The relationships between Human Resource Practices on Employee Retention in Malaysian Industrial Settings

Author(s):  
Kim Lian Lee ◽  
Sarvanan Singram ◽  
Christopher Luke Felix

Objective - The study explores the relationships between human r esource management practices on employee retention in Malaysian industrial setting s . The human resource management practices such as selection, training and development, performance appraisal and reward were considered in this study as the main factors that impact the employee retention in an organization Methodology/Technique - All d ata used in th is study consist s of respondents of executives and managers in manufacturing companies located in Klang Valley, Malaysia. Data processing and statistical analyses were mainly carried out using SPSS. Reliability test was used to check the con sistency and dimensionality of the scale items. P e a rson Intercorrelation was used to measure the associations among the human resource practices and employee retention and Multiple Regression Analysis to check the criterion - related validity of the scale i tems and to complement the correlation results. Findings - Data from 151 respondents from various industries show ed that the reward was most correlated with employee retention. This is followed by performance appraisal, in which fair and inclusive appraisa l leads to better retention. On the contrary, selection was found to have least significance relationship with employee retention. Novelty - The contribution of the study is in asserting some findings for human resource manager to understand the importanc e of an effective HRM practices on employee retention in the manufacturing industry. Apart from that, this research provides an understanding of some important elements in human resource management practices that are more effective in employee retention. Type of Paper - Empirical Type of Paper - HRM Practices; Employee Retention; Relationship; Significance .

Author(s):  
Tan Cheng Ling ◽  
Aizzat Mohd. Nasurdin

<p class="MsoNormal" style="line-height: normal; text-indent: 0in; margin: 0in 0.5in 0pt;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;"><span style="color: black; mso-themecolor: text1;">With rapid globalization, firms particularly those in the manufacturing sector have to<strong style="mso-bidi-font-weight: normal;"> </strong>continuously innovate for competitive advantage. <span style="mso-spacerun: yes;">&nbsp;</span>One way to do so is via effective human resource management practices (thereafter termed as HRM). <span style="mso-spacerun: yes;">&nbsp;</span>The purpose of this study is to examine the relationship between human resource management (HRM) practices and organizational innovation. <span style="mso-spacerun: yes;">&nbsp;</span>We employed a cross-sectional design with a sample comprised of<strong style="mso-bidi-font-weight: normal;"> </strong></span><span style="color: black; mso-ansi-language: EN-GB; mso-themecolor: text1;" lang="EN-GB">674 large manufacturing companies from six states in Malaysia which were identified as </span><span style="color: black; mso-themecolor: text1;">having a high percentage of innovating companies (Ministry of Science, Technology and Innovation, Malaysia (MOSTI), 2006). <span style="mso-spacerun: yes;">&nbsp;</span>Our independent variables comprised of </span><span style="color: black; mso-ansi-language: EN-GB; mso-themecolor: text1;" lang="EN-GB">five HRM practices (performance appraisal, career management, training, reward system, and recruitment). <span style="mso-spacerun: yes;">&nbsp;</span>Three types of organizational innovation (product innovation, process innovation, and administrative innovation) served as our dependent variables. <span style="mso-spacerun: yes;">&nbsp;</span></span><span style="letter-spacing: -0.05pt; color: black; mso-themecolor: text1;">Our findings provided partial support for our main hypothesis. <span style="mso-spacerun: yes;">&nbsp;</span>Training alone was found to have a positive and significant effect bon the three forms of organizational innovation. <span style="mso-spacerun: yes;">&nbsp;</span>In addition, performance appraisal positively and significantly affects administrative innovation. <span style="mso-spacerun: yes;">&nbsp;</span></span><span style="color: black; mso-bidi-font-weight: bold; mso-themecolor: text1;">Despite the fact that our research framework was partially supported, our study highlights the profound role played by training in stimulating organizational innovation in the context of the manufacturing industry of Malaysia. <span style="mso-spacerun: yes;">&nbsp;</span>I<span style="letter-spacing: -0.05pt;">mplications of our findings and limitations of the research were discussed. </span></span></span></span></p>


