The document discusses organizational theory and organizational climate. It defines organization as people working together towards common goals. Three theories of organization are described: classical, neo-classical, and modern. Classical theory views the organization as a machine, while neo-classical and modern theories consider human and social factors. Organizational climate refers to the internal environment experienced by members. Factors like leadership, structure, and communication influence the climate. An effective climate has open communication, participative decision-making, concern for employees, and manages change well.