Investigating the Relationship between Organizational Environment and Productivity of Organizational Managers

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1 Euro-Asian Journal of Economics and Finance ISSN: Volume: 1, Issue: 1 (October 2013), Pages: Academy of Business & Scientific Research Investigating the Relationship between Organizational Environment and Organizational Managers Hassan Zirak 1, Fariba Azizzadeh 2 *, Hamidreza Bahrami 3, and Rasool Sarihi Sfestani 4 1. M.A of Public Administration, Islamic Azad University, Department of Management, Mahabad, Iran. 2, 3&4. Islamic Azad University, Department of Management, Science and Research Branch, Isfahan, Iran. According to increasing shortage of resources and increasing competition in global market, productivity as a work culture is a necessity for society in order to it can develop in economic, social and political aspects. Productivity in organizations can be a function of various variables among them organizational climate plays a significant role as a value system which specifies the procedures for conducting activities and the acceptable behaviors. Thus aim of present study is to investigate the relationship between organizational climate and also some dimensions of it such as organizational structure, organizational responsibility, organizational identity and organizational support with organizational productivity among top of various organizations in West Azerbaijan province. Totally 150 questionnaires were distributed to statistical population and among them data collected from 115 usable questionnaires were exploited for testing research hypotheses. With respect to normality of data after Kolmogorov Smirnov test, Pearson correlation coefficient was used to determine type and intensity of relationships between variables. Results show a direct relationship between organizational climate and its three dimensions i.e. organizational responsibility, identity and support with organizational productivity. Thus it is recommended that by applying efficient managerial mechanisms and creating an appropriate organizational climate with respect to dimensions of organizational responsibility, identity and support serious measures are taken to improve productivity in organizations of West Azerbaijan province. Keywords: Organizational Productivity, Organizational Structure, Organizational Responsibility, Organizational Identity, Organizational Support INTRODUCTION Because of the increase and growth of productivity is one of the most basic ways to achieve greater production and subsequently provide welfare and well-being of people in communities, recognition of factors that cause increasing efficiency is one of the major ideals of researchers and scholars in this context. Employee s feel about work environment, is what that makes an ideal work environment from organization. Productivity in organizations can be a function of different variables, in which the enterprise space has an essential role. Institutional space point to a set of measurable properties in work environment, that perceptible directly or indirectly by whom work and live in that environment and affect on their perception and motivation. Organizations need different program and tools to make and increase employee motivation, that this study looking for the question *Corresponding author: Fariba Azizzadeh, Islamic Azad University, Department of Management, Science and Research Branch, Isfahan, Iran 51

2 Organizational environment and productivity Hassan Zirak & Fariba Azizzadeh of Is there a significant relationship between organization climate and productivity of West Azerbaijan office? LITERATURE REVIEW Productivity increase when the corporate culture shaped for achieving priority and goals of the organization and sometimes also changed. Studies show that organizational culture is a key for improving productivity and has played a decisive role in the organizational success or failure [7]. Organizational culture and productivity are closely related to each other [6]. According to French and counterpart (1986) the best organizational space can t offer based on existing theories and the results of researches. The research has been carried out, the target population includes the high school administrations in Tehran and its results are: 1- There is a relationship between organizational performance and productivity of school administrations 2- The service productivity of school are associated with triple levels of organizational space and based on Scheffe test include: a) Service productivity of school administrators in vigorous enterprise space 3 is more than service productivity of school administrators in medium enterprise space 2. b) Service productivity of school administrators in medium enterprise space 2 more than service productivity of school administrators in poor enterprise space 1. Thus the service productivity of school administrators has direct relation with triple levels of organizational space in school environments [5]. In the proposed model, the six dimensions of identity, friendship, remuneration, conflict, and support and danger adoption that the nine dimensions of organizational climate and effective in raising the level of productivity, was approved [10, 12]. This study was done under the title of leadership style and organizational climate with service productivity of eighth region of Islamic Azad University. The sample size was calculated using the formula with minimum required sample of 200 and 600 employees. The validity of test is The results of this study, addressed below: 1- There is a relationship between organizational climate and service productivity of the Islamic Azad University. 2- In the suggested model, dimensions of structure, rewards, friendship and Criteria, are among nine dimensions of organizational climate dimensions that can be a good predictors for the service efficiency of Islamic Azad University [11]. Litween and Stringer (1968) after carrying out extensive researches have shown that the leadership style is of factors that affecting organizational climate. They perceived that organizational climate refers to the perception of its members from official system, non-formal method of and other important factors, which this understanding affects on attitudes, beliefs, values and motivations of individuals in a particular environment [8]. French (1986) knows the survival and success of organizations depends on management s attention to external environment factors, internal environment (organizational) and efficiency (results). These factors have impact upon each other. For example an organization affects on legal employment laws (an external factor) by strengthening and supporting of educational programs [5]. Taheri, Shahnam (2006), points to issues such as: productivity concept, the need for comprehensive utilization management, measuring productivity and the ways of efficiency improvement as the most important factors influencing productivity namely include human resource, rations and indices management, principles and benefits of comprehensive utilization management and its several applied theorem [15]. MATERIALS AND METHODS This research is a practical. In a variety of categories, current research is correlation one. In 52

