Effect of Organizational Climate on Employee Motivation and Organizational commitment in Pakistan
Research based Thesis

Institute of Business Management

Submitted to: Sir Ashraf Janjua Prepared by: Sameen Salman ID: 9929 Subject: Seminar in Economic Policy

Executive Summary

Organizations have become very different then what they were previously. The systems, processes have changed and an individual is well aware of his or her interests and demands. This creates a lot of challenges for the organization to continuously evolve their systems and keep their eyes peeled for upcoming changes and find out new ways to deal with these challenges .
Previously, organizational climate was just a concept whose application was limited but that's not the case today and this concept has evolved a lot and its importance has increased immensely. Now this concept is in a position to impact other factors on the job which make up the organization.
This paper researches on the possibility of organizational climate to have impacts on motivation and commitment of employees working in any organization. Sufficient literatures regarding its concepts have been pondered over in this paper. Data has been collected specifically from those individuals who have minimum one year experience in any corporate field in management of a company. Further analysis is carried out using questionnaire which comprises of questions aimed at identifying the importance of climate and its effects on motivation and commitment level of employees.
The findings of the questionnaires are further analyzed by help of different theories. The analysis came to discover that there is direct relationship between these three factors. Meaning that organizational climate directly influences motivation and commitment of employees. Negative organizational climate will have negative impacts on these two and positive organizational climate will have positive effects.
There were some limitations in the study which were delayed responses of the targeted audience because target respondents were all working professionals and were busy In their work and the other limitation being short time. However, the study was completed within the time frame developed and was successful in studying the cause it set out to.

TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc395836959 \h 1
Introduction to the topic: PAGEREF _Toc395836960 \h 3
Literature Review PAGEREF _Toc395836961 \h 4
Organizational Climate PAGEREF _Toc395836962 \h 4
Motivation PAGEREF _Toc395836963 \h 6
Motivation Theories: PAGEREF _Toc395836964 \h 7
Organizational Commitment PAGEREF _Toc395836965 \h 10
Significance of the study: PAGEREF _Toc395836966 \h 11
Hypothesis: PAGEREF _Toc395836967 \h 12
Variables: PAGEREF _Toc395836968 \h 12
Research Objectives PAGEREF _Toc395836969 \h 12
Research Questions PAGEREF _Toc395836970 \h 13
Research Design: PAGEREF _Toc395836971 \h 13
Methodology: PAGEREF _Toc395836972 \h 13
Data Collection Method: PAGEREF _Toc395836973 \h 13
Sources of Data PAGEREF _Toc395836974 \h 13
Sample Size PAGEREF _Toc395836975 \h 13
Statistical Tool PAGEREF _Toc395836976 \h 13
Research Findings PAGEREF _Toc395836977 \h 14
Analysis: PAGEREF _Toc395836978 \h 24
Conclusion and Recommendations: PAGEREF _Toc395836979 \h 25
Limitations: PAGEREF _Toc395836980 \h 26
Appendix: PAGEREF _Toc395836981 \h 27
Bibliography PAGEREF _Toc395836982 \h 27
Questionnaire used: PAGEREF _Toc395836983 \h 29

Introduction to the topic:
Organizations are more concerned about maintaining an effective organizational climate now because of fast growth and competition. It can be made a competitive advantage of the company.
There has been a lot of research on the topic of organizational climate and its impacts. The earliest researches can be tracked back to 1930s. Organizational climate is synonymous with corporate environment . It is the direction to measure the culture of an organization . It comprises of many components which shape up the environment both directly and indirectly influencing employee attitudes and behavior.
Researchers suggest that organizational culture is very closely related to organizational climate. Early researches such as Hawthorn studies were one of the pioneers in this topic. The main aim or objective of the research was to study the effect of environment or surroundings of employees and also to study the effect of different variables on their behaviors. Thus a concept of organizational climate came into being. CITATION KSe14 \l 1033 (K.Selvarajan, 2014)
Organization Climate has a rich history and implementations in both industrial and organizational set ups. Kurt Lewin was one the first researcher who studies about this concept and presented an argument that behavior is a product of an individual and the environment surrounding him or her. Organizational climate studies took the stage in late 1970s and the focus was to