Journal of Business and Policy Research Vol. 6. No. 2. September 2011. Special Issue. Pp.

136-152

An Empirical Study on the Organizational Climate of Information Technology Industry in India

Jain Mathew1, Tomy K.Kallarakal2, Uma Selvi3 and Kennedy Andrew Thomas4
The world has recognized Indias competitive advantage in software services and today India is a magnet for software clients owing to the quality of its skilled software manpower. Organizational climate has been defined as a perception of the psychologically important aspects of the work environment and is recognized as a potential influence on employees workplace behavior and job satisfaction (Ashforth, 1985). Climate consists of a set of characteristics that describe an organization, distinguish it from other organizations, are relatively enduring over time and influence the behavior of people in it. Organizational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees. So the managements of Information Technology companies should strive to create a congenial organizational climate in their organizations for retaining the employees and maintaining high productivity. The study is conducted by collecting primary data from 389 respondents spread over 38 Information Technology companies in India. The study suggests the methods for improving the organizational climate in Information Technology companies.

Key Words: Organizational Climate, Information Technology Industry, workplace behavior. Field of Research: Management

1. Introduction
India has found an unexpected opportunity in the new revolution caused by information technology, especially in customized software development. India, with its large pool of qualified technical professionals has been recognized as an important base for software development (Gopalan 2000; Paul 2002). With a compounded annual growth rate of 32% between 2005 and 2009 the Indian IT software and services sector has expanded almost twice as fast as the US software sector. The sector is estimated to aggregate
1

Professor& Head, Department of Management Studies, Christ University, Bangalore. Email: jainmathew@christuniversity.in 2 Professor& Head, Department of Tourism Studies, Christ University, Bangalore. Email: tomy.kk@christuniversity.in 3 Professor, Department of Management Studies, Majan University, Oman. Email: umaselvia@yahoo.co.in 4 Director, Centre for Education Beyond curriculum, Christ University, Bangalore. Email: kennedy.andrew@christuniversity.in

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revenues of USD 88.1 billion in FY2011, with the IT software and services sector (excluding hardware) accounting for USD 76.1 billion of revenues. During this period, direct employment is expected to reach nearly 2.5 million, an addition of 240,000 employees, while indirect job creation is estimated at 8.3 million. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 6.4 per cent in FY 2011. Its share of total Indian exports increased from less than 4 per cent in FY1998 to 26 per cent in FY2011. Export revenues are estimated to gross USD 59 billion in FY2011 accounting for a 2 million workforce. The year 2010-11 was characterized by a consistent demand from the US, which increased its share to 61.5 per cent. Emerging markets of Asia Pacific and rest of the world also contributed significantly to overall growth. Within exports, IT Services segment was the fastest growing segment, growing by 22.7 per cent over FY2010, and aggregating export revenues of USD 33.5 billion, accounting for 57 per cent of total exports. Indian IT service offerings have evolved from application development and maintenance, to emerge as full service players providing testing services, infrastructure services, consulting and system integration (NASSCOM 2011). The world has recognized Indias competitive advantage in software services and today India is a magnet for software clients owing to the quality of its skilled software manpower (NASSCOM 2010). India has gained a lot of interest as a source of software and has emerged as a leader in the software industry (Heeks et al. 2000). Indian firms develop software for more than three fourth of the Fortune 500 companies and at least half of the Global 2000 corporations (NASSCOM 2009). The most important success factor for quality software development is having talented and smart people (Brooks 1987). Being manpower intensive industry, availability, cost, turnover and productivity of manpower are critical to the functioning of the organization. The key to success of Indian software industry is the supply of trained, low cost software professionals (Arora & Asundi 1999). Software industry is driven by technology and hence tends to be skill intensive. The level of talent on software project is the strongest predictor of its results (Boehm 1981). Personnel shortfalls are one of the most severe project risks (Boehm 1988). Software development is large-scale integrated, intellectual work (Humphrey 1989). The skill of developing software is the skill of managing intellectual complexity (Curtis 1981). The high rate of employee turnover has been one major issue that most software companies have been worried about. Employee turnover causes disruptions in project implementation and loss of skills inculcated through training and hands-on experience. Though some turnover is inevitable and even healthy at times, a high level of turnover could be detrimental to a companys business in a people-driven industry like software. Since the very survival and success of software companies depend on the availability and the effective utilization of talented people, human resource activities provide the largest source of opportunity for improving software development productivity (Boehm1981). The current paper has been structured with the conceptual background of the term organizational climate, review of literature, the methodology used with respect to the 137

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objectives, statement of hypotheses, sampling technique, tools and statistical techniques used for analysis with results, implications, conclusions and limitations.

