Unit -5 Organizational Climate | Business Organization-BBA 1st Semester

Organizational Climate | Business Organization-BBA 1st Semester-

UNIT-V

Organizational Climate

• Organizational climate is a general expression of what the organization is. It is the summary perception which people have about the organization. It conveys the impressions people have of the organizational internal environment within which they work.

Meaning and Definition:

• Before understanding the meaning of organizational climate, we must first understand the concept of climate.
• That organization deals with its members and their environment. For the individual members of the organization, climate takes the form of a set of attitudes and experiences. Which describe the organization in terms of both static characteristics (such as the degree of autonomy) and behavior outcome and outcome-outcome contingencies.”

Organizational effectiveness

• Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce.
• Organizational Effectiveness groups in organizations directly concern themselves with several key areas. They are talent management, leadership development, organization design and structure, design of measurements and scorecards, implementation of change and transformation, deploying smart processes and smart technology to manage the firms’ human capital and the formulation of the broader Human Resources agenda.
• If an organization has practices and programs in the areas above, the OE group does many or all of the following roles

1. Examines alignment between the areas and improves them
2. Improves trade-offs between reliability, speed and quality in the above areas
3. Strategizes for higher adoption rates in these areas
4. Facilitates/initiates/catalyses capability building: structure, process and people

• Rapid advances in social sciences and technology aided by clever experimentation and observation is bringing several truths to the light of society. There are several disciplines of social sciences that help the OE Practitioner be successful.
  

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Four of them are outlined below

Decision Making

• Ways in which real people make decisions, enabling them real time to make good decisions, improving quality of decisions by leveraging adjacent disciplines (for example-Behavioral economics) and replicating relevant experiments, creating new ones and implementing their results to make

Organizations effective

Change & Learning 

• Ways in which real people learn, change, adopt and align, get
• “affected” by dynamics in the environment and leveraging this knowledge to create effective organizations that are pioneers of change and learning Group Effectiveness – Ways in which real people work well together, especially in bringing new ideas and innovation, working of people to people protocols, impact of digitization and virtualization in organizations on these protocols .

Self-Organizing & Adaptive Systems-

• Ways in which self-organizing systems and highly networked systems work, learnings from them and the tangible ways by which they can be put to play to make organizations more effective
• The broader idea of organizational effectiveness is applied for non-profit organizations towards making funding decisions. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest.
• According to Richard et al. (2009) organizational effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation (either by shareholders, managers, or customers), such as corporate social responsibility.

Organizational development

• Organizational development can be defined as an objective-based methodology used to initiate a change of systems in an entity. Organizational development is achieved through a shift in communication processes or their supporting architecture. The behavior of employees allows professionals to examine and observe the work environment and anticipate change, which is then effected to accomplish sound organizational development.

Benefits of Organizational Development

• Increasing productivity and efficiency comes with many benefits. However, the best way to encourage positive results is by using a well-thought-out organizational development structure. The benefits of organizational development include:

Continuous development

• Entities that participate in organizational development continually develop their business models.
• In essence, the process builds a favorable environment in which a company can embrace change, both internally and externally.
• Increased horizontal and vertical communication Of considerable merit to organizational development is effective communication, interaction, and feedback in an organization. An efficient communication system aligns employees with mutual goals, values, and objectives.
• An open communication system enables employees to understand the importance of change in an organization..

Employee growth

• Organizational development places significant emphasis on effective communication to encourage employees to effect necessary changes. Many industry changes require employee development programs. As a result, many organizations are working towards improving the skills of their employees to equip them with market-relevant skills and the right attitude.

Enhancement of products and services

• One approach to change is employee development, and its critical focal point is a reward for motivation and success.
• In such a case, the engagement of employees is very high, which leads to innovation and productivity. Through competitive analysis, consumer expectations, and market research, organizational development promotes change.

Increased profit margins

• Organizational development influences the bottom line in many different ways. As a result of increased productivity and innovation, profits and efficiency increase as well.
• Costs come down because the organization can manage turnover and absenteeism. After the alignment of an entity’s objectives, it can focus entirely on development and product and service quality, leading to improvements in employee satisfaction.

Organizational Development Process

• A conventional approach in the organizational development process is the action research model.
• However, there is much more to the OD process than just research and engagement. .

Components of the Action Research Model

The action research model comprises six key components:

1. Problem diagnosis

• The organization development process begins by recognizing problems. The method of diagnosis usually takes the form of data gathering, assessment of cause, as well as an initial investigation to ascertain options.

2. Feedback and assessment

• The feedback and assessment step often involves proper investigation of identified problems so that there is a deep understanding of the challenge at hand. It can include an appraisal of documents, focus groups, customer or employee surveys, hiring consultants, and interviewing current employees.

3. Planning

•  The plan lays down all the intervention measures that are appropriate for the problem at hand. Usually, the measures include training seminars, workshops, team building, radical changes, as well as changing teams. Additionally, measurable objectives, which define the expected results, form an integral part of the overall plan

4. Intervention and implementation

• Once a plan is in place, the intervention phase commences The objective at this point is to ensure the required changes takes place.

5. Evaluation

• If the required change does not take place, the organization looks for the cause. Success denotes that the desired change took place Furthermore, as markets and organizations change, new problems can arise, leading to the push for further development. Great organizations evolve continuously.

Final Thoughts

• Organizational development is essential as it helps organizations transition into a productive phase. Change helps to bring new ideas and ways of doing things, and it ensures that an entity is innovative and profitable.

Advantages of Organization Development

• Organization development has some advantages. An organization can enjoy these advantages by resorting to all steps of OD systematically and scientifically. These advantages are as follows:

1. Change throughout the organization:

• Development activates are undertaken throughout the whole organization.

2. Greater motivation:

• After undertaking and completing the OD program, managers and employees feel motivated to work with joy.

3. Increased productivity:

• OD increases productivity. Because employees can work with new method and machines.

4. Better quality of work:

• Quality work, goods & services through successful OD program can be ensured.

      5. Higher job satisfaction:

• Managers and employees became satisfied with changed things and more facilities.

     6.Improved Teamwork:

• Employees get team spirit and teamwork may be encouraged as they become satisfied and motivated by top management.