An Impact of Organisational Climate on Employees’ Performance with Select Private Insurance Companies

Organizational Climate is comprised of a mixture of norms, values, expectations, policies and procedures that influence work motivation, commitment and ultimately individual or work unit performance. Climate can be defined as the perceived attributes of an organization and its subsystems, as reflected in the way an organization deals with its members, groups and issues. The Emphasis is on perceived attributes and the working of subsystems. Positive Climate encourages, while negative climate inhibits discretionary effort. ‘Organizational Climate’ refers to the quality of working environment. If people feel that they are valued and respected within the organization, they are more likely to contribute positively to the achievement of business outcomes. Creating a ‘healthy’ organizational climate requires attention to the factors which influence employees’ perceptions, including the quality of leadership, the way in which decisions are made and whether the efforts of employees are recognized. Organisational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees. Organisational climate determines the work environment in which the employee feels satisfied or dissatisfied. Since satisfaction determines or influences the efficiency of the employees, we can say that organisational climate is directly related to the efficiency and performance of the employees.