Electronic copy available at: http://ssrn.com/abstract=2672303 ORGANIZATIONAL CLIMATE: A COMPARATIVE STUDY AMONG PUBLIC AND PRIVATE ENTITIES José… [606046]

Electronic copy available at: http://ssrn.com/abstract=2672303 ORGANIZATIONAL CLIMATE: A COMPARATIVE STUDY AMONG PUBLIC AND PRIVATE ENTITIES José Luiz Barros Fernandes, Universidade Católica de Brasília Sandy Monise Corrêa Silva, Universidade Católica de Brasília Péricles Tadeu da Costa Bezerra, Centro de Educação Superior de Brasília Alberto Shigueru Matsumoto, Universidade Católica de Brasília ABSTRACT The objective of the study is to analyze the dimensions and particularities of the organizational climate in public and private organizations. We applied a survey over employees of two private and two public entities. Our results indicate that the organizational climate in its various dimensions is perceived more positive by the employees of private companies. The leadership dimension was one of the most relevant factors in the study, which made clear the role of the leader in a private organization and his/her strong influence to the organizational climate. Keywords: Organizational climate, Leadership, Public organizations. 1. INTRODUCTION The recent high level of stress on work and the continuous demand for professional efficiency are stimulating an ever-growing competition, requiring employees and managers to improve and to search for every kind of tools which may be used in benefit of organizations. According to Machado and Goulart (2005), the knowledge of Organizational Climate is considered an important tool and thermometer for the proposition and conduction of changing actions, as these types of information allow the organization to reassess, plan and develop productive and proactive working relationships for its employees. Siqueira and Almeida Neto (2015) posit that the Organizational Climate is how the employees see their working environment. It is considered one of the most relevant factors inside an organization because it is what influences the behavior of the employees inside the company, generating positive or negative consequences in the environment they are surrounded by. In every organization (public or private), human capital is fundamental. As reported by Martins (2011), the companies have realized that one of the most important aspects of their strategies, in their competitive differential, is the people, the human capital. The author states that investment in human capital is increasingly seen as a primary factor in determining the productive levels in competitive advantages in companies. One sees an increasing need of developing favorable organizational climate inside the organization, because this way the employees will have motivation to work and perform their activities in the best possible way. According to Zampier et al. (2011), the organizational climate is, without a doubt, an aspect that differentiates the companies with good people management from the companies that consider human capital simply a mere resource. The better the offered conditions in the organization environment, the higher the expected level of efficiency of the employees. In the perception of Hunter (2004), creating a healthy environment is indispensable in order to promote organizational growth. The main objective of this research is to answer the following question: is the organizational climate in public and private companies similar? Complementarily, we will: analyze the specificities of the public and private companies; verify the influence of the leadership in the organizational climate; and understand the importance of interpersonal relationship in the organizational climate. 2. LITERATURE REVIEW 2.1 Organizational Climate Organizational Climate can be understood as a set of properties of the work environment, perceived directly or indirectly by the employees. Yet Luz (2003) says that the organizational climate is an

Electronic copy available at: http://ssrn.com/abstract=2672303 important tool because it allows the manager to measure the satisfaction and dissatisfaction level of the employees in the working environment. When analyzing an organization, it is necessary to understand how the existing organizational climate dynamic in it works. According to Dasgupta (2014) there is a need to create a holistic model of organizational culture, which is more comprehensive, with a broader vision of the organization and considering an interdisciplinary approach to cultural dynamics in business. Research conducted by the author in India, are more like the study of the organizational climate of the actual organizational culture. Thus, one should help the organization grow into a wider social enterprise with more commitment to sustainable development of society in general. Climate analysis is important as it provides recognition of how the employees see their working environment. As reported by Rizzatti (2002), the study of the organizational climate is a tool capable of detecting deficiencies in the structure and anomalies in the working environment. The author states that the study of the climate is a potentially strong tool to improve the quality of the organizations, opening a new dimension in the search of explanations about the organizational behavior. Indicators of organizational climate identify transformations in several areas, and that is the reason and the importance of running frequent inquiries in the area, as it will be possible to evaluate the dissatisfactions and the necessities of the employees. According to Vieira and Vieira (2004), from the moment there is mapping of the internal environment of the company, it is possible to effectively address the focus of the main problem, improving the working climate of the employees. The authors further affirm that not only does the climate enquiry provide real knowledge