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Human Resource Practices as Predictors of Organizational Performance: A Structural Equation Modeling Approach

Subash Chandra Pattnaik and Rashmita Sahoo

Global Business Review, 2020, vol. 21, issue 4, 1087-1112

Abstract: The purpose of this research article is to examine the relationship between human resource (HR) practices and organizational performance. Though this research theme has been extensively researched in Western countries, very limited research has been done in the prevailing HRM scenario obtained in developing economies, especially in India. Hence, this article attempts to study the relationship and fill this research gap. A two-stage structural equation modeling (SEM) has been used to study this relationship. In the first stage, the proposed measurement model is validated through confirmatory factor analysis (CFA) and, in the second, the structural model examines the hypothesized relationship between the HR practices and organizational performance. It is found that the two are positively related. The findings of this study strengthen existing literature in the area and have important implications for managers engaged in HR functions.

Keywords: HR practices; organizational performance; predictors; CFA; SEM (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1177/0972150918779286

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