Title: Modelling causal relationships between employee perceptions of manager's leadership behaviour, satisfaction with HR practices, and organisational performance: the case of Greece

Authors: Anastasia A. Katou

Addresses: Department of Marketing and Operations Management, University of Macedonia, 540 06 Thessaloniki, Greece

Abstract: This paper tests reverse causality between employee perceptions of manager's leadership behaviour and organisational performance, through the intervening steps of employee satisfaction with HR practices and the employee attitudes of organisational commitment and job satisfaction, which is still relatively untested in a non-US/UK context such as Greece. Structural equation modelling was used to survey data from 97 Greek organisations (manufacturing, services, trade) and 689 responses from three groups of employees (senior managers, middle managers, other employees), to examine causal inferences. The study finds that leadership behaviour and HRM processes comprise two linked drivers that through organisational commitment and job satisfaction, improve organisational performance, which constitutes an indispensable condition in the reverse causality process of the relationship. The findings have implications for practitioners seeking to design HR practices and shape managerial activities that are viewed as strategies for improving organisational performance through organisational commitment and job satisfaction.

Keywords: leadership behaviour; HRM processes; organisational commitment; job satisfaction; organisational performance; Greece; employee perceptions; structural equation modelling; human resource management.

DOI: 10.1504/IJMOM.2012.046339

International Journal of Modelling in Operations Management, 2012 Vol.2 No.2, pp.173 - 203

Published online: 21 Aug 2014 *

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