The relationship between leadership and organisational climate : employees at an FMCG organisation in South Africa

Abstract

The 21st century has posed challenges and provided opportunities for organisations, and although a large body of research exists on both leadership and organisational climate, these two concepts have become a matter of urgency in South African organisations. The dynamics in the organisation have a direct effect on the people the organisation serves and business performance. The aim of this research was to explore the relationship between leadership and organisational climate in a South African fast-moving consumable goods (FMCG) organisation. There are few research studies that focus on leadership and organisational climate in the South African context and this study builds on limited existing knowledge. Using a descriptive, cross-sectional field survey approach, a sample of 896 participants employed at one organisation was surveyed. Explanatory factor analysis and the structural equation modelling (SEM) multivariate analysis technique revealed a new set of organisational dimensions and confirmed the relationship between leadership and organisational climate and organisational climate and its various dimensions. The findings emphasise the importance of certain generic and specific leadership practices in creating the desired organisational climate in the South African context. This study contributes to knowledge on the relationship between leadership and organisational climate in the South African context.