The Mediating Effect of HRM Outcomes (employee retention) on the Relationship between HRM Practices and Organizational Performance

Abstract

The matter of human resources activities have been commonly used to observe organizational performance. One of the distinctive features of HRM is that better performance is achieved through the people in the organization. In recent years significant remarks have been recorded in identifying the Human Resources Management (HRM) – performance relationship. The relationship between HRM practices and organizational performance has been well documented by the previous studies. However, authors have called for the interrogation of the mediating role of HRM Outcomes such as employee retention in the relationship between HRM practices and organizational performance. Thus, the major objective of this study is to investigate the mediating effect of HRM Outcomes (employee retention) on the relationship between HRM practices and organizational performance. Based on the evidence derived from the literature, the paper concludes that employee retention is likely to mediate in the relationship between HRM practices and organizational performance. Keywords: Human Resources management, employee retention, Human Resources management practices, organizational performance