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Turkish Journal of Computer and Mathematics Education Vol.12 No.

13 (2021), 3636-3644
Research Article
The relationship between human resource management practices and organizational
performance by mediating role of work motivation: A conceptual model
Mohammad Hani Alzu’bi1, Khatijah Omar2, Omar Jaber Aburumman3
1
Faculty of Business, Economics and Social, Universiti Malaysia Terengganu, Malaysia
2
Faculty of Business, Economics and Social Development, Institute of Tropical Biodiversity & Sustainable
3
Development, Universiti Malaysia Terengganu, Malaysia
Faculty of Business, Economics and Social, Universiti Malaysia Terengganu, Malaysia
1
mohamad.hani1974@gmail.com, 2khatijah@umt.edu.my, 3ojrromar@gmail.com

Article History: Received: 11 January 2021; Revised: 12 February 2021; Accepted: 27 March 2021; Published
online: 4 June 2021
Abstract: The main objective of this study is provide a conceptual model for the relationship between HRM practices
(selection, training & development programs, career development, performance management, and reward) and organizational
performance by mediating role of work motivation. HRM practices are the main engine of work motivation and organizational
performance, through suitable selection systems, sufficient training and development programs, fair and quick career
development systems, fair performance management systems, high reward and benefits, and a high level of motivation in the
work environment, which contributes to enhancing and improving organizational performance. Social exchange theory
supported these relationships, where the organizational performance is impacted by HRM practices (selection, training &
development programs, career development, performance management, and reward) and work motivation. This study
recommended examining the proposed framework by using advanced statistical methods in order to examine the previous
hypotheses and provide the results to help decision-makers in organizations.

Keywords: HRM Practices, Organizational Performance, Work Motivation.


1. Introduction
Public sector organizations in developing countries seek to introduce changes and improvements to enhance their
level of performance. It is clear that these organizations are continuously looking for new ways and methods of
development, which can assist in achieving effectiveness and efficiency (Demircioglu & Audretsch, 2017). The
performance of public organizations in countries around the world, particularly in developing countries has gained
a great deal of attention from researchers and practitioners worldwide (Cheong, 2020). Moreover, several
developing countries are currently facing distinct challenges preventing economic stimulation and growth and
they can be in the form of weak organizations, heightened unemployment rate, and poor infrastructure, lack of
access to finances coupled with ineffective regulations and relevant laws (Srivastava & Dhar, 2016). Some
developing countries are characterized by large economies, while others have small economies, lacking
domestically produced intermediate inputs and capital equipment (Zahonogo, 2016).

Academics and practitioners have been in constant debate concerning the significance of HRM practices in the
performance of organizations (Al Dalaien, Ibrahim & Aburumman, 2020). The argument in favor of the positive
contributions of HRM practices to performance states that the former is able to transform human resources into
strategic assets, considering the potential for complementarities among practices and resources of the organization
(Aburumman, Salleh, Omar & Abadi, 2020). The argument proceeds by contending that HRM practices
engagement can determine the success of the organization (Al Dalaien, Ibrahim & Aburumman, 2020; Wood,
2018), as such practices assist in achieving the organizational goals in terms of profitability, maximization of
shareholder’s wealth, significant return on assets/equity, efficient operations, and excellent customer services
provision (Dar, Bashir, Ghazanfar & Abrar, 2014).

HRM practices reflect a unique method for the formation and shaping of the work attitudes and behaviors of
employees to enhance organizational performance (Al Azzam & Jaradat, 2014; Ibrahim, Hamid, Babiker & Ali,
2015). Prior studies (e.g. El-Ghalayini, 2017; Farouk, Abu Elanain, Obeidat & Al-Nahyan, 2016; Zamanan et al.,
2020) indicated that employee behaviors are formed through HRM practices and they affect the performance of
organizations. Therefore, organizations should follow HRM strategies to enhance employee motivations and
productivity (Faisal, Lee, Malul & Shoham, 2015). In this regard, motivations have a key role in employee’s
performance, and organization performance (Zameer, Ali, Nisar & Amir, 2014). It is thus crucial for the firm bring
about employee motivation through HRM tools (Jouda, Ahmad & Dahleez, 2016; Sunday, Ahmad, Fauzi, Hamid
& Azhar, 2018), like job enrichment, job security, appropriate salary level and incentives to enhance their
performance and to meet the firm goals (Zameer, Ali, Nisar & Amir, 2014).

