Organizational Behavior

Introductory
1st chapter

Topics
1. Definition
2. What are the components of organization behaviors?
3. Importance of Organizational behavior?
4. Limitation of organization behavior
5. Fundamental concept of organizational behavior
6. Model of organizational behavior
7. The challenge & opportunities of modern organizational behavior
8. What is TQM Total Quality Management
9. The component of (TQM) Total Quality Management.

Definition
An organization is an entity comparing multiple people such as
institution or association that has a particular purpose.
Behavior is a verbal or physical response shown by person as a consequence of
the impact his/her surrounded.
Organization behavior “ A field of study that investigates the impact that
individual groups and structure have an behavior within the organization for the
purpose of applying such knowledge toward improving organization
effectiveness”
“Organizational behavior is directly concerned with the understanding,
prediction, and control of human behavior in organizations.” — Fred Luthans

This area of study examines human behavior in a work environment and

determines its impact on job structure, performance, communication, motivation,
leadership, etc.
It is the systematic study and application of knowledge about how individuals and
groups act within the organizations where they work. Organizational Behavior
draws from other disciplines to create a unique field.

For example, when we review topics such as personality and motivation, we will
again review studies from the field of psychology. The topic of team processes
relies heavily on the field of sociology.

Factor effecting components or elements of organizational behavior

Organizational Behavior is affected by four
complex set of key forces.These key forces
are:

1. People.
2. Structure.
3. Technology.
4. Environment.

There is an interaction of people, structure,

and technology and these elements are influenced by the environment.

People
People make up the internal social system of the organization. That system consists
of individuals and groups and groups may be large and small, formal and informal.
Groups are dynamic. Group form, change and disband. Since the organization is a
combination of a group of people, managers must handle the people in the right
direction.

This is very challenging to guide people or employees who have different

educational backgrounds, talent, and perspectives. So managers must understand
predict and control the people. They build up relationship among the employees
and motivate themselves.

Structure
The structure defines the formal relationship and use of people in the organization.
There are managers and employees, accounts assemblers in order to accomplish a
different kind of activities.
They are related in a structural way so that their work can be effectively
coordinated. Because there is no organization can be successful without proper
coordination.

Many organizational structures have become flatter. This downsizing and

restructuring have occurred as a result of the pressure to lower costs while
remaining competitive.

Other structures have grown more complex as a result of mergers, acquisitions, and
new ventures. Several organizations have experimented with hiring contingent
workforces (temporary, part-time, or contract employees).

Finally, many firms have moved from a traditional structure to a team-based one.

Technology
Technology provides the resources with which people work and affects the tasks
that they perform. They cannot accomplish work with their bare hands.

The technology used has a significant influence on working relationships.

The great benefit of technology is that it allows people to do more and better work,
but it also restricts people in various ways’ it has cost as well as benefits.

Examples of the impact of technology include the increasing use of robots and
automated control systems in an assembly line.

The dramatic shift from a manufacturing to a service economy, the impressive

advances in computer hardware and software capabilities, the rapid move toward
the widespread use of the information highway (internet).

And the need to respond to societal demands for improved quality of goods and
services at acceptable prices.

If any person has a lack of technological knowledge he/she cannot work.

Moreover, technology decrease per unit cost and improve the quality of the
products and services.
Environment
All organizations operate within an internal and an external environment. A single
organization does not exist alone.

An organization is a part of a lager system that contains many other elements, such
as government, the family, and other organizations. Numerous changes in the
environment create demands on organizations.

Citizens expect organizations should be socially responsible; new products and

competition for customers come from around the globe; the direct impact of unions
diminishes; the dramatic pace of change in society quickens.

There is a direct impact of several trade unions of organizations.

So all the elements of environments influence the attitude and provide competition.
It must be considered in the study of human behavior in an organization.

Importance of Organizational Behavior

Organizational Behavior provides direction to Organization. OB
helps to understand and predict organizational life. It also helps to understand
nature and activities of people in organization. It helps to motivate employees and
to maintain interrelations in organization.

The importance of the organizational behavior is as under:

1. Skill Improvement: Helps to improve skills (ability to employees and use of

knowledge to become more efficient). Improves managers as well as employees
work skill.

2. Understanding Consumer Buying Behavior: It also an important part

to improve marketing process by understanding consumer (buying) behavior.

3. Employee Motivation: OB helps to understand basis of Motivation and

different ways to motivate employees properly.

