Abstract

Globalization has brought about the need for organizations to be at pace with the trends to improve performance that can lead to greater competitive advantage. The aim of this study is to elaborate on the mediating effect of organizational climate on the relationship between HRM practices and HR outcomes in Libyan firms. From the literature scrutiny, this paper concludes that HRM practices, i.e., HR planning, recruitment & selection and rewards and compensations; and HR outcomes, i.e., employee satisfaction and employee relations can improve organizational performance. This study employs the use of quantitative survey to collect data. Multiple linear regressions were used to test the hypotheses, and the research data is effectively analyzed using SPSS. The findings indicate that there is a significant relationship between HRM practices and HR outcomes, and better and effective HR outcomes can be achieved through good organizational climate in Libyan firms. Thus, organizations should place more emphasis on organizational climate, as doing so would help organizations achieve their HR outcomes, including performance objectives. Effective HR outcomes can be achieved if HRM practices, such as performance appraisal, compensation and rewards and human resource planning are integrated with organizational climate in the organization. Recruitment and selection does not produce better HR outcomes when combined with organizational climate. Hence, recruitment and selection should be given greater consideration. This research is considered as the first in Libya to examine the effect of organizational climate on the relationship between human resource practices and HR outcomes predictability in a developing country, such as Libya. The findings of this paper serve as a clarion call to HR managers as well as policy makers to evaluate the importance of organizational climate on HR practices and HR outcomes in improving performance within the organization.

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