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

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  • Subash Chandra Pattnaik
  • Rashmita Sahoo

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.

Suggested Citation

  • Subash Chandra Pattnaik & Rashmita Sahoo, 2020. "Human Resource Practices as Predictors of Organizational Performance: A Structural Equation Modeling Approach," Global Business Review, International Management Institute, vol. 21(4), pages 1087-1112, August.
    • Handle: RePEc:sae:globus:v:21:y:2020:i:4:p:1087-1112
    DOI: 10.1177/0972150918779286
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Salman & Imran Anwar & Showkat Ahmad Ganie & Imran Saleem, 2024. "Impact of Human Resource Management Practices on Organizational Performance: Evidence From the Indian Banking Industry," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(1), pages 97-118, February.

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