HRD interventions, employee competencies and organizational effectiveness: an empirical study
Abstract
Purpose
The purpose of the study is to examine the impact of human resource development (HRD) interventions on organizational effectiveness by means of employee competencies which are built by some of the selected HRD interventions.
Design/methodology/approach
An integrated research model has been developed by combining the principal factors from the existing literature. The HRD interventions chosen are training, performance management and career management (development). The validity of the model is tested by applying structural equation modeling (SEM) approach to the information collected from 290 executive and non-executive employees working in two medium size cement manufacturing companies. The reliability and validity of the dimensions are established through confirmatory factor analysis (CFA) and the related hypotheses are tested by using SEM.
Findings
The result indicates that the selected HRD interventions have an impact on building of employee competencies, which in turn is instrumental in improving organizational effectiveness.
Research limitations/implications
The research is undertaken in Indian cement manufacturing companies which cannot be generalized across a broader range of sectors and international environment.
Practical implications
The findings of the study have potential to help decision makers of manufacturing companies to develop strategies which will enable them to improve employee competency, to formulate effective HRD interventions and to enhance the capability of the employees to achieve desired goals and objectives of the organization.
Originality/value
The research is unique in its attempt to measure employee competencies for organizational effectiveness by combining the existing scales of individual competences. The article contributes to the HRD literature, integrating HRD interventions and employee competencies into a comprehensive research model that influence organizational effectiveness.
Keywords
Acknowledgements
We are immensely grateful to Indian Council of Social Science Research, New Delhi for financial support to continue this research work.
We thank Dr James Eric Gaskin, Assistant Professor, Brigham Young University, for assistance in analysing the data in AMOS to conduct SEM, and Dr Masaki Matsunaga, Assistant Professor of Communication, College of Business, Rikkyo University, who provided insight and expertise that greatly assisted the research. We would also like to show our gratitude to Dr Meera Alagaraja, Assistant Professor, University of Louisville, for sharing her pearls of wisdom with us during the course of this research. Although any errors are our own and should not tarnish their reputations of these esteemed persons.
Citation
Potnuru, R.K.G. and Sahoo, C.K. (2016), "HRD interventions, employee competencies and organizational effectiveness: an empirical study", European Journal of Training and Development, Vol. 40 No. 5, pp. 345-365. https://doi.org/10.1108/EJTD-02-2016-0008
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited