The impact of human resource management practices on organizational performance case study: manufacturing enterprises in Kosovo
Abstract
The purpose of this study is to examine the impact of human resource management practices on organizational performance. In this study a total of 100 managers of manufacturing firms in Kosovo from public and private sectors have responded to the survey. The survey questionnaire had contained 39 items covering selected HRM practices and organizational performance. Our empirical results show that managers of manufacturing firms in Kosovo recognize the importance of employees in their organization and apply practices to manage them effectively. The outcome of correlation analysis provides evidence that HRM practices positively and significantly influence organizational performance. Recruitment and selection practices show the strongest positive association with organizational performance (rho = 0.905) compared to other practices. Regarding to our findings we suggest that with a good recruiting and selection, the organization will fill with a group of potentially qualified candidates. Also, companies should continuously train and develop and involve their employees as they are viewed as the most important resources source of competitive advantage.
Keyword : human resources management practices, organizational performance, recruitment, training, reward, participation, Kosovo
How to Cite
Jashari, A., & Kutllovci, E. (2020). The impact of human resource management practices on organizational performance case study: manufacturing enterprises in Kosovo. Business: Theory and Practice, 21(1), 222-229. https://doi.org/10.3846/btp.2020.12001
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Vickery, S., Calantone, R., & Dröge, C. (1999). Supply chain flexibility: an empirical study. The Journal of Supply Chain Management, 35(1), 16–24. https://doi.org/10.1111/j.1745-493X.1999.tb00058.x
Wright, P. M., Gardner, T. M., Moynihan, L. M., & Allen, M. R. (2005). The relationship between hr practices and firm performance: Examining causal order. Personnel Psychology, 58(2), 409–446. https://doi.org/10.1111/j.1744-6570.2005.00487.x
Cardon, M. S., & Stevens, C. E. (2004). Managing human resources in small organizations: what do we know? Human Resource Management Review, 14, 295–323. https://doi.org/10.1016/j.hrmr.2004.06.001
Creswell, J. W., & Clark, V. L. P. (2007). Designing and conducting mixed methods research. Thousand Oaks, CA, US: Sage Publications, Inc.
Danish, R.Q., & Usman, A. (2010). Impact of reward and recognition on job satisfaction and motivation: An empirical study from Pakistan. International Journal of Business and Management, 5(2), 159. https://doi.org/10.5539/ijbm.v5n2p159
Delaney, J., & Huselid, M. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal, 39(4), 949–969. https://doi.org/10.2307/256718
Givord, P., & Maurin, E. (2004). Changes in job security and their causes: An empirical analysis for France, 1982–2002. European Economic Review, 48, 595–615. https://doi.org/10.1016/S0014-2921(03)00043-6
Gerber, H., Twohy, C. H., Gandrud, B., Heymsfield, A. J., McFarquhar, G. M., DeMott, P. J. & Rogers, D. C. (1998). Measurements of wave-cloud microphysical properties with two new aircraft probes. Geophysical Research Letters, 25(8), 1117–1120. https://doi.org/10.1029/97GL03310
Guest, D., Michie, J., Conway, N., & Sheehan, M. (2003). Human resource management and corporate performance in the UK. British Journal of Industrial Relations, 41(2), 291–314. https://doi.org/10.1111/1467-8543.00273
Goldstein, I. L., & Ford, J. K. (2002). Training in organizations. Belmont, CA: Wadsworth. https://doi.org/10.4236/ajibm.2016.62018
Jackson, S. E., & Schuler, R. S. (2000). Managing human resource. A partnership perspective. London: Southern-Western College Publishing. https://doi.org/10.1007/978-3-642-57009-4_19
Jehanzeb, K., & Bashir, N. (2013). Training and development program and its benefits to employee and organization: A conceptual study. European Journal of Business and Management, 5(2), 243–252.
