Final (New) 23.05.05

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CHAPTER 1
INTRODUCTION
1.1 COMPANY PROFILE
CIBI International was established in the year 1988 in Perundurai, as

a Fashion house for the manufacture & export of Textile garments. Today it is a
fully integrated unit with machines to match global standards.
The company is located in Perundurai which is about 20 kms from

Erode railway station and about 80 kms from the Coimbatore airport. The factory
area covers about 10,000 sq.ft and it has a processing capacity of 10,000 ps/day.
The present project cost is Rs.75 Crores. It has an yearly turnover of about
Rs.120Crs.
To produce quality goods on time, a good production facility capable

of taking up any challenge is needed. In this regard, CIBI International possesses
a good infrastructure that has the ability and potential to give quality products.
All the machines are the latest available in the market, and whenever
required, the company has never shied away from purchasing the most modern
equipment. All their divisions are equipped with the latest equipment to maintain
the quality and timeliness of the output.
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The manufacturing process has been vertically integrated to facilitate

all the processes involved in garment manufacture under one roof. This enables
the company to reduce the time spent in completing the order.
The company started with the sole export of knitted garments to USA
and later extended its reach to Europe, Australia, New Zealand and Canada.
The company primarily exports Knitwears and woven wears.

Knitwears include T-shirts, Polo’s, Pyjamas etc., Woven wears comprise of
Bermudas, Shirts, Work wears etc. The export capability of the company is ably
supported by its progressive attitude that has made it posible to have a vertical
set-up of its own Spinning Mill with over 25000 spindles, Knitting Factories,
Processing Division and Garment Manufacturing Division.
The plant has the capability to meet any level of demand from their
buyers thus creating a high degree of credibility to the company in the
international market.
With the in-house production capacity of over 10000 pieces per day,
the company has been on top of the garments export market consistently.
Besides this, the company’s garment production is supplemented by various
companies which can turn out around 15000 pieces per day. It may be
worthwhile to note here that all these products are subjected to thorough
checking by the company’s Quality Assurance Department Personnel.
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CHART 1.1.1 ORGANISATION STRUCTURE
MANAGING
DIRECTOR
G.M.
G.M. G.M.
(FINANCE)
(PRODUCTION) (QUALITY CONTROL)
MANAGER MANAGER MANAGER MANAGER

(ADMIN.) (ACCOUNTS) (PRODUCTION) (Q.C.)
PERSONNEL ACCOUNTS Q.C.

SUPERVISOR
OFFICER OFFICER INSPECTOR
LINE
PERSONNEL LINE
CLERK
ASSISTANTS INSPECTOR
SUPERVISOR
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CHART 1.1.2 PRODUCTION CHART
Merchandising
Pattern Making
Cutting
Tailoring
Checking
Trimming
Ironing
Packing
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1.2 ABOUT THE STUDY
1.2.1 CONCEPT OF ORGANISATION CLIMATE
Climate, in natural sense, is referred to as the average course of condition

of the weather at a place over a period of year as exhibited by temperature, wind
velocity, and precipitation. However, it is quite difficult to define organisation
climate incorporating the characteristics of natural climate. This is so because
the most frustrating feature of an attempt to deal with situational variables in a
model of a management performance has enormous complexity of the
environment itself. It makes the definition and measurement of situational
variables very difficult. One way to conceptualize the organisation climate is to
consider its potential properties.
Definition
Forehand and Glimmer feel that climate consists of a set of characteristics

that describe an organisation, distinguish it from other organisations, and are
relatively enduring over time, and influence the behaviour of people in it.
Based on these characteristics, Campbell et al define organisation climate

as:
“A set of attributes specific to a particular organisation that may be

induced from the way that organisation deals with its members and its
environment. For the individual members within the organisation, climate takes
the form of a set of attitudes and expectancies which describe the organisation in
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terms of both static characteristics (such as degree of autonomy) and behaviour

outcome and outcome-outcome contingencies”.
When organisation climate is defined in this way, many kinds of

organisational factors are relevant contributors to it. The crucial elements are the
individual’s perceptions of the relevant stimuli, constraints, and reinforcement
contingencies that govern human behaviour. Thus, the perception of people
regarding the functioning of these factors is important.
1.2.2 FACTORS IN ORGANISATION CLIMATE
Researchers in organisation climate have used data relating to

individual perception of organisational properties in identifying organisation
climate. Even in this context, there is a great amount of diversity. For example
Litwin and Stringer have included six factors, which affect organisation climate.
These are:
 Organisational structure – perception of the extent of organisational

constraints, rules, regulations;
 Individual responsibility – feelings of autonomy of being one’s own boss;
 Rewards – feelings related to being confident of adequate and appropriate
rewards;
 Risk and risk-taking-perception – the degree of challenge and risk in the
work situation;
 Warmth and Support – feelings of general good fellowship and helpfulness
prevailing in the work settings, and
 Tolerance and conflict – degree of confidence that the climate can tolerate
differing opinions.
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A broader and more systematic study of climate dimensions described

by Schneider and Bartlett includes six items that should be included in
determining organisation climate. These are managerial support, managerial
structure, concern for new employees, inter-agency conflict, agent dependence,
and general satisfaction.
Taguiri has identified five factors in organisation climate on the basis of

information provided by managers. They are
 Practices relating to providing a sense of direction or purpose to their jobs –

setting of objectives, planning and feedback;
 Opportunities for exercising individual initiative;
 Working with a superior who is highly competitive and competent;
 Working with co-operative and pleasant people; and
 Being with a profit-minded and sales – oriented company.
The results of these studies show that it is very difficult to generalize

the basic contents of organisation climate based on these studies. Other studies
in this respect do not elicit different result and present the vastly different
orientations or sets. However, some broad generalization can be drawn and it
can be concluded that four basic factors are somewhat common to the findings of
most studies. They are individual autonomy, the degree of structure imposed
upon the people, reward orientation, and consideration, warmth and support.
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1.2.3 IMPACT OF ORGANISATION CLIMATE
Organisation climate has a major influence on human performance

through its impact on individual motivation and job satisfaction. It does this by
creating certain kinds of expectancies about what consequences will follow from
different actions. Individuals in the organisation have certain expectations which
depend upon their perception as to how the organisation climate suits to the
satisfaction of their needs. Thus, organisation climate provides type of work
environment in which individual feels satisfied or dissatisfied. Since satisfaction
of individual goes a long way in determining his efficiency, organisation climate
can be said to be directly related with this performance in the organisation.
There are four mechanisms by which organisation climate affects performance,
satisfaction, and attitudes of people in the organisation.
 Organisational variables can operate as constraints system in both a positive

