Theoretical orientation of Moos’s (1994) psychosocial model of work environment and outcomes was investigated in context of academic settings of Pakistan. In explaining the relative effect of work environment in predicting burnout, the present study addressed the question of moderating role of personality which so far was remained open. The operating work environment of public and private universities was assessed on basis of ten psychosocial dimensions including Involvement, Co-worker Cohesion, Supervisor Support, Autonomy, Task Orientation, Work Pressure, Clarity, Managerial Control, Innovation and physical Comfort. Burnout among university teachers was assessed on dimensions of emotional exhaustion, depersonalization and personal accomplishment. Findings highlighted that work involvement as negative predictor and work pressure as positive predictor contributed in emotional exhaustion. Similarly, involvement as negative predictor explained variance in depersonalization scores. Co-worker cohesion and work pressure as positive predictors and physical comfort as negative predictor explained variance in reduced personal accomplishment. Teachers’ personality and affiliation with public and private sector institutions provided significant explanation of burnout. Findings stressed the need to monitor the work environment of academic settings as a means of improving the quality of work life of teachers.