Organizational climate consists of a set of characteristics that describe an

organization, distinguish it from other organizations are relatively enduring over

time and influence the behaviour of people in it. The organizational climate
describes the psychological atmosphere that shapes the common perceptions,
excitement and working environment of its members.
1)Orientation:
The domain orientation of an organisation is the main concern of its members, and the
dimension is an important determinant of climate. If the dominant orientation or concern is to
adhere to established rules, the climate will be characterized by control, on the other hand,
if the orientation is to excel, the climate will be characterized by achievement.

2)Interpersonal Relationship:
An organisation’s interpersonal-relations process is reflected in the way in which informal
groups are formed, and these processes affect climate. For example, if groups are formed for
the purpose of protecting their own interest, cliques may develop and a climate of control
may result; similarly, if people tend to develop informal relationships with their supervisors,
a climate of dependency may result.
 3)Supervision:
Supervisory practices contribute significantly to climate. If supervisors focus on helping their
subordinates to improve personal skills and chances of advancement, a climate
characterized by the extension motive may result, if supervisors are more concerned with
maintaining good relations with their subordinates, a climate characterized by the
affiliation motive may result.
4) Problem Management:
Problems can be seen as challenges or as irritants. They can be solved by the supervisor or
jointly by the supervisor and the subordinates concerned, or they can be referred to a higher
level. These different perspectives and ways of handling problems contribute to the creation
of an organisation’s climate.

5) Management of Mistakes:
Supervisor’s attitudes toward subordinate’s mistakes develop the organisational orientation,
which is generally one of annoyance or concern or tolerance an organisation approach to
maintain influence on the climate.
6) Conflict Management:
Conflicts may be seen as embracing announces to be covered up or as problem to be solved.
The process of dealing with conflicts has as significant effect on climate as that of handling
problems or mistakes.

7) Communication:
Communication, another important determinant of climate, is concerned with the flow of
information: its direction (topdown, bottom-up, horizontal), its dispersement (selectively or
to everyone concerned), its mode (formal or informal), and its type (instructions or feedback
on the state of affairs).

8)Decision Making:
An organisation’s approach to decision-making can be focused on maintaining good relations
or on achieving results. In addition, the issue of who makes decisions is important: people
high in the hierarchy, experts, or those involved in the matters about which decisions are
made. These elements of decision-making are relevant to the establishment of a particular
climate.
9) Trust:
The degree of trust or its absence among various members and groups in the organisation
affects climate. The issue of who is trusted by management and to what degree is also
relevant.

10) Management of Rewards:

Rewards reinforce specific behaviours; they are by arousing and sustaining specific motives.
Consequently, what is rewarded in an organisation influences the motivational climate.

11) Risk Taking:

How people respond to risks and whose help is sought in situations involving risk are
important determinants of climate.

12) Innovation and Change:

Who initiates change, how change and innovations are perceived, and how change is
implemented in all critical establishing climates.
Richard M. Hodgetts (1991) has classified organisational climate into two major categories.
He has given an analogy with an iceberg where there is a part of the iceberg that can be seen
from the surface and another part that is under water and is not visible. The visible part that
can be observed called as overt factors. The secondary invisible parts that are not visible are
called covert factors. Both of these categories are shown below in the form of an iceberg.

OVERT ACTORS COVERT FACTORS

Hierarchy Attitude
Financial resources Feeling
Goals of organisation Norms
Skills and abilities of personnel Values
Technological state Interaction
Performance standards Supportiveness
Efficiency measurement Satisfaction
1)Overt Factors:
The overt factors are tangible, straight forward and publicly observable elements. Overt
factors can be measured and fair assessment can therefore be made about the intentions of
the management and efforts they are putting in to build an appropriate organizational
climate. This include:
a)Hierarchy:
The professional status of an individual in the organizational hierarchy can effect his
perception of organizational climate.
b) Goals of Organization:
Steers believes that if the organization goal is to achieve favourable feedback and
performance, the climate facilitating success will be more suitable, likewise if the
organization aims to satisfy its staff, a friendly climate will mostly suit it. Thus, goals of
organization also affect in organizational climate.
c) Technological State of Organization:
The development of technology can also shape the organizational climate. Technology
encompasses major techniques and methods in organizational
processes. Changes brought about by technology may result to the
displacement of human factor in favour of machines, utilization of skills,
training for the trainable and termination from service for those without
potentials for growth and development. These changes promote a climate of
distrust and suspicion on the part of labour in the midst of management
efforts to adopt new technology in order to remain competitive and achieve
efficient business operations.
4) Financial Resources:
Organizational climate is also affected by financial policies. At the most
primary level, the sheer amount of financial resources made available to
HRD influences attitudes toward personnel department all the way down the
line
5) Skills and Abilities of Employees:
Skills and abilities possessed by the people are keys to organizational
effectiveness and productivity therefore, organizational climate should
become conducive to develop potential and competencies of the employees
and provide opportunities for fulfillment
6) Efficiency Management:
Efficiency is generally defined by the quantitative relationship between input
and output. The most common approach to measure organizational
efficiency, is in terms of the ratio of inputs to outputs. Once it is accepted
that organization is one of the factors of production, its efficiency can be
measured on the basis of its contribution of productivity improvement. The
larger the ratio the more efficient the organization will be.
7) Performance standard Adopted:
Every organization to evaluate its performance requires standards to
compare its actual performance against past performance from performance
of similar agencies/ industry standards/political expectations.
2) COVERT FACTORS:
Covert factors deal with the elements that are intangible and depend on
culture or “Special Knowledge”. Covert factors cannot be quantified being of
subjective nature. These include:
a)Values and norms:
Every organization has discernible and fairly evident formal value system where certain
kinds of behaviour are rewarded and encouraged and
 and certain kinds of behaviour forces an individual to form sanctions. The
formal value systems is communicated to the employees through
rules,regualtions and policies. Although, in every organization the informal
organization also exists the value system of informal organization is very
difficult to ascertain. But from the point of view of organizational climate, both
formal and informal groups are very powerful in exerting influence on climate.
b) Attitude:
When employees feel that management is thinking about their welfare, they
maintain a positive attitude and this positive attitude helps to maintain
healthy atmosphere. Thus, when employees carry a positive attitude then
organizational climate can be favourable.
c) Satisfaction:
The satisfaction of employees with organizational climate is predictor of
better performance. The satisfaction of employees with organizational
climate enhances positive organizational outcomes efficiency, productivity,
organizational commitment and cohesiveness of co workers while it reduces
negative outcomes, turnover, deviant behaviourat work, absenteeism and
stealing of company property.
d) Feelings:
Organizational climate is an indication of employees feelings and beliefs of what the
organization is all about.

