How Does Sustainability-Oriented Human Resource Management Work?: Examining Mediators on Organizational Performance

This study proposes a path model with a set of intermediary outcomes, namely, teamwork, employee satisfaction, and work motivation, to explain how the practices of sustainability-oriented HRM affect organizational performance. The analysis of 2015 Federal Employee Viewpoint Survey reveals that the three practices of sustainable management identified from the literature had indirect effects on organizational performance through a complex interaction among the three intermediate outcomes. In addition, it is found that diversity program has a negative total effect on performance. These findings imply that organizational justice and work/life balance program will lead to an increase in performance by strengthening the backbone of organization. Additionally, conducting the diversity programs for achieving democratic values may entail the cost of diminishing organizational performance probably in the short run.