Education, health, business, industrial or military organizations owe their existence to four universally recognized elements, that is, men, money, methods and materials. Out of these the single most important common element amongst organizations is human being. This element manipulates and causes the other three to operate in a fashion so as to yield desired results, that is, organizational objectives. Organizational climate represents the way in which its members perceive it. We can not see or touch it, but it is there. In educational setting, the organizational climate is the blend of principal’s behavior and teacher’s behavior. Education is now universally recognized to be the prime key to moral, cultural, political and socio-economic development of a nation. As Pakistan’ educational system shows, the teacher, the main agent of change through education, undergoes so many strains and stresses during the discharge of his sacred duties. Organizational climate or environment of a workplace is one of the factors that explicitly or implicitly influences the level of performance of teachers. The researcher selected the area of college education as the focus of the study. It will be desirable to conduct such studies at other levels of education to improve the working of the teachers resulting in improvement of education system. The objectives of the study were: (a) To identify the strengths of the organizational climates of Public and Private Degree Colleges as perceived by the heads, teachers and college students. (b) To identify the weaknesses of the organizational climates of Public and Private Degree Colleges as perceived by the heads, teachers and college students. (c) To measure the performance of the teachers as perceived by the heads of the organizations. (d) To explore the performance of teachers as perceived by the college students. (e) To find out the relationship between organizational climate and performance of college teachers. The nature of this study was co-relational type. Population of this study comprised of the following categories (1) Principals of all Public and Private degree colleges in Punjab (2) all the teachers working in Public and Private degree colleges in Punjab (3) all the students studying in these colleges. For choosing the sample from the population random sampling technique was used. The sample was consisted of 100 degree colleges (70 Public + 30 Private); their heads, five teachers and fifteen students from each college were also included in the sample. The total was 100 heads, 500 teachers and 1500 students. In order to measure the variables the research instruments were the questionnaires for heads, teachers and students of sampled degree colleges. Data collected from sampled colleges was tabulated, analyzed and interpreted by applying mean, standard deviation, standard error of mean, coefficient of correlation and t-test techniques in the light of the objectives of the study. On the basis of analysis, it was concluded that majority of the public and private college principals opined that open climate was very highly positive correlated to teacher performance but paternal and closed climates were negatively correlated to teacher performance. As compared to public college principals, private college principal like closed climate in their institutions. Majority of the public and private college teachers disliked closed climate. Teachers of both systems liked the thrust behaviour of their heads and disliked aloofness behaviour of their heads. Majority of public and private college students held that their teachers did not explain subject matter with daily life examples. Teachers did not use effective teaching aid. Teachers did not try to assess student’s level of xxii understanding. Teachers of both systems did not respect opposing viewpoints of students. The major recommendations of the study are that disengagement behaviour of teachers should be controlled, especially in public colleges. They principals may take some measures to discourage disengagement in teachers. Teachers should avoid showing the intimacy behaviour. They may be given chances to discuss academic problems in groups and seminars, conferences, workshops may be arranged more and more. Principals of both public and private colleges should avoid aloofness. The senior teachers, teacher leaders and student leaders may motivate principals to engage themselves more and more in academic and co curricular activities. Principals should avoid assigning reports and routine duties to the teachers. Private colleges should adopt open climate features. Public college principals should change their management style. Their management may be improved through in-service training, seminars, workshops and departmental meetings and supervision. Refresher courses for teachers should be held during summer vacations for the training of development and proper use of teaching aid. The principals should ensure the availability of materials relating to instructional technology. Performance of teachers can be increased by promoting open as well as controlled climates and avoiding closed climate. These climates may be ensured through administrative policy and measures.