ORGANIZATIONAL CLIMATE

&
ORGANIZATIONAL
EFFECTIVENESS
Introduction
 In planning, organizing manager must attempt to create
a work environment that is conducive to getting work
done.
 Creating a motivating environment is critical element in
meeting employee and organizational goal.
 Organizational climate is an important predictor of
organizational success
Research Studies (organizational Climate )

 Numerous studies have found positive relationships

between positive organizational climates and various
measures of organizational success
 A number of studies by Dr Dennis Rose and
colleagues (2001, 2002, and 2004) have found a very
strong link between Organizational Climate and
employee reactions such as stress levels, absenteeism
and commitment and participation.
Definition:

Baumgarte defines organizational climate along

the following lines.
“Organizational climate is a product of leadership
practices, communication patterns, enduring and
systematic characteristics of the working
relationships among persons and divisions of any
particular organization.”
Organizational climate & Motivation

 There is definite relationship between the

organizational climate and work motivation.
 Motivation may be defined as the ‘‘force within the
individual that influences or direct the behaviour.’’
 Motivation comes from within , manager can not
directly motivate the subordinates.
Organizational climate & Motivation continued…

 The humanistic manager however , create an

environment that maximize the human potential.
 All human beings have needs that motivate them.
 The leader manager, then create a work environment
in which both organizational and individual needs
can be met.
 Adequate tension must be created to maintain
productivity while encouraging subordinates’ job
satisfaction.
JCAHO
 The Joint Commission on Accreditation of
Healthcare Organization standards have stipulated
that leaders should provide a good work environment
to ensure staff competency by continuously assessing
employees so as to maintain and improve
competency levels (Wolgin, 1998).
Factors to be kept in mind for
motivating employees are :

1. An atmosphere is created which spark the

individuals for greater achievements.
2. Self motivation is dependent upon people’s self
esteem and expected image.
3. Beliefs and desires control and modify the
behavioural pattern.
Manager’s function is to help his subordinate to
understand his motivational pattern.
Factors to be kept in mind for motivating employees are
continued…….

4. The people who are highly motivated but have

unrealistic aspirations must be given worthwhile
objectives and should be helped to have insight to
their shortcomings.
5. If a person is not self motivated best combination of
sustained motivation is low image of himself. As a
man achieves his self image improves. An
atmosphere for self development is to be created
.
Guide lines for improving organizational
climate:

 Establish clear cut objectives and standards.

 Evaluate the performance against these standards.
 Discuss with the subordinates about progress.
 Take prompt and corrective actions including
discipline.
 Encourage and appreciate excellence among your
people.
 Consider your expectation for the man in terms of its
capacity.
Guide lines for improving
organizational climate continued…..
 Recognize the man with talent but also be appreciative
of less talented man.
 Try to assign immediate goals together with the feeling
of achievement.
 Give the main and difficult assignment on occasions.
 Give the man an understanding of organizational goals
and the part he has to contribute.
Major problems in organization climate

 Problem of motivating human resources

 Problem of underutilization of abilities
 Frustration
 Instigated behaviour
 Unfavourable job attitudes
 Low morale both in workers and managers
Nursing Research
 Research conducted by Hunter et al. (1990)
demonstrated that when nurses felt good about
being in an organization, they gave the best care to
patients, even under stress and various work
conditions, and were creative and energized in their
daily work.
For motivating What different
organization do ?

 An individual ’s motivation to work according to

Porter, Lowler and Vroom, depends upon his
specific needs as reflected in the goals towards
which he is moving and his perception of the
relative usefulness of productivity behaviour as path
to attainment of these goals.
For motivating What different organization do ?

 The research evidence suggests that managers and

supervisor seek recognition, achievement ,
responsibility and autonomy as satisfaction at work.
 Most organizations seek to employ performance
evaluation for motivational purposes.
For motivating What different organization do ?
Continued……

 Organizational development program are undertaken

to increase managerial motivation and effectiveness.
 Goals of each individual in an organization are
determined by his motivation.
 Understanding motivation is necessary to determine
the factors which prompts an individual to do his
best.
Role of Administration in
Motivation
1. Working conditions

For proper motivation among employees , the manager has to

create:
a. Conditions where workers energies are not extended totally in
meeting their basic needs.
b. A climate for interdependent work rather than dependency.
c. A competitive climate through recognition of good work.
d. A productive climate through personal example.
e. A climate approach and problem solving rather than avoidance.
f. Motivate individually through guidance and counseling.
2. Positive Reinforcement

Most powerful motivators the nurse manager, to create

motivating climate.
 Positive reinforcement must be specific or relevant in

a particular performance.
 The positive reinforcement must occur as close to the

event as possible.
 The reward feedback system must be achievable.

