The Effect of Perceived High-performance Human Resource Practices on Business Performance: Role of Organizational Learning

Abstract

The primary purpose of this study is to examine the effect of perceived high-performance human resource (HR) practices, that is, extensive training, performance management, performance appraisal, performance-based compensation, empowerment and competency development, on business performance of employees in telecommunication sector. Further, the role of the organizational learning as a mediator between high-performance HR practices and business performance has also been explored. Census method has been used for data collection from employees working in telecommunication sector in Jammu and Kashmir (North India). Reliability and validity have been proved with the help of confirmatory factor analysis (CFA). Structural equation modelling (SEM) has been used for hypotheses testing. Results indicate that high-performance HR practices positively affect business performance. Further, organizational learning act as a mediating variable between high-performance HR practices and business performance. The managerial implications have also been discussed.