DETERMINANT OF ORGANISATIONAL CLIMATE AND THE PERFORMANCE OF EMPLOYEES IN SKYWAY AVIATION HANDLING COMPANY LIMITED

CHAPTER ONE

INTRODUCTION

Background Of The Study

Organizational climate can have an effect on how employees perform within an organization because the way people feel and the way they perform have a strong nexus or relationship (Freedman, 2005). A poor organizational climate characterized by lack of recognition, lack of trust, lack of cohesion, lack of organizational support, lack of accountability, lack of transparency etc., may lead to low employee productivity and low organizational profitability. Organizational climate has also been linked to the interactive relationships existing between and among employees and their employers, and the working environment they all find themselves (Schneider, 2007). Studies have also shown that organizational climate affects the performance of a organisation when the perception of the workers about the structure and policies of the said organisation is positive (Patterson et al, 2004). Organizational climate has also been shown to significantly affect the morale, commitment, loyalty, satisfaction, welfare and performance of employees (Potosky and Ramahrishna, 2001). Furthermore, it is essential to note that working in a wholesome and satisfying climate influences the levels and quality of performance of workers in an organization. This is because it has long been clear that behavior is a function of both a person’s characteristics and the nature of his or her environment (Potosky and Ramahrishna, 2001). Also, it is essential for an organization to put in place autonomy systems, develop trust among employees, develop fairness in all the company’s dealings, apply efficient support systems and policies that will be work -and-organization-friendly in order to enhance productivity and innovativeness of the employees in the organization (Koys and De Cotiis, 1991). This is because important environmental features in work settings are essential for the analysis and determination of employee perceptions of their organizations (Patterson et al, 2004). Ngerobo (2000) have posited that the excellent performance of workers translates into the productivity of an organization, thus enhances the organization’s performance in the industry it finds itself. According to Ngerobo (2000), the primary aim of organizations is to make profit and survive. These objectives have made many purposeful organizations to thrive to enhance their performance so as to attain set targets. Thus, to achieve excellent performance at the corporate level, the work environment and the current conditions within the company which influences the attitude and behaviour of workers must be one that can promote support, loyalty, reward and warmth that can motivate the workers to put their entire energy towards the success of the organization. Where an organization’s climate is conducive, invariably performance of employees can be easily enhanced. Several researches on how to improve organizational performance have taken place in the past two decades. The difference in performance is often related to the strategy adopted by an organization to achieve its objectives. It has also been argued that strategic group membership and associated collective behaviours are the primary sources of durable differences in organizational profitability and effectiveness (Caves and Porter, 2003; Porter, 1979). Over the past decade, a great deal has been written about Organizational climate and the role it plays in successful performance of organizations (Schneider, 2007: Koys and De Cotiis, 1991: Ngerobo, 2000: Potosky and Ramahrishna, 2001: Patterson et al, 2004: Freedman, 2005: Biswas & Varma, 2007: MacCormick, 2010). Despite this growth of scholarly publications on the influence of organizational climate on organizational performance, little empirical evidence exists in developing countries, especially Nigeria. To bridge this gap in literature, this study examines the relationship between organizational climate and the performance of selected oil companies in Nigeria. By exploring the relationship between organizational climate and the performance, organizations can enhance their competitive advantage and effectiveness.

Statement Of The Problem

When you think about it, it can be realized that, the success of any facet of business or company can be traced back to ensuring optimal performance of employees. From performance and profitability to recruiting and retention, hardworking and happy employees lead to harmony and organizational performance but this can only be guaranteed through the creation of enabling organizational climate (Ryan, 2012). Unfortunately, ensuring enabling climate in any organisation is far from an exact science in most businesses or organizations in Nigeria today as this has accounted to the general poor performance of employees in Nigerian organisations. Most organizations in Nigeria are still living in yesteryears of organizational management. Organization exists for the purpose of rendering specified services. Thus, in order to ensure that people employed in the organization perform optimally towards the realization of organizational goals, they need to create an enabling organizational climate is paramount and key. Lack of a conducive organizational climate may result in losses which may eventually lead to low staff performance, poor attitude towards work, low output level and low profitability.

Aims And Objectives Of The Study

The major aim of the study is to assess the determinants of organizational climate and the performance of employees in an organization. Other objectives of the study include;

1. To examine the level or employee performance in skyway aviation handling company
2. To assess the benefit of ensuring a conducive organizational  climate in skyway aviation handling company limited
3. To examine the major determinants of organizational climate in an organization.
4. To examine the impact of organizational climate on employee performance in skyway aviation handling company limited.
5. To determine the relationship between organizational climate and employee performance in sky way aviation handling company.
6. To recommend ways of improving the performance of employees of skyway aviation handling company limited through ensuring a conducive organizational climate.

Research Questions

1. What is the level of employee performance in skyway aviation handling company?
2. What are the benefits of ensuring a conducive organizational climate in skyway aviation handling company limited?
3. What are the major determinants of organizational climate in an organization?
4. What is the impact of organizational climate on employee performance in skyway aviation handling company limited?
5. What is the relationship between organizational climate and employee performance in sky way aviation handling company?
6. What are the ways of improving the performance of employees of skyway aviation handling company limited through ensuring a conducive organizational climate?

Research Hypotheses

H01: There is no significant impact of organizational climate on employee performance in skyway aviation handling company limited.

H02: There is no significant relationship between organizational climate and employee performance in sky way aviation handling company.

Significance Of The Study

The findings would enable effective management of employees towards achieving organizational goals. The study will enable managers of sky way aviation handling company limited to identify how Performance can be improved through effective and efficient organizational climate. It will also be of benefit for policy makers in various forms of business organization. It will be of immense guide to future researchers who intends to exploit and understand further concepts of organizational climate as a managerial tool to enhance employee performance in an organization like sky way aviation handling company limited.

Scope Of The Study

The scope of this study is merely confined to the sky way aviation handling company limited, Lagos as hob of commercial activities in Nigeria. This study will mainly focus on organizational climate and employee effective performance related to activities around sky way aviation handling company limited. This work will also investigate the importance of organisational climate in achieving effective performance of employees.  

Definition of Terms

Employee: A person that works especially at manual or industrial labour or with a particular material.

Performance: The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfillment of an obligation, in a manner that releases the performer from all liabilities under the contract.

Employee Performance

Employee performance is basically outcomes achieved and accomplishments made at workplace through human efforts (Anitha, 2014).