IMPACT OF DUAL ORIENTED HR PRACTICES ON EMPLOYEE PERFORMANCE: MEDIATION ROLE OF JOB COMPETENCE AND JOB INSECURITY

Abstract

Based on the P-O (person-organization) fit theory, current research explains the dual oriented (HR) human resource practices and elaborates how and when both bundles of HRM (development-oriented and maintenance-oriented) affects employee performance and retention, respectively. According to factor analysis results from the sample of HR managers from different multinational organizations such as Textile, NGO, Pharmaceuticals, Telecoms, Beverages, Unilever, Banks, etc.  it proves that the dual oriented HR practices affect employee performance more than the traditional HR model. In this study, the results confirm the individual positive effects of subsets of dual oriented HR practices on employee performance and employee retention. Specifically, development-oriented human resource practices positively affect employee performance more only when job competence is high. By contrast, the maintenance-oriented HR practices are positively impacting employee retention more only when job insecurity is low. Job competence and job insecurity are mediating these two relations, respectively. These conclusions provide a guideline on the successful design and implementation of human resource practices.