The mediating role of employee resilience and moderating role of self-efficacy on the relationship between SHRM and organizational resilience in the banking industry in sri lanka

Abstract: Organizational resilience is one of the key capabilities of an organization to survive in a volatile, uncertain, complex, and ambiguous (VUCA) market environment and also to maintain their competitive advantage by adopting external environmental factors. Investigating the role of strategic human resource management methods in creating resilient organizational behavior was the purpose of this study. Further, mediating and moderating role of employee resilience and self-efficacy on the relationship between Strategic Human Resource Management and organizational resilience were also investigated. Training, compensation, performance appraisal, staffing and participation are the dimensions which were selected under the independent variable of Strategic Human Resource Management practices after reviewing the literature. The dimensions of robustness, agility and integrity were selected under the dependent variable of organizational resilience. Two conceptual frameworks were tested after deriving five hypotheses and this study wasdesigned based on a deductive approach. Accordingly, data was collected by using quantitative methods and the employees of Public Limited Company banks in Sri Lanka were selected as the populations of the study. A total of 180 questionnaires were obtained from the sample and the data were analyzed using IBM SPSS 23. In summary, the results of this study showed that Strategic Human Resource Management has a positive relationship with organizational and employee resilience and also employee resilience has a positive relationship with organizational resilience. Further, as per the findings, employee resilience mediates the relationship between Strategic Human Resource Management and organizational resilience and however, self-efficacy does not play a moderating role in this relationship. The findings of this study was more related to the previous literature except the moderating role of self-efficacy. Therefore, findings of this study proves that Strategic Human Resource Management practices are essential to develop employee and organizational resilience. This highlights the importance of linking company corporate strategy with Human Resource Management strategy on a continuous basis as this would lead the company to survive and thrive in a turbulent environment and gain competitive advantage by turning uncertain challenges into opportunities.