Linking Human Resources Management Practices and Organizational Performance: Evidence from Private Food Industrial Companies in Jeddah, KSA

Abstract

The aim of this article is to explore the intricate relationship between Human Resources Management Practices (HRMP) and Organizational Performance (OP), highlighting the significant impact of various HRMPs on the performance of organizations. Employing a quantitative research methodology, this study engaged a diverse group of 263 participants across different job positions, including Senior Management, Middle Management, Supervisors, and Subordinates. These individuals were randomly selected from a range of private food industrial companies located in Jeddah, Saudi Arabia. To analyze the data collected through questionnaires, the researcher utilized statistical tools such as SPSS and AMOS, aiming to elucidate the influence of human resources management practices on organizational performance. The investigation revealed a clear correlation between certain Human Resource Management (HRM) practices and the performance of orga-nizations. Specifically, practices such as selective hiring, training and development, and employee involvement in decision-making were found to positively impact organizational performance. In contrast, the compensation system and performance evaluation practices were observed to negatively affect organizational performance, while job security appeared to have no significant effect. These findings suggest that the effectiveness of HRM practices is crucial for enhancing organizational performance, particularly within private food industrial companies in Jeddah, KSA. The study further discusses the implications of these findings and offers recommendations for policymakers and HR professionals. It emphasizes the importance of implementing effective HRM practices, like selective hiring, training and development, and encouraging employee participation in decision-making to improve organizational performance. The research also points out that the impact of job security, compensation systems, and performance evaluations on employee satisfaction and loyalty should not be overlooked, as these factors play a pivotal role in optimizing business performance, reducing turnover, decreasing absenteeism, and increasing productivity, thereby fostering enhanced organizational performance across various industries. By shedding light on the dynamic connections between HRM practices and organizational performance, this study contributes valuable insights, especially pertinent to the private food industrial sector in Jeddah, KSA. It uncovers previously unexplored factors that influence performance and provides a practical framework for improvement. This research not only serves as a foundation for future studies but also offers a guide for developing effective strategies to boost organizational performance, adding significant value and insight into the field of human resources management.