The Effects of Human Resources Management (HRM) Practices on Employee Performance with the Mediating Role of Employee Engagement

Abstract

This research is carried out to examine the effect of human resources management (HRM) practice on employee performance and mediating role of employee engagement. Survey data has been collected among the front line to top level public sector in developer property industry. This study has used a sample of 318 employees using a stratified sampling technique. To analyse the data, this study has employed Smart PLS 3.0 version software. The result reveals that HRM practices namely, training and development, compensation, job security and promotion are significant and positively related to employee performance. The result also shows that, employee engagement can mediate the relationship between HRM practices and employee performance. This study uses social exchange theory as a guideline to examine and understand the relationship between HRM practice, and employee performance towards employee engagement. In addition, this study also makes important contributions for the practitioners who are in the field of public sectors particularly for managers who actually want to invest their resources for the well-being of their employees in preparing towards Industry 4.0. Future research could replicate and extend this study by adding other variables and samples from different industries to offer a better understanding of employee engagement at workplace.