A HEALTHY ORGANIZATIONAL CLIMATE LEADS TO HIGHER JOB SATISFACTION, RETENTION & PROFITABILITY
Study confirms that a positive organisational climate could lead to less stressed and burned-out workers and, at the same time, a higher-level stressor can lead to lower job satisfaction and, therefore worsen employee well-being.
Organisational climate showed a significant and positive influence on job satisfaction. The results confirmed that organisational climate is significantly and negatively linked to role stress which suggests that the existence of a positive climate would buffer stress levels in workers
Source: (PubMed Central; 2019 May 21)
Organisational climate refers to the employees’ shared perceptions and the reason they attach to the policies, practices and procedures they experience in their workplace, as well as to the behaviours observed when they are rewarded and supported at work.
Source: (Ahmad et al., 2018; Cygler et al)
The recurring patterns of behaviour, attitude and feeling in the organization are called as climate that characterizes life in the organization. Organizational climate is defined as a global impression of one’s organization and personal impact of the work environment, which influences the individual employee’s work behaviours and job-related attitudes. It describes the perception of employees towards their organizations which would link to work attitude formation. Organizational climate is a psychological climate at an individual level and when these individual perceptions are aggregated.
An organizational climate is vital to get a clear understanding on where the organization stands in the perception of the employees today. It will reflect on what initiatives are having a positive impact on employees and what are having a negative impact leading to stressors. A positive organizational climate can lead to happier, motivated employees, and ultimately greater efficiency and productivity at work. This will eventually lead to higher job satisfaction levels, boosted employee retention and profitability.