The Impact of Organisational Climate on Employee Engagement and Performances in a Multinational Oil and Gas Exploration and Production Company in Thailand

Abstract

This research aims to support the company to improve employee engagement by exploring antecedent issues that have not been previously captured by the company survey. Organisation climates are chosen since they focus on intrinsic values such as purpose and work harmony, i.e. internal communication, learning and development, and perceived organisation support, to close the engagement gap and translate them into feasible actions. In addition, the study further explores the performance indicator beyond conventional measures. Conventionally, the benefit of engagement is measured through self-rating questions, e.g. organisational commitment and job satisfaction. However, it lags off the link between those measurements and tangible benefits. The internal survey data are analysed by the structural equation model (SEM) to identify the relationship between antecedents and consequences, and then linear regression is applied to correlate each factor to the observed performance. To provide a complete understanding of each relationship, interviews are conducted to find an insightful view of the model outcome. The result emphasises the strong relationship between engagement and organisational commitment, especially organisation engagement. Learning and development show contradicting results from the previous study and the outcome cannot clear the myth that higher engagement leads to better performance but it has shown a promising correlation between engagement and performance. The finding could help the management team and HR department better understate the priority for each antecedent which also links to the benefits of engagement that ultimately supports future HRM.