The relationship between organizational climate, job satisfaction and organizational performance An empirical study in small business in Beijing
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What is the research about?
In the context of Beijing which has the highest competitive market in China, organizations are difficult to survive in a long-term. In particular, small firms have faced more dilemmas than larger organizations. Thus, it is important to seek a way in order to survive for small business in Beijing. The main aim of this study is to examine the linking between organizational climate, job satisfaction and organizational performance in order to survive in the competitive market via the decrease of turnover rate and increase of organizational performance. Following hypothesis would be examined in this project:
Hypothesis 1: Organizational climate has positive impact on job satisfaction
Hypothesis 2: Job satisfaction has positive impact on organizational performance
Hypothesis 3: Job satisfaction has positive impact on turnover intention.
Hypothesis 4: Organizational climate has positive impact on organizational performance
The relationship between organizational climate, job satisfaction and organizational performance has been considered in previous studies. For instance, Schneider (1990) noted that organizational climate sets the framework for employee satisfaction which in turn results in job satisfaction (Jackofsky and Slocum 1988; Reichers and Schneider 1990). Besides, when firms tend to measure the overall performance, organizational climate as a possible predictor could contribute to the results (Patterson et al., 2004). Moreover, Patterson et al (2004) explained that the mediator between organizational climate and organizational performance is job satisfaction. Further, job satisfaction and job performance are the core work outcomes that influencing organizational performance and the success of business surviving (Hart and Cooper, 2001; Gould-Williams and Davies, 2005). Namely, job satisfaction plays a significant role in organizational performance (Latif et al., 2013).