4. Nature of Employees: Understanding of personnel/employee nature is

important to manage them properly. With the help of OB, we can understand
whether employees/people are Introvert, Extrovert, motivated, Dominating etc.
5. Anticipating Organizational events: The scientific study of behavior
helps to understand and predict organizational events. For e.g. Annual Business
Planning, Demand Management, Product line management, Production Planning,
Resources Scheduling, Logistics etc.

6. Efficiency & Effectiveness: Helps to increase efficiency and effectiveness

of organization

7. Better Environment of Organization: It helps to create healthy, ethical

and smooth environment in organization.

8. Optimum/Better Utilization of Resources: Study of OB helps to

understand employees and their work style and skill better way. By understanding
this, management can train and motivate employees for optimum utilization of
resources.

9. Goodwill of organization: OB helps to improve Goodwill of organization.

This is all about importance of organizational behavior and its impact on overall
business activities. Ultimately OB helps to increase efficiency and productivity i.e.
profit of organization.

Limitation of Organizational Behavior

Actually, the topics which include here are from a specialized point of
view that emphasizes primarily the human side of organizations and the kinds of
benefits that attention to that side can bring.

It describes the research results identifying payoffs in the areas of stress levels,
employee turnover, absenteeism, and a decrease in employee performance.

Nevertheless, we also recognize the limitations of organizational behavior. It will

not abolish conflict and frustration; it can only reduce them.

It is a way to improve, not an absolute answer to problems.

Furthermore, it is but part of the whole cloth of an organization. We can discuss

organizational behavior as a separate subject, but to apply it, we must tie it to the
whole reality.
Improved organizational behavior will not solve unemployment. It will not make
up for our deficiencies. It cannot substitute for poor planning, inept organizing, or
inadequate controls. It is only one of the many systems operating within a larger
social system.

3 major limitations of OB are;

1. Behavioral Bias.

2. The Law of Diminishing Returns.

3. Unethical Manipulation of People.

Behavioral Bias
Behavioral Bias is a condition which is a reflection of tunnel vision, in which
people have narrow viewpoints as if they were looking through a tunnel.

They see only the tiny view at the other end of the tunnel while missing the
broader landscape.

Following the behavioral bias, people who lack system understanding may develop
a behavioral bias, which leads them to develop a narrow viewpoint that emphasizes
employee satisfaction while overlooking the broader system of the organization in
relation to all its stakeholders.

It should be clear that the concern for employees can be so greatly overdone that
the original purpose of bringing people together, which is “productivity
organizational outputs for society” could be lost.

An effective organizational behavior should help accomplish organizational

purposes. It should not replace them.

The person who does not consider the needs of people as consumers of
organizational output while fighting for employee needs is not applying the ideas
of organizational behavior correctly.

It is a mistake to make an assumption that the objective of organizational behavior

is as simple as to create a satisfied employee-base, as that goal will not
automatically turn into new products and stellar customer service.
It is also a fact that the person who pushes production outputs without regard for
employee needs is also not applying organizational behavior in the right fashion.

The most effective Organizational Behavior dwells, acknowledges and appreciates

a social system that consists of many types of human needs that are served in many
ways.

Behavioral bias can be so misapplied in a way that it can be harmful to employees

as well as the organization as a whole. Some individuals, despite having good
intentions, so overwhelm others with the care that the recipients of such care
become dependent and unproductive.

They find excuses for failure rather than take responsibility for progress. They do
not possess a high degree of self-respect and self-discipline.

The Law of Diminishing Returns

Overemphasis on an organizational behavior, the practice may produce negative
results, as indicated by the law of diminishing returns. It places an overemphasis
on an Organizational Behavior practice may produce negative results.

It is a limiting factor in organizational behavior in the same way that it is in

economics. In economics, the law of diminishing return refers to a declining
amount of extra outputs when more of a desirable input is added to an economic
situation.

After a certain point, the output from each unit of added input tends to become
smaller. The added output eventually may reach zero and even continue to decline
when more units of input are added.

The law of diminishing returns in organizational behavior works in a similar way.

According to the law of diminishing returns, at some point, increases of a desirable

practice produce declining returns, finally resulting in zero returns, and then
follows negative returns as more increases are added. More of a good thing is not
necessarily good.

The concept means that for any situation there is an optimum level of a desirable
practice, such as recognition or participation.
When that point is exceeded, there is a decline in returns realized. To put it
differently, the fact that a practice is desirable does not necessarily imply that more
of the same practice is more desirable.