3 Euro-Asian Journal of Economics and Finance ISSN: Volume: 1, Issue: 1, Pages: this study, addressing to the rate of change of one or more factors caused by changes in one or more other factors by the correlation coefficients. This research also classified according to the method of data collection as descriptive one. In this study, all organizational used for research purposes and to meet this propose, the population of Azerbaijan offices were selected. Since statistical societies usually have a large size and geographic extent and researchers can t refer to all of them, so inevitably sufficed to the selected sample and generalize it s results to society [4].Sample size estimation was performed according to the following formula: In this formula the most important parameter that needs to be estimated is S². To calculate S², 25 questionnaires were distributed and its variance was calculated equal to Error level is 5%, so the confidence level will be 95%. Therefore the value of and d considered according to the level of error as 1.96 and 0.05, respectively. Thus, based on the numerical value from formula, a sample size is 112, however, to consider the number of questionnaires not returned or incorrectly filled, the distributed questionnaire was 150 that of which 115 one was used. According to the main society that involved all offices of Azerbaijan, sampling for basic and middle were carried out randomly. In this study a questionnaire consisting of 54 questions was used, which is consisted with a questionnaire designed by Moghimi (2011) [9] and Saatchi et al. (2011) [14]. Table 1 shows the details of the research questionnaires. In this study, the qualitative variables of ordinal scale are used. In this study the five likert scale is used for determining desire variables. Respondents selected the measure between two extreme ones such as agree- disagree, love- hate and acceptance- rejection, based on his attitude. In this study, Cronbach s alpha was used to calculate the reliability that calculated by SPSS software. For this purpose a prototype of questionnaire contains 36 questions were pretests by basic and median, and then the reliability was calculated by obtained data from questionnaire by SPSS software and Cronbach s alpha. Complete results for calculate the obtained coefficient of the Cronbach s alpha was also listed (Table 2). Minimum reliability coefficient for Inventory research is 0/7, and be noted that the current obtained coefficient is higher. In order to describe the data, data analysis and Test hypotheses, descriptive statistics and inferential statistics were used, respectively. Finally, the correlation coefficient was used for cleaner and identical analysis and making decision for whether there is a significant relationship between two variables. According to the normal or non-normal data, the Pearson correlation coefficient or Spearman s method respectively will used for determining the type and extent of the relationship between variables. All data analyzed using computer and by Excel and SPSS software in two sections of descriptive and inferential statistics. RESEARCH HYPOTHESES The Main Hypothesis of the Research - There is a significant relationship between current organizational climate and productivity of Sub-hypothesis (a) There is a significant relationship between Organizational Structure Dimensions and productivity of. (b) There is a significant relationship between corporate responsibility and organization productivity. (c) There is a significant relationship between corporate identities and organization productivity. (d) There is a significant relationship between organizational supports and organization productivity. DATA ANALYSIS 39.1% of the studied population consists of individuals aged between 41 to 50 and the most frequency dedicated to them. However the less of them under 30 years (11.3%), 37.4% from age 53

