Meaning and Elements of Organizational Climate

PSYCH-105 Industrial Psychology

Chapter 9: Organizational Culture and Climate

Unit 1

Unit 2

Unit 3

Unit 4



The concept of organizational climate was introduced by human relationists in the late 1940s. Now it has become a very useful metaphor for thinking about and describing the social system.

Elements of Organizational Climate

1. Individual Autonomy

It implies the degree to which employees are free to manage themselves, have considerable decision-making power and are not continuously accountable to higher management. 

2. Position Structure

It refers to the degree to which objectives of the job and methods for accomplishing it are established and communicated to the employees.

3. Reward Orientation

It means the degree to which an organization rewards individuals for hard work or achievement.

4. Task Orientation

If the management is task oriented, the leadership style will be autocratic. The employees will have to speed up the pace of work to please their bosses. 

5. Relations Orientation or Consideration

The organizational climate will be considerate and supportive if the managers are relations- oriented while dealing with the workers.

6. Job Satisfaction

The workers feel happy if the jobs are designed to allow the workers to use their innovative skills.

7. Morale

Morale represents a composite of feelings, attitudes and sentiments of organization members towards the organization, superiors and fellow members. If it is high there will be an atmosphere of cooperation in the organization. But if the morale is low, there will be conflicts and poor cooperation among the workers. They will also feel disinterested in their work.

8. Control

The control system may be either rigid or flexible. If the control is rigidly followed, there will be impersonal or bureaucratic atmosphere in the organization. The scope for self regulation will be the minimum.

Steps to Build Positive and Employee Centred Climate

  1. Communication
  2. Values
  3. Expectations
  4. Norms
  5. Policies and rules 
  6. Programmes
  7. Leadership

Functions of Organizational Culture

  1. The main function of organizational culture is to define the way of doing things in order to give meaning to organizational life.
  2. Organizational culture also determines organizational behaviour, by identifying principal goals; work methods; how members should interact and address each other; and how to conduct personal relationships.

Author – Dr. Niyati Garg

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