2. Organizational Climate
Organizational climate has been defined as a perception of the psychologically important aspects of the work environment and is recognized as a potential influence on employees workplace behavior and job satisfaction (Ashforth 1985). Climate consists of a set of characteristics that describe an organization, distinguish it from other organizations, are relatively enduring over time and influence the behavior of people in it. The individual workers perception of his work environment rather than a consensus view is considered, as different individuals may perceive the same workplace in different ways (Klein et al.2001). Organizational climate is defined as shared perceptions or prevailing organizational norms for conducting workplace activities (Reichers & Schneider 1990). It has been conceptualized as a cognitively based set of perceptual descriptions that define the psychological climate (James & Jones 1974; Kozlowski & Hults 1987), and therefore it is possible to measure individual-level perceptions of the organizational climate for updating (Kozlowski & Farr 1988; Kozlowski & Hults 1987). So the focus is on employees perceptions of salient features of the organizational context. Kozlowski and Farr (1988) recommended that research consider the interaction between individual characteristics and perceived situational features of the environment when determining whether technical professionals will voluntarily seek to learn new skills. Perceptions relevant to a specific climate domain such as the innovation climate have motivational implications on congruent behavioral outcomes (Schneider 1983). According to Campbell et al. (1970) Organizational climate is defined as a set of attributes specific to a particular organization that may be induced from the way that organization deals with its members and its environment. For the individual members within the organization, climate takes the form of a set of attitudes and experiences which describe the organization in terms of both static characteristics (such as degree of autonomy) and behavior outcome. Organizational climate is a relatively enduring quality of the internal environment that is experienced by its members, influences their behavior and can be described in terms of the value of a particular set of characteristics of the organization. It may be possible to have as many climates as there are people in the organization when considered collectively, the actions of the individuals become more meaningful for viewing the total impact upon the climate and determining the stability of the work environment. The climate should be viewed from a total system perspective. While there may be differences in climates within departments these will be integrated to a certain extent to denote overall organizational climate.

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Mathew, Kallarakal, Selvi & Thomas 3. Statement of the Problem

Organizational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees. Organizational climate determines the work environment in which the employee feels satisfied or dissatisfied. Since satisfaction determines or influences the efficiency of the employees, we can say that organizational climate is directly related to the efficiency and performance of the employees. The organizational climate can affect the human behavior in the organization through an impact on their performance, satisfaction and attitudes. Organizational climate of different companies in the same Industry may vary, based on the type and size of the company. Hence to evaluate the prevailing organizational climate of different types of companies in the Information Technology Industry, the researcher felt the need to undertake the present study stated as An Empirical Study on the Organizational Climate of Information Technology Industry in India.

4. Need for the Study

For the success of any organization there should be a good organizational climate. The perceived organizational climate as a set of properties of the working environment is a mediating variable between organizational system and motivation. Ostroff (1993) suggests that the effectiveness of an organization depends on the behavior of the people within the organization, and the organizational context, which they create. An indepth analysis of organizational climate may help an organization to become more productive and efficient. Considering the fact that Information Technology is a booming sector and provides maximum employment opportunities it is essential to build conducive organizational climate. Considering all these aspects the investigator felt the imperative need to study the organizational climate in different types of companies in Information Technology Industry.