2013 ◽  
Vol 5 (11) ◽  
pp. 538-546
Author(s):  
Nadia Newaz Rimi

Human resource management (HRM) practices have been studied as a composite or bundle approach with different names including different practices. Each bundle includes common HRM practices of staffing, compensation, training and development, performance appraisal, job design and career development issues with varying dimensions. The present study refers these HRM practices as High Commitment HRM (HCHRM) practices. Prior studies identify these HCHRM practices related to employee outcomes of satisfaction, commitment and retention. Consistent with early findings, the present study believes a relation between HCHRM and employee outcomes. Additionally, HR attribution theory is discussed here to explain the causal relationship between HCHRM practices and employee outcomes. Based on the review of HCHRM practices literatures and existing HRM practices of Bangladesh, a research model is proposed and propositions are developed, The model is expected to be tested in future to identify the relationship among HCHRM practices, HR attribution and employee outcomes in the context of Bangladesh. The proposed model can be tested in other countries as well.


2016 ◽  
Vol 7 (2) ◽  
pp. 11
Author(s):  
R. Prakash Pillai ◽  
Christy Abraham

Hospitality and health care sectors have similarities due to service oriented and customer centric approach. The study is aimed to identify and understand the link between hospitality and health care sectors in terms of human resource management practices and how it enriches the business activities. The study is qualitative in nature and a case study was used. Purposive sampling method was used and primary data was collected through direct observation and semi-structured interviews with experts of the five star hotels and super specialty hospitals in South Kerala and secondary data was collected from journals, newspapers, books and internet, etc. Study analyzed that hospitality sector is having well functioned and polished HRM practices compared to health care sector. Each HRM practice is inter-connected and resulted into lower exit rate and better satisfaction of the staff. Proper execution of human resource management practices such as recruitment, selection, induction, training &amp; development, performance appraisal, compensation, employee welfare, grievance mechanism and exit management has a significant role in satisfaction of the employees and performance of the organization. Well functioned HR department and HRM practices will enhance the effectiveness of the staff and that ultimately lead to the best quality service delivery.


Author(s):  
Abdoulaye B.

The core objective of this study was to investigate on the impact of selected human resource management practices, namely recruitment, and selection, training and development, performance evaluation, remuneration and promotion on employee retention through organizational commitment, trust and inclusion at Huawei in Senegal. For that purpose, data were collected by verified structured questionnaire. The different theories have shown that HRM practices have a positive and significant relationship with employee retention. Besides, there was evidence that found that organizational commitment could act as a mediator between these HRM practices and employee retention. Similarly, different theories and literature have backed up the fact that organizational trust and inclusion will affect positively and enhance employee commitment towards the organization. Data were collected to identify all types of relationships among different constructs. As a result, a well-structured questionnaire was developed on the basis valid and tested reliable instruments from different academic journals in the field of management. The hypotheses that were constructed on the basis of a model that was tested through collected data. This study is purely quantitative, and the source of data was both primary and secondary. Thus, about 400 questionnaires were distributed to different Huawei Company sections in Senegal, but only 318 were considered appropriate for final analysis. To get the expected results and finding, SPSS 20, Excel and AMOS 21 were the main statistical software used to analyze data. Confirmatory factor analysis (CFA) was also performed to check reliability and validity, average variance extracted from the measurement model. Multilinear regression analysis has been used to test the proposed relationships between the independent and dependent variables. Then, Analysis of Variance (ANOVA) has been used according to the perspective objectives of the current study. Pearson correlation analysis was performed to examine the correlation between different variables. Besides, the structural equation modeling (SEM) analysis was also used to find out the simultaneous and continuous relationship between the different variables, while linear regression modeling was applied to test the research hypotheses. The findings of the study revealed that selected human resource management (HRM) practices have a positive and significant relationship with employee retention.


