Impact of Organizational Climate on Employees
Organizations, at present times, are facing irresistible challenges that need to be handled with utmost care and confidence by the management of such respective business enterprises. As the challenges are mostly unknown and most of them are not specific in origin, coping with the drawbacks is becoming more complex in front of any particular organization. A commending organizational climate allows the employees to deliver a positive attitude and behaviours, which helps any business enterprise grow and prosper. Organizational climate is identified as the phenomenon where the perceptions associated with the employees regarding their business or workplace culture get reflected according to the internal and external setting. Employee commitment and organizational climate are interrelated and play a substantial role in bringing success to any particular business enterprise. Any business enterprise having a proper organizational climate will pave the way to boost the morale of the employees and motivate them to improve their performance, attract fresh talent, upgrade the profile of the company in terms of efficiency and effectiveness, and fetch better returns from the market in terms of profits and many more. This particular research paper will address the effectiveness of developing a good organizational climate following the employees’ commitment. Thus, guaranteeing job satisfaction and perceived organizational performance.
Extant literature initiates that a positive organizational climate acts as a reason to enable greater levels of commitment from the employees. The focus is to build a positive attitude by implementing the way towards creating perceived organizational performance. The behaviours of the employees delivered in the workplace of a particular business enterprise is found to be the result of personal characteristics or the way they perform. A good organizational climate allows the management of a certain company to consider every viewpoint of the employees by figuring out the loopholes – comprehending a positive work environment and employee behaviour. A great organizational climate is a route the employees identify to perceive their purposes. Famous researchers Robbins and Judge opined that the phenomena in the form of organizational climate are considered a team effort on behalf of defined cultures at the level of any organization. According to the author’s findings, concepts like power and affiliation, job satisfaction, aggregate organizational effectiveness, and the performance of the employees fall under the category of dependent variables, and consequences as a result of the organizational climate are regarded as the independent variable. The poor organizational climate would result in a decline in the performance of the employees. It might even affect the overall capability of the organization to practice efficiency in operations within the market they operate. Any employee remains committed to their work because of a positive climate within the workplace. However, suppose they find any difficulty accommodating the organizational climate. In that case, job satisfaction automatically starts to decline, affecting the individual’s work and hampering productivity and efficiency in context with the organizational performance.
As an aggregate approach, organizational climate speaks about different recurring patterns associated with the employees’ attitude and behaviours or feelings, which are categorized based on the whole life of any organization. Organizational climate can also be referred to as a barometer used to judge the employees’ sentiment regarding the policies being implemented by the organization they are serving for. When the readings of the barometer are analysed, the employers or the management of any particular business enterprise can decide about the practices or policies which need to be incorporated within the workplace and aligned with the services of the employees to fulfil the mission or vision for which such an establishment was formed.
Interrelation between Employee Commitment and Organizational Climate
The concept of organizational climate can also be identified as the perceptions about the employees working for any particular business enterprise and the way they view the company’s processes, practices, and policies. A basic understanding of the organizational climate is crucial because it enables the management to decide the employees who are efficient in multitasking and retain them for a longer time. A great organizational climate brings the mood of clarity in front of the employees and enables a positive mind-set among the workers above the company’s top management. Due to transparency in the operations created due to a positive organizational climate, the workers can easily trust the top management; thus, automatically, they remain highly productive due to upgraded motivational attributes. A proper organizational climate makes the workers more flexible and capable of handling any challenges by remaining more realistic and paves the way in front for the management of any organization, where minimal supervision is required.
A great organizational climate has the power to determine the environment of the work where the employees can feel satisfied or vice versa, as it is quite sure that a great organizational climate act as the reason for the build-up of proper satisfaction among the employees; therefore, organizational climate should be directly linked towards performance and efficiency of any employee. A great theory of organizational climate suggests that the involvement of any organization enjoys a strong influence on the perceptions of the employees and the behaviour shown by them. A positive organizational environment enables the workers to get influenced by the work process and the rules and regulations of any enterprise, thus familiarising themselves according to the company’s requirements with full commitment and satisfaction.
A great organizational climate depends upon four different types of approaches, which can be identified in the following forms
- The cultural approach – The cultural approach to organizational climate is one of the most important details which point toward the fact that inter-subjectivity among the members enables the arousal of a positive organizational climate. As a result of interaction occurring due to proper organizational culture regarding a certain context, the cultural approach views how any particular business enterprise behaves according to its corporate structure and culture within the work environment. The cultural approach is often understood as the values and principles that need to be highlighted to each employee and enable them to understand the aim and purpose of the existence of a certain company.
- The perceptual approach – The perception approach of organizational climate speaks about having defined patterns of attitude or feelings which are often highlighted concerning the actions undertaken by any particular business organization. The behavioural or attitudinal patterns must be recurring in nature. The perceptual approach also speaks about the requirement to develop an organizational climate in a way that is stable and deep and remains very easy to access by new employees.
