INTRODUCTION ‘Best Practice’ Human Resource Management: Impact On Employee Performance In Non-Westernised Countries written by Dr Rosmah Mohamed in 2007 for 3rd Uniten International Business Management Conference 2007 at Equatorial Hotel Melaka, Malaysia . This article discusses about best practice HRM in Malaysia local government organization and performance from employees point of view. Dr Rosmah Mohamed also investigates impact on employees performance based on the motivation, job satisfaction, organizational citizenship behaviour stress and perceived organizational performance in the organization in Malaysia towards Best Practice of HRM.
These factors are the major effects as measurement the employee’s performance. This paper also explained how HRM practices significantly enhanced and develop organizational performance to ensure the organization achieve competitive advantage. Regarding on this study, it will discover whether employee’s performance can make or break organization success. THE OBJECTIVES OF RESEARCH Employees are the most important assets in achieving organizational competitive advantage, then the way they are treated is important (Preffer 1994).
This describe importance of employees especially impact of HRM in order to enhance organizational competitive advantage. Best Practice of HRM requires that all managers (employer) are committed and understand the employee’s needs to ensure all parties work with high performance and beneficial to the organization at last. Most of the studies of HRM literature focus on the relationship between ‘best practice’ HRM and level of organization performance, for that reason this paper more focus on the employee in the public sector in Malaysia that majority muslim.
The main objectives of the research to find out the connection between the best practices of HRM effects on employee’s performance outcomes of a stratified sample of government sector employees in non-westernized (Malaysia). Purposely, it to test the connection between ‘best practice’ and both employee outcomes and perceived organizational performance in local government sector. THE OBJECTIVES OF THE RESEARCH THAT ARE RELATED TO THE STUDY OF THE HUMAN RESOURCE MANAGEMENT As this article is more discuss about employee of the government sector in Malaysia, we can assume majority of the mployee are muslim and practising Islam. All people are working for survive. Azman, Che Omar (2011) explained for muslim employees, they have to be delelop spiritually so that they become committed to Islam and thus making work as an ibadah. In the Development function in HRM, the main development process is performance management. This includes the appraisal from employer and based on result, what the best action need to implement or takes for employee. This paper is explained performance affect on the employee performance.
In order to explained the process how ‘best practice’ HRM affect performance, Guest (1997) suggest theories of organizational behaviour and motivation. Additional, (Boxall and Purcell, 2003) also adapted the expectancy theory to describe the linkage between ‘best practice’ HRM and performance. The AMO theory of human performance Appelbaum et al. (2002) and physiological theory (Rousseau 1990) might also find out how the connection between ‘best practice’ HRM and performance work. EVALUATE AND DESIGN THE MODEL OF THE STUDY Figure 1 : Research Framework
According to the Figure 1; Research Framework of this study shows the independent variable that is ‘ best practice’ HRM is linked with employee motivation, job satisfaction, organizational citizenship behaviour and stress, and consequently linked with perceived organizational performance. In figure 1 the research framework also explains that the ‘best practice’ HRM is expected to be positively associated with the employee motivation, job satisfaction, organizational citizenship behaviour and stress are expected to be positively associated with perceived organizational performance.
Meanwhile, country, age, salary, gender, contract,job position, benefits/revenue service department, planning service department, housing service department and waste service department as control variables in the research framework. . In order to explained the process how ‘best practice’ HRM affect performance, Guest (1997) suggest theories of organizational behaviour and motivation. Additional, (Boxall and Purcell, 2003) also adapted the expectancy theory to describe the linkage between ‘best practice’ HRM and performance. The AMO theory of human performance Appelbaum et al. 2002) and physiological theory (Rousseau 1990) might also find out how the connection between ‘best practice’ HRM and performance work. The Philosophy of the AMO perspective is that HRM policies include mediating changes in employee abilities, motivation and opportunities to participate the influence employee performance. Boselie et al. (2005); Purcell & Hutchinson, (2007) This theory also used as reference by author to develop the framework research. However, for the organization performance, it required skills, experience and knowledge to do all the necessary work for the benefit of the organization Appelbaum et al. (2000).
