Understanding Organisational Effectiveness Through Sustainable Human Relations Approach

Abstract

Organisational effectiveness undoubtedly depends on well-designed human resource practices which embrace vibrant industrial relations. The relations that exist between superior and subordinates in industrial establishments are mostly contingent upon the degree of autonomy in the decision-making process. As autonomous decision making is an integral part overall empowerment strategy, the climate that fosters trust, creativity, competitiveness, and proactive problem-solving intention tend to influence the employee perception towards improved organisational effectiveness. Earlier studies have established the direct relationship between psychological empowerment and to a certain extent in combination with structural empowerment variables and organisational effectiveness in a specific context. But the present research seeks to study the role of empowerment climate as a moderating variable for the aforesaid relationship which would ultimately bring about the effectiveness in the selected industrial establishments.