 Rewards should be unpredictable and intermittent.

3. Manager as a Role Model in
Organization

 Have a clear expectation for workers, and communicate these

effectively.
 Be a firm decision-maker using an appropriate decision-making
style.
 Be fair and consistent when dealing with all employees.
 Develop the concept of teamwork, develop group goals and projects
will build team spirit.
 Integrate the staff’s needs and wants with the organizations interest
and purpose.
 Know the uniqueness of each employee. Let each know that you
understand his or her uniqueness.
 Remove traditional blocks between the employee and the work to be
done.
Role of a Manager in creating
good organizational climate for
employees
Role of Manager

 Recognize each worker as a unique individual who is

motivated by different things.
 Identify the individual and collective value system of the
unit; and implement a reward system that is consistent
with those values.
 Listen attentively to individual and collective work values
and attitudes to identify unmet needs that can cause
dissatisfaction.
 Encourage workers to stretch themselves in an effort to
promote self-growth and self-actualization
Role of Manager
continued…..

 Maintain a positive and enthusiastic image as a role

model to subordinates in the clinical setting.
 Encourage monitoring, sponsorship and coaching
with subordinates.
 Devote time and energy to create an environment that
is supportive and encouraging to the discourage
individual.
 Develop a unit philosophy that recognizes the unique
worth of each employee and promotes reward
systems that make each employee feel like a winner.
Role of Manager
continued…..

8. Provide experience that challenge employee, and allow opportunity

for growth.
9. Request participation and input from all subordinates in decision-
making.
10. When possible, give subordinates recognition and credit.
11. Be certain that employees understand the reason behind decision
and actions.
12. Reward desirable behavior; be consistent in how you handle
undesirable behavior.
13. Create a trustful and helping relationship with employees.
14. Let employees exercise as much control as possible over their
work environment.
15. Be a role model for employees.
Components of jobs for the motivation of
executives
1. Growth : A manager needs to feel he is working
toward the highest level of responsibility.
2. Achievement: Each manager needs to believe its job,
matters.
3. Responsibility: Manager’s job must allow to
develop self reliance, knowing that success or failure
depends upon him.ievements.
4. Recognition: A manager needs verification from
others that they know his achievements.
A study on what motivates Executives

In public and private sector a study was conducted among

executives to know what motivates them. The main points
emerged were as follows:
 The recognition for good work done, and pay have been perceived
by public enterprises executive as more important motivators than
factors like promotion, job security, and decision making
authority.
 Status and monthly income greatly influence an executive ‘s
motivational attitude.
 Inconsistency in policy and lack of clear definition of
responsibility seem to bother the executive most.
 External constraints in the form of government interference do not
seem to bother the executives so much as is generally believed by
outsiders.
Nursing & Organizational Climate
 In the nursing care setting, Estabrooks et al. (2002)
noted that a positive nursing work environment
enables nurses to demonstrate professional
practice, such as decision-making capability.
 Davies et al. (2002) also stated that the nursing
work environment is an important factor that
influences nurses' research capabilities.
‘WHAT MAKES A GOOD CLIMATE?

 Clarity: everyone in the organization knows what is expected

of them
 Standards: challenging but attainable goals are set
 Responsibility: employees are given authority to accomplish
tasks
 Flexibility: there are no unnecessary rules, policies and
procedures
 Rewards: employees are recognized and rewarded for good
performance
 Team Commitment: people are proud to belong to the
organization Climate change will make your world a better
place
ORGANIZATIONAL
EFFECTIVENESS
Definition & meaning of
organizational effectiveness

 Organization
Organization may be defined as an arrangement for
the division amongst persons working towards a
common objective.
 A good organization postulates clear definition of
responsibility, rank matching with responsibility,
rational span of control, co-ordination of related
functions and potentiality for expansion.
Definition & meaning of
organizational effectiveness……
 Effectiveness means the capability of producing an
effect.
 In management, effectiveness relates to getting the
right things done.
 Peter Drucker reminds us that effectiveness is an
important discipline which “can be learned and must
be earned. Effectiveness could be defined as the
degree to which organization realizes its goals.
Organizational effectiveness represents a desirable
attribute in organization.”
What is Organizational Effectiveness?

 The most effective organization would be one

which achieves maximum performance with
minimum cost in terms of its human and material
resources.
 On the other hand, an organizational arrangement ,
which may be best at one time, may cease to be so
later with the change in circumstances.
What should be known for making an
organization effective.
 Organization structure must be understood, and
 Principles must be put in practice
 Organizational effectiveness is the extent to which an organization,
gives certain resources and means, achieves its objectives without
placing on undue strain.

