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Asia Pac J Human Res - 2022 - Babar - Performance appraisal quality and employee performance the boundary conditions of

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Asia Pacific Journal of Human Resources (2022) , doi:10.1111/1744-7941.12327
Performance appraisal quality and employee
performance: the boundary conditions of
human resource strength and religiosity
Sumbal Babar NUST Business School, National University of Sciences and Technology, Islamabad, Pakistan,
sumbal.phd17nbs@student.nust.edu.pk
Asfia Obaid NUST Business School, National University of Sciences and Technology, Islamabad, Pakistan
Karin Sanders UNSW Business School, University of New South Wales, Sydney, Australia
Hussain Tariq
KFUPM Business School, Interdisciplinary Research Center for Finance and Digital
Economy (IRC-FDE), King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia,
hussain.tariq@kfupm.edu.sa
This study aims to provide new insights on the boundary condition effects of human resource (HR)
strength, based on the covariation principle of the attribution theory and job demand resource
model. HR strength is defined as the features of an HR system that send signals to employees, allowing them to understand the desired responses and behaviors in the relationship between performance appraisal quality (PAQ) (clarity, regularity and openness) and employees’ proficient,
adaptive and proactive performance. Additionally, employees’ religiosity is examined as a boundary
condition of the effect of perceived HR strength. The findings of a two-wave, multi-actor study
(N = 391 employees and 61 managers) highlight that the relationship between PAQ and employee
performance is strongest when it is embedded within a strong HR system (perceived HR strength)
and low religiosity, or within low perceived HR strength and high religiosity conditions.
Keywords: HR strength, JD-R, Pakistan, performance appraisal quality, religiosity
Key points
1 The concept of human resource (HR) strength remains central to the HRM process
perspective.
2 HR strength proves important in improving performance appraisal quality and
enhancing employee performance.
3 Stronger HR systems send clear and unambiguous signals to the values and priorities of the organization.
4 Religiosity has emerged as an important personal resource for enhancing employee
motivation and performance.
Correspondence: Sumbal Babar, NUST Business School, National University of Sciences and
Technology, Sector H-12, Islamabad, 44100, Pakistan; e-mail: sumbal.phd17nbs@student.
nust.edu.pk
Accepted for publication 9 April 2022.
Ó 2022 Australian Human Resources Institute (AHRI).
Asia Pacific Journal of Human Resources Introduction
The quality of performance appraisal (PA), defined as a frequent source of providing feedback with clarity, regularity and openness (Sanders, Dorenbosch and de Reuver 2008), is
increasingly regarded as an essential element of the performance management of employees (DeNisi, Murphy, Varma and Budhwar 2021). It has also become a general expression
for various activities related to assessing employees’ performance, skills development and
the distribution of rewards to ultimately improve performance (DeNisi and Kluger 2000;
Fletcher 2001; Wilson and Western 2000). At the same time, research shows that PA has a
significant impact on work-related attitudes (e.g. Bednall, Sanders and Runhaar 2014;
Brown and Benson 2005; Su and Baird 2017) and employee performance (Bratton and
Gold 1999; DeNisi and Murphy 2017; Taylor and Pierce 1999). Still, some questions
remain on the effect of PA quality, which needs further attention.
Although earlier research has focused on the direct effects of PA quality, we lack
knowledge on the boundary conditions of the effect of PA quality on employee outcomes.
This knowledge is essential to understand because the quality of PA provides more opportunities for improvement and efficiency in employees’ performance in comparison to
other conditions. This paper pays attention to Bowen and Ostroff’s (2004) framework of
human resource (HR) strength. This framework is based on the covariation principle of
the attribution theory (Kelley 1967, 1973), which predicts that HR practices will have a
stronger effect when they are perceived as distinctive, consistent and consensual (i.e. high
perceived HR strength). Previous research shows that HR strength is important to explain
the relationship between various HR practices and employees’ outcomes (Bednall, Sanders
and Yang 2022; Katou, Budhwar and Patel 2014; Sanders, Dorenbosch and de Reuver
2008).
However, we lack insights into the boundary conditions of the moderating effect of
HR strength (Bednall, Sanders and Yang 2022). In an attempt to solve this gap, scholars
have focused on internal organizational predictors such as HR event valence (Chacko
2019), high-performance work systems (HPWS; Katou et al. 2021; Sanders, Bednall and
Yang 2021; Van de Voorde and Beijer 2015), family motivation (Kitt and Sanders 2021)
and individual HR practices (Farndale and Sanders 2017; Li, Frenkel and Sanders 2011).
However, these studies have found that employees respond differently to the same HR
practices, leading researchers to speculate that few cultural factors are outside the control
of organizations and become responsible for the effect of perceived HR strength (Hewett
et al. 2018; Bednall et al. 2021; Kitt and Sanders 2021).
Despite a strong consensus that cultural factors play a significant role in defining HR
practices in many societies, the topic of religiosity, a dominant part of the culture, has not
recently emerged (Cooke 2018). Thus, Lynn, Naughton and VanderVeen (2011) argued
that religiosity could significantly impact employees’ behavior to a great extent. Therefore,
it is asserted that religiosity, defined as an individual’s religious beliefs and values that
keep them motivated in their work practices (Lynn, Naughton and VanderVeen 2009),
could be considered an important non-work-related imprinting factor as well as a
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Sumbal Babar et al.
personal resource that affects the moderating impact of perceived HR strength. Imprinting factors are the familial influences, hereditary values and non-work contextual factors
that can influence how people observe, interpret and attribute HR activities at their workplace (Kitt and Sanders 2021). Consequently, we assert that religiosity can be a resource
for employees who might build meaningful and motivational insights with work-related
outcomes (Babar, Obaid and Tariq 2020; Pandey and Singh 2019; Rana and Malik 2017).
