FACTORS CONTRIBUTING TO ORGANISATIONAL CLIMATE: EVIDENCES FROM SMALL MEDIUM ENTERPRISES IN CHINA

Abstract

Good organizational climate can be instrumental in influencing the behaviors of employees towards positive development. This study attempts to look into the factors that could contribute towards the inculcation of organizational climate which would then create better job performance among SMEs enterprises in China. The objectives of the study are to explore the extent of knowledge on organizational climate among organizational members and to study the relationships of selected variables with organizational climate as well as to identify the best predictors of organizational climate. The study utilizes a survey research using questionnaires which are self-administered on 400 employees from eight SMEs in Shandong, China.  The findings of the study found significant theoretical contributions of the four selected variables (i.e., leadership, communication, organization environment and job satisfaction) towards organizational climate.  The study found the best predictor of organizational climate in China is organization environment.  

Keywords: organizational climate, leadership, communication, organization environment, job satisfaction