The concept of “organizational culture” is broadly discussed in the field of human resources management but is often not well defined. As will be discussed later, it is difficult to differentiate the concept of organizational culture from the overlapping concept of “organizational climate”. It becomes more difficult to define organizational culture when it includes the concept of management philosophy. Nonetheless, the notion of culture helps us think broadly about the traits of the total internal environment of the business organization, particularly when the components of culture are measured and scrutinized.
Organizational Culture
“It can be defined as the fabric of norms, values, beliefs, assumptions, myths, goals, visions that are broadly shared in the organization”. Generally the concept of organizational culture is used relative to a total organization, but there can be distinct subcultures within some organizations. Understanding the concept of organizational culture is imperative for the HR managers because the ingredients of culture are linked to organizational performance. Moreover, unless people in business organizations comprehend how to find out the functional and dysfunctional aspects of organizational culture, they and their organizations become victims of the culture rather than masters of it.
Though the notion of organizational culture is very difficult to measure but can be inferred from immersion in an organization and observing what people determine, write, and, in particular, do. There are more than enough factors of measuring organizational culture but the most important of them include in-depth interviews, group discussions, and participant observation that reveal norms, values, goals, visions, assumptions, and so on. However some aspects can be identified and measured with the usage of organizational climate “questionnaires”.
Organizational Climate
This is another important factor in organizational performance which is heavily influenced by and correlates with personnel management practices and strategies in organization. As a matter of fact, “ organizational climate can be defined as the measurable, collective perceptions of organization members about those aspects of their working life that affect their motivation and behavior – in particular, the culture of the organization, the prevailing leadership style, the degree of structure, and the personnel policies and practices”.
A particularly useful aspect of focusing on organizational climate is the measurement aspect. Therefore a comprehensive research and experience with regard to climate surveys (questionnaires) can show that measures of organizational performance. Furthermore, climate surveys can be exceedingly effective and useful HRM tools and methods for enhancing the HR performance. Additionally HR scorecard metrics and key performance indicators can be exceedingly useful tools for improving HR policies and practices. In short, both organizational culture and organizational climate are important concepts that can help the business organizations to improve their departmental performances in an effective manner.