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Moderating Effect

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Moderating Effect

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Su Hlaing Oo
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Article

Moderating Effect of Management Global Business Review


22(1) 132–150, 2021
Support on the Relationship © 2019 IMI
Reprints and permissions:
Between HR Practices and in.sagepub.com/journals-permissions-india
DOI: 10.1177/0972150918811487
Employee Performance in Nigeria journals.sagepub.com/home/gbr

Abdussalaam Iyanda Ismail1


Abdul Halim Abdul Majid1
Mohammed Jibrin-Bida1
Mohd Hasanur Raihan Joarder2

Abstract
Given that management support and decisions do influence all the aspects of organization, this study
investigates moderating effect of management support on the relationship between recruitment and
selection, training and development, compensation, performance appraisal and succession planning and
employee performance. The cross-sectional survey approach was used in which data were collected
from 450 academics in the state-owned polytechnics in Nigeria. The partial least squares method
(PLS) algorithm and bootstrapping techniques were used to test the study’s hypotheses. The results
provided full support for four out of five hypothesized direct relationships. Likewise, the seventh and
ninth hypotheses were supported. The overall findings signify that recruitment and selection, training
and development, performance appraisal and succession planning are strong and positive predictors
of employee performance, and management support is a moderator in training and development–
employee performance relationship, and in compensation–employee performance connection. The
result signifies that management support fortifies the effectiveness in the human resource practices–
performance relationship. Limitation and suggestion for the future research are also discussed.

Keywords
Employee performance, HR practices, recruitment and selection, training and development,
compensation, performance appraisal, succession planning

1
School of Business Management, Universiti Utara Malaysia, Sintok, Malaysia.
2
School of Business and Economics, United International University, Dhaka, Bangladesh.

Corresponding author:
Abdussalaam Iyanda Ismail, School of Business Management, College of Business, Universiti Utara Malaysia, Sintok, 06010 Kedah,
Malaysia.
E-mail: [email protected]
Ismail
2 et al. 133
Global Business Review

Introduction
Crucial to the future of any organization is its employees. Employees are instrumental to the accomplish-
ment of organizational objective. Equally, organizational success is contingent upon employees, given
their possession of the required skills, knowledge and competencies needed for the execution of organi-
zational strategy and planning (Fu, 2013; Ismail, Abdul-Halim, & Joarder, 2015a). Considerable research
has emphasized the significance of improving employee performance (e.g., Ismail, Abdul-Halim, &
Joarder, 2015b), because it results in competitive advantage. Thus, it becomes imperative for organiza-
tions to create strategies that would enhance the performance of their workers.
Moreover, human resource, according to Fu (2013) and Seidu (2011), constitutes a part of many
resources that enhance sustainable competitive advantage for the organizations and the consequent firm
performance. While substantial numbers of research, such as Delery and Doty (1996), Seidu (2011) and
Sivapragasam and Raya (2018), have established the link between human resource (HR) practices and
enhanced employee performance and employee outcomes, some studies claimed the otherwise (e.g., Guest,
Michie, Conway, & Sheehan, 2003; Wall & Wood, 2005; Wright & Gardner, 2003). The position of Guest
et al. (2003) in their research indicates that stricter tests adopted to examine HR practices–performance
nexus signifies little or no association between human resource management (HRM) and performance.
Thus, conducting this kind of research is imperative to solidify the existing body of knowledge in the
research field.
In addition, contingency theory supposes that the context within which organizations operate matters
most; this supposition could imply to the application of HR practices because HR practices can be
destructive or helpful because failure or success of HR practices depends on internal and external bound-
ary conditions, and the environment in which organization operates determines to a large extent the
HR policies and practices (Chadwick, Way, Kerr, & Thacker, 2013; Teo, Le Clerc, & Galang, 2011).
Management support, which denotes provision of the instruments and resources by the management of
an organization for the workers to accomplish novel work, is considered a befitting moderating variable
that explains the inconsistencies in the findings from extant of research on HR-performance link, given
that the decisions of the management do influence all the aspects in an organization, and that manage-
ment support is a predictor of discretionary and active work-related behaviours (Cabrera, Collins,
& Salgado, 2006).
It is against this backdrop and the attempt to accomplish a profound insight and advance the field of
knowledge that the current study aims to examine the moderating effect of management support on the
relationship between recruitment and selection, training and development, compensation, performance
appraisal and succession planning and employee performance.

