1. Introduction

Because of the recent improvements, the world of business has witnessed the fact that the more employees internalize the firm the more they are agreed to participate in activities (Chen, Huang and Hasiao, 2010). In today’s conjecture, every business enterprise has ability to acquire new technology due to their financial worthiness, but the organizational factors seem to be the Determine the success of these acquisitions. Recent researches on organizational climate and staff satisfaction has concern on the job his self organizational climate as initial means of maximizing satisfaction. The major comment is here that if working climate is produce to provide a more suitable working atmosphere and increasing Staff satisfaction providing inputs (Metle 2001, Afolabi, 2005). The convincing major working features via, top level of target identification for self govern, skill value ability and working challenges are satisfactory and educational requirement for managing, evaluating working tasks, and expressing adverse psychological states are associated with essential outcome likely staff satisfaction, intense attractive and working effectiveness. Another suitable working atmosphere characteristic is role cleanliness (i.e. minimum level of low doubtfulness) furthermore; clear identifying planning’s and objectives for their working responsibility (Winter, Taylor and Sarros, 2000). Organizational working pressure, having a job schedules which meets ones requirements, emotions, mentally fit at work, getting different type of drawbacks and organizational delicate atmosphere adversely impacts of intension to leaving through staffs job satisfaction and engagement (Karsh, Bookse and Saifort, 2005). Furthermore, it has been found that organizational climate acts like a mediator variable improving the relationship of compromise with the staff satisfaction, staff satisfaction together to the organizational climate plays an critical and important role in the retention of current employees even though he has improvement of his commitment to the organization (Kumar and Giri, 2007) because it is an antecedent engagement (Lok et al., 2007).

This experiential study aims to prevent various previous circumstances of organizational climate and also investigate their impact on the financial performance turnover in banking industry in Gilgit. Organizational climate have great impact in to the organizational commitment and financial performance, identifies different variables which are influence with their dependent variable with the help of through proper literature review of preceding research in the organization is diverse from present research and which is actually obliging for the further research. The organizational climate has a large effect on the human achievement through their impact on the individual motivation and satisfaction. Organizational climate does not all of this through the creation of strongly held beliefs about the impact that would arise from different actions. Employees expect to certain recompense and fulfillment on the basis of their receipt climate organizations. The individuals in the organization have certain beliefs, and an accomplishment of products depends on their perceived state of organizational climate meets in accordance with your needs or not (Lehal, 2004). Studies have been conducted to understand how organizational climate influences the functional activities in an organization. One of the most important studies was the role of organizational climate on employee’s behavior towards specific phenomena such as staff satisfaction, sustainability, organizational change (Glisson et al, 2008).

Statement of the Problem

Explore the role of organization climate and its impact on industrial turnover of banking industry in the Region of Gilgit-Baltistan

Research Objectives

Ÿ To identify the impact of organizational climate, on the financial performance.

Ÿ To identify the impact of organizational commitment on the financial performance.

Ÿ To find the impact of staff satisfaction on the financial performance.

Research Questions

Ÿ What is the impact of financial performance in organizational climate, organizational commitment and staff satisfaction?

Ÿ What is the impact of organizational commitment towards financial performance of an organization?

Ÿ What is the relationship between financial performance and their performance in over all organization?

Significance of the study

This research is help out to all those financial institutions who are recruiting their employees and offering different type of pay scales but this research help out their top management to bottom management to offering good pay scales which promotes the organizational performance towards their organizations. According to my study these research literatures help out all those researchers who are interested measuring the organizational climate towards employee’s financial performance, organizational commitment and staff satisfaction. This research provides guideline for policy makers who are designing different policy to their employees in banking sector they must know to policy attracts the employees intension and climate allows to show their best efforts and contribution to the organization sustaining and continuing their jobs in same organization which overcomes the job switching this all happens when employees are satisfy from their organization.

