CHAPTER 12: ORGANIZATIONAL CLIMATE AND CULTURE

Organizational climate

comprises all the perceptions, attitudes, and behavioral characteristics that are common to employees in an organization while organizational culture consists of the basic values, norms, and beliefs shared by employees in a company

Organizational culture

consists of values, symbols, rituals, and the like which can be passed on to the younger members of the organization. People can choose the kind of organizational culture they want to belong to

People oriented, rule-oriented and goal-oriented

Types of organizational climate

People-oriented

It refers to an organization which prioritizes and values its people more than anything else. With this type of climate, the employees find sense of belonging and they care about each other's welfare and wellbeing. A _______ characterized by trusting and harmonizing relationships is produced by a culture of belonging and camaraderie. People in the organization are, therefore, happy as major conflicts do not arise among them

Rule-oriented

When the culture of an organization gives so much importance to details, policies, and procedures, the climate produced is rule-oriented. It is systematic. Employees have to conform always to established guidelines and procedures. The most likely reason for this kind of climate is that any deviation from the rules (ie, doing the job in a different way) may bring harm not only to the organization but also to its employees. In this sense, the organization adopts a "zero defects" approach to quality and safety.

Goal-oriented

This kind of climate is reflected in the goals posted on the company's walls and bulletin boards. The posts always remind the employees to deliver. The employees are pressured to stay in the office until they attain their specific goals for the day. The culture of the people dictates strict conformance to objectives.

Culture

refers to the observable patterns of behavior

Watkins

He elevated Aristotle's view on culture which states that, "We are what we repeatedly do."

Structures

are behavioral patterns that emanate from the organizational structure while processes relate to the tasks, procedures, and systems that employees engage in.

Incentives

These are both monetary and nonmonetary such as high salary, promotion, and recognition, among others.

Larry Page and Sergey Brim

They founded Google, Inc. in September 1998 and the company has been very successful ever since.

Merging

happens when two companies combine and form one company.

Acquisition

by contrast, happens when a company buys another company. The legacy of cultures retained from a company's history of acquisitions should be well-managed; otherwise, a clash of cultures among employees is not far from happening.

Restructuring

These exerts some effects on the whole organization. This is what happened to Marks & Spencer. The organization had to absorb all the operational changes when some employees left. Thus, the employees who remain after restructuring or downsizing sometimes have to carry the work burdens after losing some of their co-workers

Power culture, role culture, task culture and person culture

Types of Organizational Culture

Power culture

Power, which is at the center, is concentrated in a few people. Decisions are made quickly because of few rules.

Role culture.

Employees have specific tasks and roles to perform which are clearly defined in the organizational structure. Authority flows from top to bottom.

Task culture.

There are also teams assigned to solve problems. Those who have the expertise in a particular area or task take charge.

Person culture.

Everyone wants to be on top of the organization. The survival of this organization is remote because there is no shared mission among employees.

Organizational climate

comprises all the perceptions, attitudes, and behavioral characteristics that are common to employees in an organization. It can be categorized into three types people-oriented, rule-oriented, and goal-oriented.

Culture

refers to the observable patterns of behavior.

Organizational culture

functions much like the human immune system. It rejects irrational thinking and undesirable or unsuitable people in the organization. There are four types of organizational culture: power culture, role culture, task culture, and person culture