Literature Review
In this section of the study, literature review on HR practices, employee performance and management
support, and the relationships among the variables was done to authenticate the research questions the
current research aims to answer.

Conceptual Background of the Variables of the Study


Issues revolving around the concept of performance have substantially caught the attention of both
researchers and the practitioners, but what is interesting in it is that performance should be defined and
134
Ismail et al. Global Business Review 22(1)3

measured in relation to the context within which it exists (Lebas & Euske, 2002 posit that). Moreover,
employee performance has attracted numerous definitions. Among these definitions is that of Viswesvaran
and Ones’s (2000) definition which described employee performance as the way in which employee
efficiently takes actions and contributes with behaviours that are consistent with firm’s goals.
Employee performance upon which the overall organizational performance hinges involves employ-
ee’s monetary or non-monetary outcome (Anitha, 2014). Performance is often rewarded by financial and
other benefits. Organization wants employees with high performance as they would expedite the accom-
plishment of their goals, delivery of the products and services, and finally the achievement of competi-
tive advantage (Sonnentag, 2003).
Furthermore, there are some organizational resources involving human resources, financial resources
and technological resources, but human resource (HR) is crucial to the future of any organization, and
they are instrumental to the accomplishment of organizational objective. HRs with knowledge and
competencies are the key assets in assisting firms to survive and sustain their competitive advantage.
Organizational performance is enhanced through employee-oriented HR practices that can build up
employee capability, commitment and productivity (Posthuma, Campion, Masimova, & Campion,
2013). Firm that enhances its employee productivity and performance will continue to thrive and flourish
(Gardner, Wright, & Moynihan, 2011). Equally, HR and its management through HR practices form an
indispensable part of the whole of competitive advantage and performance (Amarakoon, Weerawardena,
& Verreynne, 2016; Chahal, Jyoti, & Rani, 2016; Delery & Roumpi, 2017).
With regards to HRM, it represents a strategic approach through which employment relations are
managed. This approach holds that people’s capabilities are crucial to accomplishing competitive advan-
tage (Bratton & Gold, 2007). From this definition, it can be said that HRM should considers employees
as assets and instrumental to accomplishing competitive advantage. HR practices have received increased
attention for its impact on employees’ performance. The majority of the research works in this area have
focused on the degree to which the HR practices can enhance individual and organizational performance
(Joarder, Sharif, & Ahmed, 2011).
HRM practices can be employed to accomplish enhanced employee performance, but which HR
practices are effective in achieving employee performance is not yet resolved. The review of extant
literature (e.g., Boselie, Dietz, & Boon, 2005; Wood & Wall, 2007) indicates that identification of HRM
practices significantly differs across studies. This led to different conceptualization of a set of HRM
practices. Nevertheless, to enhance parsimony in the concept development and measurement and under-
pinned by Saleem and Khurshid’s (2014) supposition, this study adopted five HRM practices, namely,
recruitment & selection, training & development, compensation, performance appraisal and succession
planning.
The selection of these practices is underpinned by the fact that the practices are considered best
practices which have been ‘tested and trusted’ and can be applied across all industries and countries,
because these practices have consistently lead to higher individual and organizational performance
(Werner, 2011) indicating a linear causal relationship between the practices and performance. In addi-
tion, the introduction of succession planning as a new variable in this study is connected with the fact
that appointment of new academic leaders like rector marked the beginning of crises in Nigerian poly-
technics. Posthuma et al. (2013) asserted that succession planning has been found to be under-studied,
despite a mushrooming body of literature that has surfaced over years on HRM–performance relation-
ship, thus, indicating dearth of studies on its impacts on performance.
Moreover, recruitment and selection also refer to any practice or activity engaged in by organization
with the primary aim of recognizing and enticing prospective employees (Noe, Hollenbeck, Gerhart, &
Wright, 2008). It is an essential function of an organization because it binds together manager and
4Ismail et al. 135
Global Business Review