and negative sense by providing knowledge of what kind of behaviour are
rewarded, punished or ignored. The organisation can influence behaviours. This
assignment of different values to behavioural outcomes would then influence the
behaviour of these people most interested in those specific values.
 Organisational variables may affect behaviour through evaluation of the self

and others. There are both physiological and psychological variables associated
with evaluation process.
 Organisational factors work as stimuli. They influence an individual’s arousal

level, which is motivational variable directing behaviour. The level of arousal will
directly affect the level of activation and high performance.
 Organisational variables influence behaviour. They influence the individual to

form a perception of the organisation. This perception in turn influences
behaviour.
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1.2.4 DEVELOPING A SOUND ORGANISATION CLIMATE
A sound organisation climate is a long-term proposition. The climate of

each organisation is set through an organisational behaviour system. However,
what should be an organisational behaviour model for a given organisation is not
a universal phenomenon. Organisation behaviour philosophy derived from both
fact and value premises represent the view of the desirability of certain goals.
Thus, organisation climate should represent the philosophy and goals of those
who join together to create the organisation, meaning that the type of climate that
an organisation seeks is contingent upon the type of people it has, the type of
technology, level of education and expectations of people in it.
The organisation climate is contingent on the assumptions of the

nature of people in general. In dealing with people, the total mass concept
should be taken which is essentially a combination of three different concepts
about the nature of human beings – economic, social and self-fulfilling. Such a
classification is different from an earlier classification of men into three categories
that derives from the fact that each class of men has different set of thinking,
motivation, and hence requires different organisation climate. The economic
man is basically motivated by money and long-range economic security, and
hence the reliance on economic factors to attract, to keep, and to motivate them.
For social man, positive social relations and interactions are a must within his
work environment. A social man seeks an affinity with fellow employees. The self
fulfilling man seeks achievement, accomplishment and meaning in what he does.
The organisation climate with premium on certain degree of
freedom is appropriate for him. Thus, each type of man requires a particular
climate. In order to build up a sound organisation climate, managers must
understand their people in the organisation. The importance must be given to
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what motivates job performance in general and builds an overall climate

conducive to motivation, a keen insight into the individual in particular, and
tailoring a personal approach to leadership and job design to which the man will
respond with commitment. The individual differences suggest that there cannot
be any all-purpose organisation climate. Though there are variations in
practices, following prescriptions can be taken as features of a sound
organisation climate.
 Absence of political maneuvering for organisational positions and other

personal gains;
 Linking rewards with performance rather than linking with other
considerations such as blood relationship, friendship, and social background;
 High standards of excellence in every area of operation and evaluation;
 Encouragement for participation and group decision and its implementation;
 Encouragement for innovation and freedom to act upon ideas;
 High value assigned to interpersonal amity and tolerance of individual
differences;
 High standards of moral integrity in dealing with both internal and external
matters.
These prescriptions can be achieved on a long-term basis and more by

practice and not by prescriptions alone.
1.3 REVIEW OF LITERATURE

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A study on organisation climate was done by KIWI HOST, New

Zealand’s largest provider of customer management programmes. From their
research they developed a new system namely ‘Needs Analysis System’ to
develop a better climate.
Such a study was also carried out by Graphite Technologies which

makes use of an employee survey tool which works from a validated model for
understanding and improving organisation climate. This employee survey tool
measures organisation climate under three distinct criteria – Morale, Motivation,
and Punishment/Reward.
Organisation climate is studied in CIBI International for the first time.

This study is aimed at finding out the factors contributing to the organisation
climate and the level of satisfaction of the climate. This study also aims at finding
out the relationship between the demographic factors and the factors contributing
to the organisation climate.
CHAPTER 2
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OBJECTIVES, SCOPE AND LIMITATIONS OF THE STUDY
2.1 OBJECTIVES OF THE STUDY
 To study the overall organisation climate of CIBI International, Perundurai.
 To study the factors influencing the organisation climate of CIBI International,

Perundurai.
 To study the significance of the factors influencing the organisation climate of

CIBI International, Perundurai
 To rank the factors influencing the organisation climate of CIBI International,

Perundurai.
 To study the level of satisfaction of the factors influencing the organisation

climate of CIBI International, Perundurai.
 To study the relationship between the demographic factors and the level of
satisfaction of overall organisation climate and the factors influencing it.
 To suggest some measures to improve the organisation climate of CIBI

International, Perundurai.
2.2 SCOPE OF THE STUDY
The study has been under taken :-

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 To assess the real opinion and mindset of employees and

aids to meet out their expectations in future which in turn will increase the
volume and quality of output?
 To understand the employee psychology on organisation

climate so that the organisation can take appropriate measures.
 To throw light on the effectiveness of the organisation

climate provided to the employees, so that it can create the root for further
improvement.
2.3 LIMITATIONS OF THE STUDY
 The study on organisation climate is very wide and vast, so all the facts and
features regarding the study could not be analyzed and taken into
account.
 The sample of respondents belongs to a single organisation i.e. CIBI

International. Therefore, the result of the study cannot be generalized to
other organisations.
 The attitude of the workers change from time to time. Hence, the result
of the project may not be applicable in the long run.
 It is difficult to measure the attitude of the workers exactly. Therefore the

result of the study cannot be considered precise.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 AREA OF THE STUDY
CIBI International is a textile mill, which has been selected to study

the factors influencing the organisation climate and to determine the level of
satisfaction of the employees with the organisation climate and the factors
influencing it.
3.2 RESEARCH DESIGN
The study adopts descriptive research method. The major purpose of

descriptive research is description of the state of affairs as it exists at present.
The methods of research utilized in descriptive research are survey methods.
The facts and information collected are analysed to make a critical evaluation of
the material.
3.3 SAMPLING DESIGN
i. Population
The total population of the study is about 570 employees of CIBI

international, Perundurai.
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ii. Sampling technique & Sample Size
Out of the total population of 570 employees a sample of 200

respondents are selected for the study. The stratified random sampling method is
used for the study. The strata division and the sample were calculated as follows:
Strata Population Sample

