Does human capital mediate the nexus of human resource management (HRM) practices and organizational performance?

Frank Otoo, Manpreet Kuar and Evelyn Otoo
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Frank Otoo: Department of Secretaryship and Management Studies, Faculty of Business and Management Studies, Koforidua Technical University, Koforidua, Ghana
Manpreet Kuar: GNA Business School, GN University, Phagwara, India
Evelyn Otoo: Department of Administration, Metro Mass Transit Limited, Accra, Ghana

International Journal of Research in Business and Social Science (2147-4478), 2022, vol. 11, issue 5, 199-209

Abstract: Human capital is a significant element in the attainment of sustained competitive advantage and economic survival of organizations. The study explored whether human capital mediates the nexus of human resource management practices and organizational performance. A field study was conducted among 11 internationally and 4 indigenously owned banks. The hypothesized relationships were supported by the data. The results show that the association between selective staffing with the levels of human capital was significant. The results also show that the levels of human capital influenced organizational performance significantly. The results further show that human capital mediated the nexus of HRM practices and organizational performance. The generalizability of the results obtained may be constrained since the present study focused on the banking industry. The study suggests the creation and maintenance of valuable human capital promote competitiveness and sustained competitive advantage. The study contributes to the extant literature by empirically evidencing that human capital mediated the nexus of HRM practice and organizational performance. Key Words:Human Capital, HRM Practices, Banking Industry, Organizational Performance

Date: 2022
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