CHAPTER 5

ORGANIZATIONA
L CLIMATE
 Understand the impact of
organizational culture

LEARNING Describe an organizational climate

OBJECTIVES that attracts and keeps good people

Describe the elements of

true community
 INTRODUCTION
• Organizations resemble villages

• Certain pace and style of working

• Unspoken taboos

• Social structures, pecking orders, and patterns of behavior based on

community values

• Habits govern dress, language, food, and the like

• Norms of behavior govern the use of resources

 Key element in the life of the organizational
village

Important dimensions
PSYCHOLOGICA
L CLIMATE Reward system

Organizational clarity

Standards of performance

Warmth and support

Leadership practices
 ORGANIZATIONAL CLIMATE, 1

Psychologically healthy Organizations are only as Influences the quality of

work environment brings strong as the weakest link work and the quality of
out the best in the work life of members
employee and
organizational well-
being
 ORGANIZATIONAL CLIMATE, 2

People who stay spend

Example: Exploitive or more time complaining
The best workers leave
impoverished than working
hospital

Result is unattended Unnecessary mistakes are

patients, poor due to human factors:
housekeeping, and Untrained, unqualified,
medical and clerical and uncommitted
errors workers
 ORGANIZATIONAL CLIMATE, 3
Example: enlightened and supportive hospital
• Standards of performance are high
• Leadership is effective
• Goals and responsibilities are clear
• Support prevails
• Reward system reinforces work

Enlightened and supportive organizations are good

Investments because they:

• Attract excellent personnel

• Outperform counterparts
 ORGANIZATIONAL CLIMATE, 4

Organizations are Success depends on the Every unit should

composed of conditions in each develop an
interdependent subgroup enlightened and
groups supportive climate
 FIGURE 5.1: EXTENT TO WHICH LEADERS AND
FOLLOWERS AGREE ON ORGANIZATIONAL CONDITIONS
 Rensis likert identified the four patterns that
correspond to the four types of organizational climate

• Exploitive

• Impoverished

• Supportive

PATTERNS • Enlightened

OF
His conclusions were based on studies of leaders in
different organizations, inside and outside of the

LEADERSHIP united states

PATTERN 1 LEADERSHIP: EXPLOITIVE
Autocratic and hierarchical
• Members:

• Do not participate
• Are expected to comply
• Do not discuss problems with leaders
• Leaders:
• Make decisions
• Do not trust others

• Pattern 1 organizations rarely survive

PATTERN 2 LEADERSHIP:
IMPOVERISHED
• Not completely autocratic

• Power remains at the top

• Members sometimes participate

in decision-making

• Organizations fall into two categories

• Successful: benevolent autocracies in which leaders

show concern for members

• Failing: autocracies without benevolence

• That do not consider the ideas of members
PATTERN 3 LEADERSHIP: SUPPORTIVE
Members:
Leaders:
Understand the goals and want to achieve
Show interest and confidence in them
members Discuss problems with leaders
Have power Member participation and involvement in
decision-making activities are observed
Facilitate good
communication throughout the
organization
 PATTERN 4 LEADERSHIP:
ENLIGHTENED, 1
Leaders delegate power to the logical focus of
interest and concern for a problem

• PEOPLE THE FREEDOM TO INITIATE,

HAVE AND EXECUTE, TO ACCOMPLISH
COORDINATE,
GOALS
• Communication is open, honest,
and uncensored
• People are trusted
• Satisfaction and productivity are high
Likert describes a Pattern 4 organization as work groups with a high
degree of loyalty and favorable attitudes

Consideration for others and problem-solving skills

Efficient and effective communication

Effective system for interaction, problem solving, and organizational

achievement

Technically competent and maintain high performance goals

PATTERN 4 LEADERSHIP:
ENLIGHTENED, 2
 PATTERN 4 PRINCIPLES

View Treat Tap Set

• View human • Treat every • Tap the • Set high

resources as the individual with constructive performance
organization’s understanding, power of groups goals at every
greatest asset dignity, through level of the
warmth, and visioning and organization
support team building
 Performance effectiveness improves

