LPT initiated positive changes after examining the organizational climate

LPT d.o.o. was founded in 2000. as a sister company under the ownership of the American multinational corporation Leggett & Platt. Its location is in Prelog, where it currently employs more than 470 people and holds the status of the largest Croatian and regional manufacturer of various types of spring units for mattresses and furniture. They also export their products to most European countries and many other parts of the world.

Today, a vast number of companies face various problems in different business fields including Human Resources. Organizational climate and employee satisfaction are crucial for maintaining productivity and good business results.

Every company has its organizational climate that strongly impacts the organization's success. If time is not devoted to improving the atmosphere and company climate, the negative consequences for people and businesses can be severe.

That is why LPT d.o.o., our long-time client, decided to examine the organizational climate to identify "weak points" and take the necessary steps to improve their business through employee satisfaction and motivation.

Organizational climate is the totality of all employee’s experiences of their own organization. It includes individual behavior, motivation, group dynamics, and is influenced by emotions, values, attitudes, expectations, and aspirations of employees.

A positive organizational climate can significantly increase the organization's productivity. It is associated with individual and group employee motivation and it directly affects business performance. If people are satisfied, they will make an extra effort to get the job done right.

The organizational climate is influenced by leadership, operating procedures and structures, communication system, interpersonal relationships, promotion policy, employee compensation system, technological aspects, and the company's market position. These measures can be used as criteria for rewards and promotions. Also, the organizational climate affects employee motivation and engagement, initiative, a sense of belonging and commitment, which indicates the importance of organizational climate and caring for it.

DEKRA collected data from the client by interviewing conducting a survey where the questions were composed of various statements related to eight dimensions of the organizational climate. The surveyed employees expressed their opinion and personal experiences by marking each statement according to their degree of agreement with it. Also, the questionnaire contained a number of open-ended questions, where employees could independently provide answers about advantages, disadvantages, suggestions for improving conditions, and the like. The client’s employees felt safe giving their comments and suggestions as questionnaires were anonymously completed and read by external consultants rather than their superiors.

DEKRA conducted the organizational climate survey in collaboration with LPT d.o.o. twice with a 4-year gap. The survey showed that the client introduced changes based on the information obtained in the first survey, which had a positive impact on the climate in their organization. In all segments, employees showed greater satisfaction in the second survey.