4.10. People Management in Small Businesses: Culture and organizational climate

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People Management in Small Businesses: Culture and Organizational Climate

People management in small businesses is a crucial factor in the success of the business. Organizational culture and climate are fundamental elements that directly influence employee performance and satisfaction.

Organizational Culture

Organizational culture is the set of values, beliefs, rituals and norms that guide employees' behavior. It is the company's identity, what differentiates it from others. A strong and positive organizational culture can be an important competitive differentiator.

In small companies, organizational culture is generally easier to shape, as the reduced number of employees allows for more direct and effective communication. However, it is essential that company leaders are the main disseminators of this culture, demonstrating through their actions the values ​​they want to be followed.

Some aspects that can be considered when defining the organizational culture of a small company include valuing teamwork, promoting a healthy and respectful work environment, the constant search for innovation and valuing results.


Organizational Climate

Organizational climate, on the other hand, is the perception that employees have about the work environment. It is influenced by several factors, such as leadership, people management policies, organizational structure, among others.

A positive organizational climate contributes to employee motivation and engagement, which is reflected in greater productivity and better results for the company. To this end, it is important that the company invests in actions that promote employee satisfaction, such as carrying out organizational climate surveys, implementing recognition and reward policies, promoting a healthy work environment and the possibility of professional development. .

Interaction between Culture and Organizational Climate

Culture and organizational climate are intrinsically linked. Organizational culture influences the climate, as the values ​​and norms defined by the company guide the behavior of employees and the way they perceive the work environment.

On the other hand, the organizational climate can also influence culture. If employees perceive that the company values ​​and recognizes their work, for example, this can reinforce a culture that values ​​performance and commitment.

Therefore, for effective people management in small companies, it is essential that there is an alignment between culture and organizational climate. This means that the values ​​and standards defined by the company must be in line with people management policies and practices, contributing to the promotion of a positive organizational climate.


In short, people management in small companies requires special attention to organizational culture and climate. A strong and positive organizational culture, combined with an organizational climate that promotes employee satisfaction and engagement, can be an important competitive differentiator, contributing to the success of the business.

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