Author(s) :

Sushila Devi Rajaratnam.

Volume :

Abstract :

This study investigated the relationship between human resource management (HRM) practices, organisational commitment, supervisory 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 survey was carried out among clerical employees in 140 service-based co-operatives in West Malaysia and a sample of 516 respondents was analysed. The study revealed that HRM practices, specifically training and development, performance appraisal, rewards and communication and participation, showed significant direct positive relationship with employee performance. In addition, the results indicated that the relationship between HRM practices and employee performance was mediated by organisational commitment. However, the direct relationship was stronger than the mediated relationship. In contrast, it was observed that supervisory commitment did not mediate the relationship between HRM practices and employee performance. The results suggest that HRM practices are important tools in enhancing employee performance directly and indirectly, through fostering organisational commitment.

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