The Impact of Organisational Climate on Employee Engagement and Performances in a Multinational Oil and Gas Exploration and Production Company in Thailand

Authors

  • Pakawas Mangkang Chulalongkorn University
  • Parames Chutima Chulalongkorn University; The Royal Society of Thailand

DOI:

https://doi.org/10.4186/ej.2022.26.8.53

Keywords:

employee engagement, organisation climate, oil and gas, SEM, HRM

Abstract

This research aims to support the company to improve employee engagement by exploring antecedent issues that have not been previously captured by the company survey. Organisation climates are chosen since they focus on intrinsic values such as purpose and work harmony, i.e. internal communication, learning and development, and perceived organisation support, to close the engagement gap and translate them into feasible actions. In addition, the study further explores the performance indicator beyond conventional measures. Conventionally, the benefit of engagement is measured through self-rating questions, e.g. organisational commitment and job satisfaction. However, it lags off the link between those measurements and tangible benefits. The internal survey data are analysed by the structural equation model (SEM) to identify the relationship between antecedents and consequences, and then linear regression is applied to correlate each factor to the observed performance. To provide a complete understanding of each relationship, interviews are conducted to find an insightful view of the model outcome. The result emphasises the strong relationship between engagement and organisational commitment, especially organisation engagement. Learning and development show contradicting results from the previous study and the outcome cannot clear the myth that higher engagement leads to better performance but it has shown a promising correlation between engagement and performance. The finding could help the management team and HR department better understate the priority for each antecedent which also links to the benefits of engagement that ultimately supports future HRM.

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Author Biographies

Pakawas Mangkang

Regional Centre for Manufacturing Systems Engineering, Chulalongkorn University, Thailand

Parames Chutima

Regional Centre for Manufacturing Systems Engineering, Chulalongkorn University, Thailand

Industrial Engineering, Faculty of Engineering, Chulalongkorn University, Thailand

The Academy of Science, The Royal Society of Thailand, Thailand

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Published In
Vol 26 No 8, Aug 31, 2022
How to Cite
[1]
P. Mangkang and P. Chutima, “The Impact of Organisational Climate on Employee Engagement and Performances in a Multinational Oil and Gas Exploration and Production Company in Thailand”, Eng. J., vol. 26, no. 8, pp. 53-66, Aug. 2022.