Human resource management practices and firm performance
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Date
2006
Authors
Daud, Normala
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Abstract
Over the last decade, much research has been conducted in the field of human resource management (HRM) and its associations with firm performance. Prior studies have found substantial positive evidence for statistical associations between HRM practices and improved firm performance. The purpose of this study is to investigate the relationships between HRM practices and firm performance with business strategy and environmental uncertainty as moderators. This study examines the relationships among HRM practices, environmental uncertainty, business strategy and firm performance. It was hypothesized that HRM practices could positively influenced profitability and growth and negatively influenced employee turnover. Data were collected using mail questionnaire sent to human resource managers in manufacturing firms in Malaysia. A total of 162 useable responses were obtained and used for the purpose of analysis. Results of hierarchical regression used to test the relationships among the variables indicated that (1) human resource planning has a relationship with profitability and growth; (2) performance-based pay has a relationship with profitability and growth; (3) skills development has a relationship with involuntary employee turnover; (4) environmental uncertainty as a moderator influence the relationship between human resource planning, performance-based pay and profitability; and (5) business strategy as a moderator influences the relationship between performance-based pay and growth. The findings can form the basis for useful recommendations for Malaysian managers in encouraging the practice of human resource management and for employees who are concerned with maintaining their competitive advantage for long-term organizational success.
Description
PhD
Keywords
Management , Human resource , Firm Performance , Environment