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Significance on Organizational Performance of Global MNCs: Management Development, Human Resource System, or Employee Engagement?

Author

Listed:
  • Lai Wan Hooi

    (The University of Nottingham)

  • Seyed Abdorreza Payambarpour

    (Universiti Teknologi Malaysia)

Abstract

The present study examined the effect of management development and human resource system on organizational performance as well as the mediating role of employee engagement in the human resource system-organizational performance relationship. A cross-sectional design was adopted with data collected from a sample of 493 managerial staff of the first ten global multinational corporations listed by Fortune magazine 2013 through a survey questionnaire. Hypotheses were tested using structural equation modelling and the results revealed that employee engagement was crucial in influencing organizational performance both directly and as a mediator. The findings also indicate that employee engagement was a more important predictor of organizational performance than management development or human resource system when these factors were taken together.

Suggested Citation

  • Lai Wan Hooi & Seyed Abdorreza Payambarpour, 2016. "Significance on Organizational Performance of Global MNCs: Management Development, Human Resource System, or Employee Engagement?," Proceedings of International Academic Conferences 3606217, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:3606217
    as

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    File URL: https://iises.net/proceedings/23rd-international-academic-conference-venice/table-of-content/detail?cid=36&iid=039&rid=6217
    File Function: First version, 2016
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    More about this item

    Keywords

    organizational performance; management development; human resource system; employee engagement; multinational corporation; structural equation modelling;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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