Generally, HR research has neglected the potential link between religious views, management practices and organizational outcomes in the context of Pakistan (Abu Bakar,
Cooke and Muenjohn 2016; Bowra et al. 2012; Mellahi and Budhwar 2010; Rana and
Malik 2017). However, there are a few exceptions (e.g. Bowra et al. 2012; Farrukh, Wei
Ying and Abdallah Ahmed 2016; Osman-Gani, Hashim and Ismail 2013; Hassan, Bin
Nadeem and Akhter 2016), which reported religious employees perceived their job positively and higher performance outcomes. They also highlight it enabled them to remain
motivated and peaceful in their business life. Therefore, in this paper, we focus on religiosity as an imprinting factor, which is an underlying psychological mechanism in perceiving
motivation in the work context (Bakker and Dermotti 2017; Barrick et al. 2013; Han and
Oh 2020), as well as a boundary condition for the effect of perceived HR strength. It is
expected that perceived HR strength and religiosity can explain the strength of the relationship between PA quality and employee performance (Cook and Crossman 2004).
Thus, it is imperative to include personal job resources in organizational research in the
Asian context (Abu Bakar, Cooke and Muenjohn 2016), particularly in Pakistan.
Furthermore, a few areas are considered more vital in which the study of religion
should be conducted, and one of those areas is HR strength and its impact on performance in the Pakistani context (Riaz, Townsend and Woods 2020). Due to a lack of interest, the inclusion of religion in organizational studies is a substantial research gap that
connects religiosity and HR strength with employee performance. Thus, this study
attempts to gain more insights into the effects of religiosity and HR strength on employee
performance. Religiosity is used as a boundary condition to account for differences among
employees in different Telecom companies in Pakistan (Moschis and Ong 2011; Riaz,
Townsend and Woods 2020). It is crucial to research the boundary condition effect of
religiosity, as it significantly influences managers’ conduct (Kashif, Zarkada and
Thurasamy 2017), making employees more motivated to get clarity of the HR practices.
Thus, this research contributes by examining the double moderation roles of HR strength
and religiosity in the PAQ-performance relationship in the context of Pakistan.
To explain these boundary conditions, we draw on the job demand resource model
(JD-R) (Bakker and Demerouti 2017; Bakker, Nachreine and Schaufeli 2001). This model
focuses on job demands (i.e. psychological and social aspects that require sustained cognitive behavior associated with certain psychological costs) and job resources (i.e. working
conditions that become resources for employees). Specifically, the psychological and social
aspects of the job may reduce job demands and the associated costs in enhancing the performance of employees (Abu Bakar, Cooke and Muenjohn 2016; Bakker and Dermotti
2007; Demerouti et al. 2001). Although psychological aspects are important in the JD-R
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Asia Pacific Journal of Human Resources model, limited attention has been given to how these psychological aspects (Abu Bakar,
Cooke and Muenjohn 2016; Bakker and Dermotti 2007) jointly influence the effects of
perceived HR strength.
Altogether, this study contributes to the research on HR, perceived HR strength and
religion in the following ways. First, this study builds on the covariation principles of attribution theory (Kelley 1973) in the linkage between performance appraisal quality (PAQ)
and employee performance. It contributes by examining the moderation effect of perceived HR strength on the relationship between PAQ and employee performance. It is
expected that perceived HR strength will unambiguously provide employees with awareness and insight into the meaning of HR practices when it is highly distinctive, consistent
and consensual (Bednall, Sanders and Runhaar 2014; Bednall, Sanders and Yang 2022;
Ostroff and Bowen 2016). Also, by highlighting the gaps in previous research, this study
examines the boundary conditions of the effect of perceived HR strength in the Pakistani
context.
Secondly, this study aims to acquire more insight into the importance employees
assign to religiosity while performing at work. Through its practice, processes and beliefs,
we argue that religion can influence individual perceptions, attitudes and behavior (Lynn,
Naughton and VanderVeen 2009). Thus, this study contributes to the literature on religion by treating religiosity as a personal resource of salience in various cultures, particularly in Pakistan. Notably, by using the lens of the JD-R model, attention is paid to the
personal resources of individuals (i.e. psychological states), which affects jobholders’
motivation and performance (Bakker, Demerouti and Euwema 2005). Therefore, this
study tests this effect and extends and connects the theories of perceived HR strength and
JD-R to consider HR strength and religiosity as important personal resources. It is argued
that perceived HR strength is affected by employees who believe religiosity as a strength
and might perceive self-development (i.e. a sense of being refreshed spiritually), work
enhancement and determination to do work, all of which trigger performance.
Finally, this study contributes to the literature by testing the hypotheses through a
two-wave, multi-actor data set collected in an Islamic country, Pakistan. Based on the previous literature, most research on religiosity has been carried out in Christian and western
countries (for reviews, please see Tracey 2012; Heliot et al. 2020). Thus, this study aims to
add to the existing literature by focusing on a specific Asian Muslim country, that is, Pakistan. Arguably, religiosity influence can be considered predominant in Pakistan, wherein
96.28% of the population is Muslim (Pakistan Bureau of Statistics n.d.). Hence, religiosity
will be expected to influence employee perceptions of HR strength using coping, calling,
motivation and meaningfulness in work (Khilji 2003; Lynn, Naughton and VanderVeen 2009). Pakistan is expected to be an exemplary country where principles of religion are practiced openly. Therefore, by introducing ‘religiosity’ as a personal job
resource at work in the Islamic community, JD-R theory is extended to a new context (i.e.
the Islamic community). The theoretical model of our study is shown in Figure 1.
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Sumbal Babar et al.
HR process
Perceived HR strength
Religiosity
HR content
Performance appraisal quality
Employee performance
Figure 1 The proposed model
Theoretical elaboration and hypotheses
HRM and employee performance
Given the significance of employee performance as a job behavior, it is considered the
most crucial employee outcome in management theory and research (Eatough, Chang,
Miloslavic and Johnson 2011; LePine et al. 2016; Naseer et al. 2020; Pak and Kim 2018).
