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CHAPTER 22
Organizational Culture and Climate
CHERI OSTROFF, ANGELO J. KINICKI, AND MELINDA M. TAMKINS
INTEGRATED MODEL OF CULTURE AND CLIMATE 566 ORGANIZATIONAL CULTURE 567
Historical Foundation and Definition of Organizational Culture 567
Layers of Organizational Culture 568
The Content of Organizational Culture 569 ■fc Antecedents of Organizational Culture 571 ^ Outcomes of Culture 571 CLIMATE 571
Historical Roots and Theoretical Foundations 571
Controversies and Resolutions 572
The Content of Climate 573
Antecedents of Climate 574
Outcomes of Climate 574
Summary 575 RELATIONSHIP BETWEEN CULTURE AND CLIMATE 575
Organizational culture and climate focus on how organizational participants experience and make sense of organizations (Schneider, 2000) and are fundamental building blocks for describing and analyzing organizational phenomena (Schein, ^ 2000). Although culture and climate have been approached ™ from different scholarly traditions and have their roots in different disciplines, they are both about understanding psychological phenomena in organizations. Both concepts rest upon the assumption of shared meanings—a shared understanding of some aspect of the organizational context.
Historically, the construct of climate preceded the construct of culture. Climate was introduced in the 1960s, primarily based on the theoretical concepts proposed by Kurt Lewin (1951; Lewin, Lippitt & White, 1939) and followed by the empirical research conducted in both educational settings (e-g., Stern, 1970) and organizational settings (e.g., Litwin & Stringer, 1968). Organizations were examined from a cultural Perspective as early as the 1930s (Trice & Beyer, 1993); howler, organizational culture did not become a popular issue for study in the management literature until the 1980s, largely following the publication of several best-selling trade books.
Overlap and Confusion Between Culture and Climate 575 Organizational Practices: The Linking Mechanism
Between Culture and Climate 576 Shared Meaning and Perceptions 577
EMERGENCE OF SHARED MEANING
AND PERCEPTIONS 578
Emergence of Organizational Culture 579
Emergence of Organizational Climate 580
Implications and Research Directions 582 CULTURE AND CLIMATE CHANGE 584
Culture Change 584
Climate Change 585
CONCLUSIONS AND DIRECTIONS FOR FUTURE RESEARCH 586
REFERENCES 587
Since that time, research and thinking about culture have tended to overshadow that about climate (Schneider, 2000). In recent years, a great deal of attention has been devoted to the question of whether the constructs of culture and climate are different, the same, or interrelated (cf. Dennison, 1996; Payne, 2000; Schein, 2000). In this chapter, we view culture and climate as two complementary constructs that reveal overlapping yet distinguishable nuances in the psychological lives of organizations (Schneider, 2000). Each is deserving of attention as a separate construct as well as attention to the relationship between the two constructs. Furthermore, the continued study of culture and climate is important to the field of industrial and organizational (I/O) psychology around the world because these constructs provide a context for studying organizational behavior. That is, the social and symbolic processes associated with the emergence of organizational culture and climate influence both individual and group behaviors, including turnover, job satisfaction, job performance, safety, customer satisfaction, service quality, and financial performance. We structure this chapter by providing separate reviews and discussion of the culture and climate literature before turning to
566 Organizational Culture and Climate
the relationships between the two constructs and the processes underlying their emergence, strength, and change.