1. Organizational Climate

2. Introduction Organizations resemble villages:
Rituals for dealing with significant events
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

3. Organizational Climate
Important elements:
Psychological climate
Supportive organizational climate
Important dimensions that determine organizational climate:
Reward system
Organizational clarity
Standards of performance
Warmth and support
Leadership practices

4. Organizational Climate
Organizations are only as strong as the weakest link
Organizational climate influences the quality of work and work life for members

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

6. Organizational Climate
Now consider an enlightened, supportive hospital
Standards are high
Leadership is effective
Goals and responsibilities are clear
Support prevails
The reward system enforces work

7. Organizational Climate
Enlightened and Supportive organizations are good investments because they:
Attract excellent personnel
Outperform counterparts
Organizations are composed of interdependent groups:
Success depends on conditions of subgroups
All units should develop an enlightened and supportive climate

8. Organizational Climate
Leaders and followers have different views about the climate
People in upper levels evaluate conditions more favorably than people in lower levels
See the example in Figure 7-1

9. Patterns of Leadership
Determine organizational climate
Establish character and define norms
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.

10. 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

11. Pattern II Leadership (Impoverished)
Leadership avoids being completely autocratic
Power remains at the top
Members sometimes participate in decision-making
Successful Pattern II
Benevolent autocracies, leaders show concern for members
Failing Pattern II
Autocracies without benevolence, do not consider ideas of members

12. 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

13. 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
Communication is open, honest, and uncensored
People are trusted
Satisfaction and productivity are high

14. 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
Leadership:
Developed a system for interaction, problem solving, and organizational achievement
Technically competent and has high goals

15. 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

16. Likert’s Ideas
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
Studies show when an organization moves to Pattern IV:
Performance improves, costs decrease, and satisfaction and health increases
Applicable to all sizes and types of organizations

17. Climate and Leadership Importance
John Hoerr’s ideas:
Organizations must have world-class ability to develop human capabilities
Cannot be a drag on the system; must be a leading variable

18. 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

19. 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

20. 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

21. Building Community in the Workplace
Interrelationship benefits are found in nature:
When two plants are planted close together, the roots co-mingle, and both grow better
When two boards are joined together, they hold more weight

22. 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

23. Conditions for True Community
John Gardner describes the conditions needed 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

24. 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
Participation and shared leadership—involvement of all individuals, and all influence events

25. Conditions for True Community
Development of younger members—mature members help young members develop knowledge, skills and attitudes that reflect community values
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

26. Building Community in the Workplace
Marvin Weisbord, “Productive Workplaces”
We hunger for community and are more productive when we find it
If we preserve individual dignity, opportunity for all, and mutual support, we will harness energy and productivity

27. Building Community in the Workplace
Scott Peck, “A World Waiting to Be Born”
Identifies leaders who are obstacles in creating a community
Community is difficult to achieve if leaders are resistant
If leaders want to achieve a positive and healthy environment it can be done under any circumstances

28. Building Community in the Workplace
Jay Conger, “The Brave New World of Leadership Training”
Building community is the most important task for leaders
Two leadership competencies that are related:
Visioning
Empowerment
Purpose of the vision:
Achieve a company goal
Create a dedicated community