Organizational Climate and Culture
Organizational Climate – Definition
- Organizational climate refers to the perception of the work environment shared by employees.
- It includes attitudes, feelings, and expectations that influence behavior at the workplace.
🔹 Defined as the “personality” of the organization.
Characteristics of Organizational Climate
- Perception-based: It reflects how people feel about their organization.
- Relatively stable over time.
- Subjective experience of individuals.
- Affects motivation, satisfaction, and performance.
- Multi-dimensional – includes communication, leadership, trust, etc.
Organizational Culture – Definition
- Organizational culture is the shared values, norms, beliefs, and behaviors that guide how members of an organization interact.
🔹 Defined as the “system of shared meaning” held by members.
Difference between Organizational Culture and Climate
Basis |
Organizational Culture |
Organizational Climate |
Definition |
Shared beliefs and values |
Perception of environment |
Nature |
Deep-rooted, long-term |
Surface-level, short-term |
Focus |
“Why we do things this way” |
“How it feels to work here” |
Stability |
Stable and persistent |
Subject to change based on leadership or policy |
Development |
Through history, stories, rituals |
Through management practices |
Types of Organizational Culture (Deal & Kennedy)
Type |
Description |
Tough-Guy |
High risk, quick feedback (e.g., sales) |
Work Hard/Play Hard |
Low risk, quick feedback (e.g., customer service) |
Process Culture |
Low risk, slow feedback (e.g., bureaucracy) |
Bet-Your-Company |
High risk, slow feedback (e.g., R&D) |
Creating Organizational Culture
- Vision and mission set by founders/leaders.
- Leadership behavior as role model.
- Recruitment and selection based on values.
- Training and socialization.
- Reward systems aligned with culture.
- Symbols and rituals to reinforce values.
Quick recall points
Question |
Answer |
Organizational climate is based on |
Perception |
Culture is more |
Deep-rooted |
Culture is created and maintained through |
Socialization, leadership, values |
Type of culture with high risk and slow feedback |
Bet-your-company |
Climate affects |
Morale and job satisfaction |
Individual Behavior in Organizations
Factors Influencing Individual Behavior:
- Biographical characteristics – Age, gender, education
- Personality – Traits, temperament
- Perception – How an individual interprets the world
- Motivation – Internal drive to act
- Attitude and Values – Beliefs and emotional reactions
Group Behavior in Organizations
Definition: Group behavior refers to interactions, attitudes, and dynamics among individuals when they operate as a group within the organization.
Types of Groups:
- Formal Groups – Created by organization (e.g., task forces, committees)
- Informal Groups – Naturally formed based on personal interests.
Group Development Stages (Tuckman Model):
- Forming – Orientation and ice-breaking
- Storming – Conflicts and competition arise
- Norming – Group establishes norms and cohesion
- Performing – Group works effectively towards goals
- Adjourning – Completion and dissolution
Group Dynamics – Key Elements
- Norms – Accepted behavior standards
- Roles – Expected behavior patterns
- Status – Rank or position in group
- Cohesiveness – Bonding and unity
- Leadership – Influence and direction
QUICK RECALL CHART
Topic |
Key Point |
Organizational change |
Process of shifting to a new way of working |
Planned change |
Intentional and proactive |
Lewin’s change model |
Unfreeze → Change → Refreeze |
Individual behavior factors |
Personality, perception, motivation |
Group behavior stages |
Forming → Storming → Norming → Performing |
Group norms |
Expected standards of group behavior |