worker. Recruitment incorporates all the activities that managers engage in developing qualified candi-
dates for suitable positions (George & Jones, 2006). In addition, training represents the prearranged and
organized alteration of behaviour via learning events, programmes and instruction which facilitate indi-
vidual worker to attain certain levels of knowledge, skill and compliance required for the effective job
performance (Armstrong, 2006). Equally, development involves the augmentation of worker’s KSAs
(i.e., knowledge, skills and abilities) (Truss, Mankin, & Kellither, 2012).
Compensation involves type of rewards that employees receive in an exchange for what they have
performed towards achieving organizational objectives. Compensation packages vary for different
workers depending upon their levels and types of formal education, experience and training (Pedro &
Vicente, 2007). With regards to performance, appraisal is a vital tool to measure the frameworks set by
any organization for its employees. Performance appraisal has been and still is the most problematic HR
area and the most avoided/detested HR area for line managers and HR departments alike (Dessler, 2011).
Performance appraisal can both make a business more efficient and help keep employees motivated.
Regarding succession planning, it refers to the process of identifying people who could presently
move into key positions or could do so after specifically targeted development occurs. Succession plan-
ning can be designed to target knowledge transfer between and among workers and the organization,
most especially when it comes to accomplishment of tasks critical to organizational mission (Aiman-
Smith, Bergey, Cantwell, & Doran, 2006).
Furthermore, management support is selected as a moderator variable in the present study. Management
support can be referred to as the provision of the instruments and resources by the organization for the
workers to accomplish novel work. For the coordination of efforts, and flowing of knowledge to develop
good work behaviours, there is need for management support (Cabrera et al., 2006). Management support
gives employees a sense of involvement and contribution, for this is necessary for inspiring creative
ideas, discovering new opportunities and converting them to action without losing efficiency at work
(Calantone, Cavusgi, & Zhao, 2002).

Linking the Selected HR Practices to Employee Performance


Starting from Arthur (1994), the first systematic empirical study on HRM–performance nexus, the bulk
of HRM studies are of two different perspectives (Edgar & Geare, 2009; Paauwe, 2009): a stream of
HRM research solidly affirms positive effect of HR practices on performance, while the other stream of
studies casts doubts on the relationship or even denies the relationship between HR practices and perfor-
mance. Researchers such as Wall and Wood (2005), Guest et al. (2003) and Wright and Gardner (2003)
cast doubt or deny the HRM–performance nexus. For example, Guest et al. (2003) opined that stricter
tests adopted to examine the HRM–performance nexus indicate little or no association between HRM
and performance. Wall and Wood (2005) added that it is impulsive to assume that HRM will certainly
lead to good performance.
The findings that deny or cast doubt on the HRM–performance nexus may not hold water, given the
fact that there have been an overwhelming bulk of empirical studies that establish the link between HRM
and performance (e.g., Fu, 2013; Seidu, 2011). Comb, Crook, & Shook (2005) carried out a meta-
analytic research on HR practices–performance relationship by examining 92 studies from 1990 and
2005. The finding of the research signifies that HR practices do influence performance. More impor-
tantly, Posthumaet al. (2013) carried out another meta-analytic study which analysed 193 peer-reviewed
articles that covered numerous countries and cultures across the globe. The reviewed articles were those
published from 1992 through 2013. The findings of these studies affirm the relationship between HR
136
Ismail et al. Global Business Review 22(1)5

practices and performance, as the former impacts the latter. All these have established that HRM–
performance nexus and thus debunk the claim that little or no relationship exists between HRM
and performance.
Furthermore, there are several empirical studies conducted on the relationship between recruitment and
selection and employee performance (e.g., Babagana, 2014; Saleem & Khurshid, 2014, so on). The overall
findings of these studies signify significant positive relationship between recruitment and selection
and employee performance. With regards to training and development, the result of the empirical studies
conducted by Hafeez and Akbar (2015), Falola, Osibanjo, and Ojo (2014), and the host of others demon-
strated that training and development has positive effect on employee performance. On compensation–
performance nexus, it has become an empirical fact that relationship between compensation and employee
performance exists and is significant. This assertion is confirmed by the studies which include Hameed,
Ramzan, and Zubair, (2014), Oluigbo and Anyiam (2014), etc. In addition, many empirical studies have
established a positive relationship between performance appraisal and employee performance in organiza-
tion; the studies include Mir and Ahmed (2014), Owoyemi and Georga (2013) and so on.
On the last selected HR practice, which is succession planning, there are some empirical studies that
show the significance of succession planning in an organization, which includes Daspit, Holt, Chrisman,
& Long (2015) and Posthuma et al. (2013). Based on the observation made by Posthuma et al. (2013),
there is a dearth of research on the role of succession planning. This implies that despite that succession
planning is a vital HR practice that has its crucial role in the achievement of organizational success, little
is known about its influence on employee performance.
Given the exposition put up above, this research hypothesizes the following:

