ORGANIZATIONAL CLIMATE

I.INTRODUCTION

Organizational climate is the process of quantifying the “culture” of an

organization; it precedes the notion of organizational culture. It is a set of
properties of the work environment, perceived directly or indirectly by the
employees, that is assumed to be a major force in influencing employee behavior.
Climate and culture are both important aspects of the overall context, environment
or situation. Properties of the business environment in a workplace observed by
staff that strongly influence their actions and job performance. For example, a
perceptive business manager might take the trouble to survey employees about the
organizational climate to identify and promote those aspects that are most
conducive to achieving corporate objectives. Also called corporate climate.
Organizational climate, on the other hand, is often defined as the recurring patterns
of behavior, attitudes and feelings that characterize life in the organization, while
an organization culture tends to be deep and stable. Although culture and climate
are related, climate often proves easier to assess and change.

II.DEFINITION

According to Forehand and Gilmer, “Climate consists of a set of characteristics

that describe an organization, distinguish it from other organizations are relatively
enduring over time and influence the behaviour of people in it.”

According to Campbell, “Organizational climate can be defined as a set of

attributes specific to a particular organization that may be induced from the way
that organization deals with its members and its environment.
According to Likert, "Organizational climate is a psychological, multi
dimensional, complex phenomenon that has an effect on learning,
performance,turnover, absenteeism and tenure."

Thus, organizational climate is a relatively enduring quality of the internal

environment that is experienced by its members, influences their behaviour and
can be described in terms of the value of a particular set of characteristics of the
organization. It may be possible to have as many climates as there are people in
the organization when considered collectively, the actions of the individuals
become more meaningful for viewing the total impact upon the climate and
determining the stability of the work environment. The climate should be viewed
from a total system perspective. While there may be differences in climates within
departments these will be integrated to a certain extent to denote overall
organizational climate.

III.CHARACTERISTICS OF ORGANIZATIONAL CLIMATE

The nature of organizational climate will be clear from the following
characteristics:
1. General Perception:
Organizational climate is a general expression of what the organization is.
It is the summary perception which people have about the organization. It conveys
the impressions people have of the organizational internal environment within
which they work.

2. Abstract and Intangible Concept:

Organizational climate is a qualitative concept. It is very difficult to explain
the components of organizational climate in quantitative or measurable units.

3. Unique and District Identity:

 Organizational climate gives a distinct identity to the organization. It
explains how one organization is different from other organizations.

4. Enduring Quality:
Organizational climate built up over a period of time. It represents a
relatively enduring quality of the internal environment that is experienced by the
organizational members.

5. Multi-Dimensional Concept:
Organizational climate is a multi- dimensional concept. The various
dimensions of the organizational climate are individual autonomy, authority
structure, leadership style, pattern of communication, degree of conflicts and
cooperation etc.

IV.FACTORS INFLUENCING ORGANIZATIONAL CLIMATE

Organizational climate is a manifestation of the attitudes of organizational

members towards the organization. These attitudes are based upon such things as
management policies, supervisory techniques, the ‘fairness’ of management,
labor’s reactions to management, and literally anything that affects the work
environment. Lawrence James and Allan Jones have classified the factors that
influence organizational climate into five major components:
1. Organizational Context:

The management philosophy of an organization will be evident from the

goals, policies and functions of the organization and the manner in which the goals
are put into operation. For instance, the reputation of a particular company
regarding the treatment of employees would provide some indication of the
managerial philosophy regarding the utilization of human resources. This
philosophy of management is expressed by policies, rules, regulations and, of
course, by the actions of mangers. The reaction of the employees and the degree to
which they agree within management’s philosophy is critical to the development
of a favorable climate. If management is able to match employee’s goals to
organizational goals, it is most likely to put a positive influence on climate. The
management’s attitude towards employees is indeed a major determinant to the
overall organization climate.

2. Organization Structure:

An organization structure is the framework of authority and responsibility

relationships in an organization. It clarifies who is to supervise whom and who is
responsible to whom. It serves as the basis of inter-personal relationships between
the superiors and the subordinates and the peers (people of same rank in the
organization). The organization structure followed by management is critical
organizational climate. If the top management feels the need of giving greater
importance to the subordinates, it will follow a decentralized structure. There will
be fewer layers in the organizational hierarchy and participative decision-making
will be encouraged. The organizational climate will be inductive to the
development of the employees. But if the top management like to maintain a
greater degree of consistency in decision-making, it would follow a centralized
structure. This would enable greater control over decisions; and organizational
climate will encourage centralized information management and decision-making.

