ORGANIZATIONAL CLIMATE UNIT V ORGANIZATIONAL CLIMATE

DEFINITION According to Campbell, “Organisational climate can be defined as a set of attributes specific to a particular organisation that may be induced from the way that organisation deals with its members and its environment. According to Forehand and Gilmer, “Climate consists of a set of characteristics that describe an organisation, distinguish it from other organisations are relatively enduring over time and influence the behaviour of people in it.”

COMPONENTS OF ORGANIZATIONAL CLIMATE 1)Dominant Orientation: Dominant orientation of the organisation 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 organisations are reflected in the way informal groups are formed and operated. The informal groups may benefit the organisation also, but in some cases it may displace the goals of the organisation. 3. Conflict Management: In the organisation, there can always be inter-group as well as intra group conflicts. The organisational climate will depend upon how effectively these conflicts are managed. If they are managed effectively, there will be an atmosphere of cooperation in the organisation. If they are not managed properly there will be an atmosphere of distrust and non-cooperation.

COMPONENTS OF ORGANIZATIONAL CLIMATE If they are managed effectively, there will be an atmosphere of cooperation in the organisation. 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 centralization of authority, the participation in decision making by the subordinates will be very less. On the other hand, if there is decentralization of authority, there will be an atmosphere of participative decision making.

COMPONENTS OF ORGANIZATIONAL CLIMATE 7. Task Oriented or Relations Oriented Management: The dominant style of managers will also affect the organisational 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 organisation 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 organisational 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.

COMPONENTS OF ORGANIZATIONAL CLIMATE 9. Communication: The communication system of the organisation will also affect the organisational 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 organisation. 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.

FACTORS AFFECTING ORGANISATIONAL CLIMATE Lawrence James.R and Allan Jones (1974) have tried to identify the factors influencing Climate and they grouped these factors under five heads : 1)Organizational Context: The first and foremost influential factor that affects the climate is the management philosophy. If the company is wedded to such a policy that it effectively utilizes its resources both human as well as non- human, then it can be concluded that the climate is good. 2)Organizational Structure: Structure of the organisation represents another variable that affects climate. It needs no relationships and delineates authority and functional responsibility 3)Process: In every organisation certain processes are vital so that it runs. Communication, decision-making, motivation and leadership are some of the very important processes though which the management carries out its objectives.

FACTORS AFFECTING ORGANISATIONAL CLIMATE 4)Physical Environment: The external conditions of environment, the size and location of the building in which an employee works, the size of the city, weather or the place all affect the organizational climate. 5)System values and norms: Every organization has discernible and fairly evident formal value system where certain kinds of behaviours are rewarded and encouraged, and certain kinds of behaviour forces an individual to formal sanctions. The formal value system is communicated to employees through rules, regulations and policies.

IMPORTANCE OF ORGANISATIONAL CLIMATE 1)Increased Employee performance: Positive environment will result in increase in employees performance as employees get motivated and enjoy doing their work 2)Develop Strong Relationship: Organizational climate assists managers to understand the relationship between practices and processes of the organization and need of the employees. By understanding how different practices and initiative stimulate employees, managers will be able to understand what motivates employees to behave in a manner that leads to a positive climate and results in the organization success 3) Determinant of success or failure: If organizational climate is good, employees will like to be in association with others, then employees like to perform the job with pleasure and satisfaction. Therefore organizational climate decides the success or failure of the organization 4) Managers can get their work done easily: Managers experience that employees follows their orders with respect . Managers instructions will be pleasantly obliged by the subordinates

IMPORTANCE OF ORGANISATIONAL CLIMATE 5)Develops Confidence: When the organizational climate is good it develop confidence in the subordinate. As subordinate will work hard and show confidence to their superiors. 6) Resource Conservation: A dissatisfied employee destroys the resources whereas if the employees are satisfied they will in maintaining the resources. Management and employees will have ultimate gains through low cost of production and better incentives respectively 7) Social Benefit: The society will be benefited by the regular supply of goods at lower prices from an effective organizaton. As when the employees are satisfied and are co operative in nature will help in reserving the organization’s resources 8) Reduces Turnover: Employees work happily and associate with the company for a long time. Employees turnover and absenteeism will be lowered when morale is high

IMPORTANCE OF ORGANISATIONAL CLIMATE 9) Develops a sense of attachment with organization: As high morale attracts and holds good employees for a long time. It results in increased in performance and improves cooperation and brings unity 10) Develops healthy organization: It creates favourable atmosphere among customers, public, suppliers etc. It keeps organization healthy.