- The Interactive approach – The interactive aspect or approach of organizational climate emphasizes the build-up of a positive social relationship between employer and employees of any organization. The interactive approach helps the management of any company communicate various opportunities and enables them to find a way for personal growth and development. In short, the interactive approach facilitates the proper growth of an organization and binds the employees for a longer period.
- The Structural approach – According to the structural approach, a proper structure is crucial for any organization to grow and expand. Planning communication and reporting is crucial to monitor each employee’s performance, which can be possible only if any particular business enterprise practices a proper structure.
Thus all the approaches that have been discussed in this section of the research paper allow any particular business entity to grow and flourish by accommodating every kind of market opportunity.
The concept of organizational climate came into force during the year 1940 to learn different patterns of how an entity functions and the impact created upon the employees due to such type of organizational climate or workplace behaviours that is being practiced. There are different kinds of organizational climates as described below:
- The people-oriented climate
This type of organizational culture accommodates a Particular set of core values that are found to be put under one onus. Such organizations seem to be caring about the concerns related to the employees, serving them and focusing on building a “people oriented climate” .
- The rule-oriented
This kind of organizational climate provides benefits that are featured where attention and burden are divided among the members in a way where results are derived according to the rules.
- Innovation oriented
This particular kind of organizational climate focuses on new technology, processes and techniques to be implemented to facilitate the degree of innovation in a wider context. This will enable the employees to remain attached to the organization longer.
- Result oriented
Result-oriented organizational climate is focused on giving ideal preference to all the values extracted from the business environment. Thus, the employees’ actions can be refined to achieve better results for a positive result-oriented climate.
Different Types of Organizational Climates
Organizational climate has a set of characteristics that the users of this report need to analyse in a deep context.
General expression – “Organisational climate” is a form of general expression related to the perceptions produced by the individuals regarding the working infrastructure of a particular business enterprise. The impression and thought process that the workers hold about a particular organization where they are rendering their services and sharing their views about the internal environment are collectively found to be falling under the category of general expression.
Unique identity – Practising a successful “organizational climate” allows a business enterprise to secure its position within the market and attain a distinct identity that enables such an establishment to gain different types of competitive advantages from the market concerning its competitors.
Multidimensional concept – A good organizational climate is better known as a multidimensional approach with numerous dimensions, leadership style, and degree of conflicts, autonomous nature, and an authoritative structure.
Intangible concept – This is yet another important characteristic that a good organizational climate must have to facilitate the employees to commit their services and remain a part of the organization for a longer period. The intangible concept of organizational climate allows any respective entity to elaborate its components on behalf of measurable units.
Enduring quality – This characteristic focuses on the time required for building the organizational climate feasible for the employees. Representation of proper quality of the environment and organizational climate that remains enduring for the employees provides ultimate success to any individual business establishment by making every opportunity accessible and making the management develop better relationships with the employees and a holistic approach to performing operations under one roof.
The organizational climate being a continuous process, might get affected for several reasons, which may shift the commitment level and engagement of the employees of any particular establishment.
- The structure that a particular business enterprise follows according to the regulations, constraints, and rules is essential to analyse.
- Feelings related to helpfulness within any work environment.
- The conflict level and the tolerance level of the employees regarding different types of organizational changes proposed by the management is yet another important factor that might affect organizational climate on a vivid note.
- Perceptions of risk within the workplace.
- Various opportunities can create severe Impacts in bringing personal changes when working with any competent superior. It can also be experienced when working with very cooperative individuals.
- The process of operation within any organization.
- The vision or the aim for which any organization has been incorporated follows the organization’s context.
- The decision-making process and leadership styles also have the power to process and create the severe impact that may be directed towards the organization’s climate. The degree and power of centralization also fall under this category and have immense power to affect the organizational climate of a particular organization, making it critical for the management to collaborate the work effectively among various employees.
- Some other factors that have the impact of organisational performance potential to affect the organisational climate of a said business enterprise remain the degree of physical space created as a result of employee safety.
- Lastly, organizational values are directly linked with the organizational climate. Hence, it becomes crucial to manage the functions accordingly by the top hierarchy of a company to frame a better reputation in front of the workers to influence them to remain highly committed to the organization they are serving. Delivering them a relative amount of job satisfaction to boost their morale for work is the key to attaining positive feedback from the employees.
