An organizational climate refers to the conditions within an organization as viewed by its employees. The word climate usually describes the practices involved in communication, conflict, leadership and rewards.
An organization's climate is determined by the actions and values that organizational members have in common. This includes widely-held but unofficial beliefs, shared values, typical behaviors, behavioral patterns and mission statements. The climate occurs on many levels. There is an overarching atmosphere that impacts the entire organization. In addition, individual units within the larger group often function within their own specific environmental conditions. The climate affects the employees' job satisfaction and stress levels.