15-2: Social Dynamics of Organizations
Organizational Climate
Organizational climate represents the shared perceptions of employees about their work environment – the psychological atmosphere they experience that influences their attitudes and behaviors. Think of it as the “vibe” of your workplace. You know how some places just feel energetic and positive while others feel tense or depressing? That’s organizational climate.
Lewin’s climate research with children’s school clubs identified different climate types that produce varying behavioral outcomes (Lewin, 1939). Autocratic climates tend to be highly structured with little opportunity for individual responsibility or risk-taking. Democratic climates are less structured with greater opportunities for individual responsibility and risk-taking that can enhance motivation and creativity.
You’ve probably experienced both types. Maybe you’ve worked somewhere where every decision had to be approved by a manager, versus a place where you were trusted to make decisions and take initiative. The difference in how these environments feel is dramatic, isn’t it?
Four dimensions of climate identified by researchers include role stress and lack of harmony, job challenge and autonomy, leadership facilitation and support, and work group cooperation and friendliness (James & McIntyre, 1996). These dimensions capture different aspects of the work environment that influence employee experiences.
Multiple climates can exist within single organizations, often reflecting the goals and functions of different units. Service climates may emerge in customer-focused units, while innovation climates may develop in R&D units where creativity and risk-taking are emphasized. Have you ever noticed how different departments in the same company can feel completely different to work in?
Organizational Culture
Organizational culture represents a broader concept than climate, encompassing the shared beliefs and values created and communicated by organizational leaders (Ashkanasy & Jackson, 2001). Culture addresses the meaning and significance of organizational actions rather than simply the constraints on behavior emphasized by climate research. If climate is the day-to-day atmosphere, culture is the deeper set of assumptions about how things should be done.
Cultural Examples
Let’s look at some companies you probably know to see how different cultures work in practice. Apple Inc. has an organizational culture for creative innovation. The company’s cultural features focus on maintaining a high level of innovation that involves workers’ creativity and mindsets that challenge conventions and standards, such as in the area of consumer electronics design. This is why Apple products often look and work differently from competitors – it’s baked into their culture to challenge the status quo.
Starbucks culture focuses on the customer experience rather than simply selling coffee. They recognize they’re selling the experience of buying and consuming products as much as the products themselves. This is why Starbucks locations are designed to feel like “third places” between home and work, and why baristas are trained to engage with customers personally.
Amazon’s culture has been described as “breakneck-paced and notoriously cost-conscious,” reflecting the company’s focus on efficiency and growth. This culture drives everything from their famous “two-pizza teams” (teams small enough to be fed by two pizzas) to their leadership principles that emphasize customer obsession and bias for action.
International Cultural Considerations
Things get even more complex for multinational organizations that must navigate different cultural contexts while maintaining organizational coherence. Four approaches to managing international differences include ethnocentrism (parent company values predominate), polycentrism (local values are accepted), regiocentrism (parent and local values blend), and geocentrism (new global policies are developed).
Cultural differences significantly affect management practices in ways you might not expect. For example, paternalistic attitudes among managers are much more likely to be found in India, Turkey, Pakistan, and China, while Indian, Pakistani, Chinese, Turkish, and Russian managers are much more likely to consider loyalty to their communities as a desired value compared to Canadian and U.S. managers (Parkes et al., 2001).
Organizational Fit and Socialization
Organizational fit refers to how much the values of the organization match with the values of the worker. It’s like dating – when there’s good fit, everything feels natural and easy. When there’s poor fit, every day feels like a struggle.
Types of Fit
Person-job (P-J) fit encompasses how well individual skills, abilities, and interests align with job demands and requirements. Strong P-J fit typically produces better performance and satisfaction while reducing stress and turnover intentions. You know that feeling when you’re doing work that you’re both good at and enjoy? That’s strong P-J fit.
Person-organization (P-O) fit involves compatibility between individual values and organizational values, personality characteristics, or needs (Cable & Edwards, 2004). P-O fit can be based on similarity (you and the organization share the same values) or complementarity (your differences actually complement what the organization needs).
Attraction-Selection-Attrition (ASA) Model
The ASA model describes how organizations and individuals undergo mutual assessment processes (Schneider, 1987). Through attraction, selection, and attrition phases, organizations attempt to create workforces that match organizational culture and leadership styles.
During the attraction phase, organizations try to attract people whose personalities resemble those of founders or senior leaders. You’re similarly attracted to organizations that appear compatible with your characteristics and values. Ever notice how certain companies just seem to appeal to you while others don’t? That’s the attraction phase at work.
The selection phase involves both organizations choosing individuals and individuals choosing organizations based on perceived fit (Judge & Cable, 1997). However, selection processes may not perfectly identify fit, leading to some mismatches. Sometimes you think a job will be great, but once you start working there, you realize it’s not what you expected.
The attrition phase occurs when individuals whose personalities don’t match organizational requirements leave voluntarily or are terminated. This natural selection process gradually increases similarity while potentially reducing diversity that might benefit performance.
Socialization Process
Socialization is the process by which new employees learn organizational values and procedures while developing commitment to organizational culture. Effective socialization reduces uncertainty, increases satisfaction, and accelerates performance development.
Recruitment and socialization begin before you start work, as you’re attracted to organizations with cultural characteristics compatible with your personality. Organizations similarly invest effort in attracting applicants who appear to have compatible values.
Selection considerations include interviewer estimates of person-organization fit that influence hiring recommendations (Cable & Judge, 1997). Research shows that interviewers make initial fit assessments during interviews and base recommendations on perceived cultural compatibility beyond technical qualifications.
Orientation programs provide formal socialization through employee manuals, meetings with HR representatives, and meetings with supervisors to discuss duties and expectations (Cable & Parsons, 2001). The extent of similarity between new hires and assigned work groups influences how long and difficult socialization becomes.
Benefits of effective socialization include increased job performance, enhanced organizational citizenship behaviors, improved social cohesion, decreased turnover and absenteeism, improved internal stability, and better external representation when socialized employees present a positive image in dealing with vendors, customers, and potential new employees.