Use of Structural Equation Modeling to Empirically Study the Impact of Organizational Climate on Employees’ Work Related Attitude in Information Technology Organizations in Chennai City

Background/Objectives: Information Technology (IT) industry is a fast growing industry, in that the developing countries trying to cope with changes made in developed countries. It is very important to study the organizational climate of such type of industry and the various kinds of variables that has a strong influence on establishing a dynamic organizational climate. The main objective of the study is to study the impact of organizational climate in Information Technology Industry in Chennai using Structural Equation Modeling technique. Methods/Statistical Analysis: The research followed descriptive research. This research was conducted among employees of Tata Consultancy Services (TCS), Infosys, Wipro, Hindustan Computers Ltd. (HCL), Tech Mahindra and L&T Infotech, those company offices located in Chennai. The 200 samples each from the above mentioned companies were chosen for the study. Snowball sampling techniques was used to select the sample from the population. The structured questionnaire was used to collect the primary data. Findings: Structural Equation Modeling was used to test the conceptual model. The conceptual model developed was found to be fit, so from the research, it is concluded that the congenial organizational climate cultivate the positive attitudinal outcomes for the employees and overall development for the organizations as well. Applications/Improvements: The model tested in this research is a maiden attempt to find out the impact of organizational climate on employees' work related attitude.