A Study on Effect of Organizational Climate on Employee Perception, Job Satisfaction and Organizational Outcomes

The theoretical framework on organizational climate, employee perceptions and job satisfaction, and employee engagement has been continuously studied by scholars and researchers. The varied outcomes of studies lead us to inconclusive understanding about the possible relationships and associations between organizational climate, employee perceptions and performance, employee job satisfaction and organizational outcomes. While some scholars argue that there is a linear relationship between them, others find a curvilinear association. Again while there is a consensus that employee perceptions (about organizational climate) positively correlate with job satisfaction and organizational commitment, there are differences of opinion among researchers about the constituent factors or attributes of'organizational climate' and determinants of'climate strength.' The present paper aims at understanding about how do employees perceive the organizational climate and its impact on their motivation, performance, job satisfaction and retention. The findings narrate that the constituent factors of organizational climate are mostly 'non-physical' elements and its strength may be determined by the degree of attractiveness of those elements.