Linking Leadership to Employees Performance: The Mediating Role of Human Resource Management

Nuru Siraj, István Hágen, Afriyadi Cahyadi, Anita Tangl and Goshu Desalegn
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Nuru Siraj: Doctoral School of Economics & Regional Sciences, Hungarian University of Agriculture and Life Science, 2100 Gödöllő, Hungary
István Hágen: Doctoral School of Economics & Regional Sciences, Hungarian University of Agriculture and Life Science, 2100 Gödöllő, Hungary
Afriyadi Cahyadi: Doctoral School of Economics & Regional Sciences, Hungarian University of Agriculture and Life Science, 2100 Gödöllő, Hungary
Anita Tangl: Doctoral School of Economics & Regional Sciences, Hungarian University of Agriculture and Life Science, 2100 Gödöllő, Hungary
Goshu Desalegn: Doctoral School of Economics & Regional Sciences, Hungarian University of Agriculture and Life Science, 2100 Gödöllő, Hungary

Economies, 2022, vol. 10, issue 5, 1-21

Abstract: Human resource management (HRM) practices along with appropriate leadership have a paramount role in enhancing employees’ performance. Even though there was much literature on the subject of HRM and leadership, there were still some unanswered questions about the set of HR practices that most effectively contribute to improved employees’ performance through proper leadership. The primary goal of this research was to look at how leadership quality affects employee performance, as well as the function of human resource management in mediating the relationship between leadership and employee performance in manufacturing industries in Addis Ababa, Ethiopia. The study used an explanatory and descriptive research design, and a mixed research approach (qualitative and quantitative), to achieve its goal. More specifically, a multi-stage sampling technique (simple random and purposive sampling) was employed. The data was collected from both primary and secondary sources, and analysis was made using a structural and measurement model by AMOS Version 2021. The finding of the study implies that; leadership has a positive and significant relationship with employee performance through human resource management, hence the full mediating role of human resource management was observed between leadership and employee performance. This study is novel in that, it contributes new finding to the existing literature by combining the relationship between leadership and employee performance in a single study and two different directions (direct and indirect). Hence, the recommendations can be applied by industry managers to boost employees’ performance through appropriate HRM practices and leadership by taking this finding as a benchmark. Based on the finding of the study, we recommend industry managers focus on human resource management indicators such as collaboration, involvement, actualization, perceivance, and teamwork to boost their leadership quality that deliberately influences employees’ performance.

Keywords: HRM practice; leadership indicators; employees’ performance; manufacturing industry (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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