of the problems, butit still identifies the strong points of the company. To determine the effect of climate and organizational justice in satisfaction Patlán-Pérez et al (2012) conducted a survey of 307 teachers of higher education institutions in Mexico. They recommended that organizations focus their efforts to promote a supportive work environment, both in interpersonal and organizational levels as at the individual level, which contributes to worker satisfaction and this will be reflected in their performance, productivity and motivation work.In another research conducted in a metalworking company located in Coahuila / Mexico, Díaz Díaz et al (2013) searched elements to provide the company manager, suggestions for change, strengthening and/or improvement of the organizational climate. They found that the motivation factors that prevail are those related to the content and importance of the work, and the recognition supervisor and colleagues. By identifying the problems in the organizational climate, it is possible to offer employees adequate working conditions, to provide new opportunities of development, and to establish an adequate and innovative working environment. Luz (2003) affirms that research of the climate should be considered a strategy to identify opportunities to continuous improvement in the working environment. The author further says that it is fundamental that the employees understand that by answering the inquiry they will be taking the first step into the process of improvement and development of the working environment as long as the necessary plans of action are implemented. 2.2 Specificities of Public and Private Entities Public organizations can be conceived as organizations whichhave the objective of providing services to the society, presenting a public character. The purpose of the public company can be one of economic activity or of provision of public services. The process of evolvement of the public institutions is permanent and requires constant adjustments. Private organizations also need to adjust and find means to cater and satisfy employees so that they perform their work in favor of the growth of the company. According to Pires and Macedo (2006), public organizations keep the same basic characteristics of other organizations, as well as some particularities such as adhesion to rules and routines, overvaluation of hierarchy, paternalism in relationships, addiction to power, among others. These differences are important in defining the internal processes, in the relations of innovation and change, in the formation of values and beliefs, policies of human resources inside the company. As to an organizational private system, according to Sgorla (2009), it has profit as its primary objective, considering resources as indispensable to its survival. Therefore, all the activity executed by a private organization, in its several departments – from the simplest to the most complex – aims explicitly or implicitly at the financial counterpart. Using the methodology of questions applied in a questionnaire with great level of detail, Rincón (2005) characterize the organizational culture of a company from the public sector from four variables: organizational structure, organizational climate, values and communication. The results enabled the start

of an organizational diagnosis by detecting critical areas that would be necessary to optimize the management. He designed an intervention program in order to facilitate the fit between individual needs, business objectives and demands of the environment. In the view of the authors Ribeiro and Mancebo (2013), managerialism in private organizations is very different from its applicability in public state organizations. While the manager of a private company can redefine goals, intervene in the structure and modify its staff, the public manager needs to develop abilities to act within organizational structures limited by a legislation that manages public agencies maintained with uncertain resources and stiffened by rubrics, made up by staff controlled by the Government, and a constant political pressure. The manager can do only what the law prescribes, not being able to intervene directly in the mission, vocation, or values of his/her organization. Given the rigidities of the public entity, we formulate the following hypothesis: Hypothesis 1: The organizational climate is more positive in private than in public entities. According to Pires and Macêdo (2006), in Brazil, employees of public organizations always need to possesscommunicatingskills in their working relationships in order not to provoke disagreements with the not very competent management of managers. The authors affirm that within public organizations, relations of esteem and games of influence are the real indicators of powers in Brazil. The authors conclude by saying that the public sector is perceived as a field where political sponsorship and privileges surrounding formally instituted rules prevails. The feeling of iniquity and injustice, as well as incongruity between discourse and official practices, produce frustration regarding personal and professional projects, leading to demotivation and hindering the formation of positive expectations in regard to possibilities of change. 