Unethical Manipulation of People

A significant concern about organizational behavior is that its knowledge and
techniques can be used to manipulate people unethically as well as to help them
develop their potential.

People who lack respect for the basic dignity of the human being could learn
organizational behavior ideas and use them for selfish ends.

They could use what they know about motivation or communication in the
manipulation of people without regard for human welfare. People who lack ethical
values could use people in unethical ways.

Fundamental concept of organizational behavior

The concept of OB is based on two key elements mainly −

 Nature of people
 Nature of the organization

Nature of People
In simple words, nature of people is the basic qualities of a person, or the character
that personifies an individual they can be similar or unique. Talking at the
organizational level, some major factors affecting the nature of people have been
highlighted. They are −

 Individual Difference − It is the managerial approach towards each

employee individually, that is one-on-one approach and not the statistical
approach, that is, avoidance of single rule. Example− Manager should not
be biased towards any particular employee rather should treat them equally
and try not to judge anyone on any other factor apart from their work.
 Perception − It is a unique ability to observe, listen and conclude
something. It is believing in our senses. In short, the way we interpret things
and have our point of view is our perception. Example − Aman thinks late
night parties spoil youth while Anamika thinks late night parties are a way of
 making new friends. Here we see both Aman and Anamika have different
perception about the same thing.
 A whole person − as we all know that a person’s skill or brain cannot be
employed we have to employee a whole person. Skill comes from
background and knowledge. Our personal life cannot be totally separated
from our work life, just like emotional conditions are not separable from
physical conditions. So, people function is the functioning of a total human
being not a specific feature of human being.
 Motivated behavior − It is the behavior implanted or caused by some
motivation from some person, group or even a situation. In an organization,
we can see two different types of motivated employees −
o Positive motivation − Encouraging others to change their behavior or
say complete a task by luring them with promotions or any other
profits. Example − “If you complete this, you will gain this.”
o Negative motivation − Forcing or warning others to change their
behavior else there can be serious consequences. Example − “If you
don’t complete this, you will be deprived from the office.”
 Value of person − Employees want to be valued and appreciated for their
skills and abilities followed by opportunities which help them develop
themselves.

Nature of Organization
Nature of organization states the motive of the firm. It is the opportunities it
provides in the global market. It also defines the employees’ standard; in short, it
defines the character of the company by acting as a mirror reflection of the
company. We can understand the nature of any firm with its social system, the
mutual interest it shares and the work ethics.

Let us take a quick look at all these factors −

 Social system − every organization socializes with other firms, their

customers, or simply the outer world, and all of its employees - their own
social roles and status. Their behavior is mainly influenced by their group as
well as individual drives. Social system are of two types namely −
o Formal − Groups formed by people working together in a firm or
people that belong to the same club is considered as formal social
system. Example − A success party after getting a project.
o Informal − A group of friends, people socializing with others freely,
enjoying, partying or chilling. Example − Birthday party.
  Mutual interest − every organization needs people and people need
organizations to survive and prosper. Basically it’s a mutual understanding
between the organization and the employees that helps both reach their
respective objectives. Example − we deposit our money in the bank, in
return the bank gives us loan, interest, etc.
 Ethics − they are the moral principles of an individual, group, and
organization. In order to attract and keep valuable employees, ethical
treatment is necessary and some moral standards need to be set. In fact,
companies are now establishing code of ethics training reward for notable
ethical behavior.

Model of Organizational Behavior

Organizational behavior reflects the behavior of the people and
management all together, it is considered as field study not just a discipline. A
discipline is an accepted science that is based upon theoretical foundation, whereas
OB is an inter-disciplinary approach where knowledge from different disciplines
like psychology, sociology, anthropology, etc. are included. It is used to solve
organizational problems, especially those related to human beings.

There are four different types of models in OB. We will throw some light on each
of these four models.

Autocratic Model

The root level of this model is power with a managerial orientation of authority.
The employees in this model are oriented towards obedience and discipline. They
are dependent on their boss. The employee requirement that is met is subsistence.
The performance result is less.

The major drawbacks of this model are people are easily frustrated, insecurity,
dependency on the superiors, minimum performance because of minimum wage.

Custodial Model

The root level of this model is economic resources with a managerial orientation of
money. The employees in this model are oriented towards security and benefits
provided to them. They are dependent on the organization. The employee
requirement that is met is security.
This model is adapted by firms having high resources as the name suggest. It is
dependent on economic resources. This approach directs to depend on firm rather
than on manager or boss. They give passive cooperation as they are satisfied but
not strongly encouraged.

