The role of leadership in shaping organisational climate: An example from the fast moving consumer goods industry

Abstract

Orientation: The 21st century has presented challenges and opportunities to organisations. Although South Africa is the most competitive economy in sub-Saharan Africa, the country needs to focus on these opportunities to improve competitiveness. Although there is research on leadership and organisational climate, a debate continues about the contribution of organisational climate and the role of leadership to creating the desired organisational climate. Research purpose: The aim was to explore the relationship between leadership and organisational climate in a South African fast moving consumer goods (FMCG) organisation. Motivation for the study: Few studies focus on leadership and organisational climate in South Africa. This study builds on the knowledge that exists. An understanding of the effect of leadership on organisational climate in South Africa allows for customised solutions to the problems of leadership, organisational climate and business performance. Research design, approach and method: Using a descriptive, cross-sectional field survey approach, 896 participants (all of whom worked in one organisation) participated in the survey. Main findings: An exploratory factor analysis (EFA) and structural equation modelling (SEM) multivariate analyses revealed a new set of organisational dimensions, confirmed the relationship between leadership and organisational climate as well as the relationship between organisational climate and its various dimensions. Practical/managerial implications: The findings emphasised the importance of certain generic and specific leadership practices for creating the desired organisational climate in South Africa and in the FMCG environment. Contribution/value-add: This study contributes to the body of knowledge about the relationship between leadership and organisational climate in South Africa.