5. Literature Review
Probably no concept of organizational behavior has received as much attention of academicians and researchers as organizational climate in recent years. The review of literature carried out covers between 1987- 2010. The studies carried out in India and abroad have been reviewed extensively. Verghese et al. (2010) studied the relation between customer orientation and organizational climate from a sample of 500 employees in public sector and private sector banks and arrived at a conclusion that organizational climate enhances with customer orientation. Higher customer orientation is conducive for building a sound organizational climate. Srivastav (2009) investigated organizational climate by measuring six climate motives on 453 executives in a large Indian public sector industry using motivational analysis of organizational climate. The findings demonstrate the heterogeneous nature of 139

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organizational climate, and the study helps to provide a better appreciation of differences in employee behavior across the company. Dawson et al. (2008) considered three theoretical perspectives of climate strength, and extended these to the organizational level. These three roles of climate strength were tested in 56 hospitals in the United Kingdom and indicated that very high or very low integration climate strength was less beneficial than a moderate level of climate strength. However, there were no interaction effects discovered between climate and climate strength. Burke et al. (2008) used data from 68 organizations embedded within 14 nations and examined hypotheses concerning the moderating roles of national culture and organizational climate on the transfer of training to the work context. Schulte Ostroff & Kinicki (2006) conducted a research, which demonstrated that both individual-level climate perceptions and organizational climate are related to job satisfaction and examined the overall climate in a work unit has significant influence on individual attitudes, after accounting for individuals idiosyncratic perceptions of the climate. Smith, Collins & Clark (2005) suggested that an organizations climate plays a strategic role in knowledge creation capability. Patterson, Warr & West (2004) predicted that associations between company climate and productivity would be mediated by average level of job satisfaction by studying 42 manufacturing companies and interpreted that company productivity was more strongly correlated with those aspects of climate that had stronger satisfaction loadings. Lin, Madu & Chu-Hua (1999) studied the relationship between organizational climate and quality management practices of Taiwanese small-and medium-sized manufacturing companies and connoted the small and medium-sized firms that tend to de-emphasize organizational structure appear to have a high-quality-tendency orientation. Kozlowski & Hults (1987) found out that many organizations are concerned about the updating of the knowledge and skills of technical professionals such as engineers due to the rapid technological innovations. Overall, the study assessed the efficacy of the concept of updating climate. It was also found out that the concept of updating climate provides a useful framework for understanding factors that facilitate technical competence and performance. The literature survey shows that till now the organizational climate of the different types of organizations, especially in IT sector, has not been explored. So the researcher felt that such a comparative study would help the different types of organizations to frame strategies to improve their organizational climate. The review also revealed that the organizations climate plays a strategic role in knowledge creation capability. These observations made the investigator to consider the organizational climate as a variable of his study. These realizations from the literature review made the researcher to think of studying the interlinking connections and variations between different types of companies in the IT industry on the organizational climate since a lacuna has been identified by the investigator. The investigator has made a sincere and concerted effort to systematically compile as far as possible the research studies related to organizational climate in IT industry and selected independent variables of the present study . 140

Mathew, Kallarakal, Selvi & Thomas 6. Research Methodology

The present study considers organizational climate experienced currently in a number (n=389) of 38 Information Technology companies situated in India. The study was conducted during the period of 2007 to 2010. The study is descriptive and cross sectional type of survey. The clear design of the study is as follows:

7. Objectives of the Study

1. To study the significant difference between small scale, large scale and multinational companies with respect to organizational climate and its dimensions. 2. To investigate the influence of biographical variables such as gender, age, experience, marital status, qualification and designation on the organizational climate of Information Technology companies. 3. To discuss the implications arising out of the study for effective management of Information Technology organizations.

8. Research Hypotheses
H0 1: There is no significant difference between small scale, large scale and multinational Information Technology companies with respect to organizational climate and its dimensions. H0 2: There is no significant influence of biographical variables such as gender, age, experience, marital status, qualification and designation on the organizational climate of Information Technology companies.

9. Variables of the Study

1 Organizational climate (dependent variable) 2 Biographical variables namely type of company, Age, Gender, Marital status, Designations, Total work experience, Work experience in current organization and Educational qualifications.

