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University of Novi Sad, Faculty of Technical Sciences, Novi Sad, 2021.

ORGANIZATIONAL CLIMATE CONCEPT FOR CREATIVITY

AND INNOVATION
Name Surname1

Abstract: This paper describes the organizational climate as a phenomenon discussed

in the literature. The concept of organizational climate is considered an important
factor that affects the performance of the entire company. Creativity and innovation are
some of the most important qualities of today when it comes to employees. HR
management has the task of taking advantage of a phenomenon such as organizational
climate and improving people’s performance.
Key words: organisational climate, employees, creativity, innovation

Introduction

What makes a company is its team of people, and it depends on that team,
on its way of functioning and thinking, whether and how successful the company
will be in its business. The characteristics of the company's team depend on the
case. Suffice it to say that it is a group of people with different education,
abilities, occupations, characters and temperaments, who strive for the realization
of a common goal - the goal of the company. The efficiency of the team depends
on individual and group factors. Whether a team will be efficient and successful
depends, among other things, on the organization in which it is formed, on the
established norms in terms of formal and informal rules that the group develops,
on team members, group homogeneity, etc. The management of the company has
the role of creating such an atmosphere in the company that each individual feels
that he belongs to the organization, that he is welcome, that he is needed and
useful. For the quality development of a company, there must be preconditions
for innovation to a certain extent, as well as the presence of behavior or activities
related to innovation. (Olsson et al, 2019) Such a feeling is one of the main
motivators of employees to provide high performance, enhances employee
safety, as well as loyalty to the company. That part represents the organizational
climate, and if such an atmosphere is realized in the company, success is
inevitable.

The concept of organizational climate

1
Faculty, e-mail
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University of Novi Sad, Faculty of Technical Sciences, Novi Sad, 2021.

Organizational climate as a concept in the literature appears in moments

when more and more attention is paid to the human factor in the development of
organizations and society as a whole, that is, when the focus has shifted from
machines and other resources to people. Human resources have become the
biggest factor in the business success of organizations and the economy. At that
time, research is going in the direction of creating better conditions for people's
work and discovering which are the factors that will contribute the most to the
improvement of people's work and thus to business success.
The climate concept is used to refer to a set of variables that represent
"norms, attitudes, feelings and behaviors that prevail in the
workplace."(Thiruvenkdam et al, 2018) Some have viewed the concept of
climate as an interfering variable that can be affected by external and structural
variables, while at the same time having an impact on organizational outcomes,
such as company performance and employee performance and behavior. Indeed,
climate is characterized as an external expression of the organization's culture
(representing employees' perceptions of the organization's policies, practices and
procedures that in turn regulate employee exchange and behavior.(Shanker,
2012) A number of key conceptual and methodological issues have emerged
regarding the concept of organizational climate, some resolved, and others are
still under discussion. Organizational climate is differently observed and
definede. At the very beginning of the research of the organizational climate, it
was defined completely differently. It is presented as a cognitive theory that
defines the organizational climate as a psychological perception meaningful
molar descriptions that people can agree with characterize systemic practices and
procedure.(Madhukar, Sharma, 2017) It is worth noting that people they perceive
climate because molar perception functions as a frame of reference for
achievement some similarities between behaviors and systemic practices and
procedures.
Organisational climate is viewed as an intervening variable which may be
affected by a set of external and structural variables, and simultaneously has an
influence on organisational outcomes such as firm performance and employee-
related performance and behavior. Measures of organisational climate generally
consist of a one item measure or a suite of variables that represent the norms,
attitudes and feelings in a workplace. Indeed, climate has been characterised as
an outward expression of an organisation’s culture (which represents employees’
perceptions of the organisation’s policies, practices and procedures which in turn
regulate employees’ exchanges and behaviours.(Ekvall, 1996) A number of key
conceptual and methodological issues have emerged regarding the concept of
organisational climate, some of which have been resolved and others that are still
the subject of debate. One of the debated areas is the notion of ‘issue-specific’
organisational climates.
Bogdanovic (2003) define the organizational climate as a complex concept
of intangible resources of the organization, it is one of the forms of social
climate, because the organization is a higher form of social group, and according
to it consists of a psychological climate, as an individual trait organization, but
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University of Novi Sad, Faculty of Technical Sciences, Novi Sad, 2021.

