Organizational Climate as a Determinant of Employee Engagement - A Study on Private Banks

Abstract

Employee engagement has become a critical factor influencing organisational effectiveness in the banking sector, where service quality and customer relationships depend heavily on employee performance. This study examines organisational climate as a key determinant of employee engagement among private bank employees. Using primary data collected from 200 employees working in private sector banks, the study employs regression analysis to assess the impact of organisational climate on employee engagement. The findings reveal a significant and positive relationship between organisational climate and employee engagement, indicating that a supportive and well-structured work environment enhances employees’ emotional and cognitive involvement in their work. Further analysis shows that dimensions of organisational climate such as leadership support, recognition, communication and role clarity play a prominent role in shaping engagement levels. The study highlights the strategic importance of fostering a positive organisational climate to sustain employee engagement in private banking institutions and provides empirical insights relevant to human resource management practices