1. Recruitment and selection positively influence employee performance.


2. Training and development positively influence employee performance.
3. Compensation positively influences employee performance.
4. Performance appraisal positively influences employee performance.
5. Succession planning positively influences employee performance.

Management Support as a Potential Moderator


The context within which organization operates and the situation in which firm finds itself has effect on
the sort of plans, policies, etc., that will be adopted by such firm. Likewise, the role of the HR department
is predicted by the situations of the organization regardless of the size of the organization. HR policies
and practices of the firms are greatly influenced by the internal and external environments of such
organization (Schuler & MacMillan, 1984). The strategic orientations of firms also have bearing on
the implementation of HR practices and the consequent influence on the organizational performance
(Teo et al., 2011). HRM systems can be destructive or helpful because internal and external boundary
conditions determine the effectiveness of HR systems (Chadwick et al., 2013).
Management support denotes the organizational provision of the means and the instruments for the
purpose of discharging the work creatively. Also, management support is a means through which a
common sense of innovation and advancement is developed (Tsai & Ghoshal, 1998).
Management support can make employee get involved and encouraged to employ their know-how
and skills to propose ways for improvements in some aspects of job which need the improvements.
This kind of proposal can be linked to the job, the product, the work atmosphere or the firm. Management
6Ismail et al. 137
Global Business Review

support for compensation is responsible for an organization’s pay structure. Management support for
performance appraisal can be referred to as the schematized process of assessing job-based performances
and skills of workers (Koshy & Suguna, 2014).
More so, several empirical studies (e.g., Karatep & Kilic, 2015; Prieto-Pastor & Martin-Perez, 2015)
were conducted using management support as moderating variable. However, the survey of literature has
signified that this is first time that management support will serve as a moderator in the link between
human resources management practices and employee performance.
Given the exposition put up above, this research hypothesizes the followings:

1. Management support moderates the relationship between recruitment and selection and employee
performance.
2. Management support moderates the relationship between training and development and employee
performance.
3. Management support moderates the relationship between compensation and employee
performance.
4. Management support moderates the relationship between performance appraisal and employee
performance.
5. Management support moderates the relationship between succession planning and employee
performance.

Research Objectives
Given that majority of the studies have established positive relationships between the recruitment and
selection and employee performance, training & development and employee performance, compensa-
tion and employee performance, performance appraisal and employee performance, and succession
planning and employee performance, the current study aims to examine the positive effects of HRM
practices on employee’s performance in the state-owned Polytechnics in Nigeria with management
support as a moderator.
Thus, the overall objective of this study is to investigate the moderating role of management support
in the positive relationships between recruitment and selection, training and development, performance
appraisal, compensation, succession planning and employee performance.

Theoretical Framework
The research framework, as shown in Figure 1, is well supported by the ability-motivation-opportunity
(AMO) model. AMO model posits that performance of the firm can be sped up through three factors
which are ability, motivation and opportunity. The first factor can be achieved through recruiting and
selecting quality personnel. Jiang, Lepak, Hu, and Baer (2012) assert that ability of the firm’s human
capital can be enhanced through all-inclusive recruitment, rigorous selection and broad training.
The second factor can be accomplished through motivation-enhancing HR architectures such as
developmental performance management, competitive compensation, incentives and rewards.
The HR practices such as succession planning constitutes what can be used to empower employees
and give them opportunity which is the third factor. The AMO model proposed that empowered
and motivated employee with boosted KSAs would remain in the organization and record higher
138
Ismail et al. Global Business Review 22(1)7

