Impact of Favoritism on Organizational Behaviour, Mediating Role of Psychological Climate in Manufacturing Sector (Islamabad/Rawalpindi)

Abstract

This study investigates the interplay between favoritism, psychological climate, and organizational behavior within the steel industry. Analyzing data from 195 respondents collected using close-end questionnaire through a cross-sectional study, the research reveals a significant negative relationship between favoritism and organizational behavior, emphasizing the adverse impact of favoritism on employee behaviors. Additionally, a negative and significant association is identified between favoritism and psychological climate, underscoring the importance of cultivating fair and inclusive workplaces. The study further establishes a positive connection between psychological climate and organizational behavior, highlighting the role of a conducive work environment in shaping employee behaviors. A noteworthy finding is the partial mediation role of psychological climate in the relationship between favoritism and organizational behavior. This suggests that while favoritism directly influences organizational behavior, a significant portion of its impact is mediated by employees' perceptions of the psychological climate. Practical implications involve addressing favoritism to enhance organizational behavior, creating fair and inclusive workplaces, and investing in positive psychological climates.