Abstract

Organizational climate has been linked to a variety of positive outcomes, including increased organizational success, lower employee turnover, higher job satisfaction, and enhanced employee and overall firm performance. The purpose of this paper is to explore similarities and differences in organizational climate across an emerging, a post-transitional, and a developed economy, more specifically focusing on India, Hungary, and Portugal. A comprehensive multi-dimensional measure of organizational climate is used, incorporating 17 scales across four quadrants: human relations, internal process, open systems, and rational goal. The impact of certain key factors associated with the identified differences is explored across three levels: on the individual or within firm level, the group or between firm level, and, finally, on the global societal level, with relevant references made to the GLOBE project’s comprehensive cultural assessment. A total of 848 individuals participated in the study, representing 24 organizations. Despite the relative consistency in terms of the GLOBE study values corresponding to the three countries in the study, our results indicate variable trends and differential patterns, with India showing the most positive climate overall, and Portugal faring the worst. Our findings confirm the complexity associated with the concept of organizational climate, likely to be influenced by a variety of factors associated with the internal as well as the external environment. Implications for scholars as well as practitioners are discussed, with particular emphasis on those organizations entering novel cultures