2. Literature Review

Organizational climate

The many researchers are defining organizational climate is a collection of assessable properties of environmental task that is direct or indirect reception by employees working in organizational setting that influence and encourage their behavior (Holloway, 2012). Organizational climate is defined as appellant’s roles models, attributes, attitudes and a feeling characterizing the lives inside the organization has more to atmosphere and securities (Aiswarya and Ramasundaram, 2012). An organizational climate which concerns to values, beliefs exists that are not shown, but within the conduct and action of the employee (Moghimi and Subramaniam, 2013). In the literature there is not agreed definitions of organizational climate, Since this is a complex process, with several perceptions multidimensional levels derived employees about his/her experiences within a stable structure over time and broadly these are shared in organizational unit (Dawson et al, 2008) Since, organizational climate may designate any person, it is also believe increasing intrinsic motivation staff (Goepel, 2011 Ayranci, 2011, De Jong and Den Hartog, 2003 Ahmed, 1998). Intrinsic motivation referred to the feeling of pleasure in conduct. Meanwhile the intrinsic motivation is considered as the most critical factor for development behaviors groundbreaking work in employees (S. Amabileet, 1996, Patterson et al., 2005, Hunter et al., 2007, Ekvall, 1996). This finding was also endorsed by Amabile (2008), who found that the componential theory of creational and innovational they are influenced by three components inside the individual in the organization; 1) Proficiency relevant competence, 2) suitable processes of creativity, 3) intrinsic motivation and one external component of the individual working atmosphere and organizational climate. Organizational climate relies on the supposition that the general health of an organization might be assessed by measuring prediction of their working environment of the individual employees. Together these individual feedbacks are additional data that describes how the organization will work and how it treats its staff (Giles, 2010). In other terms, organizational climate shows how to make employees feel about the environment within the organization. For the improvement of organization it is mandatory order to feel proud of the employee that employees are the major resources and backbone of the organization (Dickson et al., 2006).

Organizational Commitment

The Organizational commitment has several definitions, the organizational commitment define as employee adherence in organization and participating on it. In Generally there are three size of engagement are the extension or continuing commitment, affective commitment and normative commitment (Allen and Meyer, 1996; Karrasch 2003, Turner and Chelladurai 2005, Greenberg, 2005; Boehman 2006 Canipe, 2006). All these kinds are independent in a nature and presented by individuals at different levels of the organization (Meyer and Allen, 1997, Porter et al. 1974) has defined the commitment of the organization believe that accepting the aims and values of the organization have show desire to become members of the organization. Employees are committed to demonstrate every intention to serve as their organizations and small intention to quit (Hunt and Morgan, 1994; Robbins and Coulter, 2003; Mowday, et al, 1982) organizational commitment, Emotional goals and values of commitment of organization Buchanan (1974). The Organizational commitment is "interiorized normative worldwide requirements where conducted in a systematic way that leads the objectives and interest of the Organization" (Wiener, 1982).

Affective commitment

The size of organizational commitment is the leading emotional engagement that is emotional affiliation of the individuals in the organization. In retrospective to Meyer and Allen (1997) affective commitment "emotional affiliation to, mark of the employees and with the involvement of the organization." The people of the organization they are engage to the organization on emotional basis, and continue to work for the organization besides they wish (Meyer and Allen, 1991). the staff of the organization who are emotionally committed and they are need to stay in the organization and feel that their duty of employees are also consistent which are valuable for the organization to the desire objectives in the organization (Wong, 2002). Affective commitment is a working approach linked with good emotions and feelings towards organization and also claimed that this kind is attitude "an direction towards the group that connects before attach the uniqueness of the individual within the group. "Affective commitment is the comparative power of identification of an entity and participation within a specific group (Mowday et al. 1982).

Normative commitment

The final size of the model in organizational commitment is normative commitment in nature (Meyer and Allen, 1997) defined normative commitment as "a sense of requirement to continuing working." Normative attitude internalized obligation and requirement of folks are required to bracket the relationship of the organization (Allen and Meyer, 1990). Selon (Meyer and Allen, 1991) "Employees with normative commitment feel they must see stay with the organization." In the art net of normative aspect, continue employed Because They need to Log in to do or what is the correct object to perform.

