ORGANIZATIONAL CLIMATE AND EMPLOYEE JOB SATISFACTION IN BRITISH AMERICAN TOBACCO, ABUJA

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ORGANIZATIONAL CLIMATE AND EMPLOYEE JOB SATISFACTION IN BRITISH AMERICAN TOBACCO, ABUJA

ABSTRACT

This study examined the impact of organizational climate on employee job satisfaction, using British American as a case study. Using Taro Yamani formulae, 70 sample size was drawn from the population of 85 employees of the organisation. The study adopted survey research method to administered (online) 38 structural questions (five-Likert scales) questionnaire to obtain the primary data from the sample.50 representing 71.42% of sample responded to the questionnaire. The regression statistical tool, with the aids of SPSS 23, was used to analyze the sourced data for the four formulated hypotheses. The study found a positive and significant relationship between Organisational values and job satisfaction in British American Tobacco, Abuja. More also, the study found a positive and significant relationship between workplace environment and job satisfaction in British American Tobacco, Abuja. Furthermore, the study found a negative but insignificant relationship between policies & procedures and job satisfaction in British American Tobacco, Abuja. The study also found a negative but insignificant relationship between organisation structure and job satisfaction in British American Tobacco, Abuja. The workplace environments are crucial to the employee, particular in the present era of COVID-19 as such management should accord it specific attention in other to create a job satisfaction environment.The management should put in place a programme that employees can key in for their personal development and advancement to keep alive elements of job satisfaction factor at all time for the employee.

 

Keywords: Organisational Values, Policies & Procedures, Organisational Structure, Workplace Environment, Job Satisfaction 

яCHAPTER ONEя

яINTRODUCTION

 

1.1 Backgroundяя to theя studyя

Since the days of the industrial revolution, there has been growing attention on the relationship between job satisfaction and organisational climate in human resources management. Employee attitude towards his/her organisation, due to the workplace enviroment, is a significant concern in workplace. Organisational climate is one of the most critical management challenges and it has been identified as a direct influencer of employee behaviour.

According to Aysen (2018), employee attitude is a function of personality traits as well as the environment in which they operate. Organisational climate is an important aspect for understanding the work-related behaviour and job satisfaction of employees. In simple terms, the organizational climate is the sum of the psychological factors, which are employee perceptions of their work environments (James et. al, 2008). However, it is not easy to define the climate within an organisation precisely because it is based on employee perceptions.

Generally, individual employee performance and commitment to work are found to have a direct relationship with overall organisational performance. As such, job satisfaction of the employee becomes an important element in the effort to increase the performance and commitment of the employee.

The organizational environment was described by Payne et al. (1971) as the way workers view their organisation and its objective. Organizational climate is, in the view of Churchill (1976), the sums of social factors which constituted the workplace environment for a worker.

According to Punia et al. (2014), every organisation has a distinctive climate, that reflects the nature of the management. For the individual member within the organisation, a set of attitudes and expectancies could create a specific environment in an organisation. Employees of the organisation, who are aware of rules and policies of an organisation and follow them, feel part of the organisation and become better performers. To Rizwan (2015), organisational culture is the collection of common principles, beliefs and values that governs how people behave within the organisation.

Aysen (2018) opined that if organizational culture is simply described as “how things are done there”, then the organizational climate can be described as “how it feels like working there”.

This has further clarified the organizational climate as an individual perception and feelings. More also, “how it feels like working there” (organizational climate) could have an effect on the fulfilment of those who work there. It is this fulfilment from “how it feels like working there” that is simply referred to as job satisfaction. According to Lyon & Ivancevich (2000), Job satisfaction is the level at which an employee feels fulfilled or unfulfilled with three aspects of jobs which are: autonomy, self-actualization and esteem. Job satisfaction can be described as the individual’s contentment with his/her job. Job satisfaction is the level to which someone feels positive or negative about the intrinsic and extrinsic characteristics of his/her work (Bhuian and Menguc, 2002). Job satisfaction is generally a function of the supposed relationship between what one wants from a work and what one experience. Job satisfaction is workers ‘ mental state or overall attitude about their employment and the employment facets such as work conditions, equal compensation, contact and working environment with other workers (Perçin, 2010).

The concept of organizational climate and its implications on job satisfaction was formally introduced by the human relationists in the late 1940s. Today, it has become a very useful metaphor for describing the social system in the workplace. Litwin and Stringer (1968), in attempt to understand employee and factors (such as job satisfaction) responsible for their performance, identified six factors that affect organizational climate in which worker operates to include organizational structure, rewards, risk and risk-taking, warmth and support, tolerance and, conflict. Schneider and Barlett (1968), identifying organizational climate dimensions, gave job satisfaction as one of the six dimensions of organizational climate. The other five are management support, management structure, concern for a new employee, inter-agency conflict and, agent dependence. Many authors, such as Weihui (2014), found a correlation between job satisfaction and employee performance. Since satisfaction influences the performance of an employee, we can say the organizational climate is directly related to the performance of the employee.

