Rishabh Kothari

2016PGP105

Impact of Organizational Culture on Organizational Climate during the Process of

Change by Juris Iljins, Viktorija Skvarciany, Elina Gaile Sarkane, December 2015, 7 pages.

Introduction

With the advent of globalization businesses have become more

competitive, but some organization have been able to stand out.
Researchers across the globe have established a relation between
employees and the organizational culture. Therefor the authors here have
tried to establish a correlation between organization climate and culture.
Changes in the market because of the political, economic scenario have
made it difficult for businesses to adjust to the new conditions. For their
success, change is necessary by following new techniques, offer new
products to consumers, etc.

Objectives of the study

In future, to avoid problems and to assist changes in policies, change

management or change agent method might come in handy. Hence
impact of change is examined in this research paper. The objective of the
research is to distinguish the impact of organizational cultural factors on
the environment of the organization (organization climate). So, a
theoretical model was developed and through which it was analysed which
climate factors are important during the process of transformation in the
organization.

Variables which have been considered in the study

Impact of some organizational cultural factors were analysed during the

research. Parameters were:

Employee Satisfaction- which included the reward system, job

satisfaction, relationship with supervisor, etc.

Adaptability- which included acceptance of innovation and IT infra in

organization, customer focus, learning in the organization, etc.

Involvement- this included employees role in decision making,

empowerment and how employees worked in teams, etc.

Mission & Consistencies: goals, objectives, core values of

organization were given importance.
Measurement

An empirical research method was followed. Initially an expert evaluation

method was used to find out which cultural factors have significant effect
on organization climate. Here around 10 experts (field of interest being
change management, organization culture and climate) contributed in the
survey/discussion. After the discussion, Cronbachs alpha was calculated
for statistical conformation. Results were even analysed using case
studies.

Sample & Data Collection

In the expert assessment method, 10 experts were interviewed, results

were verified and then statistical inferences were drawn using Cronbachs
alpha, Kendalls coefficient of concordance and chi-square test. Data obtained through this
was verified using a case study between 2 companies (Company A and Company B) where
reconstruction and changes took place due to shift in markets. A qualitative analysis was
conducted in these two companies. 22 employees of A and 27 of B participated in this
research.

Data analysis

This was done in two different occasions:

In the first part of evaluation process which included interviewing

experts, inferences were drawn using Cronbachs alpha, Kendalls
coefficient of concordance and chi-square test.

Second part which included survey in 2 different companies- the findings were
theoretically calculated using mean factors

Results

Result of the research clearly indicated that during the transformation

phase organizational culture influences organization culture through
definite factors

Conclusion

Here factors affecting organizational climate were evaluated and a model

was developed. Results in research showed that reward system, job
satisfaction core values are some of the important cultural factors
prompting organizational climate. In the transformation period these
parameters must be focussed on. Employee satisfaction remains the most
crucial factor as un-satisfaction may harm the environment. Each factor
has its own issues and due importance should be given to all.