The effectiveness of human resource management practices on increasing organizational performance and the mediating effect of employee engagement

Abstract

Enhancing employee loyalty to the company is essential to maximize corporate ability and achieve respective goals, as employees are the most valuable resource. Hence, managing human resources in organizations is key to achieving contemporary business success. The current study aims to assess the impact of human resource management practices (HRM) on organizational performance with employee engagement as a potential mediator. This study was conducted on Jordanian tourism projects. A total of 300 questionnaires were distributed with 237 returned. The data were analyzed through the partial least squares (PLS) software. Resultantly, performance appraisal and employee engagement significantly and positively impacted organizational performance. Recruitment and selection, training and development, compensation, and performance appraisal also significantly and positively impacted employee engagement. Employee engagement significantly mediated the impact of performance appraisal on recruitment, selection, and compensation with organizational performance.