Impacts of human resource practices on organizational engagement and turnover intention: case of business employees in Ho Chi Minh City

Abstract

The purpose of this study is examining the relationship of HR practices (Selection, performance appraisal, compensation and career management) with Organizational engagement (OE) and Turnover intention (TI). Basing on previous research frameworks, the study still tests the negative impact of both HR practices and OE on TI. And tests positive impact of HR practices to OE and the mediating role of OE in relationship of HR practices and TI. The survey was conducted with total 405 employees who are working as staff in various sectors in Ho Chi Minh City and studying at UEH. The data was collected by mainly face to face survey; then it was analyzed using SPSS and AMOS software. The results were found that: all the adjusted, developed variables scales used to measure HR practices, OE and TI met the criteria of liability and fitness validity; HR practices with 4 componentes had significant effect on OE and TI. PA had strongest effect on OE (β=0.334) while SE had weakest effect on OE (β=0.083). Each component of HR practices had its own effect on TI. SE had strongest negative effect on TI (β=-0.454) and CM had weakest negative effect on TI (β=-0.017). OE had important role to predict TI (β=-0.424). The result proved that OE played mediator in relationship between HR practices and TI. The study also discussed and proposed about contributions, limitations and managerial implications.