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THE ROLE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON THE EMPLOYEE PERFORMANCE IN MANUFACTURING FIRMS IN SAUDI ARABIA: MEDIATING ROLE OF EMPLOYEE MOTIVATION⁶
Muhammad Awais Bhatti, Mohammad Alnehabi

ABSTRACT: Employee motivation and performance are the key elements for the organisation’s success, and this can be achieved using effective human resources (HR) management practices. This aspect requires the researchers’ focus, and the present article investigates the impact of HR management practices such as performance appraisal, training and development, and reward and compensation on the employee performance of manufacturing organisations in Saudi Arabia. The research also investigates the mediating impact of employee motivation among performance appraisal, training and development, reward and compensation, and employee performance of manufacturing organisations in Saudi Arabia. The study adopted the survey questionnaires from past studies to gather the primary data from the selected employees. The research also used the PLS-SEM using smart-PLS to check the items’ and variables’ reliability and association among variables. The outcomes indicated that performance appraisal, training and development, and reward and compensation have a positive linkage with employee performance in manufacturing organisations in Saudi Arabia. The outcomes also revealed that employee motivation significantly mediates among performance appraisal, training and development, reward and compensation, and employee performance of manufacturing organisations in Saudi Arabia. The research guides policymakers in making policies related to improving employee performance by employing effective HR practices.

KEYWORDS:  perrformance appraisal, training, and development, reward and compensation, employee performance, employee motivation.

JEL classification:  M14, M19, P2.

⁶Acknowledgments:  This work was supported by the Deanship of Scientific Research, Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Saudi Arabia [Grant No. 3342]