The effect of HRM Practices, Mediating Role of Work Environment on Employees’ Performance In Manufacturing Industries at Kulim Hi-tech Park, Kedah, Malaysia

Abstract

Human resources management is an important activity in manufacturing firms. The purpose of this study is to identify the relationship between HRM practices on employees’ performance mediated by the work environment in manufacturing industries. Methodology in this study was built where a questionnaire was designed for data collection to measure HRM practices related to pay and incentives, learning activities, and, safety and health mediated by work environment on employees’ performance. Data were collected among employees in manufacturing industries at Kulim Hi-tech Park, Kulim, Kedah, Malaysia which 25600 population, 377 samples, and 222 respondents were successfully collected from 25 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 pay and incentives, learning activities, safety and health, and employees’ performance has a significant relationship on employees’ performance. The finding also showed that pay and incentives, learning activities and, safety and health mediated by the work environment 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 cover pay and incentives, learning activities, and, safety and health to be more effective in improving the work performance among their employees.