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Hrm Practices And Its Impact On Employee Performance: A Study Of The Cement Industry In Indonesia

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  • , Ridwan
  • Gani, H. Mursalim Umar
  • Gani, H. Achmad
  • Hamid, H. Sunusi
  • Jamali, Hisnol

Abstract

This research aims to examine and analyze the effect of human resource management practices (i.e. leadership styles, employee commitment, work motivation, and work climate) on employee job satisfaction and employee performance. This study used primary data obtained through a survey to 221 employees as a sample. The result of Structural Equation Modelling (SEM) analysis shows that empirically the leadership style, employee commitment, work motivation, and work climate have positive and significant impact on job satisfaction. Leadership style, employee commitment, work motivation, and work climate, either directly or indirectly have a positive and significant effect on employee performance through job satisfaction as variable intervening. Job satisfaction has a direct positive and significant effect on employee performance. The direct effect of leadership styles, employee commitment, motivation and work climate on employee performance is positive, which means that when the exogenous variables improved the job satisfaction and employee performance will increase. The indirect effect of exogenous variable on employee performance through job satisfaction is positive. The total effect which is the sum of the direct and indirect effects through job satisfaction obtained positive value, which means there is effect of direct effect and indirect effect of exogenous variable on employee performance through job satisfaction.

Suggested Citation

  • , Ridwan & Gani, H. Mursalim Umar & Gani, H. Achmad & Hamid, H. Sunusi & Jamali, Hisnol, 2018. "Hrm Practices And Its Impact On Employee Performance: A Study Of The Cement Industry In Indonesia," INA-Rxiv ubtms, Center for Open Science.
    • Handle: RePEc:osf:inarxi:ubtms
    DOI: 10.31219/osf.io/ubtms
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    1. Weihui Fu & Satish Deshpande, 2014. "The Impact of Caring Climate, Job Satisfaction, and Organizational Commitment on Job Performance of Employees in a China’s Insurance Company," Journal of Business Ethics, Springer, vol. 124(2), pages 339-349, October.
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