HRM practices and the multifaceted nature of organization performance

Abstract

PurposeThe purpose of this paper is to investigate the impact of human resource management (HRM) practices on the performance of Jordanian banks as determined by using the balanced scorecard (BSC) performance measurement system and by testing the effect of organizational citizenship behavior (OCB) as a possible mediator variable.Design/methodology/approachA questionnaire was used to collect data from the study sample, which consisted of 230 managers working in various banks across Jordan. The study hypotheses were then tested using SPSS and AMOS software by applying structural equation models (SEMs).FindingsThe data set revealed that the use of HRM practices had a significant impact on both employee OCB and bank performance in all the four dimensions of the BSC (financial, customer satisfaction, internal processes, learning and growth). In addition, OCB was found to have a positive significant impact on organizational performance. Moreover, results indicated that OCB partially mediates the relationship between HRM practices and organizational performance.Originality/valueThe authors examine the impact HRM practices on the organization performance through the mediation role of OCB. The results obtained from this study extend the existing literature by providing evidences from non-western country such as Jordan. Based on the findings, the theoretical and practical implications of the study as well as limitations and suggestions for future studies are also discussed.