10. Data
The population for the study was software companies in Bangalore having commenced operation at least since 2002 because the study focused on identifying the organizational climate of the software companies, which existed at least for six years. Using NASSCOM membership as a measure, the number of software firms in Bangalore was 455 during the base year of data collection. Software companies were generally classified as small and medium-scale, large-scale, and multinational companies. Taking into account the number of companies as per NASSCOM data, the sample was chosen as 10% of the population. To get equal representation it was decided to take 15 companies each in all the three categories. The sample to be 141

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collected from each company was decided to be 5% of the employees in the software company under study. Since the number of employees varies from 50 to 20000 or more across organizations, 5% of the employees of only one development centre were selected. Convenience sampling was resorted to in this study because it was the feasible alternative to get adequate responses given the stringent criteria for enlisting companies and individual respondents within them. A total of 1000 employees from 45 different software companies in Bangalore city were approached for data collection. An internal coordinator was identified in each company in order to facilitate the data collection based on the number of employees in each unit. Out of 420 responses collected from 40 companies, 389 responses from 38 companies were usable ones. The data was collected from 14 small and medium-scale enterprises, 13 large-scale companies and 11 multinational companies. To draw valid suggestion, we employed students t-test and one way analysis of variance (ANOVA) by using SPSS 11.0 statistical software and the results obtained thereby have been interpreted.

11. Tool Used Organizational Climate Scale

The organizational climate scale was constructed and standardized originally by Somnath Chattopadhyay and K.G Agarwal, Later it was adapted and standardized by investigator. The adapted and standardized organizational climate scale consists of 70 items to be responded on a five-point scale. Reliability and Validity After adaptation of the original organizational climate scale by investigator, a pilot study was carried out on a random sample of 100 employees. The reliability and validity of the scale was assessed by the split half reliability technique and the split half reliability coefficient of the organizational climate scale was found to be 0.8980 (89.80%). The internal consistency of the scale was 0.9476 (94.76%). The intra-class correlations were obtained by using the item analysis technique and intra-class correlation coefficient is ranging from 0.3541 to 0.7938. All items of the organizational climate are found to be significant except question numbers 17 and 21 and they were also included in the study. The corresponding validity of the organizational climate scale was found to be 94.76%. The details are presented in the following table:

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Table 1: Reliability analysis of organizational climate scale Summary Values Cronbach alpha, full scale Standardized alpha Corr. 1st & 2nd half Split-half reliability Guttman split-half Cronbach alpha-first half Cronbach alpha-second half % of reliability 0.9476 0.9489 0.7254 0.8980 0.8873 0.5247 0.6104 89.8000

The data for the present study was obtained from 389 employees working in different types of Information Technology companies namely, small and medium enterprises, large scale enterprises and multinational corporations in Information Technology industry in India. The employees details are represented in the following table. Table 2: Employees distribution according to company and gender Type of Company Male Female Total Small & Medium Enterprises 70 18 88 Large scale Enterprises 122 40 162 Multi National Corporations 90 49 139 Total 282 107 389

12. Limitations of the Study

Since the study focuses on the software companies, the companies engaged in Information Technology enabled services were not part of the sample. The approval and support of the participating companies for the study was a factor not under the control of the researcher.

13. Results & Discussion

H0 1: There is no significant difference between small scale, large scale and multinational Information Technology companies with respect to organizational climate and its dimensions.

