Impact of Organizational Culture and Climate on Commitment

This report delves into the concepts of organizational culture and climate, elucidating their distinct characteristics and impacts on employee behavior and performance. It explores how organizational culture, encompassing shared values and beliefs, shapes employee actions and job satisfaction. The report contrasts this with organizational climate, which reflects the employees' perception of their work environment and how it influences their motivation and commitment. It examines the influence of culture and climate on employee motivation, offering examples and highlighting the relationship between these factors and organizational commitment. Furthermore, the report analyzes different types of organizational cultures and climates, providing insights into their effects on team dynamics and overall business success, emphasizing the crucial role of leadership and human resources in fostering a positive and productive work environment.

Running head: Organizational behavior and design
Organizational behavior and design

Organizational behavior and design
Introduction
The report presents a brief idea about the culture and climate in which an organization
functions. The organizational culture and organizational climate are the two factors that
determine the mood of the employees who are interested in working for the organization. The
report explains that how culture and climate affect the performance of the employees. There is a
description of organizational culture which is explained in simple words in order to make readers
understand which goes parallel to the climatic factor of the organization. It shows the contrasting
features of between the culture and climate. The impacts and influences of these two
organizational tools are mentioned in the report. The way in which organizational culture and
organizational climate differ in one another is shown clearly. Also, there are certain examples
which flow with the description of organizational culture and organizational climate. It explains
that how these two factors shows their influence on employee motivation and how they relate to
the organizational commitment is drawn in the end.
Concept of Organizational Culture and Organizational Climate
Organizational Culture
The organizational culture is a system of sharing the opinions, values, and others believe.
The behavior of people working in the organization is governed by the culture of the
organization. The shared opinion strongly influences its impacts on the people working in the
organization. This addresses the way they act and shows their job performance. Every
organization has its own culture which it develops. It has guidelines, it has boundaries of how an
employee must behave in an organization (Van De Voorde, K., Paauwe & Van Veldhoven,
2012).
The organizational culture is characterized according to the priority from top to bottom.
Every organization uses these characteristics in its own way which defines the culture of the
organization in its unique form. Members of the organizations judge and evaluate these values on
the basis of cultural characteristics. These characteristics include Innovation, Attention to Detail,
emphasis on the outcome, emphasis on People, Teamwork, aggressiveness, and stability (Collie,
Shapka & Perry, 2012).
Organizational Climate
The climate of an organization is defined as the how firstly the members of organization
experience the climate of the organization. The climate of the organization depends on how well
the members work in the organization and how well the outputs they generate. The
organizational climate has to be positive and favorable in order to attain good heights and good
results. For this how employees functions on a task are very important. Hence organization
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should be aware of the needs and wants of employees to meet the satisfactory results (Hartnell,
Ou & Kinicki, 2011).
The climate of an organization changes frequently, hence the company should be aware of such
changes so that they can shape their management according to the demands of the company.
Climate represents the mood of the organization. Climate can be experienced easily and also can
be changed easily (Morgan & Yoder, 2012).
Concepts of Organizational Climate and Organizational Culture
The climate is the mood of the organization whereas personality of the organization is
represented by Culture. The terms which create differences in both the concepts are norms,
values, and behavior that are seen in employees of the organization. Not every organization
follows the same culture and climate like the other. They differ from each other (Adeniji, 2011).
The different types of climate that the culture of an organization has created can be categorized
as follows:
• People-oriented climate: The focus on individual’s perception that works in the organization is
categorized under people- oriented climate. It focuses on the employees of the organisation in
order to meet the goals and objectives of the firm.
• Rule-oriented climate: It is a climate that is based on establishing the rules in an organization
and also the policies and procedures of an organization. The framing of these different norms
come under rule- oriented climate (E. Rupp, 2011)
• Innovation-oriented climate: This type of climate helps in encouraging employees for creating
new methods of doing the tasks and duties.
• Goal-oriented climate: This type of climate focus on achieving the target or the goals that help
in raising the company’s reputation. The members of the organization work efficiently to achieve
one aim and objective.
The cultures of an organization have been classified as below.
• Clan culture: In this culture, the employees of an organization behave as a family with each
other. They are mentored and nurtured by the organization which makes the participation of a
number of employees easy (Schneider, Ehrhart & Macey, 2013).
• Adhocracy culture: The functioning of employees under this classification is dynamic in
nature. They are taught to take a risk and follow innovative techniques (Groves & LaRocca,
2011).
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Organizational behavior and design
• Market-Oriented culture: The aim of the employees under this classification is to focus on the
aim and fulfill the marketing demands. The employees seek for results and focus on their jobs.
• Hierarchically oriented culture – The employees are categorized from high to low based on the
position they hold in the organization (Bezrukova, Thatcher, Jehn & Spell, 2012).
For example, an educational institute follows the culture of hierarchy. The way of perceiving and
thinking about the things to achieve the aim is performed as an actor in the institution.
Organizational climate is identified as the individual’s perception that deals with the
quality and characterizes the culture of the organization. The true picture of the organization is
represented by organization’s culture, whereas the representation of perception of an individual
is categorized by the climate. The difference between the two is in the ideas that they show in the
company. The idea of organization’s culture is to work with macro vision but the picture of
performing in climatic condition is the idea concerning with micro image. Macro image means
large projects of the organization which requires a lot of imagination and creative ideas, while
