THE IMPACT OF HUMAN RESOURCE MANAGEMENT BUNDLES ON EMPLOYEE PERFORMANCE IN MALAYSIA

Lian Kok Fei

Abstract


This study demonstrated the applicability of the ability-enhancing, motivation-enhancing and empowerment-enhancing (AME) human resource management bundles in a non-Western setting like Malaysia. It also demonstrated the direct and mediated impacts of the bundles. The two mediators in this study are human capital and perceived organization support (POS). The variables of age, tenure and years of education are included as control variables. This study has been carried out on 192 managers in eight Malaysian firms. Hypotheses testing using Hayes’ PROCESS macro showed that both empowerment-enhancing HRM and ability-enhancing HRM is related positively to human capital. Both empowerment-enhancing HRM and ability-enhancing HRM have direct effects on employee performance, however the former relationship is negative and the latter positive. Only empowerment-enhancing HRM has a mediated effect on employee performance through human capital. Human capital has a direct and positive impact with employee performance. Both motivation-enhancing and empowerment-enhancing HRM has direct and positive impacts on POS.

 

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human resource management bundles, human capital, perceived organization support, employee performance

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