Influence of Human Resource Development (HRD) Practices on Organizational Effectiveness: The Role of Employee Competencies
Keywords:
HRD practices, Employee competencies, Organizational effectiveness, SEMAbstract
The aim of this paper is to examine the influence of HRD practices on organizational effectiveness by means of employee competencies. An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 600 employees of the selected SME’s. 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 (CFA). The results indicate that some human resource development practices impact organizational effectiveness through their influence on employee competencies. Performance management do not influence employee competencies of the firms studied. The findings of the study have the potential to help stakeholders and policy makers of SME’s in adopting properly and well-articulated HRD practices to improve employee competencies in enhancing organizational effectiveness.
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