Organizational Climate

Importance of Organizational Climate

A positive and unique organizational climate can be critical to every company.

First, an organizational climate can assist companies in measuring their employees' perceptions about various business-related aspects such as work environments, policies, regulations, business practices, communication patterns, etc. For instance, businesses can measure their organizational climate to gauge how their employees feel and think about their policies, organizational culture, or practices. Thus, the management team can ensure that organizational members align with the organization's goals, visions, and strategies.

Second, similar to organizational culture, an organizational climate can create a common ground of beliefs and perceptions to which all organizational members belong. In this sense, the organizational climate can enhance organizational commitment, which tightens the bond between employees and their organizations.

Fig. 1 - Organizational climate can unite members

Types of Organizational Climate

There are, indeed, several types of organizational climates at work. The following are some most prominent types of organizational climates nowadays. ¹

Table 1 - Types of organizational climate

Organizational Climate Characteristics

Five common characteristics can shape an organizational climate at work.² They are:

1. General perception: the organizational climate is people's general perception of an organization. It offers an understanding of people's impressions of the organization's internal environment.

2. Abstract and intangible concept: an organizational climate is abstract and intangible in the sense that it is subjective. Thus, an organizational climate is challenging to explain and measure in units.

3. Unique and distinct identity: an organizational climate gives an organization a unique and distinctive identity that differs from other organizations.

4. Long-standing quality: an organizational climate cannot be built overnight. In other words, organizations must spend a long time and consistent efforts in shaping their desirable organizational climate.

5. Multi-dimensional concept: an organizational climate is multi-dimensional given that it involves various dimensions at work, such as individual autonomy, leadership style, communication, organizational conflicts, teamwork, etc.

Organizational Climate Dimensions

We can divide organizational climate dimensions into three categories:

1. Structural dimensions: this dimension includes factors related to an organizational structure.

2. Interactive dimensions include factors determining how organizational members interact with one another.

3. Perceptual dimensions include factors influencing individuals' perception of an organizational climate.¹

Accordingly, some prominent components of organizational climate dimensions can range from organizational structure, leadership style, and organizational conflicts to organizational communication, warmth, support, or rewards and punishment.

Organizational Climate vs. Culture

Commonly, the concepts of organizational climate and culture are interwoven; thus, they can easily be confused. However, there are differences separating an organizational climate from an organizational culture.

Thus, we can understand that organizational climate can be shaped based on individuals' perceptions of and interactions with organizational culture.¹ Specifically, while an organizational culture represents the overall image of an organization, an organizational climate represents only individuals' perceptions of an organization's image.

Organizational Climate Examples

Within business contexts, there are various ways that organizations can create a positive organizational climate. Let's see two concrete examples of how companies can increase their organizational climate's positivity.

Improving Working Environments

A popular way for modern companies to directly impact their organizational climate is to enhance the quality of their working environments. Nowadays, various organizations are motivated to keep their working environments at the healthiest level possible. Thus, managers focus on creating and innovating comfortable and inspirational working environments that can win the hearts of their employees.

Also, many companies focus on revolutionizing their working procedures, from performance evaluation methods to recognition programs and task allocation schemes, to empower their employees at work. As a result, companies can make their employees feel much more secure and appreciated.

Employee Recognition Programs

Developing appropriate employee recognition programs at work is a popular method for creating a positive work environment. Such recognition programs can range from non-monetary rewards, such as a public shoutout or a day off, to monetary ones, including an appreciation gift or voucher. Employee recognition programs are among the best ways for organizations to remind employees of their value and contributions while lifting the overall happiness levels at work.