ISSN: 2249-7196
IJMRR/Oct. 2016/ Volume 6/Issue 10/Article No-12/1463-1481
Malam Salihu Sabiu et. al., / International Journal of Management Research & Review
*Corresponding Author www.ijmrr.com 1463
AN EMPIRICAL ANALYSIS OF HRM PRACTICES AND ORGANISATIONAL
PERFORMANCE RELATIONSHIP IN THE CONTEXT OF DEVELOPING
NATION: THE MODERATING EFFECT OF ETHICAL CLIMATES
Malam Salihu Sabiu*1
, Tang Swee Mei1, Mohd Hasanur Raihan Joarder
1
1School of Business Management, Universiti Utara Malaysia, Malaysia.
ABSTRACT
The purpose of this study is to examine the moderating effect of ethical climates (ECs) on the
relationship between HRM practices and organizational performance (OP). Based on the
Resource Based View (RBV) perspective, HRM practices are the best internal resources
influencing performance in organization. Some scholars used individual practice while others
used bundles. Despite these studies, however, few studies have attempted to consider the
influence of HRM practices on organizational performance. Even if any, they have reported
mixed findings; therefore, a moderating variable is suggested. This paper proposes ethical
climates (ECs) as potential moderator on the relationship between HRM practices and
organizational performance to enhance the relationship. A quantitative survey method was
used; the data were collected from the heads of department in selected ministry of education
Nigeria. A total of 105 questionnaires administered, 81 questionnaires were collected. PLS
SEM was used for the data analysis. Based on the statistical findings, recruitment and
selection and training and development were found to be significantly related to organisation
performance. While ethical climates found to moderate on the relationship between
recruitment and selection and training and developments and OP. The study also suggested
for future research.
Keywords: HRM practices, recruitment and selection, training and development, ethical
climates, organizational performance.
1. INTRODUCTION
According to Osborne, Radnor, and Nasi (2013), public sector of different countries are
shaped by many factors, but they share common challenges. For instance, the issue of poor
performance makes public sector management more complex than it is in the private sector.
Under performance issues give opportunity for others to study factors that leads to
organizational performance more specifically in educational sector. In the present world,
education is extensively perceived to be the main system for advancing nation economic
development (Tilak, 2003) for African nations, for education is certain if the continent has
any hope to wipe out of poverty (Bloom, Canning, & Chan, 2006) and for Nigeria
specifically, education gets to be unavoidable for the nation to stay alive and recapture her
lost greatness being it the Africa's most populace and the third wealthiest African nation as
far as economy (WorldBank., 2010). Generally, education is essential and basic to human and
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global societal development which in turn makes its recipient self-sustaining and self-reliant.
The degree of development of any society has been linked to the point of the level of
education of its public. In this respect, the establishment of higher education institution
globally with task of promoting the life of the mind stock and transmit generalized
knowledge, culture, sophisticated enterprise, and ethical origin of conduct, can never be
toyed with if there has to be sustainability and national development (Uwazie, 2003).
However, organizational performance (OP) is considered to be the consequences of adapting
suitable management method. OP can be measured using a numeral of criteria’s; includes
efficiency, effectiveness, productivity and growth (Man, 2009). Similarly, OP encompasses
the proficiency of an activity, ability to carry out an activity at the minimum cost possible. It
is also include effectiveness whether the target set for the entire business are being
accomplished (Ali, Ali, & Raza, 2011). Again, OP is about the procedure in which
organisational achievement is measured concerning the quality it makes and convey to
internal and external users (Antony & Bhattacharyya, 2010).