also its characteristic organizational feature which is the manifestation of

organizational culture Because the organizational climate arises in the interaction
of personality characteristics of members of the organization and job
requirements, it can also be defined as the thoughts and feelings of employees
about different aspects of the job.
Madhukar, Sharma (2017) are of the view that organizational climate is the
recurring patterns of behavior depending on the values and atmosphere
prevailing in the organization from time to time. Organizational climate is the
recurring patterns of behavior, attitudes and feelings that are indicative of life in
the organization which are more related to atmosphere and values.
The psychological climate from the psychological aspect is defined as
observed and repetitive patterns of behavior, attitudes, and feelings that
characterize life in the organization, and exists independently of the perception
and understanding of members of the organization (Wong FongYee, 2014)
Nowadays the concept of organizational climate is very popular. It depicts
the entire organization and its internal processes. By studying the climate in an
organization, we can find out things such as: work atmosphere, relationships
between people, the degree of motivation of employees, etc. the concept of
organizational climate has been studied more since the focus in organizations
with resources in the form of materials and money in people as the most
important resource for the development of the economy and society as a whole.
As well as the very definition of organizational climate, and the
measurement of organizational climate in the literature is viewed differently.
Wallace, (1999) looks at the climate through organizational efficiency, behavior,
and employee motivation. He states the following as dimensions of the climate:
(1) facilitation and support for leadership; (2) working group cooperation,
kindness and warmth; (3) conflict and ambiguity; (4) professional and
organizational spirit; (5) the challenge, importance and diversity of work; and (6)
mutual trust.
The concept of climate can be divided into two complementary constructs,
ie. psychological and organizational climate. The psychological climate is
described as a cognitive assessment of the environment that an individual
attributes in terms of their acquired knowledge and personal values, while the
results of accumulated assessments of individuals in the organization are called
organizational climate (Yee et al, 2012). As the psychological climate consists of
the perception that individuals create about their climate, it may indicate their
appropriate behavior in the environment (Wong Fong Yee, 2014)
Holloway (2012) studied in his research he studied the dimensions of the
organizational climate. As the most detailed model states dimensions of the
Litwin and Stringer Organizational Climate Questionnaire:
1. Structure - The feeling that employees have about the constraints in the
group, how many rules, regulations, procedures there are;
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2. Responsibility - The feeling of being your own boss; not having to

double-check all your decisions; when you have a job to do, knowing that it is
your job.
3. Identity - The feeling that you belong to a company and you are a
valuable member of a working team; the importance placed on
this kind of spirit.
4. Reward - The feeling of being rewarded for a job well done; emphasizing
positive rewards rather than punishments; the perceived fairness of the pay and
promotion policies.
5. Warmth - The feeling of general good fellowship that prevails in the
workgroup atmosphere; the emphasis on being well-liked; the prevalence of
friendly and informal social groups.
6. Conflict - The feeling that managers and other workers want to hear
different opinions; the emphasis placed on getting problems out in the open,
rather than smoothing them over or ignoring them.
This model has different dimensions of climate and the author believes that
all are represented in organizations only to a different extent. How much will be
represented depends on other factors such as gender, temperament of employees,
etc.
When it comes to organizational climate, it is necessary to mention its
relationship with organizational culture. Through research, the authors have
often stated that these are synonymous terms. Organizational climate and culture
have a lot in common but cannot be equated.
Organizational culture and climate are often classified under one definition.
Research over the years shows that these are completely different concepts.
Zdjelaric et al, (2018) state that it is the terms organizational culture and
organizational climate have often been confused. Many authors suggest that
culture refers to the deep structure of an organization that is rooted in values,
beliefs and assumptions carried by members of the organization, while on the
contrary, the climate refers to those aspects of the environment that are
consciously observed by members of the organization. They also state that the
climate is related to perception, ie. feelings and perceptions experienced by the
individual. The culture and climate are the key dimensions of the social context
of an organization that are central to promoting innovation and effectiveness in
human services. (Glisson, 2015)
Although there is a debate about whether organizational culture and climate
differ, overlapping or synonymous concepts are still in the process of their
relationship it is clear from the perspective taken into account: while
organizational culture is a situation, the organizational climate is the whole of its
atmospheres. (Julmi, 2017) Also, it is important to emphasize that one part of the
symbolic elements serves exclusively for creating a certain company image in
public. (Milanovic, 2010)
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Creativity and innovation

Due to advances in science and technology, all spheres of human life and
work are subject to change. Due to constant change, organizations around the
world emphasize that they need people who think creatively, communicate and
work in teams: people who are flexible and can adapt quickly. Creativity enables
the perception of problems from different angles, more precisely, creativity
provides change. (Lukic, 2014) Change as such, depending on the size and speed
of its emergence and spread, becomes a threat or an opportunity. For an
organization, to a large extent, the attitude of managers about changes can
determine its further growth or gradual or even sudden decline. Creativity is
recognized as a precondition for organizational change and organizational
competitiveness. is the one that boosts productivity and nurtures the corporate
culture, while ultimately creating a competitive advantage.
Creativity produces innovation, innovation is the answer to change. In
recent years, employee creativity and corporate innovation have become primary
factors in achieving company goals and maintaining a profitable business. The
organizational structure must be able to create, share and transfer knowledge
through appropriate internal communications between different departments.
Furthermore, the lack of professional staff can lead to internal inflexibility
towards the dynamics of innovation. Accordingly, innovation can be described as
a process that integrates a skilled workforce and an adequate organization.
(Stojanović et al, 2019)
An innovative climate consists of organizational strength, support, and
rewards for finding, testing, or testing and applying valuable ideas and solutions.
Creating a stimulating environment for generating new and useful ideas and
solutions. Research predicts that innovative climate will positively affect
employee creativity. An innovative climate in interaction with an efficient task
entrusts the creative performance of employees because efficiency is a specific
type of motivation for a task (Thiruvenkadam, 2018).

