Purpose: The study examines the influence of labour
relations policies on organizational culture and employee performance in
Botswana’s private sector. It specifically investigated the mediating roles of
organizational culture and employee trust and commitment to understand how
policies translate into improved workplace outcomes.
Methodology/Design: A quantitative research
approach was employed using a cross-sectional survey of 300 employees from
diverse private sector organizations. Data were analyzed using Structural
Equation Modeling (SEM) to assess direct and indirect relationships among
labour relations policies, organizational culture, employee trust and
commitment, and performance.
Findings: Results revealed that labour relations policies
significantly influenced organizational culture (β = 0.68, p < 0.001) and
employee performance (β = 0.36, p < 0.001). Organizational culture
positively influenced employee performance (β = 0.54, p < 0.001) and mediated
the relationship between policies and performance (indirect β = 0.37, p <
0.001). Employee trust and commitment also mediated the effect of policies on
culture (indirect β = 0.41, p < 0.001).
Implications: The study provides
practical guidance for managers and HR practitioners in Botswana’s private
sector to design and implement labour relations policies that foster trust,
commitment, and a supportive culture, ultimately enhancing employee
performance.
Originality/Value: The study integrates Social
Exchange Theory, Organizational Culture Theory, Systems Theory, and Human
Relations Theory to provide a holistic understanding of how labour relations
policies affect performance through cultural and relational mechanisms in an
African private sector context.
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