Do employee attitudes mediate the relationship between strategic human resource management practices and organizational effectiveness? A SEM based investigation using SMART-PLS software

Abstract

This research set out to test the mediating of employee attitudes on the relationship between SHRM (Society for Human Resource Management) practices and organizational effectiveness in Palestinian banking sector. Using structural equation modeling (SEM) it is investigated a random sample of 357 Palestinian banks' employees selected in a random manner in 16 Palestinian governorates. The partial least square approach has been used depending on SMART-PLS software. Results show the existence of direct and indirect significant path between SHRM practices and organizational effectiveness. However, the indirect relationship through the mediating role of employee attitudes was stronger than the direct one. To sum up, results indicate that employee attitudes partially mediate the relationship between SHRM practices and organizational effectiveness.