An Impact of Organisational Climate on Employees’ Performance
with Select Private Insurance Companies
Dr. V. S. Rajakrishnan, *P. Aruldevi
Bharathidasan University, Karaikal, Tamil Nadu, India
DOI: https://doi.org/10.51244/IJRSI.2025.120800150
Received: 22 August 2025; Accepted: 31 August 2025; Published: 16 September 2025
INTRODUCTION OF THE STUDY
Organizational Climate is comprised of a mixture of norms, values, expectations, policies and procedures that
influence work motivation, commitment and ultimately individual or work unit performance. Climate can be
defined as the perceived attributes of an organization and its subsystems, as reflected in the way an organization
deals with its members, groups and issues. The Emphasis is on perceived attributes and the working of
subsystems. Positive Climate encourages, while negative climate inhibits discretionary effort. ‘Organizational
Climate’ refers to the quality of working environment. If people feel that they are valued and respected within
the organization, they are more likely to contribute positively to the achievement of business outcomes. Creating
a ‘healthy’ organizational climate requires attention to the factors which influence employees’ perceptions,
including the quality of leadership, the way in which decisions are made and whether the efforts of employees
are recognized. Organisational climate influences to a great extent the performance of the employees because it
has a major impact on motivation and job satisfaction of individual employees. Organisational climate
determines the work environment in which the employee feels satisfied or dissatisfied. Since satisfaction
determines or influences the efficiency of the employees, we can say that organisational climate is directly
related to the efficiency and performance of the employees.
REVIEW OF LITERATURE
Many research studies have been conducted on the subject of organizational climate and job satisfaction in
respective areas. These studies have revealed that certain variables are consistently correlated with
organizational climate and job satisfaction in private insurance sector. This segment presents a brief review of
earlier literature relevant to the study of “An Impact of Organisational Climate on Employees’ Performance with
Select Private Insurance Companies”. The collection of reviews has been made from various studies undertaken
by academic journals, magazines, publication, working papers, books and the like.
*Associate Professor in Commerce, E.G.S. Pillay Arts & Science College, (Autonomous), Affiliated to
Bharathidasan University, Nagapattinam – 611 002, Tamil Nadu, India.
** Ref. No. 16023/Ph.D K6/Commerce/Part-time/Oct 2017, Research Scholar, Department of Commerce, Don
Bosco College (Arts & Science), Thamanangudy, Ambagarathur, Karaikal – 600 601, Puducherry (U.T)
Vijayakumar, Nishad Nawaz and et.al (2020), stated that the “HRD Practices Impact on Organizational Climate
of Insurance Sector”, The study aims to understand the impact of HRD practices towards the organizational
climate in Life Insurance Sector. The data collected by using both methods primary & secondary data, the study
conducted in the Chennai city & circulated 400 questionnaires distribution, 371 filled questionnaires returned in
that 189 samples from the public sector insurers, i.e., LIC and 188 samples collected from the select private
sector life insurers, i.e., ICICI prudential, HDFC, and SBI Life from sales employees namely, development
officer, marketing executives, executive sales managers, assistant managers, and sales manager in sales. This
study used statistical tools namely percentage analysis, independent t-test and Regression analysis. The study
results also identified that there is a significant impact of HRD practices towards the organizational climate in
the insurance sector in the study region. The study was conducted in the area of Chennai city and data collected