A number of factors have been considered as factors influencing OP, includes; organisational
support (Randall, Cropanzano, Bormann, & Birjulin, 1999; Rhoades & Eisenberger, 2002),
organisational politics (Ogbonna & Harris, 2000; Randall et al., 1999; Vigoda-Gadot &
Kapun, 2005),environment (Chandrasekar, 2011), organisational culture (Hartog & Verburg,
2004; Homburg & Pflesser, 2000; Scott, Mannion, Marshall, & Davies, 2003; Shahzad,
Luqman, Khan, & Shabbir, 2012), organizational learning (Aragón, Jiménez, & Valle, 2014;
García-Morales, Jiménez-Barrionuevo, & Gutiérrez-Gutiérrez, 2012; Jiménez-Jiménez &
Sanz-Valle, 2011; Tippins & Sohi, 2003). While other scholars considered HRM practices
includes; (Azhdar Karami, Samira Saheb, & Sarani, 2015; Karami, Sahebalzamani, & Sarabi,
2015; Khawaja, Azhar, & Arshad, 2014; Moideenkutty, Al-Lamki, & Sree Rama Murthy,
2011; Obi-Anike & Ekwe, 2014; Suthar, Chakravarthi, & Pradhan, 2014; Theriou &
Chatzoglou, 2014; Trehan & Setia, 2014) among others. In general, while these
aforementioned studies help us to understand the factors influencing OP, however, literature
indicates that less attention has been paid to the HRM practices and OP more specifically in
public sector . Amongthe few, there are mixed reporting and inconsistency findings. Some of
these studies includes (Abdullah, Ahsan, & Alam, 2009; Akhtar, Azeem, & Mustafa Mir,
2014; Akhtar, Ding, & Ge, 2008; Moideenkutty et al., 2011; Phelan & Lin, 2001) among
others. Despite the fact that, Resource Based View (RBV) highlights that internal factors
leads to competitative advantage and performance in organisation.
Baron and Kenny (1986), highlights that if there is inconsistencies in previous findings
moderating variable is suggested to stimulate the relationship. The present study proposed
ethical climates (ECs) as moderator to test the moderating effect of ECs empirically between
HRM practices and OP. According to Victor and Cullen (1987) ECs is all about sharing
perceptions of what ethically correct behaviour is and how ethical issues should be handled in
the organization. Furthermore, ECs signifies the organization’s, procedures, policies and
practices on ethical issues, and it influences member’s attitudes and serves as a reference for
employee behaviour, at the same time, changing the unethical behaviour of employees in an
organization through the help of ECs may have significant impact on OP and entire system
(Arulrajah, 2015; Schluter, Winch, Holzhauser, & Henderson, 2008).
Malam Salihu Sabiu et. al., / International Journal of Management Research & Review
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Therefore, the objective of this paper to be examine the moderating effect of ECs on the
relationship between HRM practices (recruitment and selection and training and
development) and OP. The paper is divided into five parts. The first part is introduction,the
second part is literature reviewwhich includes, the underpinning theory. Part three is
methodology which comprises,the study population; sample; measurement and techniques for
data analysis, while part four is statistical analysis and result which includes, research
framework; measurement model; structural model; and the final part is discussion and
conclution.
2. LITERATURE REVIEW
OP is used generally as dependent variable in academic literature today, and yet, at the same
time, it consider as one of the most influential and essential constructs that encountered so
much attention by number of researchers (Shook, 2005).That is the reason scholars and
practitioners give much consideration regarding find determinants of OP and the mechanisms
that through which a few variables can influence, negatively or positively the performance in
an organization. (Jing & Avery, 2011).
Prior empirical studies were conducted using a number of HRM practices to determined OP.
For instance, the study carried out recently by Karami et al. (2015) in Asian context
specically in Iran banking industry usinga number of HRM practices includes; training and
development, teamwork, performance appraisal, HR planning, and employment security as
mediators on the relationship between cost reduction, innovation, quality enhancement and
OP, the used 220 sample a quantitative approach SPSS 17v were utilized in the data analysis,
result shows that all the HR practices used are significant related to OP. Similarly, the study
conducted by Akhtar et al. (2014) in Pakistan higher education , used (7) seven HRM
practices that is staffing, training, compensation, performance appraisal, grievances
procedure, empowerment and promotion with 50 sample used SPSS techniques for data
analysis, result of the study revealed that all variables are found positively significant except
promotion. Again, another study by Ko, Hur, and Smith-Walter (2013) in Western context
specifically in USA public sector organisation used selection, training and development,
rewards, performance appraisal, communication, empowerment, participation, and work
attitudes as moderator on the OP relationship, the study used SPSS technique with 1,114
samples, result shows that the practices are indirectly related to OP. Moreover, the study of
Moideenkutty et al. (2011) look different where they used High involvement HRM practices
as one, on the relationship between HRM practices and organizational performance in Oman,
87 samples used through SPSS techniques, the statistical analysis result indicates that high
involvement HRM practices has positive relationship with subjective organizational
performance and objective measure of performance. Additionally, Chow, Teo, and Chew
(2013) carry out one study in Asian context specifically in Singapore companies 190
samples and SPSS techniques were used, the variables used includes, involvement,
inducement, and investment on OP relationship, result explained that involvement found
positive significant related to OP, while inducement and investment found with indirect
effect.