Wiener (1982) illustrates normative commitment that "the employment of a person actions, guided through wisdom of responsibility, obligation and loyalty towards the organization." The members of the organization have pledged to organization based on ethical reasons (Lverson and Buttigieg, 1999). the employee contracted normative the moral law Justice to remain in the organization irrespective of the improvement of the condition or the organization to gives him the satisfying larger than the years. The force of the organization's normative commitment is affected by the agreed regulations of mutual obligations among the Organization and their staff (Suliman and Iles, 2000). Mutual responsibility is the theory based of social exchange which suggests that the individual who receives a benefit is subject to the obligation or the solid normative rule to pay the benefit in a certain way (Makin and McDonald, 2000). This involves that the individuals habitually suffer forced to reimburse the organization invest in them, for example during education and improvement. (Meyer and Allen, 1991) argues with the intention of "the ethical commitment arises either throughout the development of socialization within the enterprise or the organization." In moreover case, it is based on the exchanging the things, this means whether the member of staff receives a assistance he or she or the organization has a ethical responsibility to reply to thoughtfulness.

Staff Satisfaction

In the literature, there is several numbers of definitions of personal satisfaction. Locke (1976), employee satisfaction has been described as an emotional response. Historically employee satisfaction (Judge et al., 2003) employee satisfaction is defined "as a multidimensional psychological response to work, personal satisfaction as well as the emotional and cognitive status. (Fisher, 2000) work satisfaction of the employees is the pleasure and member of staff derives commencing his / her work. It is an attitudinal variable which describing how people are feeling regarding their employment. (Agho, Mueller, and price, 1993).

In the same way Sousa-Poza suggests staff satisfaction is resolute by the balance connecting the input and output. Accordance with the concept is essential and widespread human necessities and that individual requirements are satisfied in your present condition, and then that individual will be joyful. Staff satisfaction depend on sense of balance between the job roles inflows (for hurting) like education, working time, effort, and operates puts (pleasure), like salaries, remuneration, position, assignment significance and working circumstances and the inherent aspects of work. Whether the outputs of work (delights) are related to work responsibility inflows (pain). Frederick Herzberg Theory Herzberg US scientific behavior suggests that the people how their dissatisfaction with salary, job security or policy of the organization. However the unsatisfying improvement over these factors does average are not needed employees meeting, Identifies of hygiene factors as the recognition, achievement and growth.

Financial Performance

Several authors have explored the links between organizational Climate and financial performance. For example, Cascio (1991) and Flamholtz (1985) argued that the financial performances associated with investments in progressive human resource management practices are generally significant of organizational climate. Similarly, work in the field of utility analysis (Boudreau, 1991, Schmidt, Hunter, MacKenzie and Muldrow 1979) has concluded that the value of an increase in standard deviation in the performance of the employee measured in dollars (SD) is equivalent to 40 percent of salary (per employee) and that the organizational implications of human resource management practices that can produce such an increase are considerable. Although most of the empirical work on this topic has been carried out in research centers, Becker and Huselid (1992) presented field data suggesting that (SDy) may in fact exceed 40 percent of salary. Similarly, Terpstra and Rozell (1993) found a significant and positive link between the extension of recruitment, the validation of the selection test and the use of formal selection procedures and firm profits, and Russell, Terborg and Powers (1985). They demonstrated a link between the adoption of employee training programs and financial performance. The use of performance evaluations (Borman, 1991) and the linking of such evaluations and compensations have also been consistently related to a higher profitability of the Industry (Gerhart and Milkovich, 1992).

Research Hypothesis

H1: There is no relationship between organizational climate, financial performance.

H2: There is no relationship between organizational commitments, financial performances.

H3: There is no relationship between staff satisfaction, financial performance.

3. Methodology

The reason of this study is to explore the connection or the relation between antecedents to determine the organizational climate, organizational commitment, staff satisfaction and financial performance in the banking industry. Organizational climate is a way of awareness of these aspects of their surroundings with the aim of directly influences how they preserve to do their work in a suitable working environment for the employee. The first studies on the organizational climate were conducted (Havard et al, 1968). There after so many studies and researches were conducted to attempts define the construction have often been problematic (land and Ableson, 1982). Regardless of the detail that organizational atmosphere is a differential component of distinctions in any organization (Moran and Volkwein, 1992). This research attempts to conduct the type of relationship among diverse variables and highlights the definite factors dependable for the variation in these variables. On this foundation, a model determination is framed, and the interactive relations between four variables given away in Figure. The models to test this hypothesis in study with the aim of

Figure 1. Organizational Climate

The conceptual framework of our research model is based on three independent variables like (Organizational Climate, Organizational Commitment, and staff satisfaction) and one of dependent variable financial performance. The major variables and its indicators can measure the dependency of independent variables and dependent variables, the many researchers can use this model in their research which are based and pillar of our research which we can shown here through proper facts and figures.

