Research has increasingly suggested that improved psychological well-being corresponds with employee physical health, job performance, and retention (Wright & Quick, 2009). However, literature identifying the relevant factors contributing to the significant correlation has produced contradictory results. This is predictable given the discordant definitions of work related to well-being along with inconsistent conceptualizations of organizational culture. Arguments are presented for utilizing consistent evidence-based models of work-related well-being and organizational culture. Employees and organizations can benefit from comprehending specific characteristics of the workplace affecting psychological well-being. This study evaluated the relationship between organizational characteristics and psychological well-being in a sample of 416 nontraditional MBA students using the Organizational Diagnosis Questionnaire (Preziosi, 1980) and Ryff Scales of Psychological Well-Being (Ryff, 1989). Results demonstrated that psychological well-being was inversely correlated with organizational health, suggesting that increased workplace dysfunction was associated with decreased psychological well-being. The results correspond to previous studies that established relationships between workplace environmental factors and employee psychological health. The findings provide new data pertaining to the specific workplace factors with decreases in psychological well-being.