What do you understand by the term organisational climate What effect Essay

What do you understand by the term organisational climate What effect does this climate have on an organisational performance - Essay Example With the increase in competition and frequent changes in the external environment, organizations round the globe are to build up a healthy organizational climate to attract, motivate and retain the human resources; because the organizations round the globe have started to understand the fact that human resource of a company is the biggest asset. Organizational climate is actually a reflection of the organizational culture and hence organizational climate tends to have major impact on the overall performance of an organization. In order to describe the impact of organizational climate on the overall organizational culture a multiple case study approach would be used in this study. One of the companies chosen would the digital giant Google and another company would be the company which signified sound and melody through its products-HMV. In order to analyze the impact of organizational climate on organizational performance various motivational and business theories has been used over the course of study. From the humble beginnings in 1998 in a small garage Google Inc has become one of the largest companies in the world. One of the major keys to the success of the company has been the organizational climate. ... Google also does not believe in creating large organizational groups. Rather the company focuses on creating small groups consisting of some self driven individuals. Such groups are usually monitored by project managers. One of the most unique organizational cultures of Google happens to be one individual can change group and move to another group without even consulting he superiors (Buelens, Sinding, Waldstrom, Krietner and Kinicki, 2011, p.223). The above information can be analyzed by using the Douglas Mc-Gregory’s X and Y theory of motivation. The X theory advocates that employees are lazy and avoid responsibility; hence the employees need to be constantly threatened and monitored to get the job done. On the contrary Theory Y believed that employees are self reliable and if given the proper opportunity and environment employees would practice self responsibility and hence very little monitoring is needed. Based in the above information it can be easily seen that Google fo llows theory Y. The management and the leadership show trust on the employees and this instils confidence in the employees resulting in overall improvement of the organizational performance (Mullins, 2010, p. 331). The management team of Google believes in providing best possible benefits to the employees. Also the company seeks to get rid of any probable things which may cause hindrance in the performance of individuals and the organization. For example the management of the company provides top class facilities in the form of laundry services, gym, community buses, car washes etc. One Schmitt, the present CEO was found quoting that the employees would love to work; but it is