AN EMPIRICAL ANALYSIS OF HRM PRACTICES AND …AN EMPIRICAL ANALYSIS OF HRM PRACTICES AND...

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).


















































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.











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
















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 :-

















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




























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,















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
















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







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



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







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










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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