Impact of Human Resource Management on Employee Performance: Mediating Role of Employee Engagement Among Some’s in Nepal

Authors

  • Bijay Sigdel School of Management, Shinawatra University

Abstract

          The purpose of this research is to investigate whether human resource management impacts employee performance as well as how employee engagement acts as a mediator in Nepal’s small and medium-sized enterprises. This investigation will be carried out using a quantitative approach. Purposive sampling was used to select 215 small and medium-sized businesses from Nepal as the study's sample size. Data analysis tools like SPSS and Smart PLS were employed. The research demonstrates that using effective practices in human resource management have a significant positive effect on employee engagement and performance. Employee performance is impacted by employee engagement. Employee engagement is mediated by the relationship between human resources management practices & employee performance.

References

Agrawal, G. (2009). Dynamics of human resource management in Nepal. Kathmandu: MK Publishers and Distributors.

Ahmed, S., Ahmad, F. B., & Joarder, M. H. (2016). HRM practices-engagement-performance relationships: A conceptual framework for RMG sector in developing economy. Mediterranean Journal of Social Sciences, 7, 87.

Aktar, A., & Pangil, F. (2017). The relationship between employee engagement, HRM practices and perceived organizational support: evidence from banking employees. International Journal of Human Resource Studies, 7.

Aktar, A., & Pangil, F. (2018). Mediating role of organizational commitment in the relationship between human resource management practices and employee engagement: Does black box stage exist? International Journal of Sociology and Social Policy, 38, 606-636.

Anugrah, A. (2020). Pengaruh Pelatihan dan Kompensasi terhadap Kinerja Karyawan melalui Komitmen Organisasi sebagai Variabel Intervening pada PT. Garuda Indonesia Kantor Cabang Pekanbaru. Procuratio: Jurnal Ilmiah Manajemen, 4, 466-477.

Arpiani, N. F., & Mulyana, A. E. (2023). Proceedings of the 4th International How Talent Management, Motivation, and Career Development affecting the Employee Performance at PT Excelitas Technologies Batam? In Proceedings of the 4th International Conference on Applied Economics and Social Science, ICAESS 2022, 5 October 2022, Batam, Riau Islands, Indonesia: ICAESS 2022 (p. 15). European Alliance for Innovation.

Atteya, N. M. (2012). Testing the impact of the human resource management practices on job performance: An empirical study in the Egyptian joint venture petroleum companies. International Journal of Business and Social Science, 3.

Chalise, D. R., & Pokharel, J. (2022). Performance-driven Practices and Employee Performance in Nepalese Commercial Banks. Management Dynamics, 25, 1-8.

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.

Cohen, J. (2013). Statistical power analysis for the behavioral sciences (2nd ed.). New York: Routledge.

Gautam, D. K. (2011). Changing perspectives of managing human resources in Nepal. Proceedings of Nepalese Academy of Management, 1, 65--78.

Gautam, D. K. (2015). Strategic integration of HRM for organizational performance: Nepalese reality. South Asian Journal of Global Business Research, 4, 110-128. doi:https://doi.org/10.1108/SAJGBR-10-2012-0119

Gurung, A., & Choi, M. (2019). Human resource management in Nepal: A Delphi study. Asian Journal of Business Environment, 9, 5-12. doi:https://doi.org/10.13106/eajbm.2019.vol9.no1.5

Hair, J. F., Hult, G. T., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature.

Hassan, Z. (2022). Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system. Journal of Entrepreneurship, Management and Innovation, 18, 137-174.

Hee, O. C., & Jing, K. R. (2018). The Influence of human resource management practices on employee performance in the manufacturing sector in Malaysia. International Journal of Human Resource Studies, 129-147. doi:https://doi.org/10.5296/ijhrs.v8i2.12826

Hoque, A. S., Awang, Z. B., Siddiqui, B. A., & Sabiu, M. S. (2018). Role of employee engagement on compensation system and employee performance relationship among telecommunication service providers in Bangladesh. International Journal of Human Resource Studies, 8, 19-37.

Indriyani, A. U., & Heruwasto, I. (2016). Effect of Compensation and Benefit to Employee Engagement Through Organisation Brand in Indonesia Startup Company. Jurnal Manajemen dan Bisnis Sriwijaya, 14, 515-524.

Jha, B., & Kumar, A. (2016). Employee engagement: A strategic tool to enhance performance. Journal for Contemporary Research in Management, 3, 21-29.

Kang, H., & Ahn, J.-W. (2021). Model setting and interpretation of results in research using structural equation modeling: A checklist with guiding questions for reporting. Asian Nursing Research, 15, 157-162.

Kavyashree, M., Kulenur, S., Nagesh, P., & Nanjundeshwaraswamy, T. (2023). Relationship between Human Resource Management Practices and Employee Engagement. Brazilian Journal of Operations & Production Management, 20, 1331-1331.

Kharel, P., & Dahal, K. (2020). Small and medium-sized enterprises in Nepal: Examining constraints on exporting. ADBI Working Paper Series.

Ma, K. W., Mak, C. M., & Wong, H. M. (2020). Development of a subjective scale for sound quality assessments in building acoustics. Journal of Building Engineering, 29, 101-177.

Robbins, S. P., & Judge, T. A. (2013). Organizational behavior. (Vol. 4). New Jersey: Pearson Education.

Rumman, A. A., Al-Abbadi, L., & Alshawabkeh, R. (2020). The impact of human resource development practices on employee engagement and performance in Jordanian family restaurants. Problems and Perspectives in Management, 18, 130.

Sendawula, K., Kimuli, S. N., Bananuka, J., & Muganga, G. N. (2018). Training, employee engagement and employee performance: Evidence from Uganda’s health sector. Cogent Business & Management, 5.

Silva, J. D., Riana, I. G., & Soares, A. D. (2020). The Effect of Human Resources Management Practices on Innovation and Employee Performance (Study Conducted at NGOs Members of FONGTIL) Dili. International Journal of Multicultural and Multireligious Understanding, 322-330.

Taib, N. M., Saludin, M. N., & Hanafi, W. N. (2018). The effects of human resources management (HRM) practices on employee performance with the mediating role of employee engagement. Selangor Business Review, 46-60.

Downloads

Published

2023-08-25

Issue

Section

Research Articles