Figure 1. Research Framework


Source: The authors.

performance which consequently enhances higher organizational performance (Boxall & Macky, 2009;
Gyensare & Asare, 2012).
Furthermore, the context within which firm operates and the situation in which firm finds itself deter-
mine firm’s strategies and policies which predict the application of HR practices and its effect on firm’s
performance (Teo et al., 2011). Also, the internal and external environments in which a firm operates
determine to a large extent the HR policies and practices (Huselid & Rau, 1997). Researchers have come
to recognize that the context within which a plan is executed influences the execution itself and the
outcome (Harrison et al., 2014). HPWS systems can be destructive or helpful because the failure or
success of HR systems depends on internal and external boundary conditions (Chadwick et al., 2013).
For that reason, the functions of the HRM are contingent upon the situations of the firm regardless of the
size of the firm.
Thus, AMO model and contingency exchange theory ground the theoretical framework and the rela-
tionships among the variables of this article.

Methodology
In the current study, a cross-sectional survey approach was used in which data were collected from
the academics of six state-owned polytechnics in the North Central zone of Nigeria. There were 1440
academic staff members in the selected six states owned Polytechnic in Nigeria. Sample size was
determined using Krejcie and Morgan’s (1970) benchmarks and Salkind’s (1997) proposition, given the
fact that the level of confidence and precision is been taken care of, and minimized sampling error is
guaranteed by the approaches. From a population of 1440, a sample size of 450 was chosen to stand in
for the entire population of the study.
8Ismail et al. 139
Global Business Review

In sampling the respondents from the entire population, the study used the disproportionate sampling
technique, given that it is considered appropriate for a population that is large in number (Sekaran &
Bougie, 2013). Furthermore, items of employee performance were adapted from Koopmans et al
(2011), while the instruments of HR practices, except succession planning, were adapted from Demo,
Neiva, Nunes, and Rozzett (2012), but succession planning instruments were adapted from Darvish and
Temelei (2014). The items constituting management support were adapted from Prieto-Pastor and Martin-
Pereza’s (2015) and Ko, Hur, & Smith-Walter (2013). All items were scaled with 5-Likert scale. 450
questionnaires were administered, but 290 questionnaires, representing 65.5 per cent, were returned
and subsequently used in the analysis. SPSS 22v and Smart PLS 2.0 m3 software package were used for
data analysis.

Results
This involves demographic, descriptive and inferential analyses. Demographic analysis presents the
demographic information of the respondents, involving gender, age, marital status, education level,
experience and job title. Descriptive analysis describes the latent variables used in the study, and infer-
ential involves the measurement model and structural model evaluation. The inferential analysis was
carried out using PLS-SEM 2, because PLS path modelling is comparable to the conventional regression
technique, and it has the ability to concurrently examine both the connections among variables and the
connections among the indicators and their corresponding variables (i.e., measurement model) (Chin,
Marcolin, & Newsted, 2003; Duarte & Raposo, 2010). In addition, PLS path modelling is considered
suitable for the studies that are exploratory in nature, prediction-oriented and extension of the standing
theories (Hair, Ringle, & Sarstedt, 2011; Henseler, Ringle, & Sinkovics, 2009).

Demographic and Descriptive Analyses


Majority of the respondents in the sample (75 per cent) were males, while the remaining 25 per cent were
females. Twenty two per cent of the respondents, indicating majority, fell within the age-range 25–30
years, with 36 per cent, indicating majority, having between 6 and 10 years of working experience in
their respective polytechnic. 67 per cent of the respondents were married, while 30 per cent and 3 per
cent were singles and widows, respectively. Furthermore, the demographic analysis indicates that high
proportion of the respondents, representing 41 per cent, were master’s degree holders, but first-degree
holders constituted 25 per cent. A total of 21 per cent of the participants were HND holders and the
remaining 13 per cent were doctorate degree holders. With regards to job title, 37 per cent of the partici-
pants were instructors/lecturer, 34 per cent were senior lecturers, 16 per cent were principal lecturers and
13 per cent were chief lecturers.
Considering descriptive analysis of the latent constructs, all variables and their dimensions possessed
a mean ranging from 3.22 to 3.63, and the standard deviation of all dimensions ranged from 0.38 to 0.94.
These values of overall mean and standard deviation for all the variables and their dimensions are quite
acceptable. Hence, it can be proven that the responses of the respondents clearly indicate an acceptable
and satisfactory level of understanding with regard to all the variables of the study. The scale used in
measuring the questionnaire items was 1 to 5 Likert scale: strongly disagree, disagree, neutral, agree and
strongly agree.
140
Ismail et al. Global Business Review 22(1)9

