ORGANISATIONAL CLIMATE AND ITS EFFECTS ON EMPLOYEE PERFORMANCE

Abstract

bstract: Organisational climate is word commonly used in managing organisations of 21st century. Management and human resource practitioners consents that good organization climate is very critical in this era of globalization. Organisational climate should be nurtured and enhanced in organisation so that employees are in position to be innovative and creative. Organisations need to grow, survive, compete, develop and make profits. Therefore, organisational climate is the best option to motivate employees to work towards achieving organisation objectives. The main purpose of the review is to identify the importance of organizational climate in an organisation and its effects on employee performance. Employees should be motivated at whatever costs to minimize their intentions to quit from organisations. The major finding of the review is that organisational climate is not practiced in many organisations. Thus, good organisation climate, enhances employee’s loyalty, promotes positive image of the organisation and enhances employee retention. The policy makers and other stakeholders will benefit from this study in the sense that it will be an eye opener to managers, human resource practitioners and other stakeholders to understand and appreciate the importance of organization climate in organisations in this era of globalization