At level of firms, organizational management is of top significance among managers and practitioner (Abosed,
Eze & Sowunmi, 2018). This is particularly true after the organization reforms and the new technology adoption,
making performance management as one of the central components that organizations have to gauge and

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Turkish Journal of Computer and Mathematics Education Vol.12 No.13 (2021), 3636-3644
Research Article
implement (El-Ghalayini, 2017). To this end, HRM practices can be utilized to boost performance among
employees and ultimately, performance of the organization. It is pertinent for organizations to acknowledge and
accept the importance of motivating employees to increase their performance and it is for this reason that majority
of managers in organizations are focused on HRM practices (Jouda, Ahmad & Dahleez, 2016). Therefore, HRM
practices in an organization have to be promoted by talent recruitment and management for enhancement of its
performance (Taamneh, Alsaad & Elrehail, 2018).

This study aims to provide a conceptual model for the relationship between human resource management practices
and organizational performance by mediating the role of work motivation. Academics and practitioners may find
the findings of this study valuable in its provision of a deeper insight into the HRM practices role in organizational
performance. Moreover, the results of this study may be valuable to other researchers for referencing information
on the HRM practice role in organizational performance, upon which prior approaches can be assessed to resolve
similar management queries and researches can be revised. Researchers are enabled to determine logical flaws,
assumption errors, and management questions that have not been sufficiently addressed by prior studies’
objectives and designs. This study contributes to literature dedicated to the mediating role of work motivation on
the relationship between human resource management practices and organizational performance.

2. Literature Review
2.1 HRM Practices
Human resource management practices are defined as a strategic, integrated, and coherent approach to the
employment, development, and well-being of the people working in organizations (Armstrong, Landers &
Collmus, 2016). Meanwhile, Boxall and Purcell (2011) defined human resource management practices as the
process through which management builds the workforce and tries to create the human performances that the
organization needs. According to Schuler and Jackson (1987), HRM practices can be defined as attracting,
motivating, and retaining employees to ensure the organization's survival.

In prior literature, studies evidenced that human resource management practices implementation is a crucial
approach through which positive outcomes can be generated and maintained. According to Guest (2002), the HRM
impact on performance largely hinges on the response of the employees to HRM practices, and as such, the impact
will be according to the employees’ perception of such practices. In this regard, the existence of a robust selection,
training and development, career development, performance management, and reward system had a positive
relationship with the performance of organizations (Abosede, Eze & Sowunmi, 2018; Rana & Malik, 2017),

There are several HRM practices that have been examined in the literature. For example, Jouda, Ahmad, and
Dahleez (2016) conducted an examination of the HRM practices impact on the performance of employees with
practices including recruitment and selection, training, and development, compensation and incentives,
performance appraisal. Moreover, Imna and Hassan (2016) also focused on the effects of HRM practices namely,
compensation, career planning, performance appraisal, training, and employee involvement, on the performance
of employees. Similarly, Rana and Malik (2017) examined the HRM practices of selection, training and
development, career development, performance management, and reward system on the performance of
organizations.

Human resource management practices have been contended to facilitate positive interactions, particularly
managers in their consideration and concern for their subordinates’ needs (Gould-Williams, 2007). There is
however no consensus as to what exactly constitutes HRM practices and throughout the past several years,
different practices have been proposed and drawn up with no consensus on which one of them or a set of them
constitutes a human resource management aspect. In this study, human resource management is measured through
its practices of selection, training and development, career development, performance management, and reward
system.

