Measuring the impact of human resource development (HRD) practices on employee performance in small and medium scale enterprises

Abstract

Purpose The purpose of this paper is to examine the impact of human resource development practices on employee performance in small and medium scale enterprises. Design/methodology/approach An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 500 employees of the selected SME’s. The validity of the model and hypotheses was tested using structural equation modeling. The reliability and validity of the dimensions are established through confirmatory factor analysis. Findings The results indicate that some human resource development practices impact employee performance. Performance appraisal however does not impact employee performance of the firms studied. Research limitations/implications The research was undertaken in small and medium scale enterprises, and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors. Practical implications The findings of the study will help stakeholders, policy makers and management of SME’s in espousing appropriate and well-articulated HRD practices to improve employee competencies and enhance organizational effectiveness. Originality/value This study extends the literature by empirically adducing evidence that, human resource development practices impact employee performance of small and medium scale enterprises in Ghana.