3. Relationship between superior and subordinates:

Every employee has to interact with his superior or boss for necessary
instructions and guidance. It is the immediate superior who allows the subordinate
to participate in decision-making, gives assignments, does performance appraisals,
conducts performance reviews, interprets policies, determines pay increments, and
decides who has the potential to be promoted. These functions are inherent in
managing and every manger is concerned with these functions. The relationship
between superior and subordinate is not only of an interpersonal nature, but it also
represents the primary interface between the organization and the employee. All
mangers must be aware of the possible influence on climate when deciding the
type of leadership that is, autocratic or participative to be provided to the
subordinates. The effectiveness of a leadership style is determined mainly by the
particular situation. In other words, the leadership style must suit the situation
faced by the manger. If it is not so, the motivation level of the workers will be low,
they will feel frustrated and dissatisfied and productivity may also go down. If the
workers are not satisfied with the type of leadership provided, effective
communication will be hindered and their morale will also be low. Therefore,
every manager must consider the likely impact of this style of functioning on the
organizational climate.

4. Physical environment:

It has been observed that office decor, office size and the physical space
allotted to a person at work (private office or general office) etc. have an important
influence to the development of a favorable attitude towards the job. Noise has
also been considered instrumental in influencing the climate of organization. High
level of noise may bring a bad feeling and lead to frustration, nervousness and
aggression and thus have a negative effect upto organizational climate. Some
degree of immunity to noise may be possible when it is a steady part of the
external environment. Therefore, noise to a tolerable extent may not adversely
affect the organizational climate.

5. Values and Norms:

Over a period of time every organization develops a culture of its own.

Culture is the social or normality glue that holds an organization together. It
expenses the values or social ideals and beliefs that organization members come to
share. In the words of Bro Utal, “Organization culture is a system of shared values
(what is important) and the beliefs (how things work) that interact with a
company’s people, organization structures, and control systems to produce
behavioral norms (the way we do things).The above quotation suggests that
organizations have different cultures goals and values, managerial styles, and
norms for carrying out activities.
V.TECHNIQUES FOR IMPROVING ORGANIZATIONAL CLIMATE
The following techniques may be helpful in improving the organizational climate:
(i) Open Communication:
There should be two-way communication in the organization so that the
employees know what is going on and react to it. The management can modify its
decisions on the basis of employees’ reactions.

(ii) Concern for People:

The management should show concern for the workers. It should work for
their welfare and improvement of working conditions. It should also be interested
in human resource development.

(iii) Participative Decision-making:

The employees should be involved in goal setting and taking decisions

influencing their lot. They will feel committed to the organization and show
cooperative attitude.

(iv) Change in Policies:

The management can influence organization climate by changing policies,

procedures and rules. This may take time, but the change is long lasting if the
workers see the change in policies procedures and rules as favorable to them.
(v) Technological Changes:

It is often said that workers resist changes. But where technological

changes will improve the working conditions of the employees, the change is
easily accepted. There will be a better climate if the management adopts improved
methods of work in consultation with the employees.

VI.IMPACT OF ORGANIZATIONAL CLIMATE

Organizational 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. Organizational 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 organizational climate
is directly related to the efficiency and performance of the employees.

The organizational climate can affect the human behaviour in the organization
through an impact on their performance, satisfaction and attitudes. There are four
mechanisms by which climate affects the behaviour of the employees.

1. Constraint System:
Organizational climate can operate as a constraint system in both the
positive and negative sense. This can be done by providing information to the
employees about what kind of behaviour will be rewarded, punished or ignored.
Thus, behaviour can be influenced by varying degrees of rewards and
punishments. Such a constraint system would influence the behaviour of those
people who are most interested in those specific values which are assigned to
different behavioural outcomes.

2. Evaluation of Self and Others:

 Organizational variables may affect behaviour through evaluation of self
and others. In this evaluation process both the physiological and psychological
variables will be associated. Such evaluation will affect the human behaviour.