Selection refers to a process of decision making as to the selection of the top suitable applicants out of numerous
ones for a job position. The general tendency in the business world is to employ like-minded people, as a result of
which, a homogenous and inflexible organization is developed that lacks diversity and adaptability. The primary
premise in the process of selection is to select the maximum potential information concerning the candidates to
determine if they are suitable for the job position, considering there are factors that influence such information
seeking (Prasad, 2005). In this regard, the candidates are chosen with the use of various methods to assess their
role suitability (Armstrong, Landers & Collmus, 2016) and the methods include individual interviews,
interviewing panels, selection boards, and assessment centers. The recruitment processes that organizations often
adopt can have innumerable obstacles to implement despite the well-established plan on selecting and involving
qualified management teams in the processes.

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Turkish Journal of Computer and Mathematics Education Vol.12 No.13 (2021), 3636-3644
Research Article

Training and development play a key role in ensuring that employees possess suitable skills, knowledge, and
abilities for job completion. Therefore, the selection of the right kind of training ensures that employees have the
suitable skills to run the business, which are constantly updated through best HR practices. In order to satisfy the
present and future business demands, the training and development process has taken a strategic stance as
advocated by several studies; for example, Stavrou, Brewste, and Charalambous (2010) pinpointed the training
and development practices in cross-national cases. Apospori, Nikandrou, Brewster & Papalexandris (2008)
assumed that a huge part of organizational performance level depends on training and there is a need for developing
employees based on a training and development plan to maximize their productivity and work quality. Moreover,
such a strategy mitigates turnover and absenteeism of staff and assists in motivating the employees. To be in
competition lead, training and development should be considered by any organization as the core and it should be
incorporated into the strategies of the organization connected to business goals and performance.

Career development is an interventionist program in the HR field and does not entail merely accelerating career
developments through a structured system, with members of the organizations divided into authority levels,
obligations, monetary benefits, and time spent on the job, but also functions to facilitate proactiveness of workers
to change and feel confident that the changes in the organization fit the new environment (Thite, 2001). It also
maximizes the opportunity of employment and increases the tasks varieties available to employees, adding more
value to the organization through their development and loyalty to its employ (Kaye, 2005). An effective plan of
career development assists in harvesting talent from the internal pool, enabling the organization to align the skills
and competencies of employees to the objectives of the organization. It also allows managers to make informed
decisions when it comes to remunerating and succession planning, recruiting, retaining workers, which in effect,
keeping workers commitment and result-oriented (Kapel & Shepherd, 2004).

Performance management relates to conducting a comparison between pre-determined objectives and the
employees’ actual output. This indicates that if the company is achieving the desired results, then the employees
in effect are optimally achieving the objectives – otherwise, there may be some employees that are
underperforming and not able to reach their target objectives (Stredwick, 2000). Performance management refers
to a strategic and integrated approach towards individual and team performance who are attempting to deliver the
best for organizational success. On the other hand, Khan and Baloch (2017) referred to rewards as the entire
tangible benefits and provisions received by the employee as part of the employment relationship. Rewards do not
pertain merely to the archaic concept of payment week after week, rather it is a holistic value scheme
recommended by the employer to the employee that encapsulates compensation (base pay, short and long-term
incentives), benefits (health benefits, work-life, and others), and careers (training, development and career
development).

2.2 Organizational Performance


One of the top significant variables in the field of management and indicator of a successful organization is
organizational performance (Ghaith, Mutia, Maysoon, & Abdul Malek, 2018). Organizational performance refers
to the actual output or results of an organization as measured against its intended outputs or goals and objectives
(Mumbi & Makori, 2015). In literature, a generally positive and significant relationship has been established
between HRM practices and organizational performance (e.g. Abdullah, Alodat, Aburumman, Hoque & Ige, 2019;
Ghaith, Enas, Mutia, & Abdul Malek, 2018; Amin, Ismail, Rasid & Selemani, 2014; Farouk, Abu Elanain, Obeidat
& Al-Nahyan, 2016). Also, high involvement in HRM practices has a positive role in organizational performance
(Moideenkutty, Al-Lamki & Murthy, 2011). Meanwhile, competing perspectives of HRM impact on performance
supported by the AMO theory revealed that HRM activities maximized the abilities and motivation of employees
and provide them with the avenues through which they can participate and positively impact the performance of
organizations (Van de Voorde, Paauwe & Van Veldhoven, 2012). The mixed perspectives indicate a conflict of
interest between organization and employees and HRM activities were argued to facilitate higher productivity and
profitability among organizations, negating or relegating the interests of employees.

