Organizational climate refers to the environment of a workplace that influences employee behavior and performance. It was introduced in the 1940s to describe patterns affecting human behavior. An organization's climate is influenced by factors like its context, structure, leadership, physical environment, and values. It mechanisms include operating as a constraint through rewards/punishments, facilitating self- and other- evaluation, acting as a stimulus, and helping employees develop perceptions. A sound organizational climate is created through effective communication, participative decision-making, responsiveness to change, concern for people, and technological modernization.