Measurement Model Evaluation


Measurement model evaluation involves indicator reliability, internal consistency reliability, convergent
validity, and discriminant validity of the constructs (Hair, Hult, Ringle, & Sarstedt, 2014). According to
Hair et al. (2014), any item indicator with loading less than 0.4 should be deleted. Thus, this research
model is filtered by deleting all the items that were below 0.4. As shown in Table 1 and Figure 2, 20 items
were deleted from employee performance items, 6 items were deleted from succession planning, 3 items
were deleted from compensation and 4 items were deleted from training and development. As for recruit-
ment and selection, only one item was deleted from it while none was deleted from performance appraisal
and management support. The loadings of the retained items met the threshold of 0.4.
Furthermore, composite reliability scores of the constructs ranged between 0.813 and 0.905 and 0.940
(Hair, Black, Babin, & Anderson, 2010), and average variance extracted (AVE) values of the constructs
ranged between 0.545 and 0.735, thereby exceeding minimum requirements of 0.5 (Hair et al., 2011).

Table 1. Internal Consistency and Convergent Validity

Items Items Loadings AVE Composite Reliability Cronbach Alpha


CP1 0.925 0.735 0.846 0.657
CP3 0.783
EP18 0.725 0.603 0.900 0.867
EP21 0.812
EP24 0.637
EP3 0.862
EP5 0.778
EP8 0.822
MS1 0.745 0.598 0.899 0.866
MS2 0.839
MS3 0.808
MS4 0.721
MS5 0.774
MS6 0.745
PA1 0.819 0.661 0.905 0.864
PA2 0.797
PA3 0.911
PA4 0.584
PA5 0.911
RS1 0.788 0.545 0.856 0.790
RS2 0.824
RS3 0.717
RS4 0.677
RS5 0.673
SP1 0.658 0.567 0.866 0.811
SP2 0.815
SP3 0.832
SP4 0.655
SP5 0.787
TD3 0.708 0.689 0.813 0.586
TD4 0.936
Source: The authors.
Ismail et al.
10 141
Global Business Review

Figure 2. Measurement Model


Source: The authors.

As depicted in Table 3, discriminant validity is deemed satisfactory, as each latent construct’s AVE
emerged greater than its highest squared correlation with any other latent construct in the model.
Figure 1, Table 1 and Table 2 show the result of measurement model evaluation.

Structural Model Evaluation


Structural model estimation is depicted in Figure 3 and Tables 3 and 4. R-square value is 0.660 (see
Figure 1) signifying that all the selected HR practices (recruitment and selection, training and develop-
ment, compensation, performance appraisal and succession planning) explain 66 per cent of variance in
employee performance. With beta value of 0.367, 0.211, 0.190 and 0.126 at significant level which is
less than 0.001/0.010, as indicated in Table 3, it can be claimed that the finding of this study validates the
existing empirical finding that signifies that recruitment and selection, training and development, succes-
sion planning and performance appraisal, respectively, have positive effect on employee performance.
Nevertheless, the result ( β = –0.012, t = 0.302, p >.1) indicate that compensation has no significant effect
on employee performance. Thus, 4 hypotheses, out of the proposed 10 hypotheses, are supported.
Considering the suggestion of Cohen (1988) and Hair, Hult, Ringle, & Sarstedt (2013), the results in
Table 4 show that employee performance is explained by recruitment and selection, training and develop-
ment, compensation, performance appraisal and succession planning with effect size ( f 2 ) of 0.124, 0.057,
0.000, 0.014 and 0.033 respectively, indicating that all, except compensation and performance appraisal,
have small effect size on employee performance. Besides, with the cross-validation redundancy (CVR)
value of 0.246, this research model has adequate predictive relevance (Fornell & Cha, 1994).
142
Ismail et al. Global Business Review 22(1)
11

Table 2. Discriminant Validity

Constructs COMP EP MS PA RS SP TD
COMP 0.857
EP –0.108 0.776
MS –0.061 0.770 0.773
PA –0.107 0.501 0.515 0.813
RS –0.225 0.570 0.511 0.561 0.738
SP –0.103 0.517 0.487 0.657 0.618 0.753
TD 0.111 0.202 0.120 0.159 –0.016 –0.014 0.830
Source: The authors.

