USING CLIMATE SURVEY DATA TO BUILD A STRUCTURAL EQUATION MODEL OF ORGANISATIONAL PERFORMANCE AND CHANGE
Langford, P., Macquarie University, Australia
Building on Burke and Litwin's (1992) theoretical causal model of organizational performance and change, this study used climate survey data and structural equation modeling to explore and confirm an empirical model of organizational performance change. Over 3 sub-samples involving 2414 working adults from over 200 organisations, the reliabilities and factor structure of the Voice organisational climate survey were examined and found to be satisfactory. In line with Burke and Litwin's suggestions, the survey was designed to contain both transformational and transactional factors such as leadership, supervision, teamwork, resources, communication and diversity. The survey also assessed subjective perceptions of organisational outcome variables such as innovation, quality and customer satisfaction. In 2 of the 3 sub-samples, a structural equation model including all transformational, transactional and outcome variables was first developed and then confirmed, showing acceptable stability across the 2 samples. The final model provides support for the relationship between many transformational and transactional variables and organizational performance and change, while challenging the importance of variables such as teamwork.