The impact of HRM Practices, Mediating Effect of Job Security on Employees’ Performance In Electrical Manufacturing Industries at Penang, Malaysia

Abstract

The purpose of this study is to identify the relationship between HRM practices on employees’ performance mediated by job security in manufacturing industries. Methodology in this study was built where a questionnaire was designed for data collection to measure HRM practices related to compensation and benefits, training and development mediated by job security on employees’ performance. Data were collected among employees in electrical manufacturing industries at Prai Industrial Estate and Bayan Lepas Industrial Zone, Penang, Malaysia which 6322 population, 361 samples, and 222 respondents were successfully collected and analyzed from 28 electrical manufacturing industries. A stratified sampling method was used to collect data and the data obtained were analyzed using SmartPLS version 3.7.8. The finding of study found that the direct impact between compensation and benefits, training and development on employees’ performance has a significant relationship on employees’ performance. The finding also shows that compensation and benefits, and training and development mediated by job security have a significant relationship to employees’ performance. It is proved from SmartPLS analysis. The limitation of the research only covers the manufacturing industries. Apart from these limitations, this research has given a strong impact on the top management of manufacturing industries to design the strategy of human resource management functions to be more effective in improving the work performance among their employees.