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 Vol 5 Issue 11 May 2016 ISSN No :2231-5063

ORIGINAL ARTICLE
International Multidisciplinary
Research Journal

Golden Research
Thoughts
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 Welcome to GRT
RNI MAHMUL/2011/38595 ISSN No.2231-5063
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ISSN: 2231-5063 Impact Factor : 3.4052(UIF) Volume - 5 | Issue - 11 | May - 2016

GRT Golden Research Thoughts

ORGANIZATIONAL CLIMATE AND CULTURE

Ranjeet Kumar Agarwal1 and Anjali Siwal

2

1
Assistant Professor,Department of Commmerce,
Daulat Ram College, Delhi University.
2
Assistant Professor,Department of Commerce,
Gargi College, Delhi University.

ABSTRACT
The organizational climate and culture are the powerful tools that have tremendous effect on
the morale, performance and job satisfaction of the employees in any organization. The climate and
culture play a vital role in an organization as these are usually associated with the perceptions, ideas,
values, beliefs and most importantly the behavior of its employees. A sound organizational culture and
climate encourages a cooperative attitude towards their work, which is most essential for the
organization in the task of achieving its goals and objectives that also benefit the employees.The
organizational culture is a set of important perceptions, notions and behaviors that the members of a
community share in common. It consists of a basic set of values, ideas, preferences and ethics, code of
conduct, principles and beliefs, reinforced by logical expectations and assumptions as well as
responsive attitudes and ethical norms which create distinctiveness among human groups. Similarly, in
an organization, the perception and behavior are shared by the members. Culture is a pattern of basic
assumptions which are conceptualized and developed by people. According to Bowditch and Buono,
"Organizational culture is connected with the nature of beliefs and expectations about organizational
life, while climate is an indicator of whether beliefs and expectations are being fulfilled." It is a
manifestation of the attitudes of organizational members towards the organization. Culture and
climate are the vital requisites and are inherent in the life of every organization that not only achieves
its own goals and objectives but also benefits the employees' working in it. According to Campbell,
organizational climate is "a set of attributes specific to a particular organization that may influence the
way that organization deals with its members and its environment. For the individual members within

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 ORGANIZATIONAL CLIMATE AND CULTURE

the organization, climate takes the form of a set of attitudes and expectancies which describe the
organization in terms of both static characteristics (such as degree of autonomy) and behavior-
outcome and outcome-outcome contingencies". An organization’s success is determined by the skills
and motivation of the employees. Competent employees are the greatest assets of any organization.
Given the opportunities and by providing the right type of climate in an organization, individuals can be
helped to give full contribution to their potentials, to achieve the goals of the organization, and thereby
ensuring optimization of human resources. The purpose of this paper is to investigate the impact of
organizational culture on organizational climate in the process of change. After exploring the impact of
organizational culture on organizational climate through distinguished culture’s factors, article
examines the importance of these factors and, what is more, presents the case study analyzing
organizational culture determinants impact on organizational climate.

KEYWORDS :Organizational behavior, organizational effectiveness, organizational values, levels of

analysis, Human Resource Development Climate, HRD Mechanisms.

INTRODUCTION
How Culture Affects Work
Even before the employment, people have a tendency to develop some basic values that
become so ingrained that employees resist for any change in an organization. It should be remembered
that the culture 'off-the job' has a profound influence related to the 'on-the job' performance of
individuals in the organization. For example, for an employee, freedom may be a 'voice' in the general
meeting and it may also mean the right to work without any restriction. Employees basically seek
security as they prefer full and steady employment rather than an unconfirmed service which might
cause mental strain to their minds. As long as they are economically secure, they may not be able to
contribute effectively to the goals of the organization. Another factor that affects people at work in an
organization is the opportunity to expect a good remuneration and a successful career. Impact of
Culture on Organizational Climate No matter how good the organization does in hiring people, new
employees are not fully adaptable to the organizational culture, may be because they are least familiar
with it. New employees are potential enough to disturb the beliefs and customs that are prevailing in an
organization and hence forth the organization will help new employees adapt to its culture. This
process of adaptation is called socialization. It has three stages. The first stage, called the Pre-arrival
Metamorphosis Encounter, encompasses all the learning that occurs before a new member joins the
organization and in the second stage, the new employee observes what the organization is really like
and the likelihood that expectations and reality may diverge. In the third stage, relatively long-lasting
changes take place. The new employees upgrade themselves to the skills required for their new roles
and make the adjustment to their work groups. If the prevailing culture is unfavorable to the
organizational effectiveness, it needs to be changed. A few principles available for this purpose and
some of them are within the central management and some result through external forces. Since
culture can be learned, it can also be unlearned through reward system. It establishes and reinforces
specific cultural behavior and therefore changes in culture can be initiated and supported by change in
corporate reward system. The climate of an organization influences, to a great extent, the performance
of the employees because it has major impact on motivation and job satisfaction of an individual
employee Organizational climate determines the work environment in which the employee feels
satisfied or dissatisfied, and influences the efficiency of the employees. According to Forehand and
Gilmer, "Organizational climate is the set of characteristics that describe an organization and that (a)

