Creating the climate to get the most from
your team
Helping leaders to create high-performing organisations
SHARON CRABTREE | MICHAEL DODDS NOVEMBER 2011
Our objectives today
Look at what we mean by organisational climate
Consider how different styles of leadership have an impact on climate
Discuss your own experiences
Think about how you might be able to improve some elements of the climate experienced by
those around you
Organisational climate
is
how it feels to work in a
particular environment. It
has a direct impact on
the bottom line
performance.
Climate is powerful
Small changes in climate have substantial impact on important business
indices:
A 10% improvement in climate yields a 7.9% increase in
net operating
income
Multinational petrochemical company
A 12% improvement in climate yields a 5.9% increase in
sales
Multinational FMCG company
Climate matters because ...
Absenteeism,
turnover, early
retirement,
demotivation, low
performance
Bottom-line,
satisfaction,
motivation,
productivity
Extended periods of poor climate commonly lead to
The power of leaders
Leaders create the climate for success
Individual
competencies
Leadership
styles
Organisational
climate
Results
50-70% of variance in organisational climate can be explained by differences in leadership styles Up to 30% of variance in financial results (profits and revenue) can be explained by differences inorganisational climate
Me at my most energised
What was going on?
What made you feel this way?
What was the impact on your performance?
Six dimensions of organisational climate
Flexibility
Responsibility
Standards
Rewards
Clarity
Team commitment
Flexibility
Flexibility
Responsibility
Standards
Rewards
Clarity
Team
commitment
Definition
Lack of constraints in the
workplace
No unnecessary rules,
policies, procedures, or
practices
New ideas are accepted
freely
Questions to ask
Do employees have to
fight against unreasonable
constraints?
Is it easy to innovate/get
new ideas accepted?
Are there many
cumbersome rules and
procedures?
Responsibility
Flexibility
Responsibility
Standards
Rewards
Clarity
Team
commitment
Definition
Employees have a lot of
authority delegated to
them
Employees have freedom
to make decisions about
doing their own job
Employees are held fully
accountable for the
outcome of their work
Questions to ask
Are important tasks
delegated to employees?
Are employees
encouraged to take
initiative?
Are individuals
encouraged to take risks
based on their own
judgment?
Are employees allowed
the opportunity to
experience the success or
failure of their own
Standards
Flexibility
Responsibility
Standards
Rewards
Clarity
Team
commitment
Definition
The emphasis employees
feel management puts on
improving performance
and doing one’s best
The degree to which
people feel that
challenging but attainable
goals are set for
individuals and the
organisation
The extent to which
mediocrity is not tolerated
Questions to ask
Does the performance bar
rise every year?
Can employees get away
with doing less than their
best?
Rewards
Flexibility
Responsibility
Standards
Rewards
Clarity
Team
commitment
Definition
Rewards and recognition
linked directly to
performance
Rewards and recognition
differentiate levels of
performance
People know where they
stand in terms of their
performance
Questions to ask
Do rewards outweigh
punishment?
Are rewards tied directly
to the quality of
performance?
Is there a broad reward
portfolio?
Does good performance
lead to increased
opportunities for personal
growth?
Clarity
Flexibility
Responsibility
Standards
Rewards
Clarity
Team
commitment
Definition
Employees know what is
expected of them
Employees know how
those expectations relate
to the larger goals and
objectives of the
organisation
Questions to ask
Do employees have a
clear idea of what is
expected of them?
Do employees know how
they personally contribute
to the mission?
Are goals, policies,
procedures and lines of
authority clearly
articulated and
understood?
Team commitment
Flexibility
Responsibility
Standards
Rewards
Clarity
Team
commitment
Definition
People are proud to
belong to the organization
Everyone provides extra
effort when needed
There is trust that others
in the organisation are
working toward a common
objective
Questions to ask
Do individuals and teams
cooperate effectively to
get the job done?
Do conflicts get resolved
effectively?
Do feelings of trust, pride,
and organisational loyalty
exist in the workplace?
Situation cards
1. Pick a card and read through the scenario
2. Discuss the impact of this with your neighbour
3. Together, think of one thing that you each might do which could raise that particular
climate dimension in your own part of the business
Leadership styles
Behaviour = f(person; situation)
Patterns of behaviours used across a wide range of managerial and leadership
situations
Leadership styles have the biggest impact on organisational climate
The breadth of a leader’s styles determines his/her effectiveness
Factors that impact appropriate use of styles
Experience of employees
Employee strengths and weaknesses
Complexity of tasks
Time pressures
Risk associated with deviation from performance
Resources available
Six leadership styles
Coercive style
Gives lots of directives
Expects immediate employee compliance
Controls tightly
Relies on negative, corrective feedback
Motivates by stating the negative consequences of noncompliance
Questions to ask
Who controls the work?
What is the nature of performance feedback? What is the nature of the work of the group?
Coercive
Authoritative
Affiliative
Democratic
Pacesetting
Coaching
Primary objective: Getting immediate complianceAuthoritative style
Develops and articulates a clear vision; sees selling the vision as key
Solicits employee perspective on the vision
Persuades employees by explaining the “whys” in terms of employees’ or the organisation’s long-term
interest
Sets standards and monitors performance in relation to the larger vision
Coercive
Authoritative
Affiliative
Democratic
Pacesetting
Coaching
Questions to ask
Is there a vision for the group or organisation? Are employees committed to the vision?
How is the leader perceived by his/her direct reports?
Affiliative style
Is most concerned with promoting friendly interactions
Places more emphasis on employees’ personal needs than on goals and standards Pays attention to “the whole person”; stresses things that keep people “happy” Avoids performance-related confrontations
Rewards personal characteristics more than job performance
Coercive
Authoritative
Affiliative
Democratic
Pacesetting
Coaching
Questions to ask
What are the predominant employee/employee and employee/leader interactions? What is the nature of performance feedback?
How are goals and standards represented in this organisation?
Democratic style
Trusts that employees can develop the appropriate direction for themselves and the organisation Invites employees to participate in the development of decisions
Holds many meetings and listens to employees’ concerns
Rewards adequate performance; rarely gives negative feedback
Coercive
Authoritative
Affiliative
Democratic
Pacesetting
Coaching
Questions to ask
How are decisions made in this organisation?
How is poor or less-than-satisfactory performance dealt with?
Who provides the direction in this organisation?
What is the level of competence of the employees in this organisation? Primary objective: Building commitment and generating new ideas
Pacesetting style
Leads by example
Has high standards
Is apprehensive about delegating
Takes responsibility away if high performance is not forthcoming Has little sympathy for poor performance
Coercive
Authoritative
Affiliative
Democratic
Pacesetting
Coaching
Questions to ask
What happens when work is not performed to expectations in this organisation? Does the leader feel comfortable delegating his work to others?
What is the pace of work in this organisation?
What is the level of competence of the employees in this organisation?
Coaching style
Helps employees identify their strengths/weaknesses
Encourages employees to establish long-range development goals
Reaches agreement with employees on mutual roles in development process Provides ongoing instruction as well as feedback
May trade off immediate standards of performance for long-term development
Coercive
Authoritative
Affiliative
Democratic
Pacesetting
Coaching
Questions to ask
Do employees have development and/or career plans?
Are employees supported in achieving their professional development goals?
Are employees interested in their own personal development?
Leadership styles
The key to being an effective leader is using a broad repertoire of styles in the right
situations
Each style has its purpose, although some have more positive applications than others
The six styles which have the greatest impact on the climate you create are:
Coercive
‘Directives nor directions’
Authoritative
‘Selling ideas’
Affiliative
‘People first, task second’
Democratic
‘Involving others’
