The Moderating Role of Organizational Climate in Competency-Performance Relationship: A Study on Salespersons in Central India

The purpose of the paper is to investigate the relationship between competencies of salespersons (in organized retail outlets) and job performance and to test for the moderating role of organizational climate in that relationship. Data was collected using a questionnaire in a survey of consumers, supervisors and salespersons at various retail stores in Bhilai and Raipur, the tier-II cities of Chhattisgarh state in India, designed on the basic items relating to competencies, job performance and organizational climate. Hierarchical regression analysis of data from 245 respondents was used to test two hypotheses. The results show that salespersons’ competencies are an antecedent of job performance. The impact of competencies on job performance is stronger and more significant when the organizational climate is favorable. If it is unfavorable, competencies do not project significant effect on job performance. This study extends previous research by examining the moderating role of organizational climate. Further research is indicated to identify the other key moderators and mediators of the competencies in relation to salespersons’ job performance. A 24-item competency assessment scale is developed in the study that can be applied in practice to measure salespersons’ skill levels on various aspects and provide opportunity to managers to understand the skill gap and the way to fill them efficiently.