Relationship of Leadership and Organizational Climate Indispensable Element to Facilitate Employee Engagement

Abstract

Purpose – Present study is a descriptive and analytical in nature aiming to bring out the relationship of leadership and organizational climate on employee engagement of the employees working in IT companies of South India. Design/Methodology/Approach- This study adopts descriptive and analytical approach it, starts with clear variables which are derived from theory and based on these variables. The data for the study was collected through the structured questionnaire. The sample for the present study was collected from the IT companies working in South India. A total 785 questionnaires were returned by the respondents, this indicating a response rate of 59 %. The questionnaire uses five point Likert type response format is used for all the measures ranging from strongly agree to strongly disagree. SPSS 21 and Microsoft excel are the statistical packages and Independent correlation and regression are the tools used in the present study Findings- A significant relationship was found between leadership and organizational climate with employee engagement of the employees working in IT companies of South India. It further shows that when there is a conducive working environment prevailing in the organization the employees feel a sense of conducive climate which makes them feel good about the organization and motivates them to work. Further, along with climate transformational leadership style facilitates in grooming the employees according to organizations vision. Hence, it’s observed that these factors facilitate in enhancing employee engagement. Employees with skills and potentials are more preferring transformational leadership style. Employees with potentials always aspire to grow along with the organization. Hence, leadership style plays a vital role in engaging the employees. Originality/value- This study provides insightful findings in understanding the role organizational competencies like leadership and organizational climate play in facilitating employee engagement. This study also shows the importance of the demographic variables with employee’s engagement. In spite of the limitations of the research, the study contributed to the international human resources management by exploring the South Indian IT company’s context. The theoretical framework proposes the relationship between employee engagement, organizational climate and leadership style. The study has found that organizational climate and transformational leadership is correlated with employee engagement and serves as the important indicator for engaging employees.