The mediating role of ethical organizational climate between HRM practices and HR outcomes in Public Sector of Saudi Arabia

Abstract

Understanding the main human resource management (HRM) practices is critical for an organisation success or failure. Despite the recent surge in HRM practices studies, little has been discussed about mediating role of organisational ethical climate between HRM practices and HR outcomes in public organisation of Saudi Arabia. The present study develops a theoretical framework grounded in HRM practices namely: training and development, performance appraisal, compensation and reward, organisation planning and HR outcomes include: employee's satisfaction and employees retention with mediating role of organisational ethical climate. A total number of 236 HR managers of public organisations participated in this research. The research model was empirically tested using structural equation modelling (SEM). The findings reveal that all four dimensions of HRM practices have significant influence on employee's satisfaction and employee's retention with mediation of organisational ethical climate. Finally, limitations and future research directions have been discussed.