Supportive Model

The root level of this model is leadership with a managerial orientation of support.
The employees in this model are oriented towards their job performance and
participation. The employee requirement that is met is status and recognition. The
performance result is awakened drives.

This model is dependent on leadership strive. It gives a climate to help employees

grow and accomplish the job in the interest of the organization. Management job is
to assist the employee’s job performance. Employees feel a sense of participation.

Collegial Model

The root level of this model is partnership with a managerial orientation of

teamwork. The employees in this model are oriented towards responsible behavior
and self-discipline. The employee requirement that is met is self-actualization. The
performance result is moderate zeal.

This is an extension of supportive model. The team work approach is adapted for
this model. Self-discipline is maintained. Workers feel an obligation to uphold
quality standard for the better image of the company.

The challenge & opportunities of modern organizational behavior

Challenges and opportunities of organizational behavior are
massive and rapidly changing for improving productivity and meeting business
goals.

Although the problems with organizations and the solutions over the ages have not
really changed, the emphasis and surrounding environmental context certainly
have changed.

Although the resulting lean and mean organizations offered some short-run
benefits in terms of lowered costs and improved productivity, if they continued to
do business, as usual, they would not be able to meet current or future challenges.
As a Harvard Business Review article argues, “These are scary times for
managers”.

The singular reason given for these frightening times – the increasing danger of
disruptive change.

The nature of work is changing so rapidly that rigid job structures impede the work
to be done now, and that may drastically change the following year, month, or even
week.

Main challenges and opportunities of organizational behavior are;

1. Improving Peoples’ Skills.

2. Improving Quality and Productivity.
3. Total Quality Management (TQM).
4. Managing Workforce Diversity.
5. Responding to Globalization.
6. Empowering People.
7. Coping with Temporariness.
8. Stimulating Innovation and Change.
9. Emergence of E-Organization & E-Commerce.
10. Improving Ethical Behavior.
11. Improving Customer Service.
12. Helping Employees Balance Work-Life Conflicts.
13. Flattening World.

Improving People’s Skills

Technological changes, structural changes, environmental changes are accelerated

at a faster rate in the business field.

Unless employees and executives are equipped to possess the required skills to
adapt those changes, the targeted goals cannot be achieved in time. These two
different categories of skills – managerial skills and technical skills.

Some of the managerial skills include listening skills, motivating skills, planning
and organizing skills, leading skills, problem-solving skill, decision-making skills
etc.

These skills can be enhanced by organizing a series of training and development

programs, career development programs, induction, and socialization etc.
Improving Quality and Productivity

Quality is the extent to which the customers or users believe the product or service
surpasses their needs and expectations.

For example, a customer who purchases an automobile has a certain expectation,

one of which is that the automobile engine will start when it is turned on.

If the engine fails to start, the customer’s expectations will not have been met and
the customer will perceive the quality of the car as poor. The key dimensions of
quality as follows.

 Performance: Primary rating characteristics of a product such as signal

coverage, audio quality, display quality etc.
 Features: Secondary characteristics, added features, such as calculators, and
alarm clock features in hand phone
 Conformance: Meeting specifications or industry standards, workmanship
of the degree to which a product’s design or operating characteristics match
pre- established standards
 Reliability: The probability of a product’s falling within t a specified period
of time
 Durability: It is a measure of product’s life having both economic and
technical dimension
 Services: Resolution of problem and complaints, ease of repair
 Response: Human to human interfaces, such as the courtesy of the dealer «
Aesthetics: Sensory characteristics such exterior finish
 Reputations: Past performance and other intangibles, such as being ranked
first.

More and more managers are confronting to meet the challenges to fulfill the
specific requirements of customers.

In order to improve quality and productivity, they are implementing programs like
total quality management and reengineering programs that require extensive
employee involvement.
Managing Workforce Diversity

This refers to employing different categories of employees who are heterogeneous

in terms of gender, race, ethnicity, relation, community, physically disadvantaged,
elderly people etc.

The primary reason to employ heterogeneous category of employees is to tap the

talents and potentialities, harnessing the innovativeness, obtaining synergetic effect
among the divorce workforce.

In general, employees wanted to retain their individual and cultural identity, values
and life styles even though they are working in the same organization with
common rules and regulations.

The major challenge for organizations is to become more accommodating to

diverse groups of people by addressing their different life styles, family needs, and
work styles.

