HRM PRACTICES AND EMPLOYEE PERFORMANCE IN CO-OPERATIVES: DIRECT AND INDIRECT RELATIONSHIP
Publication Date : 01/07/2007
This study investigated the relationship between human resource management ( HRM ) practices, affective organisational commitment and employee performance. Specifically, the direct and indirect relationship between HRM practices and employee performance was examined using the Structural Equation Modelling technique. A questionnaire survey was carried out among clerical employees in service-based co-operatives inWest Malaysia and a sample of 516 respondents was analysed. The study revealed that HRM practices, specifically training and development, performance appraisal, communication and participation and rewards, had a significant direct positive relationship with employee performance. An indirect relationship between HRM practices and employee performance mediated by affective organisational commitment was also observed. However, the direct relationship was stronger than the indirect relationship. The results suggest that HRM practices are more important in enhancing employee performance directly rather than indirectly, through fostering affective organisational commitment.
No. of Downloads :