Organizational Climate and HR Strategy Development

The organizational climate was defined by two psychologists … Litwin and Stringer. Later Mr. McClelland redefined their original version of the theory of the organizational climate.

The whole concept of the organizational climate refers to the main 6 key factors of the working environment.

Generally, the organizational climate is not a topic to ignore in the serious business discussions as the studies conducted bring the amazing results. The organizational climate has the overall impact of 33,3% on the success of the organization in the changing world around us.

The 6 key factors of the Organizational Climate

The organizational climate has 6 key elements:

  • Flexibility – how free the employees are to innovate
  • Responsibility – degree to which the employees feel free to work without asking for the permission and guidance from the manager
  • Standards – the sign the organization emphasizes the excellence, that the goals for the employees are really high but attainable
  • Rewards – the employees have to receive regular feedback and that they are rewarded accordingly
  • Clarity – the employees know, what is expected from them and how their efforts relate to the organizational goals
  • Team Commitment – the employees have to know they belong to the winning team or the winning organization and that all of the employees work towards the same goals or objectives.

The Organizational Climate Paradox

The manager or the leader cannot fulfill all the 6 key elements immediately. But out of 6 key elements of the organizational climate, the three ones are really key from the real beginning:

  • Standards
  • Clarity
  • Team Commitment

When these three elements are not met, the motivation of employees is lost and the position of the manager is in the danger as the team can start the search for the informal leader. Also, you can read more about the corporate culture as this is also very important for the organizational climate.