Holmes Institute: Organizational Climate Change Analysis Report

This report examines the concept of organizational climate and its significant impact on employee motivation, satisfaction, and overall performance. It delves into the factors that shape organizational climate, including employee perceptions, work environment, and leadership styles. The report highlights the importance of a positive work climate in fostering employee engagement, productivity, and innovation. It explores the Burke Litwin model of organizational change and transformational leadership as a framework for creating a positive climate, emphasizing the role of leaders in shaping organizational culture and driving positive change. The report also addresses practical strategies for improving the work environment, such as providing clear job roles, offering regular feedback, and recognizing employee contributions. Through a comprehensive literature review and analysis, the report provides valuable insights into the dynamics of organizational climate and its implications for organizational success. The report also provides a detailed analysis of the impact of organizational culture on the employees and the organization as a whole, providing the relationship between organizational climate and organizational culture.

Running head: ORGANIZATIONAL CLIMATE CHANGE
ORGANIZATIONAL CLIMATE CHANGE
Name of Student
Name of the University
Author Note

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Abstract
The aim of the paper is to study the concept of organizational climate and its impact on the
organization. The employee’s motivation and satisfaction have been some of the major concerns
for organizations these days. This is so because organizations cannot improve its performance
and keep its employees engaged without a positive organizational climate and culture.

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Table of Contents
Abstract............................................................................................................................................1
Introduction......................................................................................................................................3
Background..................................................................................................................................3
Problem statement.......................................................................................................................3
Research aims and objectives......................................................................................................4
Research questions.......................................................................................................................4
Literature review..............................................................................................................................5
The concept of climate change in organization and organizational culture................................5
The impact of climate change in organization and how to create a positive impact of climate
on the employees.........................................................................................................................7
References......................................................................................................................................10

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Introduction
Organizational Climate refers to the employee’s experiences with the organization and
their perception related to the same (Iljins, Skvarciany and Gaile-Sarkane 2015). Different
organizations have different climates and it can have an impact on the individuals working in the
organization because a positive work climate can motivate the employees to improve their
performance. Organizational climate affects the behavior of the employees in the organization.
Background
There have previously been different researches in order to understand the concept of
organizational climate change and its impact on the organization. According to the research by
Iljins, Skvarciany and Gaile-Sarkane (2015), of Riga technological university they tried
understanding the relationship between organizational climate and culture and its impact on the
organization (Schneider et al. 2017). Organizations have to undergo changes continuously and
climate change refers to the experiences of the employees with their work environment. The
organizational climate can be changed with the help of certain factors in order to improve their
experience with the help of proper leadership. However, in order to improve the experience of
the employees permanently the organization should undergo a change in not only its climate but
also its culture and with the help of proper leadership.
Problem statement
In order to carry out a climate change in the organization, it is not just sufficient to
change the climate with the help of changing the organizational structure or by changing the task
requirement and by changing the organizational systems such as changing the individual needs
(Steers and Lee 2017). These factors surely help in improving the employee motivation in order

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to improve their performance of the individual. However the organizational performance and the
individual performance as a whole can be improved with the help climate change in the
organization.
Research aims and objectives
The aim of the paper is to show how organizational climate change and organizational
cultural changes are closely related to each other and can effectively be carried out with the help
of an effective transformational leader.
Research questions
To evaluate the concept of organizational climate change and cultural change in
organization and to see examine their impact on the organization.

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Literature review
The concept of climate change in organization and organizational culture
Figure 1: Organizational Climate
Source: (Shanker et al. 2017)
Organizational climate refers to the set of perceptions about the work environment that
people have while working in organizations and these factors have a direct impact on their
behavior and motivation. The organizational climate refers to perceptions related to the work
environment of the employees, it can also be referred to as the psychological atmosphere of the
organization. This concept of organizational climate refers to the relationship between the
employees and the employers and it influences the quality of the work environment (Huang et al.

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2016). It is the level of support the employees feel they get from the employers. The
organizational structure is an important determinant of the organizational culture because if the
organization follows a matrix structure it is common for the employees to experience free
communication with the employers and others in the organization. Therefore it can be said that
the organizational climate is a reflection of the motivation and satisfaction of the employees of
the organization as it determines the employee’s behavior (Körner et al. 2015). It is therefore
important to have a positive climate in the organization because of all the above mentioned
factors. In case an organization wants to improve the climate it has to start the same with
identifying the key points that are responsible for creating an efficient organizational climate and
it becomes important to find out all the factors that keep an employee motivated or unmotivated.
There can be various small motivators for the employees the lack of which can have a negative
impact on them. For instance, one of the major goals for companies these days is to reduce cost
and in order to achieve the same sometimes the companies take certain small steps that can have
a major impact on the employees like stopping the supply of coffee in the company (Judge et al.
2017). Most employees are motivated from small activities such as chatting with colleagues
while having coffee and this provides a type of refreshment to the employees. In the absence of
this, their motivation level may be affected and as a result their behavior may be negatively
impacted. Team unity has an impact on the employees and in order to achieve the same the
employers must provide regular feedbacks to the employees and also to provide recognition of
performance of the employees. The organizational climate should be such where people have
clear job roles as who is expected to do what and this is the major point where most of the
conflicts arise due to unclear roles such as which employees are responsible for taking the most
important tasks or projects.

