The Influence of Human Resource Management Practices on the SMEs Performance: Mediating Role of Employee Engagement
DOI:
https://doi.org/10.47067/real.v4i1.113Keywords:
Human Resource Practices, Recruitment and Selection, Training and Development, Reward and Compensation, Performance ManagementAbstract
Recently, human resource practices have been considered as the foremost solution for high organizational performance and attained the focus of recent studies and regulators. Therefore, the present study investigates the impact of human resource practices such as recruitment and selection, training and development, reward and compensation, and performance management on SMEs performance in Pakistan. The present research also examines the mediating role of employee engagement among the nexus of recruitment and selection, training and development, reward and compensation, performance management, and SMEs performance in Pakistan. This research has adopted the questionnaires to collect the data and executed the smart-PLS to analyze the data. The results revealed that recruitment and selection, training and development, reward and compensation, and performance management have a positive association with SMEs’ performance. The findings also exposed that employee engagement positively mediating the links among recruitment and selection, training and development, reward and compensation, performance management, and SMEs performance in Pakistan. This study has provided the guidelines to the policymakers that they should extend their focus towards human resource practices that improve organizational performance.
References
Abrokwah, E., Yuhui, G., Agyare, R., & Asamany, A. (2018). Recruitment and selection practices among non-governmental organizations (NGOs) in Ghana. Labor History, 59(2), 185-201. doi: https://doi.org/10.1080/0023656X.2018.1422417
Ahmed, U., Kura, K. M., Umrani, W. A., & Pahi, M. H. (2020). Modelling the link between developmental human resource practices and work engagement: The moderation role of service climate. Global Business Review, 21(1), 31-53. doi: https://doi.org/10.1177%2F0972150919837813
Bailey, C., Madden, A., Alfes, K., & Fletcher, L. (2017). The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International Journal of Management Reviews, 19(1), 31-53. doi: https://doi.org/10.1111/ijmr.12077
Chahal, H., Jyoti, J., & Rani, A. (2016). The effect of perceived high-performance human resource practices on business performance: Role of organizational learning. Global Business Review, 17(3), 107S-132S. doi: https://doi.org/10.1177%2F0972150916631193
Eldor, L. (2017). Looking on the bright side: The positive role of organisational politics in the relationship between employee engagement and performance at work. Applied Psychology, 66(2), 233-259. doi: https://doi.org/10.1111/apps.12090
Gupta, N., & Sharma, V. (2016). Exploring employee engagement—A way to better business performance. Global Business Review, 17(3), 45S-63S. doi: https://doi.org/10.1177%2F0972150916631082
Hair Jr, J. F., Babin, B. J., & Krey, N. (2017). Covariance-based structural equation modeling in the Journal of Advertising: Review and recommendations. Journal of Advertising, 46(1), 163-177. doi: https://doi.org/10.1080/00913367.2017.1281777
Hendijani, R., Bischak, D. P., Arvai, J., & Dugar, S. (2016). Intrinsic motivation, external reward, and their effect on overall motivation and performance. Human Performance, 29(4), 251-274. doi: https://doi.org/10.1080/08959285.2016.1157595
James, C., Fitzgerald, S., Fellows, T., Goodall, J., Batlle, I. C., & Jones, J. (2019). Primary school headteacher recruitment and selection in England: The processes and the problematic aspects. School Leadership & Management, 39(5), 478-495. doi: https://doi.org/10.1080/13632434.2018.1525699
Jeske, D., & Shultz, K. S. (2016). Using social media content for screening in recruitment and selection: pros and cons. Work, employment and society, 30(3), 535-546. doi: https://doi.org/10.1177%2F0950017015613746
Kanama, D., & Nishikawa, K. (2017). Does an extrinsic reward for R & D employees enhance innovation outcomes? Evidence from a J apanese innovation survey. R&D Management, 47(2), 198-211. doi: https://doi.org/10.1111/radm.12165
Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81, 11-20. doi: https://doi.org/10.1016/j.jbusres.2017.07.018
Maas, K. (2018). Do corporate social performance targets in executive compensation contribute to corporate social performance? Journal of Business Ethics, 148(3), 573-585. doi: https://doi.org/10.1007/s10551-015-2975-8
Nawaz, M. A., Hussain, M. S., Kamran, H. W., Ehsanullah, S., Maheen, R., & Shair, F. (2020). Trilemma association of energy consumption, carbon emission, and economic growth of BRICS and OECD regions: quantile regression estimation. Environmental Science and Pollution Research, 1-15.
