MANAGEMENT

OF INDUSTRIAL
RELATIONS
Presented to:
Masters of Commerce (Final),
Department of Commerce and Business Management, Faculty of Commerce,
The Maharaja Sayajirao University of Baroda, Vadodara

Presented by:
Dr. Umesh R. Dangarwala
Associate Professor,
Department of Commerce and Business Management,
Faculty of Commerce,
The Maharaja Sayajirao University of Baroda, Vadodara
ORGANIZATIONAL CULTURE
VS. ORGANIZATIONAL
CLIMATE
INTRODUCTION
 Organizational culture is tied to organizational
purpose. Why do your business? What do you
hope to achieve? How will your employees help
to get you there in a way they can believe in, too?
Creating a sustainable work environment where
employees feel engaged, loyal, and satisfied
should be the goal of every organization. Good
company culture breeds employees who enjoy
their workplace, the work they do, and those they
work with. Without it, employees may be inclined
to take their skills and knowledge elsewhere. 
INTRODUCTION
 But the culture of your organization doesn’t
always reflect the climate of your organization.
The company’s mission, diversity initiatives,
incentives, and perks all make for good culture
on paper, but does the climate in your workplace
reflect the culture you hope to have? Do your
promises live up to your reality?
WHAT IS ORGANIZATIONAL
CULTURE?
 Simply put, organizational culture is your company identity.
It’s your values and the norms that have arisen organically
over time.
 Common Values Include:
 Curiosity – Embracing the desire to be continually learning and
growing
 Quality – Assessing accuracy and logically thinking over
situations and problems
 Innovation – Risk-taking and introducing new ideas
 Outcome Orientation – Focusing on overall results and
achievements
 Diversity and Inclusion — creating space for minorities, women,
those with disabilities, and other underrepresented groups.
WHAT IS ORGANIZATIONAL
CULTURE?
 For example, a bank might have,what would be
considered, a more traditional company culture. A
corporate bank is a structured environment, as the
banking industry is heavily regulated by well-established
laws. Banking is an old industry, which suggests the
culture has had a long time to develop and is firmly
ensconced.
 At a bank, you’ll likely find a culture where people are
expected to follow proper channels and defer to the chain
of command — where being experimental in your
methods and practices would be less favorable and where
staff members present a calm, courteous face to the
customer so as to convey trust and reliability.
WHAT IS ORGANIZATIONAL
CULTURE?
 On the other hand, a company like a tech start-up is
likely to be more collaborative and unstructured —
where disruption, innovation, and entrepreneurship is not
only welcome, but also encouraged. Disruptive conflict,
wild ideas, and challenging traditions might even be a
key value in their culture. Everyone from the company
president to the newest intern may be able to
communicate laterally and casually.
DEFINING ORGANIZATIONAL
CLIMATE
 Organizational climate is the way people experience the
work environment. What is it like to work there? How do
individuals feel when operating in that culture? How do
business conditions, management decisions, and the
actions leadership affect the general mood? When you
consider the collective experience of all the talent in the
organization, you’re evaluating climate.
DEFINING ORGANIZATIONAL
CLIMATE
 Revenue swings, for example, can affect climate without
changing the culture. If you work for a company built
around a culture of process and efficiency, and then
revenue drops, the solution would likely be to double
down on improving processes and efficiencies — this
might mean cutbacks in other areas, consolidation of
responsibilities, or increased workloads. As a result,
employees may start to feel resentful or despondent that
their bonuses were canceled, coworkers were laid off, or
they’ve lost certain perks or benefits. In this scenario, the
culture stayed the same, but the climate changed.
DEFINING ORGANIZATIONAL
CLIMATE
 If your company has a diversity and inclusion initiative,
how many people from underrepresented groups have
you actually hired? What positions do they hold? How
many of those individuals are in managerial positions or
within leadership? It’s one thing to have a diverse staff,
but if every group isn’t represented through every
department and at all levels, does the climate really
reflect the value your organization claims as part of their
culture? Your organization may have the diversity, but
you can’t leave out the inclusion.
DIMENSIONS OF ORGANISATIONAL
CLIMATE
 Dimensions measuring organisational climate (Litwin and
Stringer, 1968). They identified the dimensions based on
organisations that are mainly task orientated and that will
describe a particular situation.
 According to Litwin and Stringer (1968), the nine dimensions
of organisational climate are as follows:
 (1) Structure
 (2) Responsibility
 (3) Reward
 (4) Risk
 5) Warmth
 (6) Support
 (7) Standards
 (9) Identity
DIMENSIONS OF ORGANISATIONAL
CLIMATE
 (1) Structure: The aim of this dimension is to gauge how employees
perceive the organisation
 (2) Responsibility: This dimension is concerned with how
employees feel about being able to make their own decisions without
having to constantly “check in” with a boss. This involves knowing
what one’s role entails and making sure the work gets done.
 (3) Reward: This dimension focuses on how employees perceive
being rewarded for the work they do. The emphasis is on positive
reinforcement and the perception of fairness regarding payment and
promotion policies.
 (4) Risk: This dimension seeks to describe the risk or challenge
associated with a particular job as well as the organisation’s general
approach to taking risks or its inclination to adopt a more stable view.
DIMENSIONS OF ORGANISATIONAL
CLIMATE
 5) Warmth: The focus of this dimension is on the group’s or
organisation’s general feeling of friendliness.
 (6) Support: The aim of this dimension is to gauge how
employees perceive their manager’s and colleagues’ willingness
to help and provide support.
 (7) Standards: This dimension refers to the emphasis that is
placed on achieving set goals and meeting the standard and doing
outstanding work.
 (8) Conflict: This represents the extent to which managers and
employees wish to openly discuss issues or concerns rather than
ignoring them as well as wanting to explore varying views.
 (9) Identity: This dimension measures the extent to which
employees feel valued in the group and feel part of the
organisation.
LEVELS OF CLIMATE
 According to Field and Abelson (1982), empirical
evidence supports the notion that three levels of climate
can be identified
 Organizational Climate
 Group Climate
 Psychological Climate.
LEVELS OF CLIMATE
 Group climate
 Sub climates exist for different organisational groups because
of differences relating to task relationships and job functions.
climates differed across groups in the same organisation.
Climate responses can be seen as more of a group function
than being caused by personal characteristics.
 Psychological climate
 Psychological climate is studied at the individual level of
analysis, referring to individuals’ descriptions of the
organisation’s policies and processes.
MEASURES OF ORGANIZATIONAL
CLIMATE
 One of the best-known general measures of
organizational climate is the Organizational Climate
Questionnaire (OCQ) by Litwin and Stringer (1968).
 It comprises 50 items that assess nine dimensions of
climate. Organisational climate is measured by means of
the average perceptions of organisational members,
referring to a collective description of the same
environment
 Presented by:
Dr. Umesh R. Dangarwala
Associate Professor,
Department of Commerce and Business Management,
Faculty of Commerce,
The Maharaja Sayajirao University of Baroda, Vadodara