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This study empirically examines the relationship between the perceived employee involvement (EI) climate and organizational effectiveness. Using a sample of insurance companies, results indicate that organizations with high levels of perceived EI climate lead to organizational effectiveness as measured through financial performance, turnover rate, and workforce morale. Implications of the results for research and practice are discussed. © 2005 Wiley Periodicals, Inc.
Riordan et al. (Sat,) studied this question.