Figure 3. Structural Model


Source: The authors.

Table 3. Hypotheses Testing

Constructs Beta Standard Error T-Statistics P-value Decision


COMP EP –0.012 0.040 0.302 0.763 Not Supported
PA EP 0.126 0.091 1.390 0.083 Supported
RS EP 0.367 0.056 6.525 0.000 Supported
SP EP 0.211 0.058 3.643 0.000 Supported
TD EP 0.190 0.039 4.879 0.000 Supported
RS*MS EP –0.080 0.070 1.150 0.130 Not supported
TD*MS EP –0.200 0.080 2.340 0.010 Supported
PA*MS EP –0.060 0.060 0.880 0.190 Not supported
C*MS EP 0.130 0.080 1.560 0.060 Supported
SP*MS EP 0.030 0.090 0.360 0.360 Not supported
Source: The authors.
12
Ismail et al. 143
Global Business Review

Table 4. Effect Size on the Endogenous Variable (Employee Performance)

R-squared Included Excluded f-squared Effect Size


Recruitment and selection 0.421 0.349 0.124 Small
Training and development 0.421 0.388 0.057 Small
Compensation 0.421 0.421 0.000 None
Succession planning 0.421 0.402 0.033 Small
Performance appraisal 0.421 0.413 0.014 Small
Source: The authors.

Moreover, based on the product indicator approach, the results depicted in Table 3 ( β = –0.200,
t = 2.340, p <.010; β = 0.130, t = 1.560, p <.010) indicate that the relationships between training and
development and compensation and employee performance, respectively, hinge on management support.
In other words, management support moderates the relationship between training and development and
employee performance, and the relationship between compensation and employee performance. In addi-
tion, it is shown in Figures 4 and 5 that the interaction plot (Dawson, 2014) in which line tagged high
MS, which indicates the presence of management support, has a steeper gradient as against low MS
(absence of management support). This signifies that positive nexus between training and development,
compensation and employee performance get stronger for the polytechnics with management support.
Thus, hypothesis 7 and hypothesis 9 were supported.
However, the result depicted in Table 3 signifies that management support does not moderate the
relationship between recruitment and selection and employee performance, performance appraisal and
employee performance, and succession planning and employee performance.

Figure 4. Interaction Effect of Training and Development Management Support and Employee Performance
Source: The authors.
144
Ismail et al. Global Business Review 22(1)
13

Figure 5. Interaction Effect of Compensation, Management Support and Employee Performance


Source: The authors.

Discussion
The overall findings of the study indicate that certain HR practices are effective drivers of enhanced
employee performance. However, in some contexts, some HR practices could be detrimental to enhanced
performance. Based on this, some researchers (e.g., Chadwick et al., 2013) are of the opinion that HR
practices can be destructive or helpful because failure or success of HR practices depends on some inter-
nal and external boundary conditions.
Also, the result of the current study signifies that all the selected HR practices (recruitment and
selection, training and development, performance appraisal, and succession planning), excluding
compensation, are strong and positive predictors of employee performance. This result solidifies the
findings of the extant literature which include among others Saleem and Khurshid (2014), Falola et al.
(2014), Mir and Ahmed (2014). Compensation is found in the current study to have non-significant
effect on employee performance. This finding signifies that the findings of the extant literature on
compensation–performance nexus are inconclusive. Some studies (e.g., Ariely, Gneezy, Loewenstein, &
Mazar, 2009) indicate negative nexus between the two variables. The introduction of the pay programme
in the organization should be characterized with high level of trust, sufficient pay package and effective
performance appraisals (Ismail, Abdul-Halim, & Joader, 2015b).
Moreover, management support is shown to be a moderator in training and development–employee
performance connection, and in compensation–employee performance connection. The result signifies
that support of management fortifies the effectiveness in the HR practices–performance relationship.
This result implies that in an organization with management support, training and development and
compensation become more important in explaining employee performance. This result could be linked
to contingency theory, in which managerial support should go in line with the organizational practices
for the accomplishment of higher performance (Selto, Renner, & Young, 1995).
14
Ismail et al. 145
Global Business Review

