Relationship between human resource management practices, ethical climates and organizational performance, the missing link

Abstract

Purpose The purpose of this paper is to investigate the influence of human resource management (HRM) practices, (recruitment and selection) and organizational performance (OP) through mediation role of ethical climates (ECs) in Nigerian educational agencies. Design/methodology/approach Quantitative data were collected from 181 educational agencies represented by director of administration; SmartPLS-SEM was used in testing the relationship, as well as testing the mediating effect of ECs. Findings The results revealed strong support for the mediating role of ECs on the relationship between HRM practice (recruitment and selection) and OP. Research limitations/implications Policy makers and executives in educational agencies need to consider making appropriate decision in terms of effectively adopt and implement performance-based HRM practices that can encourage and create ethical behavior of employees’ and within organization. Through the adoption and utilization of these practices, educational agencies can enhance OP. Practical implications This study contributes to the understanding of the relationship between HRM and OP by clarifying a pathway between these variables. This study also generalizes consistent findings on the HRM practices and OP relationship to a different discipline and context, i.e. educational agencies. Originality/value This study adds to the domain of resource-based view by incorporating EC as a mediator between HRM practices and OP.