Organisational

Climate
Organisational climate is also known as “Corporate
Climate" and it is a concept that has academic meaning
in the fields of organisational behaviour and I/O
psychology as well as practical meaning in business world.
“Organisational Behaviour I/O psychology (industrial
is a field of study that and organisational) is an
investigates the impact applied science of human
that individuals, groups behaviour which is related
and structure have on the to work and applies
behaviour within the psychological theories and
organisations for the principles to organisations
purpose of applying such and individuals in their
knowledge towards places of work as well as
improving an organisation’s the individual’s work life.
effectiveness.”
-Stephens P. Robbins.
 Climate V/S Culture
O Felt or experienced. O Set of hard
O Short lived quantifiable
O Set of conditions to
attributes.
which people react. O Developed over time.
O Its just a phase in O Code of conduct
an organisation. O Permanent
 Definition
O Organisational climate can be defined as
the shared perceptions, feelings and
attitudes organisational members have
about the fundamental elements of the
organisation ,which reflect the established
norms, values and attitudes of the
organisation’s culture and influence
individual’s behaviour either positively or
negatively.
( Casto M. & Martins N. , 2010)
 Characteristics of
organisational climate
O It is the general perception of the employees
regarding the internal work environment.
O It is a “psychological atmosphere”.
O It shows the relationship between the
organisation and its employees.
O The organisational climate is a reflection of
the degree of employee motivation.
O The organisational structure strongly
influences the organisational climate.
O It has a positive and negative effects on
people’s behaviour in the workplace.
O It is unique to each organisation.
O It is abstract and intangible concept.
O It shows the quality of the internal
environment in the organisation.
O It is multi-dimensional.
 Factors Influencing
Organisational Climate
Litwin and Stringer have said about 6 factors
that affect organisational climate.

O Organisational Structure
O Individual Responsibility
O Rewards
O Risk Taking
O Warmth and Support
O Tolerance and Conflict
Lawrence James and Allan Jones have given
the following factors that influences
organisational climate

O Organisational Context
O Organisational Structure
O Leadership Process
O Physical Environment
O Organisational Values and Norms
Richard M. Hodgetts’
Iceberg Analogy
 Hierarchy
Financial resources
Goals of the organisation
Overt Factors Skills and abilities of
personnel
Technological state
Performance standards
Efficiency measurement

Attitudes
Feelings
Covert Factors Values
Norms
Interaction
Supportiveness
Satisfaction
 Dimensions Of
Organisational Climate
DIMENSIONS

O Dominant orientation
O Inter-personal relationship
O Conflict management
O Individual Autonomy
O Organisational control
O Organisational structure
O Task oriented and Relations oriented
O Rewards and punishments
O Communication
O Risk taking
How to create a Good
Organisational Climate?
O Find what factors motivated or de-
motivated employees.

O Team spirit and unity of group.

O Publicize the vision, mission and values

of the company.

O How the delegation of tasks is

perceived.

O Make sure the team believes in the

competence of its leaders.
Other points are:
O Effective communication system i.e., a two way
communication is important so that employees
can give feedback.
O Concern for its people. i.e., the management
should be interested in human resource
development. The welfare of the employees
should be ensured.
O The employees should be allowed to be part of
decision making.
O The climate can be changed by changing the rules,
policies and procedure.
O Technological changes that will improve the
working conditions of the employees will be easily
accepted by them.