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Organizational culture and climate are important factors that influence employees. Organizational culture is a set of common understandings, while climate is a set of metrics that measure motivation and behavior. Rewards differ according to the climate, and success takes time to measure. The relationship between culture and climate is not static and can change as a company evolves.
A business or other organization is often a complex body that has many different internal forces that influence or govern employees. Two important factors include organizational culture and climate. The relationship between these two begins with organizational culture, which is a set of common understandings by which a company organizes itself. Organizational climate is a set of metrics that a company can use to measure motivation and behavior. Some common measurable properties between organizational culture and climate are flexibility, accountability, standards, and reward.
All companies have an organizational culture, which is the intangible force centered around a company’s values and beliefs. Different cultures can exist in a company, such as laissez faire or the aggressive use of creativity to advance the company’s operations. People typically work at a company with their most matching values. One result of organizational culture is the development of a climate through which a company can measure the successes associated with this intangible force. This initiates the relationship between organizational culture and climate.
Companies tend to have reward systems that help motivate employees to achieve goals. The rewards differ according to the organizational climate of the company. A company with an intrinsic rewards background tends to offer more motivational recognition, such as praise for a job well done. Extrinsic rewards are more common in an organizational culture that works with aggressive employees. Bonuses, compensation increases, and time off work well in this organizational culture and climate system.
Measuring success takes time and often needs modification for a business to determine which systems work best. While organizational culture is often a natural phenomenon in organizations, organizational climate often takes more work to implement. Most people have different motivational or behavioral needs. While organizational culture and climate have a proven connection, the factors linking the two can be very different. For example, some employees may want flexible hours; others may want a team effort from all individuals.
The organizational culture and climate of a company are not always static. As a company evolves, so does its culture. This often leads to changes in the organizational climate as managers and employees change, along with values and beliefs in the business. The organizational climate must adjust, if necessary, to ensure that the company measures the correct factors. For example, a company can switch from flex hours to compensation bonuses over time.
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