The Influence of Human Resource Management Practices on Employee Performance in the Manufacturing Sector in Malaysia

Abstract

The purpose of this study is to examine the relationship between Human Resource Management (HRM) practices (Compensation and Benefits, Work-life Policies, Performance Appraisal and Training and Development) and employee performance. Data was collected through questionnaire from 161 employees of a manufacturing company in Johor, Malaysia. The results of the multiple regression analysis showed that performance appraisal and training and development were significantly related to employee performance. The findings suggested that training and development is the most important factor that positively influences employee performance followed by performance appraisal. Compensation and benefits and work-life policies were found to be not significant in predicting employee performance. In relation to these findings, human resource department shall have designed suitable training plan with comprehensive and consistent performance appraisal system for the employees.

Achieving Organizational Innovation Through HR bundling: A Contingency and Contextual Perspective in the Oil Marketing Sector of Pakistan

“…If an employer uses the tool of the performance appraisal for counseling and resource planning then it strengthens the relationship between performance appraisals and employee retention (Bodjrenou, Ming, & Bomboma, 2016). Compensation Management is a process compensating the efforts on employees in tasks performed by offering monetary values in exchange (Hee & Jing, 2018). Compensation package entails some basic features including salaries, allowances, incentives, promotion, bonuses and recognition (Onuorah, Okeke, & Ibekwe, 2019).…”

Towards A Model Linking HRM Practices, Work Engagement, And Job Performance

“…According to Hee and Jing (2018), an appropriate appraisal system with fairness and clarity results in highly satisfied and motivated employees, leading them to become high performers. Furthermore, Hee and Jing (2018) suggested that high performers are the product of an effective appraisal system. Thus, the second subproposition is as follows:…”

“…According to Hee and Jing (2018), a fair evaluation of an employee's performance is an important criterion for determining the level of employee work engagement. An organisation which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of engaged employees.…”

“…An organisation which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of engaged employees. This will stimulate an employee's involvement and commitment which will increase work engagement and ultimately enhance job performance (Hee & Jing, 2018).The foregoing discussion has prompted the following proposition:…”

“…Given the above setting, there is an urgent need for the Malaysian manufacturing sector to reenergize itself and become productive and advanced. This can be accomplished by looking into the HRMPs (Hee & Jing, 2018). Furthermore, it has been widely acknowledged that employing supportive HRMPs can lead to improvements in employee's attitudes and behaviours.…”