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However, other ealier studies tested the moderating effect of some variables on the HRM
practices, OP relationship to clear the doubt in the literature, but still the moderation did not
supported (see, Triguero-Sánchez, Peña-Vinces & Sánchez-Apellániz, 2013; Vanhala &
Stavrou, 2013). However, some of the variables used in testing the moderating effect on the
relationship between HRM practices and OP are not capable of moderating. However, this
study considered ECs as potential moderating variable in the relationship between
recruitment and selection and training and development and OP. In addition, this paper
chooses to study HRM practices as the best internal factors that influence performance in
organisation. According to Wernerfelt (1984) RBV theory,asserted that human capital asset
creates competitive advantage and improve performance through employees behavior.
Therefore, employees can perform through effective utilization of internal resources base on
HRM best practices.
2.1 HRM practices and organisational performance
The practices to be discussed in relation to OP are recruitment and selection and training
and development.
2.1.1 Recruitment and Selection and Organizational performance
As a fundamental HRM practice, recruitment is a procedure of discovering and securing the
right candidates into an organization. Essentially, the procedure includes looking for and
drawing in the most qualified candidates utilizing a few achievable recruitment approaches
(Tong, 2009), while selection is the process of settling on the decision of the most suitable
candidate from the group of candidates enrolled to fill the appropriate job position (Opatha,
2009). Similarly, recruitment and selection are considered as the fundamental HRM practices
that facilitate the obtaining of applicants into the organization. It is actually fundamental
practice that muddles together the organization with existing positions with suitable
candidates for a possible future relationship (Rynes & Cable, 2003).
Many empirical studies were carried out and found recruitment and selection as strong
predictor of OP. For example, one study conducted by Alsughayir (2014) in Asian context,
specifically in Saudi Arabian organizations with 270 samples got 92.9% respond rate, SEM
techniques were used in the data analysis, the result found recruitment and selection
positively significant to OP. Similarly, another study by Beh and Loo (2013) in Asian
context, specifically in Malaysian insurance companies 312 samples were used in SPSS tool
for multiple regression analysis considered in testing the relationship between recruitment
and selection and OP, result confirmed that recruitment and selection positively related to
OP. Again, the study conducted by Chand (2010) in Indian hotel a quantitative approach with
total of 439 samples using SPSS technique, result of the study revealed that recruitment and
selection were found positively related to performance.
However, the study of Tan and Nasurdin (2011) in Asian context particularly in malaysia
reported contrary to the above aforementioned studies, the used large manufacturing sectors,
with 171 sample. The regression analysis result shows recruitment is low and insignificant
related to organisational innovation and performance. Despite many evidences in Asian
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countries literature is lacking on the relationship between recruitment and selection and OP in
African countries particularly in Nigeria. Therefore, this study proposed the following
hypothesis :-
Hypothesis 1: There is significant relationship between recruitment and selection and OP
2.1.2 Training and Development and Organisational performance
Training and development practice is considered an important component of human resource
management, its plays a vital role for increasing talent, flexibility, work adaptability,
motivating and sustaining necessary competence of employees. Similarly, training and
development is the vibrant area of HRM, and considered the fastest growing part of personnel
activities (Tai, 2006; Vlachos, 2008). Jauhar, Abdul Ghani, Joarder, Subhan, and Islam
(2015), argued that training and development considered important because, most of the
country used it to develop the skilled and intellectual of its personnel to achieve both
employee and OP. One of main focus of training and development in an organization
improve individual, groups, team, and organizational, effectiveness and efficiency (Kraiger
& Ford, 2007).
