Trust in organization effect on the relationship between HRM practices and employee well-being

The Department of Management, Faculty of Economics and Business Administration, Vilnius University, Saulėtekio av. 9, 2nd building, 10222, Vilnius, Lithuania.

^* Corresponding author: vaida.jaskeviciute@evaf.vu.lt

Abstract

This study investigates the effects of trust in the organization on the relationship between human resource management practices and employee well-being. Method: An anonymous survey of 638 employees in Lithuania was conducted. The research was designed based on a 6-dimensional scale of perceived human resources management policies and practices, a 3-dimensional questionnaire of employee well-being, and a 2-dimensional questionnaire of trust in the organization. Questionnaire items were measured on a 5-point Likert scale. Survey data were analyzed using descriptive statistics, correlations, multivariate linear regressions and mediation analysis. Findings: Specific relationships were found between various HRM practices with employee well-being in having a full effect or in having a partial effect. This empirical study showed that select HRM practices positively influence employee well-being through the mediating effect of trust in the organization. Managerial implications: Based on the results of the survey, employee well-being at work in Lithuania can best be improved by the strengthening of trust in the organization through following these HRM practices: “recruitment and selection” (RS), “involvement” (I), “work conditions” (WC) and “competence-based performance appraisal” (CBPA).