THE ROLE OF HR PRACTICES QUALITY IN ENHANCING EMPLOYEE ENGAGEMENT AND ORGANIZATIONAL PERFORMANCE

Abstract

This study investigates the interplay between the quality of HR practices, HR decision-making, and organizational performance within private companies in Chonburi, Thailand. It aims to determine whether high-quality HR practices directly enhance organizational performance or if this relationship is mediated by HR decision-making and employee engagement. Utilizing Structural Equation Modelling (SEM) via SmartPLS, data were collected from 133 employees through a structured questionnaire. The results reveal that high-quality HR practices significantly boost employee engagement and facilitate strategic, ethical, and data-driven HR decision-making, which, in turn, enhance organizational performance. The integration of HR analytics further improves decision-making capabilities and organizational agility. These findings underscore the critical role of robust HR practices in fostering an engaged workforce and making informed decisions that drive organizational success. Future research should explore these dynamics in various organizational contexts and industries to validate and extend these findings further.