Evaluating the Impact of Salary in Molding the Perception of Employees on Organizational Climate: An Analytical Perspective

Evaluating the Impact of Salary in Molding the Perception of Employees on Organizational Climate: An Analytical Perspective

*Dr.Vijeta Sharma

*Assistant Professor, Department of Commerce, Himachal Pradesh University, Shimla (H.P), India, email: sharma.vijeta8@gmail.com

Abstract

Organizational climate significantly influences employee engagement, performance, and overall institutional success. Among the various determinants of this climate, salary emerges as a key yet multifaceted factor. This research paper explores the relationship between salary and organizational climate from an analytical perspective, examining how compensation affects employee attitudes, motivation, and workplace culture. A mixed-method approach was employed, incorporating quantitative data from structured employee surveys and qualitative insights from interviews and narrative responses. The analysis reveals a strong link between salary satisfaction and positive organizational attributes such as trust, morale, and collaboration. However, the study also underscores that salary, while important, is not the sole driver of a healthy organizational climate. Elements such as leadership effectiveness, recognition, and opportunities for professional development also play crucial roles. The study concludes with strategic recommendations for enhancing HR practices by integrating both monetary and non-monetary factors to foster a supportive and high-performing work environment.

Keywords:  organisational climate, salary, development