From SQl Books on Line:

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int, bigint, smallint, and tinyint

Exact number data types that use integer data.

bigint

Integer (whole number) data from -2^63 (-9,223,372,036,854,775,808) through 2^63-1 (9,223,372,036,854,775,807). Storage size is 8 bytes.

int

Integer (whole number) data from -2^31 (-2,147,483,648) through 2^31 - 1 (2,147,483,647). Storage size is 4 bytes. The SQL-92 synonym for int is integer.

smallint

Integer data from -2^15 (-32,768) through 2^15 - 1 (32,767). Storage size is 2 bytes.

tinyint

Integer data from 0 through 255. Storage size is 1 byte.

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The Number 32768 is too large for the smallint datatype as it can only store numbers up to 32767. Will need to change it to an Int datatype.

Depending on where you are getting this error, it may mean a table column datatype change, and/or SP parameter...