List the Importance of Organizational Culture

Introduction

Organizational Climate (sometimes known as Corporate 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.

Definition

• According to Renato Taguiri, “Organizational Climate is a relatively enduring quality of the internal environment that is experienced by the members, influences their behavior, and can be described in terms of values of particular set of characteristics of the organization”.
• Organization Climate “refers to perceptions of persons in the organization that reflect those norms, assumptions, and beliefs.”
• Organizational Climate is a relatively enduring quality of the internal environment of an organization that.
• It is experienced by its members.
• Influences their behavior.
• Can be described in terms of the values of a particular set of characteristics of the organization.

Determinant’s/ Factors Affecting Organizational Climate

1. Economic Health
2. Organizational Policies And Procedures
3. Organizational Style
4. Organizational Structure
5. Leadership Styles
6. Managerial Values And Ethos

Factors that influence Organizational Climate

• Involvement
• Co – worker cohesion
• Supervisor Support
• Autonomy
• Task Orientation
• Work Pressure
• Clarity
• Managerial Control
• Innovation
• Physical Comfort

Dimensions of Organizational Climate

1. Individual Autonomy- Enjoy the power of making decisions by self.
2. Position Structure- Employee as to follow rules, regulations and procedures.
3. Reward System- Based on performance.
4. Support System- Organization extends required support and encouragement to employees.
5. Progress and Development- Organization encourages new ideas and applications methods to employees.
6. Conflict – An organization evincing higher level of tolerance and resolution of employees’ conflict.
7. Control- Employee behavior is regulated and monitored to enable to behave in a desired manner.
8. Risk Taking- Shares the responsibility and tries to bring new ideas.

Importance of Organizational Climate

1. Facilitates Performance
2. Impacts on Employee Behavior
3. Increases Revenue
4. Lowering Cost
5. Improves Customer Loyalty

Measuring Organizational Climate

• • Structure
  • Responsibility
  • Reward
  • Risk
  • Warmth
  • Support
  • Standards

According to Likert organizational climate can be measured through:

• • Leadership Processes
  • Motivational forces
  • Communication
  • Interaction-influence process
  • Decision-making
  • Goal setting
  • Control