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Factors Influencing Organizational Climate

This document discusses factors that affect organizational climate including organizational context, structure, processes, physical environment, and systems/values/norms. It provides examples of each factor and how they shape climate. For instance, it states that a decentralized structure with participative decision-making can promote a positive climate. It also notes that changes in climate are possible but gradual, requiring changes to managerial philosophy, rules, and human reactions over time. Organizational climate can be measured through staff questionnaires assessing dimensions like conformity, responsibility standards, and leadership. A company may even have multiple internal climates depending on employee perceptions and tenure.

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100% found this document useful (1 vote)
53 views21 pages

Factors Influencing Organizational Climate

This document discusses factors that affect organizational climate including organizational context, structure, processes, physical environment, and systems/values/norms. It provides examples of each factor and how they shape climate. For instance, it states that a decentralized structure with participative decision-making can promote a positive climate. It also notes that changes in climate are possible but gradual, requiring changes to managerial philosophy, rules, and human reactions over time. Organizational climate can be measured through staff questionnaires assessing dimensions like conformity, responsibility standards, and leadership. A company may even have multiple internal climates depending on employee perceptions and tenure.

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rthi04
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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M.

KUMARASAMY COLLEGE OF
ENGINEERING

DEPARTMENT OF MANAGEMENT STUDIES


FACTORS AFFECTING
ORGANIZATIONAL CLIMATE

 In every organization there exist certain elements


that exert profound influence on the existing climate
 Structure or process plays a major role .
 The level of technology may be the major influential
factor in climate .
 LAWRENCE JAMES and ALLAN JONES have tried to
identify the factor influencing climate and they
grouped these factors under five head .
 They are :
* organizational context
*organizational structure
*process
*physical environmental
*system values and norms
Organizational context :

 Management philosophy is the


first and foremost factor affect the
organization climate .
 If the company is wedded to such a
policy that its effectively utilizes
its resources both human as well
as non-human, then it can be
concluded that climate Is good .
 Manpower philosophy is generally
expressed by rules, regulation and
policy, etc.
Conti.....
The reaction of employees and the degrees to which
they welcome and accept the managerial philosophy is
very crucial to development of sound and favorable
organization .

The climate is highly favorable , when the existing


management techniques are such that employees goal
are perfectly matched to the ideal of the organization .
Organizational structure:
 Structure of the organization
represent another variable that
affect climate .
 It need no criterion that structure
is a framework that establishes
formal relationships and
delineates authority .
 The actual arrangement of the
hierarchy is also be consider for
affecting climate .
 Highly decentralized structure
result in sound of organization .
Cont.….
When the management feels the necessity of high degree
of employee input in the total output .

A management that has a strong participative decision


making will promote decentralization.

Management feels the necessity of maintaining greater


degree of consistency in operations regarding decision
making it will be wedded to centralized structure.
Process:
 In every organization certain
processes are vital so that it run .
 Communication, decision making,
motivation and leadership are some
of the important process in
management carries out its objective
 In all this process , the relationship
between superior and subordinate is
visible .
 Therefore the supervisor cannot
afford to ignore this visible interface.
Cont.…
 For . Ex:
* if we consider leader follower relationship in
leadership process, it is the leader choice .
* a leader has to be aware of the possible influence
of his action of the climate , when decision about the the most
appropriate supervisory technique for a given situation .
*it will be reflected adversely on the performance of
the employees.
*furthermore, when a leader mismatches this style to
the situation it might abort any hope of attaining organizational
objectives .
Physical environmental :
 The external conditions of
environment
 The size of location of the building
in which an employee works
 The size of the city, weather or the
place – all affect the organization
climate.
 An employee performing his job in
a relatively clean, quiet and safe
environment will undoubtedly
have a favorable perception of the
organizational climate.
Office décor, size and space a person has in doing the work
are the important factor that are to born in mind for this will
also affect the climate .

Noise has also been considered instrumental in influencing


the climate of organization .

High levels of noise bring bad feeling and leads to frustration ,


nervousness and aggression and will have negative affect
upon organization climate .

This noise will make organization change into market place .


Systems values and norms:
Every organization has discernible
and fairly evident formal value
system.
Where certain kind of behavior are
rewarded and encouraged and
certain kinds of behavior force an
individual to formal sanction .
The formal value system is
communicated to the employees
through rule , regulation and
policies .
Although in every organization the informal organization also
exists the value system of informal organization also exists
the value system of informal organization is very difficult to
ascertain .

But from the point of view of organization climate , both


formal and informal groups are very powerful in exerting
influence, on climate .
Changing organization climate :
 Can organizational climate be changed ?
 The answer is positively YES
 While fundamental changes in organization
climate are easily or immediately made,
research evidence demonstrates the facts
that change in climate is possible and has
occurred .
 In one study by MCCLELLAND and BARNHAM
It has been found that by making the manager
aware of the climate they had created,
significant changes in climate can be
successfully accomplished at group level .
 Steps will be definitely taken to bring about the desire
change

Sometimes, when there is something wrong with the existing


climate,

The changes were implemented and a follow up study


indicated definite improvement in some area with problem
remaining in some other area

Thus changes in climate are possible but they are gradual


rather than overnight occurrence.

Since climate is the manifestation of the attitudes of


organizational members it certainly takes some time
To change in the managerial philosophy,

Change in the rules, regulation and procedure, and

Reaction of human resource to change also takes time


Measurement of organizational climate:
 Trying to measure organizational
climate is an attempt to capture
the essence.
 Environment, order and pattern
of an organization or a sub-unite
 There are many questionnaires
designed to measure climate .
These structure survey
questionnaires contain usually
fewer than twenty five items are
given to employees to response .
Usually the questions are answered on some form of
a scale which may vary from one point to six point or
from one to ten point scale .

The numerical scale is normally accompanied by certain


descriptive terms for each point on the scale .

An example of the type of question and the scale that


might be used, is presented as under .

Example of two questionnaires items designed to


measure the “risk” property of organization climate .
Almost all questionnaires use slightly different
terminology but are very closely related in terms of
concept and dimensions.
Generally, studied will be the conformity,
responsibility standards, reward, organizational
clarity, warmth and support and leadership.
It is possible that organization may have more than
one climate .
Ex: if perceptions are measured then different groups
may have different perception .
Johnstone in his he found two climates in a study of
professionals in a small consulting firm.
He noticed that long term employees deemed the climate
flexibility , supportive, non-authoritarian and concerned with
integrating individual with organizational goal and generally
organize adaptive in its environment .

Whereas, newer employees saw as rigid, procedural, strongly


based on hierarchy and authority more impersonal and
emphasizing organizational goal.
Presented by : Harinimoorthy

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