Findings

In this research, the researcher aims to find the role of organizational climate and its impact on industrial turnover and research is taken as the case study of banking industry in Gilgit, where all schedule and non schedule banks has been in use for going away from beginning to end the study such as, National bank of Pakistan, MCB, JSB, BOK, BOP, and Karakorum Cooperative Bank Gilgit etc organization. This study is quantitative based and the data have been composed in the shape of questionnaires. This questionnaire consists of forty questions which comprise of forty close ended questions were no open ended question asked from respondent. The close-ended questions were productive for the intention of generating views, objects, and thoughts of the employees of the banking organizations of Gilgit. Through stratified random sampling, a sample of one hundred and fifty employees is selected from different kinds of schedule and non schedule banking organization. To produce the views from the staffs of these stated organizations, a five scale model is adopted which ranges from strongly disagree to strongly agree (likerd scale).

The data composed from questionnaires is processed through on SPSS, after which the information became ready for explanation. This explanation is as under.

Descriptive statistics

The data given below the employees are distributed according to their designations

Table 1

Figure 2

The descriptive statistics shows that’s we are taking one hundred and fifty employees of different banks from Gilgit. In this statistics here missing values are zero and valid values are 150.

Gender Distribution

Table 2 the data given below shows the distribution of employees with respect gender

Table 2

Figure 3

This group of femininity shows that males contributed 75% while females are 25% of the percentage of respondents. This shows the inequality of gender employment in the organizations.

Correlation

The connection or interdependence between two or more things is called correlation.

Ÿ common relationship or connection between two or more variables

Ÿ The degree of relation connection, as between two sets of information: a relationship is 75%.

Ÿ A correlating or living being connected

Descriptive

Table 3

The data given below shows the correlation between independent variables

Correlation Model

Table 4

Table 4 show the correlation between independent variables, the staff satisfaction is positive correlated with organizational commitment with .473 and the staff satisfaction is again positive correlated with organizational climate with .139.

The organizational commitment index is positive relationship with staff satisfaction of .473 and also organizational commitment shows positive correlation with organizational climate with .104. In the third independent variable which is organizational climate index which is positive correlated with staff satisfaction of .139, and climate again shows his positive relationship with organizational commitment with .104. So there is positive connection with all independent variables in this table.

The results of (B. Holloway, 2012) quite similar comparatively relates to our findings. There is positive and significant relationship among relations-oriented leadership behaviors and the organizational climate dimension reward. Also (Holloway, 2012) in another correlation tests are quite similar to our finding. In attendance is positive and considerable relationship between age and responsibility and in attendance is a positive and significant correlation.

Model Summary Tables

Table 5

Hypothesis Summary

Table 6

As our null hypothesis (H1) there is correlation among organizational climate and financial performance of an employee, according to our study result null hypothesis is rejected

As our alternate hypothesis (Ho) there is no connection among organizational climate and financial performance of an employee. Hence, our alternate hypothesis is accepted.

For our second null hypothesis (H2) there is relationship between organizational commitment and financial performance of an employee, according to our study null hypothesis is accepted.

As our alternate hypothesis (H0) there is not relationship between organizational commitment and financial performance of organization hence, our alternate hypotheses are rejected.

For our third null hypothesis (H3) there is connection between staff satisfaction and financial performance, according to our study null hypothesis is accepted.

As our alternate hypothesis (H0) there is not relationship between staff satisfaction and financial performance hence, our alternate hypotheses are rejected

But according to our above regression analysis table in the last Column the significance level shows the acceptance and rejection of hypothesis. The valve .651 for the staff satisfaction which is greater than sig level .05 shows the insignificance relationship to the dependant variable and rejected the hypothesis. Further results for the variables organizational commitment and organizational climate are .001 and .034 correspondingly which is less than the significance level .05. Hence, this proves that there is strong relationship exist among these independent variables (organizational commitment and organizational climate) to the dependant variable (financial performance). The results for these variables depict the significance relation and accept the hypothesis.