4 Organizational environment and productivity Hassan Zirak & Fariba Azizzadeh group of that in the short distance from age group of Also 12.2% is higher than 50 years old. 93.9% of subjects were male and 6.1% were women. 46.1% of studied population was composed of individuals who have license and the most frequency dedicate to them. It is also the less for subjects with Ph.D. degree (7.8%) and 14.8% in Diploma and 31.3% had a master s degree. 40% of studied population consisted of people who had work experience between 5-15 years. It is also that the less frequency for whom had lower than 5 years work experience (7%). 29.6% have between 16 and 25 and 23.5% have more than 25 years work experience. The Kolmogorov-Smirnove test was used to examine the normality of the data. Here we tests for all data and each of the variables that it s results shown in table 3. This test is done at 99% confidence level. According the results in table-1, as can be seen, the significant level of all research variables greater of data normality and the methods of parametric and Pearson correlation will be used to study hypothesis. Test Hypothesis Main Hypothesis There is a significant relationship between organizational climate and productivity of in West Azerbaijan offices. H0: There is no relationship between organizational climate and productivity of in West Azerbaijan offices. H1: There is a relationship between organizational climate and productivity of in West Azerbaijan offices. According the SPSS output in Table 4, the correlation of observed between two variables, which indicate a relatively strong positive correlation. However, because the significance correlation (0.000) is also lower than the coefficient of error (0.01), so the null hypothesis rejected and research hypothesis accepted with 99% confidence coefficient and concluded that there is a significant relationship between organizational climate and productivity of West Azerbaijan office. First Sub-hypothesis There is a significant relationship between Organizational Structure Dimensions and pro ductivity of in West Azerbaijan office. H0: There is no relationship between Organizational Structure Dimensions and productivity of in West Azerbaijan offices. H1: There is a significant relationship between Organizational Structure Dimensions and productivity of in West Azerbaijan offices. From table 5 observed that the correlation between two variables is 0.032, which shows almost no correlation. On the other hand, because the significance level of correlation (0.737) is greater than coefficient of error (0.01), so the null hypothesis is not rejected and research hypothesis reject by the error level of 1%. Also conclude that there is no relationship between Organizational Structure Dimensions and productivity of in West Azerbaijan offices. Second Sub-hypothesis There is a significant relationship between corporate responsibility and organization productivity in West Azerbaijan offices. H0: There no relationship between corporate responsibility and organization productivity in West Azerbaijan offices. H1: There is a significant relationship between corporate responsibility and organization productivity in West Azerbaijan offices. In table 6, the observed correlation between two variables is that show relatively poor correlation. However, because the significance correlation (0.000) is also lower than the coefficient of error (0.01), so the null hypothesis rejected and research hypothesis accepted with 99% confidence coefficient and concluded that there is a significant relationship between corporate responsibility and organization productivity of West Azerbaijan office. Third sub-hypothesis 54

5 Euro-Asian Journal of Economics and Finance ISSN: Volume: 1, Issue: 1, Pages: There is a significant relationship between corporate identities and organization productivity in West Azerbaijan offices. H0: There is no relationship between corporate identities and organization productivity in West Azerbaijan offices. H1: There is a significant relationship between corporate identities and organization productivity in West Azerbaijan offices. In table 7, the observed correlation between two variables is that show relatively poor positive correlation. However, because the significance correlation (0.000) is also lower than the coefficient of error (0.01), so the null hypothesis rejected and research hypothesis accepted with 99% confidence coefficient and concluded that there is a significant relationship between corporate identities and organization productivity in West Azerbaijan offices. There is a significant relationship between organizational supports and organization productivity in West Azerbaijan offices. H0: There is no relationship between organizational supports and organization productivity in West Azerbaijan offices. H1: There is a significant relationship between organizational supports and organization productivity in West Azerbaijan offices. According to the SPSS output results in table 8, also seen that the correlation between two variables is that show strong positive correlation. However, because the significance correlation (0.000) is also lower than the coefficient of error (0.01), so the null hypothesis rejected and research hypothesis accepted with 99% confidence coefficient and concluded that there is a significant relationship between organizational supports and productivity in West Azerbaijan offices. Finally, Table 9 summarizes the results of testing hypotheses. CONCLUSIONS In this study with the title of Study the relationship of organizational environment band productivity of organizational in a offices of West Azerbaijan State examine the relationship between organizational climate and productivity of, in this regard, relationship between four indexes that proposed by Litwin and French (1986) as organizational structure, corporate responsibility, corporate identity and organizational support with productivity of were studied [8]. Productivity in organizations could be a function of several variables, that among them, organizational climate has a major role [3]. Litwin and Stringer (1968) believe that organizational climate refers to perceptions of organization members from formal system, manager s nonformal method and other important environment factors, that this perception affects one s attitudes, ideas, values and motivation in specific work environment that accordingly nine factors as follow were introduced to organizational environment: 1- Responsibility: people feel that they are in own charge, rather than their all decisions reviewed by supervisors. 2- Reward: people s feel about rewarding to good performance, pay equity and success policies. 3- Risking: feel challenged at work and in the organization, whether the accounted risking was encouraged or the safest way to work is selected? 4- Friendship: a feeling of friendship and kindred in work environment and development of non-official and friendship groups 5- Support: feel assistance and cooperation between and employees and emphasis of supporting. 6- Criteria: count important of goals and performance measures, emphasis on doing the task rightly, the challenge of individual and group goals. 7- Inconsistent: and employees willingness to listen different ideas and theories, emphasis on solving inconsistency instead of turning off or ignoring them. 55

