Does the perceived efficiency of the HR department matter in influencing satisfaction and employee performance?

Abstract

Purpose

This paper aims to understand the role of perception of HR capability, HR service quality, along with HR inducements, which, in turn, provides satisfaction with HR practices and affects employee performance.

Design/methodology/approach

The data of 155 managers have been collected through a questionnaire to understand the relationship among the studied constructs using partial least square structured equation modeling (PLS-SEM).

Findings

The results suggest that employers should attempt to create a positive perception by providing quality services in the HR domain, and quality services will certainly enhance employee performance.

Originality/value

This study is unique in terms of its contribution. This study has tried to link service quality and satisfaction to HR practices with employee performance. Further, it also shows that HR should be capable and have high HR inducements to provide the necessary and expected HR services, which leads to employee satisfaction with HR practices and employee performance.

Citation

Dhir, S. and Chakraborty, T. (2023), "Does the perceived efficiency of the HR department matter in influencing satisfaction and employee performance?", International Journal of Productivity and Performance Management, Vol. 72 No. 4, pp. 943-961. https://doi.org/10.1108/IJPPM-01-2021-0047