Strategic human resource management and organisational performance - mediating effect of relational climate in public sector in India

Interactions and relationships among the members of an organisation constitute the foundation of an organisation. The purpose of this paper is to explore the interactional aspect of strategic human resource management (SHRM) and empirically test the role of relational climate in enhancing organisational performance (OP). This research is anchored on the 'relational models theory' of Fiske (1992) to explain relational climate and the 'social interdependence theory' of Johnson and Johnson (2005) to comprehend how relational climate affects OP. Data were obtained from 327 executives through a questionnaire survey from ten public sector oil companies in India and analysed through SPSS and structural equation modelling. By empirically examining a positive correlation between relational climate and organisational performance, this study adds to the body of knowledge on relational HRM. Hence, managers must build an effective relational climate that will facilitate in developing a relational climate in the workplace to improve organisational performance.