Human Resource Management Practices and Organizational Performance : The Mediating Role of Team Competence

his paper aims to examine the impact of human resource management practices (HRM) on perceived organisational performance through employee team competence which are developed by some of the selected HRM practices. An integrated research model has been developed and empirically tested by combining various factors from existing literature. The validity of the model was tested by structural equation modeling (SEM), using AMOS, to data collected from 238 employees working in banks at least from last three years. The reliability and validity of the constructs are established through exploratory and confirmatory factor analysis. The result suggests that employee team competence partially mediate the relationship of HRM practices and organisational performance. The research is limited to Indian banking industry that cannot be generalized to other sectors and the industry. The result of the research will help decision makers of banks to develop effective strategic HRM practices that help the employee to improve their team competence to enable the organisation to achieve competitive advantage. This study is a unique attempt which measures the employee team competence for organisational performance by means of strategic HRM practices. This study contributes valuable insights for HR managers and professionals responsible for human resource development