A

Synopsis
of
Project Entitled

Organizational Climate with special

reference to The SUPREME
INDUSTRIES Ltd.,
Unit No. III, At/Post –
Gadegaon,
Tal – Jamner, Dist - Jalgaon
(Year 2006-08)
Submitted for the partial fulfillment of MBA(Human
Resource Management) to Yashwantrao Chavan
Maharashtra Open University, Nasik.

By – Nehete Suhas Jayant

PRN No. : RP0901888
18, Aradhana Colony, Jalgaon - 425002
Under the Guidance of – Prof. R. V. Deshmukh
NUTAN INSTITUTE OF MANAGEMENT DEVELOPMENT
AND RESEARCH, JALGAON
April 2009

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Introduction, Importance and significance of the study
Role of Organizational Climate and Leadership for a
Company:

The concept of organizational climate has been assessed

by various authors, of which many of them published their own
definition of organisational climate. For those interested in
understanding organizational climate, it is important to make
some distinctions. First, climate and culture are both important
aspects of the overall context, environment or situation. Culture
tends to be shared by all or most members of some social group;
is something that older members usually try to pass on to younger
members; shapes behavior and structures perceptions of the
world. Cultures are often studied and understood at a national
level, such as the American or French culture. Culture includes
deeply held values, beliefs and assumptions, symbols, heroes
and heroines, and rituals. Culture can be examined at an
organizational level as well. The main distinction between
organizational and national culture is that people can choose to
join a place of work, but are usually born into a national culture.

Organizational cultures are generally deep and stable.

Climate, on the other hand, is often defined as the recurring

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patterns of behavior, attitudes and feelings that characterize life in
the organization (Isaksen & Ekvall, 2007). Although culture and
climate are related, climate often proves easier to assess and
change. At an individual level of analysis the concept is called
individual psychological climate. These individual perceptions are
often aggregated or collected for analysis and understanding at
the team or group level, or the divisional, functional, or overall
organizational level.

Organisational climate, however, proves to be hard to define.

There are two especially intractable and related difficulties: how to
define climate and how to measure it effectively on different levels
of analysis. Furthermore there are several approaches to the
concept of climate, of which two in particular have received
substantial patronage: the cognitive schema approach and the
shared perception approach.

The first approach regards the concept of climate as an

individual perception and cognitive representation of the work
environment. From this perspective climate assessments should
be conducted at an individual level.

The second approach emphasizes the importance of shared

perceptions as underpinning the notion of climate (Anderson, &
West, 1998; Mathisen & Einarsen 2004). Reichers and Schneider

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(1990) define organisational climate as "the shared perception of
the way things are around here" (p.22). It is important to realize
that from these two approaches, there is no “best” approach and
they actually have a great deal of overlap.

Organisational Climate (sometimes known as Corporate

Climate) is the process of quantifying the “culture” of an
organisation.

Researchers Hart, Griffin, Wearing & Cooper (1996) have

pursued the shared perception model of Organisational Climate.
Their model identifies the variables which moderate an
organisation’s ability to mobilise its workforce in order to achieve
business goals and maximise performance.

One of the major users of this model includes many

departments of the Queensland State Government (Australia).
These departments use this model of Climate to survey staff to
identify and measure those aspects of a workplace which impact
on: stress, morale, quality of worklife, wellbeing, employee
engagement, absenteeism/presenteeism, turnover and
performance.

While an organisation and its leaders cannot remove every

stressor in the daily life of its employees, Organisational Climate

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studies have identified a number of behaviours of leaders which
have a significant impact on stress and morale. For instance, one
Queensland state government employer, Queensland Transport
has found that increasing managers’ awareness of these
behaviours has improved quality of work life employees and the
ability of QT’s to deliver its organisational goals.

Important features of Organizational Climate:

• Managers administer; leaders innovate.
• Managers ask how and when; leaders ask what and why.
• Managers focus on systems; leaders focus on people.
• Managers do things right; leaders do the right things.
• Managers maintain; leaders develop.
• Managers rely on control; leaders inspire trust.
• Managers have short-term perspective; leaders have long-
term perspective.
• Managers accept the status-quo; leaders challenge the
status-quo.
• Managers have an eye on the bottom line; leaders have an
eye on the horizon.
• Managers imitate; leaders originate.
• Managers emulate the classic good soldier; leaders are their
own person.
• Managers copy; leaders show originality.