3. By Acting as Stimuli:
Organizational factors can influence human behaviour by acting as stimuli.
As stimuli they influence individual’s arousal level, which is a motivational
variable directing human behaviour. The level of arousal will directly affect the
level of activation and hence performance.

4. By Helping the Individual to Form a Perception:

Organizational factors influence the behaviour by helping the individual in
forming a perception of the organization. The perception then influences
behaviour. Thus, good organizational climate is instrumental to higher employee
satisfaction, better human relations and higher productivity.

VII.DIMENSIONS OF ORGANIZATIONAL CLIMATE

The important dimensions or components which collectively represent the climate
of an organization are as discussed below:
1. Dominant Orientation:
Dominant orientation of the organization is an important determinant of
climate and it is the major concern of its members. If the dominant orientation is to
adhere to established rules and regulations, the climate is characterised by control.
If the orientation is to produce excellence the climate will be characterised by
achievement.

2. Inter-Personal Relationships:
 The interpersonal relationships in the organizations are reflected in the way
informal groups are formed and operated. The informal groups may benefit the
organization also, but in some cases it may displace the goals of the organization.

3. Conflict Management:
In the organization, there can always be inter-group as well as intra group
conflicts. The organizational climate will depend upon how effectively these
conflicts are managed. If they are managed effectively, there will be an
atmosphere of cooperation in the organization. If they are not managed properly
there will be an atmosphere of distrust and non-cooperation.

4. Individual Autonomy:
If the individual employees are given sufficient freedom to work and
exercises authority, it will result in efficiency in operations. The autonomy will
lighten the burden of higher level executives.

5. Organizational Control System:

The control system of the organization can be either rigid or flexible. Rigid
control will lead to impersonal or bureaucratic atmosphere in the organization.
There will be minimum scope for self regulation.

6. Organizational Structure:
The organizational structure serves the basis of inter personal relations
between superiors and subordinates. It clarifies as to who is responsible to whom
and who is to direct whom. If there is centralisation of authority, the participation
in decision making by the subordinates will be very less. On the other hand, if
there is decentralisation of authority, there will be an atmosphere of participative
decision making.
7. Task Oriented or Relations Oriented Management:
The dominant style of managers will also affect the organizational climate.
Task oriented approach means that the leadership style will be autocratic. The
employees will have to show results or face the punishment. The employee morale
will be low in the long run.If the managers are relations oriented, the climate will
be considerate and supportive. There will be team spirit in the organization
because the needs and aspirations of the workers will be given due importance.

8. Rewards and Punishments:

The system of rewards and punishments is also an important component of
organizational climate if the reward system is directly related to performance and
productivity, there will be an atmosphere of competition among the employees.
Everybody will like to work hard and earn more reward in the form of promotions
and pay rise. If there is biasedness in the distribution of rewards, the meritorious
employees will be discouraged.

9. Communication:
The communication system of the organization will also affect the
organizational climate. The flow of information, its direction, its dispersement and
its type are all important determinants. Proper communication system means that
the subordinates are in a position to express their ideas, suggestions and reactions,
otherwise they will feel frustrated.

10. Risk Taking:

How members respond to risks and whose help is sought in situations
involving risks are important in any organization. If individuals feel free to try out
new ideas without any fear they will not hesitate in taking risks. Such an
atmosphere will be conducive to innovative ideas.
VIII.DEVELOPING A SOUND ORGANIZATIONAL CLIMATE
To develop a sound organizational climate is a long term proposition.
Organizational climate depends upon the organizational behaviour system. The
organizational climate should represent the goals and philosophies of those who
join together to create the organization. The type of climate that an organization
seeks is contingent upon the type of people it has, the type of technology, level of
education and expect actions of people in it.

The following techniques are generally helpful in improving the climate of the
organization:
1. Effective Communication System:
There should be a two way communication in the organization so that the
employees know what is going on and react to it. The manager can modify his
decision on the basis of feedback received.

2. Concern for People:

The management should be interested in the human resource development. It
should work for the welfare of employees and an improvement in their working
conditions. For developing a sound organizational climate, the management
should have show concern for the people.

