29089102 a Study on Organization Climate in Mafoi Management Consultants Ltd

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Transcript of 29089102 a Study on Organization Climate in Mafoi Management Consultants Ltd

CHAPTER I INTRODUCTION TO THE STUDY

Organizational climate is comprised of mixture of norms, values, expectations, policies and procedures that influence work motivation, commitment and ultimately, individual and work unit performance. Positive climate encourages, while negative climates inhibits discretionary effort. Organizational climate refers to the quality of working environment. If people feel that they are valued and respected within the organization, they are more likely to contribute positively to the achievements of the business outcomes. Creating a healthy organizational climate requires attention to the factors which influence employees perceptions, including the quality of leadership, the way in which decisions are made and whether the efforts of employees are recognized. In fact Climate may be thought of as the perceptions of the characteristics of an organization. Climate for an organization is somewhat like the personality for a person. Just as every individual has a personality that makes each person unique, each organization has an organizational climate that clearly distinguishes its personality from other organization. Every organization is different and has a unique feeling and character beyond its structural characteristics. Thus every organization deals with its member in a distinct way through its policies on allocations of resources, communication pattern, reward and penalty, leadership and decision making style, etc. The organizational policy and conviction with regard to all these and a cluster of other related activities influence the feelings, attitudes and behavior of its members and results in the creation of the unique organizational climate. The content of organizational climate has varied widely and they include almost all the important aspect of organizations such as structure, communication, leadership, Conflicts, reward system, inter personal relationships organizational effectiveness, reasonability and so forth. It has been pointed out that the contents of the climate constructed by various researches overlap with many other major concepts in organizational behavior Glick, 1985. Such overlaps seems to have promoted researchers to raise the question how the concept of climate is different from other organizational variables, especially, structure and job satisfaction.A Study on Organization Climate in Ma Foi 1

1.1 THEORETICAL BACKGROUND

Organizational climate is a relative enduring characteristic of an organization which distinguishes it from other organization: (a) and embodies members collective perceptions about their organization with respect to such dimensions as autonomy, trust, cohesiveness, support, recognition, innovation and fairness: (b) is produced by members interaction; (c) serves as a basis for interpreting the situation; (d) reflects the prevalent norms, values and attitudes of the organizations culture; and (e) acts as a source of influence for shaping behavior. (Moran and Volkwein, 1992, p.2) Francese (1993) who examined the effect of climate in service responsiveness; Meudell and Gadd (1994) who studied climate and culture in short life organizations; and Vallen (1993) who was concerned about organizational climate and service staff burnout. Organizational climate has much to offer in terms of its ability to explain the behavior of people in the workplace. Ashforth (1985, p. 838) put forward the view that climate has the potential to facilitate a truly integrative science of organizational behavior, The atmosphere that employees perceive is created in their organizations by practices, procedures and rewards Employees observe what happens to them (and around them) and then draw conclusions about the organizations priorities. They then sit their own priorities accordingly. (Schneider, 1994, p. 18) Schneider, Brief and Guzzo (1996, p.9) argue that sustainable organizational change is most assured when both the climate what the organizations, members experience and the culture what the organizations members believe the organization values change.

EARLY FORMULATIONS OF THE CLIMATE CONSTRUCT The concept of climate can be traced back to the work of Lewin, Lippitt and White (1939) and a work entitled Patterns of aggressive behavior in experimentally created social climates (Denison, 1996; Schneider, 1990). The Lewin et. Al. (1939) study investigated the relationship between leadership style and climate, a factor that has remained central to theA Study on Organization Climate in Ma Foi 2

concept, Joyce and Slocum (1982) trace the concept back to the studies of Koffka (1935) on behavior environment; Lewins (1936) study on life space; and Murrays (1938) work on organizational climate. Lewins (1951) approach to climate was conceptualized by the relationship between individuals, their social environment and how that is set in a framework. Lewin expressed this in terms of simple equation: B = f (P.E.) In which, B = Behavior, E= Environment, P = the person It is clear from Lewins equation that the concept of climate takes a psychological approach, focusing upon the individual and seeking to understand the cognitive processes and behavior. Lewins conceptualization of the theory provides the underpinnings of many studies and approaches to climate research. THREE APPROACHES TO THE CLIMATE CONSTRUCT James and Jones (1974) conducted a major review of the theory and research on organizational climate ad identified climate in three separate ways that were not mutually exclusive, (a) multiple measurement organizational attribute approach, (b) perceptual measurement organizational attribute approach, and (c) the perceptual measurement individual attribute approach. In the multiple measurement organizational approach James and Jones cite forehand and Gilmer (1964) as defining organizational climate as a defining organizational climate as a set of characteristics that describe an organization and that (a) distinguish the organization from other organizations (b) are relatively enduring over time, and (c) influence the behavior of people in the organization.

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Schneider and Bartlett (1968) had proposed four organizational climate dimensions,

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Individual autonomy: based on the factors of the individual responsibility, agent Interdependence, rules orientation and opportunities for exercising individual initiative.

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The degree of structure imposed upon the position: based on the factors of structure, managerial structure and the closeness of supervision.

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Reward orientation: based upon the factors of reward, general satisfaction, promotionalachievement orientation, and being profit minded and sales oriented.

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Consideration, warmth and support: based upon the factors of managerial support, nurturing of subordinates and warmth and support.

In reviewing psychological climate as a set of perceptually based, psychological attributes Jones and James (1979) noted that the process reflected the developments that had occurred in the conceptualization of climate and the nature of its major influences. They propose that psychological climate:

(a) refers to the individuals cognitively based description of the situation; (b) involves a psychological processing of specific perceptions into more abstract depictions of the psychologically meaningful influences in the situation; (c) tends to be closely related to situational characteristics that have relatively direct and immediate ties to the individual experience; and (d) is multidimensional, with a central core of dimensions that apply across a variety of situations(through additional dimensions might be need to better describe particular situations. (Jones and James, 1979, p.205)

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Schneider and Hall (1972) describe climate as a global perception held by individuals about their own organizational environment. Schneider and Snyder (1975) further clarified the approach by defining climate as a summary perception which individuals form of (or about) an organization. For them it is a global impression of the organization. CHARACTERISTICS OF ORGANIZATIONAL CLIMATE The nature of organizational climate will be clear from its following characteristics:

General perception: Organizational climate is a general expression of what the organization is. It represents the summary perception which people have about an organization.

Quality concept: It is an abstract and intangible concept. It is difficult to explain the components of organizational climate in quantifiable units.

Distinct identity: It reflects how an organization is different from other organizations. It gives a distinct identity to the organization.

Enduring Quality: It is built up over a period of time. It represents a relatively enduring quality of the internal environment that is experienced by the organizational members

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Multi dimensional concept: There are several dimensional of the concept of organizational climate such as individual autonomy, authority structure, leadership style, pattern of communication, degree of conflict and cooperation, etc.

DIMENSIONS OF ORGANIZATIONAL CLIMATE It is very difficult to measure organizational climate because it is multi dimensional concept. The important components that collectively represent the climate of an organization are as discussed below:

Member Orientation: The dominant orientation of an organization is the main concern of its members, and this is important determinant of climate. If the dominant orientation or concern is to adhere to established rules and regulations, the climate will be characterized by control, on other hand if the orientation is to produce ex