Factors Affecting Organizational Climate And Retention Business Essay


It is a set of characteristics that describes an organisation and that differentiate one organisation to another organisation. And it influences the behaviour of people in the organisation.


It is a relatively enduring quality of the internal environment that is experienced by its members, influence their behaviour .

Just every individual has a personality that makes him unique , each organisation has an organisational climate that clearly differentiate its personality from other organisation. It is a An organisation tends to attract and keep people who fit its climate, so that its patterns are perpetuated at least to some extent.


Organisational climate is the summary perception which people have about an organization. It is a global expression of what the organisation is. Organisation climate is the manifestation of the attitudes of organisational members toward the organisation itself. An organisation tends to attract and keep people who fit its climate so, that is patterns are perpetuated at least to some extent. Forehand and Gilmer have defined organisational climate as "a set of characteristics that describe an organisation and that: (a) distinguish one organisation from another, (b) are relatively enduring over a period of time, and (c) influence the behaviour of people in the organisation.

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# Features of organisational climate

Organisational climate is an abstract and intangible concept. But it exercises a significant impact on the behaviour and performance of organisational members.

It is the perceived aspect of organisational internal environment.

It refers to the relatively enduring characteristics which remain stable over a period of time.

It gives a distinct identity to organisation and do difference from one to other organisations.

Total expression of what the organisation is all about.

It provide the view of people behaviour about the organisation.

It's a multi- dimensional concept .


# Elements of organisational climate

Individual autonomy

It implies the degree to which employees are free to manage themselves, have considerable decision- making power and are not continuously accountable to higher management.

Position structure

The degree to which objectives of jobs and methods for accomplishing it are established and communicated to the employees.

Reward orientation

It means the degree to which an organisation rewards individuals for hard work or achievement. It is high when an organisation orients people to perform better and rewards them for do the work.

Task orientation

If the management is task oriented , the leadership style will be automatic do the work.

Relations orientation or consideration

The organisational climate will be considerate and supportive if the managers are

Relation- oriented while dealing with employees. Employee needs are very important in any organisations. This will give motivation to employees.

Job satisfaction

Employee satisfaction are very important for any organisation, and it is very important in organisational climate. It gives motivation to employees to work more and more.


It gives attitudes and sentiments of organisational members towards the organisation members. If it is high , there will be an atmoshphere of cooperation in the organisation.

But if the morale is low, there will be conflicts between employees.


Having full control over the workers. Control is either two types either flexible or flexible.

Factors Affecting Organizational Climate and Retention

Organisational change

Change refers to new reporting relationships, responsibilities, procedures, policies, equipment, tools, and/or software used on the job. Think about how an organization or work unit responds to change as a whole, rather than how individuals respond. Communication

Communication addresses how information flows in an organization.


Service is defined as meeting the needs and expectations of the persons (children, youth and families) for whom you are performing your work. This does not refer to the management, but the persons who benefit from the work.


Monetary compensation is an employee's gross payroll pay rate and benefits programs funded by an organization or agency. Flextime and benefits like agency-based childcare are closely related to compensation.

Organizational Culture

Culture describes how things are done in an organization or agency.


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Decision-making is the process used in selecting a solution to a problem, deciding how to allocate funds or resources and how to reorganize work.

Individual Competencies

Competencies refer to work related skills and knowledge.


Morale is how an employee feels about him or herself. How good or bad do they feel about their self-image in relationship to what they do where they work and how they are doing at their place of employment.

Performance Evaluation

Performance evaluations are formal, written appraisals of an employee's work as well as informal verbal feedback given to employees about work by supervisors or by team members in self-directed work teams.


Quality refers to doing things right the first time. Quality services means meeting the needs, standards, and expectations of clients being served.


Relate to the employee's relationship with the person to whom they report in an organization.

Training and Development

Training and development refers to work related educational experiences offered by the organization to its employees to increase their skills and knowledge.