2.3 The influence of Leadership in the Organizational Climate The leader holds an important role inside organizations. The way through which a leader manages the working environment directly affects the organizational climate, generating positive or negative consequences. Siqueira and Almeida Neto (2015) affirm that the leader is one of the most fundamental parts inside the organization. He/she is directly linked to the defeat or victory of the organization, influencing and motivating the group. The authors affirm that the leader is a kind of mirror of his/her team.In other words, in order for this mirror to reflect positive and favorable reflections, keeping a good relationship between each other is mandatory. The leader needs to learn how to listen and to know what is happening among those being led. In the view of the authors Tagliocolo and Araújo (2011), the leadership dimension relates leader and contributor; good leaders influence and motivate their collaborators and their working team, and the organization becomes more efficient and effective. Good leaders generate more positive results. According to Cunha et al. (2009), the leader has to recognize his/her job, understand what he/she needs to do for his/her team and for his/her organization. The Ability is the how to do it; in other words, the leader has to find a way to make his/her team work together in a way that they can achieve the objectives defined by the organization. Moreover, the desire is the motivation, the willingness to do. The leader needs to feel motivated and willing to lead, because if he/she does not possess the desire, he/she will hardly get to be a good leader. In order for it to turn into a habit, it is required that a leader gather the three aforementioned elements. For Freitas and Rodrigues (2008), a leader is someone who has influence on a specific group of people so that they do what he/she desires; however, this influence should not be strict and through means of the power of an office, force people to do what he/she desires. He/she should use the authority and respect toward them, offering a means of work which favors the development of their activities by their own will, conducting the people and the organizations in a direction that they would not follow alone. According to Schein (2009), one who is largely responsible for changes is the leader. In order for the organizations to be efficient, managers must be leaders effectively, playing then a fundamental role in the formation and transmission of the organizational culture. According to the author, leadership is the source of creation, manipulation and even extinction of an organizational culture. He states that leaders possess the role of planning and forming social processes and cultural manifestations as to influence the collective construction of belief and values, inspiring the ones under a specific leadership. The organizational culture is shaped by leadership behavior. Leadership focused on creativity embedded in a

fertile organizational climate can generate harvest of ideas for improvement and innovation of the entire workforce (Gaspersz, 2007). The foundation of a good organizational climate are in reconciling work and family life, obtaining social benefits, satisfaction at work and quality of management or leadership, the latter being of great importance as it directly influences the creativity and productivity the company's employees (BAGUER, 2006). The results of the survey conducted by Rostami II et al (2012) on Iran's cement industry showed a significant relationship between organizational climate and organizational commitment to innovation and that it can be considered under the leadership of the manager of the companies. When searching on impact of supervision influence and other variables: organizational climate of small and medium businesses in Mexico, Palomino et al (2013) concluded that abusive supervision practices negatively affect the organizational climate, consequently, employee productivity, which may be contributing to the low success rate of such companies in that country. According to Leme (2012) the managers of the public service are generally highly capable professionals and technicians in their working area; they are extremely intelligent, capable and with a high level of academic background. However, they are not prepared to be leaders of people in a political environment, surrounded by political interests which are party biased several times, and where the use of power prevails. He also states that there is a great difference between the public company and the private company. In a private company, one can do everything which is not against the law. As to the public company, one can do only whatever is prescribed by the law, and this particularity makes a great difference. The author continues to say that in reality, there are several cultural barriers, and this aspect turns the life of the manager in the public sector really difficult. One of these barriers is the culture of stability. Some people enroll in public service examination with the purposed of "living at ease", as the expression says. These people actually spoil not only the image of the public functionalism, but also the life of the leader. Unlike a private company, where the employee, if not coherent with the function which he/she should perform, can be fired, to dismiss a civil servant due to performance issues is something very rare. Hypothesis 2: Collaborators perceive leadership as more relevant in private than in public entities. The research on organizational climate both in the public sector and private one can be an excellent tool in the hands of a leader, as he/she can understand what is happening in the organization in order to take the necessary actions and to have a view of how the employees see his/her leadership. 