Impact of Sustainable Human Resource Management on Employee Sustainable Performance

Abstract

Organizational sustainable performance is measured through the aggregate sustainable performances of its workforce. Hence, employee sustainability performance is the central to achieve organizational sustainability performance. Again, employee outcomes are to a greater extent influenced by human resource management (HRM) practices of organizations. Based on such prominent role of HRM, the current study examines the relationship between two dimensional sustainable HRM practices (competency development and employee relation) and three-dimensional employee sustainable performance (environmental, economic, and social) focusing on the perceptions of managers of private banking organizations of Bangladesh following the notion of the social exchange theory. The current research employs purposive judgmental sampling and gets responses from a sample size of 150. Questionnaire survey is used to collect data that are analyzed using partial least square-structural equation modeling (PLS-SEM). The findings indicate that sustainable HRM practices have significant impact on all three dimensions (economic, social and environmental performance) of sustainable performances. Therefore, this study recommends the organizations to use sustainable-focused HRM practices to achieve sustainable targets through enhancing employee sustainable performances. It is further recommended that future researcher can incorporate mediating and moderating variables to explain how sustainable HRM influences sustainable performances of employees.