HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE PRODUCTIVITY: AN EMPIRICAL STUDY IN THE SERVICE SECTOR
Keywords:
Human Resource Management, Employee Productivity, Training and Development, Compensation andRewards, Service SectorAbstract
This study examines the impact of Human Resource Management (HRM) practices on employee productivity in the servicesector. In knowledge-intensive industries, employees represent a primary source of competitive advantage, makingeffective HRM systems essentialfor organisational success. The research adopts a quantitative, cross-sectional surveydesign and collects primary data from 250 employees working in banking, education, hospitality, and informationtechnology organisations. A structured questionnaire wasused to measure five key HRM practices—Training and Development, Compensation and Rewards, Performance Appraisal, Employee Participation, and Work Environment—along with Employee Productivity. Data were analysed using Microsoft Excel through descriptive statistics, reliabilitytesting, Pearson correlation, and multiple regression analysis. The findings reveal that HRM practices have a strongpositive relationship with employee productivity. Training and Development, Compensation and Rewards, and EmployeeParticipation demonstrate statistically significant positive effects on productivity, while Performance Appraisal and WorkEnvironment, though positively related, do not show significant influence in the regression model. The model explains asubstantial proportion of variance in employee productivity, confirming the strategic role of HRM in performanceenhancement. The study contributes to the HRM-performance literature by providing empirical evidence from the servicesector and offers practical implicationsfor managers seeking to enhance productivity through structured HRinterventions.
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