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Table 3: The table showing one-way analysis of variance (ANOVA) of organizational climate and its dimensions Small and Large Multi Medium scale National FVariables Summary Enterprise Enterprise Corporation value Signi. 229.1477 240.4568 232.6259 3.9818 * Organizational climate Mean SD 33.0442 36.3739 28.1912 Dimensions of Organizational climate 23.8750 24.7037 24.2302 1.3479 NS Performance Standards Mean SD 3.8561 3.8800 4.0937 Mean 34.9318 36.5741 35.5683 1.7900 NS Communication flow SD 6.5422 7.1980 6.7449 Mean 13.6591 14.3765 13.8849 1.6923 NS Reward system SD 3.1106 3.3363 3.0647 Mean 12.2727 12.9321 13.0719 2.7419 NS Responsibility SD 2.1103 2.6937 2.7705 Mean 24.4205 24.7778 23.7050 2.2057 NS Conflict resolution SD 4.0193 4.9532 4.0744 15.0909 15.5309 15.2302 0.5089 NS Organizational structure Mean SD 2.7486 3.5301 4.0312 Mean 23.0795 24.5988 23.8849 2.8956 * Motivational level SD 4.9392 5.3666 3.9965 22.0000 23.3025 21.7122 5.4118 * Decision making process Mean SD 3.9392 4.7432 4.3058 Mean 30.1364 31.6481 31.1871 1.9977 NS Support system SD 4.8712 6.3427 5.4461 Mean 16.2159 17.7407 16.8058 5.0418 * Warmth SD 3.9667 3.8683 3.6512 Mean 13.7727 14.4259 14.5108 1.6346 NS Identity problems SD 2.6337 3.1164 3.5618 * Significant at 0.05 levels From Table 3 it is clearly observed that: Small scale, large scale and multinational Information Technology companies differ significantly with respect to organizational climate (F=3.9818) at 0.05 level of significance. Hence, the null hypothesis is rejected and alternative hypothesis is accepted. The organizational climates of large scale Indian companies are better than that of, and multinational companies and small scale Information Technology companies. Small scale, large scale and multinational Information Technology companies do not differ significantly with respect to dimensions of organizational climate i.e. performance standards (F=1.3479), communication flow (F=1.7900), reward system (F=1.6923), responsibility (F=2.7419), conflict resolution (F=2.2057), organizational structure 144

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(F=0.5089), support system (F=1.9977) and identity problems (F=1.6346) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. In another words, small scale, large scale and multinational companies have similar performance standards, communication flow, reward system, responsibility, conflict resolution, organizational structure, and support system and identity problems. Small scale, large scale and multinational companies differ significantly with respect to dimensions of organizational climate i.e. motivational level (F=2.8956), decision-making process (F=5.4118) and warmth (F=5.0418) at 0.05 level of significance. Hence, the null hypothesis is rejected and alternative hypothesis is accepted. In another words, small scale, large scale and multinational companies have different motivational levels, decision-making process and warmth. H0 2(a): There is no significant difference between males and females with respect to Organizational climate in Information Technology industry. Table 4: The table showing the variables, size (N), mean, SD, t-value and its significance at 0.05 level between males and females. Male (n=282) Female (n=107) Variables Mean Std.Dev. Mean Std.Dev. t-value Signi. 232.897 32.476 1.007 Organizational climate 236.695 33.456 NS Dimensions 24.121 3.997 0.692 NS Performance Standards 24.432 3.944 36.060 6.858 35.271 7.037 1.006 NS Communication flow 14.063 3.260 13.972 3.035 0.252 NS Reward system 12.868 2.336 12.738 3.245 0.439 NS Responsibility 24.588 4.551 23.588 4.159 1.979 * Conflict resolution 15.644 4.955 -1.095 Organizational structure 15.202 2.861 NS 24.067 4.658 23.822 5.316 0.445 NS Motivational level 22.448 4.853 -0.024 NS Decision Making process 22.436 4.320 31.648 5.607 29.803 5.881 2.859 * Support system 17.095 3.630 16.972 4.407 0.282 NS Warmth 14.230 2.650 14.514 4.311 -0.782 NS Identity problems * Significant at 0.05 levels From Table 4, it is clearly observed that: Males and females do not differ significantly with respect to Organizational climate (t=1.0078, >0.05) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. In other words, the male and female Information Technology employees have similar organizational climate scores. Males and females do not differ significantly with respect to dimensions of organizational climate i.e. performance standards (t=0.6922, >0.05), communication flow (t=1.0063, >0.05), reward system (t=0.2528, >0.05), responsibility (t=0.4391, >0.05) organizational structure (t=-1.0954, >0.05) motivational level (t=0.4450, >0.05), decision-making process (t=-0.0245, >0.05), warmth (t=0.2825, >0.05) and identity 145