3. Participative Decision Making:

The management should involve the employees in decision making process,
particularly those decisions which are related to goal setting and affect them.
Participative decision making will make the employees committed to the
organization and more cooperative also.

4. Change in Policies, Procedures and Rules:

The organizational climate can also be changed by making changes in the policies,
procedures and rules. It is a time consuming process but the changes will also be
long lasting if the workers see the changes in policies, procedures and rules as
favourable to them.

5. Technological Changes:
Generally, the workers and employees resist any innovative changes. But where
technological changes improve the working conditions of the employees, the
change will be easily accepted. Better climate will be there if the management
adopts innovative changes in consultation with the employees.

IX.PARTICIPATION AND ORGANIZATIONAL CLIMATE

Participation is a very effective tool to develop sound organizational climate.
Thus, every organization can make an attempt to develop organizational climate
based on participation. Participation is based on democratic value of
organizational life. Bennis has given some basic features of democracy as applied
to organizational life. According to him, democracy is basically a system of
values.

1. Mental and Emotional Involvement:

The basic feature of participative system is that there should be mental and
emotional involvement of the employees in the administration of the organization.
This involvement is psychological rather than physical. A person who participates
is ego involved rather than merely task involved. If there is no psychological
involvement of the employees, the participation is no participation but just a
manipulation. In such a situation, the manager tries to make people think that they
are participating and having an influence, while in reality they are not.

2. Acceptance of Responsibility:
A second important characteristic of participation is that people are encouraged to
accept responsibility. Since people are mentally and emotionally involved in
decision making, they have to undertake responsibilities also. Thus, they become
both decision makers and executors.

This is a social process by which people become involved in an organization and

want it to work successfully. When people want to do something, they will find a
way. Under participative conditions people perceive managers as supportive
contributors to the team. Employees are ready to work actively with managers,
rather reactively against them.

3. Motivation to Contribute:
Participation motivates people to contribute to the situation. They are given
opportunities to use their initiative and creativity towards the objectives of the
organization. Participation uses the creativity of all persons, thereby all of them
contribute something in decision making. Contribution is different from consent
because in consent the person only confirms what has already been decided. A
consent or does not contribute to decision making rather he merely approves what
has been decided by others.

X.APPROACHES TO ORGANIZATIONAL CLIMATE

1.Structural approach

This approach views organizational climate as a characteristic or attribute

of the organization. The perceptions of the individual members of the
organizational climate is the result of the objective aspects of the work
environment, namely the organization’s size, a centralised or decentralised
authority structure, number of hierarchical levels, advancement of technology as
well as the extent to which organizational rules and policies influence members’
behaviour

2.Perceptual approach
 According to this approach, the individual interprets and responds to the
situation in a way that is psychologically meaningful to him/her, the individual
perceives the organizational conditions and then creates a psychological
representation of the climate. The term “organizational conditions” refers to the
structural characteristics highlighted in the previous approach but is more
encompassing in the sense that it includes organizational processes such as
communication, influence, leadership and decision-making patterns

3.Interactive approach

This approach builds on the aforementioned approaches and combines the

objectivism of the structural approach and the subjectivism of the perceptual
approach. The underlying assumption of the interactive approach is that
organizational climate is the result of the interaction of individuals in response to
their situation which results in the shared agreement of organizational members.
This approach identifies communication as a key contributor of organizational
climate.

4.Cultural approach

According to the cultural approach, organizational climate is shaped by

individuals in a group who interact and who share the same abstract frame of
reference, organizational culture, as they learn to deal with the organization’s
demands the cultural approach includes the role of organizational culture as a key
factor in the development of organizational climate.

XI.SUMMARY

As far we discussed about introduction, definition, characteristics, factors

influencing of organizational climate, dimensions of organizational
climate,developing sound organizational climate ,participation in organizational
climate and approaches of organizational climate.
 XII.CONCLUSION

Organizational climate can be defined as a set of attributes specific to a particular

organization that may be induced from the way that organization deals with its
members and its environment. Climate and culture are both important aspects of
the overall context, environment or situation. Properties of the business
environment in a workplace observed by staff that strongly influence their actions
and job performance. For example, a perceptive business manager might take the
trouble to survey employees about the organizational climate to identify and
promote those aspects that are most conducive to achieving corporate objectives

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