Author:Rao, Gudivada Venkat


Human Resource Practices are strategic in nature and form the critical part in the management of the organization. The Harvard Model of HR categories the components of Human Resources Management as work flow, reward flow, relations, strategy and human resources development. These factors build-up the human resource environment and is influenced by the external economic environment and ultimately the HRM culture. The strategic business interests of the Organization are integrated with HRM Objectives in the emerging business environment.

The organizational climate is a topic of interest for policy makers in the organization in the post-globalization era. The availability of human resources with excellence is an influencing factor for the relocation of the services and manufacture base. Indian economic environment post globalization has undergone changes and refined the micro-macro influencers. The Indian Government pursued liberalization policy and the public sector was put to severe testing conditions. The Government of India has initiated measures to revamp the public sector to face competition. In India, the policy of disinvestment, privatization, infusing of funds and restructuring were implemented as a business strategy for the viable business. The public sector is required to compete with private sector. The culture of bureaucratic practices in the public sector before liberalization was being replaced with a culture of vibrancy and learning. This phase of change has seen some public sector enterprises becoming business leaders or perishing. The mixed economic system has seen the growth of the public sector in India under the protection of Government.

The term Perceived Performance is an experience of work as perceived by the individual and is subjective (Udai Pareek, 2004). The perceived performance was measured by Beer (1979) and is the mathematical division between actuality (actual work) and potentiality (best possible work without any constraints).

The excellence of the people is a direct outcome of the Organizational Climate (Pareek, 2004).There has been a long-standing interest in the study of organizational climate among organizational researchers. Jyoti (2013) argues there is a great deal of interest in finding the relationship of factors of the behavior of especially job performance, job satisfaction and leadership on account of its contribution to the organizational climate. The disruption to Organizational Climate on the restructuring of business or Organization is bound to impact the behavior profile of the Organization. The measure of Organization Climate will help in leveraging the benefits of restructuring, but a method, quantity, factors of Organization Climate and impact on employee behavior is of interest for researcher and practitioner.


The organizational climate is a measure of identity and a competitive factor for an organization (Davies, 1975). The Organizational Climate is the collective personality (Das, 2009) and creates the brand image for the organization. The importance of organizational climate in the present global context is its ability to provide a competitive edge through its intangible assets and human resources at the bottom of the pyramid (Prahalad, 2004). The Human Resources Practices and Procedures nurture the culture of an organization and are not different from climate (Pritchard and Karasick, 1973). Therefore, the corporate and business strategy is oriented by the organization to create right climate in the organization. According to Rao, Pareek and Pestonjee (1981), the concept is built on three layers (i) values, ethos (ii) Organizational Culture (iii) Organizational Climate. The ethos is habituated and embedded values which create the culture, the enabling culture manifests in Organizational Climate. The individual perceptions are psychological climate and summated perceptions of the people are Organization Climate (Brown and Leigh, 1996; Neal and Griffin, 1999). The shared perception of culture is the climate (Pareek, 2004). Birdie and Jain (2016) find no correlation between Organizational climate and trust in their studies on virtual workers.

Randhawa and Kaur (2015) indicated a strong positive correlation between organizational climate and Organizational Citizenship Behavior in a manufacturing firm. The organizational climate explains the variations that occur in job satisfaction (Hashemi, Sadeqi, 2016) with major dimensions as Leadership and Performance Evaluation (Alajm, 2016) and perceived behavior of followership (Jin, McDonald, Park, 2016). Hartog, Boon, Verburg, Croon (2012) has tested perceived human resource management with multi source and at multilevel and concludes employee perceptions play mediating role in its relationship with the perceived unit and individual performance and satisfaction. However, Zacharoula, Karapistoli and Economides (2016) find no relationship between actual performance and perceived performance under experimental conditions. Jiang, Hu, Liu and Lepak (2017) in their empirical presentation on perceived HRM practices in two similar organizations find the relationship between manager-perceived and employee-perceived HR practices was not influenced by demographic dissimilarities.

The manifestations of organizational climate are Job Satisfaction and Perceived Performance. Some studies on service climate and employee satisfaction suggest significant positive relation and help in building trust (Chathoth, Mak, Jauhari and Manaktola, 2007). The satisfaction with job creates a climate for furthering the performance and success. The Job satisfaction is important for any organization, the higher satisfaction propel the organization to achieve higher competence. Devaki Devi & Venkat Rao (2012) made a study in public and private sector organizations with a concluding evidence of significant impact of organizational climate, work design on performance and job satisfaction. The Job satisfaction is inherent to the organizational climate and varies with value. Further, Actual--Expected variation influences Job satisfaction.

The difference in Organizational Climate and its impact in normal Organization and Restructured Organization is a research gap to be fulfilled.


The study was conducted in a public sector shipbuilding unit in Visakhapatnam using descriptive research design. This unit was restructured by the Government through a change in the focus area, objectives and financial structuring. Hindustan Shipyard Limited was formed in 1948 by Walchand and was nationalized in 1962. The company was in deep red post...

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