Prior studies established that training and development is significantly related to OP. For
instance, one studies by Arshad, Azhar, and Khawaja (2014), in Asian context specifically in
Pakistan organization 50 samples were used using SPSS techniques, the regression and
correlation analysis result shows that training and development as one with the highest
predictor of performance. Similarly, another study conducted by Triguero-Sánchez et al.
(2013) in European context specifically in Spanish small and medium enterprises 102
samples used in second generation analysis techniques (PLS SEM), the result revealed that
training is found positively significant to OP. Again, Abdullah et al. (2009). Carried out
study in Asia, Malaysia in particular, private firms were the targeted population of the study
with 153 respondents, SPSS tool were utilized in quantitative analysis, and the regression
result explained training and development is positively related to OP.
However, some studies report contradicting findings in the aforementioned studies. Some
studies have shown that there are indirect and insignificant relationship between training and
OP. For example, a study by Aragón et al. (2014) in European context specifically Spanish
firms, used 1600 samples in quantitative analysis, the result shown that training has indirect
effect on performance, its became significant through the organizational learning. So also, the
study of Osman, Ho, and Carmen Galang (2011) in Asian context Malaysia 233 sample used
in the data analysis, the regression analysis result explained that training and development is
not significantly related to OP and the study recommended for moderation. Furthermore,
Vlachos (2008) carried out research in European context, specifically in Greece private
organizations, 372 questionnaires distributed, but only 71 were returned and used in the
analysis that is 19.1% response rate the regression analysis result shows that training has
indirect relationship with the performance. Despite several evidences in European and Asian
countries literature is lacking on the relationship between training and development and OP
in African countries particularly in Nigeria. Therefore, this study proposed the following :-
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Hypothesis 2: There is significant relationship between training and development and OP
2.1.3 Ethical climates and Organizational Performance
According to Victor and Cullen (1987). ECs can simply be defined as the sharing opinions of
what ethically correct behaviour is and how ethical issues should effectively handle. ECs
denotes how an organization responds to ethical issues. ECs also considered as determining
the right or wrong of what individuals trust and shapes their ethical decision making and
conduct (Johnson, 2008). Similarly, Schluter et al. (2008) argued that ECs represents the
organization’s policies, procedures and practices on ethical issues, and it influences
employees attitudes and behaviour and serves as a reference for employee behaviour.
Likewise, ECs play a fundamental role in improving OP. It is indeed essential that,
organizations set ethical principles for its personnel alongside providing an atmosphere that
promotes ethical behaviour, trust, capable leadership, commitment and creates workforce
value to improve OP (Hijal-Moghrabi, Sabharwal, & Berman, 2015).