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 ORGANIZATIONAL CLIMATE AND CULTURE

distinguish one organization from other organizations; (b) are relatively enduring over time and (c)
influence the behavior of the people in the organization." Organization climate can operate as a
constraint system in both the positive and negative sense. Information is provided to the employees
about what kind of behavior will be rewarded, punished or ignored. These behaviors can be influenced
by varying degrees of rewards and punishments. Such a constraint system would influence the behavior
of those people who are most interested in those specific values, which are assigned to different
behavioral outcomes. Human resource development in the organizational context is a process by which
the employees of an organization are helped in a continuous, planned way to:
(a) Acquire or sharpen capabilities required to perform various functions associated with their present
or expected future roles;
(b) Develop their general capabilities as individuals and discover and exploit their own inner potentials
for their own and/or organizational development processes; and
(c) Develop an organizational culture in which supervisor-subordinate relationships, team work and
collaboration among sub units are strong and contribute to the professional well-being, motivation and
pride of employees.
The positive HRD climate renders the existing systems more effective and makes the
organizations more receptive to the introduction of relevant additional system. Organizations differ in
the extent to which they have these tendencies. Some organizations may have some of these
tendencies, some others may have only a few of these and a few may have most of these. Developed
38-item HRD climate questionnaire to survey the extent to which development climate exists in
organizations. These 38 items assess General climate, OCTAPAC (Openness, Confrontation, Trust,
Autonomy, Proaction , Authenticity and Collaboration) culture and implementation of HRD
mechanisms.
Due to globalization business markets are becoming more and more competitive, but it is
obvious that some organizations are more effective than others. Many international researches
confirmed that relations between employees and developing organizational culture, is key to success.
Therefore, according to the authors’ standpoint it is important to look into correlation between
organizational climate and organizational culture described by thought leaders. James and James
(1989) define organizational climate as a multidimensional construct that encompasses a wide range of
individual evaluations of the work environment. Glisson and Lawrence (2011) mention difference
between psychological and organizational climate. Alteration in markets that occurred because of
economic, political and cultural changes often makes it difficult for business organizations to adapt to
new conditions (Soriano, 2012). For success of organizations, change agent is required to be able to
manage changes correctly, to be advanced and to follow new tendencies in business, to offer
consumers the newest products and services as it is all required to succeed in nowadays’ competitive
environment. For instance, we need to look into change and role of change agents to more smoothly
manage interactions between organizational culture and climate. Avila et al. (2012) claim that change
management is an instrument that helps to promote sales. According to Vora (2013) change
management is vital when implementing areas for improvement to achieve success in business. No
doubts, change management and role of change agent might be considered as a method which is used
in assistance to change organization’s policy and structure to avoid problems in the future. Hence,
change impact on climate in organization is examined in this paper.

FACTORS INFLUENCING ORGANIZATIONAL CLIMATE

Richard M Hodgetts has classified organizational climate into two major categories, namely

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 ORGANIZATIONAL CLIMATE AND CULTURE

overt factors and covert factors. He has given an analogy with an iceberg where there is a part of the
iceberg that can be seen from the surface and another part that is under the water and cannot be seen.
The overt factors are the visible parts that can be observed and measured and are called the overt
factors and the factors that are not visible and quantifiable are called covert factors. Measurement of
Organizational Climate and Culture Measuring the climate and culture of an organization would be an
attempt to capture the essence of environment, order, social context and pattern of the organization. It
is possible that organizations may have one climate and culture. For example, if perceptions are
measured then different groups may have different perceptions. Johnston in his research found two
different climates in a study of professionals in a small consulting firm. He noticed that long-term
employee deemed the climate flexible, supportive, non-authoritarian, which is concerned with
integrating individual organizational goals which can be generally adaptive in its environment, whereas
newer employee saw a rigid procedure which is strongly based on hierarchy and authority that is more
impersonal when it is emphasized on organizational goals and objectives. In a research it has been said
that climate differs with respect to hierarchy and to the degree of environmental uncertainty. The
following example helps you understand the importance of culture and climate in an organization.
There are many available concepts of organizational climate, but most appropriate concept for
fulfilling the research task would be one stated by Alvesson and Berg (1992) that a “considerable
proportion of what is currently regarded as organizational culture could benefit from being
characterized as organizational climate instead”. Hence one of most important organizational climate
aspects is organizational culture. Ali and Patnaik (2014) mention that although climate has usually been
used to describe organizations, the term can also be used to describe people’s perceptions of groups or
job assignments in which they work. There are five main elements that show the main directions for
creating an organizational culture model:
*Employees’ satisfaction
*Adaptability
*Involvement
*Mission
*Consistency.
To issue guidelines for organizational culture formation a change agent is needed. According to
Lunenburg (2010) change agent is changing the organizational structure so as to improve output and
efficiency. The change agent uses operations research, systems analysis, policy studies, and other
forms of analytical approaches to change the Organization’s structure or technology. For determination
of organizational culture influence on organizational climate and for identification on place where
changes should be implemented theoretical model has been developed by authors Theproposed
model shows where the change agent should be involved, factors and relations influencing
organizational climate in this model are listed from literature. According to this model a result is
changed organizational climate, but in order to assess the significance of each mentioned factor, an
empirical study has been carried out. With an aim to look into new ways how to more successfully
manage change, authors concluded that impact of organizational climate is very critical, considering
organizational cultural aspects. Parameters in the model are listed in alphabetical order.
As we can see in Table one there are five main factors affecting the change of organizational
climate. They are as follows:
*Adaptability;
*Consistency;
*Employees’ satisfaction;