Griffin, Neal and Parker (2007) defined employee performance as proficient behavior of
an employee formally meeting job requirements, proactive behavior of the employee in
taking self-directed actions and adaptive behavior to cope with changes at work. We argue
that these behaviors are highly effective at work when HR practices are communicated to
employees through clear and distinct signaling mechanisms (Bednall, Sanders and Runhaar 2014). From an organizational perspective, the organization’s performance is the
function of the sum of the individual performances of its employees (Paauwe 2009).
Therefore, this is critical for a holistic understanding of factors influencing work performance at organizational and individual levels (Audenaert et al. 2019; Cooper et al. 2019;
Guest 2011; Tuckey, Brewer and Williamson 2002).
The link between PAQ and employee performance
Bednall, Sanders and Runhaar (2014) defined PAQ in terms of clarity, regularity and
openness as an antecedent of improvement in employee performance. Clarity refers to
understanding the PAQ process and its purpose in clear terms, whereas regularity refers to
providing feedback at regular intervals when judging performance for improved execution. Openness is the level of communication wherein the supervisor provides feedback
on the PA that can account for an employee’s task efficiency (Brown, Hyatt and Benson
2010; Curzi et al. 2019; DeNisi and Murphy 2017; DeNisi and Sonesh 2010). When managers deliver certain HR practices (i.e. PA) with clarity, regularity and completeness, it
encourages insightful feedback results in proactiveness and proficiency in employee performance (Macneil 2001). Previous studies (Rasheed, Yousaf and Noor 2011) indicate
that when discussions are not open, it weakens the signaling system, which does not result
in employees’ expected level of performance. Ikramullah et al. (2016) argue that openly
delivered feedback and rationalized performance ratings enhance the effectiveness of
Ó 2022 Australian Human Resources Institute (AHRI).
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Asia Pacific Journal of Human Resources employee performance (Kluger and DeNisi 1996; Obaid 2013; Selvarajan, Singh and
Solansky 2018).
Therefore, by clearly defining the performance matrices by managers, high-quality PA
may lead to improved performance in terms of effectiveness, adaptiveness and proactiveness (Selvarajan and Cloninger 2012). The first hypothesis of this study is formulated as
follows:
Hypothesis 1: Performance appraisal quality is positively related to employee
performance.
Bringing perceived HR strength into the model
Based on the covariation principle of attribution theory (Kelley 1967, 1973), Bowen and
Ostroff (2004) defined a strong HR system as high in distinctiveness, consistency and consensus. Relying on the theoretical model of situational strength by Mischel (1977), Bowen
and Ostroff propose that a ‘strong’ HR system conveys clear signals about the organization’s expectations, and employees interpret these signals accordingly. Conversely,
employees interpret signals idiosyncratically, making the HR system weak. The organization’s goals must be clearly defined and communicated to employees to stimulate performance (Chacko and Conway 2019). Consequently, when perceived HR strength is high, it
will increase the effects of PAQ, which enhances employee performance. Research shows
high HR strength is more likely to improve performance (Sanders and Yang 2016; Alfes
et al. 2019). Bednall, Sanders and Runhaar (2014) observed that PAQ was associated positively with innovative behavior, and the relationship was strongly positive when employees perceived the HR system as more consistent, distinctive and consensual.
In this study, PAQ and perceived HR strength are in sync and convey a clear message
about management’s expectations and what is required from employees (Bowen and Ostroff 2016; Sanders et al. 2018; Wang et al. 2020). Notably, it is argued that perceived HR
strength is considered a resource and relates to the JD-R framework due to distinctive,
consistent and consensual information. Previous studies have not highlighted this significant gap to consider HR strength as a resource. Thus, this study is the first to consider perceived HR strength as a personal resource of the employees by aligning it with the JD-R
theory. We contend that when the HR system is perceived as highly consistent, distinctive
and consensual by employees, they attribute HR practices to management and try to
implement these practices intended by management (Sanders, Shipton and Gomes 2014;
Katou, Budhwar and Patel 2021; Sanders, Bednall and Yang 2021). Conversely, when the
HR practices’ distinctiveness, consistency and consensus are low, employee understanding
becomes less clear about management intentions and expectations, and HR practices will
become less efficient. The following hypothesis is thus formulated:
Hypothesis 2: Perceived HR strength moderates the relationship between PAQ and
employee performance, such that the relationship is stronger when HR strength is
high rather than low.
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Sumbal Babar et al.
Religiosity as an employee’s personal resource and an imprinting factor
The JD-R model (Bakker and Demerouti 2017) describes the psychological states of experiencing meaningful work (i.e. employees considering their job meaningful and motivational). Hence, seeking responsibility in work outcomes due to religious perspectives
motivates employees and develops self-awareness, positively affecting performance.
Though psychological aspects are key in the JD-R model, limited empirical support has
been found for religiosity as a psychological aspect in perceiving meaningfulness and
motivation in work (Abu Bakar, Cooke and Muenjohn 2016; Bakker and Dermotti 2007;
Lin, Hong, Xiao and Lian 2020). The research context of this study is Pakistan, where an
employee’s upbringing from childhood is based on principles of religious beliefs. Hence,
it is argued that religiosity pursues meaning in work and serves as a source of motivation
to perform well (Lynn, Naughton and VanderVeen 2009). It somewhat reflects the religious beliefs and teachings of an Islamic community (Braam and Koeing 2019). For
instance, a person’s religiosity is their internal strength in portraying their personal identity to form meaning in their work (Kashif et al. 2017; Gallego-Alvarez, RodrıguezDomınguez and Martın Vallejo 2020; Hart and Brady 2005; Nadeem and
Mumtaz 2018).
