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Organizational Climate and Culture, Development Techniques and Theories

Marcelas E. Amelang

International Business, Schiller International University

PSY 376 Industrial Psychology

Nicole Payne

December 19h, 2023

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Organizational Climate and Culture

When examining the impact of climate and culture it is crucial to understand how they

profoundly influence employee behavior and the effectiveness of the organization. Schein

(2010) provides a nuanced perspective on culture defining it as a set of shared assumptions

that a group develops as it learns to deal with external challenges and internal integration.

This definition highlights the evolving nature of culture within an organization. Denison

(1990) adds to this by linking culture to organizational effectiveness. He suggests that an

effective culture goes beyond having an identity or a pleasant working environment; instead it

involves developing a culture that aligns with organizational goals and strategies ultimately

enhancing performance and competitiveness. In the case of Google its innovative culture

stands out as exemplary. The fostering of collaboration and creativity, at Google is not

accidental but a deliberate result of cultural engineering. Google cultivates an environment

where ideas can thrive and risk taking's encouraged – factors that play a crucial role in their

continued success and market dominance. Moreover it is important to distinguish between

climate and culture. While culture relates to the ingrained norms and values climate refers to

how employees perceive their everyday work environment. It encompasses their views on

policies, practices and procedures. A positive organizational climate, characterized by

communication, fair management practices and strong leadership can greatly enhance job

satisfaction and performance. Both organizational climate and culture are constantly evolving

due to factors such as leadership, management practices organizational history and the

external environment. The interaction between these elements can significantly impact an

organizations ability to adapt, grow and succeed in a landscape. Understanding and

strategically shaping these aspects can lead to an engaged workforce improved organizational

performance and better alignment with strategic objectives. This is where the concepts of

development techniques and theories come into play by providing frameworks and tools to
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effectively manage and harness the potential of organizational climate and culture. Taking

Google as an example again highlights how the companys organizational climate and culture

have an influence, on employee behavior and overall effectiveness. Googles culture is deeply

rooted in innovation and openness which fosters thinking among employees while

encouraging them to challenge conventional norms. The cultural element plays a role in

creating an environment where taking risks is not only accepted but also celebrated resulting

in groundbreaking innovations and solutions. At Google the atmosphere is characterized by

transparency, collaboration and inclusivity which greatly contributes to employee satisfaction

and productivity. Googles approach to fostering an engaging work environment has been

instrumental in attracting top talent and maintaining high levels of employee motivation and

dedication. As a result this leads to increased productivity and better outcomes for the

organization. Furthermore Googles emphasis on learning and development aligns with their

cultural values of curiosity and exploration. Employees are encouraged to pursue their

interests and ideas fostering an ever evolving organizational climate. This not promotes

personal growth but also ensures that the organization stays ahead in todays rapidly changing

business landscape.

Organizational Development Techniques

According to Cummings & Worley (2014) Management by Objectives (MBO) is a

technique that revolves around setting specific and measurable goals between managers and

employees. This approach not provides clarity on expectations but also ensures that individual

goals are aligned with the organizations overall strategy. The strength of MBO lies in its

ability to offer direction and measurable outcomes making it particularly effective in

enhancing organizational performance as well, as motivating employees.

Survey Feedback, as identified by Beer et al. (1984) plays a role in understanding how

employees perceive their organizations climate. By collecting feedback from levels of the

organization leaders gain valuable insights that may not be obvious from a top down
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perspective. This technique is instrumental in uncovering issues and opportunities fostering an

open culture and implementing necessary changes to enhance organizational effectiveness.

According to Beer et al. (1984) Team Building goes beyond group activities and retreats. It

focuses on creating an environment where teams can communicate effectively collaborate

efficiently and resolve conflicts constructively. In todays collaborative work environments

where cross functional teamsre prevalent this technique is of utmost importance. Effective

team building enhances team dynamics resulting in productivity and a more unified

organizational culture. While T groups are commonly used compared to other techniques like

MBO, Survey Feedback and Team Building they offer unique insights into group dynamics

and personal development. T groups concentrate on developing skills and self awareness

within a group setting. However their practical application has faced challenges due to the

nature of the training required and the need for skilled facilitators. Consequently T groups

have been adopted to an extent, than other more universally applicable techniques. Basically

each of these techniques provides a perspective to understand and enhance the dynamics

within an organization. The effectiveness of these techniques varies depending on the context

and needs of the organization as well as how they are implemented.