Pattern Making & Cutting 50 18
Stitching 210 74
Checking 135 47
Ironing & Packing 175 61
Total 570 200
iii. Sample unit
Sample unit goes ahead with “who is to be surveyed”. Here each

individual employee is the sampling unit.
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3.4 SOURCES OF DATA
The sources are both primary and secondary sources. Primary data
were collected by means of administered questionnaire. The questionnaire
consists of particulars like Relationship with the management and peer
employees, safety and welfare measures, work environment, job satisfaction and
other organisation climate factors.
The secondary sources of information regarding details of

organisation climate were gathered from various books and websites.
3.5 DATA COLLECTION METHOD
Fieldwork is actual data collection operation. Data are collected

through administered questionnaire. The questions are of closed ended type with
multiple choices. The respondents were asked to reveal their opinion regarding
the factors influencing the organisation climate and the satisfaction level of
organisation climate in the company. The questionnaire includes scaling
techniques like rating and ranking scales.
SCALING TECHNIQUE
i. Rating Scale
The most commonly used method for study on effectiveness is rating

scale. Under it, a printed form, one for each person is to be rated. The traits are
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analysed and evaluated on a continuous scale. A ready comparison of scores

among the employees is possible. When ratings are objectively given, they can
provide useful feedback.
ii. Ranking Scale
Rank-order scaling technique has been used to rank the factors of

organisation climate. It helps to make direct comparisons among the factors of
organisation climate.
3.6 TOOLS OF THE STUDY
The statistical tools used for the analysis are:
 Simple percentage calculation

 Simple ranking method
 Chi-square analysis
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1 ANALYSIS OF DATA

Table 4.1.2 SOCIO-DEMOGRAPHIC CHARACTERISTICS
OF THE RESPONDENTS
Socio – Demographic No. of Respondents
S.No. Percentage
Characteristics
1. Age
Below 25 Yrs 87 43.5
26 to 30 yrs 61 30.5
Above 30 yrs 52 26.0
2 Marital Status
Married 99 49.5
Single 101 50.5
3 Gender
Male 92 46.0
Female 108 54.0
4 Educational Qualification
No formal qualification 49 24.5
Primary Level 52 26.0
High School Level 57 28.5
College level 42 21.0
5 Work Experience
Below 1 year 54 27.0
1 – 2 years 53 26.5
2 – 3 years 57 28.5
Above 3 years 36 18.0
6 Monthly Income
Below Rs. 1000 35 17.5
Rs.1001-Rs.1500 64 32.0
Rs.1500-Rs.2000 67 33.5
Above Rs.2000 34 17.0
7 No. of Dependants
Upto 3 members 63 31.5
4 members 60 30.0
Above 4 members 77 38.5
Source : Primary Data
INFERENCE
The socio-demographic characteristics of the respondents are self
explanatory from the table.
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TABLE NO. 4.1.2
OPINION ABOUT THE ORGANISATION CLIMATE FACTORS
S. Significant Insignificant
Parameter Number of % Number of %
No.
Respondents Respondents
1 Relationship with the management 116 58.0 84 42.0
2 Relationship with peers 104 52.0 96 48.0
3 Safety measures 109 54.5 91 45.5
4 Welfare measures 107 53.5 93 46.5
5 Work environment 102 51.0 98 49.0
6 Job satisfaction 96 48.0 104 52.0
7 Holidays 76 38.0 124 62.0
8 Pay 159 79.5 41 20.5
9 Bonus 125 62.5 75 37.5
10 Punctuality and disciplinary rules 96 48.0 104 52.0
11 Communication 89 44.5 111 55.5
12 Organisation structure 96 48.0 104 52.0
13 Individual responsibilities 75 37.5 125 62.5
14 Warmth & support 128 64.0 72 36.0
INFERENCE
It is found from the above table that:
 58.0% of the respondents feel that the Relationship with the

management is a significant factor.
 52.0% of the respondents feel that the relationship with peers is

a significant factor.
 54.5% of the respondents feel that the safety measure is a

significant factor.
 53.5% of the respondents feel that the welfare measure is a

significant factor.
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 51.0% of the respondents feel that the work environment is a

significant factor.
 52.0% of the respondents feel that the job satisfaction is not a

significant factor.
 62.0% of the respondents feel that the holiday is not a

significant factor.
 79.5% of the respondents feel that pay is a significant factor.
 62.5% of the respondents feel that bonus is a significant factor.
 52.0% of the respondents feel that the punctuality and

disciplinary rules are not significant factors.
 55.5% of the respondents feel that the Communication is not a

significant factor.
 52.0% of the respondents feel that the Organisation structure is

not a significant factor.
 62.5% of the respondents feel that the individual responsibilities

are not a significant factor.
 36.0% of the respondents feel that the warmth & support are a
significant factor
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TABLE NO. 4.1.3
RANK THE ORGANISATION CLIMATE FACTORS
S. Parameter Weightage Rank

No. Score
1 Relationship with the management 2353 II
2 Relationship with peers 1976 IV
3 Safety measures 2112 III
4 Welfare measures 1738 V
5 Work environment 1585 VI
6 Job satisfaction 1514 VIII
7 Holidays 1329 X
8 Pay 2719 I
9 Bonus 1485 IX
10 Punctuality and disciplinary rules 821 XI
11 Communication 703 XII
12 Organisation structure 495 XIV
13 Individual responsibilities 616 XIII
14 Warmth & support 1554 VII
INFERENCE
The organisation climate factors which influence the respondents are

ranked as follows:
 ‘Pay’ occupies I rank with a score of 2719 points.

 ‘Relationship with the management’ occupies II rank with a score of 2353
points.
 ‘Safety measures’ occupies III rank with a score of 2112 points.
 Relationship with peers’ occupies IV rank with a score of 1976 points.
 ‘Welfare measures’ occupies V rank with a score of 1738 points.

 ‘Work environment’ occupies VI rank with a score of 1585 points.
 ‘Warmth & support’ occupies VII rank with a score of 1554 points.
 ‘Job satisfaction’ occupies VIII rank with a score of 1514points.
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 ‘Bonus’ occupies IX rank with a score of 1485 points.