The dynamic competitive environment in the market has forced firms to be proactive in determining and adopting
strategies to ensure their sustainability and survival (Ghaith, 2020; Salleh, Omar, Aburumman, Mat & Almhairat,
2020). Organizational performance largely depends on the use of HRM practices that are successful in the
attraction, development, and retention of qualified, committed, and engaged staff and this premise has been
mentioned time and again in prior literature (e.g., Amin, Ismail, Rasid & Selemani, 2014; Sunday, Ahmad, Fauzi,
Hamid & Azhar, 2018).

HRM practices are the top elements of the organization that improves its performance (Idris, Wahab & Jaapar,
2016; Yousef, Hazril, & Ghaith, 2021). HRM practices in fact have a significant and positive relationship with

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Research Article
organizational performance (Rana & Malik, 2017; Goodarzi & Bazgir, 2015) and in the same way, HRM practices
positively affect the performance of organizations (Aguta & Balcioglu, 2015). Moreover, the selection process as
HRM practices and its relationship with organizational performance is important in each organization (Harky,
2018). Ekwoaba, Ikeiji, and Ufoma (2015) indicated that selection has a positive influence on organizational
performance. It was also concluded by Saviour, Kofi, Yao, and Kafui (2017) that employee selection determines
the performance of the organization to a significant level and is a must to the achievement of organizational goals.

Mansoor, Shah, and Tayyaba (2015) supported a positive relationship between training and development, and
organizational performance. Moreover, Emeti (2015) and Weru, Iravo, and Sakwa (2013) found a positive
significant relationship between training and development, and organizational performance. From the perspective
of Ndibe and Campus (2014) if the right employees are exposed to systematic training, then a significant level in
the organizational performance can be discerned. On the other hand, career management has a positive and
significant relationship with organizational performance in a way that the former has a statistically significant
explanation of the latter (Lyria, Namusonge & Karanja, 2017). In addition, Amin et al. (2014) and Rana and Malik
(2017) found a positive significant relationship between career development and organizational performance.

In the field of management, performance management influences the performance of organizations (Listiani &
Kartini, 2015). Rana and Malik (2017) revealed a significant and positive relationship between performance
management and organizational performance and the same was supported by Abosede, Eze, and Sowunmi (2018).
According to Nirmala and Mekoth (2015), the relationship between performance management and organizational
performance is significant and based on the above findings. On the other hand, the reward system was evidenced
to have a significant and positive effect on organizational performance (Abosede. Eze & Sowunmi. 2018; Rana &
Malik, 2017). Meanwhile, David et al. (2018) found a positive significant relationship between reward system and
organizational performance.

2.3 Work Motivation


Work motivation refers to a process that directs and sustains performance (Salleh, Zahari, Said & Ali, 2016).
Andriani, Kesumawati, and Kristiawan (2018) indicated that motivation is psychological forces determining the
direction of the level of effort exerted by an individual, the persistence level that he maintains in the face of
problems. The concept of motivation may also be described as the reason behind the behavior of people on the job
– it’s the stimulation that drives people to do things through inducements and incentives. Sansone and Harckiewicz
(2000) related that motivation directs specific behaviors towards goal achievement. Moreover, many prior studies
(e.g. Ghaith, Enas, et al., 2018; Pancasila, Haryono & Sulistyo, 2020; Afful-broni, 2012) illustrated that motivated
employee have a tendency to be more productive compared to non-motivated counterparts.

Employee motivation at work significantly influences employees’ performance (Emeka, Amaka & Ejim, 2015).
Thus, it can be stated that motivation enhances the organizational goals and improves both productivity and
performance (Ochola, 2018). In this regard, Muogbo (2013) revealed a significant relationship between motivation
and organizational performance in that motivated workers significantly influenced workers’ performance.
Moreover, motivation was found to have a positive influence on employee performance and organizational
performance (Abubakari & Adam, 2018).

