2. Organizational Climate
Different organisations have distinct
personalities due to its particular social system
This social system has a CLIMATE that is
defined as the “characteristics of the total
environments in a organisation building”.
2
4. Research on Organizational Culture
4
Theory Z : William Ouchi
Ouchi compared Japanese and U.S. management
practices.
He applied Japanese practices in the U.S. and, using
McGregor’s concept of Theory X and Y, called it
Theory Z.
Theory Z accepts the concepts of human resources
development.
5. Research on Organizational Culture
(continued)
5
In Search of Excellence by Tom Peters
Research showed that successful organizations,
had a consistent theme: “the power of values
and culture in these corporations rather
than procedures and control systems,
provides the glue that holds them together,
stimulates commitment to a common
mission, and galvanizes the creativity and
energy of their participants.”
6. Organizational Culture and Climate
Compared and Contrasted
Culture “refers to the behavioral norms,
assumptions, and beliefs of an organization.”
“the way things are done around here”.
Climate “refers to perceptions of persons in the
organization that reflect those norms,
assumptions, and beliefs.”
6
7. Organizational Culture and Climate
Compared and Contrasted (continued)
7
Schein’s Model of Levels of Culture describes culture
as:
A body of solutions to problems that is believed to be the
correct method for perceiving & thinking about problems.
These solutions become assumptions about reality, truth,
human relations, etc.
These assumptions become internalized and operate as a set
of unconscious assumptions taken for granted.
These assumptions are manifest by artifacts and
values that can be studied through qualitative
methods.
8. How Organizational Culture is Created
Culture is developed over time from :
An organization’s history, composed of traditions
and rituals that are passed to succeeding
generations.
Stories of heroes and heroines are important.
Values and beliefs that are embodied in the
traditions and rituals.
Behavioral norms that result (e.g., bell schedules,
7-period day).
8
9. How Organizational Culture is Created
(continued)
9
Organizational culture has a powerful
impact on climate:
High performers have a “culture of pride.”
This is found in organizations that are
integrative.
This culture fosters a climate of success.
10. How Organizational Culture is Created
(continued)
Sub units within an organization may have
cultures of their own resulting in multiple
cultures.
Theory X administrators believe this conflicts with
their authority.
Theory Y administrators accept them as natural.
10
11. How Organizational Climate is Created
Organizational climate is created by the dynamic
interaction of:
Ecology
Milieu
Organizational Structure
Culture
11
12. How Organizational Climate is Created
(continued)
Behavioral Settings: the complex physical and
psychological environment of the organization in which
individuals interact.
12
13. How Organizational Climate is Created
(continued)
Interaction-Influence System is the central concept in
Organizational Behavior.
The structure and processes of interactions among
individuals is the interaction-influence system.
Interaction-Influence System includes:
Communication, motivation, leadership goals setting,
decisions making, coordination, control and evaluation.
How these work in a school influence and shape behavior.
Describing organizations, therefore, is describing the
interaction-influence system.
13
14. Relationship Between Organizational Culture and
Organizational Effectiveness
14
Rensis Likert’s analysis led him to conclude that
there are causal variables under a leader’s control
that affect climate and organization performance :
Organization structure: bureaucratic or flexible.
Leadership style: authoritative or democratic.
Philosophy of operation: consensus decision making or
not.
The choices leaders makes are critical to
determining the nature of the management system
in the organization. That is, Likert’s System 1, 2, 3,
or 4.