 ‘Holidays’ occupies X rank with a score of 1329 points.
 ‘Punctuality and disciplinary rules’ occupies XI rank with a score of 821
points.
 ‘Communication’ occupies XII rank with a score of 703 points.
 ‘Individual responsibilities’ occupies XIII rank with a score of 616 points.
 ‘Organisation structure’ occupies XIV rank with a score of 495 points.
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TABLE NO. 4.1.4
LEVEL OF SATISFACTION WITH THE ORGANISATION CLIMATE FACTORS
S.N HDS
o PARAMETER HS S M DS
78 72 21
18 11
1 Relationship with the management (39.0 (36.0 (10.5
(9.0) (5.5)
) ) )
40 82 49
18 11
2 (20.0 (41.0 (24.5
(9.0) (5.5)
Relationship with peers ) ) )
55 76 37 21
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(27.5 (38.0 (18.5 (10.5
(5.5)
3 Safety measures ) ) ) )
70 81 27
12 10
(35.0 (40.5 (13.5
(6.0) (5.0)
4 Welfare measures ) ) )
80 72 24
12 12
(40.0 (36.0 (12.0
(6.0) (6.0)
5 Work environment ) ) )
84 68 20
14 14
(42.0 (34.0 (10.0
(7.0) (7.0)
6 Job satisfaction ) ) )
103 45 20
17 15
(51.5 (22.5 (10.0
(8.5) (7.5)
7 Holidays ) ) )
87 68
18 14 13
(43.5 (34.0
(9.0) (7.0) (6.5)
8 Pay ) )
88 59 23
15 15
(44.0 (29.5 (11.5
(7.5) (7.5)
9 Bonus ) ) )
99 52 24
13 12
10 (49.5 (26.0 (12.0
(6.5) (6.0)
Punctuality and disciplinary rules ) ) )
68 83 20
16 13
(34.0 (41.5 (10.0
(8.0) (6.5)
11 Communication ) ) )
94 64
17 13 12
12 (47.0 (32.0
(8.5) (6.5) (6.0)
Organisation structure ) )
76 83
14 16 11
13 (38.0 (41.5
(7.0) (8.0) (5.5)
Individual responsibilities ) )
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81 77
15 15 12
(40.5 (38.5
(7.5) (7.5) (6.0)
14 Warmth & support ) )
Note : Values in the parenthesis indicates percentage
INFERENCE
The level of satisfaction with the various factors of organisation climate are
observed to be satisfactory.
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TABLE NO. 4.1.5

OPINION ABOUT THE SIGNIFICANCE OF PAY AND LEVEL OF
SATISFACTION WITH PAY
(TWO-WAY TABLE)
Level of Opinion
S.No. satisfaction with
Significant Insignificant
pay
44 43
1 Highly Satisfied
(40.7) (46.7)
34 34
2 Satisfied
(31.5) (37.0)
13 5
3 Neutral
(12.0) (5.4)
8 6
4 Dissatisfied
(7.4) (6.5)
9 4
5 Highly Dissatisfied
(8.3) (4.3)
Total 108 92
INTERPRETATION
It is found from the above table that 40.7% of the respondents who felt
that pay is a significant factor were highly satisfied and 46.7% of the respondents
who felt that pay is an insignificant factor were also highly satisfied.
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TABLE NO. 4.1.6

OPINION ABOUT THE SIGNIFICANCE OF RELATIONSHIP WITH THE
MANAGEMENT AND LEVEL OF SATISFACTION OF RELATIONSHIP WITH
THE MANAGEMENT ( TWO-WAY TABLE )
Level of Opinion
S.No.
Satisfaction Significant Insignificant
37 41
1 Highly Satisfied
(38.5) (39.4)
31 41
2 Satisfied
(32.3) (39.4)
11 10
3 Neutral
(11.5) (9.6)
12 6
4 Dissatisfied
(12.5) (5.8)
5 6
(5.2) (5.8)
Total 96 104
INTERPRETATION
that Relationship with the management is a significant factor were highly satisfied
and 39.4% of the respondents who felt that Relationship with the management is
an insignificant factor were also highly satisfied.
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TABLE NO. 4.1.7

OPINION ABOUT THE SIGNIFICANCE OF SAFETY MEASURES AND
LEVEL OF SATISFACTION WITH SAFETY MEASURES
( TWO-WAY TABLE )
Level of Opinion
S.No.
28 27
1 Highly Satisfied
(30.1) (25.2)
34 42
2 Satisfied
(36.6) (39.3)
18 19
3 Neutral
(19.4) (17.8)
8 13
4 Dissatisfied
(8.6) (12.1)
5 6
(5.4) (5.6)
Total 93 107
INTERPRETATION
that the company safety measures is a significant factor were satisfied and
39.3% of the respondents who felt that the company safety measures is an
insignificant factor were also satisfied.
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TABLE NO. 4.1.8

OPINION ABOUT THE SIGNIFICANCE OF RELATIONSHIP WITH PEERS
AND LEVEL OF SATISFACTION OF RELATIONSHIP WITH PEERS
( TWO-WAY TABLE )
Level of Opinion
S.No.
18 22
1 Highly Satisfied
(18.4) (21.6)
40 42
2 Satisfied
(40.8) (41.2)
25 24
3 Neutral
(25.5) (23.5)
7 11
4 Dissatisfied
(7.1) (10.8)
8 3
(8.2) (2.9)
Total 98 102
INTERPRETATION
It is identified from the above table that 40.8% of the respondents who
felt that the relationship with peers is a significant factor were satisfied and 41.2%
of the respondents who felt that the relationship with peers is an insignificant
factor were also satisfied.
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TABLE NO. 4.1.9

OPINION ABOUT THE SIGNIFICANCE OF WELFARE MEASURES AND
LEVEL OF SATISFACTION WITH WELFARE MEASURES
( TWO-WAY TABLE )
Level of Opinion
S.No.
31 39
1 Highly Satisfied
(34.1) (35.8)
37 44
2 Satisfied
(40.7) (40.4)
15 12
3 Neutral
(16.5) (11.0)
5 7
4 Dissatisfied
(5.5) (6.4)
3 7
(3.3) (6.4)
Total 91 109
INTERPRETATION
It is identified from the above table that 40.7% of the respondents who
felt that the company welfare measures is a significant factor were satisfied and
40.4% of the respondents who felt that the company welfare measures is an
insignificant factor were also satisfied.
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4.2 HYPOTHESIS TESTING
CHI – SQUARE ANALYSIS
TABLE NO. 4.2.1

