Relationship between psychological climate and turnover intentions and its impact on organisational effectiveness: A study in Indian organisations

Abstract

Studies pertaining to human resource management in India reveal a variety of factors that affect employees’ attitude towards their job, including their perception of their job environment, or the psychological climate. The present study posits the two attitudinal variables of job satisfaction and job involvement as mediators between psychological climate and employees’ turnover intentions and extends it to their impact on organisational effectiveness. Data collected from 357 managers/executives was subjected to multivariate data analysis. The results established that psychological climate is a statistically significant predictor of organisational effectiveness and that job satisfaction and job involvement are important mediators in transmitting the influence of the predictor variables to the criterion variables.