HUMAN RESOURCE PRACTICES AND EMPLOYEE OUTCOMES: AN EXAMINATION OF PERFORMANCE, SATISFACTION AND DIVERSITY CLIMATE IN THE HOSPITALITY SECTOR OF SAUDI ARABIA
Tourism and related industries have become essential economic activities that play a significant role in the development, prosperity, and well-being of a country. The tourism and hotel sector in the Kingdom of Saudi Arabia (KSA) is currently undergoing significant development to diversify the national economy in line with the KSA Economic Vision 2030 Initiative. To align this sector with international standards in terms of job satisfaction and performance, human resource management practices (HRMPs) play a key role in determining the job satisfaction of employees in their various work environments. HRMPs include various job-related activities, training and development (T+D) programs, rewards, performance management, and promoting participation. The main focus of HRMPs is, therefore, to develop employees and create a positive work environment. Although there is active academic research worldwide on the potential relationship between HRMPs and employee performance, little has been written about this relationship in the Saudi hotel industry. This study examines the relationship between four HRMPs and job performance of employees based on job satisfaction, particularly attention to the impact of different work climates. A quantitative research design was used to obtain data from hotel sector managers in the KSA. Probability sampling was used to collect data from four cities in Saudi Arabia. Data was collected from 700 participants using a questionnaire. In addition, the structural equation modeling (SEM) technique was used to test the validity of the study\u27s measurement and structural model using SMART-PLS. The measurement model of SEM confirmed the reliability and validity. The obtained results showed that HRMPs have a positive relationship with employee job satisfaction and performance. Furthermore, employee job satisfaction moderates the relationship between HRMPs and employee job performance, while diversity climate also plays an important moderating role in this relationship. The current study contributes to social exchange theory (SET). The practical implications are that the HRM managers in the hotel industry will gain insights from this study about the positive impact of HRMPs on employee job satisfaction and performance in the KSA hotel industry