However, prior studies indicated that there has been a growing concern about the incidence of
unethical behaviours within the public sector organization. It is created and has exposed a lot
of issues like, abuses, scandals, mismanagement, poor service delivery lack of performance,
and corruption. Equally, changing the unethical behaviour of employees in an organizational
with the influence of ECs may have a significant impact on OP and entire system (Arulrajah,
2015). So, organizational ethics are considered to be one of the most commanding factor that
influence organizational success as well as survival (Bartels, Harrick, Martell, & Strickland,
1998; Buller & McEvoy, 2000). In general, ECs encourages and enforces the members to
acquire appropriate ethical behaviour within organization. In return, ethical behaviour of the
members is fundamental to achieve best organizational objectives and performance (Brown
& Stilwell, 2005; Winstanley & Hartog, 2002). Numerous studies were conducted by
different number of scholars and established the relationship between ECs and OP. For
example, one study recently by Hijal-Moghrabi et al. (2015), in Western context, specifically
in four states from USA, states includes, Washington, Oregon, Utah and Florida 1,695
respondents engaged in quantitative research, ECs is found positively related to OP. Another
study, study also by Bowman and Knox (2008) in America, managers in public organization
were the targeted population, result revealed that ECs positively predict OP. Others studies
includes; (Haines, 2004; Zajac & Al-Kazemi, 2000). However, RBV, highlighted that human
resource systems can directly influence OP with the help of resources that are involved
woven in organization’s history and culture, like of ECs (Barney, 2001; Reed & DeFillippi,
1990; Wright & McMahan, 1992). This study hypothesizes that :-
Hypothesis 3: There is significant relationship between EC and OP
Furthermore, literature indicates that studies were carried out to test the moderating effect of
ECs in the various field of academics. Recently, Nafei (2015) conducted one study in African
context specifically in industrial companies with 295 samples representing 79%, employed
EC to moderate the relationship between job satisfaction (JS) and organizational commitment
(OC), the Multiple regression analysis result shown that ECs moderates the relationship
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between job satisfaction (JS) and organisational commitment (OC).The study also
recommend that ECs should be considered further studies, because it is one of the key
sources leads to competitive advantage in organization considering the positive relationship
found between the JS and OC. Similarly, a study by Zehir, Müceldili, and Zehir (2012) in
Asian context specifically in Turkish large companies with 192 samples, study tested the
moderating effect of ECs between the JS and OC, result revealed that ECs moderate the
relationship between JS and C including the dimensions of JS. However, some of the studies
between recruitment and selection, training and development and OP reported mixed finding
includes, (Abdullah et al., 2009; Akhtar et al., 2014; Akhtar et al., 2008; Moideenkutty et al.,
2011; Phelan & Lin, 2001). According to Baron and Kenny (1986), if there is inconsistencies
in the findings moderating variables is suggested. Based on the suggesting of Baron and
Kenny, this study proposed ECs as moderating variable on the relationship between HRM
practices (recruitment and selection, training and development) and OP. Despite the number
of evidences in America, Africa, Asian countries literature in West African context on the
relationship between ECs and OP is scarce, particularly in Nigeria. Therefore, this study
proposed the following :-
Hypothesis 4: ECs moderates the relationship between recruitment and selection and OP.
specifically; the relationship will be stronger for organization with higher ECs than those
with lower ECs.
Hypothesis 5: ECs moderates the relationship between training and development and OP
Specifically; the relationship will be stronger for organization with higher ECs than those
with lower ECs.
2.2 Underpinning Theory
Resource- Based view (RBV) is the underpinning theory in this study. The main focus is how
organizational resource are developed and affect its performance (Kamyabi & Devi, 2012).
The RBV's improvement happened somewhere around 1984 and the mid-1990's. The RBV
argued that organizations have resources, a subset of which empowers them to achieve
competitive advantage, and a subset of those that prompt predominant long haul performance.
RBV highlighted that human capital asset generates competitive advantage and improve
performance through employees behavior. Therefore, employees can perform through
effective utilization of internal resources base on HRM best practices. Similarly, as cited in
Manroop, Singh, and Ezzedeen (2014) in RBV perspective stated that ECs has been linked to
add valued to HRM practices and OP in terms of playing a vital role to attain organizational
success, emphasizes on ECs considers having strategic value for organization and how
human resource systems may influence that value. In general, RBV collected works points
out that organization could obtain resources as the basis of unique performance that are
valued, rare, difficult to imitate and non- compatible with other resources (Barney, 1991;
Conner, 1991).
3. METHODOLOGY
A structured questionnaire was used in collecting the data from heads of department in the
ministry of education Sokoto, Kebbi, Zamfara Nigeria. The study used stratifying sampling,
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stratified the respondents into three strata, and determines from each stratum the number of
respondents that represent it from the total population, choosing disproportionate sampling is
considered appropriate as it allowed the stratum with large number of departments to have
high number of representation over stratum with small number of departments (Sekaran &
Bougie, 2013).
