The problem related to this study was to develop a clearer understanding of organizational climates in K-8 schools in Tennessee and the relationship that climate has to school performance, as measured through value-added assessment. The purpose of this study was to identify relationships between dimensions of school climate and student achievement as measured by mandated value-added assessment at the third grade level in Tennessee. The study attempted to determine if there was a significant difference between principal and teacher perceptions of school climate and if a relationship existed between the school climate and value-added assessment. The study also endeavored to determine if school contextual effects (demographics) had any effect on the school climate and/or value-added assessment. Superintendents in the 17 school systems in the First Tennessee District were given the opportunity to allow schools to participate in this study. Fifty-five schools agreed to respond to the Profile of a School (POS) survey instrument containing 50 questions. Information regarding value-added assessment for these schools was obtained from the Tennessee State Department of Education. Four research questions were answered, and four hypotheses with subparts stated in null form were tested using the two-sample t-test, Pearson Product Moment Correlation, analysis of variance with omega squared, and multiple regression analysis. All null hypotheses were retained except the hypothesis related to principal and teacher perceptions of school climate. There was a significant difference in principal and teacher perceptions of school climate as measured by the overall POS score, two of the four major areas of the POS (Climate and Leadership), and 7 of the 17 (Decision Making, Communication, Coordination, Influence, Team Building, Work Facilitation, and Encouragement of Participation) primary areas. The correlations did not demonstrate statistical significance between value-added assessment and any of the other variables (POS and/or school contextual effects).