Psychological Climate and Organizational Effectiveness : Role of Work Engagement

This study contributes to our understanding of the mediating mechanism of work engagement through which psychological climate of an organization is linked with the organizational effectiveness. We developed and tested a mediation model associating between the latent constructs of organizational effectiveness. Our model evaluates the premise that employees’ favorable perceptions of the organizational settings are directed towards increased organizational effectiveness through an individual-level construct, work engagement. Overall, data from 300 employees in different service organizations in India support this model. Data analysis, performed using Structural Equation Modeling (SEM) approach, revealed that work engagement fully mediates the relationship between psychological climate and organizational effectiveness, suggesting that employees’ engagement with their work plays a significant role in shaping the effectiveness of their organization