The Influence of Human Resource Management Practices on Employee Performance in the Manufacturing Sector in Malaysia

Abstract

The purpose of this study is to examine the relationship between Human Resource Management (HRM) practices (Compensation and Benefits, Work-life Policies, Performance Appraisal and Training and Development) and employee performance. Data was collected through questionnaire from 161 employees of a manufacturing company in Johor, Malaysia. The results of the multiple regression analysis showed that performance appraisal and training and development were significantly related to employee performance. The findings suggested that training and development is the most important factor that positively influences employee performance followed by performance appraisal. Compensation and benefits and work-life policies were found to be not significant in predicting employee performance. In relation to these findings, human resource department shall have designed suitable training plan with comprehensive and consistent performance appraisal system for the employees.