Relationships between work unit climate and labour productivity in the financial sector: A longitudinal test of the mediating role of work satisfaction

Abstract

This study is designed to test the mediating role of work satisfaction in the relationship between work unit climate and labour productivity. Two work unit climate facets are examined: goals and service orientation. Longitudinal data obtained from more than 14,000 employees in 171 branches of a financial services organization provided no evidence for work satisfaction as a mediator of the relationship between work unit climate and productivity. An increase in service orientation and an increase in goals orientation are both associated with an increase in work satisfaction. An increase in work satisfaction is not associated with an increase in productivity, thereby precluding a mediation effect. An increase in service orientation is related to increased labour productivity, but an increase in goals orientation is not. In addition, relationships across time are reported and interpreted. In this study no evidence was found for work satisfaction as an intermediary mechanism, however, results highlight the importance of differential effects of the two work unit climate facets on work satisfaction and labour productivity.