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Organizational Climate and Company Productivity: the Role of Employee Affect and Employee Level

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  • M Patterson
  • P Warr
  • M West

Abstract

Consistent with a growing number of models about affect and behaviour and with arecognition that perception alone provides no impetus for action, it was predicted thatassociations between company climate and productivity would be mediated by average levelof job satisfaction. In a study of 42 manufacturing companies, subsequent productivity wassignificantly correlated in controlled analyses with eight aspects of organizational climate(e.g. skill development and concern for employee welfare) and also with average jobsatisfaction. The mediation hypothesis was supported in hierarchical multiple regressions forseparate aspects of climate. In addition, an overall analysis showed that companyproductivity was more strongly correlated with those aspects of climate that had strongersatisfaction loadings. A second prediction, that managers¿ perceptions of climate would bemore closely linked to company productivity than would those of non-managers, was notsupported. However, managers¿ assessments of most aspects of their company¿s climatewere significantly more positive than those of non-managers.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0626.

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Date of creation: Apr 2004
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Handle: RePEc:cep:cepdps:dp0626

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: Organizational structure; organizational climate; employee welfare; manager; productivity.;

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  1. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
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