Climate of Organization and Impact on Firms’ Performance Through Commitment: An Analysis Among Public and Private Banks in India

Authors:
P. Divakar, Nazia Sarfaraz, K. A. Harish, Narina Perveen, Humara Ahmad

Addresses:
Department of Management Studies, Hindustan College of Arts and Science, Chennai, Tamil Nadu, India.  School of Management Studies, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India. Department of Management Studies, Dhaanish School of Management, Dhaanish Ahmed College of Engineering, Chennai, Tamil Nadu, India.  Department of Management and Economics, Kunming University of Science and Technology, Kunming, Yunnan, China. Business School of UOP, University of Portsmouth, Portsmouth, Hampshire, United Kingdom.  

Abstract:

The objective of this study is to examine the 'commitment of enterprises' as a mediating factor between the corporate atmosphere and organisational performance within the Indian banking sector, with a particular emphasis on both public and private lending institutions. Additionally, the study aims to furnish the reader with pertinent information concerning the organisational climate and its impact on the comparison of the commitment and performance between public and private banks. Using the snowball sample method, 250 workers from different branches of public and commercial banks in India were asked to provide quantitative data. 131 employees are working for commercial banks and 119 for public banks. The data were also analysed using Smart-PLS 24.0, which showed that the organization's climate has a good effect on the commitment and performance of businesses in both the public and private banking sectors. The study's results are expected to greatly benefit both public and private banks by increasing employee dedication, which, in turn, will lead to better organizational performance.

Keywords: Organizational Climate; Commitment of Firm; Indian Banking Sector; Organizational Performance; Private Banks; Public Banks; Quantitative Data; Organizational Commitment.

Received on: 19/05/2025, Revised on: 24/07/2025, Accepted on: 11/09/2025, Published on: 05/03/2026

DOI: 10.69888/FTSOP.2026.000612

FMDB Transactions on Sustainable Organisational Practices, 2026 Vol. 1 No. 1, Pages: 23–33

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