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What organizational climate is and how to improve it in your company

Learn how to create a pleasant environment for the people who work with you.

organizational climate - image of a man showing a positive sign with his hand and behind him another man working in front a computer

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 a more productive team.

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?

Check out, on this post, everything you need to know about organizational climate!

The concept of organizational climate

In general terms, the organizational climate of a business can be seen as the existing perception 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 variation in the organizational climate leads managers and administrators to constantly look for ways of assessing the situation of the company.

The better the climate, the better the performance.

On the other hand, a negative organizational climate may lead to serious consequences such a decline 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 who’s 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 (we’ll talk further about this in this post).

Consequences of a negative organizational climate

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

The main problem, 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 insecure and unsure about their future.

And even the employees who keep working for this company suffer the consequences. It may even create an environment that breeds more conflict, mistrust, and small deviations in behavior.

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 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.

Aspects that contribute to creating a good organizational climate

After reading all the negative things we mentioned above, you are probably wondering:

But after all, what can I do to build a positive organizational climate in my company?

There are some simple strategies that can lead to excellent results in your business. 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.

It’s not about providing a luxurious office to employees, but making it a space that is favorable for people to do their activities.

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. A good relationship among employees

We mentioned relationships a little bit 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. Excellent communication among employees and teams

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 apply these strategies

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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 internal 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 the measures taken to overcome problems that have been identified.

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

Moreover, don’t discard a survey as soon as you take the necessary measures to change what was brought up by your employees. 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.

Asking 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 objective 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.

Training 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 the main characteristics of a leader so they can spark the best in each employee.

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

Keeping an open communication channel with the Personnel department

The employees of a company don’t always feel comfortable talking about certain matters with the owners. They may be afraid of being let go, they may feel ashamed of bringing such things up, and even being retaliated for speaking 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.

This is one of the indicators that can’t be copied. 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 internal practices compatible with their organizational context.

Having an efficient personal department or even a consulting firm goes a long way in helping build an organizational climate that is compatible with the business’ goals.

Regardless of this, it is possible to get inspiration from the trajectory of other entrepreneurs who have been on the market for a while to understand what practices they implemented that were the most successful and could possibly be applied to your business.

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 our history?

Check out how Hotmart started a recruitment process to hire its employees.