Organisational Climate and Employee Performance within the Hospitality Industry: Evidence from Cape Coast Metropolis

Abstract

The study examined the effects of organisational climate on the performance of employees at hotels in Cape Coast, Ghana. It specifically investigated the individual effects of employee flexibility, employee training, employee welfare and employee innovation on employee performance. The study employed a quantitative approach and explanatory design, and it is informed by the job demand-resource theory. A dataset of 139 was obtained via structured questionnaires from 153 employees of one-star-rated hotels in Cape Coast. Data processing was done with the IBM Statistical Package Social Science and the SmartPLS software and analysed with the PLS-SEM technique. The study found that the organisational climate dimensions significantly and positively affected the performance of the employees of the hotels in the Cape Coast Metropolis. It was also found that employee training has the highest significant effect on employee performance. The study concluded that organisational climate plays a critical role in strengthening the performance of employees in the hotels. It was recommended that the management of the hotels should pay critical attention to the dimensions of organisational climate used in this study to ensure that their employees' welfare, innovation, flexibility and training levels are improved to enhance employee performance.