ORGANIZATIONAL CLIMATE: ITS RAMIFICATIONS ON RETENTION OF PRODUCTION ENGINEERS IN AN ELECTRONICS COMPANY IN THE PHILIPPINES

This study explored the perceived manifestation of various dimensions of organizational climate and their relationship to the retention of production engineers in an electronics company in the Philippines operating under a Japanese organizational setting. Specifically, the research examined the engineers’ length of stay and analyzed human resource data on hiring and resignation trends within the Production Engineering Department. Employing a quantitative research design, the study utilized an adapted survey questionnaire administered to 110 engineers in the professional career band who were hired between 2000 and March 2024.The findings revealed that organizational climate, as measured by respondents’ level of agreement, significantly influenced the retention decisions of production engineers to remain and work long-term in the Japanese XYZ Electronics Company. Despite the predominance of newly hired engineers within the department, the analysis of human resource data indicated consistent hiring and resignation rates across all tenure blocks. The two primary reasons cited for leaving the company were career growth opportunities and personal matters. Interestingly, the study found no statistically significant relationship between the engineers’ length of stay and the organizational climate dimensions of conflict, rewards, and warmth. However, specific dimensions such as identity, support, structure, autonomy and freedom, and encouragement were identified as factors positively influencing the retention of engineers in terms of their length of stay. Based on these findings, it is recommended that engineering managers aiming to retain production engineers in a Japanese electronics company setting should implement exceptional programs and training initiatives. These should focus on strengthening organizational dimensions such as structure, identity, support, encouragement, and autonomy and freedom to foster a conducive work environment that supports long-term retention.