The relationship between human resource practices and firm performance: an empirical assessment of firms in Malaysia

Abstract

PurposeThe objective of this study is to gain more insight into Malaysian human resource management, in terms of its history and current HR practices. Also, this paper also intends to examine the impact of implementing HR practices on the overall organization's performance based on a sample of 217 Malaysian based companies.Design/methodology/approachData were collected via questionnaires from human resource managers and top executives responsible for the managing human resources in their respective organizations. A sample of 217 Malaysian firms participated in this study. Using SPSS, a regression analysis was used to measure the impact of human resource practices on organizational performance.FindingsThe key finding of this study is that HR practices do have a significant impact on the performance of Malaysian organizations. In a nutshell the results of this study suggest a positive association between HR practices and firm performance.Originality/valueThis study contributes to the understanding of how Malaysian companies perceive the importance of human resource practices on overall organizational performance. HR practitioners can use the findings to support the case for implementing HR practices in organizations.

The Mediating Role of Knowledge Management and the Moderating Part of Organizational Culture between HRM Practices and Organizational Performance

“…Regarding the positive impact of HRM practices on OP found in this study, similar results have been revealed in the literature (e.g. Amin et al, 2014;Chan & Mak, 2012;Chand & Katou, 2007;Moideenkutty et al, 2011;Osman et al, 2011). Inconsistently, Kuo (2011) found a non-significant direct relationship between HRM practices and OP.…”

Moderating Role of Ethical Climates on HRM Practices and Organizational Performance: A Proposed Conceptual Model

“…Again, one study by Islam and Siengthai (2010) in Bangladesh industries in DEPZ area with 53 samples 216 respondents, the result of the study revealed that training and development is significantly related to performance. While, some studies shown that there are indirect and insignificant relationship between training and development and organizational performance (Osman, Ho, & Carmen Galang, 2011;Vlachos, 2008). The present study hypothesizes that:…”

“…For instance, the study conducted by Islam and Siengthai (2010) in Dhaka Export Processing Zone (DEPZ) Bangladesh, using 53 samples of Enterprises with 216 respondents, a quantitative regression analysis findings revealed that performance appraisal is positively related to performance. Similarly, the survey research conducted by Osman et al (2011) using Performance appraisal and firm performance in Malaysia with 800 different industry sectors, the regression result shows significant positive relationship on performance. However, one study explained contrary to the aforementioned studies, were insignificant relationship revealed in the findings (Meier & O'Toole, 2013).…”

Filling up the HRM ‘Black Box’; do creativity and management philosophy matter?

“…Gringore, 2008;Bau & Dowling, 2007;Ukenna et al, 2010;Daud, 2006;Hemdi, 2005;Osman, Ho, & Galang, 2011b;Othman, 2009;Othman et al, 2001;Rowley & Abdul-Rahman, 2007). There is dearth of research on HRM-SMEs relationship, most especially in the context of Nigeria (Ojukuku, 2012).…”

“…Given all these facts, it is imperative to examine whether HRM-performance nexus is contingent on another variable, most especially in a context, such as SMEs, where there is dearth of HRM research, since most of the research focused on large organizations (e.g. Ukenna et al, 2010;Osman et al, 2011b;Othman, 2009). …”