Impact of Organizational Climate; 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 the organizational climate is directly related to the efficiency and performance of the employees.
Explain are Impact of Organizational Climate on Job Satisfaction, Dimensions!
The organizational climate can affect human behavior in the organization through an impact on their performance, satisfaction, and attitudes. Also learn, Explain are Evolution, Elements of an Organizational Climate! There are four mechanisms by which climate affects the behavior of the employees.
1. Constraint System:
Organizational climate can operate as a constraint system in both the positive and negative sense. This can do by providing information to the employees about what kind of behavior will reward, punished or ignored.
Thus, behavior can influence varying degrees of rewards and punishments. Such a constraint system would influence the behavior of those people. Who is most interested in those specific values. Which are assigned to different behavioral outcomes?
2. Evaluation of Self and Others:
Organizational variables may affect behavior through evaluation of self and others. In this evaluation process, both the physiological and psychological variables will associate. Such an evaluation will affect human behavior.
3. By Acting as Stimuli:
Organizational factors can influence human behavior by acting as stimuli. As stimuli, they influence an individual’s arousal level. Which is a motivational variable directing human behavior? The level of arousal will directly affect the level of activation and hence performance.
4. By Helping the Individual to Form a Perception:
Organizational factors influence the behavior by helping the individual in forming a perception of the organization. The perception then influences behavior. Thus, the good organizational climate is instrumental to higher employee satisfaction, better human relations and higher productivity, the role of climate can explain with the help of the following figure.
Major determinants of climate in an Organization!
The factors indicated in the figure represent major determinants of climate in an organization and as such represent important areas of management concern. If employees satisfaction and job performance are to improve, the management must modify these factors so that the employees view climate as favorable to them.
Various research studies also confirm the positive relationship between organizational climate and employee performance. Frederik-sen on the basis of laboratory studies involving 260 middle-level managers concludes that different organizational climate has a different impact on human performance. He summarizes his findings in the following statement.
“It appears that the amount of administrative work in the stimulated job is more predictable in a climate that encourages innovation. Then in one that encourages standard procedures and that in an innovative climate. Greater productivity can expect of people with skills and attitudes that are associated. With the independence of thought and action and the ability to be productive in free unstructured situations.”
This study suggests that the performance was more predictable for subjects who worked in a consistent climate than those who had to work in an inconsistent environmental climate. The inconsistent climate was having an indirect impact on productivity. Another laboratory study shows that significant differences were found in performance and satisfaction of people in varying organizational climates.
Types of Organizational Climate!
For example, in this study, three types of ORGANIZATIONAL climates were creating:
- Authoritarian structured.
- Democratic-friendly, and.
- Achieving business.
It was found that the achieving organization producing the most in terms of money volumes, numbers of new products and cost-saving innovations. People in democratic friendly environment expressed maximum satisfaction with their jobs.
However, people in the authoritarian structured organization produce goods of the highest quality because of the right specifications put by government orders. Other studies have shown similar results.
The organizational climate on Dimensions!
From the above discussion, it is clear that definitions and approaches to organizational climate are diverse. In the literature, it is evident that the same applies to the dimensions and measurement of organizational climate because various researchers use a wide variety of dimensions to assess organizational climate.
Although many dimensions have to identify, this research utilized dimensions that were developed specifically for this study. Comparisons were drawn between these dimensions and those of Coetsee, Tustin (1993) and Wiley and Brooks (2000), and there is a great deal of overlap among the models.
The dimensions of this study compare well with those of other models and provide an encompassing construct of organizational climate. In addition, they include dimensions, such as diversity management, that are applicable to the South African environment – hence the use of this model in this research. This leads to the first hypothesis of the research.
According to Cranny, Smith, and Stone (1992), job satisfaction can define as an off effective emotional reaction that an employee has towards a job that is the result of his or her comparison of actual outcomes with expect or deserve outcomes. Job satisfaction has also defined in terms of attitudes that individuals have towards their jobs.
Schneider and Snyder (1975) define job satisfaction as a personal evaluation of the current conditions of the job or the outcomes that arise as a result of having a job. Sempane, Rieger, and Roodt (2002) appear to agree with this definition, stating that job satisfaction refers to the individual’s perception and evaluation of the job.
According to these authors, the individual’s perception is influencing by his or her unique circumstances such as needs, values, and expectations. Therefore jobs are evaluating by people on the basis of factors that are important to them. Although the definitions of job satisfaction are varied, it is generally considering to be an attitude or feeling that one has about one’s job that is either positive or negative.
According to Locke, for researchers to have a clear understanding of job attitudes, they need to know the various factors that have an influence on the job. Research indicates that these factors can divide into two distinct dimensions, namely extrinsic and intrinsic. Also learn, What is the Developing a Sound Organizational Climate?
Extrinsic dimensions form part of the job situation, are influencing by others and are beyond the employee’s control. Examples are factors such as the work itself, pay, promotion opportunities, working conditions, supervision, and co-workers. Intrinsic rewards are self-regulating and a direct result of the individual’s performance.
Lawler explains that intrinsic rewards satisfy higher-order needs, for example, feelings of accomplishment and achievement and the satisfaction of utilizing one’s skills and abilities. Robbins, Odendaal, and Roodt (2003) point out that intrinsic factors, such as advancement, recognition, responsibility, and achievement, appear related to job satisfaction.
Job satisfaction can measure in two ways – namely, by the facet approach or the global approach. The former refers to assessing how employees feel about various aspects of the job such as rewards (pay or fringe benefits), job conditions, people on the job (supervisors and co-workers) and the work itself.
The latter approach measures job satisfaction by directly asking individuals how they generally feel about their jobs. This study defined job satisfaction as the feeling individuals have about their jobs. Hence this research was concerned with measuring the affective aspect of job satisfaction using the global approach.
Organizational climate and job satisfaction.
There are numerous studies investigating the relationship between organizational climate and job satisfaction. With many researchers finding evidence to support the relationship between the two constructs. In a review of studies investigating organizational climate and job satisfaction, Peek (2003) found that organizational climates that exhibit characteristics.
Such as having a high degree of autonomy, providing opportunities for employees, nurturing relationships among employees. Showing interest in and concern for their employees. Recognizing employees’ accomplishments and holding employees in high regard result in more satisfied workers.
Similarly, Brief (1998) found that salary, benefits, and advancement opportunities. Were components of organizational climate that had a direct influence on job satisfaction.
In summary, organizational climate and job satisfaction are distinct but related constructs. Organizational climate is focusing on organizational/institutional attributes as perceived by organizational members. While job satisfaction addresses perceptions and attitudes that people have towards and exhibits about their work.
Although a recent study conducted in a South African call center found job satisfaction to strongly correlate to organizational climate. Studies investigating the relationship between organizational climate and job satisfaction are less frequent in the literature today, especially in South Africa. A possible explanation could that studies tend to focus more on organizational culture.