Human Resource Management Practices and Its Impact on Employees Engagement and Performance

Abstract

The level of uncertainty has increased significantly in the fast-moving business environment. The amount of uncertainty in the business environment require organizations regularly monitor the change and need to adjust the expectations of the employees associated with them. Every organization tries to design and develop business strategies to compete and make an effort to survive by adapting appropriate business strategies such as fighting the competition by managing product price, cutting of the manufacturing cost, and redesign of the business process and downsize of the employees. Apart from these strategies, employee engagement has emerged a new approach to Human Resource Management to stay competitive and improve performance. Today the shift is on the focus in Human Resource Management (HRM) to build the employee engagement. The research work is undertaken with the aim to analyze the practices of human resource management and its impact on the employee engagement and performance. A structured questionnaire was designed to cover the various aspects of HRM practices and its relationship with employee’s engagement and their performances. For investigating the link between HRM practices and employee’s performance, regression analysis was applied on the data. Further Structured equation modeling was carried out to test model fit between HRM practice, employee’s engagement and employee’s performance. The results indicate that HRM practices such as Procurement, Training and Development, Compensation Management, Performance Management, Welfare Practices, Career Growth Opportunity have significant impact on employee’s engagement.

Keywords: Employees Engagement, Training and Development, Compensation Management, Performance Management, Welfare Practices

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