2.4 The importance of interpersonal relationship in the organizational climate. According to Schein (2009), the organizations are the result of people who work together toward a common purpose. Under the view of the authors Machado and Goulart (2005), interpersonal relationship refers to an interaction or relation between two people or systems of any nature, in a way that the activity of one is partially determined by the activity of the other. The authors state that people who share the same goals are likely to become interested in one another beyond only professional terms. The feeling of not only making part of a team, but also of being important, creates strong motivation for the fulfillment of tasks and performance. Therefore, there is reciprocate influence and each person evokes a physical or mental response from the other people. Interpersonal relationship is a factor of great relevance in the analysis of the organizational climate. For Silva et al. (2008), the development of people within the organizational context depends on the interpersonal relationship that consequently interferes in the motivation of the collaborators. If interpersonal relationship among collaborators is not good, the consequences are negative for the working environment. Cisneros et al (2002) analyzed the relationship between the different types of conflicts and reactions of employee groups at various hotels in the region of Andalusia, Spain. The authors evaluated the impact of the existence of conflicts in several variables in these organizations, among them the organizational climate. They concluded that the existence of so-called relationship conflict affect the organizational climate as it exerts an influence even on the desire of the employee to leave the current job. By contrast, the existence of conflict in the execution of certain activities, called the task of conflict, generated a positive impact on some dimensions of organizational climate of these companies, such as

innovation and calls the proposed objectives, suggesting that a certain level of conflict in execution tasks provide an environment where creativity and daring are possible. For Rizzatii (2002), interpersonal conflict originates not only from individual disagreements regarding essential problems, such as differences about organizational and political structures and sets of administrative measures, but also from personal antagonism; in other words, it originates from differences of markedly personal and emotional character due to interdependent relationships of the individuals at the workplace. Among a variety of conflicts, the interpersonal ones are those which change the dynamics of the working environment the most. For the authors Nascimento and Simões (2011), the management of interpersonal conflicts becomes even more complex within the Brazilian public organizations. This is due to its specificities, such as the weakness in the application of legal and coercive mechanisms, the stability acquired by the civil servants in accordance with the guidelines of the Law nș 8.112/1990, the patrimonialistic and clientelistic tradition of the public administration in Brazil, the dysfunctions of the bureaucracy, among other visible factors inside public management. The authors affirm that these elements hinder a committed personnel management that focuses on the development of professionals and of the organization, seeking to update its methods and techniques in order to become more efficient and compatible with the public administration. On the other hand, in private companies, competition among each of the collaborators is more recurrent. This is because there are possibilities of growth inside the company, besides the possibility of being challenged to reach goals; many are rewarded when they surpass the expectation of the manager. When there is too much competition, instead of strengthening and uniting the team, there is disintegration, making employees act separately and walk in opposite directions. This factor is very negative for the company and ends up reflecting in all the levels of the organizational scale. If there is too much competition, individuality and selfishness certainly take the place which should be destined to partnership, sharing and collaboration. Hypothesis 3: Collaborators perceive interpersonal relationship as more positive in public than in private entities. 3. METHODOLOGY We used a questionnaire applied to two private and two public entities. It hadthe objective of obtainingdifferentiating and similar aspects about the organizational climate of both sectors. The chosen organizations were: Universidade de Brasília (University of Brasília), the Ministério da Integração Nacional (National Integration Ministry), the Banco Interamericano de Desenvolvimento (BID) and the SEBRAE/DF. The first two are public and the last two were considered private entities. The BID is a public/private company; however, the staff hiring system is through means of an outsourced company which is different from the way civil servants are hired in the public service. The Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (SEBRAE) is a private entity which promotes competition and sustainable development of micro and small-sized entrepreneurs. The questionnaire was basedon the one proposed by Silveira (2007) and adapted to be applied in public and private companies. The herein questionnaire has 21 questions of 7 organizational climate dimensions: interdepartmental relationship, salary, professional progress, benefits, discipline, physical working conditions and leadership. The items about leadership were added in order to verify one of the hypothesis.We used a sample of 200 respondents, being 50 from each public organization and 50 from each private organization. Man-Whitney statistic tests were used to verify the hypothesis presented previously. 4. RESULTS After applying the questionnaires in the respective companies mentioned in the methodology, we worked on the tabulation of the obtained answers, totaling 200 questionnaires with the final goal of analyzing the organizational climate and its dimensions in the public and private sector.Table 1 presents the averages obtained by the public and private companies, the difference of values and the statistics significance. The averages were analyzed in a scale of 1 to 5, ranging from "completely agree" to "completely disagree";the closer to 1 the better the result.