The impact of organizational climate on creativity and

innovation
The creative and innovative ability of an organization is becoming
increasingly important in modern society. Those looking for a source of
innovation believe that teams and teamwork should play a greater role in the
organization. Flexible, matrix organizational structures that allow managers to
form and disbanding teams according to the needs of individual projects take
precedence over traditional hierarchical, functional models of organizations,
because better adapt to fast, fragmented markets, innovative products and
flexible, highly skilled workforce Such structures allow for a quick regrouping of
creative teams and resources, thus encourages employee productivity in creating
and implementing innovations. Creative, innovative organizations are places
where beliefs are shared among members about the appealing vision the
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organization is trying to achieve. (Zeeratker et al, 2020) In them there is a high

level of interaction, discussion and constructive debate. Trust, cooperation and a
sense of interpersonal security characterize the relationships within them. The
members of the organization, especially those in senior positions, are positive
and open according to the ideas of the members, providing them with
encouragement and resources for innovation. Such organizations operate in
situations that require answers from them high demands - under strong external
pressures, but members look at it positive, like a challenge. (Stevanovic, 2017)
Employees who work in an exceptionally innovative climate feel more
confident in creating new ideas because the innovative climate has encouraged
risk-taking and creative approaches to completing certain tasks. (Thuan, 2020)
Although various empirical studies (Olsson, 2019) indicatea positive
relationship between employee creativity and the outcomes of organizational
innovation, it is still unclear how and under what conditions creative problem
solving affects innovation outcomes. The relationship between creativity and
innovation is not systematic; Some authors have suggested that the process of
turning creative ideas into innovative outcomes is influenced by several internal
and external factors: culture as a critical element in innovation management and
communication that increases trust and commitment among organization
members, which are important ingredients for implementing innovation
processes (Heffernan et al, 2016). It is important for innovation to support new
ideas by leaders who listen to and support such behavior that is necessary for the
further development and implementation of the same ideas. (Shanker et al, 2017)
Given that innovation reshapes the competitive landscape and creates new
market opportunities, its relationship with the financial performance of the
organization should be positive. Although innovation is associated with
increased employee dissatisfaction, unjustified changes, and greater exposure to
market risks, it has increasingly become an important source of organizational
performance, success, and long-term survival. innovation is an important factor
in the success of companies, positively affecting the corporate performance of
the organization by improving its market position and competitive advantage.
(Ouderago et al, 2019)
For creativity to occur in organizations, managers need to support and
promote it, as they are the individuals who are most knowledgeable about which
employee work outcomes should be creative and they have considerable
influence over the context within which creativity can occu(Zhang, 2010)
True creative leadership is needed to truly foster the creativity of
individuals in an organization. This means that leaders need to promote open
communication, psychological security of team members, exchange of
knowledge and experience, learning, and create conditions for generating and
accepting new ideas.(Matic, 2014)
In addition, HR managers can encourage the development of creativity and
innovation in organizations, above all, by being drivers for new ideas. Also,
hiring internal and external staff to improve can contribute. it is also necessary to
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University of Novi Sad, Faculty of Technical Sciences, Novi Sad, 2021.

take risks, support, and openness to new ideas, and develop constructive
thinking. (Lukić, 2014) Innovation does not happen all at once. Instead,
innovation occurs gradually and with the right incentives the results can be very
good.
Organizational climate as a concept in organizations, if it is positive and
affects the motivation and creativity of employees, indirectly encourages the
innovation of companies, and reflects on the performance and overall work.
Creative work enables employees to more easily accept the changes brought
about by the development of new technologies, which are inevitable. A positive
organizational climate, based on the psychological perception of an individual,
will evoke feelings satisfaction and identification with their work and
organization. (Wong Fong Yee et al, 2014) Creative employees are more
motivated to work and in that way the performance is better. Innovation comes
with the changes themselves and nowadays it has become a need of all
organizations and people. Innovations in companies enable greater use of the
potential of employees.
Conclusion
In this paper, the importance of the organizational climate for the
functioning of companies is emphasized. The organizational climate represents
in one way the atmosphere in the company, ie the relations between employees,
management, and employees, etc. its importance is reflected in the fact that it has
a significant impact on employee performance. If the working atmosphere is
good and the climate is positive, employees feel better, their performance is
better, and thus the overall performance. a positive work atmosphere also affects
the creativity of employees. Creativity is also necessary for the development of
innovation. creative employees are more open to change and innovation.
In the literature, the importance of organizational climate is often debated.
It is evident that since the emphasis is on people, the organizational climate is
something that is a significant part of it. Organizational climate is a very broad
concept that allows for a lot of research. Further research in this area should be
focused on certain dimensions of the organizational climate and their impact on
various aspects of the functioning of companies.

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