1. Organizational Climate
Chapter 5
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2. Introduction Organizations resemble villages:
A certain pace and style of working
Unspoken taboos
Social structures, pecking orders, and patterns of behavior based on community values
Habits governing dress, language, food, and the like
Norms of behavior governing use of resources
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3. Organizational Climate
Important dimensions that determine organizational climate:
Reward system
Organizational clarity
Standards of performance
Warmth and support
Leadership practices
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4. Organizational Climate
Organizations are only as strong as the weakest link
Organizational climate influences the quality of work and work life for members
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5. Organizational Climate
Consider an exploitive or impoverished hospital
The best workers leave
Those who stay spend more time complaining than working
The result is unattended patients, poor housekeeping, and medical and clerical errors
The unnecessary mistakes are due to human factors: untrained, unqualified, and uncommitted workers
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6. Organizational Climate
Now consider an enlightened, supportive hospital
Standards of performance are high
Leadership is effective
Goals and responsibilities are clear
Support prevails
The reward system reinforces work
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7. Organizational Climate
Enlightened and Supportive organizations are good investments because they:
Attract excellent personnel
Outperform counterparts
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8. Organizational Climate
Organizations are composed of interdependent groups:
Success depends on conditions of subgroups
All units should develop an enlightened and supportive climate
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9. Extent to Which Leaders and Followers Agree on Organizational Conditions
Figure 5-1
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10. Patterns of Leadership
Rensis Likert:
Identified four leadership patterns that correspond to the four types of organizational climate
His conclusions were based on studies of leaders in different organizations, in and out of the U.S.
Leaders:
Determine organizational climate
Establish character and define norms
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11. Pattern I Leadership (Exploitive)
Autocratic and Hierarchical
Members
Do not participate
Expected to comply
Do not discuss problems with leaders
Leaders
Make decisions
Do not trust others
These organizations rarely survive
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12. Pattern II Leadership (Impoverished)
Leadership avoids being completely autocratic
Power remains at the top
Members sometimes participate in decision-making
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13. Pattern II Leadership (Impoverished)
Successful Pattern II
Benevolent autocracies, leaders show concern for members
Failing Pattern II
Autocracies without benevolence, do not consider ideas of members
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14. Pattern III Leadership (Supportive)
Show interest and confidence in members
Have power
Communication throughout the organization
Members:
Understand the goals and want to achieve them
Discuss problems with leaders
Involves member participation and involvement in making decisions
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15. Pattern IV Leadership (Enlightened)
Leaders delegate power to the logical focus of interest and concern for a problem
People have freedom to initiate, coordinate, and execute to accomplish goals
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16. Pattern IV Leadership (Enlightened)
Communication is open, honest, and uncensored
People are trusted
Satisfaction and productivity are high
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17. Pattern IV Leadership Likert describes as:
Work groups with high degree of loyalty and favorable attitudes
Consideration for others and problem solving skills
Communication is efficient and effective
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18. Pattern IV Leadership Leadership:
Developed a system for interaction, problem solving, and organizational achievement
Technically competent and maintains high performance goals
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19. Pattern IV Principles
View human resources as the organization’s greatest asset
Treat every individual with understanding, dignity, warmth, and support
Tap the constructive power of groups through visioning and team building
Set high performance goals at every level of the organization
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20. Pattern IV Leadership
Studies show when an organization moves to Pattern IV:
Performance effectiveness improves
Costs decrease
Satisfaction and health increases
Applicable to all sizes and types of organizations
All organization’s should adopt Pattern IV leadership principles
U.S. organizations are between Pattern II and III
Shifting to Pattern IV would improve employee morale and productivity
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21. The Power of Stories
Stories can develop and reinforce a positive work climate
Prescribe the way things should or should not be done
Have great impact when describing real people and are known by employees throughout the organization
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22. The Power of Stories Example: “Malice in Dallas”
Southwest Airlines vs. Stevens Aviation
Dispute over ad campaign, “Just Plane Smart” led to arm wrestling match
All Southwest employees know this story, which communicates the values of the company
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23. Building Community in the Workplace
Thomas Carlyle, Scottish Philosopher
Each person wants to be treated as unique and valuable
Each person has a need to belong to something greater than self
Feelings of self worth and transcendence to something greater
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24. Building Community in the Workplace
Apply the cooperation in nature to dealing with others:
Value differences
Build on strengths
Transcend individual limitations
Achieve the full potential of the community
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25. Conditions for True Community
Shared vision
a positive and future-focused image provides direction
Wholeness incorporating diversity
must face and resolve differences
Shared culture
norms of behavior and core values that are shared and are symbols of group identity
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26. Conditions for True Community
Internal communications
people communicate freely, it is uncensored, and flows in all directions
Consideration and trust
people are treated humanely, are respected and valued
Maintenance and government
roles, responsibilities, and decision-making are conducive to achieving tasks
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27. Conditions for True Community
Participation and shared leadership
involvement of all individuals, and all influence events
Development of younger members
mature members help young members develop knowledge, skills and attitudes that reflect community values
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28. Conditions for True Community
Affirmation
the community celebrates its beginnings, rewards its achievements, and takes pride in its challenges
Links with outside groups
need to draw boundaries to accomplish tasks, must have outside alliances
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29. Community Building and the Role of the Leader
Dave Packard and Bill Hewlett set out to create a company that would attract like-minded techies
Greatest innovation was managerial
Granted bonuses to employees based on company’s profitability
Employees worked in open cubicles
“the HP way”
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30. The Struggle to Stay Flat
Tall organizational structures have higher overhead costs
Layers of hierarchy tend to slow down the transmittal of information
Tall structures tend to undermine employee satisfaction and organizational commitment
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