Abstract:
It is now a recognized fact amongst both academics and practitioners
that Human Resources play a critical role in the success of organizations. This
awareness has precipitated the myriad of empirical researches that have
explored the link between the HR practices used by firms and the performance
firms attain. The objective of this study was to first, identify and examine the
extent to which bundles of HRM practices affect performance of Ghanaian
manufacturing firms. Specifically, the study also analyzed the impact of HR
planning, recruitment and selection, training and development, performance
appraisal and compensation and rewards on organisational performance.By
administering a questionnaire to a purposively selected sample of 200
respondents across 8 manufacturing firms located in the Greater Accra Region
of the Republic of Ghana, multivariate regression analysis based on ordinary
Least squares (OLS) estimation was performed to analyze the effects of HRM
practices on organisational performance. The results indicate that control
variables account for only small proportion of the total variations in
organisational performance and that this joint effect is statistically
insignificant at the 0.05 level. The R-square change indicates that the HRM
practices significantly accounted for total variations in performance of
manufacturing firms and this observed effect is statistically significant.
Finally, the results reveal that only compensation and rewards positively and
significantly influenced performance of manufacturing firms. The study
recommends to management of manufacturing firms in Accra to pay critical
attention to their compensation and rewards systems.