Responding to Globalization

Today’s business is mostly market driven; wherever the demands exist irrespective
of distance, locations, climatic Conditions, the business

Operations are expanded to gain their market share and to remain in the top rank
etc. Business operations are no longer restricted to a particular locality or region.

Company’s products or services are spreading across the nations using mass
communication, the internet, faster transportation etc.

More than 95% of Nokia (Now Microsoft) hand phones are being sold outside of
their home country Finland.

Japanese cars are being sold in different parts of the globe. Sri Lankan tea is
exported to many cities around the globe.

Garment products of Bangladesh are exporting in USA and EU countries.

Executives of Multinational Corporation are very mobile and move from one
subsidiary to another more frequently.
Empowering People

The main issue is delegating more power and responsibility to the lower level
cadre of employees and assigning more freedom to make choices about their
schedules, operations, procedures and the method of solving their work-related
problems.

Encouraging the employees to participate in work related decision will sizable

enhance their commitment to work.

Empowerment is defined as putting employees in charge of what they do by

eliciting some sort of ownership in them.

Managers are doing considerably further by allowing employees full control of

their work.

Movement implies constant change an increasing number of organizations are

using self-managed teams, where workers operate largely without a boss.

Due to the implementation of empowerment concepts across all the levels, the
relationship between managers and the employees is reshaped.

Managers will act as coaches, advisors, sponsors, facilitators and help their
subordinates to do their task with minimal guidance.

Coping with Temporariness

In recent times, the product life cycles are slimming, the methods of operations are
improving, and fashions are changing very fast. In those days, the managers
needed to introduce major change programs once or twice a decade.

Today, change is an ongoing activity for most managers.

The concept of continuous improvement implies constant change.

In yesteryears, there used to be a long period of stability and occasionally

interrupted by a short period of change, but at present, the change process is an
ongoing activity due to competitiveness in developing new products and services
with better features.
Everyone in the organization faces today is one of permanent temporariness. The
actual jobs that workers perform are in a permanent state of flux.

So, workers need to continually update their knowledge and skills to perform new
job requirements.

Stimulating Innovation and Change

Today’s successful organizations must foster innovation and be proficient in the art
of change; otherwise, they will become candidates for extinction in due course of
time and vanished from their field of business.

Victory will go to those organizations that maintain flexibility, continually improve

their quality, and beat the competition to the market place with a constant stream of
innovative products and services.

For example, Compaq succeeded by creating more powerful personal computers

for the same or less money than EBNM or Apple, and by putting their products to
market quicker than the bigger competitors.

Amazon.com is putting a lot of independent bookstores out of business as it proves

you can successfully sell books from an Internet website.

Emergence of E-Organization & E-Commerce

It refers to the business operations involving the electronic mode of transactions. It

encompasses presenting products on websites and filling the order.

The vast majority of articles and media attention given to using the Internet in
business are directed at online shopping.

In this process, the marketing and selling of goods and services are being carried
out over the Internet.

In e- commerce, the following activities are being taken place quite often – the
tremendous numbers of people who are shopping on the Internet, business houses
are setting up websites where they can sell goods, conducting the following
transactions such as getting paid and fulfilling orders.
It is a dramatic change in the way a company relates to its customers. At present e-
commerce is exploding. Globally, e-commerce spending was increasing at a
tremendous rate.

Improving Ethical Behavior

The complexity in business operations is forcing the workforce to face ethical

dilemmas, where they are required to define right and wrong conduct in order to
complete their assigned activities.

For example,

 Should the employees of chemical company blow the whistle if they uncover
the discharging its untreated effluents into the river are polluting its water
resources?
 Do managers give an inflated performance evaluation to an employee they
like, knowing that such an evaluation could save that employee’s job?

The ground rules governing the constituents of good ethical behavior has not been
clearly defined, Differentiating right things from wrong behavior has become more
blurred.

Following unethical practices have become a common practice such as successful

executives who use insider information for personal financial gain, employees in
competitor business participating in massive cover-ups of defective products etc.

Improving Customer Service

OB can contribute to improving an organizational performance by showing drat

how employees’ attitude and behavior are associated with customer satisfaction.

In that case, service should be the first production oriented by using technological
opportunities like a computer, the internet etc.

