Effects of HRM Practices on Employees' Performance in Lusaka's Formal Sector

Abstract

The purpose of this research was to describe how various human resource management practices such as compensation, training, career planning and employee participation influence employee performance. The study sought to establish the impact of each of these variables in relation to employee performance. Data was collected using a structured questionnaire from employees. Regression and correlation tests were performed on one hundred nine subjects out of a total population of one hundred and fifty. From the analysis, it is evident that the most effective HR practice for improving performance was training followed by compensation. Career Planning came last while employee participation was third in the list. Performance had a strong relationship with training which implies that trained people are more productive than untrained ones. Also, it was found out that participation in employees contributed towards better overall performance through their feeling of being involved and committed to their work. In brief, the research suggests that organized HR approach is important to maintain the best employee performance through training and employee participation. Practical implications of the study include, broadening the range of trainings, making a case for management’s input and providing distinct career lines to employees. A further study should check if these HR practices are effective in different sectors or organizations. Keywords: Employee performance, human resources, training, career planning, employee participation, and compensation.