Organization is an open, dynamic, purposeful social system of cooperation designed to enhance individual effort aimed at goal accomplishment; consists of the human element, the physical element, the work element, and the coordination element; transforms resources into outputs for users.
Although the concept of organizational climate is somewhat nebulous, it is valuable in understanding several aspects of organizational behavior. Organizational climate is the overall favourability of member attitudes and perceptions with reference to specific activities and features of an organization.
Organization climate usually do not have a clear definition and is simply explained as a perception that every employee in an organization feels, understood and shared (Kouzes, 1993). It is weather that a particular organization is having, reflecting how its’ system deal with the members. This is something that is difficult to be measured because it is senses or feels of employee perception toward the organization which is cannot be evaluated using tools. The combination of the perceptions reflects the actual work place of the organization.
Organization climate is important for the junior employees to observe and adapt. Their observation and perceptions are usually is the better reflection of the truth than senior employees. This is because senior employees’ perceptions are affected by many factors in the organization. A positive organization climate that set by the executives could be a motivation for employees, resulting effective and efficiency in productivity.
Organization climate is determined by factors from both internal and external environment. Internal environment refers to the factors that affect the perception of the employees which occur within the organization and external environment factors are occur from outside the organization which is difficult to predict and control. In our study, we focus in the internal environment rather than external environment.