Table shows the result of coefficient of independent variables. The independent variable staff satisfaction is insignificant with financial performance so that’s why we cannot interpret this variable. In another side the variable organizational commitment is significant for 1% significant level. The coefficient valve .45 of organizational commitment indicates that there is positive relationship between organizational commitment and financial performance which is dependent variable in our model. According to the regression results when organizational commitment increases by 1% it results 45% increment in the financial performance. The coefficient valve .136 of organizational climate indicates that there is positive relationship with financial performance which is dependent variable in our model. According to the regression results when organizational climate increases by 1% it results 14% increment in the financial performance.

According to the R² results overall model explained 32% of the variation in financial performance. The results of (Borden at al 2009) are quite similar which are comparatively relates to our findings. In their research Participant age and the length of time in the youth program were used as predictors of leadership behavior using regression analysis.

ANOVA Model

Table 7

In this study data analysis is perform through the help of statistical package for social sciences (SPSS 20 version). The study used both descriptive as well as inferential statistics to present the responses. Hypothesis testing is done where using large samples and ANOVA.

This is the table which shows the results of the ANOVA analysis and whether we include a statistically significant difference among our collection means. We can see that the significance level 0.00 (P= .00), which is less 0.05, and consequently, there is a statistically significant differentiation in the mean duration of time to complete the database problem among the different courses taken. This is great to recognize, but we do not know which of the specific group differed.

4. Discussion

The results of first and second questions show that situation of the organizational climate, organizational commitment, and staff satisfaction among staff at banking sector is above average. Furthermore, the consequences of the first hypothesis indicated that there is no significant positive relationship between organizational climate and its dimensions (salaries, increment, reward satisfaction, policies agreement) of job motivation at banking industry. Also, the findings of the second hypothesis revealed that there is a significant positive relationship between organizational climate and it's characteristics with Organizational Commitment. The outcomes of third hypothesis of the study detected that the components of staff satisfaction and role clearness and agreement are most effective in predicting job motivation and attraction. In our research literature help out to all the managers of different financial institutions to improve organizational climate, Organizational commitment and improving their policies to their staff who are totally engaging to give their best effort to the organization. Furthermore our research findings help out policy makers to offer good pays to their employees who are showing their emotional commitments with organization and they are satisfying from their Job and which is great turnover for banking Industry.

5. Conclusions

The study set elsewhere to expand a banking industry and measures the role of organizational climate and its impact on Industrial Turnover a literary case study of banking industry in Gilgit. The outcomes of this experimental study support that organizational climate has a significant impact on objective of banking employees turnover. The study results exposed that climate, commitment, and staff satisfaction are the three background of organizational climate, which has a contrary significant impact on turnover intention. I.e. if banking employees are clear about the organizational and individual goals, financial satisfaction and rewards inside the organization is correctly managed than it is a smaller amount possible for them to give up the organization. The findings hopefully recommend that these three antecedents may correspond to what constitutes a hypothetically broadened and enriched thoughtful of the organizational climate in relation to banking employees of banking industry in Gilgit.

6. Recommendations for Future Research

This research was conducted on employees of the Banking industry in Gilgit, Pakistan. This research should be tested in other sectors such as telecommunications, consumer goods, Textile Industry, Pharmaceutical industry and educational institutes in Pakistan etc. Due to the limited time, we might able to collect data N = 150, so the sample size should be increased to know the general relation of the variable tested throughout Pakistan. In this research, Organizational climate (salaries, increment, reward satisfaction, policies agreement) were tested. In the future, researchers may use other HR practices and Organizational culture such as retraining, redevelopment, executive bonuses, free time, etc., which could be used to verify their impact on employee retention. The questionnaires were used as a data collection tool. This can sometimes lead to inappropriate information due to lack of seriousness when completing the questionnaire. Near future effective data collection tools should be used for the reliable collection of information.