Nawaz, M. A., Seshadri, U., Kumar, P., Aqdas, R., Patwary, A. K., & Riaz, M. (2021). Nexus between green finance and climate change mitigation in N-11 and BRICS countries: empirical estimation through difference in differences (DID) approach. Environmental Science and Pollution Research, 28(6), 6504-6519. doi: https://doi.org/10.1007/s11356-020-10920-y
Ogbonnaya, C., & Messersmith, J. (2019). Employee performance, well?being, and differential effects of human resource management subdimensions: Mutual gains or conflicting outcomes? Human Resource Management Journal, 29(3), 509-526. doi: https://doi.org/10.1111/1748-8583.12203
Ogunyomi, P., & Bruning, N. S. (2016). Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria. The International Journal of Human Resource Management, 27(6), 612-634. doi: https://doi.org/10.1080/09585192.2015.1033640s
Ogwueleka, A. C., & Udoudoh, F. P. (2018). The impact of risk and reward dynamics in incentive compensation plans in the Nigerian construction industry. International Journal of Construction Management, 18(3), 247-259. doi: https://doi.org/10.1080/15623599.2017.1315545
Passfield, L., Hopker, J. G., Jobson, S., Friel, D., & Zabala, M. (2017). Knowledge is power: Issues of measuring training and performance in cycling. Journal of sports sciences, 35(14), 1426-1434. doi: https://doi.org/10.1080/02640414.2016.1215504
Patiar, A., & Wang, Y. (2020). Managers' leadership, compensation and benefits, and departments’ performance: Evidence from upscale hotels in Australia. Journal of Hospitality and Tourism Management, 42, 29-39. doi: https://doi.org/10.1016/j.jhtm.2019.11.005
Raza, M. Y., Wasim, M., & Sarwar, M. S. (2020). Development of Renewable Energy Technologies in rural areas of Pakistan. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 42(6), 740-760. doi: https://doi.org/10.1080/15567036.2019.1588428
Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A.-N. (2019). Environmental ethics, environmental performance, and competitive advantage: role of environmental training. Technological Forecasting and Social Change, 146, 203-211. doi: https://doi.org/10.1016/j.techfore.2019.05.032
Smart, C. M., & Segalowitz, S. J. (2017). Respond, don’t react: The influence of mindfulness training on performance monitoring in older adults. Cognitive, Affective, & Behavioral Neuroscience, 17(6), 1151-1163. doi: https://doi.org/10.3758/s13415-017-0539-3
Stirin Tzur, K., Ganzach, Y., & Pazy, A. (2016). On the positive and negative effects of self-efficacy on performance: Reward as a moderator. Human Performance, 29(5), 362-377. doi: https://doi.org/10.1080/08959285.2016.1192631
Sun, H., Awan, R. U., Nawaz, M. A., Mohsin, M., Rasheed, A. K., & Iqbal, N. (2020). Assessing the socio-economic viability of solar commercialization and electrification in south Asian countries. Environment, Development and Sustainability, 1-23. doi: https://doi.org/10.1007/s10668-020-01038-9
Taufek, F. H. B. M., Zulkifle, Z. B., & Sharif, M. Z. B. M. (2016). Sustainability in employment: Reward system and work engagement. Procedia Economics and Finance, 35, 699-704. doi: https://doi.org/10.1016/S2212-5671(16)00087-3
Ullah, S., Qureshi, Q. A., & Abbas, M. (2019). Applying the environmental context of TOE framework to examine the effects of environmental factors on adoption practice of ICT in Pakistani garment sector SMES-A case study of district of Faisalabad, Pakistan. SMART Journal of Business Management Studies, 15(1), 20-28. doi: http://dx.doi.org/10.5958/2321-2012.2019.00003.4
Wagle, J. P., Taber, C. B., Cunanan, A. J., Bingham, G. E., Carroll, K. M., DeWeese, B. H., . . . Stone, M. H. (2017). Accentuated eccentric loading for training and performance: A review. Sports Medicine, 47(12), 2473-2495. doi: https://doi.org/10.1007/s40279-017-0755-6
Yusoff, Y. M., Nejati, M., Kee, D. M. H., & Amran, A. (2020). Linking green human resource management practices to environmental performance in hotel industry. Global Business Review, 21(3), 663-680. doi: https://doi.org/10.1177/0972150918779294
Zaid, A. A., Jaaron, A. A., & Bon, A. T. (2018). The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study. Journal of cleaner production, 204, 965-979. doi: https://doi.org/10.1016/j.jclepro.2018.09.062.