Innovation and Pressure to Produce Climates: Compositional Effects on Satisfaction and Exhaustion

Introduction: Research suggests that both shared (group-level) and psychological (individual- level) climates positively impact employee outcomes, enhancing job satisfaction, well-being, and engagement (James et al., 2008; Schneider et al., 2013). However, these climates have yet to be Examined simultaneously at both levels. Filling this gap can provide a nuanced understanding of how climate affects employee satisfaction and well-being, through psychological- and shared- climate effects. Since each facet of organizational climate may have distinct within- and between- level impact on outcomes, an additional issue to investigate is whether group-level climates may have an impact on employee well-being above and beyond the “mere sum” of individual perceptions. Aims: In line with the Job Demands-Resources (JD-R) theory, this study applies a multilevel approach to disentangle individual- and group-level effects of "pressure to produce" (demand) and " innovation; (resource) climates on affective job satisfaction and exhaustion. Specifically, the study (1) assessed the individual-level (within) and group-level (between) effects of psychological climates on satisfaction and exhaustion ,and (2) examined the contextual effects, or the difference between individual- and group-level climate perceptions. Methods: The sample included 787 employees nested within 86 work groups (average cluster size = 8.8). We used a multilevel covariate analysis approach, decomposing each climate variable into uncorrelated individual and group components to capture distinct effects. By disentangling climate perceptions as latent constructs, we aimed to investigate the contextual impact of & quot "pressure to produce; and & "quot; innovation " climates on satisfaction and exhaustion, providing insights beyond traditional multilevel regression. Findings and Conclusion: Results indicated that & " pressure to produce; negatively correlated with job satisfaction and positively with exhaustion, whereas & " innovation; showed the opposite associations at both levels of analysis. Contextual effects further supported that group climate impacts well-being beyond the sum of its parts, suggesting that interventions should address both individual and group climates to improve employee well-being comprehensively.