Impact of Entrepreneurs' Personality Characteristics on Employee Perception of Organisational Climate in Small-Scale Enterprises

Abstract

Based on a study of entrepreneurs in a few industrial towns in Gujarat, this article examines the effect of personality characteristics and self-efficacy expectations of entrepreneurs on employee perception of organisational climate, and explores the possible interrelationships between personality characteristics and gender. It hypothesises that employees’ perception of their organisational climate would be positively correlated with the personality parameters of entrepreneurs, and would differ significantly for high efficacious and low efficacious entrepreneurs. Along with self-efficacy and organisational climate measures, five personality dimensions-security, wisdom, guidance, power and proactivity-are considered for detailed analysis. The results suggest that employees of male and female entrepreneurs do not see any difference in the leadership characteristics of their owners; nor is there any difference in their perception of organisational climate. The employees of high and low efficacious entrepreneurs did not have differential perception of the organisational climate. The employees of high efficacious entrepreneurs perceived more of control and strategic approach in the organisation’s climate.