A structural equation model for measuring human resource management practices in the Jordanian organisations

Abstract

Purpose – The purpose of this study was to examine a factor structure of human resource management (HRM) practice scales through testing a causal model of HRM practices and to have one combined composite multi-dimensional HRM scale, to identify possible future directions for HRM strategy development and professional practice in Jordan. Design/methodology/approach – Data were collected from 493 front-line employees from Jordanian organisations. The measurement model was tested on the complete dataset using exploratory factor analysis employing SPSS 17.0. Maximum likelihood method was used to determine the underlying factor structures. Confirmatory factor analysis was employed using LISREL 8.80 to further investigate the latent structure of the factors. Findings – This study finally evidenced a good fit of data for a hypothesis four-factor model. The final model supported a conceptual framework that is inclusive of four domains, recruitment and selection, training and development, performance appraisal, and rewards and benefits, and lends support to the construct validity of the consolidated HRM practices scale. Research limitations/implications – First, the limited amount of research available on HR practices has limited the opportunity to gather content-rich information from the previous studies. Second, this study used three different scales to measure the four HRM practices as there was no one composite scale. Third, the validation of the HRM practices scale was based entirely on front-line employees working in Jordanian organisations. As a result, the psychometric properties of the HRM practices scale may not be generalisable to varied professions. Practical implications – The findings of the study highlight the importance of the composite views of the HRM practices scale as a multi-dimensional construct. The study illustrates the parameter estimates representing relationships between the constructs under investigation. Originality/value – The present study emphasises the need to expand the focus on HRM practices and contributes to the knowledge in several grounds. First, it validates the structure of HRM practices scales in Jordan. Second, this study enriched the understanding of HRM practices, drawing a sample of participants from different sectors (insurance, finance, services, accounting and industry), and suggests that these variables are as equally prominent as others in explaining employees' attitudes toward HRM practices.