The Impact of Human Resource Management Practices on Innovative Ability of Employees Moderated by Organizational Culture

Abstract

This study examines the relationship between human resource practices and innovation in the banking sector of Vehari and the moderation effects of organizational culture on this relationship. Structured questionnaires were used to collect data from respondents. Overall, 276 questionnaires were distributed and received back 151 (response rate 54%). The independent variable has six human resource practices: Reward strategy, recruitment strategy, performance appraisal, career oriented trainings, performance oriented trainings and career management. The dependent variable is innovation in banks and the moderator variable is organization culture. This study found a partial support for the relationship between human resource practices and innovation with reward strategy, recruitment strategy. The performance appraisal was significant predictor of innovation and career management. The performance oriented trainings and career oriented trainings were insignificant predictors of innovation. The organization culture moderated this relationship negatively.