Through means of a global analysis of the collected data, we could conclude that the organizational climate is more positive under the perception of collaborators in private companies than in public companies, what validates the first presented hypothesis. The results obtained were significant to the level of 5% of significance. The SEBRAE/DF presented the best organizational climate among the companies, being a positive aspect for the organization of great differential. The authors Siqueira and Almeida Neto (2015) affirm that if the climate presents positive aspects, everyone will benefit inside the organization, besides generating a pleasurable environment to execute all the tasks. The public organization Ministério da Integração Nacional, presented the worst result, with an average higher than 2.5, showing that the collaborators are less satisfied with the working environment. TABLE 1: RESULTS SUMMARY
The leadership dimension was one of the most relevant aspects of the research. Table 1 shows the difference between the public and private sector. The results validate hypothesis 2, in which collaborators perceive leadership to be more relevant in private companies than in public ones. Not only does the leader in private companies exercise great influence on those being led by him/her, but he/she also exercises his/her function in a participative, motivating and efficient way. On the other hand, the leader in the public organizations analyzed does not have an acting and participative role, showing the difficulties of the public manager in executing his/her function in an effective manner. SEBRAE/DF presented the best average regarding the leadership question (1.5), a relevant aspect inside the company, as the leader is directly linked to the failure or success of the organization. It also indicates that the collaborators are satisfied with the role of the leader, affirming that the chief executes his roles in an efficient way and is worried about keeping a good relationship with his/her collaborators. Universidade de Brasília (UnB) presented the worst result: an average 3.0, indicating that there is no effective participation of the public manager in the place, which is an evidence of lack of action by the leader. The results obtained were significant to the level of 5%, according to the Mann-Whitney U-Test. The interpersonal relationship dimension was an aspect that differed from hypothesis 3, which states that the interpersonal relationship is more positive under the perception of collaborators in public companies than in private ones. As shown in Table 1, both in public companies and in privates ones,the obtained results were positive; the averages go from 1.7 to 2 (in a scale of 1 to 5). There is a good relationship between working colleagues, and there is also companionship and cooperation among collaborators. Universidade de Brasilia (UnB) presented the best average of all the organizations (1,7). It can be affirmed that the relationship among employees in this place is good, and that it is a place where the civil servants work the longest in the organization. As to Banco Interamericano de Desenvolvimento (BID), it presented the worst average of all organizations (2.04). No significantly statistic difference was found regarding the perception about interpersonal relationship through comparison between the public and the private organizations. Through the obtained results, another aspect of great difference between the public and private sphere observed is that of the physical working conditions. The public service depends on resources from the government in order to invest in the infrastructure and acquire tools in the working location, what makes these organizations present inferior results if compared to those presented by private organizations. Private companies have more autonomy to intervene if compared to public ones. Banco PublicPrivateDifferenceSignificanceGlobal
 Average2.72.20.5*Leadership2.92.00.9*Interpersonal
 Relationship1.92.0-­‐0.1Salary3.02.60.4*Career
 Perspectives3.42.90.5*Benefits3.02.30.7*Discipline2.22.20.1Physical
 Environment2.61.70.9**
 p-­‐value
 lower
 than
 5%

