Impact of High Performance Human Resource Practices on Team Performance: Mediating Role of Trust

Abstract

This study aims to find effect of ability, motivation and opportunity enhancing HR practices on team performance and trust and to find out if trust mediates the relationship between AMO enhancing HR practices and team performance. Positivism research philosophy with deductive research approach is used in this study. Surveys are used to conduct this study using questionnaires. 192 responses were collected from both managerial and non-managerial positions from national and international NGOs of Islamabad and Rawalpindi. Based on 180 responses, this study proved that there is a positive relationship of HPHRPs with both Trust and team performance; while Trust mediates the positive relationship between AMO enhancing HR practices and team performance. Limited literature is available on SHRM in development sector. Convenience based sampling is used and hence data is collected only from twin cities; Islamabad and Rawalpindi. Data collected is from overall development sector and no particular kind of services like health, education or micro financing are focussed. This study is specifically helpful for Human Resource Managers of development sectors because they need to recruit people on daily basis for different projects. If they properly design an HR system which, from recruitment to their appraisal works in such a way that people gained trust in their employer, they will never complaint about employees’ behaviour or bad performance. It will help policy makers for decision making providing them with some piece of knowledge about how performance of employees could be made better in development sector of Pakistan and hence improving the overall share of this sector in economy of Pakistan. This study has its significance in enriching SHRM literature in NGO sector. SHRM literature has a major shortage of studies conducted in development sector. Team performance is studied in various aspects but its linkage with AMO in the presence of trust is not studied before in NPOs. Mediators under cognitive and behavioural mechanisms are studied conveniently, but affective based mediators are now being studied to find the relationship of human emotion side with practical aspects of work. Trust is studied keeping in mind that in NGO sector it might be difficult to work with, but finding the effect of this subjective kind of variable is worth studying in such an inconstant sector.