ABSTRACT

Organizational climate depends on the employee’s attitude how they interpret the climate of the organization. It is possible that an individual is high in self-efficacy but his/her perceived organization climate is not conducive for achieving task-specific confidence. The virtual work force is comprised of people whose communications are diffused through the Internet and those who use varying frames from which to interpret and assign meaning to other’s actions and words. Multidimensional constructs of trust and service climate were developed using the literature in the trust and service management domains. Trust development in virtual teams may be more difficult in the absence of face-to-face contact. Studies have identified the difficulty of communicating in virtual teams because of the lack of media richness. The results reveal that in total sample of virtual workers, the perceived organizational climate is significantly and positively correlated with leadership effectiveness.