Organizational climate is shared perception of the way things are around the organization. It is individual perception and cognitive representation of the work environment both. Organizational climate is comprised of mixture of norms, values, expectations, policies and procedures that influence work motivation, commitment and ultimately, individual and work unit performance. Positive climate encourages, while negative climates inhibits discretionary effort. ‘Organizational climate’ refers to the quality of working environment.
Every organization is different and has a unique feeling and character beyond its structural characteristics. Thus every organization deals with its member in a distinct way through its policies on allocations of resources, communication pattern, reward and penalty, leadership and decision making style, etc. The organizational policy and conviction with regard to all these and a cluster of other related activities influence the feelings, attitudes and behavior of its members and results in the creation of the unique organizational climate.
Organizational climate has a major influence on human performance through its impact on individual motivation and job satisfaction. It does this by carrying certain kinds of expectancies about what consequences will follow from different actions. Individuals in the organization have certain expectations and fulfillment of these expectations depend upon their perception as to how the organizational climate suits to the satisfaction of their needs. Thus organizational climate provides a type of work environment in which individuals feels satisfied or dissatisfied.
Since satisfaction of individual goes a long way in determining his efficiency, organizational climate can be said to be directly related with his performance in the organization. Organizational climate studies data relating to individual perception of organizational properties in identifying organizational climate. Denison (1996) argues that developing a universal set of dimensions was often the central issue of the climate researchers so that comparative studies could be made possible in different organizational settings.
He compared this approach to that of the culture research that used a post-modem perspective which examined the qualitative aspects of individual social contexts where each culture that was seen as unique and was not expected to have general qualities which had become central to the climate research. Jones and James (19790 argued that one of the assumptions of the climate literature is that a relatively limited number of dimensions could characterize a wide cross-section of social settings. Jones and James labeled their factors as follows: Conflict and ambiguity’, which ‘reflected perceived conflict in organizational goals and objectives, combined with ambiguity of organizational structure and roles, a lack of interdepartmental cooperation, and poor communication from management. Also included were poor planning, inefficient job design, a lack of awareness of employee needs and problems, and a lack of fairness and objectivity in the rewards process. ’ ‘Job challenge, importance and variety’, which ‘reflected a job perceived as challenging, which involve a variety of duties, including dealing with other people.
The job was seen as providing autonomy and feedback, and demanding high standards of quality and performance. ’ ‘Leader facilitation and support’, which ‘reflected perceived leader behaviors such as the extent to which the leader was seen as helping to accomplish work goals by means of scheduling activities, planning, etc. , as well as the extent to which he was perceived as facilitating interpersonal relationships and providing personal support. ’ ‘Workgroup cooperation, friendliness, and warmth’, which ‘generally described relationships among group members and their pride in the workgroup. ‘Professional and organizational esprit’, which ‘reflected perceived external image and desirable growth potential offered by the job. Also included were perceptions of an open atmosphere to express one’s feelings and thoughts, confidence in the leader, and consistently applied organizational policies, combined with non-conflicting roles expectations and reduced job pressure. ’ ‘Job standards’, which ‘reflected the degree to which the job was seen as having rigid standards of quality and accuracy, combined with inadequate time, manpower, training and resources to complete the task. 2.