Perceived Organisational Climate and Employee Performance in the Hospitality Industry in Ghana: A Case of Mensvic Grand Hotel, Accra

Abstract

In today’s competitive business environment, organisations must attract and retain talent to achieve sustainable performance. Employee performance is critical to organisational success, and while rewards and support systems are essential, organisational climate, the shared perception of the work environment, plays a key role in shaping employee behaviour and effectiveness. A favourable climate enhances engagement and productivity, while a negative climate leads to disengagement. Organisational climate, defined as employees' shared perceptions of their work environment, is a critical determinant of workplace behaviour and performance (Taştan & Güçel, 2014). Research has long established the link between organisational climate and performance, but most studies have focused on developed economies. There is a research gap in Ghana’s hospitality sector, where challenges such as employee retention and service quality are prevalent. This study addresses that gap by examining the impact of organisational climate on employee performance at Mensvic Grand Hotel in Accra, providing insights for both academic and practical applications in the industry.

This study assessed the impact of perceived organisational climate on employee performance at the Menzies Grand Hotel in Accra, Ghana. A descriptive cross-sectional survey was employed. A convenience sample of 40 employees completed a structured questionnaire measuring organisational climate dimensions (structure, motivation, communication, identity, reward, recognition, affiliation, support) and employee performance. Data were analysed using descriptive statistics, correlation, and regression analysis. The predominant organisational climate was identified as "Open" (Mean=2.12, SD=0.85). Among eight climate dimensions, only Structure (Mean=1.33) and Affiliation (Mean=1.58) were positively perceived.

A strong positive correlation was found between overall organisational climate and employee performance (r = 0.81, p = 0.016). Regression analysis indicated that Reward (β=1.24, p<0.001), Support (β=0.51, p<0.001), and Recognition (β=0.55, p<0.001) had significant positive effects on performance, while Structure and Identity had adverse effects. Perceived organisational climate significantly influences employee performance in the hotel. An open, supportive climate characterised by fair rewards, recognition, and strong interpersonal affiliation enhances performance. Management should prioritise improving motivational, communication, and reward systems to foster a more comprehensive, favourable climate.