Similarly, Voydanoff (2001) asserts that domains such as recreational activities, family, religious and social involvements are part of the non-work domain (Greenhaus and
Parasuraman 1987; Sarkar 2019; Sekaran 1986). Theoretically, religiosity is significant at
work because it provides a unique lens through which employees ascribe meaning to their
day-to-day work events (Granqvist, Mikulincer and Shaver 2010; Kearns and Tyler 2020).
For instance, high religiosity increases the meaning derived from work, favorably impacting employee outcomes (Bickerton et al. 2014; Kearns and Tyler 2020).
Studies highlight that employees who follow work ethics, frequently pray (Berggren
and Bjørnskov 2011; Hassan et al. 2019), seek coping and calling (see Lynn 2011; Lynn,
Naughton and VanderVeen 2009) are found to be motivated and seek meaningfulness in
their work performance. In the Pakistani context, the beliefs mentioned above are synchronized with the religious teachings of Islam as well (Osman-Gani, Hashim and
Ismail 2013; Usman et al. 2017). It is contended that these religious beliefs influence
employees’ perceptions of seeking meaningfulness which keeps them motivated (Babar,
Obaid and Tariq 2020). In this way, people who are intrinsically dedicated to their religion benefit from an implicit kind of self-regulation that allows them to seek high standards while maintaining their well-being (Koole, McCullough, Kuhl, and Roelofsma
2010). Moreover, this study asserts that employees who consider their religiosity a
strength pursue meaning in their work, which helps them combat difficulties at work.
Due to personal resources as a religiosity, employees remain motivated to understand
transparent HR practices. Consequently, it is predicted that religiosity will illustrate the
impact of perceived HR strength in providing PAQ and improving employee performance. The following hypotheses are thus formulated accordingly:
Ó 2022 Australian Human Resources Institute (AHRI).
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Asia Pacific Journal of Human Resources Hypothesis 3: Religiosity will moderate the effect of perceived HR strength on the
relationship between PAQ and employee performance, such that the effect of perceived HR strength is stronger when religiosity is high rather than low.
Methodology
Sample and procedures
This study gathered time-lagged and multi-source (employees and their reporting managers) data from five telecom companies in major cities of Pakistan. The telecommunication industry is a prime example of an industry where competition is accelerated. Data
were randomly collected from employees and managers working in various managerial
positions. The reporting managers of employees were responsible for communicating
feedback on their performance. This study collected multi-source data by distributing separate questionnaires to the employees and managers for controlling potential common
source biases (Podsakoff and Organ 1986).
Moreover, the surveys were distributed at two-time points (i.e. 1-month intervals) to
minimize common method concerns (Johnson, Rosen and Djurdjevic 2011). Data were
collected before and after the PAs were conducted in these telecom companies. Managers
were asked to rate employee performance at Time 1 and Time 2 (Wright et al. 2005),
while employees were asked to rate the PAQ, perceived HR strength and religiosity. At the
same time, we controlled for Time 1 performance ratings and used only Time 2 employee
performance ratings (Wright et al. 2005).
Before collecting data from employees, participants were assured that confidentiality
would be maintained regarding the performance ratings assigned by their supervisors.
Surveys were distributed to 74 managers and their 550 subordinates. Incomplete data were
omitted and only matched data were included: data collected from current managers and
their employees at Time 1 (68 supervisors and 410 employees). Final data, including Time
2 ratings, involved 61 supervisors and 391 employees with a response rate of 81% at the
supervisor level and 75% at the subordinate level, respectively. Among the participating
managers, 82% were male, with an average age of 38.08 years (SD = 7.87). Among the
participating employees, 77% were male, with an average age of 37 years (SD = 8.7), and
average tenure with the current supervisor was 3.80 months (SD = 3.70).
Measures
Performance appraisal quality
Performance appraisal quality was assessed using a three-item scale developed by Sanders,
Dorenbosch and de Reuver (2008). An example item is ‘My supervisor keeps open communication with me in my job’. Respondents were asked to rate the items on a 6-point
Likert scale as 1 = ‘strongly disagree’ to 6 = ‘strongly agree’.
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Sumbal Babar et al.
Employee performance
For Time 1 and Time 2, employee performance was assessed by the managers using a
nine-item scale developed by Griffin, Neal and Parker (2007), with three sub-dimensions.
The sample items for task proficiency, task adaptability and task proactivity were ‘This
employee ensured their tasks were completed properly’, ‘This employee coped with
changes in the way they had to do the core tasks’ and ‘This employee communicated effectively with their co-workers’, respectively. Respondents were asked to rate the items on a
6-point Likert scale as 1 = ‘strongly disagree’ to 6 = ‘strongly agree’.
Perceived HR strength
Seventeen items were adapted from Delmotte, De Winne and Sels (2012) for measuring
perceived HR strength through three dimensions, namely distinctiveness, with sample item
as ‘When one asks the HR department for help, they provide clear answers’; consistency,
with sample item as ‘The HR instruments for staff appraisal succeed in reinforcing the
desired behaviours’; and consensus, with sample item as ‘Employees consider promotion
as fair in this organization’. Respondents were asked to rate the items on a 6-point Likert
scale as 1 = ‘strongly disagree’ to 6 = ‘strongly agree’.
Religiosity
Religiosity was assessed through seven items adapted from the Lynn, Naughton and VanderVeen (2009) scale. A sample item is ‘I pursue excellence in my work because of my
faith’, which was rated on a 6-point Likert scale as 1 = ‘strongly disagree’ to 6 = ‘strongly
agree’. A subset of items from Lynn, Naughton and VanderVeen’s (2009) 15-item scale
was used. Religiosity assesses the integration of an individual’s religious faith at work.
