Organizational climate research represents one of the primary approaches to understanding work environment in organizations. It is the fundamental part of the human environment in the boundaries of which the employees of an organization work. Employee perceptions of organizational climate affect nearly all aspects of organizational life including employee attitudes and behavior, group processes, and organizational performance. The survival and growth of any organization is directly proportional to the favourable climate in it. Employees in the organization have to be well conversant with rites, rituals, policies etc. This can only bring a sense of belongingness among the employees and further help in the growth of the organization. Research on organizational climate gained momentum in the late 1960s and early 1970s, but waned in the 1980s as a number of conceptual and methodological challenges were raised by critics. The resolution of these challenges formed the foundation for contemporary research on climate, which has thrived over the past decade due to its usefulness in understanding workers' experiences and predicting organizational effectiveness.