Relational Climate and Organizational Performance - An Empirical Investigation in Oil and Gas Public Sector in India

Abstract

Purpose:The aim of the study is to look at the role relational climate might play in enhancing the organizational performance and understanding its influence on relationship between SHRM and organizational performance in the context of public sectors.   Theoretical Framework:This research has been anchored on the ‘Relational Models Theory’ of Fiske (1992) to explain relational climate and ‘Social interdependence Theory’ of Johnson & Johnson (2005) to comprehend how relational climate affects organisational performance.   Design/methodology/approach:Data were obtained from 327 Executives by means of a questionnaire survey from 10 public sector oil companies in India and analysed through SPSS and structural Equation Modelling (SEM).   Findings:This study established that relational climate strongly affects organizational performance. By empirically examining the notion of relational climate and demonstrating a strong positive correlation between relational climate and organisational performance, this study adds to the body of knowledge on relational HRM.   Research, Practical & Social implications: This study contributes by discussing practical implications that managers must build an effective relational climate which will facilitate in developing environment for shared purpose, shared vision, compassion and mutual respect in the workplace to improve organizational performance. The study's societal implications include the development of a supportive interpersonal environment that fosters cooperation, respect, and relational vibrancy at work.   Originality/Value: This study highlighted the effect of relational climate on organizational performance in the public sector context.