 Effectiveness is the ability of an organization to mobilize its centers of

power for producing action and adaptation.

 Effectiveness of an organization can be seen in terms of survival of

the organization.
 To make an organization structure work certain mistakes must be
avoided
SOME MISTAKES IN
ORGANIZING
1. Failure to plan Organizational
structure properly
 Not unusual; an enterprise continue to traditional organizational
structure long after its objective plans, and external environment
has changed.
 A company may find a certain managers have not grown with
the company or do not fit the current needs.
 But organizing primarily around people over look several facts.
 Such mistakes occurs when an enterprise fails to plan properly
towards a future material different from past and present.
 By looking forward, the manager should determine what kind of
structure will best serve future needs and what kind of people
will best serve the organizational.
2. Failure to clarify Relationships:
 The failure to clarify organization relationships, probably
accounts for friction, politics, and inefficiencies.

 The authority and the responsibility for action are critical in

organization, lack of clarity here means lack of knowledge on
the part members have to play in an enterprise team.
3. Failure to delegate Authority :-
 A common complaint in organization life is that
managers are reluctant to push decision making
down into the organization.
 Continual “fighting fires” and “meeting crises,”
and underdevelopment of managerial experience in
the lower levels of organization give evidence that
failing to delegate authority to the proper extent is
usually a decided mistake.
4. Failure to Balance Delegation :-
 Some manager, in their zeal for decentralization may take
laterally to push decision making down in the organization as
far as it will go, to do this pushes it down to the very bottom
of the structure and develops a system of independent
organizational satellites.
 Even without going to this extreme not maintaining authority
suitable for various levels of organization has caused many
organizational failures.
 Managers must not forget that there is some authority they
should not delegate. Nor should they overlook the fact that
they must maintain enough authority to make sure that when
they do delegate authority to a subordinate, it is being used in
the way and for the purposes intended.
5. Confusion of lines of Authority and of
information :-
 Costs of levels of organization and departmentation can be
reduced by opening wide the channels of information.
 Information gathering should be separated from decision
making, since only the latter requires managerial authority.
 Enterprises often force lines of information to follow
authority lines. When the only reason for following a chain
of command is to preserve the integrity of authority for
decision making and the clarity of responsibility.
6. Authority without Responsibility :-

 A Significant cause of mismanagement is the

granting of authority without exacting
responsibility.
 Authority delegation is not responsibility
delegation; the delegant remains responsible for the
proper exercise of authority by the subordinate.
 Any other relationship would lead to organizational
anarchy. All those to whom authority is delegated
must be willing to be held responsible for their
actions.
7.Responsibility without Authority :-
 A common complaint of subordinates is that superiors hold
them responsible for results without giving them the authority
to accomplish them.
 Some of these complaints are unjustified and based on
misunderstanding.
 However the complaints are justified; managers, sometimes
without realizing it, do hold subordinates responsible for
results they have no power to accomplish.
 This does not happen as frequently where organizational lines
and duties have been clearly set forth , but where an
organized structure of roles is unclear or confused, it does
occur.
8. Careless Application of the
Staff Device :-
 There are many valid reasons for using a staff assistant or staff
specialists and even building entire advisory.
 There is an ever-present danger that top may surround themselves
with staff specialists and become so preoccupied with the
specialists work as to exclude from their schedule the time and
attention needed for their line subordinates or they may assign
problems to their staff that should be more appropriately assigned
to line lieutenants.
 The very quality that makes staff specialists valuable specialized
knowledge also makes them inpatient to command. Undermining
the authority of the responsible line official but also breaking down
the unity of command.
9. Misuse of functional authority :-
 Dangers occur in undefined and unrestricted
delegation of functional authority in complexities
of enterprises
 It is desirable to give functional authority to one
department over activities in other parts of
organization.
10.Multiple subordination:-
 The principal danger of too great proliferation of
functional authority delegations is the breakdown
of unity of command.
 It tends to cause confusion undermine
definiteness and effectiveness of authority, and
threaten organization stability.
11.Misuse of service departments:-

 Some time some departments are mistakenly looked

upon as unnecessary, and unimportant and not too
much concerned with the accomplishment of major
objectives.
 For e.g. service department like purchasing
department may not realize that its purpose is to
purchase efficiently items ordered by authorized
department; may forget that it exist to furnish data
desired by others rather than to produce reports of its
own choosing.
12.Overorganization:-

