The Effects of Human Resource Strength and Social Identification on Employee Performance: The Case of Bangladeshi Private Commercial Banks

ABSTRACT This study was carried out in two private commercial banks in Bangladesh. The purpose was to examine the effects of HR strength on the social identification of employees through the interactions of employees with their line managers and relationships within work groups and ultimately employee performance. Underpinned by social identity theory, we tested three hypotheses using 436 respondents. Findings confirmed our hypotheses: social identification mediated the relationship between HR strength and employee performance; social interaction with the line manager and social identification sequentially mediated the relationship between HR strength and employee performance; and the quality of relationships within the work team and social identification sequentially mediated HR strength and employee performance. We contribute to new understandings of the role of social identification processes in explaining the link between HRM and employee performance in high power distance and collectivist cultures. Implications are drawn for HR managers by demonstrating the role of HR strength and social identification in supporting employee performance.