The Impact of The Human Resource Practices on The Organizational Performance: Does Ethical Climate Matter?

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Yuris Danilwan, Dirhamsyah, Ikbar Pratama


The main objective of the current study is to examine the impact of human resource practices on organizational performance in the manufacturing sector in Indonesia. Additionally, the study has examined the moderated effect of the ethical climate in the relationship between human resource practices and organizational performance. The quantitative approach is one that follows the questionnaires for collecting the data. A total of 320 questionnaires were distributed. And a total of 260 were received back. So, the response rate was 81.25%. The previously mentioned empirical evidence indicates that several studies observed the role of ethical climate as a moderator and found positive outcomes. The studies also explained the ability of ethical climate to describe the nature of association among dependent and independent variables; these findings will be useful for the Indonesian bank’s management. The HRM professionals’ perception in Indonesian banks will be likely to be enhanced by having an understanding of the moderating effect of ethical climate on the linkage between organizational performance and HRM practices, thereby drawing the management’s interest and attention towards further investigation.

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