6 Organizational environment and productivity Hassan Zirak & Fariba Azizzadeh 8- Identity: a sense of a person about attachment to the company and is a valuable member of a working group [8]. In this study, the relationship between four indexes between organizational environment indexes, that has been discussed above were considered with work productivity of. Finally we looking for whether are there a significant relationship between organizational climate and productivity of in offices of West Azerbaijan? That by finding appropriate response could reinforce productivity of and enhanced. According to the survey results there is a significant relationship between organizational climate and productivity of. Thus, compliance with organizational climate and productivity of and respect to the framework prevailed of organization climate, productivity will increase and vice versa, productivity of declined by decreasing productivity. Thus, making a suitable organizational climate can affective in increasing its productivity. These results are in accordance with Baumgartner (1988) [2]; Litwin and Stringer (1968) [8]; Vaughan (1983) [16]; Abdullah (1992) [1] and Nazem (1999, 2001 and 2004) [11, 12, 13]. Also there is a significant relationship between dimensions of organizational structure and productivity of in offices of West Azerbaijan. There is a significant relationship between organizational identity and productivity of in offices of West Azerbaijan. Also there is a significant relationship between organizational support and productivity of in offices of West Azerbaijan. The main limitation of this study was the lack of appropriate management and collaboration of with researchers in completing research questionnaire. In This study four indexes considered from all indexes of organizational climate that could obtain other results by considering other ones. Since there is a relationship between organization climate with productivity of basic and middle, suggested that with implementing efficient management and making suitable organizational climate and specially pay attention to the factors of responsibility, identity and support, serious efforts will done for improving productivity in offices of West Azerbaijan. To reach far and near goals of an organization, from competent and responsible professional directors expected that considered affective variables in this regard as organizational health, organizational climate, making culture and control stand and making creative productive organization by using principals of management and human relations and tier in regard to productivity and efficiency in human resources and organizational effectiveness. Recommended that also emphasis on individual judgment and do what they think is right. Management was outlined to their subordinates and makes them responsible for their works. REFERENCES 1. Abdullah, Mahlok, (1992) Organizational culture/ the key to excellence, Malaysian Success Stories. Better quality of work life through Productivity, APO. Abstract, PhD, Virginia Commonwealth University. 2. Baumgardner, John Elizabeth, (1988), perceptions of nursing and faculty and administrators about organizational climate and its effect on research productivity in baccalaureate and higher degree programs of nursing education, Dissertation abstract, PHD, the University of Akron. 3. Boulden, George, P. (1992). Productivity linked to Profitability the basis for improve worklife. Betler quality of work life throug productivity, (Asian productivity Organizations). 4. Farhangi, Ali Akbar & Safarzadeh, Hosein, (2008) "research methods in the human science (with a view on the dissertation writing)" Pyam-e-Pouya publishing, Tehran, second edition. 5. French, Wendell L. (1986) Human resources management. Houghton mifflin company. 6. Kashani, Majid & Khanyfar, Hussein, (2011) The impact of organizational 56