Han, T. S., Chiang, H. H., & Chang, A. (2010). Employee participation in decision-making, psychological ownership and knowledge sharing: mediating role of organizational commitment in Taiwanese high-tech organizations. The International Journal of Human Resource Management, 21(12), 2218–2233. https://doi.org/10.1080/09585192.2010.509625
Huselid, M. A. (1995). The impact of human resource management practices on turnover. Productivity, corporate and financial performance. Academy of Management Journal, 38(3), 635–672. https://doi.org/10.2307/256741
Kim, H. S. (2002). We talk; therefore, we think? A cultural analysis of the effect of talking on thinking. Journal of Personality and Social Psychology, 83(4), 828–842. https://doi.org/10.1037//0022-3514.83.4.828
Kutllovci, E. (2004). Human resurce management. Prishtinë, Univeristy of Prishtina.
Keny, V., & Nnamdi, S. O. (2019). Employ productivity and organizational performance: A theoretical prespective. Munich Personal RePEc Archive. https://mpra.ub.uni-muenchen.de/93294/
Meyer, J. P., Becker, T. E., & Vandenberghe, C. (2004). Employee commitment and motivation: a conceptual analysis and integrative model. Journal of Applied Psychology, 89(6), 991–1007. https://doi.org/10.1037/0021-9010.89.6.991
Noble, A. (2009). Building health promotional work setting: identifying the relationship work characteristics and occupational stress. Health Promotion International Journal, 18(4), 351–359. https://doi.org/10.1093/heapro/dag407
Opatha, H. H. D. N. P. (2010). Human resource management. Colombo: Author published. https://doi.org/10.31357/bkc.fmsc.00001
Oaya, Z. C. T., Ogbu, J., & Remilekun, O. G. (2017). Impact of recruitment and selection strategy on employees’ performance: a study of three selected manufacturing companies in Nigeria. International Journal of Innovation and Economic Development, 3(3), 32–42. https://doi.org/10.18775/ijied.1849-7551-7020.2015.33.2003
Özalp, İ. (1998). Çokuluslu İşletmeler: Uluslararası Yaklaşım. Anadolu Üniversitesi Yayınları, Eskisehir.
Polkinghorne, D.E. (2005). Language and meaning: Data collection in qualitative research. Journal of Counselling Psychology, 52(2), 137–145. https://doi.org/10.1037/0022-0167.52.2.137
Rotea, C. S., Logofatu, M., & Ploscaru, C. C. (2017). Evaluating the impact of reward policies on employee productivity and organizational performance in hospitals. Journal of Business and Management, 6(2), 65–72. https://doi.org/10.15604/ejbm.2018.06.02.006
Republika e Kosoves. (2012–2016). SME Development Strategy 2012–2016. Government of Kosovo. https://mti.rks-gov.net/
Stock, G. N., Greis, N. P., & Kasarda, J. D. (2000). Enterprise logistics and supply chain structure: the role of fit. Journal of Operations Management, 18(5), 531–547. https://doi.org/10.1016/S0272-6963(00)00035-8
Takeuchi, R., Lepak, D. P., Wang, H., & Takeuchi, K. (2007). An empirical examination of the mechanisms mediating between high-performance work systems and the performance of Japanese organizations. Journal of Applied Psychology, 92(4), 1069–1083. https://doi.org/10.1037/0021-9010.92.4.1069
Triguero, R., Vinces, J., Rendon, M., & Apellaniz, M. (2012). Human resource management practices aimed at seeking the commitment of employees on financial and non-financial (subjective) performance in Spanish firms: an empirical contribution. Journal of Economics, Finance and Administrative Science, 17(32), 19–26.
Vickery, S., Calantone, R., & Dröge, C. (1999). Supply chain flexibility: an empirical study. The Journal of Supply Chain Management, 35(1), 16–24. https://doi.org/10.1111/j.1745-493X.1999.tb00058.x
Wright, P. M., Gardner, T. M., Moynihan, L. M., & Allen, M. R. (2005). The relationship between hr practices and firm performance: Examining causal order. Personnel Psychology, 58(2), 409–446. https://doi.org/10.1111/j.1744-6570.2005.00487.x