An Effectiveness of Human Resource Management Practices on Employee Retention in Institute of Higher Learning: - a Regression Analysis

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An Effectiveness of Human Resource Management Practices on Employee Retention in Institute of Higher learning: - A Regression Analysis Eric Ng Chee Hong
Faculty of Business and Finance Universiti Tunku Abdul Rahman Kampar, 41900, Malaysia

eric_ng0530@hotmail.com

Lam Zheng Hao
Faculty of Business and Finance Universiti Tunku Abdul Rahman Kampar, 41900, Malaysia

vinci_lockheart@hotmail.com

Ramesh Kumar
Faculty of Business and Finance Universiti Tunku Abdul Rahman Kampar, 41900, Malaysia

rameshk@utar.edu.my

Charles Ramendran
Faculty of Business and Finance Universiti Tunku Abdul Rahman Kampar, 41900, Malaysia

charlesr@utar.edu.my

Vimala Kadiresan
Faculty of Business and Finance Universiti Tunku Abdul Rahman Kampar, 41900, Malaysia

vimala@utar.edu.my

Abstract An effective human resource management practices namely employee empowerment, training and development, appraisal system compensation are the main factor for the success of a firm on employee retention. In this study, we aim to study how employees regard importance of their empowerment, equity of compensation, job design through training and expectancy toward effective performance management on their retention. Quantitative data was collected using the non probability self administered questionnaire that consist of questions with 5-points Likert scales distributed to our samples of 278 individuals. By using a multiple regression analysis, it is found that, training and development, appraisal system compensation are significant to employee retention except employee empowerment. Base on the results, training, compensation and appraisal is a fundamental consideration for University of Y lecturers’ retention decision; while empowerment is less fundamental to lecturers’ consideration as this can be attributed to the Asian culture characteristic of higher authority conformity. Keywords: Employee Empowerment, Training and Development, Appraisal System, Compensation, Employee Retention.

1. INTRODUCTION
Employees are the backbone of an organization. Hence, the retention of the employees is important in keeping the organization on track. In order to retain the best talents, strategies aimed at satisfying employee’s needs are implemented, regardless of global companies or small-sized firms. Generally, organization would retain their personnel for a specified period to utilize their skills and competencies to complete certain projects or execute tasks. In another word, we can understand it as employee retention where the scope of task, is however, often larger than a simple task and more preferably a job in real world. Retaining the desirable employees is

International Journal of Business Research and Management (IJBRM), Volume (3) : Issue (2) : 2012

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beneficial to an organization in gaining competitive advantage that cannot be substituted by other competitors in terms of producing high morale and satisfied coworkers who will provide better customer service and enhanced productivity, which subsequently resulting in sales generating, customer satisfaction, smooth management succession and improved organizational learning (M. Heathfield, 2005). Malaysia’s education sector has always been centered by government to emphasize higher education level provided to the citizens. Malaysia’s Ministry of Higher Education thrives to create an outstanding higher education environment for establishment of internationally competitive education institutions in order to nurture knowledgeable, competent and globally competitive human resource base (Rosdi & Harris, 2010). Economic Planning Unit (2008) revealed that privatisation of higher education institutions stimulates intense rivalries to match offer for competent high qualification academicians (Hashim and Mahmood, 2011). In addition, the emphasis on continuing upgrading institutions through global ranking further forces them to focus greater concern on employee retention practices (Lew, 2009). In...
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