AGE AND LEVEL OF SATISFACTION WITH
ORGANISATION CLIMATE ( TWO-WAY TABLE )
Null Hypothesis (H0) - The Level of satisfaction with

organisation climate is independent of
the age of the respondent.
Alternative Hypothesis (H1) - The Level of satisfaction with

organisation climate is dependent on the
age of the respondent.
Level of Satisfaction
S.No. Age Total
Low Medium High
16 24 47
1 Below 25 Yrs
(22.19) (22.6) (42.2) 87
23 17 21
2 26 to 30 yrs
(15.56) (15.9) (29.6) 61
12 11 29
3 Above 30 yrs
(13.26) (13.5) (25.2) 52
Total 51 52 97 200
Note : Values in the parenthesis indicates expected frequency.
CHI-SQUARE (χ 2) CALCULATION :
Level of Significance = 5%
Degrees of freedom = (R-1)(C-1) = (3-1) (3-1) = 4
Table value = 9.488
Calculated χ 2 value = 9.648
INFERENCE
It is found from the above analysis that calculated chi-square value is

greater than the table value at 4 degree of freedom. So, Null Hypothesis (H0) is
rejected. Hence, we conclude that the Level of satisfaction with organisation
climate is dependent on the age of the respondent.
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TABLE NO. 4.2.2
MARITAL STATUS AND LEVEL OF SATISFACTION WITH


the marital status of the respondent.

marital status of the respondent.
Level of satisfaction
S.No. Marital Status Total
Low Medium High
25 28 46 99
1 Married
(25.3) (25.7) (48.0)
26 24 51 101
2 Single
(25.8) (25.3) (49.0)
Total 51 52 97 200
Table value = 5.991
Calculated χ 2
value = 0.565
INFERENCE
It is clear from the above analysis that calculated chi-square value is

lesser than the table value at 2 degree of freedom. So, Null Hypothesis (H0) is
accepted. Hence, we conclude that the Level of satisfaction with organisation
climate is independent on the marital status of the respondent.
33
TABLE NO. 4.2.3
GENDER AND LEVEL OF SATISFACTION WITH ORGANISATION CLIMATE

( TWO-WAY TABLE )

the gender of the respondent.

gender of the respondent.
S.No. Gender Total
Low Medium High
16 25 51
1 Male
(32.5) (23.9) (44.6) 92
35 27 46
2 Female
(27.5) (28.1) (52.4) 108
Total 51 52 97 200
Table value = 5.991
Calculated χ 2
value = 6.173
INFERENCE
It is obvious from the above analysis that calculated chi-square value is

climate is dependent on the gender of the respondent.
34
TABLE NO. 4.2.4
EDUCATIONAL QUALIFICATION AND LEVEL OF SATISFACTION WITH

Null Hypothesis (H0) - The Level of satisfaction with organisation

climate is independent of the educational
qualification of the respondent.
Alternative Hypothesis (H1)- The Level of satisfaction with organisation

climate is dependent on the educational
Educational Level of satisfaction

S.No. Total
Qualification Low Medium High
11 13 25
1 No formal qualification
(12.5) (12.7) (23.8) 49
10 10 32
2 Primary Level
(13.3) (13.5) (25.2) 52
19 10 28
3 High School Level
(14.5) (14.8) (27.7) 57
11 19 12
4 College level
(10.7) (10.9) (20.4) 42
Total 51 52 97 200
Table value = 12.592
Calculated χ 2
value = 16.159
INFERENCE
It is seen from the above analysis that calculated chi-square value is

climate is dependent on the educational qualification of the respondent.
35
TABLE NO. 4.2.5

WORK EXPERIENCE AND LEVEL OF SATISFACTION WITH

climate is independent of the working
experience of the respondent.

climate is dependent on the working
S.No. Work Experience Total
Low Medium High
18 14 22
1 Below 1 year
(13.8) (14.0) (26.2) 54
10 15 28
2 1 – 2 years
(13.5) (13.8) (25.7) 53
10 11 36
3 2 – 3 years
(14.5) (14.8) (27.7) 57
13 12 11
4 Above 3 years
(9.2) (9.3) (17.5) 36
Total 51 52 97 200
Calculated χ 2
value = 12.846
INFERENCE

climate is dependent on the working experience of the respondent.
36
TABLE NO. 4.2.6
INCOME LEVEL AND LEVEL OF SATISFACTION WITH


climate is independent of the income level of
the respondent.

climate is dependent on the income level of the
respondent.
S.No. Income Level Total
Low Medium High
14 11 10
1 Below Rs. 1000
(8.9) (9.1) (17.0) 35
11 16 37
2 Rs.1001-Rs.1500
(16.3) (16.6) (31.0) 64
14 15 38
3 Rs.1500-Rs.2000
(17.1) (17.4) (32.5) 67
12 10 12
4 Above Rs.2000
(8.7) (8.8) (16.5) 34
Total 51 52 97 200
Level of significance = 5%
Calculated χ 2
value = 13.532
INFERENCE
It is concluded from the above analysis that calculated chi-square

value is greater than the table value at 6 degree of freedom. So, Null Hypothesis
(H0) is rejected. Hence, we conclude that the Level of satisfaction with
organisation climate is dependent on the income level of the respondent.
37
TABLE NO. 4.2.7
NUMBER OF DEPENDANTS AND LEVEL OF SATISFACTION WITH


climate is independent of the number of
dependants of the respondent.

climate is dependent on the number of
dependants of the respondent.
Number of Level of satisfaction

S.No. Total
Dependants Low Medium High
12 13 38
1 Upto 3 members
(16.1) (16.4) (30.6) 63
18 22 20
2 4 members
(15.3) (15.6) (29.1) 60
21 17 39
3 Above 4 members
(19.6) (20.0) (37.4) 77
Total 51 52 97 200
Degrees of freedom = 4
Table value = 9.488
Calculated χ 2
value = 10.112
INFERENCE

greater than the table value at 4 degrees of freedom. So, Null Hypothesis (H0) is
climate is dependent on the number of dependants of the respondent.
38
TABLE NO. 4.2.8