More particularly, this study selected seven items by three content experts and deemed
them to represent the meaning and motivations linked with coping, calling and meaningfulness as divine calls. Seven out of 15 items were selected, and three items were further
removed due to low reliability. These items included: 1) ‘I view my work as a mission from
Allah’; 2) ‘I sense Allah’s presence while I work’; and 3) ‘I see my work as a partnership
with Allah’. The seven items were averaged to create a mean religious calling, coping and
meaning scale. The reliability of the seven-item scale was reported as a = 0.84, while previously Lynn, Naughton and VanderVeen (2009, 2011) reported it as a = 0.77 and 0.75.
The other items differed conceptually and were related to interactions with co-workers in
the religiosity scale. Thus, we did not include these items in our scale. These items
included the following: ‘I view my co-workers as made in the image of God’; ‘I sacrificially
love the people I work with’; and ‘My co-workers know I am a person of faith’.
Control variables
Control variables were selected and examined statistically based on theoretical support
from previous literature (Becker 2005; Bernerth and Aguinis 2016). To determine the
effect of demographic variables on the employee performance Time 2 (i.e. dependent variable), we controlled for characteristics such as age in years, gender, employee–manager’s
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Asia Pacific Journal of Human Resources tenure. Whereas, to control for employee performance Time 1, we followed the procedure
mentioned in the study (Wright et al. 2005) who controlled for the performance ratings at
Time 1 in a similar manner. In the studies of Ng and Feldman (2009, 2010) and (Guan
and Frenkel 2018) they also controlled for employee performance ratings to rule out the
effect of manager’s unique rating style.
RESULTS
Testing the measurement model
A confirmatory factor analysis (CFA) was conducted using AMOS 23.0 to evaluate the
variables’ distinctiveness for testing the measurement model. The model for this study
consists of items for the four latent variables (i.e. PAQ, religiosity, perceived HR strength
and employee performance). Table 1 shows that the four-factor model (v2/df = 2.54,
CFI = 0.94, TLI = 0.92, RMSEA = 0.047) fits the data best. Moreover, the four-factor
model demonstrated better results than the three other alternative models. Thus, the distinctiveness of the variables in this study was demonstrated.
Table 2 shows the reliability and correlations among all variables of the study. As seen
in Table 2, PAQ (r = 0.22, p < 0.05), perceived HR strength (r = 0.24, p < 0.01), and
religiosity (r = 0.08, p < 0.01) were positively related to employee performance. Religiosity was positively related with employee performance (r = 0.09, p < 0.01).
Hypothesis testing
For testing the hypotheses of this study, hierarchical regression analysis was performed by
using STATA 14.0. In model 1, employee performance was regressed on all control variables to the empty model. Employee’s age was positively related to employee performance
(b = 0.39, p < 0.05). At the same time, gender and manager tenure were not significantly
related to employee performance. Next, the main effect of PAQ in model 2 of Table 3 was
added to test hypothesis 1. In hypothesis 1, we hypothesized that PAQ is positively related
to employee performance. The findings presented in Table 3 illustrate a significantly positive relationship between PAQ and employee performance (b = 0.13, p < 0.01). Hence
hypothesis 1 was supported.
Before testing the study’s second hypothesis, we mean-centred the variables’ PAQ and
perceived HR strength before computing the interaction terms to reduce multicollinearity
issues (Aiken and West 1991). In hypothesis 2, we hypothesized that perceived HR
strength moderates the relationship between PAQ and employee performance. For testing
the moderation hypothesis, the main effect of perceived HR strength and its interaction
(HRS * PAQ) were added to model 2 (for results, see model 3). Findings show that perceived HR strength (b = 0.24, p < 0.01, model 2) was positively related to employee performance after controlling for gender, age and experience. Moreover, a significant twoway interaction moderation effect (b = 0.11, p < 0.05, model 3) was reported, supporting
hypothesis 2. Model 3 of Table 3 showed that the association between PAQ and employee
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Sumbal Babar et al.
Table 1 Results of confirmatory factor analyses
Model
Variables
v2/df
IFI
TLI
CFI
RMSEA
One-factor model
Two-factor model
Three-factor model
Four-factor model
EP + PAQ + REL + HRS
EP; PAQ + REL + HRS
EP; PAQ; REL + HRS
EP; PAQ; REL; HRS
4.98
3.55
2.34
1.09
.743
.801
.833
.930
.721
.787
.874
.925
.734
.800
.882
.930
.089
.079
.061
.047
Baseline
model
n = 391.
TLI = Tucker-Lewis’s index; IFI = incremental fit index; CFI = comparative fit index; PAQ = performance appraisal quality; HRS = human resource strength; REL = religiosity; EP = employee
performance.
performance was significant when perceived HR strength was distinctive, consistent and
consensual. Thus, hypothesis 2 was supported. The graph of this interaction is plotted in
Figure 2. The findings of the interaction graph indicated a positive relationship between
PAQ and employee performance for both high and low perceived HR strength. The positive slope was stronger for high HR strength (b = 0.48, p < 0.05) than for low HR
strength, as presented in Figure 2.
In hypothesis 3, we hypothesized a three-way interactive relationship between PAQ,
perceived HR strength and religiosity with employee performance. The findings presented
in model 5 of Table 3 show that the three-way interactive relationship was significant with
employee performance but in the opposite direction after considering all main effects and
two-way interactions added in model 4 (see model 5 for results, b = 0.40, p < 0.05).
Figure 3 plots the three-way interactive association. Therefore, hypothesis 3 was not supported. Results showed that religiosity does not directly impact employee performance.
Rather, religiosity and perceived HR strength function as boundary conditions in buffering employee performance.
Figure 3 illustrates that the effects of perceived HR strength and religiosity likely compensate for each other. It shows the low perceived HR strength/high religiosity and high
perceived HR strength /low religiosity combinations have a positive effect (b = 0.48,
p < 0.05). When perceived HR strength is high, religiosity is less important and vice versa
for the relationship between PAQ and employee performance. For plotting the significant
interactions graphically, simple slopes analyses were conducted by using values of 1 SD (standard deviation) below the mean and 1 SD above the mean of both the moderators
(Zhong, Wayne and Liden 2016; Aiken and West 1991). Therefore, these results
(b = 0.48, p < 0.05) show a compensation perspective since the PAQ influences the performance of employees with lower religiosity whose perceptions about HR strength are
high (or the other way around). In comparison, the combinations of high/high (b = 0.18,
ns) and low/low (b = 0.12, ns) do not strengthen the relationship between PAQ and
employee performance.
