In today's era when every body is talking about employee satisfaction, retention and total quality management, Environmental Psychology, if used appropriately can be considered as strong supporting tool in this direction. Environmental psychology is an applied field, which takes care of human behaviour and its 'psyche' for moulding it in favour of development and holistic management of the organisation. We often see that few places are very much comfortable to us and others are somewhat Threatening. Few places give us a boost and mental peace but few create a downfall in our energy level. Why is it happening? It is all because humans react both consciously and unconsciously to the surroundings in which they live and work. Their environment, whether it is natural or manmade, has a profound effect on feeling, behavior, general health and productivity.