It is recommended to improve the organizational climate through increasing the effectiveness of the Building a positive work climate, where trust and participation are hallmarks, and where conflict and changes are seen as productive, can produce a dynamic and flexible organization. The aim of this study was identifying the factual organizational climate as perceived by nurses, determining the causes and effects of conflict, management strategies, positive and negative effects of conflict, and assessing the employees for the chosen strategy for conflict management. It was conducted in Assiut University Hospital using a cross-sectional design. Subjects included 195 staff nurses, 107 head nurses, and 2 assistant nursing directors, and the director of nursing services administration. Data were collected using the organizational climate questionnaire and the organizational conflict questionnaire. The results revealed that 73.4% of nurses considered organizational climate as positive. Inter-group conflict was the highest (72.8%). Almost all nurses were for confrontational resolution strategy (97.0%), while avoiding was the lowest (80.7%). Most nurses considered conflict resolution strategies effective (83.3%), and had accepting attitude towards change (83.9%). Statistically significant relations were shown between inter-group conflict and nurses’ age (p=0.002), qualification (p=0.04), experience years (p=0.006), and job position (p=0.03). Positive organizational climate was associated with higher percentage of effective resolution, p<0.001. Positive statistically significant correlations were found between organizational climate and effective resolution (r= 0.64), and positive effect of conflict (r=0.47), and between positive effect of conflict and effectiveness of resolution (r=0.46). It is concluded that most studied nurses considered organizational climate as positive. Positive organizational climate was associated with higher percentage of effective resolution, and more positive communication system, reconsidering the reward system, with emphasis on recognition and support.