e) Interaction:
Organizational climate is characterized by the nature of the people organization relationship
and the superior subordinate relationship. These relationships are determined by
interactions among goals and objectives, formal structure, the process of management,
styles of leadership and behaviour of people.

f) Supportiveness:
The supportiveness of organizational climate has positive relationship with job satisfaction,
commitment with the organization and performance at work.
1) Increased Employee Performance:
Climate at the work place is an excellent predictor of performance of an
organization and employee, because positive environment results in
motivated who enjoy working.

2) Develop strong relationship:

Organizational climate supports manager to know the relationship stuck
between the processes and practices of the firm and the needs of
employees. By understanding how different practices and initiatives
stimulate employees, managers will be able to understand what motivates
employees to behave in a manner that leads to a positive climate and results
in the organization’s success.
3) Determinants of Success or Failure:
Organizational climate plays an important role in the success or failure of
organization. As if Organizational climate is good, employees will be willing
to be in association with others. Then employees like to perform the job
with pleasure and satisfactions. Therefore, organizational climate decides
the success or failure of the organization.

4)Develop Confidence:
When the organizational climate is good it develops confidence in the
subordinates. As subordinates will work hard and show confidence to their
superiors.

5) Develop a sense of Attachment with Organization:

Employees feels attachment with the organization as high morale attracts
and holds good employees for a long time. It results in increased job
performance and improves cooperation and brings unity.
1. Institute Rewards Equity to Motivate Employees
There are many theories regarding what motivates employees, and you will find that workers
respond differently when presented a slew of performance incentives. However, all workers
will be more motivated if they believe there is rewards equity within the organization.
Eliminating the appearance of favoritism and recognizing achievements that are not
necessarily "high profile" will go a long way to boosting the morale of workers.

2. Prepare Workers to Embrace Change

Resistance to change manifests itself into many symptoms that can create an organizational
climate that is full of stale air. Opening the windows to let the fresh air into the
organization is not always easy, especially if those windows have been shut for a long
period of time. This is why it is so important that change becomes an integral part of the
organization's culture.
3. Create a Sense of Purpose
Organizational climate is enhanced when coworkers feel a connection or bond with their
colleagues. Even if each employee has a different job within the organization, there needs
to be a unifying, core purpose in what they do that is tied back to the organization as a
whole.

4. Empower Employees for Better Execution

Employees want to feel that their work is valuable and they have some control in the final
product. Empowerment leads to better execution because employees who are closest to the
work product are able to address problems faster and have more ideas on how to improve
efficiency. While empowerment can take multiple shapes and form sit generally creates
positive perceptions of the employer/employee relationship within the organization.

5. Develop Honest Communications to Build Trust

Make sure the organization communicates clearly and often to the employees about the
true state of affairs, including the mission, goals, financial position, achievements and
missteps of the organization. No one likes bad news, but trust will never flourish in an
organization that refuses to air its dirty laundry. Keeping workers in the dark about the true
financial health of the company only creates rumor-mongering.
1.- People Oriented Climate:
The culture which is mainly comprised of a core set of values that emphasize care
and concern for the people of that organization.
2.- Rule Oriented Climate:
A culture with these featured values, focus attention to detail by all its
members, and therefore the culture results in a climate that was very much
rule-oriented.
3.- Innovation Oriented Climate:
When you seek from your team the introduction of new methods and
procedures as well as to develop the ability to try new things you are in
front of an innovation oriented culture.
4.- Result Oriented Climate:
The culture of any organization becomes result oriented when it values
results so much that every detail of every process is directed to acheving
and refining results.