Similarly, items used in the questionnaire were adapted from different scholars, with few
modifications includes; OP items from Brewer and Selden (2000), ECs items adapted from
Elçi, Şener, and Alpkan (2013), Hijal-Moghrabi et al. (2015), originated from Victor and
Cullen (1987), recruitment and selection items adapted from Demo, Neiva, Nunes, and
Rozzett (2012), while training and development items adapted from Lam, Chen, and
Takeuchi (2009) all in 5-likert scale. 105 questionnaires were administered 81 copies
represent 85.5% returned and used in the analysis. SPSS 22v and PLS SEM were used in the
data analysis.
4. STATISTICAL ANALYSIS AND RESULT
An initial test of validity and reliability using smart PLS 2.0 was conducted. The model that
involved recruitment and selection, training and development, ECs and OP.
Fig. 1: Research Framework
4.1 The Measurement Model
Constructs validity and reliability were evaluated and confirmed in an attempt to determine
the accuracy of the measurement; convergent validity as well as the discriminant validity
were run respectively. After calculating PLS algorithm the first thing to consider is indicators
reliability. According to Hulland (1999), any item indicator with loading less than 0.4 should
be deleted based on this justification the model is filtered by deleting all the items that are
below 0.4. For instance, the Dependent variable OP is run with eleven 11 items but 5 out of
11 have been deleted includes, OP1, OP2, OP9, OP10, and OP11 other items deleted in ECs
includes, ECs4, ECs8, ECs8, ECs9, ECs10, ECs11, ECs12, and ECs13 also, in RS (3) it elms
were deleted includes, RS1, RS5, and RS6 while in TD no item was deleted, all the items
loading meet the requirement. Furthermore, the composite reliability and cronbach alpha for
internal consistency reliability of the entire construct meet the requirement range from 0.7
HRM PRACTICES
Recruitment and Selection
Training and Development
ORGANISATIONAL
PERFORMANCE
ETHICAL
CLIMATES
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and 0.8 respectively recommended by Hair, Ringle, and Sarstedt (2011), and Bagozzi and Yi
(1988). Similarly, the average variance extracted (AVE) for convergent validity of all the
constructs are considered accepted as all the AVE meet the minimum threshold of 0.5 as
recommended by Bagozzi and Yi (1988). In conclusion, to justify the discriminant validity
the square root of AVE is compared to correlation square of the interrelated variables of
concern constructs which indicates adequate discriminant validity. Table 1 and Table 2
present factor loading present and discriminant validity.
Table 1: Factor loading
Items Factor Loading Composite
Reliabilty
Cronbach's Alpha AVE
EC1 0.667
EC2 0.732
EC3 0.677
EC5 0.857
0.868
0.820
0.525
EC6 0.760
EC7 0.632
OP3 0.548
OP4 0.716
OP5 0.842
0.872
0.824
0.543
OP6 0.910
OP7 0.821
OP8 0.485
RS2 0.702
RS3 0.742
0.772
0.674
0.531
RS4 0.741
TD1 0.769
TD2 0.816
TD3 0.453
0.854
0.792
0.501
TD4 0.788
TD5 0.706
TD6 0.651
Table 2: Discriminant validity
Variables EC OP RS TD
EC 0.725
OP 0.399 0.737
RS 0.306 0.539 0.728
TD 0.683 0.496 0.434 0.708
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Fig. 2: Measurement Model
4.2 Structural Model
After satisfying the condition of the measurement model (construct validity and reliability), is
followed by hypothesis testing, evaluation of R-square, effect size and predictive relevance
through running PLS algorism and Bootstrapping in smart PLS 2.0 version.
Table 3: Path Coefficient and Hypotheses
Hypothesis Beta Standard
Error
T Statistics P-value Decision
ECs -> OP 0.1059 0.1558 0.6796 0.50 Not supported
RS -> OP 0.3978 0.1208 3.2935 0.00 Supported
TD -> OP 0.2515 0.1101 2.2852 0.02 Supported
Fig. 3: Structural model
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4.2.1 Testing the Moderating effect of Ethical Climates
This study applied a product indicator approach using PLS SEM to identify and estimate the
strength of the moderating effect of ECs on the relationship between HRM practices
(recruitment and selection, training and development and OP (Chin, Marcolin, & Newsted,
2003; Henseler & Fassott, 2010). Table 4 shows that ECs is found significantly related and
moderate the relationship between recruitment and selection and OP at 5% significance level.