AGE AND LEVEL OF SATISFACTION WITH PAY
( TWO-WAY TABLE )
Null Hypothesis (H0) - The Level of satisfaction with pay is

independent of the age of the
respondent.
Alternative Hypothesis (H1) - The Level of satisfaction with pay is

dependent on the age of the
respondent.
Level of satisfaction with pay

S.No. Age Total
Dissatisfied Moderate Satisfied
10 10 67
1 Below 25 Yrs 87
(13.9) (11.7) (61.3)
14 6 41
2 26 to 30 yrs 61
(9.8) (8.2) (43.0)
8 11 33
3 Above 30 yrs 52
(8.3) (7.0) (36.7)
Total 32 27 141 200
Table value = 9.488
Calculated χ 2
value = 7.063
INFERENCE
It is evident from the above analysis that calculated chi-square value is

accepted. Hence, we conclude that the level of satisfaction with pay is
independent of the age of the respondent.
39
TABLE NO. 4.2.9

AGE AND LEVEL OF SATISFACTION OF
RELATIONSHIP WITH THE MANAGEMENT ( TWO-WAY TABLE )
Null Hypothesis (H0) - The Level of satisfaction of Relationship

with the management is independent of
Alternative Hypothesis (H1) - The Level of satisfaction of Relationship

with the management is dependent on
Level of Satisfaction of Relationship

S.No. Age with the management Total
8 9 70
1 Below 25 Yrs
(13.5) (10.9) (62.6) 87
16 7 38
2 26 to 30 yrs
(9.5) (7.6) (43.9) 61
7 9 36
3 Above 30 yrs
(8.1) (6.5) (37.4) 52
Total 31 25 144 200
Table value = 9.488
Calculated χ 2
value = 9.955
INFERENCE

rejected. Hence, we conclude that the level of satisfaction of employees
Relationship with the management is dependent on the age of the respondent.
40
TABLE NO. 4.2.10

AGE AND LEVEL OF SATISFACTION WITH
SAFETY MEASURES ( TWO-WAY TABLE )
Null Hypothesis (H0) - The Level of satisfaction with safety

measures is independent of the age of
the respondent.
Alternative Hypothesis (H1) - The Level of satisfaction with safety

measures is dependent on the age of
the respondent.
Level of Satisfaction with

S.No. Age safety measures Total
6 22 59
1 Below 25 Yrs 87
(10.9) (16.1) (60.0)
13 7 41
2 26 to 30 yrs 61
(7.6) (11.3) (42.1)
6 8 38
3 Above 30 yrs 52
(6.5) (9.6) (35.9)
Total 25 37 138 200
Table value = 9.488
Calculated χ 2
value = 10.250
INFERENCE
The above analysis shows that the calculated chi-square value is

rejected. Hence, we conclude that the level of satisfaction with safety measures
is dependent on the age of the respondent.
41
TABLE NO. 4.2.11

MARITAL STATUS AND LEVEL OF SATISFACTION WITH PAY
( TWO-WAY TABLE )

independent of the marital status of the
respondent.

dependent on the marital status of the
respondent.

S.No. Marital Status Total
24 11 64
1 Married 99
(15.8) (13.4) (69.8)
8 16 77
2 Single 101
(16.2) (13.6) (71.2)
Total 32 27 141 200
Table value = 5.991
Calculated χ 2
value = 10.106
INFERENCE
From the above analysis it is evident that the calculated chi-square

value is greater than the table value at 2 degree of freedom. So, Null Hypothesis
(H0) is rejected. Hence, we conclude that the level of satisfaction with pay is
dependent of the marital status of the respondent.
42
TABLE NO. 4.2.12

MARITAL STATUS AND LEVEL OF SATISFACTION OF



S.No. Marital Status with the management Total
22 12 65
1 Married 99
(15.3) (12.4) (71.3)
9 13 79
2 Single 101
(15.7) (12.6) (72.7)
Total 31 25 144 200
Table value = 5.991
Calculated χ 2
value = 6.833
INFERENCE

Relationship with the management is dependent on the marital status of the
respondent.
43
TABLE NO. 4.2.13

MARITAL STATUS AND LEVEL OF SATISFACTION WITH

measures is independent of the marital
status of the respondent.

measures is dependent on the marital
status of the respondent.

S.No. Marital Status safety measures Total
12 22 65
1 Married 99
(12.4) (18.3) (68.3)
13 15 73
2 Single 101
(12.6) (18.7) (69.7)
Total 25 37 138 200
Table value = 5.991
Calculated χ 2
value = 1.808
INFERENCE

accepted. Hence, we conclude that the Level of satisfaction with safety
measures is independent on the marital status of the respondent.
44
TABLE NO. 4.2.14

GENDER AND LEVEL OF SATISFACTION WITH PAY
( TWO-WAY TABLE )

independent of the Gender of the
respondent.

dependent on the Gender of the
respondent.

S.No. Gender Total
10 18 64
1 Male 99
(14.7) (12.4) (64.9)
22 9 77
2 Female 101
(17.3) (14.6) (76.1)
Total 32 27 141 200
Table value = 5.991
Calculated χ 2
value = 7.466
INFERENCE

rejected. Hence, we conclude that the Level of satisfaction with pay is dependent
on the gender of the respondent.
45
TABLE NO. 4.2.15

GENDER AND LEVEL OF SATISFACTION OF



S.No. Gender with the management Total
8 13 71
1 Male 92
(14.3) (11.5) (66.2)
23 12 73
2 Female 108
(16.7) (13.5) (77.8)
Total 31 25 144 200
Table value = 5.991
Calculated χ 2
value = 6.085
INFERENCE

rejected. Hence, we conclude that the Level of satisfaction of employees
Relationship with the management is dependent on the gender of the
respondent.
46
TABLE NO. 4.2.16

GENDER AND LEVEL OF SATISFACTION WITH

measures is independent of the gender
of the respondent.

measures is dependent on the gender of
the respondent.

