The aim of this research study is to determine the factors, i.e., childhood socialization, institutional socialization, cultural socialization, fear of workplace penalty and afraid of getting terminated from work of organizational fear that influence the effective performance among the Malaysian fresh graduate employees. Data were collected from 119 fresh graduate employees who have their jobs in their first year in organization and data was analysed by using statistical analyses. The findings show that all the factors (childhood socialization, institutional socialization, cultural socialization, fear of workplace penalty and afraid of getting terminated from work) have significant relationships with effective performance. Among these, cultural socialization has the strongest relationship with effective performance. The empirical findings highlight factors of organizational fears that might affect the effectiveness of organizational performance. It also provides recommendations for organizations to reduce employee fear for better performance in achieving individual and company goals. This study provides insight into the important factors for organisational fear which ultimately lead to a better understanding to improve performance among fresh graduates’ employees in Malaysia.