The organization's mission is its purpose for providing services to its clients (children, youth and families)

# Problems of low productivity

In our work with individuals and organizations, we have found that most people want to perform well, but internal and external factors detract from their working at their potential. Here are the most common reasons f low performance and productivity:

1. Wrong person in the job.

2. Right person in the wrong job.

3. Right person in the right job being wrongly managed.

4. Lack of focus, vision, priorities, or direction.

5. Lack of ownership or participation by staff or team.

6. Inadequate communication between staff or departments.

7. Conflict that has not been dealt with.

8. Inadequate training or coaching to do the job.

9. Inadequate resources or tools to the job.

10. Personal problems interfering with people's ability to work at their best.

The first step in improving performance is identifying what factors are interfering and how. The best tool for finding the root causes in companies is the organizational audit. The audit uses in-depth interviews, surveys, feedback, and analysis to reveal why there are blockages and what to do about them. For individuals we use a combination of assessment tools, in-depth interviews, and feedback methods.

people think they "know what the problem is" and start immediately to focus on solutions. We have very effective and powerful tools for enhancing performance, but we know that using the best Many tools on the wrong problem will not solve anything. 

"Diagnosis is half the cure," someone has said. We would be happy to talk with you about how you or your organization can enhance performance. We can help you accurately identify problems and opportunities as well as achieve the performance needed to reach and exceed your goals.

The Effects of Low Productivity in the Workplace

By Anna Assad, eHow Contributor

Low productivity in the workplace can severely hinder a business operation. The decrease in employee work and results clogs the entire system, harming relationships with customers and delaying the delivery of goods and services. A decline in work production can be caused by stress, conflict, unclear goals or a poor management structure.

# Disorganization

Low productivity in the workplace leads to general disorganization among the staff, as the workers fail to complete routine tasks. Meetings can start late, run over the scheduled time or fail to address the true purpose for the discussion. Communication between the employees is delayed, and deadlines or requests for assistance end up lost.

# Employee Conflict

Employees in an unproductive workplace typically start to fight among themselves, especially those employees who are "picking up the slack" for the lagging staff members by performing duties outside of their normal jobs. Tempers flare as work is not being completed correctly or on time, and interpersonal work relationships can deteriorate as a result. Management might have a difficult time solving interpersonal problems among the staff, because the frustration the situation causes can hamper reconciliation efforts.

# Decline of Business

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Employees who are not working to the level needed to complete the common goal cause the overall business output to suffer. Services are not rendered on time, causing the loss of customers, and goods are not developed or produced as needed. A workplace with chronic low productivity can devastate a business, especially in a market where supply must be made quickly to meet customer demands.

# Stress

Low productivity and stress are commonly linked in a work environment. The lack of successful production and the resulting chaos from falling behind in work can make the employees feel stressed and pressured. The feelings can lead to an even further drop in productivity, because the situation becomes more tense and the employees feel like the work can never be caught up.

# Productivity on job helps the employer to know the performance of their workers. It assumes that high morale and productivity go together.

High productivity results shows that workers who have high morale, they do not skip their duty. They are more dedicated towards their work shows good team spirit, motivate their co-workers, and always ready to achieve their objectives.

But poor morale and productivity are also go together. People with low morale shows absenteeism , turnover, casual interest in work place. Such as ignorance, tension.

Somewhere it is found that morale was positively correlated with productivity. But somewhere else, no correlation was found between high productivity and high morale. It shows that employees , who perform very well in their work are not a well -satisfied people.

There are four possible combinations of morale and productivity:

(a) high morale and low productivity

(b) low morale and low productivity

© high morale and low productivity

(d) low morale and high productivity

The organisation should measure the morale of employees by using following methods:

Observation method

Morale survey

Study of morale indicators

Organisational climate should represent goals of those who have created and who run the organisation.

It is very difficult to maintain coordination between work groups.

The organisation should maintain high morale at workplace :

Incentive system

Welfare measure

Effective communication system

Social activities

Workers participation

# The management should improve the organisational climate by taking several measures. Every organisation requires a organisational climate for a good working condition to achieve its goals. The climate of a organisation is very important for taking decisions such as communication, cooperation, creativity, satisfaction, morale. All these elements are nessesary for the organisation. It would become more effective by a two way communication process between the boss and employees, to have better working environment in the organisation.

