Concept and Determinants of Organizational Climate

Organisational climate is also referred to as the “Situational determinants” or “Environmental determinants” which affect the human behaviour.

Some persons have used organisational culture and organisational climate interchangeably. But there are some basic differences between these two terms. According to Bowditch and Buono, “Organisational culture is connected with the nature of beliefs and expectations about organisational life, while climate is an indicator of whether these beliefs and expectations are being fulfilled.”

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. For the individual members within the organisation, climate takes the form of a set of attitudes and experiences which describe the organisation in terms of both static characteristics (such as degree of autonomy) and behaviour outcome and outcome- outcome contingencies.”

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.”

Characteristics:

1. Abstract and Intangible Concept:

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

2. General Perception:

Organisational climate is a general expression of what the organisation is. It is the summary perception which people have about the organisation. It conveys the impressions people have of the organisational internal environment within which they work.

3. Unique and District Identity:

Organisational climate gives a distinct identity to the organisation. It explains how one organisation is different from other organisations.

4. Multi-Dimensional Concept:

Organisational climate is a multi- dimensional concept. The various dimensions of the organisational climate are individual autonomy, authority structure, leadership style, pattern of communication, degree of conflicts and cooperation etc.

5. Enduring Quality:

Organisational climate built up over a period of time. It represents a relatively enduring quality of the internal environment that is experienced by the organisational members.

Types:

1. Rule-Oriented Climate

The organizational culture that provides for featured benefits and puts its burden on attention to details by all the members’ result in rule-oriented climate.

2. People-Oriented Climate

The organizational culture that includes a core set of values and puts its onus on care and concern for the employees’ results in people-oriented climate.

3. Innovation-Oriented Climate

The organizational culture that introduces new ways and processes to develop new and innovative things results in innovation-oriented climate.

4. Result-Oriented Climate

The organizational culture that gives preference to values and puts its onus on refining every detail of the processes to refine and achieve results is known as result-oriented climate.

Factors Influencing Organisational Climate:

Organisational climate is a manifestation of the attitudes of organisational members towards the organisation. Researchers have used the data relating to individual perception of organisational properties in identifying organisational climate. Even in this context, there is a great amount of diversity.

Litwin and Stringer have included six factors which affect organisational climate. These factors are:

(i) Organisational Structure: Perceptions of the extent of organisational constraints, rules, regulations, red tape,

(ii) Individual Responsibility: Feeling of autonomy of being one’s own boss,

(iii) Rewards: Feelings related to being confident of adequate and appropriate rewards,

(iv) Risk and Risk Taking: Perceptions of the degree of challenge and risk in the work situation,

(v) Warmth and Support: Feeling of general good fellowship and helpfulness prevailing in the work setting.

(vi) Tolerance and Conflict: Degree of confidence that the climate can tolerate, differing opinions.

Schneider AND Barlett give a broader and systematic study of climate dimensions.

They include the following factors:

(i) Management Support,

(ii) Management Structure.

(iii) Concern for new employees

(iv) Inter-agency conflict,

(v) Agent dependence and

(vi) General Satisfaction

Taguiri has identified five factors influencing the organizational climate on the basis of information provided by managers.

These are:

(i) Practices relating to providing a sense of direction or purpose to their jobs-setting of objectives, planning and feedback,

(ii) Opportunities for exercising individual initiative,

(iii) Working with a superior who is highly competitive and competent.

(iv) Working with cooperative and pleasant people,

(v) Being with a profit oriented and sales oriented company. KATZ et. al. has identified five factors which affect individual performance in organisation;

(i) Rules orientation,

(ii) The nurturance of subordinates,

(iii) Closeness of Supervision,

(iv) Universalism,

(v) Promotion-achievement orientation.

Lawrence James and Allan Jones have classified the following factors that influence organisational climate:

(i) Organisational Context: Mission, goals and objectives, function etc.

(ii) Organisational Structure: Size, degree of centralization and operating procedures.

(iii) Leadership Process: Leadership styles, communication, decision making and related processes.

(iv) Physical Environment: Employee safety, environmental stresses and physical space characteristics.

(v) Organisational Values and Norms: Conformity, loyalty, impersonality and reciprocity.