THE MEDIATING ROLE OF ORGANIZATIONAL CLIMATE ON THE RELATIONSHIP BETWEEN PERCEIVED ORGANIZATIONAL SUPPORT AND EMPLOYEE PERFORMANCE

Abstract

The decline in employee performance has been a major issue for organizations all around the
world, factors that improve employee performance have become a key issue for
organizations, researchers, practitioners, and policymakers due to their impact on global
organizations and economies. Given the utility company’s strategic role in providing
electricity and its challenges in delivering reliable services, enhancing employee
performance is critical. As a result, the need for this study stems from an examination of
element that promotes employee performance in organizations. This study suggests that
organizational climate serves as a mediator, enhancing the positive effects of POS on
employee performance. The study was underpinned by social exchange theory. Cross
sectional survey design was adopted and data were gathered from 461 sample of KAEDCO
staff using self-administered questionnaire. Simple random sampling method was used and
Results were analyzed using Partial Least Squares Structural Equation Modeling (PLS-
SEM), which established that POS has a significant positive relationship with employee
performance. However, results show organizational climate mediates the relationship
between POS and employee performance. Grounded on the study findings, it was
recommended that the KAEDCO should foster a supportive organizational climate,
organizations can amplify the positive effects of perceived support, leading to enhanced
employee performance. Finally, the limitations of the research and suggestion for future
research were given.