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 ORGANIZATIONAL CLIMATE AND CULTURE

*Employees’ involvement;
*Mission.
In other words, organization’s key managers who are planning to make changes in
organization’s climate should pay attention on these factors firstly.
Asserts the culture creates a frame of reference in which the organization management’s
considerations and reasoning circulate in the process of decision-making concerning the organizational
structure model. When managing change in international business both national and organizational
culture must be handled. In local markets more the efficiency of national culture should be examined.
Schein (2004) claims that organizational culture is both a dynamic phenomenon that surrounds us at all
times, being constantly enacted and created by our interactions with others and shaped by leadership
behavior. It is set of structures, routines, rules, and norms that guide and constrain behavior. Ovidiu-
Iliuta (2014) adds that main element that helps to attain good performance is to develop a strong
organizational culture. Moreover, the culture can even represent a barrier when trying to implement
new strategies.

Interpretation and conclusion

The organizational culture and the concomitant climate play a major role in the performance of
the employees and the success of every organization. There is a very strong effect of the organizational
culture and climate on the morale and satisfaction of the employees of the organization. The culture
and climate reflect the employees' perception of their organization. Needless to say, each organization
has its own organizational climate and culture that clearly distinguish it from other organizations.
Sound organizational culture and climate, as the organizational theoreticians and researchers
unanimously agree, is extremely important for the organization to achieve its goals, In this research
organizational culture factors influencing organizational climate have been assessed and theoretical
model has been developed. Research results confirmed that stability, reward system, job satisfaction,
team orientation, empowerment, core values and agreement are most important organizational
culture factors influencing organizational climate. During transformation phase organizations must
look into main organizational culture parameters and more actively work with factors in each
parameter group. The research showed that employee’s satisfaction is one of the most important
factors for making changes due to the fact that unsatisfied employees not support, but resist changes. It
is recommended for future researches to pay more attention to analysis of impact of each parameter
on company climate and resistance to changes as well as their correlation among factors. It is not an
easy task for management and organization to design and adapt organizational climate effectively
without the support and dedication from employees’ themselves. However, management and
organization can plan and design the best-fit approach to remain valid to all involved parties especially
the employees. It is not just the monetary based benefits human capital today; there are other aspect
that motivates and enhances their job involvement and affective commitment such as opportunities at
work. The passionate employee will be able to contribute more efficiently towards the growth of the
organization. An excellent organizational will enable an enhanced economic development.

REFERENCES:
1. Allen, J., and Meyers, J.P. 1997. The measurement and antecedents of affective, continuance and
normative commitment to the organization. Journal of Occupational Pyschology, 63: 1-18. .Dunham, R.
B., 1984. Organizational behavior: people and processes in management. Michigan: Irwin
2.James, L. R., & Jones, A. P., 1974. Organizational climate: A review of theory and research.

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 ORGANIZATIONAL CLIMATE AND CULTURE

Psychological Bulletin, (81), 1096-1112.

3.Kraut, A. I., 2006. Getting action from organizational surveys: New concepts, technologies and
applications. San Francisco: Jossey-Bass.
4.Luthans, F. and Youssef, C., 2004. Human, social, and now positive psychological capital management:
Investing in people for competitive advantage. Organizational Dynamics, 33 (2): 143-60.
5. Human Resource Management” – S.Mizra
6. Acs, Zoltan J. and David B. Audretsch. 1988. “Innovation in Large and Small Firms: an Empirical
Analysis,” American Economic Review, 78(4), 678-690.
7. Aswathappa.K (2005), Human Resource Management, Text and Cases, 4th Edition, Tata McGraw-Hill
Publishing Company Limited, New Delhi.
8. Aswathappa.K (2005), OrganisationBehaviour, Text and Cases, 6th Edition, Himalaya Publishing
House, New Delhi. 5. V S P. Rao (2005), Human Resource Management, Text and Cases, 2nd Edition,
Published by Anurag Jain, New Delhi.

Ranjeet Kumar Agarwal

Assistant Professor , Department of Commmerce , Daulat Ram College,
Delhi University.

Anjali Siwal
Assistant Professor , Department of Commerce , Gargi College,
Delhi University.

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