Employee Engagement and Industrial Relations Climate in a Large Public Sector Organization

Based on an organization climate survey in a large PSU in India, an analysis was carried out through the structural equation model (SEM) using partial least square path model with XL STAT software to identify the dimensions which will have maximum impact on improving employee engagement parameters like intrinsic motivation, job satisfaction of employees as well as industrial relations climate. The results indicate that leadership behavior has a strong positive impact on employee engagement parameters, viz. intrinsic motivation, job satisfaction of employees, organization values, as well as industrial relations. Salary and benefits, in contrast, had not been found to have any impact on employees intrinsic motivation and job satisfaction, it has positive bearing on industrial relations, however.