The Effect of HRM Practices on Organizational Performance: A Survey of Malaysian State Sports Councils’ Employees
Abstract
Organizational performance can be evaluated through the effectiveness of human resource management (HRM) practices implemented in the organization. However, the problem of improper and misguided implementation of HRM practices causes conflict between employees and organizations, influencing organizational performance. This study examines the effect between HRM practices and organizational performance among Malaysian State Sports Councils’ (MSSC) employees by adapting the Social Exchange Theory. This survey involved a total of 280 MSSC employees. This research instrument consists of 35 items that measure HRM practices and organizational performance. Data were analyzed using regression analysis. Based on the findings, there is a significant and direct effect between HRM practices and organizational performance among MSSC employees. In conclusion, the organization’s excellent structure of HRM practices enables employees to commit to work and perform tasks according to the organizational goals. Future researchers are recommended to extend the sample of study to other sports organizations or other public and private organizations in measuring HRM practices and organizational performance.
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