Factors Influencing Employees’ Perception of Human Resource Practice: A Fuzzy Interpretive Structural Modeling Approach

Abstract

In past two decades, researchers have identified many factors, which influence employee’s perception of human resource (HR) practices. How employees perceive HR practice is a strong determinant of both employee’s and organizational outcome. However, how these factors are structured or their relative importance is not so well understood. Without this vital input, it is difficult to deploy scare resource to impact organizational outcome. This research uses fuzzy interpretive structural modeling (Fuzzy ISM) technique to fill this gap. The result will help deploy resources for changing the perception of vital HR practices so as to enhance organizational performance. Demographic dissimilarity of employee with coworker and manager, and quality of manager’s communication were found as the most relevant drivers of employee’s perception of HR practice. The factors having highest driving power are the one which needs to be addressed by Line and HR managers.