Organization Climate and Decision Making

The climate of an organization, which creates stimuli and evokes emotions (whether positive or negative), is influenced by that organization’s characteristics, such as organizational structure and leadership behavior, which signal the degree of the organization’s effectiveness. Within this context, the governance of an educational organization is a complex function, not only in terms of ethics and responsibility but also in daily practice. The decision-making process is an integral part of an organization’s climate, which influences HOW decisions are made. A psychological perspective on the decision-making process shows us how people perceive the problem and thus contributes to a better utilization of the available information for decision-making. Decision making is an individual process and depends on how individuals perceive reality. It is a reaction to a problem. At the organizational level, people make certain decisions and those individuals’ decisions are affected by their psychology; their perception of reality influences the decisions they make for their organizations. Decisions are individual evaluations of situations. However, there are organizational limitations that are usually determined by available alternatives. A positive climate sets a better organizational framework for decision making because it simply encourages employees to make the best use of their personality traits in order to make a more rational decision for the organization. This chapter: