age, organization size, tenure, and minority status were examined as possible antecedents of climate strength, where members of the same groups (e.g., ethnic minorities, females) were expected to have greater agreement regarding their climates. Second, links between climate strength, climate level, and individual-level satisfaction were examined, including a test of the climate strength hypothesis. Results demonstrated that larger organizations had stronger climates up to a certain threshold, the youngest and newest employees were the only groups to have stronger climates than the overall group, and groups of similar gender did not display greater climate strength. In terms of links to satisfaction, relationships depended on the type of facet-specific climate strength and level. Mixed support was found for the climate strength hypothesis, such that greater strength generally only mattered when climate level was low. Implications of these results on future climate research and change interventions are discussed.