A great organizational performance creates a space for the employees to remain motivated and feel satisfied. In contrast, if the organizational climate created by any business enterprise seems to be incorrect in front of the workers, then dissatisfaction and disharmony among the employees are the common scenarios. Positive and excellent work please condition improves the workers’ motivation level and boosts them to upgrade their quality of performance. Satisfaction related to the job is completely linked with efficiency levels. Without proper collaboration between the two attributes, reduction in turnover or decreased profitability of the situations that an organization needs to encounter. Organizational climate directly affects the employees’ performance because of the attitudinal changes as a result of a shattered working environment. A consistent organizational climate is very helpful in predicting human performance. In contrast, an inconsistent climate of the organization deliberately has the employee’s quality of production and efficiency. It ultimately creates a troubling situation in front of the operational path of a company.
Organizational climate is a continuous process which the help of the following ways can develop:
- Identify each state of the organizational climate.
- Raising the awareness related to the mission of any organization.
- Identifying different factors that help motivate the people.
- Enhancing delegation of the tasks.
- Upgrading Team cooperation
Conclusion
Completion of the research paper concludes that the management of any business enterprise must ensure that the organisational climate focuses on improving the quality of intrinsic motivation related to the employees. Creating a holistic environment can be transformed to make the workers more committed to their work. The top management must always strive to support every motive undertaken by the employees to benefit the organization and create room for better workplace culture and creativity.
References
Al Shobaki, Mazen J., Samy S. Abu-Naser, Youssef M. Abu Amuna, and Suliman A. El Talla. “The Level of Organizational Climate Prevailing In Palestinian Universities from the Perspective of Administrative Staff.” (2018).
Bracarense, Carolina Feliciana, Nara dos Santos Costa, Maria Beatriz Guimarães Raponi, Bethania Ferreira Goulart, Lucieli Dias Pedreschi Chaves, and Ana Lúcia de Assis Simões. “Organizational climate and nurses’ turnover intention: a mixed method study.” Revista Brasileira de Enfermagem 75 (2022).
Chanpoom, Nuengrutai, and Watcharapong Intrawong. “The Influence of Strategic Leadership and Organizational climate on Organizational Commitment of Savings Cooperative Employees, Thailand.” In INTERNATIONAL ACADEMIC MULTIDISCIPLINARY RESEARCH CONFERENCE IN VIENNA 2019. 2019.
Ginting, Sunardi. “The Effect of Organizational Climate and Job Satisfaction on the Formation of OCB in Marketing Staff of PT. AJMI Pontianak Branch.” Journal of Asian Multicultural Research for Economy and Management Study 2, no. 4 (2021): 76-83.
https://www.marketing91.com/organizational-climate/
Kurnaedi, Endang, Kania Agustina, and Otong Karyono. “Strategy for Improving Service Performance through Organizational Culture and Climate.” Budapest International Research and Critics Institute-Journal (BIRCI-Journal) (2020): 1360-1368.
Melati, Berti Anggun, Anoesyirwan Moeins, and Martinus Tukiran. “The Relationship Between Organizational Climate And Work Motivation To Organizational Commitment In Pt. Citra Abadi Abadi.” International Journal of social, Policy and Law 2, no. 2 (2021): 22-36.
Michael, M. Eckermens, and P. Jegan. “Organizational Climate: A study in Higher Secondary Schools in Kanyakumari District.”
Moslehpour, Massoud, Purevdulam Altantsetseg, Weiming Mou, and Wing-Keung Wong. “Organizational climate and work style: The missing links for sustainability of leadership and satisfied employees.” Sustainability 11, no. 1 (2018): 125.
Parejo, Ignacio Barrios, Hugo G. Hernandez Palma, Leonardo Niebles Nuñez, William Niebles Nuñez, and Alma Rodero Acosta. “The Organizational Climate and its Impact on Business Competitiveness: Perception of Colombian SMEs.” Contemporary Engineering Sciences 11, no. 54 (2018): 2669-2677.
Shbail, M., and A. Shbail. “Organizational climate, organizational citizenship behaviour and turnover intention: Evidence from Jordan.” Management Science Letters 10, no. 16 (2020): 3749-3756.
Tangdigling, Delia Esiana, Idayanti Nursyamsi, and Ria Mardinana Yusuf. “The Effect of Situational Leadership and Work Ethics on Employee Performance through Organizational Climate as Intervening Variables at Gowa Agricultural Development Polytechnic.” Hasanuddin Journal of Business Strategy 1, no. 4 (2019): 43-50.
Wahyu, Aprian, Fatwa Tentama, and Erita Yuliasesti Diah Sari. “The role of servant leadership and organizational climate on organizational citizenship behavior with job satisfaction as mediator.” International Journal of Scientific and Technology Research 8, no. 10 (2019): 1134-1141.
Yusnita, Nancy, and Falentina Widodo Sunaryo. “Improving Organizational Citizenship Behavior Through Strengthening Organizational Climate and Job Satisfaction.” IJMIE: international Journal of Management, Innovation, and Education 1, no. 1 (2022): 01-09.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
