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Measuring the impact of human resource management (HRM) practices on pharmaceutical industry's effectiveness: the mediating role of employee competencies

Frank Nana Kweku Otoo (Department of Accountancy, Faculty of Business and Management Studies, Koforidua Technical University, Koforidua, Ghana)

Employee Relations

ISSN: 0142-5455

Article publication date: 24 June 2020

Issue publication date: 22 September 2020

1988

Abstract

Purpose

The aim of this paper is to examine the mediating role of employee competencies in the association between human resource management (HRM) practices and organizational effectiveness of the pharmaceutical industry in Ghana.

Design/methodology/approach

An integrated research model was developed by combining principal factors from existing literature. The validity of the model was tested by applying structural equation modelling (SEM) to the data collected from 550 employees of the selected pharmaceutical industries. The reliability and validity of the dimensions are established through confirmatory factor analysis (CFA) and related hypotheses tested using SEM.

Findings

The results indicate that some HRM practices influence organizational effectiveness through their impact on employee competencies. The study further revealed that employee competencies mediate the association between HRM practices and organizational effectiveness.

Research limitations/implications

The research was undertaken in the pharmaceutical industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors and international environment.

Practical implications

The findings of the study have the potential to help stakeholders, policy makers and management of the pharmaceutical industry in espousing suitable and well-articulated HRM practices to influence and shape the skills, knowledge and behaviour of employees and inordinately enhance organizational effectiveness.

Originality/value

This study extends the literature by adducing evidence empirically that employee competencies mediated the association between HRM practices and organizational effectiveness of the pharmaceutical industry in Ghana.

Keywords

Acknowledgements

Retraction notice: The publishers of Employee Relations wish to retract the article Otoo, F.N.K. (2020), “Measuring the impact of human resource management (HRM) practices on pharmaceutical industry’s effectiveness: the mediating role of employee competencies”, published in Employee Relations, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ER-03-2019-0142.It has come to our attention that a large proportion of this article is copied, without sufficient attribution, from a number of earlier sources. These were:i. Otoo, F.N.K. (2019), “Human resource development (HRD) practices and banking industry effectiveness: The mediating role of employee competencies”, European Journal of Training and Development, Vol. 43 No. 3/4, pp. 250-271. https://doi.org/10.1108/EJTD-07-2018-0068ii. Otoo, F.N.K., Otoo, E.A., Abledu, G.K. and Bhardwaj, A. (2019), “Impact of human resource development (HRD) practices on pharmaceutical industry's performance: The mediating role of employee performance”, European Journal of Training and Development, Vol. 43 No. 1/2, pp. 188-210. https://doi.org/10.1108/EJTD-09-2018-0096.iii. Otoo, F.N.K. and Mishra, M. (2018), “Influence of human resource development (HRD) practices on hotel industry’s performance: The role of employee competencies”, European Journal of Training and Development, Vol. 42 No. 7/8, pp. 435-454. https://doi.org/10.1108/EJTD-12-2017-0113.iv. Otoo, F.N.K. and Mishra, M. (2018), “Measuring the impact of human resource development (HRD) practices on employee performance in small and medium scale enterprises”, European Journal of Training and Development, Vol. 42 No. 7/8, pp. 517-534. https://doi.org/10.1108/EJTD-07-2017-0061.v. Otoo, F.N.K. (2019), “Human resource management (HRM) practices and organizational performance: The mediating role of employee competencies”, Employee Relations, Vol. 41 No. 5, pp. 949-970. https://doi.org/10.1108/ER-02-2018-0053.The Employee Relations submission guidelines make it clear that articles must be original and must not infringe any existing copyright. The publishers of the journal sincerely apologise to the readers and the original authors of the above-mentioned works.

Citation

Otoo, F.N.K. (2020), "Measuring the impact of human resource management (HRM) practices on pharmaceutical industry's effectiveness: the mediating role of employee competencies", Employee Relations, Vol. 42 No. 6, pp. 1353-1380. https://doi.org/10.1108/ER-03-2019-0142

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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