Business Strategy, Human Resource Management Practices and Employee Outcomes: Structural Equation Modeling
This study investigated the effects between two business strategies (differentiation and low-cost) and six human resource management (HRM) practices (recruitment & selection, training & development, compensation, performance management, employment security and work-life balance) on e...
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| Main Author: | |
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| Format: | Thesis |
| Language: | en |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://ur.aeu.edu.my/123/1/Business%20Strategy%2C%20Human%20Resource%20Management%20Practices%20and%20Employee%20Outcomes%3B%20Structural%20Equation%20Modeling.pdf http://ur.aeu.edu.my/123/ |
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| Summary: | This study investigated the effects between two business strategies
(differentiation and low-cost) and six human resource management (HRM)
practices (recruitment & selection, training & development, compensation,
performance management, employment security and work-life balance) on
employee outcomes (organisational commitment, employee turnover, employee
involvement and job satisfaction) and the extent to which such effects bring
differences to Public and Private Limited companies in Malaysia. Therefore, the
main objective of this study was to develop the conceptual model to measure the
interaction effects of business strategy, HRM practices on employee outcomes.
Four sub-objectives investigated to accomplish the main objective of the study.
The first sub-objective was to investigate the effect of different business strategy
to HRM practices. The second sub-objective of this study was to investigate the
effect of business strategy and HRM practices on the four variables of employee
outcomes. The third sub- objective of this study was to investigate whether any
variance or differences among Public and Private Limited companies of the effect
between business strategy and HRM practices. The fourth sub-objective was to
investigate whether any variance among Public and Private Limited companies of
the interrelationship between business strategy and HRM practices on employee
outcomes.
Structural equation modelling was used to examine the effect of business
strategy to HRM practices and the interrelationships of them to employee outcomes The psychometric properties of these measures were investigated through confirmatory factor analysis. This study found that differentiation strategy was one of the business strategies that tend to emphasize on all six HRM practices while low-cost strategy found to emphasize on four HRM practices only. HRM practices found to mediate the interaction of business strategy and employee outcomes. The results also indicated that the effects of business strategy and HRM practices implemented in Public Limited companies on employee outcomes were only slightly different from the ones implemented in Private Limited companies. Types of business ownership moderate the interrelationship effect of business strategy and HRM practices on employee outcomes. The results showed invariant between differentiation strategy but variant in tow-cost strategy. |
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