The Impact of Human Resource Management Practices on Perceived Business Performance: Evidence from Sri Lankan Manufacturing Firms

Abstract

The main objective of this paper is to investigate the impact of Human Resource Management Practices (HRMPs) on Perceived Business Performance (PBP) of ISO 9001 QMS certified manufacturing firms of Sri Lanka and also to examine the moderator effect of firm age on the relationship between HRMPs and PBP. The study was designed as a cross-sectional field survey and used a structured questionnaire technique to collect data from a sample selected using a simple random sampling technique from a known population and SPSS software is used for survey data analysis. The major finding indicates that overall HRMPs have no positive impact on PBP. However, training and development and recruitment and selection do have positive contributions to perceived business performance. Furthermore, the results indicate firm age has no moderating effect on the relationship between HRMPs and PBP. The findings of this paper are very much important for the Sri Lankan manufacturing industry and policymakers, as it provides clarity by identifying the important HRM practices, need to be focused when consider the enhancing of business performance(BP). Moreover, the results of the study are useful for manufacturing firms in Sri Lanka looking forward to installing ISO 9001 based quality management system within the firms as results provide human resource management practices areas need to be focused. This research is confined to ISO 9001QMS certified manufacturing firms of Sri Lanka and therefore the findings obtained may not be generalized to other countries.