S.No. Gender safety measures Total
17 13 62
1 Male 92
(11.5) (17.0) (63.5)
8 24 76
2 Female 108
(13.5) (20.0) (74.5)
Total 25 37 138 200
Table value = 5.991
Calculated χ 2
value = 6.693
INFERENCE

rejected. Hence, we conclude that the Level of satisfaction with safety measures
is dependent on the gender of the respondent.
47
TABLE NO. 4.2.17

EDUCATIONAL QUALIFICATION AND LEVEL OF
SATISFACTION WITH PAY
( TWO-WAY TABLE )

independent of the educational

dependent on the educational
Educational Level of satisfaction with pay

S.No. Total
Qualification Dissatisfied Moderate Satisfied
No formal 11 5 33
1 49
qualification (7.8) (6.6) (34.5)
Primary Level 7 6 39
2 52
(8.3) (7.0) (36.7)
High School Level 8 6 43
3 57
(9.1) (7.7) (40.2)
College level 6 10 26
4 42
(6.7) (5.7) (29.6)
Total 32 27 141 200
Calculated χ 2
value = 6.776
INFERENCE

independent of the educational qualification of the respondent.
TABLE NO. 4.2.18
EDUCATIONAL QUALIFICATION AND LEVEL OF SATISFACTION OF
48

the educational qualification of the
respondent.

the educational qualification of the
respondent.
Educational
S.No. with the management Total
Qualification
No formal 6 7 36
1 49
qualification (7.6) (6.1) (35.3)
2 52
(8.1) (6.5) (37.4)
3 57
(8.8) (7.1) (41.0)
4 42
(6.5) (5.3) (30.2)
Total 31 25 144 200
INFERENCE

Relationship with the management is dependent on the educational qualification
of the respondent.
TABLE NO. 4.2.19
EDUCATIONAL QUALIFICATION AND LEVEL OF SATISFACTION WITH
49

measures is independent of the
educational qualification of the
respondent.

measures is dependent on the
educational qualification of the
respondent.

Educational
S.No. safety measures Total
Qualification
No formal qualification 7 6 36
1 49
(6.1) (9.1) (33.8)
2 52
(6.5) (9.6) (35.9)
3 57
(7.1) (10.5) (39.3)
4 42
(5.3) (7.8) (29.0)
Total 25 37 138 200
Calculated χ 2
value = 4.282
INFERENCE

accepted. Hence, we conclude that the level of satisfaction with safety measures
is independent on the educational qualification of the respondent.
TABLE NO. 4.2.20

EXPERIENCE AND LEVEL OF SATISFACTION WITH PAY
( TWO-WAY TABLE )
50

independent of the experience of the
respondent.

dependent on the experience of the
respondent.

S.No. Experience Total
10 7 37
1 Below 1 year 54
(8.6) (7.3) (38.1)
9 7 37
2 1 – 2 years 53
(8.5) (7.2) (37.4)
7 6 44
3 2 – 3 years 57
(9.1) (7.7) (40.2)
6 7 23
4 Above 3 years 36
(5.8) (4.9) (25.4)
Total 32 27 141 200
Degrees of freedom = (R-1) (C-1) = (4-1) (3-1) = 6
INFERENCE

independent of the working experience of the respondent.
TABLE NO. 4.2.21
EXPERIENCE AND LEVEL OF SATISFACTION OF
51

the experience of the respondent.

the experience of the respondent.
S.No. Experience with the management Total
11 6 37
1 Below 1 year 49
(8.4) (6.8) (38.9)
6 5 42
2 1 – 2 years 52
(8.2) (6.6) (38.2)
7 8 42
3 2 – 3 years 57
(8.8) (7.1) (41.0)
7 6 23
4 Above 3 years 42
(5.6) (4.5) (25.9)
Total 31 25 144 200
INFERENCE

accepted. Hence, we conclude that the level of satisfaction of employees
Relationship with the management is independent on the experience of the
respondent.
TABLE NO. 4.2.23

EXPERIENCE AND LEVEL OF SATISFACTION WITH
52

measures is independent of the

measures is dependent on the

S.No. Experience safety measures Total
6 6 42
1 Below 1 year 49
(6.8) (10.0) (37.3)
6 10 37
2 1 – 2 years 52
(6.6) (9.8) (36.6)
6 15 36
3 2 – 3 years 57
(7.1) (10.5) (39.3)
7 6 23
4 Above 3 years 42
(4.5) (6.7) (24.8)
Total 25 37 138 200
Calculated χ 2
value = 6.280
INFERENCE

is independent on the experience of the respondent.
53
TABLE NO. 4.2.24

INCOME AND LEVEL OF SATISFACTION WITH PAY ( TWO-WAY TABLE )

independent of the income level of the
respondent.

dependent on the income level of the
respondent.

S.No. Income Total
11 8 16
1 Below Rs. 1000 35
(5.6) (4.7) (24.7)
9 6 49
2 Rs.1001-Rs.1500 64
(10.2) (8.6) (45.1)
7 7 53
3 Rs.1500-Rs.2000 67
(10.7) (9.0) (47.2)
5 6 23
4 Above Rs.2000 34
(5.4) (4.6) (24.0)
Total 32 27 141 200
Calculated χ 2
value = 14.782
INFERENCE

rejected. Hence, we conclude that the level of satisfaction with pay is dependent
on the income level of the respondent.
54
TABLE NO. 4.2.25

INCOME LEVEL AND LEVEL OF SATISFACTION OF

the income level of the respondent.

the income level of the respondent.
S.No. Income Level with the management Total
6 8 21
1 Below Rs. 1000 35
(5.4) (4.4) (25.2)
7 5 52
2 Rs.1001-Rs.1500 64
(9.9) (8.0) (46.1)
8 6 53
3 Rs.1500-Rs.2000 67
(10.4) (8.4) (48.2)
10 6 18
4 Above Rs.2000 34
(5.3) (4.3) (24.5)
Total 31 25 144 200
INFERENCE

Relationship with the management is dependent on the income level of the
respondent.
55
TABLE NO. 4.2.26

INCOME LEVEL AND LEVEL OF SATISFACTION WITH
SAFETY MEASURES (TWO-WAY TABLE)

measures is independent of the income
level of the respondent.

measures is dependent on the income
level of the respondent.

S.No. Income level safety measures Total
6 5 24
1 Below Rs. 1000 35
(4.4) (6.5) (24.2)
6 15 43
2 Rs.1001-Rs.1500 64
(8.0) (11.8) (44.2)
7 11 49
3 Rs.1500-Rs.2000 67
(8.4) (12.4) (46.2)
6 6 22
4 Above Rs.2000 34
(4.3) (6.3) (23.5)
Total 25 37 138 200
Calculated χ 2
value = 3.688
INFERENCE

is independent on the income level of the respondent.
56
CHAPTER 5
FINDINGS
The following are the findings that throw light on the CIBI International
workers satisfaction level on organisation climate
 The overall organisation climate is found to be very good.