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problems (t=-0.7821, >0.05) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. In other words, the male and female Information Technology employees have similar performance standards, communication flow, reward system, responsibility, organizational structure, motivational level, decision-making process and warmth. Males and females differ significantly with respect to dimensions of organizational climate i.e. conflict resolution (t=1.9799, <0.05) and support system (t=2.8593, <0.05) at 0.05 level of significance. Hence, the null hypothesis is rejected and alternative hypothesis is accepted. In other words, the male and female Information Technology employees have different conflict resolution and support systems. H0 2(b): There is no significant difference between married and unmarried Information Technology employees with respect to organizational climate. Table 5: The table showing the variables, size (N), mean, SD, t-value and its significance at 0.05 level between married and unmarried IT employees Married (n=149) Unmarried (n=240) Variables Mean Std.Dev. Mean Std.Dev. t-value Signi. Organizational climate 231.4027 32.13 238.2875 33.62998 -1.9964 * Dimensions Performance Standards 24.0067 4.1954 24.5583 3.7934 -1.3383 NS Communication flow 35.1812 6.6057 36.2542 7.0709 -1.4916 NS Reward system 13.8121 2.9805 14.1792 3.3219 -1.1014 NS Responsibility 12.6644 2.6752 12.9375 2.5761 -1.0014 NS Conflict resolution 23.8993 4.2929 24.5708 4.5578 -1.4441 NS Organizational structure 15.2819 4.0522 15.3500 3.2268 -0.1832 NS Motivational level 23.3691 4.8939 24.3917 4.7784 -2.0328 * Decision making process 21.9933 4.2371 22.7167 4.5907 -1.5555 NS Support system 30.2282 5.6030 31.7083 5.7557 -2.4907 * Warmth 16.9060 4.1269 17.1583 3.6808 -0.6271 NS Identity problems 14.0604 3.2094 14.4625 3.1766 -1.2089 NS * Significant at 0.05 levels From Table 5, it is observed that: Married and unmarried Information Technology employees differ significantly with respect to organizational climate (t=-1.9964, <0.05) at 0.05 level of significance. Hence, the null hypothesis is rejected and alternative hypothesis is accepted. In other words, the married and unmarried Information Technology employees have different organizational climate scores. Married and unmarried Information Technology employees do not differ significantly with respect to dimensions of organizational climate i.e. performance standards (t=1.3383, >0.05), communication flow (t=-1.4916, >0.05), reward system (t=-1.1014, >0.05), responsibility (t=-1.0014, >0.05), conflict resolution (t=-1.4441, >0.05), organizational structure (t=-0.1832, >0.05), decision-making process (t=-1.5555, 146

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>0.05), warmth (t=-0.6271, >0.05) and identity problems (t=-1.2089, >0.05) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. In other words, the married and unmarried Information Technology employees have similar performance standards, communication flow, reward system, responsibility, conflict resolution, organizational structure, decision-making process, warmth and identity problems. Married and unmarried Information Technology employees differ significantly with respect to dimensions of organizational climate i.e. motivational level (t=-2.0328, <0.05) and support system (t=-2.4907, <0.05) at 0.05 level of significance. Hence, the null hypothesis is rejected and alternative hypothesis is accepted. In other words, the married and unmarried Information Technology employees have different motivational levels and support systems. H0 2(c): There is no significant difference between Information Technology employees with 1-6 years and 7 & more than 7 years of total experience with respect to organizational climate. Table-6: Result of t-test between Information Technology employees with 6 years and 7 & more than 7 years of total experience and organizational climate. 7 & more than 7 1-6 years (n=316) years (n=73) Variables Mean Std.Dev. Mean Std.Dev. t-value 0.3965 Signi. NS

Organizational climate 235.4209 32.7566

233.7123 34.9871

From table-6, it is observed that, Information Technology employees with 1-6 years and 7 & more than 7 years of total experience do not differ significantly with respect to organizational climate (t=0.3965) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. In other words, the Information Technology employees with 1-6 years and 7 & more than 7 years of total experience have similar organizational climate scores. H0 2(d): There is no significant difference between Information Technology employees with 1-3 years and 4 & more than 4 years of experience in current organization with respect to organizational climate.

