A large unit manufacturing electrical goods which has been known for its liberal personnel policies and fringe benefits is facing the problem of low productivity and high absenteeism. How should the management improve the organizational climate?
Perhaps one of the most important and significant characteristics of a great workplace is its organizational climate. [ Organizational climate, while defined differently by many researchers and scholars, generally refers to the degree to which an organization focuses on and emphasizes:
Appreciation and recognition
Concern for employee well-being
Learning and development
Citizenship and ethics
Involvement and empowerment
Organizational climate, manifested in a variety of human resource practices, is an important predictor of organizational success. Numerous studies have found positive relationships between positive organizational climates and various measures of organizational success, most notably for metrics such as sales, staff retention, productivity, customer satisfaction, and profitability:
Denison (1990) found that an organizational climate that encourages employee involvement and empowerment in decision-making predicts the financial success of the organization.
Schneider (1996) found that service and performance climates predict customer satisfaction.
Patterson, Warr, & West (2004) found that manufacturing organizations that emphasized a positive organizational climate, specifically concern for employee well-being, flexibility, learning, and performance, showed more productivity than those that emphasized these to a lesser degree.
Potosky and Ramakrishna (2001) found that an emphasis on learning and skill development was significantly related to organizational performance.
Ekvall (1996) found a positive relationship between climates emphasizing creativity and innovation and their profits.
Hansen and Wernerfelt (1989) found that organizational climate factors explain about twice as much variance in profit rates as economic factors. ]
There are no new answers.