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Organizational Climate Helps Predict Performance

Published Wed Jun 01 2005

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The article states that a new research study by the Institute for Organizational Performance finds that key relationship factors predict more than half of the difference between low and high performers. Organizational Vital Signs, an assessment tool developed by emotional intelligence experts, examines six factors: accountability, collaboration, leadership, alignment, adaptability and trust. Those climate factors were tested to determine how they affect performance, measured as a combination of customer service, job performance or productivity and retention. The study generated two key findings, according to Joshua Freedman, director of the study and the institute. Statistical analysis enabled researchers to determine how specific elements of the climate predict performance in each area. In customer service, for example, 47 percent of the difference between low and high scores is predicted by the factors of accountability, collaboration and alignment. But 43 percent of retention is predicted by leadership, alignment and collaboration.

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Organizational Climate Helps Predict Performance

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