PSYCH-105 Industrial Psychology

Chapter 9: Organizational Culture and Climate

Unit 1

Unit 2

Unit 3

Unit 4

Appendix

Difference between Organizational Climate and Organizational Culture

Organizational climate is a reflection of the way people perceive and come to describe the characteristics of their environment, and organizational culture reflects the way things are done in an organization. 

Culture is widely understood to be made up of a collection of fundamental values and belief systems which give meaning to organizations. Organizational climate consists of more empirically accessible elements such as behavioural and attitudinal characteristics.

Factors Influencing Organizational Climate and Culture

Lawrence James and Allan Jones have classified the factors that influence organizational climate into five major components:

  1. Organizational Context: Mission, Goals and Objectives, Functions etc.
  2. Organizational Structure: Size, Degree of centralization and Operating procedures.
  3. Leadership Process: Leadership styles, Communication, Decision making and Related processes.
  4. Physical Environment: Employee safety, Environmental stresses and Physical space characteristics.
  5. Organizational Values and Norms: Conformity, Loyalty, Impersonality and Reciprocity.

Author – Dr. Niyati Garg

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