Moreover, it is argued that in order to bring lasting and better results and to significantly contribute to the success of the organization, employee must be motivated, committed and satisfied Paul & Anantharaman (2003) ; Paawe, (2004). Additionally, it is accepted that unless organization is able to retain its employees, it will not able to take advantage of on the employees developed within organization. Thus, employee’s retention and employee presence may have positive impact on organization effectiveness Boselie, Paawe, & Jansen, (2001) Regarding to this article, we can assume that employee performance affect to organization success.
In HRM activity, performance placed in the development stages. There are many of performance measurement in organization. Paauwe (2004) defines performance by integrating both financial-economic and employment relationships dimension and propose a multidimensional model of performance. Most of the studies are focus on the organization performance. But this study highlight on the performance of employees. Organization competitions in a globalized economy is hard than before. I will not wary stressing that fact. Hence the challenge for organizations, especially small business owners, is greater.
Not only employees, but everyone in the organization must strive to put their best in their individual roles to ensure that business plans and strategies are implemented and goals are met. It is now a driving force behind performance. We can summarize that performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. “ THE FINDINGS AND IMPLICATION OF RESEARCH The study was presented respondents from 20 local government service department. The participated department were Benefits/Revenue, Planning, Housing, Waste and Leisure.
Data were randomly collected from front-line employees, supervisors and managers working in Malaysia Government organization. Of the 750 questionnaires issued, 453 questionnaires were completed and returned. The demographic profile indicate majority of respondent for this study were female, aged between 21-30 years, had SPM/MCE educational qualification, worked permanently as frontline staff and members of the union and majority of respondents worked for 5-10 years in the current job and for authority. This studies support Hypothesis H1, H2, H3, H5 and H6; however rejects Hypotheses H4,H7, H8 and H9.
The First H1, Regarding relationship between best practice HRM and employee motivation in local government of Malaysia is COMFIRMED. The Hypotheses H2, regarding relationship between best practice HRM and job satisfaction is COMFIRMED. The Hypotheses H3, concerning positive relationship between best practice HRM and organizational citizenship behaviour also is COMFIRMED. The Hypothesis H4, regarding positive relationship between best practice and stress is NOT COMFIRMED. The Hypothesis H5, regarding positive relationship between best practice HRM and perceived organizational performance is COMFIRMED.
Finding Contribution To The Theory and Practice of HRM The result show there was a positive and strong relationship between HRM practices and perceived organizational performance, meanwhile Medium relationship with motivation, job satisfaction and organizational citizenship behaviour. Stress was found weak inverse relationship with HRM Practice. Thus, the result show that HRM practices enhanced employee motivation, job satisfaction, organizational citizenship behaviour and perceived organizational performance and reduced employee stress in local government organization.
Concerning relationship between employee outcomes and perceived organizational performance, the result show that perceived organizational had significant effect on one dependent variable in Malaysia local government organization. Specifically, Motivation had effect on perceived organizational performance. Job satisfaction, organizational citizenship behaviour and stress had no significant effect on perceived organizational performance. THE BENEFITS OF THE FINDINGS OF KNOWLEDGE HRM
We can conclude by this study point out the best practice HRM improve and enhanced employees’ motivation, job satisfaction, organizational citizenship behaviour and perceive organizational performance with less employee stress in Malaysia government organization. Thus, employees in Malaysia were found to be motivated, satisfied and willing to help other with no extra pay especially in middle and top level in organization. Concerning the relationship between employee outcomes and perceived organizational performance, employee motivation predicted perceived organizational performance.
Finally, of the six HRM practices examined, team working consistently had most powerful effect on employee outcomes. Therefore, it appears that team working is an important predictor for achieving desirable employee outcomes in Malaysia local government organization. CONCLUSION Even there are many researchers in Best Practice in HRM, this paper explained more about the affect of employees’ performance in Best Practise of HRM. For Best practice approach, organization able to refer other organization’s successful strategy or general best practice model to improve organization itself.
However, it might lead inflexibility of strategy to the organization and happen different result although follow other organization’s strategy. We can conclude through this study, its recommended and suitable for the policy maker or Top management in order to makes any positive changes or improved the performance of employees in the organization especially for government sector.
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