The Effects of HR Strength and Social Identification on Employee Performance in Private Commercial Banks of Khairpur Mir's, Sindh, Pakistan

Abstract

This study aims to analyze the effect of Human Resource (HR) Strength and Social Identification on Employee Performance in private commercial banks of Khairpur Mir's, Sindh, Pakistan. The study, based on social identity theory, examines the relationship between HR strength (based on three components—distinctiveness, consistency, and consensus) and performance outcomes in banking industry. For the collection of data, the design of quantitative research was used in this study which was a cross-sectional survey among 250 employees in private commercial banks in Khairpur Mir's taken by simple random sampling technique. A structured questionnaire was used for data collection with HR strength, social identification and employee performance on a 5-point Likert scale. Excellent internal consistency (Cronbach's α = .930) was found through reliability analysis. All the variables were highly positively correlated with each other (r = .892 – .895, p < .001). Regression analysis revealed that HR strength (β = .479, p < .001) and social identification (β = .467, p < .001) were significant and positively related to employee performance together accounting for 84.5% of the variance (R² = .845). The results supported the two research hypotheses and validated the integrated model of HR strength-social identification in the context of Pakistan banking sector. The research adds to the HRM literature by contributing to the empirical evidence of which context is largely under-researched, and offers implications for HR managers and policy makers in creating effective HR systems that lead to improved organizational identification and employee performance. Practice and future directions for research are discussed.