At that point, ECs found insignificant and did not show any interaction between training and
development and OP.
Table 4: Moderating hypotheses
Hypotheses Beta Standard
Deviation
Standard
Error
T
Statistics P-Value Decision
RS * ECs ->
OP -0.2604 0.1385 0.1385 1.8802 0.06 SUPPORTED
TD * ECs ->
OP -0.1206 0.1975 0.1975 0.6106 0.54
NOT
SUPPORTED
Fig. 4: Moderating effect
Therefore, it can be established that ECs moderates the relationship between recruitment and
selection and OP at 5% significance level, 1.8802 1-tail. Statistically the moderating effect is
significant, hypothesis supported. While there is no moderating effect on the relationship
between training and development and OP which is statistically insignificant
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4.3 Evaluation Of Predictive Relevance Of The Model, Effect Size, And R2
In PLS SEM, across-validated redundancy measure is used in evaluating the predictive
relevance of this research model by running PLS blindfolding procedure. According to Chin
(1998), Geisser (1974), and Stone (1974), any model with Q2 above 0 has predictive
relevancy, in line with this assertion this model has 0.1964 which above the threshold.
Similarly, Chin (1998), provided criteria of judging research model predictive relevance by
identifying some values which includes; i) 0.02 is small; ii) 0.15 is medium; and ii) 0.35 is
Large. Therefore, based on the views from Chin (1998); Geisser (1974), and Stone (1974),
the research model has medium predictive relevance.
Fig. 5: Predictive Relevance
5. DISCUSSION AND CONCLUSION
The objective of this study is to examine the moderating effect of ECs on the relationship
between HRM practices (recruitment and selection (RS), training and development (TD) and
OP. The statistical result of the study revealed that three of the hypotheses were supported,
while two hypotheses were rejected. The first hypothesis, ECs–>OP relationship is not
significant (β = 0.1059, t = 0.6796, P-Value=0.50), while the second hypothesis RS –OP is
positively significant related (β = 0.3978, t = 3.2935, P-Value=0.00), this study is consistent
with the previous finding (see, Alsughayir, 2014; Beh & Loo, 2013; Chand, 2010) which is
all positively significant. Similarly, third hypothesis, TD–>OP the relationship found
significant (β = 0.2515, t = 2.2852, P-Value=0.02), this study is consistent with the prior
studies conducted in Asian, European context by Arshad et al. (2014), Triguero-Sánchez et
al. (2013) and Abdullah et al. (2009) they found training and development positively related
to OP. Therefore, the two HRM practices recruitment and selection and training and
development have significant influence on OP. Furthermore, fourth hypothesis supported the
argument that ECs moderate the relationship between RS and OP, while the fifth hypothesis
was rejected were ECs found not statistically significant on the relationship between TD and
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OP. Therefore, RS *ECs->OP is significant at (β = 0.2604, t = 1.8802, P-Value=0.06), while,
TD*ECs->OP is not significant at (β = 0.1206, t = 0.6106, P-Value=0.54). Similarly, the R2
included is 0.382 as the two HRM practices (recruitment and selection, training and
development) contributed 38% to the model while the remaining 62% will be in the hands of
other variables that are not included in the model. Similarly, effect size values of the
constructs are, 0.1958, 0.0405, 0.0129 which are medium, small and none as recommended
by Cohen (1988).
The contribution of this study is both in theory and practice, in the theoretical part of this
study is the extension of the existing literature about HRM practices (RS and TD). Moreover,
this study is among the few studies that examine the moderating effect of ECs on the
relationship between HRM practices (RS and TD) OP. While on the other hand, practically,
finding of this study will offer an important insight to academics, policymakers and
practitioners into the significant effect of ECs on HRM practices and OP particularly in
Nigerian educational sector. ECs can help in influencing the organizations in achieving
performance. Finally, this study suggested that large sample and other practices like
compensation, performance appraisal, promotion opportunity should be use for the future
research using PLS-SEM in order to re-validate the model which we intent to carry out in the
near future.
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