Abstract

The research aims to investigate The Impact of Moral Development on Ethical Decision-Making in Human Resources Management (HRM). Theory of Moral Development was used as the basis for this study. The study incorporated the endogenous variable of employee satisfaction alongside exogenous variables: Moral Development, Moral Awareness, Moral judgment, Ethical decision-making in HRM. The study adopted a quantitative approach by collecting primary data from 124 individuals from Oman’s higher education institutions (HEIs). The study used variance-based structural equation modeling, using the partial least squares path modeling method with SMART PLS 4 software. Data analysis was carried out in stages: first, by assessing the reliability and validity of the data through a measurement model and, then, by testing the hypothesis using a structural model. The structural model results illustrated that a positive relationship exist between moral development and moral awareness, moral development and moral judgment, Ethical decision-making, and satisfaction of employees. Furthermore, it was found that Moral judgment acts as a mediator between levels of moral development and ethical decision-making in HRM. However, the research findings also revealed that Moral awareness did not act as a mediator between levels of moral development and ethical decision-making in HRM. The significance of this study is that it contributes to the understanding of the complex relationship between moral development, moral awareness, moral judgment, and ethical decision-making in the context of HRM. Furthermore, this study’s findings can also inform the design of training and development programs for Human Resources (HR) professionals, with an emphasis on enhancing moral development, moral awareness, and moral judgment skills.