The mediating effect of organizational climate on the relationship between HRM practices and HR outcomes in the Libyan public sector

Abstract

Purpose Despite the fact that previous studies have identified a possible mediator (organizational climate) in the HRM practices-HR outcomes link, the role of organizational climate as a mediator has, however, not been accorded the respect it deserves in the HRM practices-HR outcomes relationship. Moreover, studies on organizational climate are still scarce and have often focused on western organizations. The purpose of this paper, among others, is to examine the direct effect of HRM practices on the HR outcomes within the context of Libyan organizations. It further investigates whether organizational climate mediates the influence of HRM practices on the HR outcomes within the context of Libyan organizations. Design/methodology/approach This paper uses multiple regression analysis on a sample of Libyan organizations. Findings Regarding the findings, first, the paper finds that organizations that adopt HRM practices, such as performance appraisal, compensation and rewards and HR planning achieve significant HR outcomes. The finding also indicates that recruitment and selection and training and development are not good predictors of HR outcomes in the organization. Finally, the study reveals that the influence of HRM practice dimensions such as performance appraisal, compensation and reward and HRP on organizational performance is mediated by the presence of organizational climate; on the other hand, organizational climate fails to mediate the influence of both recruitment and selection and training and development on the HR outcomes. This study suggests that not all HRM practices are influenced by organizational climate of the organizations in Libya, and this may be due to the present environmental situation in Libya. Originality/value The study is deemed as an initial attempt to investigate the mediating effect of organizational climate on the relationship between HRM practices and HR outcomes in the Libyan public organizations. This finding acts as a springboard for further research and a wake-up call to the organizations in Libya to evaluate the importance of organizational climate in achieving HR outcomes in a volatile environment.