Importance of Organisational Climate in Contemporary Management

Abstract

Organizational climate can be defined as shared perceptions or prevailing organizational norms for conducting workplace activities. The term organizational climate to the psychological conditions prevailing in the organization refers to behaviors, attitudes, and feelings that are common there. Organizational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees. Organizational climate determines the work environment in which the employee feels satisfied or dissatisfied. Since satisfaction determines or influences the efficiency of the employees, we can say that organizational climate is directly related to the efficiency and performance of the employees. The factors that can be observed and measured are called overt factors and the factors that are not visible and quantifiable are called covert factors. Overt factors organizational climate are Hierarchy, Financial resources, Goals of organizations, Skills and abilities of personnel, Technological state, Performance standards and Efficiency measurement. Covert factors of organizational climate are Attitudes, Feelings, Values, Norms, Interaction, Supportiveness and Satisfaction. The techniques that are generally helpful in improving the climate of the organization are Effective Communication System, Concern for people, Participative decision making, Change in policies, Procedures and rules and Technological changes. A climate that favors risk taking will encourage employees fo test and exchange unusual knowledge and ideas. Participation is a very effective tool to develop sound organizational climate and job satisfaction. More satisfied employees possess some personality characteristics that are likely to be reflected in good work performance, self-efficacy and locus of control. An atmosphere of cooperation opens access among group members and creates individual motivation to exchange knowledge with group members resulting in more productivity. So the managements of corporations should strive to create a congenial organizational climate in the organizations.