Organizational Climate and Performance: 'The relation between organizational climate and performance and an investigation of the antecedents of organizational climate'

In this study, the relationship between organizational climate and organizational performance is tested for a large multinational company. Besides, I tested what influence management support and organizational unit size have on organizational climate perception. In total, 30.892 employees among 49 operating companies participated in the study. Regression analyses showed that there is a significant relation between organizational climate and profitability, sustainability & growth, EBIT margin, productivity and employee engagement. No relation between organizational climate and employee turnover was identified. Besides, I did not found evidence that the relation between organizational climate and profitability, sustainability & growth, EBIT margin and productivity is mediated by employee engagement. Furthermore, it was found that organizational climate is strongly influenced by management support, and that the relation between organizational unit size and organizational climate is mediated by management support. These results contribute to the literature on organizational climate and performance. Besides, these results are of great value to the business world, as managerial implications have been identified that can be used to improve organizational climate, and thus, company performance.