organizational climate


How Companies Can Improve Organizational Climate

Organizational cultures are constantly in flux, and they are key to thriving companies. Learn how to develop a better organizational climate to improve employee experience and grow.


06/14/2022 | By Hotmart

Regardless of the size of your business, it’s important to know that every company must build an excellent relationship with its employees. 

This is how you will be able to create an environment that fosters the development of work, which in turn leads to productivity.  

The better the perception employees have about the workplace environment, the better the results they will achieve. 

And that’s why the study of the organizational climate, while still a new concept, is becoming more and more important in the business world. 

Are you an entrepreneur who wants to learn how to create a pleasant environment for the people who work with you?

In this post, you’ll learn everything you need to know about organizational climate!

What is organizational climate

In general terms, the organizational climate of a business is the perception employees have of the workplace environment. 

Each employee is conscious of the level of organizational quality of the place they work in. 

From internal surveys, it is then possible to measure their satisfaction with the workplace environment, and understand what is the climate like in your business. 

The organizational climate determines the quality of the experience of the employees by defining a clear psychological profile, albeit momentary. 

This is because the employees’ perception can vary depending on the internal practices that are implemented. The better the climate, the better the performance. 

On the other hand, a negative organizational climate may lead to serious consequences such as burnouts and a decrease in profits, since people don’t carry out their activities in the best way possible.

It’s also important to mention that the organizational climate is not only a matter of the people working with you. It is connected to the company itself, the structure and how it positions itself in the market. 

Therefore, to improve it, it is crucial to think about all the steps, from hiring personnel to the physical environment, even if employees work from home. Keep reading, we’ll talk more about this below.

Consequences of a negative organizational climate

It’s usual to say that if the climate of a company is not pleasant for people who work there, some problems start to appear. 

The main issue, as mentioned above, is the decline in productivity, since employees start working less, and have no motivation to carry out their everyday tasks.

This decline in production may be followed by a significant amount of people being let go, which in turn creates a negative atmosphere for employees who feel stressed, insecure and unsure about their future.

We know that a great deal of stress in modern society is the result of a confrontational environment. 

That’s why there’s nothing worse than a company that stimulates disagreement and dispute, instead of fostering consensus and cooperation among employees.

Another serious consequence of a negative organizational climate is the absence of strong leadership. After all, it’s pretty difficult to lead and inspire a team that is divided, distrusting, and with no motivation to develop quality work.

To avoid this kind of results, it’s necessary for the entrepreneur to take some measures that can improve the organizational climate in their business.

Organizational climate and remote work

In the last few years, the Covid-19 pandemic forced many companies to change how their employees work. With safety in mind, companies had to become more flexible and many employees started working remotely. 

But is working from home bad for company culture? Well, not necessarily. According to a PwC survey, remote work has been a success for both employees and employers and the change is here to stay: many executives state that they don’t want to return to the office as it was pre-pandemic. 

Although remote work is not necessarily detrimental to the organizational climate, it does come with its challenges. According to Mercer, remote work can boost performance, reduce stress, and even contribute to the environment, but it can also lead to several workplace problems, such as elevated levels of harassment, work pressure and anxiety.

The solution is planning for a more flexible workplace. And the tips below can help whether you work from home or at the office. Check them out.

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Factors affecting organizational climate

So, what can companies do to build a positive organizational climate?

There are some simple factors that should be considered when developing an organizational climate strategy that will lead to excellent results. Let’s see what they are:

1. Leaders

One of the main jobs of leaders is to ensure there is a good organizational climate in the company. 

More than just demanding results, these professionals should motivate employees, sparking in them the necessary energy to carry out excellent work. 

So, when it’s time to hire leaders for your company, try to find professionals who can awaken in others their individual and collective potential, and who know how to foster teamwork.

2. Physical environment 

The physical environment of the workplace has a huge impact on the organizational climate

Professionals who work in a place that stimulates creativity, is comfortable, and makes all the tools available for daily tasks, often give much better feedback. 

This may seem obvious, but many companies simply don’t pay attention to this aspect. And now that remote work is stronger than ever, it’s important to pay attention to the home office, too. 

It’s not about providing a luxurious office to employees, but creating a space that is comfortable for all: ergonomics, equipment, colors, how the furniture is arranged, all of this directly affects the employees’ experience.

3. Recognition

When we talk about organizational climate, we mean how the employee sees the company. And there’s nothing better to boost this indicator than valuing people for their achievements.

Many talented people in your company can and should be recognized. You can do that by giving them awards, a bonus, or simply mentioning it publicly. 

It may seem symbolic, but merely giving a title such as “employee of the month” makes the employee feel recognized, not to mention it has the potential to inspire other colleagues. 

4. Good relationship between employees

We mentioned relationships a little when we talked about leadership. No man is an island, and this is a key concept inside organizations.

Teamwork, when utilized correctly, generates much more than results: it helps to build a much richer organizational climate

5. Communication is key 

Most of the problems faced in an organization are the result of inefficient communication.

When there are issues in the communication process, everybody loses. 

To improve the climate of a company, it is essential to invest in efficient communication systems among employees and teams.

How to create a good organizational climate

Let’s take a look at a few simple ways of applying the strategies that enable you to assess the climate in your company and improve this indicator.

Carry out pulse surveys

Internal surveys should be carried out frequently, as they are the main indicator of the perception your employees have. 

The frequency of surveys will depend greatly on how big the company is, and there should be an action plan to solve problems that have been identified. 

But whenever you realize people seem unmotivated, try to understand the real reason behind it.

Compare the results of new surveys with the previous ones to understand if the problems are still the same.

Numbers allow leaders to identify the transforming potential of the strategies that have been implemented and if the changes expected to happen were achieved. 

Ask for individual and group feedback

Feedback is a response to a stimulus. That’s why the company must ask for it, encouraging employees, individually or collectively, to talk about their experience. 

The goal here is to gather information that honestly reflects the organizational climate

Gathering negative feedback is one of the possibilities. It’s not the ideal scenario, but it is an opportunity for transformation. 

After all, if things are not going well in your company, it’s better to bring up these problems so they can be tackled. 

Train the company leaders

Leaders are crucial in the business world. They are the ones responsible for building the mindset of the other employees. 

But, more often than not, leaders are not aware of the importance of keeping a pleasant environment for their teams. That’s why change has to start with them. 

Training is a way of pointing out and improving leadership skills, so they can spark the best in each employee. 

Well-prepared people who encourage the best in others make the climate much better. 

Keep an open communication channel

The employees of a company don’t always feel comfortable talking about certain matters with the owners or leaders. They may be afraid of being let go or feel ashamed of bringing some things up.

That’s why it’s important that the company maintain an efficient communication channel with the personnel department. 

It’s a great way of encouraging feedback, giving employees the freedom to talk about anything they feel is important. 

What’s the organizational climate like in your company?

Building a positive organizational climate is different for each company, and it should happen according to their values.
After all, each company has their own particularities and practices that can’t simply be transferred from one business to another.
That is why every entrepreneur needs to invest in creating internal practices compatible with their organizational context.
Having an efficient personnel department or even a consulting firm goes a long way in helping build an organizational climate that is compatible with the business’ goals.


Here at Hotmart, we have an organizational climate that sparks interest in both those who work with us and people who are starting their business now.


Want to know more about us? Find out how Hotmart works.