The Role of Human Resource Policies in Fostering Organizational Success: An Evidence from Bahrain's Construction Sector

Abstract

The construction sector is very dynamic and provides thousands of jobs and supports the national economy of Bahrain. This study investigates the impact of human resource policies on the performance of construction organizations in Bahrain using the Baron-Kenny method. This method gives the direct and indirect effect between human resource policies and organization performance where the employee performance is used as a mediator. A self-administrated questionnaire is developed and validated where the study is conducted on 154 construction employees with a response rate of about 38 percent. The results are shown that there is a direct and indirect statistically significant impact of human resource policies on the performance of construction organizations. In the existence of the mediator in the model, the indirect effect of human resource policies on construction organization performance is more than double of direct effect. Moreover, the mediation effect of employees performance is confirmed using the Sobel test. This study adds to few studies that have empirically inspected a global model of employee performance as a mediator in the construction sector and considers one of the few of its type undertaken in Bahrain's construction sector context.