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Table-7: Result of t-test between Information Technology employees with 1-3 years and 4 & more than 4 years of experience in current organization and organizational climate. 4 & more than 4 1-3 years (n=345) years (n=44) Variables Mean Std.Dev. Mean Std.Dev. t-value 1.0307 Signi. NS

Organizational climate 235.7188 34.1228

230.2500 23.9147

From table-7,It is observed that Information Technology employees with 1-3 years and 4 & more than 4 years of experience in current organization do not differ significantly with respect to organizational climate (t=1.0307) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. The Information Technology employees with 1-3 years and 4 & more than 4 years of experience in current organization have similar organizational climate scores. H0 2(e): There is no significant difference between designations with respect to organizational climate. Table-8: Result of ANOVA between designations of Information Technology employees with respect to organizational climate. Project Program Summar Leader/C mer/Anal Variables y Manager onsultant yst Other F-value Signi. Means Organizational climate 235.74 242.41 37.43 233.32 32.98 230.91 28.60 2.1248 NS

Std.Dev. 26.60

From table-8, it is observed that the Information Technology employees with different designations do not differ significantly with respect to organizational climate (F=2.1248) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. In other words, the employees with different designations have similar organizational climate scores.
H0 2(f): There is no significant difference between different education qualifications with respect to organizational climate.

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Table-9: Result of ANOVA between education qualifications of Information Technology employees with respect to organizational climate. M Tech/ B Tech/ Summar M.E./M. FVariables y S MCA B.E MBA Other value Signi. Means Organizational climate 229.39 233.1 235.97 239.56 235.25 6 35.11 32.63 27.73 38.87 0.4879 NS

Std.Dev. 23.28

From table-9, it is observed that Information Technology employees with different educational qualifications do not differ significantly with respect to organizational climate (F=0.4879) at 0.05 level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. The Information Technology employees with different education qualifications have similar organizational climate scores.

14. Implications
Since the organizational climate is very important for the Information Technology companies, they should strive to create a congenial organizational climate in their organizations for retention of the talent pool and maintenance of high productivity. There is a significant difference between married women and unmarried women with respect to organizational climate. It is evident from the mean scores that the unmarried women have better organizational climate. So the Information Technology companies have to take measures to motivate the married women employees so that they also contribute to the organizational climate. The managements can think of flexi timings with proper accountability to support married employees. The one way ANOVA shows significant difference among small scale, large scale and multinational Information Technology companies with respect to organizational climate. On comparing the mean scores it was found that the Indian large scale Information Technology companies have a better organizational climate than the small scale Information Technology companies. Smaller companies have to form strategies for improving the motivational levels and decision making processes to improve their organizational climate. By a right kind of rewarding, facilitating and creating participative working environment the employees can be motivated. The study shows a significant difference on support system for female employees, married employees and employees with more experience, compared to male employees, unmarried employees and employees with less experience. So the managements should initiate a strong support system for the female employees, married employees as well as the senior employees. The female employees have low conflict resolution compared to male employees. So the managements should provide training on the conflict resolution techniques for its female employees. They have to be empowered to withstand challenging and competitive environment. Leaders have to 149

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ensure perceived organizational justice and fairness at the workplace through proper remuneration and promotion.

15. Conclusion
A climate of teamwork is a key for effective creativity. One of the major problems faced by the Information Technology industry is high rate of attrition. It has been noticed that Information Technology companies with good organizational climate face less threat of attrition. The significant difference between the types of companies on organizational climate shows that the large- scale Indian Information Technology companies have a better mean score showing better organizational climate. Organizational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees. Organizational climate determines the work environment in which the employee feels satisfied or dissatisfied. Since satisfaction determines or influences the efficiency of the employees, the organizational climate is directly related to the effectiveness of an organization. The organizational climate can affect the human behavior in the organization through an impact on their performance, satisfaction and attitudes. A good organizational climate favors risk taking which will encourage employees to test and exchange unusual knowledge and ideas for the prosperity of the organization. An atmosphere of cooperation opens access among group members and creates individual motivation to exchange knowledge with group members and teamwork. Norms for openness and teamwork in knowledge-intensive firms facilitate disclosure of information and loyalty building. A climate of teamwork is key factor for effective creativity. Creativity is hurt when an organizations climate is characterized by lack of cooperation and results in lack of job satisfaction for the employees.

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