Chapter 5 Organizational Climate PDF

Because learning changes everything. ® Chapter 5 Organizational Climate © 2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of...

Because learning changes everything. ® Chapter 5 Organizational Climate © 2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  Learning Objectives Understand the impact of organizational culture Describe an organizational climate that attracts and keeps good people Describe the elements of true community © McGraw-Hill Education 2  Organization as culture Organizations resemble villages more than a “clearly focused structure” Social structures Habits and folkways governing dress, language, food, etc. Unspoken taboos Established norms of behavior govern use of resources Artifacts of the organizational village including rituals, stories, symbols based on deeply held assumptions, beliefs, and values © McGraw-Hill Education 3  Organization as culture, 2 A culture can be positive or negative, determined primarily by the decisions by and the example set by leaders Google attempts to create a positive work culture through two rules: 1. Think of your work as a calling with a mission that matters 2. Give people more trust, freedom, and authority than you are comfortable giving them © McGraw-Hill Education 4  Psychological Climate Even if an organization has a good vision, it must be supported by the organizational climate A psychologically healthy work environment brings out the best in employee and organizational well- being Organizational climate influences both the quality of work and quality of the work life of members © McGraw-Hill Education 5  Psychological Climate, 2 Important aspects of the psychological climate: Reward system Organizational clarity Standards of performance Warmth and support Leadership practices © McGraw-Hill Education 6  Psychological Climate, 3 Psychologically healthy work environment brings out the best in employee and organizational well- being Organizations are only as strong as the weakest link © McGraw-Hill Education 7  Psychological Climate, 4 Consider an exploitive or impoverished hospital: Those who can find employment elsewhere will leave Those who remain will spend the majority of their time complaining about working conditions and management practices The result will be unattended patients, poor housekeeping, and medical and clerical errors These unnecessary mistakes are due to human factors – untrained, unqualified, and uncommitted workers © McGraw-Hill Education 8  Figure 5.1: Extent to which Leaders and Followers Agree on Organizational Conditions Jump to Figure 5.1: Extent to Which Leader s and Followers Agree on Organizational C onditions , Appendix © McGraw-Hill Education 9  Patterns of Leadership Rensis Likert identified the four patterns that correspond to the four types of organizational climate Exploitive Impoverished Supportive Enlightened His conclusions were based on studies of leaders in different organizations, inside and outside of the United States © McGraw-Hill Education 10  Pattern 1 Leadership: Exploitive Autocratic and hierarchical; Characterized by lack of loyalty and recurring financial crises These organizations rarely survive – people avoid them as much as possible Members: Do not participate outside of complying with orders Do not discuss job-related problems with leaders Leaders: Make all decisions Show little confidence or trust in others © McGraw-Hill Education 11  Pattern 2 Leadership: Impoverished Begins as a benevolent autocracy Has early successes, but as new leaders emerge the autocratic methods are maintained but the benevolence does not – and the organization fails Members: Participate in some decisions Leaders: Attempts to avoid being completely autocratic Power remains largely at the top © McGraw-Hill Education 12  Pattern 3 Leadership: Supportive Supportive leadership shows great interest and confidence in members. Leaders: Shows interest and confidence in members Involves member participation and involvement in decision-making Members: Understand the goals of the organization Committed to achieving those goals Feel free to discuss job-related problems © McGraw-Hill Education 13  Pattern 4 Leadership: Enlightened Delegates power to the logical focus of interest and concern for a problem. Communication is open, honest, and uncensored People are treated with trust Leaders ask for ideas – and use them Absenteeism and turnover are low © McGraw-Hill Education 14  Developing Enlightened Leadership 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 Enlightened leaders stand in contrast to toxic leaders that display the “dark triad” – narcissism, Machiavellianism, and psychopatology © McGraw-Hill Education 15  Benefits of Enlightened Leadership Performance effectiveness improves Costs decrease Satisfaction and health improve Applicable to all sizes and types of organizations © McGraw-Hill Education 16  Stories Stories can be used to develop and reinforce a positive work climate Can illustrate how things should or shouldn’t be done The greatest impact comes from describing real people known by employees throughout the organization © McGraw-Hill Education 17  Building Community in the Workplace Community is experienced in two ways: A group of people, formed by bringing people together in place and time A way of being, created when barriers between people are let down Creative cooperation when dealing with others involves: Valuing differences Building on strengths Transcending individual limitations Achieving the full potential of community © McGraw-Hill Education 18  Conditions for a True Community Shared vision Positive and future-focused image provides direction Wholeness incorporating diversity Community must face and resolve differences Shared culture Norms of behavior and core values that are shared are symbols of group identity © McGraw-Hill Education 19  Conditions for a True Community, 2 Internal communications People communicate freely, which is uncensored and flows in all directions Consideration and trust People are respected, valued, and treated humanely Maintenance and government Roles, responsibilities, and decision-making are conducive to achieving tasks © McGraw-Hill Education 20  Conditions for a True Community, 3 Participation and shared leadership Involvement of all individuals and opportunity to influence events and outcomes Development of younger members Mature members help young members develop knowledge, skills, and attitudes that reflect community values © McGraw-Hill Education 21  Conditions for a True Community, 4 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 and community’s need to have fruitful alliances with external groups © McGraw-Hill Education 22  The Struggle to Stay Flat and Fresh As organizations grow in size, there is a need for layers and divisions of responsibility Mid-level leaders are needed to guide work activities, coach employees, and manage organizational growth Too many layers of management lead to a reduction in creativity and performance © McGraw-Hill Education 23  Flat Organizations “Flat” organizations have few layers of management, resulting in: Increased efficiency Faster information transfer Faster response Power focused on employees © McGraw-Hill Education 24  Tall Organizations “Tall” organizations have several layers of management, resulting in: Higher overhead costs due to cost of managers Slower transmission of information Slower response time Undermining of employee satisfaction due to power being focused on managers © McGraw-Hill Education 25  Merging Cultures Culture is an important factor when organizations merge Not every merger is a good fit, culturally Organizations should consider the integration of cultures prior to the deal taking place © McGraw-Hill Education 26  Merging Cultures, 2 Organizations can do their cultural due diligence by: Talking to past members of the organization Interviewing common customers, suppliers, and industry analysts Check for compatibility of reward systems, performance standards, leadership practice, feedback and controls, and attitudes toward innovation © McGraw-Hill Education 27  End of Main Content Because learning changes everything. ® www.mheducation.com © 2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.