One of the aims of this research is to explore the role of employee outcomes in the HR
causal chain. This research focuses on the mediating effects of employee outcomes between HRM and organizational performance which are more distal to HRM than
employee outcomes. To differentiate this more distal part of organizational performance
from employee outcomes, and considering that it is of complexity by containing
operational/organizational outcomes, financial accounting outcomes and market outcomes,
this variable is named organizational performance. This paper is distinctive from most of
the previous studies by using a wider range of items to measure employee outcomes,
including attitudinal, behavioural and ability factors. The hypotheses developed
concerning HPWS, employee outcomes and organizational performance are the following: