Influence of Organisational Involvement and Service Climate on Organisational Performance in Sipcot Industries at Tamilnadu

Abstract

In the evolving landscape of industrial performance, intangible organizational factors such as employee involvement and internal service climate have emerged as vital contributors to productivity and sustainability. This study investigates the influence of organizational involvement and service climate on organizational performance—measured through employee satisfaction, intent to turnover, and safety motivation—within SIPCOT industries in Tamil Nadu, India. Drawing upon a sample of 440 employees from Cuddalore, Perundurai, and Hosur industrial estates, the research employed a structured questionnaire and applied Structural Equation Modelling (SEM) to evaluate the hypothesized relationships. Results reveal that involvement of HR practices significantly enhances all three organizational outcomes, while service climate positively affects satisfaction and safety motivation but not turnover intention. Interestingly, coworker support consistently predicts better employee outcomes, whereas management support showed no significant effect. These findings align with recent global studies on high-involvement HRM systems and service-oriented organizational behavior, while also highlighting unique contextual dynamics within Indian industrial zones. The study offers practical insights for industrial managers and policymakers to prioritize comprehensive HR strategies, foster collaborative work environments, and rethink managerial engagement to enhance organizational effectiveness and workforce well-being.