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The impact of climate change in organization and how to create a positive impact of
climate on the employees
Work climate or the work environment refers to the place in which an employee works. It
is the milieus surrounding a person. This has significant impacts on the employee productivity
and performance. The processes, structures, tools, systems and other conditions are all included
in the work climate of an organization. It also includes the culture, rules, procedures and other
factors that influences the way people perform their jobs. The employee’s motivation and
performance is affected by the quality of the workplace climate that an individual exists in. The
employee’s engagement with the organization on the basis of the workplace culture has an
impact on the employee’s innovation, absenteeism and other factors. The work environment also
has an impact on the ability to undertake task and therefore can affect the well-being and health
of the employees. The way in which allocation of tasks place also has an impact on the
employee’s satisfaction and motivation. Some of the factors that have an impact on the
employees performance- the job description of the work allocated, the degree of support they can
expect, the level of commitment and engagement employees feel and others. In order to improve
the work climate and culture of the organization in order to improve the efficiency of the
employees of the organization through motivating and engaging them to the organization, Burke
Litwin had developed the model of organizational change and transformational leadership.
According to Burke Litwin, a transformational leader can help in changing the climate of the
organization as well as the culture of the organization in order to improve the engagement and
commitment of the employees (Schrock et al. 2016). These leaders help in sharing the mission
and vision of the company with all the employees of the company such that employees feel that
they are being involved in various decision of the management. The leader can help in creating a

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culture of shared vision, empowering employees in the organization such that they can take part
in the major decision making of the company and other activities and the leader can also ensure
that the climate is such that the employees feel satisfied with their job (Kasemsap 2017). These
leaders can help in having free communication in the organization and therefore help in
collaboration of the employees with each other and therefore improve the interaction between the
people. The following diagram shows how the transformational leader can carry out climate and
cultural change effectively in the organization.

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Figure 2: Burke Litwin Model
Source: (Burke 2017)

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References
Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
Huang, Y.H., Lee, J., McFadden, A.C., Murphy, L.A., Robertson, M.M., Cheung, J.H. and
Zohar, D., 2016. Beyond safety outcomes: An investigation of the impact of safety climate on
job satisfaction, employee engagement and turnover using social exchange theory as the
theoretical framework. Applied ergonomics, 55, pp.248-257.
Iljins, J., Skvarciany, V. and Gaile-Sarkane, E., 2015. Impact of organizational culture on
organizational climate during the process of change. Procedia-Social and Behavioral
Sciences, 213, pp.944-950.
Judge, T.A., Weiss, H.M., Kammeyer-Mueller, J.D. and Hulin, C.L., 2017. Job attitudes, job
satisfaction, and job affect: A century of continuity and of change. Journal of Applied
Psychology, 102(3), p.356.
Kasemsap, K., 2017. Unifying a framework of organizational culture, organizational climate,
knowledge management, and job performance. In Organizational Culture and Behavior:
Concepts, Methodologies, Tools, and Applications (pp. 327-355). IGI Global.
Körner, M., Wirtz, M.A., Bengel, J. and Göritz, A.S., 2015. Relationship of organizational
culture, teamwork and job satisfaction in interprofessional teams. BMC health services
research, 15(1), p.243.
Schneider, B., González-Romá, V., Ostroff, C. and West, M.A., 2017. Organizational climate
and culture: Reflections on the history of the constructs in the Journal of Applied
Psychology. Journal of Applied Psychology, 102(3), p.468.

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Schrock, W.A., Hughes, D.E., Fu, F.Q., Richards, K.A. and Jones, E., 2016. Better together:
Trait competitiveness and competitive psychological climate as antecedents of salesperson
organizational commitment and sales performance. Marketing Letters, 27(2), pp.351-360.
Shanker, R., Bhanugopan, R., Van der Heijden, B.I. and Farrell, M., 2017. Organizational
climate for innovation and organizational performance: The mediating effect of innovative work
behavior. Journal of vocational behavior, 100, pp.67-77.
Steers, R.M. and Lee, T.W., 2017. Facilitating effective performance appraisals: The role of
employee commitment and organizational climate. In Performance measurement and theory (pp.
75-93). Routledge.