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Casual business apparel addresses many issues in the workplace. This phenomenon is having a strong impact on the corporate world, including employee production and motivation. Employees in many organisations are being permitted to wear apparel items that are considered non‐traditional for the business setting. Research conducted about casual dress has focused on what is appropriate, and perceptions of changes in standard measures of productivity. Limited research exists regarding the relationship of casual apparel in the workplace and the more complex measures of employee motivation, specifically perceptions of organisational climate. The purpose of this research was to identify the employee perceptions of organisational climate which occur with the implementation of a casual apparel policy and to examine the relationship between demographic variables and the employee perceptions of organisational climate. The sample was 125 corporate management personnel of a US manufacturer. Results of the analysis of the self‐administered questionnaire indicated that employees with lower incomes believe that wearing casual apparel in the workplace will improve their relationships, especially with their supervisor, as well as their sense of belonging to the organisation. In addition, women felt less comfortable with wearing casual apparel in the workplace than did men. Results of this study indicate that casual apparel in the workplace does relate to organisational factors of psychological climate. Wearing casual apparel in the workplace is perceived to help eliminate boss/employee lines. This finding suggests that employees have the potential to be better team players. As a result, productivity, creative thinking and contributions by employees may also increase. Future research should further examine the effects of casual dress on other motivational factors and measures of productivity as well as gender differences. A pre‐/post‐casual dress implementation study needs to be done in order to measure actual changes in motivation and productivity.

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