Impact of Human Resource Management Practices on Employees' Behavioural Outcomes in the Manufacturing Sub-Sector of South-West Nigeria

Abstract

"Most authors agree that Human Resources is the most crucial input to any organisation. As such, scholars generally believe that Human Resource Management (HRM) practices positively impact firm performance. This belief persists because positive HRM practices strengthen competence, motivation, commitment and other employee outcomes leading to improved organisational performance. However, limited empirical evidence connects HRM practices to employee outcomes. This study investigated the impact of HRM practices on competence, commitment, job satisfaction, motivation, Cooperation with management, Cooperation with co-workers, employee presence and Compliance in the manufacturing sub-sector of South–Western Nigeria. To this end, the study adopted a cross-sectional survey research design which involved the collection of data from 381 middle-level managers of manufacturing companies in Lagos, Nigeria, selected using stratified and random sampling techniques. A Structural Equation Model (SEM) was used to analyse the data. Results show that HRM practices determine and predict components of employee outcomes. In other words, recruitment and selection, training and development, performance appraisal, compensation management, occupational health and safety, and career growth and development all determine competence, commitment, job satisfaction, motivation, Cooperation with management, Cooperation with co-workers, and Presence and Compliance all in varying degrees. The study justified investment in HRM and recommended a bundled approach to applying HRM practice."