2020 ◽  
Vol 21 (1) ◽  
pp. 222-229
Author(s):  
Arta Jashari ◽  
Enver Kutllovci

The purpose of this study is to examine the impact of human resource management practices on organizational performance. In this study a total of 100 managers of manufacturing firms in Kosovo from public and private sectors have responded to the survey. The survey questionnaire had contained 39 items covering selected HRM practices and organizational performance. Our empirical results show that managers of manufacturing firms in Kosovo recognize the importance of employees in their organization and apply practices to manage them effectively. The outcome of correlation analysis provides evidence that HRM practices positively and significantly influence organizational performance. Recruitment and selection practices show the strongest positive association with organizational performance (rho = 0.905) compared to other practices. Regarding to our findings we suggest that with a good recruiting and selection, the organization will fill with a group of potentially qualified candidates. Also, companies should continuously train and develop and involve their employees as they are viewed as the most important resources source of competitive advantage.


2021 ◽  
pp. 000765032110532
Author(s):  
Florencio F. Portocarrero ◽  
Anne-Laure P. Winkler ◽  
Jone L. Pearce

This article evaluates the effect of different human resource management (HRM) practices on organizations’ environmental performance. We develop a model to evaluate the influence of a broad range of HRM practices, including environmental performance criteria in managers’ performance evaluations and two types of internal corporate social responsibility (CSR) practices: socially responsible employee benefits and corporate volunteering practices. To this end, we analyze a sample of 142 manufacturing companies that have completed B Lab’s Impact Assessment process to certify their environmental performance. The results show that including environmental criteria in a higher proportion of managers’ performance evaluations directly impacts organizations’ environmental performance and strengthens the positive effect of other environmental management practices. The findings also demonstrate the direct effects of both types of CSR practices on an organization’s environmental performance. Our study advances recent work on Green HRM and CSR by identifying the specific HRM practices that allow organizations to move from being part of the world’s environmental problem to being part of the solution.


2015 ◽  
Vol 23 (3) ◽  
pp. 472-492 ◽  
Author(s):  
Khaled Aladwan ◽  
Ramudu Bhanugopan ◽  
Brian D'Netto

Purpose – This study aims to examine the effects of human resource management (HRM) practices on organisational commitment (OC) in the Middle Eastern context. Design/methodology/approach – Survey data were collected from 493 front-line employees across a variety of industries in Jordan. A structural equation modelling analysis was performed to delineate the relationship between HRM practices and OC. Findings – A test of the model was conducted using a path analytic approach hypothesising that HRM factors influence OC. The findings indicate that the causal model is consistent with the data and contributes to a fuller understanding of the association between HRM practices and OC. Originality/value – This is the first study that represents a little-researched area of recent times and even less so in Middle Eastern countries. The findings of the study offer new perspectives on how HRM practices have direct and indirect effects on employees’ OC and would assist in reshaping the HR policies in organisations located in the Middle Eastern regions.


2016 ◽  
Vol 36 (2) ◽  
pp. 114-134 ◽  
Author(s):  
Jorge Andrés Vivares-Vergara ◽  
William Ariel Sarache-Castro ◽  
Julia Clemencia Naranjo-Valencia

Purpose – Human resource management (HRM) is considered an important issue in operations strategy (OS). Furthermore, OS effectiveness depends on performance in competitive priorities (CP). However, little empirical evidence exists about the relationship between them. Thus, the purpose of this paper is to investigate the impact of HRM on performance in CP. Design/methodology/approach – The research was conducted by surveying a sample of medium and large manufacturing companies in the Colombian coffee region. Three groups of variables were studied: performance in CP, HRM practices and factors related to employees. A regression analysis was conducted to test the hypotheses. Findings – No significant relationship was found between HRM practices and performance in CP. Regarding the factors related to employees, two findings were relevant: first, when the companies involve features about the individuals in OS decision making (motivations, personal goals, abilities, etc.) better performance can be observed in CP; second, when employees reach a higher level of satisfaction and job performance, the performance in CP improves as well. Practical implications – Considering the importance of HRM practices, appropriate adjustment and application should be sought to improve company performance. Furthermore, factors related to employees (features about the individuals, job satisfaction and employee performance), must be properly aligned with the OS. Originality/value – The paper addresses an issue supported by little empirical evidence. Because few studies have considered the total set of CP identified in the literature review, the authors applied an indicator to establish the global performance of the production system according to the market requirements. Traditionally, HRM has been studied from the perspective of management practices, giving little attention to employees. In this research, the authors consider not only this perspective but also the effects of factors related to employees on performance in CP when they are aligned with the OS.


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