Research on organizational climate factors contribute to improving performance in modern companies

In today's highly uncertain environment, companies implement measures to respond to constant changes and improve business performance. This study focuses on organizational climate as a key factor for the success of such efforts. An organizational climate questionnaire was developed and surveys were administered (Study 1: a webbased survey given to company employees (N=2,869); and Study 2: an answer sheet survey given to employees of Company X (N=510)). Four factors were extracted from the organizational climate questionnaire by exploratory and confirmatory factor analysis: manifestation of company policy, positive work atmosphere, individual proactive attitude and disorganized workplace (Study 1 and 2). Previous research on organizational climateto- outcome relationships pointed out that job satisfaction can be related to organizational climate. In this paper, structural equation modeling (SEM) was conducted to examine causal relationships among organizational climate, job satisfaction and performance, each of which was measured using self-assessment. The results showed that a significant correlation was found between manifestation of company policy and performance (Study 1 and 2), indicating that manifestation of company policy plays an important role in improving business performance. The results of SEM also revealed that a significant correlation was found between job satisfaction and performance in Study 1, whereas there was no significant effect of job satisfaction on performance in Study 2. This indicates that factors affecting performance differ depending on organization.