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Rationale:

The promotion of the concept of future-directed superlative

individual leadership as vital for the success and growth of
contemporary organizations is based on the following four
assumptions regarding it:

1. Rarity; it requires such surpassing abilities that, for all its

presumptive universal attainability, it is rarely attained.

2. The need for unrestrained expression; in order to realize its

great promise it must be freed of the bonds used to direct
and control ordinary people. Moreover, it cannot be
subjected to the oversight of those who, by definition, are
unable to comprehend it.

3. Exclusivity; a fundamental immobility between leadership

and follower ship classes. This reinforces the freedom from
constraints extended to the one, and the concomitant
imposition of them on the other – the latter is the mechanism
for the expression of the former’s unique abilities – both
creatively free leaders and followers submissively bound to
them are indispensable to the leadership process.

4. An emotional bond between leaders and followers; this

arises from the felt need of the latter for the former, whether
caused independently by the contingencies of the situation

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 perceived by the latter, or by the persuasive narration of
those by the former. It both gives rise to the dynamics from
which spring individual leadership, and reinforces the
mechanics that keep it operating.

Objectives:
Objectives of the proposed project work are –
1. To study the concept of Organizational Climate theoretically.
2. To study the impact of Organizational Climate in a large
scale organization.
3. To study the industry, THE SUPREME INDUSTRIES LTD.
(SIL), At/Post – Gadegaon, Tal – Jamner, Dist – Jalgaon in
respect of Market Analysis.
4. To analysis the impact of Organizational Climate on
a. Management
b. Working System
c. Planning and development of THE SUPREME
INDUSTRIES LTD.(SIL), At/Post – Gadegaon, Tal –
Jamner, Dist – Jalgaon
5. To planning and development of next Leadership and
Organizational Climate of THE SUPREME INDUSTRIES
LTD.(SIL), At/Post – Gadegaon, Tal – Jamner, Dist –
Jalgaon

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 6. To analyze the problems of Organizational Climate and
Leadership in THE SUPREME INDUSTRIES LTD.(SIL),
At/Post – Gadegaon, Tal – Jamner, Dist – Jalgaon
7. To suggest measures to improve status in THE SUPREME
INDUSTRIES LTD.(SIL), At/Post – Gadegaon, Tal – Jamner,
Dist – Jalgaon
8. To suggest appropriate Organizational Climate and
Leadership system for THE SUPREME INDUSTRIES LTD.
(SIL), At/Post – Gadegaon, Tal – Jamner, Dist – Jalgaon

Hypotheses:
Management student has formulated the following hypotheses –
1. Organizational Climate and Leadership is the phenomenon
in an organization.
2. Organizational Climate and Leadership improves the
production status of an organization.
3. Organizational Climate and Leadership creates efficiency,
accuracy, quality and responsibility among the staff in an
organization.
4. Organizational Climate and Leadership helps to right
decision-making capacity at management level to improve
economic status of an organization.

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 5. Organizational Climate and Leadership leads to increase
profitability of an organization.

Research Methodology:
The proposed project work will be based on THE SUPREME
INDUSTRIES LTD.(SIL), At/Post – Gadegaon, Tal – Jamner, Dist
– Jalgaon
The period of proposed project work will be of two years
2006-2008.
The proposed project work will be on primary data and
secondary data:
Primary Data:
The student would collect primary data from the
management and officers, staff of the organization with the help of
questionnaire and interview technique, from 5 employees.
Secondary Data:
Secondary data would be collected by the student from the
performance reports of the employees of THE SUPREME
INDUSTRIES LTD.(SIL), At/Post – Gadegaon, Tal – Jamner, Dist
– Jalgaon
The collected data would be analyzed with the help of some
statistical tools. And results will be drawn accordingly.

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Expected Contribution:
This proposed project work would be useful for the
development of an large scale organization. It will increase
profitability of organization, it will helps to the research doing
persons, manager of an organization is future.
Chapterization:
1. Introduction
2. Organizational Climate : Meaning, Need, Impact; An
Theoretical Analysis
3. THE SUPREME INDUSTRIES LTD.(SIL) : An Overview
4. Need of Organizational Climate and Leadership in SIL.
5. Problems of Organizational Climate in SIL.
6. Measures to increase Organizational Climate in SIL.
7. Observations, Conclusion and Suggestions
Bibliography

Student Guide
[Nehete Suhas Jayant] [Prof. R. V. Deshmukh]
Place : Jalgaon
Date:

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