Nevertheless, the possible reason for the absence of support for management support as a moderator
in the relationship between recruitment and selection and employee performance, performance appraisal and
employee performance, and succession planning and employee performance might be that HR practices–
performance relationship is contingent not on all but specific organizational factors or environmental factors
(Takeuchi, Lepak, Wang, & Takeuchi, 2007). Management support could or could not be a contingent
variable for HR practices–performance relationship as shown in the findings of this research, but more
research is needed in this regard to expand the scope of knowledge in the research field.
The reason might also be context-specific, for example, Nigerian lecturers perceived recruitment and
selection as process of hiring employee, but due process in recruitment and selection exercise is
not usually followed. Applications were collected for interview and by the end of the day government
came out with the list of applicants given appointment without interview, whereby management of the
polytechnics have no option than to accept the employed applicants. Thus, HR practices–performance
relationship could be contingent on environmental factors (Takeuchi et al., 2007).

Conclusion
Overall, the findings of the current study confirm that the positive effect of HR practices on organiza-
tional performance cannot be strengthened if the management of the organization does not give support
to the HRM system. Also, the findings of the current study have established how crucial the employees
are to the future of any organization, and that employees are instrumental to the accomplishment
of organizational objective, as earlier claimed. Therefore, management and other stakeholders in the
polytechnics sector need to provide support to stimulate positive employee behaviour and enhanced
employee performance. The findings of this study have offered more insights into HRM research field.

Managerial Implications
The overall findings of this study can serve as a guide for the management in entrenching an enhanced
employee performance through entrenchment of HR practices that would stimulate employee moti-
vation. The findings of the present study also emphasize that management support to organizational
effort to enhance its employee productivity and performance will make such organization thrive and
flourish (Gardner et al., 2011; Guerrero & Baraud-Didier, 2004).
This study highlights that it has become imperative for the firms to develop strategy that can give
support to improved human resource performance which will consequently aid the accomplishment of
firm’s objectives. This is of great significance, because the ability of firm to identify its business needs
and its workforce needs, especially for highly productive workforce, is a reflective of accomplished
competitive advantage of such firm. HRM is poised to enhance firms’ survival and effectiveness through
human capital (Armstrong, 2006). Human capital owns the required skills, knowledge and competencies
to execute strategy and planning in the firm. Hence, organizations should be well-informed about how
people are stimulated to achieve their full capabilities (Lawler, 2003). Likewise, human resource adds
economic value to firms (Riordan, Vandenberg, & Richardson, 2005).
146
Ismail et al. Global Business Review 22(1)
15

Limitations and Future Research Directions


Although the results of the present study have advanced the body of knowledge in the HPWS research
field, it should be decoded and translated with caution, given the limitations associated with the study.
The current study employed the cross-sectional research approach for data collection, but the approach
does not guarantee causal inferences to be made from the population (Sekaran & Bougie, 2010).
This is considered a limitation and thus affects generalizability of the findings of this study. Therefore,
the longitudinal research approach can be an alternative research approach for the future research.
Moreover, HR practices–performance relationship has been recognized as being contingent on organ-
izational factors or environmental factors. Nevertheless, the finding of the current study signifies that not
all the organizational factors moderate the HPWPs–performance relationship in a positive manner.
In other words, HR practices–performance relationship is contingent not on all but specific organiza-
tional factors or environmental factors, as observed by Takeuchi et al. (2007). Thus, future researcher can
look for a moderator that could moderate the connection between HR practices and employee perfor-
mance connection.

Acknowledgement
The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve
the quality of the paper. Usual disclaimers apply.

Declaration of Conflicting Interests


The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication
of this article.

Funding
The authors received no financial support for the research, authorship, and/or publication of this article.

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