Organizational climate refers to a temporary state, or quality of thought and feeling, within an organization. How do our employees feel about working in this organization right now? What are the primary concerns of leaders in this organization this month? Are the employees in this division likely to be pleased about this reorganization? How are we doing with regard to employee morale? These are organizational climate issues. Organizational climate does change, and leaders certainly can influence climate through their decisions and actions.
Organizational culture refers to an enduring trait, or reinforced pattern of behaviors, within an organization. What are the enduring stories, values, informal rewards and ways in which employees treat one another? These are organizational culture issues. While organizational culture tends to be very stable and endures many changes within an organization, organizational climate is often cyclical. Organizations go through cycles, especially if they are involved in seasonal changes. Department stores, accounting firms, agricultural businesses—and sports teams—all go through seasonal changes.
The climate of these organizations will inevitably change. However, the organizational culture does not change. We find that organizational climate will shift with a major organizational success or failure, with a major reorganization in the organization, or with the introduction of a new compensation system or training program. The organizational culture typically is not influenced in an immediate, noticeable way by any of these events.
Organizational culture, like personality, is formed early in an organization’s life. It continues to exert profound influence throughout the life of the organization. Organizational culture plays a particularly important role in the definition and maintenance of effective leadership.i An appreciative perspective on organizational life and leadership begins with recognition that organizational culture is powerful, pervasive and not easily changed. An effective and appreciative leader will recognize and understand the complex dynamics of the organization where she works. She will seek to take full advantage of strengths that are inherent in this culture rather than seeking to change the culture.