Organizational Theories

One way to gain insights into how organizations operate and evolve is by exploring

organizational theories. For example Bureaucracy Theory, which was articulated by Weber

(1947) examines the hierarchical nature of organizations. It emphasizes the importance of

procedures and rules but also highlights how it can lead to rigidity and inflexibility. Another

theory called Theory X and Theory Y conceptualized by McGregor (1960) presents

contrasting views on nature and motivation in the workplace. Theory X assumes that

employees are inherently lazy and require supervision while Theory Y suggests that

employees are self motivated and seek fulfillment in their work. These theories have

implications for management styles and strategies to engage employees. Another useful
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theory is Open System Theory described by Katz and Kahn (1978) which views organizations

as systems continuously interacting with their environment. This theory underscores the

importance of adaptability and responsiveness to changes for organizational survival and

growth. Lastly Sociotechnical Systems Theory explored by Trist and Bamforth (1951) focuses

on understanding the interdependence between aspects and technical aspects within an

organization. Overall these theories provide lenses through which we can analyze

organizational dynamics with consideration for their impact on management practices,

employee motivation, adaptability to external factors as well as maintaining a balance,

between social interactions This theory promotes the idea of creating work systems that

prioritize both efficiency and the well being of employees. It emphasizes the importance of

finding an approach to organizational design. By studying these theories we can gain an

understanding of how organizations function and how they are structured. Bureaucracy

Theory despite its inclination towards rigidity highlights the value of having processes in

place to achieve efficiency. On the hand Theory X and Theory Y provide a perspective on

employee motivation influencing how managers can approach leadership and motivation

strategies. Open System Theory sheds light on the necessity for organizations to be adaptable

and responsive in todays paced and ever changing business environment. Sociotechnical

Systems Theory emphasizes the need to consider both efficiency and employee well being

when designing an organization. The practical implications of these theories are significant.

They offer guidance to leaders in shaping structure developing management styles and

creating work environments that not only enhance efficiency but also promote employee

satisfaction and engagement. Understanding these theories empowers leaders to build

effective, adaptable and people centric organizations.

Conclusion

In conclusion there is a relationship, between organizational climate, culture,

development techniques and theories that greatly impacts how organizations operate. The
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behavior of employees in companies is influenced by the climate and culture of the

organization. Various theories and techniques such as Management by Objectives (MBO)

Bureaucracy Theory and Open System Theory provide insights into organizational growth

and behavior. Integrating these concepts is crucial for organizational success and employee

satisfaction. When these components are aligned effectively organizations can foster

innovation through problem solving and decision making processes. This promotes a culture

of learning and adaptability which is essential for building a resilient workforce prepared for

the future. To apply these concepts in real world organizations it's important to take a nuanced

approach that improves effectiveness and employee satisfaction. By creating an organizational

climate and culture leaders can motivate and engage their employees. Techniques like MBO

play a role in aligning individual goals with broader organizational objectives while

incorporating insights, from Bureaucracy Theory and Open System Theory helps streamline

processes for improved efficiency and adaptability. In practice this involves encouraging

communication fostering innovation and supporting continuous learning within the

organization. Moreover recognizing and addressing the requirements and viewpoints of the

workforce can result in more effective management strategies ultimately leading to a

contented and productive workforce. This comprehensive approach not drives organizational

accomplishment but also nurtures a resilient flexible and forward thinking organization. When

we look at real life examples of implementing these concepts Google stands out as an

illustration. Google has successfully integrated an organizational climate and culture that

fosters innovation and employee satisfaction. Their utilization of developmental techniques

aligns with organizational objectives while their management style reflects an understanding

of both Bureaucracy Theory and Open System Theory. This approach has allowed Google to

maintain its leadership position, in the technology industry characterized by a motivated

workforce and a culture that consistently adapts to the ever changing technological landscape.
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References

Beer, M., Spector, B., Lawrence, P. R., Mills, D. Q., & Walton, R. E. (1984). Managing

human assets. Free Press.

Cummings, T. G., & Worley, C. G. (2014). Organization development and change (10th ed.).

Cengage Learning.

Denison, D. R. (1990). Corporate culture and organizational effectiveness. John Wiley &

Sons.

Katz, D., & Kahn, R. L. (1978). The social psychology of organizations (2nd ed.). Wiley.

McGregor, D. (1960). The human side of enterprise. McGraw-Hill.

Schein, E. H. (2010). Organizational culture and leadership (4th ed.). Jossey-Bass.

Trist, E. L., & Bamforth, K. W. (1951). Some social and psychological consequences of the

longwall method of coal-getting. Human Relations, 4(1), 3-38.

Weber, M. (1947). The theory of social and economic organization. Free Press.