Interamericano de Desenvolvimento (BID) presented the best result, with an average of 1.5. Private organizations have the necessary tools to run their activities in an adequate manner; they are concerned about physical safety in the working environment, as well as they possess satisfactory physical space and cleanness of the working place under the perception of the collaborators. The obtained results were significant to the level of 5%, according to the Mann-Whitney U-Test. Lastly, significantly statistic differences have been foundamong the dimensions: payment, professional progress and benefits; being these factors more relevant to the workers of the private companies than of the public ones. 5. CONCLUSION The objective of the study was to analyze the dimensions and particularities of the organizational climate in public and private organizations. In order to verify the hypotheses, we applied a survey over employees of two private and two public entities and compared the statistical difference of the results using the Mann-Whitney U-Test.. According to the results, there’s an indication that the organizational climate in its various dimensions is perceived more positive by the employees of private companies. The leadership dimension was one of the most relevant factors analyzed in the study. We found evidence that the leader in a private organization has strong influence in the organizational climate. Some deficiencies have been observed, and they must receive special attention by managers of the organizations, such as the physical conditions in the working environment of the public companies, which generates a negative result for the organizational climate of these environments. In short, the research on the organizational climate is a powerful and very important tool, and if used adequately,it can contribute to improving the performance not only of the collaborators and the working group but also of the organization as a whole. REFERENCES Baguer, A. 2006. “Los cimientos de un buen Clima Laboral”. Available at URL: www.chilecapacita.cl. Cisneros, I. F. J. de, Dorado, M. Á., Martinez, I., Medina, F. J. and Jaca, L. M. 2002. “Types of Conflict and Personal and Organizational Consequences”. 15th Annual Conference of the International Association for Conflict Management, IACM. Utah, USA. Available at SSRN: http://ssrn.com/abstract=305068 or http://dx.doi.org/10.2139/ssrn.305068 Cunha, D., Pereira, M. A. and Neves, R. O. 2009. “O papel do líder nos tempos atuais”. Disponível em: <http://www.dido.eti.br/documentos/artigo_papel_lider_nos_tempos_atuais.pdf.>, p.1-18. Acesso em 05 abril 2015. Dasgupta, M. 2014. “Organizational Culture and Firm Performance: A Reflection of Theory, Research and Practice”. Available at SSRN: http://ssrn.com/abstract=2435528 or http://dx.doi.org/10.2139/ssrn.2435528. Díaz Díaz, M. G., Cárdenas, M. C. P. and González, I. O. S. 2013. “Clima Organizacional: Factores de Satisfacción Laboral en una Empresa de la Industria Metal – Mecanica”. Revista Global de Negocios, vol. 1 (2) p. 31-41, 2013. Available at SSRN: http://ssrn.com/abstract=2326721. Freitas, N. G. and Rodrigues, M. G. 2008. “Uma reflexão sobre liderança e motivação sob enfoque organizacional”. Disponível em: <http://www.aedb.br/seget/arquivos/artigos09/32_Nati_publicacao-final.pdf.>, p. 02-11. Acesso em 05 abril 2015. Gaspersz, J. 2007. “Compete with Creativity”. NRG Working Paper No. 07-05. Available at SSRN: http://ssrn.com/abstract=983934 or http://dx.doi.org/10.2139/ssrn.983934. Hunter, J. 2004. “O Monge e o Executivo: Uma História sobre a Essência da Liderança”. 19. ed. Rio de Janeiro: Sextante, 2004. 139 p.

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CONVIBRA – Congresso Virtual Brasileiro de Administração, Universidade Federal da Grande Dourados-UFGD. Silveira, J. A. da. 2007. “Pesquisa de Clima Organizacional na CELESC: Um estudo de caso na agência Regional de Florianópolis”. São José. Disponível em: <siaibib01.univali.br/pdf/Janete%20Aparecida%20da%20Silveira.pdf>. Acesso em 12 de março 2015. Siqueira, C. F. and ALMEIDA NETO, J.L. 2015. “Fatores influenciadores na Cultura e no Clima Organizacional que refletem na Motivação, Liderança e Comunicação de uma Empresa de Juazeiro do Norte – CE”. Id onLine. Revista de Psicologia, vol.9, n.25, p. 180-202. ISSN 1981-1189. Tagliocolo, C. and Araujo, G. C. 2011. “Clima Organizacional: um estudo sobre as quatro dimensões de análise”. Simpósio de Excelência em Gestão e Tecnologia/ SEGeT. Vieira, R. G. and Vieira, S. P. 2004. “A influência do Clima Organizacional nas empresas e nas pessoas”. Revista de divulgação técnico-científica do ICPG, vol. 1, nș 4. Zampier, M. A., Paula, P. de; Stefano, S. R., Andrade, S. M. 2011. “Clima e cultura organizacional em uma organização pública”. Disponível em: <www.spell.org.br/documentos/download/3348> Acesso em 13 de abril de 2015. Acknowledgement The authors would like to express their gratitude for FAP-DF, the research agency that financially supported this project. Authors Profiles José Luiz Barros Fernandes, PhD, is professor at Universidade Católica de Brasília Alberto Shigueru Matsumoto, PhD, is professor at Universidade Católica de Brasília Péricles Tadeu da Costa Bezerra. PhD, is professor at Centro de Educação Superior de Brasília Sandy Monise Corrêa Silva, Universidade Católica de Brasília