The Mediating Role of Organizational Climate in the Relationship between Leadership Outcomes and Organizational Strategic Planning

Abstract

The topic of leadership has been studied in many different ways, yet there exists very limited information on the impact of leadership style and outcomes on organizational climate and organizational strategic planning within health-science centers. The current study investigated the mediating effects of organizational climate on the relationship between leadership outcome and organizational strategic planning. Participants were employees working in a health-science center. Participants completed an online survey of standardized questions with sections for leadership style and outcomes, organizational climate, organizational strategic planning, and demographics. Data were analyzed in aggregate. Leadership outcomes were significantly correlated with several dimensions of organizational climate. Dimensions of organizational climate that indirectly mediated the relationship between leadership outcomes and organizational strategic planning were investigated. The common dimensions of organizational climate that indirectly mediated the relationship between all leadership outcomes and organizational strategic planning were communication, planning and decision-making, and innovation. Organizational leaders in health-science centers should thus foster an organizational climate that promotes these three dimensions by improving internal communication, developing capabilities for decision-making, and establishing effective innovation processes as part of strategic planning. The study makes important contributions to the field of organizational leadership and shows how to establish a clear, meaningful strategic planning process to engage employees and ensure success.