Organizational climate is the relatively enduring quality of the internal environment of the organization as perceived by its members. Climate is employees' perception of the atmosphere of the internal environment, such as its rules, and how employees are treated, which is important to group and organizational success.

 Organizational climate is a broader term than culture. The major difference between culture and climate is as follows. Culture is based on shared values and assumptions of “how” things should be done (ideal environment), while climate is based on shared perceptions of the “way” things really are done (intangibles of the actual internal environment).

An organization can claim to have a strong culture and have a negative climate. Employees can know how things should be, while being dissatisfied with their perception of the way things actually are. Managers sometimes say that employees are its greatest asset, yet employees don't perceive that they are treated that way.

Job satisfaction is based primarily on organizational climate. Morale is also an important part of organizational climate. Morale is a state of mind based on employees' attitudes and satisfaction with the organization. Morale can be different at various levels within the organization. Morale is commonly measured on a continuum ranging from high to low morale.