Organizational Climate within an organization refers to how work environments are perceived and interpreted by employees working in the organizations. Organizational climate plays a vital role in deciding the effectiveness of performance. Organizational climate has its major impact on the performance of the workforce which is determined by the level of its satisfaction and motivation. The study addresses the prevailing organizational climate of transport undertakings in all districts of Himachal Pradesh. The information required for the study has been collected from both the primary and the secondary sources. A multistage random sampling method has been followed. The result of the study revealed that organizational climate has a direct influence on the perception of employees of both transport undertakings.