IMPACT OF ORGANIZATIONAL CLIMATE ON JOB SATISFACTION OF PRODUCTION EMPLOYEES IN ABC PVT LTD

Abstract

This study investigates the relationship between organizational climate and job satisfaction among production employees at ABC Pvt Ltd, a key player in Sri Lanka’s manufacturing sector. Addressing a gap in existing research, this study examines how leadership style, rewards and recognition, and the physical work environment influence job satisfaction in a Sri Lankan context—an area that has been widely studied in Western settings but remains underexplored in local manufacturing industries. A quantitative, cross-sectional research design was employed, with data collected through self-administered questionnaires distributed to 108 production employees. The collected data were analyzed using correlation and regression analysis via SPSS. The findings indicate a significant positive relationship between organizational climate factors and job satisfaction. Specifically, leadership style accounted for 14.5% of the variance in job satisfaction, rewards and recognition contributed 21.4%, and the physical work environment explained 27.7%. These findings highlight the importance of fostering a supportive organizational climate through effective leadership practices, structured reward systems, and improvements in the physical work environment. This study contributes to the understanding of organizational behavior in Sri Lankan manufacturing firms and offers practical insights for human resource management to enhance employee satisfaction, retention, and overall organizational performance.