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Performance appraisal quality
Religiosity
Perceived HR strength
Employee performance (T2)
Employee performance (T1)
Manager tenure
Gender manager
Gender employee
Age of manager
Age of employee
3.08
2.57
3.18
2.87
2.72
4.84
1.46
1.54
38.9
37.2
Mean
.71
.57
.78
.89
.81
3.0
0.4
0.4
7.8
8.7
SD
(.88)
.288*
.475**
.179**
.145**
.008
.066
.027
.090
.074
1.
(.83)
.161**
.198*
.086*
.068
.004
.016
.10*
.10
2.
(.92)
.233**
.212**
.020
.019
.028
.011
.003
3.
(.94)
.231*
.114*
.106*
.020
.003
.110
4.
(.91)
.052
.195**
.049
.031
.112
5.
.041
.008
.002
.09
.06
6.
.025
.014
.63**
.014
7.
.022
.16*
.213
8.
N = 61 managers and 391 employees; Significance at: *p < 0.05; **p < 0.01.
Values in parentheses in diagonal are reliabilities. Gender: 1 = female, 2 = male, PAQ = performance appraisal quality, REL = religiosity.
1
2
3
4
5
6
7
8
9
10
Variable
Table 2 Descriptive statistics and correlations for the study variables
.121
.132
9.
.014
10.
Asia Pacific Journal of Human Resources Ó 2022 Australian Human Resources Institute (AHRI).
Sumbal Babar et al.
Table 3 Regression results of employees’ performance
Variables
Employee performance Time 2
Model 1
Model 2
Model 3
Model 4
Model 5
.011
(.118)
.396*
(.236)
.088
(.371)
.112*
(.071)
.132*
(.071)
.269***
(.0823)
.259
(0.172)
.0365
(.113)
.399*
(.227)
.148
(.358)
.118*
(.079)
.504**
(.218)
.244***
(.173)
.324
(0.162)
.0523
(.113)
.414*
(.227)
.099
(.358)
.123*
(.081)
.563
(.347)
.246***
(.173)
.401*
(1.696)
.0541
(.114)
.393*
(.228)
.108
(.359)
.117*
(.068)
.492***
(.711)
.274***
(.173)
.403**
(1.619)
.0650
(.113)
.387*
(.227)
.061
(.358)
.111*
(.070)
.117*
(.064)
.114*
(.065)
.057*
(.191)
.126*
(.065)
.151**
(.545)
.893
(.972)
391
.302
.167
440.4
4.041
.416**
(.188)
.852
(.967)
391
.312
.176
437.7
4.135
Main effects
PAQ (H1)
Perceived HR strength
Religiosity
Gender of employee; 1 if male
Age of employee
Manager tenure
Employee performance Time 1
Two-way interaction
PAQ 9 HRS (H2)
PAQ 9 religiosity
Three-way interaction
PAQ 9 religiosity 9 HRS (H3)
Constant
Observation
R2
Adjusted R2
Log-likelihood
F-statistics of model fit
1.193
(.986)
391
.231
.0988
459.4
9.070
1.015
(.956)
391
.293
.164
443
5.328
.794
(.961)
391
.300
.170
441
5.066
***p < 0.01, **p < 0.05, *p < 0.1 (standard errors are in parentheses).
PAQ = Performance appraisal quality; HRS = human resource strength; REL = religiosity; EP =
employee performance.
Discussion
This study provides several implications for organizations that face challenges to improve
employee performance. The findings of this study suggested that PAQ (HR content) and
perceived HR strength (HR process) positively impact employee performance. PAQ with
high clarity, openness and regularity, along with the moderating influence of HR strength
Ó 2022 Australian Human Resources Institute (AHRI).
13
Asia Pacific Journal of Human Resources Low PERCEIVED
HR STRENGTH
High PERCEIVED
HR STRENGTH
EMPLOYEE PERFORMANCE
5
4.5
4
3.5
3
2.5
2
1.5
1
LOW PERFORMANCE
APPRAISAL QUALITY
HIGH PERFORMANCE
APPRAISAL QUALITY
Figure 2 Employee performance as a function of performance appraisal quality and perceived HR
strength
5
EMPLOYEE PERFORMANCE
4.5
4
(1) High PERCEIVED HR
STRENGTH, High RELIGIOSITY
3.5
(2) High PERCEIVED HR
STRENGTH, Low RELIGIOSITY
3
(3) Low PERCEIVED HR
STRENGTH, High RELIGIOSITY
2.5
(4) Low PERCEIVED HR
STRENGTH, Low RELIGIOSITY
2
1.5
1
LOW PERFORMANCE
APPRAISAL QUALITY
HIGH PERFORMANCE
APPRAISAL QUALITY
Figure 3 Employee performance as a function of performance appraisal quality, perceived HR
strength and religiosity.
14
Ó 2022 Australian Human Resources Institute (AHRI).
Sumbal Babar et al.
