Sushila Devi Rajaratnam

Co-operative College of Malaysia

 

This study investigated the relationship between human resource management (HRM) practices, organisational commitment, supervisory commitment and employee performance. Specifically, the direct and indirect relationship between HRM practices and employee performance was examined using the Structural Equation Modelling technique. A survey was carried out among clerical employees in 140 service-based co-operatives in West Malaysia and a sample of 516 respondents was analysed. The study revealed that HRM practices, specifically training and development, performance appraisal, rewards and communication and participation, showed significant direct positive relationship with employee performance. In addition, the results indicated that the relationship between HRM practices and employee performance was mediated by organisational commitment. However, the direct relationship was stronger than the mediated relationship. In contrast, it was observed that supervisory commitment did not mediate the relationship between HRM practices and employee performance. The results suggest that HRM practices are important tools in enhancing employee performance directly and indirectly, through fostering organisational commitment.

AUTHOR'S BACKGROUND

Sushila Devi Rajaratnam is the Head of Research and Consultancy as well as Editor, Malaysian Journal of Co-operative Management, at the Co-operative College of Malaysia (CCM). She has more than 27 years experience as a trainer with CCM and besides training, has undertaken a number of research studies. She holds a Ph. D. in Management from Multimedia University , Malaysia , Masters in Business Administration and Bachelor in Economics (Business Administration) from the University of Malaya .