Such employees have higher job satisfaction and feel committed to the organisation. Their productivity will also be higher is instrumental to higher employee satisfaction, better relation and higher productivity. The importance of organisational climate in employees satisfaction and organisational effectiveness can shown with a hypothetical modal that specifies that relation between them.

The climate represent the climate represents the arena which is influenced by managerial policies , organisational structure, technology and external environment. When climate is conducive to the need of individuals, the management should expect results should be as per their expectation and the behaviour should be high. The feedback should also be as per the level of expectations , not only to the climate of a particular work environment, but also a possible changes in managerial policies and practices.

the climate has an important influence on performance and satisfaction of the employees. If the climate is favourable, there would be greater organisational effectiveness.

There is a relationship between employee performance and organisational climate.

There are three types of organisational climate :

Authoritarian structured

Democratic friendly

Achieving business

In authoritarian structured climate produced high quality goods due to rigid supervision and control.

In democratic friendly climate expressed maximum job satisfaction.

In achieving business climate produced the most common in terms of money, no. of new products.

# organisational climate influence satisfaction and performance through change in behaviour

There are four ways by which shows change in behaviour:

It shows the behaviour of an employee by its various elements.

It gives individual a choice of selection and decision - making.

Behaviour attracts different awards and punishments to varying patterns of behaviour.

It influence behaviour through self- evaluation , based on different physiological variables.

Job satisfaction, clarity of jobs, responsibility, supervisory support, safety, good working conditions, past experience.

According to L. james and allen jones have classified the factors that influence organisational climate into five major components are as follows:

Organisational context : Mission, goals, objectives, functions

Organisation structure : size, degree of centralisation, procedures

Leadership : leadership style, quality, communication, decision making .

Physical environment : worker safety, physical space charecteristics

Values and norms of the organisation : loyalty, impersonality

The only solution to changing the course of low productivity is by encouraging employees to do better and motivate them to achieve their organisational goals. Giving them higher incentives and wages, so that they can achieve their organisational goals.


How Managers and Employees in Influence Climate?

Management plays an important role in shaping the climate the organization. It does so by determining organisational goals, laying down organisational structure and pattern of communication and decision-making processes and also shaping of organisational norms and values. Besides, management also has direct control over the physical environment under which the employees work. In fact, management's control over these comments means that management has the ability to affect changes in climate through adjustments in any of the components. Given the nature of the make-up of an organisation's climate, the real effect of any action by management can never be accurately predicted. Nonetheless, management must take the initiative in improving the subordinate-manager relationship and the organisational climate The role of mangers in establishing a favourable climate is primarily action-oriented while the employees' role is one of reaction. The employees also exert their influence on organisational environment. They do so by trying to control their environment and bring about changes that will make their lot more endurable.


The following techniques may be helpful in improving the organisational climate:

(i) Open Communication

: There should be two-way communication in the organization so that the employees know what is going on and react to it.


 76The management can modify its decisions on the basis of employees 'reactions.

(ii) Concern for People

: The management should show concern for the workers. It should work for their welfare and improvement of working conditions. It should also be interested in human resource development.

(iii) Participative Decision-making

: The employees should be involved in goal setting and taking decisions influencing their lot. They will feel committed to the organisation and show cooperative attitude.

(iv) Change in Policies

: The management can influence organization climate by changing policies, procedures and rules.

(v) Technological Changes

: It is often said that workers resist changes. But where technological changes will improve the working conditions of the employees, the change is easily accepted. There will be a better climate if  


(ii) Concern for People

: The management should show concern for the workers. It should work for their welfare and improvement of working conditions. It should also be interested in human resource development.

(iii) Participative Decision-making

: The employees should be involved in goal setting and taking decisions influencing their lot. They will feel committed to the organisation and show cooperative attitude.

(iv) Change in Policies

: The management can influence organization climate by changing policies, procedures and rules. This may take time, but the change is long lasting if the workers see the change in policies procedure sand rules as favourable to them.

(v) Technological Changes

: It is often said that workers resist changes. But where technological changes will improve the working conditions of the employees, the change is easily accepted. There will be a better climate if the management adopts improved methods of work in consultation with the employees.