7 Euro-Asian Journal of Economics and Finance ISSN: Volume: 1, Issue: 1, Pages: culture on productivity, thesis. School year of Kazemi, Syyed Abbas, (2010) Utilization and analysis in organizations, Samt publisher. 8. Litwin, George H., & Stringer, Robert A., (1968) Motivation and organizational climate. Harvard University. 9. Moghimi, Mohammad, (2011) "Organization and Management Research Approach". Termeh Publications, Tehran, 7 th Edition. 10. Nazem, Fattah, (1987), productivity management (organizational climate and productivity), Islamic Azad University Research Publications (Roudehen) 11. Nazem, Fattah, (1999) "study the Relationship between leadership style and organizational climate and productivity of Islamic Azd university to provide appropriate management model", research project, Roudehen Islamic Azad University. 12. Nazem, Fattah, (2001) study the Relationship between leadership style and organizational climate and productivity of Islamic Azad university to provide appropriate management model," PhD thesis of Department of Management, Science and Research Islamic Azad University. 13. Nazem, Fattah, (2004) "Study the Relationship between leadership style and organizational climate and productivity management services of petrochemical industry to provide appropriate management model", research project, the National Petrochemical Company of Iran. 14. Saatchi, Mahmoud & Kamkari, Kambiz & Asgarian, Mahnaz, (2011) "Psychological tests", Vireyesh Publications, Tehran, second edition. 15. Taheri, Shahnam, (2006) "productivity and quality management", Tehran, Aein Publications. 16. Vaughan, K. M., (1983) The Relationship of Managers, Education, Training and Experience to Organizational Climate and Productivity. [Dissertation Abstract,Ed. D.], Boston University. 57

8 Organizational environment and productivity Hassan Zirak & Fariba Azizzadeh APPENDIX TABLES Questionnaire (from-to question) measured structures Items (no.) Measure (data type) Spectrum sensing 1-24 Dimensions of Organizational Structure 24 Ordinal Likert Corporate responsibility 6 Ordinal Likert Corporate Identity 8 Ordinal Likert Organizational Support 8 Ordinal Likert organization 8 Ordinal Likert Table 2. Cronbach's alpha coefficient for the scale separation structures Items (no.) Cronbach's alpha measured structures Entire Quesionnaire Dimensions of Organizational Structure Corporate responsibility Corporate Identity Organizational Support organization

9 Euro-Asian Journal of Economics and Finance ISSN: Volume: 1, Issue: 1, Pages: Table 3- Normality test results for research variables Date no. Average Standar d deviatio n Normal parameter s Kolmogorov- Smirnov statistic Significant level (Sig.) Organization al climate productivit y of Organization al Structure Dimensions Corporate responsibilit y Corporat e Identity Organization al Support Table 4. The correlation between two variables of organizational climate and productivity of Organizational climate productivity of Organizational climate Pearson Correlation ** Sig. (2-tailed) Pearson Correlation.759 ** 1 Sig. (2-tailed) productivity of **. Correlation is significant at the level (2-tailed). Table 5. The correlation between the two variables of Organizational Structure Dimensions and productivity of Organizational Structure Dimensions productivity of Organizational Structure Dimensions Pearson Correlation Sig. (2-tailed).737 Pearson Correlation Sig. (2-tailed).737 productivity of 59

10 Organizational environment and productivity Hassan Zirak & Fariba Azizzadeh Table 6. Correlation between two variables of organizational responsibility and productivity of Organizational responsibility Pearson Correlation Organizational responsibility ** Sig. (2-tailed).000 Pearson Correlation Sig. (2-tailed) ** 1 **. Correlation is significant at the level (2-tailed). Table 7. Correlation between two variables of organizational responsibility and productivity of Corporate Identity Pearson Correlation Corporate Identity ** Sig. (2-tailed).000 Pearson Correlation Sig. (2-tailed) ** 1 **. Correlation is significant at the level (2-tailed). 60

11 Euro-Asian Journal of Economics and Finance ISSN: Volume: 1, Issue: 1, Pages: Table 8. The correlation between organizational support and organizational supports Pearson Correlation organizational supports ** Sig. (2-tailed).000 Pearson Correlation Sig. (2-tailed) ** 1 **. Correlation is significant at the level (2-tailed). Table 9. Summary of hypotheses test hypothesis The main hypothesis of the research: There is a significant relationship between current organizational climate and productivity of. First Sub-hypothesis: There is a significant relationship between Organizational Structure Dimensions and productivity of. Second Sub-hypothesis: There is a significant relationship between corporate responsibility and organization productivity Third Sub-hypothesis: There is a significant relationship between corporate identities and organization productivity Fourth Sub-hypothesis: There is a significant relationship between organizational supports and organization productivity Significance Significant Non-Significant Significant Significant Significant Result Accepted Rejected Accepted Accepted Accepted 61

12 Organizational environment and productivity Hassan Zirak & Fariba Azizzadeh Figures Dimensions of Organizational Structure Corporate responsibility Corporate Identity Organizational Support organization Independent variable Dependent variable Figure 1- Theoretical model of research 62

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