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CORPORATE CLIMATE1

CORPORATE CLIMATE1

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Published by Shilpa Mishra

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Published by: Shilpa Mishra on Feb 04, 2011
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09/08/2013

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CORPORATE CLIMATE

According to Campbell, “corporate climate can be defined as a set of attributes specific to a particular organization that may be induced from the way that organization deals with it’s members and it’s environment. For the individual members within the organization, climate takes the form of a set of attitudes and experiences which describes the organization in terms of both static characteristics and behavior outcome and outcome-outcome contingencies.” According to Forehand and Gilmer,” climate consists of a set of characteristics that describes an organization, distinguish it from other organizations, are relatively enduring over time and influence the behavior of the people in it.” Characteristics/ Features Of Corporate Climate:1. General Perception- Corporate climate is the summary perception which people have

about the organization. It conveys the impression people have of the organizational internal environment within which they work.
2. Abstract and Intangible Concept- it is qualitative concept. It is very difficult to explain

the components of the corporate climate in quantitative or measurable units.
3. Unique and Distinct Identity- it gives a distinct identity to the organization. It explains

how one organization is different from other organizations.
4. Enduring Quality- it builds up over a period of time. It represents a relatively enduring

quality of the internal environment that is experienced by the organizational me mbers.
5. Multi-dimensional Concept- the various dimension of a corporate climate are individual

autonomy, authority structure, leadership style, pattern of communication, degree of conflicts and cooperation etc. Factors Influencing Corporate Climate:According to Litwin & Stringer:1. Organization Structure- rules , regulation, size, degree of centralization. 2. Individual Responsibility- feeling of autonomy of being one’s own boss. 3. Rewards- feelings related to being confident of adequate and appropriate rewards. 4. Risk & Risk Taking- perceptions of the degree of challenge and risk in the work

situation.
5. Warmth & Support- feeling of general good fellowship and helpfulness prevailing in the

work setting.

goals. The role of climate can be explained with the help of following figure:Managerial policies Employee characteristics. Satisfaction. differing opinions. Thus. Constraint System. better human relations and higher productivity.organizational factors can influence the behavior by helping the individual in forming a perception of the organization. which is a motivational variable directing human behavior.6.in this evaluations process. punished or ignored. good corporate climate is instrumental to higher employee satisfaction.as stimuli. This can be done by providing information to the employess about what kind of behavior will be rewarded. oth the physiological and psychological variables will be associated. By helping an individual to form a perception. The level of arousal will directly affect the level of activation and hence performance. Tolerance & Conflict. By acting as stimuli. 2. abilities Organization structure Employee outcomes. perceptions. Evaluation of self and others.degree of confidence that the climate can tolerate. Impact of Corporate Climate:There are four mechanisms by which climate affects the behavior of the employees:1.climate can operate as a constraint system in both the positive and negative sense. 4. commitment Organization technology Environmen t Organizational climate Corporate climate and effectiveness . Such evaluation will affect the human behavior. climate influences individual’s arousal level. 3.

.if it is present to esblish rules and regulations. The autonomy will lighten the burden of higher level executives.Dimensions of Corporate Climate:The important dimensions or components which represent the corporate climate are as follows:1. Individual Autonomy. Conflict Management. Organization Structure. The informal groups may benefit the organization also. It clarifies who is responsible to whom and who is direct to whom. 7. Employee’s morale will be low in the long run. the climate will be supportive. 4.the interpersonal relationships in the organization are reflected in the way informal groups are formed and operated. the climate will be characterized by achievement. but in some cases it may displace the goals of the organization.if the individual employees are given sufficient freedom to work and exercise authority. The employess will have to show the results or face the punishment.the corporate climate will depend upon how effectively these conflicts are managed. If not there will be an atmosphere of distrust and noncooperation. 2.control system may be even rigid or flexible. Dominant Orientation. it will result in efficiency in operations. Organization control system. 6. then the climate is characterized by control. Rigid control will lead to bureaucratic atmosphere in the organization. Interpersonal Relationships. 3. then there will be an atmosphere of cooperation in the organization.it serves the basis for interpersonal relations between superiors and subordinates. Task oriented or relations oriented management.regulation. If effectively managed. If the mangers are relations oriented.task oriented approach means the leadership style will be autocratic. There will be team-spirit in the organization. If the orientation is to produce excellence. Centralization cause less participation in decision making while decentralization of authority create the atmosphere of participative decision making. 5. There will be minimum scope for self.

Concerns for people. suggestions and reactions. the meritorious employees will be discouraged. management should show concern for the people. If individuals feel free to try out new ideas without any fear they will not hesitate in taking risks.involvement of employeesin decision making by management will make the employees committed to the organization and also more cooperative. 9. If there is biasness. 4. otherwise they feel frustrated. When these changes improve working conditions of the employees. Risk Taking. It should work for th welfare of employees and the improvement in their working conditions. Technological Changes.generally employees resist any innovative changes. Communication. 5.8. .the communication system. Participative Decision making.there should be two way communication so that employees and managers could undersand each other. Change in policies.it is a time consuming process but the changes will be long lasting if the worker see the changes in policies and rules in favourable to them. Such an atmosphere will be conducive to innovative ideas.how members respond to risks and whose help is sought in situations involving risk are important in any organization. procedures and rules. It will be better that the management adopts innovative changes in consultation with the employees. 2. 10. there will be an atmosphere of competition among the employees. For developing a sound corporate climate. Proper communication system means that the subordinates are in a position to express their ideas. 3. the change will be easily accepted. the flow of information.the management should be interested in Human Resource Development. Effective Communication system.if the reward system is directly related with performance and productivity. it’s direction and dispersement and its type all are important determinants. Rewards and Punishment. Developing a Sound Corporate Climate:The following techniques are generally helpful in improving corporate climate1.

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