(i.e. high distinctiveness, high consistency and high consensus), appears to increase
employee performance in terms of proficiency, adaptability and proactivity. These positive
effects of PAQ and perceived HR strength are aligned with Kelley’s (1973) covariation
principles and Bowen and Ostroff’s (2004) model. Results showed that religiosity
(b = 0.32, ns, model 3) did not directly impact employee performance; rather, it was
based on the combined rationale of the covariation principles of the attribution theory
(Kelley 1967, 1973). Furthermore, the JD-R, religiosity and perceived HR strength function as boundary condition effects in buffering employee performance. Based on previously reported literature (e.g. Heliot et al. 2020), most of the research on religiosity has
been carried out in Christian and western countries. Thus, this research aims to add to the
existing literature by focusing on a specific Asian Muslim country – Pakistan. It is argued
that spirituality and religiosity are considered well-known factors that can increase commitment, job satisfaction and employee performance (Bal and K€
okalan 2021; Farrukh
et al. 2021; Mathew, Prashar, Ramanathan, Pandey and Parsad 2019). More specifically,
people with a higher religiosity showed stronger positive attitudes such as internal motivation and meaningfulness, were found to be more satisfied and committed to their organizations (Darto, Setyadi, Riyadi and Hariyadi 2015; Ghazzawi, Smith and Cao 2016), and
showed higher performance (Behere, Das, Yadav and Behere 2013; Hassan, Bin Nadeem
and Akhter 2016). Thus, it is contended that religious teachings and values make employees understand the importance of the job meaningfully. Therefore, our study contributes
to the extant literature on religiosity in Pakistan, as this topic is still not covered fully.
Interestingly, a positive relationship between religiosity, work and performance was
expected in Lynn’s (2009) seminal paper (Walker 2013). However, the results were
insignificant, and Lynn’s and Walker’s observations were not supported. Therefore, integrating work and religiosity showed lower rather than higher levels of self-reported performance. Another explanation is that in a society where religiosity appears very important,
highly religious employees may expect more favorable performance ratings (i.e. as
opposed to their actual performance) from their managers (Riaz, Townsend and
Woods 2020). It is thus argued that employees’ personal resources (i.e. being religious)
adversely impact their performance; instead of considering their work as meaningful and
becoming more motivated, employees may start expecting favors, which might change
religiousness into a weakness rather than a strength in the context of an Islamic
community.
It also illustrates a three-way interactive relationship that shows a logical and systematic results through a compensation effect. By examining the results of the three-way
interaction, the low/high and high/low combinations were found to have a positive effect,
such that the effects appeared to compensate for each other; when perceived HR strength
was high, religiosity was less important and vice versa. Therefore, the results of this study
are explained from a compensation perspective as follows: appraisal quality influences the
performance of less religious employees compared to higher religious employees whose
perceptions about HR strength are higher.
Ó 2022 Australian Human Resources Institute (AHRI).
15
Asia Pacific Journal of Human Resources Theoretical implications
This empirical research is unique in many ways, and it contributes to knowledge and
understanding in three significant ways. First, understanding the importance of specific
HR practices (i.e. PAQ) within Pakistan fills a gap in the literature on the importance to
examine quality (i.e. clarity, regularity and openness) dimensions in assessing the PA of
employees (Bednall, Sanders and Runhaar 2014; Sanders, Dorenbosch and de Reuver 2008). Although earlier research has focused on the direct effects of PAQ (Brown et al.
2010), we lack knowledge on the boundary condition effects of PAQ on employee
outcomes.
Secondly, the mechanism of how JD-R is linked with Bowen and Ostroff’s (2004)
model was assessed by testing the effects of religiosity on perceived HR strength’s boundary conditions. According to the JD-R theory, an employee’s performance could be
enhanced by optimizing job conditions as a crucial psychological state. Thus, this study
aims to contribute to the JD-R by associating personal job resources as a crucial psychological state (i.e. psychological mechanisms, such as an employee’s personal resource of
religiosity that keeps employees motivated in their work) that lead to achieving efficient
job performance. In the HRM-performance link, employees’ complex psychological states
should be considered while evaluating employees’ personal job resources.
Thirdly, by considering religiosity as a personal resource, this study contributes to the
existing literature on religion and supports Abu Bakar, Cooke and Muenjohn’s (2016)
study by extending the JD-R theory into a new context: an Islamic community. This study
examined personal job resources as a moderator in the relationship between PAQ and
employee performance. Personal job resources have often been tested as mediating mechanisms between HR content and outcome variables, such as organizational citizenship
behaviors (OCB), job commitment, job satisfaction and turnover (Gillet and Vandenberghe 2014; Piccolo and Colquitt 2006). In contrast, this study argues that personal job
resources could be tested as a moderator because it is considered a situational factor in
organizations that should be more dependent on formal job descriptions and, more
importantly, dependent on the job’s nature (Bakker et al. 2017). There is, though, existing
research supporting this presumption that job resources are regarded as an important
condition of performance evaluations rather than a causal mechanism (Kraemer et al.
2008).
Lastly, PA evaluations can efficiently improve job performance when religiosity (as a
source of motivation and meaningfulness in work) is deficient in the fewer job resources.
This study extends the findings of previous studies (Abu Bakar, Cooke and Muenjohn 2016) regarding how personal job resources – in this case, religiosity – alter the individual meaningfulness of work and job performance in the Islamic community.
Practical implications
The findings support the signaling perspective of the HRM system, which might help
managers ensure a consistent, distinctive and consensus-driven message at work to
improve employee performance. HR practitioners should consider non-work-related
16
Ó 2022 Australian Human Resources Institute (AHRI).
Sumbal Babar et al.
factors such as the personal resources of employees when conveying HR signals and
designing HR systems. HR strength appears to play a more significant role in stimulating
proactive behavior and positive employee reactions.
The study also raises organizational awareness about multi-cultural organizations in
which religiosity might not be considered an integral part of HRM, although it could have
a positive impact on performance (Fernet et al. 2015; Lysova et al. 2019). Therefore, religiosity could play a role in a country like Pakistan when it is considered an employee’s
resource and positively impacts their behavior. Unfortunately, the expression of religiosity
is deliberately suppressed in most countries. Open expression of employees’ religiosity
might result in positive work outcomes (Walker, Smither and DeBode 2012). Given the
growing research, employees’ religious beliefs could positively impact their motivation
and performance in the workplace (Hassan et al. 2016; Osman-Gani, Hashim and
Ismail 2013). So, given the high religiosity within Pakistan, perceived HR strength is considered less important. Consequently, organizations must consider the personal resources
of employees to make them work efficiently.
