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Business Climate Of Administration Culture

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Discuss about the Business climate of Administration culture.





The report gives an overview on how the size of the organization influences organizational climate, managerial style and attitude of the employees. The size of the organization reflected in the strength of its employees. Organizational size also acts as an important variable in influencing the structural design. Greater size of organizations gives marketing intensive companies the power in the market place and increase in revenue.

Organizational Size Influencing Managerial Style

Managers require two primary job functions for managing employees and department operations. They have functional knowledge and expertise for managing department operations and necessary communication skills and leadership for managing employees (Vaccaro et al., 2012). Thus, the size of the organization influences the managerial style in the following respect.

In term of Strategy: Managers of small business can help in conceptualizing business idea, creation of a strategic plan and formulating the necessary steps for putting strategy into action. In contrast, large organizations have board members and executive officers responsible for strategic development and where implementation becomes the responsibility of the directors.

In terms of Protocol: The presence of hierarchy in larger organizations has led to formal work relationships between the employees and the managers. There is however the presence of open door policy in larger companies that helps communication between staffs and managers. On the other hand, the managers for small companies share friendly relationships and cultivates informal behavior with the co-workers at all the levels.

In terms of Performance: In smaller organizations managers have hands on approach towards the management responsibilities that are evaluated more favorably. However, in larger organizations evaluation of managers takes place on how well they are able to manage duties and tasks towards their subordinates.

In terms of Expertise: Managers working for a smaller organization is in the need for having wider range of expertise and talent compared to the manager who works for a multi layer organization.


How Organizational Size Influence Organizational Climate

Organizational climate defined by the values, beliefs, traditions and philosophies that are part of the organization. Thus, organizational character is an enduring characteristic of a particular organization that distinguishes it from other organizations (Shin, 2012). The size of the organization will thus influence the characteristics of the organizational climate. With the variation in size of the organization there is a change in the collective perceptions about the organization amongst its members in terms of cohesiveness, support, recognition, autonomy, trust, fairness and innovation. There is a change in the member interaction and variation in interpretation of the situation. Further, the variation in organizational size portrays that there is also a change in the way of reflection prevalent norm (Schneider, Ehrhart & Macey, 2013). The size of the organization thus helps in not only influencing but also shaping the organizational climate.

How Organizational Size Influence Employee Attitude

The size of the organization somehow has an impact on the attitude of the employees. In this context, if one considers the absence rates then the involuntary and voluntary absence is comparatively higher in large organization compared to smaller ones(Mowday, Porter & Steers, 2013). Now if the aspect of productivity considered, then the rate of productivity per member is low for larger organizations. However, morale is something that has a negative relation with the size of the organization. Further, as far as work quality considered it is better is small organizations compared to the larger ones.


The report ends with a discussion on the influence of size of the organization on the attitude of the employees. There is also discussion on how the organizational size impacts organizational climate and managerial style. 



Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.

Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual review of psychology, 64, 361-388.

Shin, Y. (2012). CEO ethical leadership, ethical climate, climate strength, and collective organizational citizenship behavior. Journal of Business Ethics, 108(3), 299-312.

Vaccaro, I. G., Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2012). Management innovation and leadership: The moderating role of organizational size. Journal of Management Studies, 49(1), 28-51.


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