BENEFITS OF Costs decrease

PATTERN 4
LEADERSHIP Satisfaction and health improve

Applicable to all sizes and types of

organizations
 Can develop and reinforce a positive work climate

Prescribe the way things should or should not be

done

Have great impact when describing real people and are

known by employees throughout the organization

STORIE Example: Malice in Dallas

S
Southwest Airlines versus Stevens Aviation

Dispute over the ad campaign “Just Plane Smart” led to an

arm wrestling match

All Southwest employees know the story,

which communicates the values of the company
BUILDING COMMUNITY
IN THE WORKPLACE
Community is experienced in two ways
• A group of people
• Formed by
bringing
people
together
in
Place and time
• A way of being
• Created when barriers between people are let
down

Creative cooperation when dealing with others involves:

• Valuing differences
• Building on strengths
• Transcending individual limitations
• Achieving the full potential of community
 CONDITIONS FOR TRUE
COMMUNITY, 1
• Shared vision

• Positive and future-focused image provides direction

• Wholeness incorporating diversity

• Community must face and resolve differences

• Shared culture

• Norms of behavior and core values that are shared are symbols
Of group identity
CONDITIONS FOR TRUE COMMUNITY, 2

Internal communications

•People communicate freely, which is uncensored and flows in all directions consideration

and trust

•People are respected, valued, and treated humanely

maintenance and government

• Roles, responsibilities, and decision-making are conducive to achieving tasks

 CONDITIONS FOR TRUE
COMMUNITY, 3

Involvement of all individuals and

Participation and shared leadership opportunity to influence events and
outcomes

Mature members help young

Development of younger members members develop knowledge, skills,
and attitudes that reflect community
values
 The community
celebrates its beginnings,
Affirmation rewards its achievements,
and takes pride in its
challenges

Need to draw boundaries

to accomplish tasks and
Links with outside groups community’s need to
have fruitful alliances
with external groups

CONDITIONS FOR TRUE

COMMUNITY, 4
DAVE PACKARD AND BILL HEWETT’S
ORGANIZATIONAL POLICIES
• Creation of a company that would
Attract like-minded people

• Greatest innovation was managerial

• Grant of bonuses to all employees when the

company improved its productivity

• Employees worked in open cubicles

• Egalitarian, decentralized system that came

to be known as “the h p way”
 Key element of organizational culture and
climate is structure

As organizations grow in size, there is a need

THE for layers and divisions of responsibility

STRUGGLE Mid-level leaders are needed to guide work

TO STAY FLAT activities, coach employees, and
organizational growth
manage
AND FRESH
Sufficient resources must be allocated to
perform these functions well

Too many layers of management correspond

with reduction in creativity and performance
 ARGUMENTS FOR BEING
ORGANIZATIONALLY FLAT
• Tall organizational structures have higher overhead costs

• Layers of hierarchy tend to slow down the transmittal of information and

the speed of response

• Tall structures tend to undermine employee satisfaction and organizational

commitment
 •CULTURE IS AN IMPORTAN FACTO WHEN
ORGANIZATIONS MERGE T R

• ORGANIZATIONS SHOULD CONSIDER THE INTEGRATION

OF CULTURES BEFORE THE DEAL

•WAYS TO PERFORM CULTURAL DUE DILIGENCE FOR A

SUCCESSFUL MERGER
MERGING • TALKING TO PAST MEMBERS OF THE ORGANIZATIONS

• INTERVIEWING COMMON CUSTOMERS, SUPPLIERS, AND

INDUSTRY ANALYSTS
CULTURE • ENSURING COMPATIBILITY IN THE DIMENSIONS
S OF ORGANIZATIONAL CLIMATE
• REWARDSYSTEMS, STANDARDS OF
PERFORMANCE, LEADERSHIP PRACTICES,
FEEDBACK AND CONTROLS,
AND TOWARD INNOVATION ATTITUDE
S