 Some times excessive procedures are confused with

over organization.
 Manager also over-organize by having unnecessary
line assistant for e.g. assistants or deputy managers.
 Line assistant is justified if manager wished to spend
their time to outside matters
AVOIDING MISTAKES BY
PLANNING
Planning for the ideal:
 As with the other functions of management establishment of
objectives and orderly planning are necessary for good organization.
 Unless jobs are clearly put together along lines of functional
specialization it is impossible to train new men to succeed to
positions.
 ‘‘ a machine will not run smoothly when fundamental engineering
principles have been ignored in construction.
 Every enterprise has to make an ideal organizational planning to
reflect enterprise goals under given circumstances.
 All the rules of organizational management are to be kept in mind
while doing so.
 An ideal organization plan constituted standard and comparing
present structure with it, leaders know what changes should be made
when possible.
Modification for the Human factor:

 If available personnel do not fit into the ideal

structure there is no alternative but to modify the
structure to fit individual capabilities, attitude and
limitations.
Advantage of planning:

 Good organization structure can go far to make up for

deficiency in leadership by furnishing a support for
available abilities.
 Such a support increases managerial efficiency by
cutting down meeting to determine who has the
authority to do what, or how this program or that
policy is to be implemented.
 Relief the manager of consistently correcting
subordinates on the nature of their function,
responsibilities or authority.
AVOIDING
ORGANIZATIONAL
INFLEXIBILITY:-
Signs of inflexibility:

 One basic advantage of organization planning is avoiding of

organization inflexibility.
 Many enterprises working for many years become too rigid to
meet the first test of effective organization structure i.e
adaptation to changing environment and meeting new
contingencies.
 Some evidence of these in inflexibilities and organization
patent no longer suited to the time; a district organization that
could be either abolished or enlarged because of improved
communication;
 Highly centralized structure of an enlarge enterprise requiring
decentralization.
Reasons for reorganization:

 Reorganization is intended to meet changes in the

enterprise and environment,
 Other reasons of reorganization are competitive
influences, new production techniques, labour union
policy, or a new CEO.
 Further more it may also be caused by demonstrated
deficiency, organization weaknesses, excessive span
of management.
 Slow decision making personality crashes between
managers staff line conflicts.
AVOIDING CONFLICTS
BY CLARIFICATION
Reason of development of conflicts

 Major reason of development of conflicts in an

organization is that people do not understand their
assignment and those of their co-workers.
How the Conflicts can be solved.
 It can be aided by materially by proper use of
organization chart, job description , spelling out of
authority and introduction of specific goals. Charts
indicate how departments are tide together along the
principle line of authority.
Conflicts

Advantages & Limitations of A chart

 Advantages: A chart reveals to managers and new

personnel how they tie into the entire structure.

 Limitations: A chart show only formal authority of

relationship and omits the many significant in formal

relationship. Many chart show structure as they are
supposed to be and rather than as they really are.
Individual may confuse authority with relationship
with status.
Position descriptions :

 Every managerial position is be defined. Because it

informs other what he or she supposed to be do.
 Such restrictions have many benefits as jobs are
analyzed duties and responsibility are brought into
focus and area of overlapping or neglected duty
come to light.
Need to define relationships:
 People often do not cooperate and often fail to
communicate because they do not know with
whom the cooperation and communication is
required.
 As with organization chart standards are shown
against which effectiveness organization can be
measured
ASSURING
UNDERSTANDING
OF
ORGANIZING:-
Teaching the Nature of organizing
 Many soundly conceived organizations fail because
members don’t understand them.
 A well written organization manual containing a
statement ,philosophy, programs , charts and position
descriptions goes far toward making organization
understandable.
 Effective managers do not stop with the written
clarification but they teach people exact meaning.
Recognizing the importance of informal
organization:
 Since formal organization is a social tool for the conscious
coordination of activities toward a goal , informal organization
precede it.
 Before coordination and structure is given to a group behaviour
there must be communication, association and a concrete goal.
 People seek association and the satisfaction that arise from them.
 This gregarious impulse and association to accomplish goals
that an individual alone can’t gain forms the basis for formal
organization.
 Benefits of informal organization as said by Bernard are a
feeling of belonging, of status, of respect and of gregarious
satisfaction.
 Bernard observed in this connection that informal organizations
are an important means of maintaining the personality of the
individual against certain effects of formal organizations which
tend to disintegrate the personality.
Summary:
 Major principles of sound organizing are to be kept in mind
for effective organization.
 Different aspects of organizing are listed as principles i.e.: the
purpose of organizing, its cause, structure of organization, and
the process of organizing.
 It might be said that attainment of an objective is purpose of
an organization, span of management the cause, authority the
cement, departmentalized activities the framework and
effectiveness the support in measuring the performance.
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 http://www.keralaclick.com/articles/Management/page_1/
Organizational_Climate_and_Work_Motivation.html.
THANKS