The need to improved productivity and have better management of employees drove the developed countries such as the US, UK and, Canada into the search for a better understanding of employee. The industrial revolution of 1760, on the account of Zia-ur and Bin (2013), wake the developed nations to the reality on the need to create a better organizational climate for job satisfaction and improve productivity.

However, some countries’ (developed economics) organizational climate has been adjourned to be more favorable to employee than others (such as Africa) by many researchers such

Martins and Von (2006), but all are facing more challenges than ever before in the 21st century. These challenges are not unique to any particular organisation or economy but affect all organizations regardless of their structure or size. Changes affecting organizations today are continuously questioning the organizational climate in particular (Monia and Martin, 2010). Organizations are continually trying to boost their organizational climate, among others, to make their workplace home for best hands and improve efficiency to succeed and outdo competitors.

Authors such as Rizwan et al ( 2015) opined that the organizational climate is becoming more critical than ever, so the organisation needs to ensure that all people who bring value to the organisation want to remain and continue to put their energies into their work for the good of the organisation. A key source of competitive advantage is an organisation that can build conditions that workers consider as healthy and, in which they can reach their maximum potential (Monia and Martin, 2010). Hence, the organizational climate can be seen as a key factor to run a successful organisation.

As such, this present study “The Impact of Organizational Climate on Employee Job Satisfaction A Case Study on British American Tobacco, Abuja” is an attempt to further examine the influence of organizational climate on job satisfaction using British American Tobacco, Abuja-Nigeria as a reference.

1.2 яяStatement of яproblem

Many recent studies have shown greater importance of organizational climate to job satisfaction. As such, both job satisfaction and organizational climate are crucial to the organisation success, particularly the private or profit orientation sector. The private sector is the most significant determinant of a country’s social and economic development, so every private-sector problem is the entire country’s issue. The private sector is the major key contributor to the alleviation of poverty, it delivers critical goods and services and, contributes, in tax to the nation purse (World bank, 2019). The problem that is related to employee’s job satisfaction is not just the problem of the employee alone, but also a challenge to the nation’s economy and security.

At a time like this that the world and Nigeria are facing pandemic (novel COVID-19), the challenges to create a high level of job satisfaction for employees has been further compounded. Both government and business owners are not only worried about the need to find a cure or vaccine for the pandemic but also on the need to keep the employees at work in other to keep the economy working.

The workplace has become unsafe for workers to operate, the need to provide hand sanitizer, hand washing materials and, other essential materials to contain the spread of COVID-19 has further put pressure on the management on the need to provide a conducive workplace for the employees. In some cases, the employees are looking up to the management to provide them with some of their daily basic need at the workplace, such as launch because the food vendor is virtually no longer operating in their offices, and other palliatives. The organisation has been forced to conduct business online with little or no existing internet infrastructure. New technology needs to be acquired, manpower train and a new policy adopted without jeopardizing the employees’ interest.

The demand that comes with COVID-19 has further put pressure on providing satisfaction to employees.  If the employee who helps companies to provide goods and services is not happy (or feel safe) and dedicated, he/she will eventually generate frustration and the organisation will also lose out in term of output. As such, this study is undertaken to examine the factors influencing job satisfaction in British American Tobacco, Nigeria, a private-owned company.  In the words of British American Tobacco Nigeria (2020), “We have had a presence in Nigeria for nearly a century. We take pride not only in how we run our business and in the relationships of trust we build with consumers, suppliers, distributors and partners, but also in our highquality brands and the way we select and retain our talented employees”. This is a demonstration that needs to keep the employee is important to British America tobacco. Job satisfaction is key for the company to be able to achieve this mission statement. As such, the key issue we have focused on in this study is the impact of the organizational climate on job satisfaction of British American Tobacco’s employees. The study analyzed variables in organizational climate, such as organizational value, policy and procedure, workplace environment and organizational structure as an independent variable and job satisfaction as dependent variables.

1.3 яResearch яQuestion

  1. To what extent does policies and procedures affect employee job satisfaction in British American Tobacco, Abuja.
  2. To what extent does organizational values affect employee job satisfaction in British American Tobacco, Abuja.
  • To what extent does workplace environment affect employee job satisfaction in British American Tobacco, Abuja.
  1. To what extent does organisation structure affect employee job satisfaction in British American Tobacco, Abuja.

