The link between HR practices, psychological contract fulfilment, and organisational performance in Greece: An economic crisis perspective
Abstract: This study examines
the impact of HR practices on organizational performance through the mediating
role of psychological contract (expressed by the influence of employer on
employee promises fulfilment through employee attitudes) and further examines
whether this relationship remains stable during periods of external economic
crisis.
Methodology: The analysis is based on structural equation modelling using
two national samples of a two time study of Greek private and public
organizations in the manufacturing, services and trade sectors. The first data
collection took place in 2008 (treated as a control period) and the second in
2010 (treated as an economic crisis period).
Findings: The study is providing proof that the employee attitudes of
satisfaction, commitment and motivation, constitute a nested mediating
epicentre of the HR practices – organizational performance relationship,
meaning that employee attitudes are positively influencing employee promises
fulfilment and organizational performance and being positively influenced by
employer promises fulfilment and HR practices.
Research limitations/implications: Although data was collected using the
same questionnaire at the two time periods of 2008 and 2010, the design of the
study is not longitudinal. As a result, the study does not allow for dynamic
causal inferences.
Value: The study supports the view that although the structure of the
relationship between HR practices and organizational performance does not
change in periods of economic crisis, the strength of this structure is weaker
compared to normal economic periods. Additionally, this study provides a
greater understanding of the process by which psychological contract mediates
the relationship between HR practices and organizational performance, with special
reference to economic crisis.
Keywords: HR practices;
Psychological contract; Employee attitudes; Organizational performance;
Economic crisis
Author: Anastasia A. Katou
Journal Code: jptindustrigg130018
