Relationship between aspects of human resource management practices and organizational performance : mediating role of ethical climate

The study investigated the mediating role of ethical climate (EC) on the relationship between five (5) dimensions of HRM practices; recruitment and selection (RS), training and development (TD), compensation practice (COMP), performance appraisal (PA), promotion opportunity (PRO), and organizational...

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Bibliographic Details
Main Author: Sabiu, Malam Salihu
Format: Thesis
Language:eng
eng
Published: 2017
Subjects:
Online Access:https://etd.uum.edu.my/7390/1/s900159_01.pdf
https://etd.uum.edu.my/7390/2/s900159_02.pdf
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Summary:The study investigated the mediating role of ethical climate (EC) on the relationship between five (5) dimensions of HRM practices; recruitment and selection (RS), training and development (TD), compensation practice (COMP), performance appraisal (PA), promotion opportunity (PRO), and organizational performance (OP) in the Nigerian public educational sector administration (PESA). The resource- based view (RBV) and the organizational culture theory (OCT) were used to underpin the study framework. The study was a cross sectional survey, employing the stratified sampling technique using 181 usable questionnaires from the directors of administration who represented the Nigerian PESA. The data analysis was conducted using the Partial Least Square Structural Equation Modeling (PLS-SEM 3.2.6). The study result supports 13 of the 16 hypotheses tested. The findings support 4 out of the 5 direct relationship hypotheses revealing empirical evidence on the significant relationships between RS, TD, PA, PRO and OP. The hypotheses between RS, TD, PA, PRO and the mediating variable EC are also statistically supported, but there is no evidence to support empirically the significant relationships between COMP and OP as well as COMP and EC. On the mediation relationships, the EC, as a hierarchical component model (HCM), mediates the relationships between RS, TD, PA, PRO and OP, but not the relationships between COMP and OP. This study contributes immensely to the current literature on how EC mediates HRM practices and OP relationships particularly in the African context where there are scant similar studies. The study also contributes to the literature on how to test the reflective-formative type of hierarchical component model, which is a very uncommon practice in the available literature. The findings suggest that the management of PESA can improve the HRM system through the proper implementation of effective HRM practices that will nurture EC and lead to OP. Finally, the study’s limitations, conclusion and suggestion for future research direction were discussed.