1.4 яObjective ofя theя Studyя

The central objectives of this study are to look at the impact of organizational climate on employee job satisfaction. Specifically, the study is set out to:

  1. To identify the impact of policies and procedures on employee job satisfaction in British American Tobacco, Abuja.
  2. To analyse the impact of organisational values on employee job satisfaction in British American Tobacco, Abuja.
  • To highlight the impact of workplace environment on employee job performance in British American Tobacco, Abuja.
  1. To elicit the impact of organisation structure on employee job performance in British American Tobacco, Abuja.

 

 

1.5 яResearch яHypotheses

In other to provide answers to the research questions and achieve the set objective of the study, the following hypotheses (in null) were formulated.

HO1: There is no positive relationship between policies & procedures and job satisfaction in British American Tobacco, Abuja.

HO2: There is no positive relationship between organisational values and job satisfaction in British American Tobacco, Abuja.

HO3: There is no positive relationship between workplace environment and job satisfaction in British American Tobacco, Abuja.

HO4: There is no positive relationship between organisation structure and job satisfaction in British American Tobacco, Abuja.

1.6 яSignificance яof яthe яStudy

The importance of this study to the managers, government and, researchers cannot be overemphasis. In general, the study will be beneficial to the following organisations and people.

  1. Management: The management of organisations, particularly British American Tobacco Abuja, will find this study as an eye-opener to the effective way of achieving the aim of retaining the best hands in the company. With the role of organisational climate on the employee job satisfaction left bare, managers are better equipped on how to use it to boost employee productivity.
  2. Government: The policy and lawmakers are better armed in formulating or amending existing policy or law concerning the workplace. The findings and recommendations from this painstaking study provide insight into the challenges and solutions in making effective policy or law that will give job satisfaction to Nigeria workers and increase productivity.
  • Shareholders: Owners of businesses or potential investors are now better guided in investment decision making from the finding and recommendation of the study. They can now pinpoint organisations that create a favourable climate for job satisfaction of its employees in other to enhance productivity and ensure good returns on investment.
  1. Employee: The workers can monitor and appreciate the steps taken by management to create a better organisational climate. Once the employee is enlightened that management decision is to create a climate is for job satisfaction, industrial disharmony will be minimized.
  2. Academia: Researchers and students who are carrying out study in human resources management will find in the study a companion. It will provide them with fore-knowledge on the subject matter and guild them in their quest.

1.7 яJustification яof яthe яStudy

The challenges of the 21st century, particularly in the management of human resources, have made it difficult for a man to be sure if 21st-century technology and its globalization is a blessing. While globalization and technology have made it possible for a business to operate outside its immediate environment, it has also exposed it to stiff competitors (Rizwan et al, 2015). The competition face by the organisation today is not only limited to selling of its goods or and services but also retaining its best hands.  As Monia and Martin (2010) observed, a key source of competitive advantage is an organisation that can build conditions that workers consider as healthy and, in which they can reach their maximum potential. As such, the need to bring management to terms on the effect of organisational climate is never be needed as today.

So also, the current COVID-19 has made the workplace unsafe for employees particularly when such job demand coming in contact with a cross-section of people. With the pandemic, the workplace environment and, organisation policy (variables of organizational climate) need to tempered if the workplace must be safe for the employees. As such, there is a need for stakeholders to bring abreast on the impact organizational climate has on the job satisfaction of the employees to ensure care in tempering with variables of organizational climate.

1.8 яScope ofя theя Studyя

The study is limited to examining the impact of organizational climate on employee job satisfaction in British American Tobacco. Abuja is the area of the study as such, the British American tobacco employees chose for the administration of the questionnaire was the staff of the Abuja branch. The need to conclude the study within a very short time, within the lean budget available for the study and, without travelling far in the era of COVID-19 to get the contact (email and WhatsApp) staff, informed the choice of the Abuja branch because of its proximity to the school. The questionnaire was administered online using Google form (https://gsuite.google.com/) (with the link sent to respondent email and WhatsApp contact), in other to enable the questionnaire to reach all the target sample as most of the staff now work from home under COVID-19 guideline. The sample was drawn from the employees of the British American Tobacco Abuja using random sampling techniques and a structural questionnaire administered on them to ascertain the organizational climate of the company and their level of job satisfaction.

1.9 яDefinition ofя Termsя

Organizational climate: Organizational climate is the perceived features of an organisation and its subsystems, showing how the company relates to its workers and the problems that concern them.

Job satisfaction: Job satisfaction is the level to which someone feels positive or negative about the intrinsic and extrinsic characteristics of his/her work

Employee Commitment: Employee Commitment is an employee’s psychological bond with an organisation, the strength of which depends his/her level of participation, and belief in the organisation’s values.

Management: Management is the process of planning, controlling, organizing, leading an organisation and its employees.

ORGANIZATIONAL CLIMATE AND EMPLOYEE JOB SATISFACTION IN BRITISH AMERICAN TOBACCO, ABUJA

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