The identification of major factors motivating employees in the workplace is a must for the organization to
acknowledge and understand them in order to influence behavior among employees towards high performance
with the help of suitable strategies (Ghaith, Enas, et al., 2018; De Plessis et al., 2015). HRM practices positively
affect perceived organizational performance, and in this relationship, motivation is assumed to have a mediating
effect. According to Faisal, Lee, Malul, and Shoham (2015), motivation enhances HRM practices (financial
incentives), which in turn, affects productivity and performance in a positive direction. Also, work motivation
mediates the relationship between career development and performance (Sapta & Sudja, 2018). In another related
study, work motivation was found to have a mediating effect on the indirect influence of career development on
organizational performance (Maggis, Yuesti & Sapta, 2018). Furthermore, HRM practices have a significant effect
on employee performance but via mediating effect of work motivation (Abd Halim et al., 2018; Rumasukun,
Rante, Wambrauw & Bharanti, 2015).

3. Theoretical Framework and Hypotheses Development


The main objective of this study is provide a conceptual model for the relationship between HRM practices and
organizational performance by mediating role of work motivation. In the current study, HRM practices (selection,
training & development programs, career development, performance management, and reward) constitute the
independent variables of the study, while the construct of organizational performance constitutes the dependent

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Research Article
variable. Finally, the constructs of work motivation mediate the relationship between the independent and
dependent variables. A conceptual model of this study has been developed by social exchange theory.

The researchers indicated that social exchange theory is based on the principle of reciprocity (Aburumman, Salleh,
Omar & Abadi, 2020; Cropanzano & Mitchell, 2005; Ghaith & Mutia, 2019; Karim, Majid, Omar, Aburumman,
2021). The principle of reciprocity refers to the equal exchange of either positive or negative commitments
between any party (Aburumman, Salleh, Omar & Abadi, 2020). Therefore, if organizations provide a positive
behavior such as suitable selection systems, sufficient training and development programs, fair and quick career
development systems, fair performance management systems, high reward and benefits, and a high level of
motivation in the work environment, thus employees will behave similarly and will commit to positive behaviors
by a high level of performance, which contributes to enhancing and improving organizational performance. Figure
1 illustrates the conceptual model of this study.

Figure 1: A conceptual model of this study

Therefore, the following hypotheses are drawn from the above discussion:
Hypothesis (1): There is a positive relationship between HRM practices (selection, training & development
programs, career development, performance management, and reward) and organizational performance.
Hypothesis (2): There is a positive relationship between HRM practices (selection, training & development
programs, career development, performance management, and reward) and work motivation
Hypothesis (3): There is a positive relationship between work motivation and organizational performance.
Hypothesis (4): Work motivation mediate the relationship between HRM practices (selection, training &
development programs, career development, performance management, and reward) and organizational
performance.

4. Conclusion
The main objective of this study is provide a conceptual model for the relationship between HRM practices and
organizational performance by mediating role of work motivation. HRM practices are the main engine of work
motivation and organizational performance, through suitable selection systems, sufficient training and
development programs, fair and quick career development systems, fair performance management systems, high
reward and benefits, and a high level of motivation in the work environment, which contributes to enhancing and
improving organizational performance. Social exchange theory supported these relationships, where the
organizational performance is impacted by HRM practices (selection, training & development programs, career
development, performance management, and reward) and work motivation. Therefore, organizations should
develop robust strategies to enhancing and improving organizational performance. As a consequence, the intent
of this paper is to discover the factors that affect organizational performance, to urge more future studies about
these factors, to present a general view of what the organization needs to identify the related issues with
organizational performance. Moreover, future studies should be examining the proposed framework by using
advanced statistical methods in order to examine the previous hypotheses and provide the results to help decision-

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Turkish Journal of Computer and Mathematics Education Vol.12 No.13 (2021), 3636-3644
Research Article
makers in organizations, as well as examine that other HRM practices such as employee empowerment, teamwork,
employment security, information sharing, and job description, and their impact on work motivation and
organizational performance.

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