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An Empirical Investigation of the Relationships among Climate, Capabilities, and Unit Performance

Michael J. Tews

Cornell University

For the current study, the authors examined the relationships among two dimensions of organizational climate and several indices of individual and unit-level effectiveness. Specifically, the article proposes that an organization's service and training climate would be related to employee capabilities—operationalized in terms of frontline service capabilities and managerial support capabilities—and that such capabilities would be related to unitlevel measures of employee turnover and sales growth. Using survey and operational data from 201 management and frontline staff members in 22 units of a national restaurant chain, the results from correlation and regression analyses generally supported the proposed relationships. This study replicates and extends previous research and provides a foundation for future conceptual development and empirical work in this research area.

Key Words: HR strategy • climate • employee capabilities • unit performance

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