An analysis of the impact of human resource management on employee practices in the Maltese manufacturing sector

Abstract

The purpose of this qualitative study is an examination of the impact of Human Resource Management (HRM) practices on employees‘ performance, particularly Performance Related Pay (PRP) and similar incentive schemes adopted in the Maltese manufacturing sector. This study provides an insight on the importance of HRM from the point of view of management and employees, exploring the influence of managerial decision-making and the impact of employee‘s practices. This study is based on qualitative research methodology with the resulting data extrapolated from nine interviews carried out with both management and employees. These where carried out in three different manufacturing entities in Malta and each interview included semi-structured open ended questions, which were then analysed through thematic analysis. The respondents recognised the benefits of the Human Resources Management policies (HRMP) and practices for PRP and other incentive schemes through employee involvement and participation but also highlighted the implications and ensuing difficulties that such reward incentive systems can create. This study discuss indentified gaps that may have implications in the Maltese manufacturing sector, mainly: the Multinational corporations human resource management policies and practices limitations, the limited forms of incentive schemes and PRP systems that are presently implemented and other gaps that highlight employers concern about the availability of employees‘ skills and human capital to match emerging requirements in the manufacturing sector. Based on the findings of this dissertation, the author is proposing a number of recommendations which is expected to result in improving HRM practices, employee motivation, performance and improvements of incentive systems in the manufacturing sector.