Human Resource Development (HRD) Practices and Organizational Performance: The Mediating Role of Employee Competencies
Keywords:
Employee competencies, HRD practices, Hotel industry, Organizational performance, SEMAbstract
The aim of this paper is to examine the role of employee competencies on the association between human resource development practices and organizational performance. An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 800 employees and guests of the selected hotels. The validity of the model and hypotheses were tested using structural equation modeling (SEM). The reliability and validity of the dimensions are established through confirmatory factor analysis. The results indicate that some human resource development practices impact organizational performance through their influence on employee competencies. The finding further indicated the mediating role of employee competencies on the association between human resource development practices and organizational performance. The research was undertaken in the hotel industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors and international environment. The findings of the study have the potential to help policy makers, stakeholders and management of hotels in espousing properly and well-articulated HRD practices which will stimulate positive behaviours in employees and impact their knowledge, skills and attitudes, and in turn increase productivity and performance. This study contributes to the human resource development literature, integrating HRD practices and employee competencies into a comprehensive research model that influences organizational performance.
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