To improve the customer service need to provide sales service and also the after
sales service.
Total Quality Management (TQM)

It is a philosophy of management that is driven by the constant attainment of

customer satisfaction through the continuous improvement of all organizational
process.
The components of TQM are;
(a) An intense focus on the customer,
(b) Concern for continual improvement,
(c) Improvement in the quality of everything the organization does,
(d) Accurate measurement and,
(e) Empowerment of employees.
 Climate and Model of Organizational Behavior
2nd chapter

Topics
1. Definition of climate and organizational climate
2. Characteristics of organizational climate
3. Factor influencing organizational climate
4. Definition of organizational culture
5. Characteristics of organizational culture
6. Difference between organizational culture and organizational
climate
Definition
Climate in nature sense referred to as the average course or condition of
the weather at a place over a period of year exhibited by temperature, wide velocity
& precipitation.

It is quite difficult to define organizational climate incorporating the characteristics

of natural climate. This is so because the most frustrating feature of an attempt to
deal with situational variables in a model of management performance is the
enormous complexity of the management itself. People have defined
organizational climate on the basis of its potential properties. A few important
definitions are as given below.

According to Forehand and Gilmer, “Climate consists of a set of characteristics

that describe an organization, distinguish it from other organizations are relatively
enduring over time and influence the behavior of people in it.”

According to Campbell, “Organizational climate can be defined as a set of

attributes specific to a particular organization that may be induced from the way
that organization deals with its members and its environment. For the individual
members within the organization, climate takes the form of a set of attitudes and
experiences which describe the organization in terms of both static characteristics
(such as degree of autonomy) and behavior outcome and outcome- outcome
contingencies.”

Thus, organizational climate is a relatively enduring quality of the internal

environment that is experienced by its members, influences their behavior and can
be described in terms of the value of a particular set of characteristics of the
organization. It may be possible to have as many climates as there are people in the
organization when considered collectively, the actions of the individuals become
more meaningful for viewing the total impact upon the climate and determining the
stability of the work environment. The climate should be viewed from a total
system perspective. While there may be differences in climates within departments
these will be integrated to a certain extent to denote overall organizational climate.

Organizational Climate consist of a set of characteristics that describe an

organization, distinguish it from other organization are relatively enduring over
time and influence it.

Factor influencing organizational climate

The nature of organizational climate will be clear from the following
characteristics:
1. General Perception: Organizational climate is a general expression of what the
organization is. It is the summary perception which people have about the
organization. It conveys the impressions people have of the organizational internal
environment within which they work.
2. Abstract and Intangible Concept: Organizational climate is a qualitative
concept. It is very difficult to explain the components of organizational climate in
quantitative or measurable units.
3. Unique and District Identity: Organizational climate gives a distinct identity to
the organization. It explains how one organization is different from other
organizations.
4. Enduring Quality: Organizational climate built up over a period of time. It
represents a relatively enduring quality of the internal environment that is
experienced by the organizational members.
5. Multi-Dimensional Concept: Organizational climate is a multi- dimensional
concept. The various dimensions of the organizational climate are individual
autonomy, authority structure, leadership style, pattern of communication, degree
of conflicts and cooperation etc.

Factors Influencing Organizational Climate:

Organizational climate is a manifestation of the attitudes of organizational
members towards the organization. Researchers have used the data relating to
individual perception of organizational properties in identifying organizational
climate. Even in this context, there is a great amount of diversity. Six factors which
affect organizational climate. These factors are:

1. Organizational Structure: Perceptions of the extent of organizational

constraints, rules, regulations, red tape,
2. Individual Responsibility: Feeling of autonomy of being one’s own boss,
3. Rewards: Feelings related to being confident of adequate and appropriate
rewards,
4. Risk and risk taking: Perceptions of the degree of challenge and risk in the
work situation,
5. Warmth and Support: Feeling of general good fellowship and helpfulness
prevailing in the work setting.
6. Tolerance and Conflict: Degree of confidence that the climate can tolerate,
differing opinions.

Organizational Culture
Organizational Culture is define as the underlying belief, assumption,
values and the way of interaction that contribute to the unique social and
psychological environment of an organization.

Characteristics of organization culture

1. Distinctive
2. Stable
3. Implicit
4. Symbolic
5. Integrated
6. Accepted
7. Reflection of top level management
8. Subculture
9. Of varying strength
Difference between organization culture and organizational climate
Index Organization culture
Definition Organizational Culture is
define as the underlying belief,
assumption, values and the
way of interaction that
contribute to the unique social
and psychological
environment of an
organization.
Organizational climate
Organizational Climate consist
of a set of characteristics that
describe an organization,
distinguish it from other
organization are relatively
enduring over time and
influence it.

Nature Historical Present

Emphasis belief, assumption Individual reward & trust
Change Difficult Easy