Impact of Sustainable HRM Practices on Employee Performance: A Study of Employees in a Selected Private Sector Company in Sri Lanka

Abstract

Private sector plays a distinct role in Sri Lankan economy at the present context. Lack of employee performance is one of the major challenging problems faced by the private sector organizations. Private sector organizations incur a huge investment on improving employee performances and introduce novel HRM practices in order to improve employee performance. Sustainable HRM is also such a novel concept aimed at improving employee performance with sustainable outcomes. The major objective of conducting this study is to investigate current sustainable HRM practices and to identify the impact of those sustainable HRM practices on employee performance in one of the leading broiler companies in Sri Lanka. Based on the objectives of the study, semi structured questionnaire was used to collect data from a sample of 100 employees through simple random sampling and the collected data was analyzed descriptively and statistically. Sustainable recruitment and selection, sustainable training and development and sustainable motivation and rewards were considered as the major factors to identify the existing sustainable HRM practices in the company and to test the willingness of employees for implementing sustainable HRM practices. Findings of the study reveal that all the selected sustainable HRM practices were existed within the company and employees were willing to practice, except the practices which are related with advanced technology. In case of impact identification of sustainable HRM practices on employee performance, sustainable recruitment and selection have a significant negative impact. Sustainable motivation and rewards have a significant positive impact on employee performance. In case of identifying the constraints for practicing sustainable HRM practices in the company, lack of knowledge was identified as the most affecting constraint. Consequently, the results of this study may give policy implications for the company to enhance employee performance with sustainable HRM practices while expanding existing literature on sustainable HRM in Sri Lankan context.

Keywords: Employee performance, Sustainable HRM, Sustainable motivation and rewards, Sustainable recruitment and selection, Sustainable training and development