This research also highlights how individual capacity motivates for greater organizational good and effectively promotes an individual’s in-role performance (Han and Oh
2020). Modern societies have become materially abundant, and people tend to be interested in working for organizations that supply services with ‘meaning’ and ‘motivation’.
Thus, organizations must pay more attention to employees’ religiousness to distinguish
themselves in the workplace by providing employees with self-worth and meaning to work
(Moon et al. 2018; Shachar et al. 2011). Managers should pay particular attention to the
importance of personal factors (e.g. religiosity) in enhancing individuals’ performance.
Therefore, PA evaluation should not be the only reason for employees to work harder.
Based on the moderating role of religiosity, which is a source of perceived meaningfulness, between PAQ and employee performance, meaningfulness is expected to provide
instant motivation that enhances performance. Thus, organizations might consider religiosity an important factor that affects meaningfulness at work and a crucial indicator to
ensure performance evaluations, which clarify the perceived HR strength and positively
impacts employee performance.
Limitations and future research directions
This research collected data in two waves using a time-lagged design with a 1-month interval gap to strengthen the research design. However, several limitations should be
addressed and should serve to guide future researchers. First, this study exclusively
focused on individual-level perceptions of employees and managers and organizationlevel variables were not included. Thus, future research should also consider unit and
organizational levels. Second, although the impact of a personal resource, imprinting factor (as a non-work-domain) on the effect of HR strength was examined in the Pakistani
context, the impact of other core variables with traditional Pakistani imprinting factors
were not studied. For instance, spirituality as a personal resource and family structures as
an imprinting factor might influence the relationships analyzed in this study. In the
Ó 2022 Australian Human Resources Institute (AHRI).
17
Asia Pacific Journal of Human Resources future, researchers may investigate the impact of different variables in demonstrating the
uniqueness of the Pakistani context and culture. Third, the three-way interactive effect
could not be replicated with another data set due to time limitations. Future researchers
could replicate the model for further generalizability of results. Fourth, the Islamic notion
of ‘religiosity’ is only generalizable to the Islamic community. Hence, the results of this
study are not expected to be generalizable to non-religious countries (please see Birnbaum, Farh, and Wong 1986; DeVaro, Li and Brookshire 2007). Lastly, we highlight that
most studies adopt quantitative designs and methods to investigate religious impact on an
individual’s values and behavior (e.g. Abu Bakar, Cooke and Muenjohn 2016; Lynn,
Naughton and VanderVeen 2011; Parboteeah, Paik and Cullen 2009; Osman-Gani,
Hashim and Ismail 2013). Thus, future researchers are encouraged to explore the influence of religiosity qualitatively in Pakistan and other Muslim Asian countries from an
HRM perspective.
Conclusion
This study evaluates a personal job resource – religiosity – and how this factor may
enhance the three-way interactive effect between PAQ, perceived HR strength and religiosity on employee performance. It contributes to and supports Bowen and
Ostroff’s (2004) framework explaining the interplay between PAQ, perceived HR strength
and religiosity on employee performance. It contributes to the existing literature by factoring in the HR strength, which provides unambiguousness in employees’ perceptions of
PAQ when employees clearly interpret what is expected from them. The findings of this
research support the HRM system’s signaling perspective, which might help managers
ensure distinctive, consistent and consensus-driven messages at work to improve work
performance. Thus, better support could be provided to the employees by the organization through a greater understanding of what motivates religious employees at work in
getting clear instructions about HR practices.
Funding
This research does not receive any funding from any organization.
Author contributions
All the authors and co-authors contribute collectively to the research design and implementation. The author(s) read and approved the final manuscript.
Data availability statement
The datasets used during this research are available from the corresponding author on reasonable request.
18
Ó 2022 Australian Human Resources Institute (AHRI).
Sumbal Babar et al.
Sumbal Babar is a PhD candidate in Business Administration at the NUST Business School,
National University of Sciences and Technology. Her research focuses on the HR process approach,
in particular the impact of employees’ perceptions, understanding and attributions of HR on their
behaviors.
Asfia Obaid is an Associate Professor in Management and Head of Department of Management
and Human Resource at NUST Business School, National University of Sciences and Technology,
Islamabad, Pakistan. She received her PhD in Business Administration from Manchester Business
School, University of Manchester, UK. She has made contributions to knowledge through various
avenues that include delivering training sessions, consulting with organizations on industry-specific
problems, publishing of research articles, conducting research grant projects. Her core areas of
interest include Strategic HR, Compensation and Performance Management.
Karin Sanders (PhD) is a Professor of Human Resource Management (HRM) and Organizational
Behavior at UNSW Business School, UNSW Sydney, Australia. Her work has been published in
journals such as Human Resource Management, Human Resource Management Journal, Journal of
Vocational Behavior, Academy of Management Learning & Education, Organization Studies and
Organization Science. Her research activities focus on the antecedents and consequences of employees’ understanding and attribution of HRM.
Hussain Tariq is an Assistant Professor of Management at KFUPM Business School, and a member
of Interdisciplinary Research Center for Finance and Digital Economy (IRC-FDE), King Fahd
University of Petroleum and Minerals, Dhahran, Saudi Arabia. He worked as an Assistant Professor
of Management at NUST Business School, National University of Sciences and Technology, Pakistan, and also completed his post doc from the University of Science and Technology of China,
China. He received his PhD in organizational behavior and human resource management from the
School of Management, University of Science & Technology of China. He has published his work in
Applied Psychology, Personnel Review, Employee Relations, Journal of Knowledge Management,
Business Ethics, Journal of Service and Practice amongst others. His current research focuses on the
root of destructive leader behaviors, structures and practices that enhance teamwork and collective
motivations in organizations.
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