micro vision is thinking creative ideas on various small projects (Naranjo-Valencia, Jiménez-
Jiménez & Sanz-Valle, 2011).
Influence and impact of Organizational Culture and Organizational
Climate on Employee motivation
Organizational culture defines the way of how an employee is capable of completing the
task and interacting with one another in the organization. The culture of organization works on
different values and follows different symbols that show the way of how people should operate
and manage in the company. The culture of organization ties the employees together and gives
them a way of operating in business. When the changes take place in the company, the biggest
challenge that it faces is with the changing of the culture. The organization for its culture is
dependent on the surrounding in which the operation of the company takes place. The main aim
of the organization is to believe in employee’s system of working and managing the style of the
company (Zohar & Hofmann, 2012).
For example, highly bureaucratic and well-structured organizations strictly follow the
culture with large controls. The employees of such organizations believe in following standard
procedures. They do this with proper discipline by following the hierarchy and by understanding
roles and responsibilities of each and every individual. The advantages that are seen in
motivating employees show their strong corporation in the cultures of the organization. It has
been observed that they work according to their belief and follows the ethics of the business. The
opinion of employees working with such belief and values for the business effectively builds the
team (Piccolo, Bono, Heinitz, Rowold, Duehr & Judge, 2012). This helps them in obtaining good
results. The good culture in the organization motivates employees in performing good tasks
within the norms of business. The employees working in the team do not have to face the
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Organizational behavior and design
conflicts which allow them to focus on completing the task. The effect of their performance can
have different impacts on their performance. The impacts are in favor of the company and this
increases their level of motivation. If the employees are a part of organization’s culture they tend
to work hard to achieve the goals set by the organization. There are varieties of cultures that
operate in business which marks an impact on the performance of the employees. For example, if
the organization makes a disciplinary rule where they will be asked to talk only when it is
necessary, they can work according to that culture. The performance and culture of the business
are evaluated and measured that how well the employees function. The behavior of employees
results in the better functioning of business (Büschgens, Bausch& Balkin, 2013).
In this contemporary corporate world, the aim of the organization is to give
its best performance in the market with the help of its employees. The department
responsible for motivating and guiding these employees. Thus, Human Resource
department plays a vital role in every organization. The HR department is the very
important asset for the organization. They are responsible for managing the
employees who work for the betterment of the business. They implement the policies
and procedures that motivate the employees. Employees have to commit to the human resource
department that they will be true to their work and will show proper loyalty. The impact of
organizational culture on motivating employees is seen giving results that are in favor of the
organization.
For example, in an airline industry the players use and share same planes but the satisfaction of
customers widely differs. The outcome of customer satisfaction results in the culture of the
organization (Azanza, Moriano & Molero, 2013).
Organizational Commitment
The environmental aspects that come under the working of the organization are the
organizational climate. They are generally functioned by the members of the business. It is their
daily business to work in whatever the climate an organization comprises within the
organization. The organizational commitments are the promises that members of the organization
make to the business for working efficiently and effectively. This type of commitment has three
dimensions which the company identifies (Yang, Huang & Wu, 2011). They are effective
commitments, continuance commitments, and organizational commitments. The commitments
that are attached to the emotions of the employees. The organization shows affection towards
employees by fulfilling the demand for this commitment. Employees are strongly dependent on
the organization to get their wants fulfilled. The continuance commitment means being aware of
the cost of the organization. the primary aim of the employee under such commitment is to
continuously work for the organization. Normative commitment is feeling obliged to those
employees who work continuously in the firm. The employees who work in the organization
from a long time tend to remain in the organization. This category comes under normative
commitment (Tsai, 2011).
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Organizational behavior and design
The relationship that exists between organizational climate and commitment of
organization is seen in between the dimensions culture and climate. Both the categories of
organization differ in terms of their feedback and the kind of response the members on
organization get from the authorities of the upper level and the employees who work in the
organization. Such commitment of organization indicates the contribution of the team in order to
get better results to serves the purpose of establishing the organization. What influences these
commitments is proper leadership and motivation which ultimately results in meeting proper
organizational goals and effective access to the market. The kind of decision making that is
possessed by the employees working in the organization relates to the commitment of the
employees made to the organization. Finally, the excitement of organizational commitment can
also be seen in the literary aspects depending on the variable as well as the antecedents of a
variable like age, tenure, and education (Van Wart, 2013).
Conclusion
On the above discussion, it has been evaluated that organization culture and climate play
a vital role in every organization in order to gain success and growth across the world. It is
shown what facilities company provides to its employees in order to get effective results. The
overflow of the idea of motivating the employees who work for the betterment of the company is
carried by human resource department (Fu & Deshpande, 2014). The report is a complete
representation focusing on how a company functions in order to get desired goals. The report
holds a complete picture of how the development of organization takes place and what kind of
climate in follows to achieve that place in the developed market. The guidance of the employees
by the human resource department adds benefit to the employees. Hence the report presents the
true picture of organizational functioning with the help of these two factors i.e. climate and
culture of the organization followed by few examples. These two factors are very important and
provides help in the operation and management of the business.
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