 When the respondents were asked to rank the various organisation
climate factors the following results are obtained.
o Pay
o Relationship with the management
o Safety measures
o Relationship with peers
o Welfare measures
 The following factors were considered to be significant by the

employees of CIBI International (In the order of preferences).
o Pay (79.5%)
o Warmth & Support (64%)
o Bonus (62.5%)
o Relationship with the management (58%)
o Safety measures (54.5%)
Individual responsibilities, holidays and job satisfaction are

considered to be the least significant factors.
57
 The employees were satisfied with the relationship with the

management (75%), Relationship with peers (61%), Safety measures
(65.5%), Pay (77.5%), Bonus (73.5%), Warmth and support (79%).
 From the hypothesis testing, it is found that the level of satisfaction of

overall organisation climate is dependent on the factors like age,
gender, educational qualification, work experience, income level and
number of dependants and is independent with respect to the marital
status.
 From the hypothesis testing, it is found that the level of satisfaction

with pay is dependent on the factors like marital status, gender and
income level and is independent with respect to the factors like age,
educational qualification and work experience.
 From the hypothesis testing, it is found that the level of satisfaction of

the Relationship with the management is dependent on the factors
like age, marital status, gender, educational qualification and income
level and is independent of work experience.
 From the hypothesis testing, it is found that the level of satisfaction

with safety measures is dependent on the factors like age and gender
and is independent with respect to the factors like marital status,
educational qualification, work experience and income level.
58
CHAPTER 6
SUGGESTIONS AND RECOMMENDATIONS
Making a comparison between the rank and the significance of the various
organisation climate factors, pay, relationship with the management, safety
measures were the most important. Hence they need to be continuously
monitored and the loop holes be plugged.
Since pay is found to be the most important influencing factor of

organisation climate the piece rate can be increased.
On interacting with various employees of CIBI International the

following welfare measure suggestions were revealed.
1. Regarding canteen facilities, free tea can be provided for the

workers. Proper hygiene can be maintained by providing boiled
utensils to the employees every time.
2. Latrines and urinal facilities can be increased. A frequent inspection

will be helpful to maintain the cleanliness all over the organisation.
3. Water purifiers can be provided for each and every department so

that the satisfactory level can be increased. Further Uniforms and
shoes can be provided for the workers.
59
4. Transportation facilities can be increased by providing bus facilities

for the employees coming from the area of Kangayam.
Some suggestions for improving relationship with the management

are:
5. The management can give proper care towards grievance handling

system.
6. Emphasis can be placed on counseling programs and training and

development programmes.
7. Individual performance can be recognized for better functioning of

the organisation.
.
60
CHAPTER 7
CONCLUSION
Climate is the atmosphere that employees perceive and it is created in

their organisation by practices, procedures and rewards. A sound climate is a
long-term proposition. Organisation climate is an important key to employee’s
satisfaction, motivation and performance.
The existing organisation climate has been decided on the basis of

observation, conversation with workers and analysis of questionnaire collected
from the company. Out of total population of 570 workers, a sample of 200 was
selected for the study. Most of the workers under the study have rated the
organisation climate as good.
If the suggestions are implemented it would create a further conductive

climate for the organisation to achieve its objectives effectively.
61
1-20,22-59

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1

1.1 COMPANY PROFILE

CIBI International was established in the year 1988 in Perundurai, as

The company is located in Perundurai which is about 20 kms from

To produce quality goods on time, a good production facility capable

The manufacturing process has been vertically integrated to facilitate

The company primarily exports Knitwears and woven wears.

CHART 1.1.1 ORGANISATION STRUCTURE

MANAGER MANAGER MANAGER MANAGER

PERSONNEL ACCOUNTS Q.C.

CHART 1.1.2 PRODUCTION CHART

1.2 ABOUT THE STUDY

1.2.1 CONCEPT OF ORGANISATION CLIMATE

Climate, in natural sense, is referred to as the average course of condition

Forehand and Glimmer feel that climate consists of a set of characteristics

Based on these characteristics, Campbell et al define organisation climate

“A set of attributes specific to a particular organisation that may be

terms of both static characteristics (such as degree of autonomy) and behaviour

When organisation climate is defined in this way, many kinds of

1.2.2 FACTORS IN ORGANISATION CLIMATE

Researchers in organisation climate have used data relating to

 Organisational structure – perception of the extent of organisational

A broader and more systematic study of climate dimensions described

Taguiri has identified five factors in organisation climate on the basis of

 Practices relating to providing a sense of direction or purpose to their jobs –

The results of these studies show that it is very difficult to generalize

1.2.3 IMPACT OF ORGANISATION CLIMATE

Organisation climate has a major influence on human performance

 Organisational variables can operate as constraints system in both a positive

 Organisational variables may affect behaviour through evaluation of the self

 Organisational factors work as stimuli. They influence an individual’s arousal

 Organisational variables influence behaviour. They influence the individual to

1.2.4 DEVELOPING A SOUND ORGANISATION CLIMATE

A sound organisation climate is a long-term proposition. The climate of

The organisation climate is contingent on the assumptions of the

what motivates job performance in general and builds an overall climate

 Absence of political maneuvering for organisational positions and other

These prescriptions can be achieved on a long-term basis and more by

1.3 REVIEW OF LITERATURE

A study on organisation climate was done by KIWI HOST, New

Such a study was also carried out by Graphite Technologies which

Organisation climate is studied in CIBI International for the first time.

OBJECTIVES, SCOPE AND LIMITATIONS OF THE STUDY

2.1 OBJECTIVES OF THE STUDY

 To study the overall organisation climate of CIBI International, Perundurai.

 To study the factors influencing the organisation climate of CIBI International,

 To study the significance of the factors influencing the organisation climate of

 To rank the factors influencing the organisation climate of CIBI International,

 To study the level of satisfaction of the factors influencing the organisation

 To suggest some measures to improve the organisation climate of CIBI

2.2 SCOPE OF THE STUDY

The study has been under taken :-

 To assess the real opinion and mindset of employees and

 To understand the employee psychology on organisation

 To throw light on the effectiveness of the organisation

2.3 LIMITATIONS OF THE STUDY

 The sample of respondents belongs to a single organisation i.e. CIBI

 It is difficult to measure the attitude of the workers exactly. Therefore the

3.1 AREA OF THE STUDY

CIBI International is a textile mill, which has been selected to study

3.2 RESEARCH DESIGN

The study adopts descriptive research method. The major purpose of

3.3 SAMPLING DESIGN