IMPACT OF HRIS PRACTICES ON THE EMPLOYEE PERFORMANCE – A MEDIATION EFFECT OF EMPLOYEE ENGAGEMENT

Abstract

Purpose: The study focused on exploring the "Impact of HRIS Practices on Employee Performance," with a specific emphasis on the mediation effect of employee engagement within the context of the IT sector in Hyderabad, Telangana. The primary objective was to examine how HRIS practices influence employee performance and whether this impact is further enhanced through the mediation of employee engagement, particularly regarding Compensation Practices. Research Methodology: To achieve its objectives, the study adopted a Quantitative Research Approach. Primary data was collected from employees working in the IT sector in Hyderabad. The analysis employed Regression and Andrew F. Haney statistical tools to examine the relationships between HRIS practices, employee engagement, and employee performance. Findings: The study's findings reveal a multifaceted relationship between HRIS practices, employee engagement, and employee performance. While it is evident that HRIS practices directly impact employee performance, the study highlights that this impact is significantly amplified when mediated by employee engagement, particularly concerning Compensation Practices. This underscores the strategic importance of compensation management in motivating employees and fostering inclusion, ultimately leading to improved performance outcomes. Furthermore, the study identifies communication, skill development, and recognition as pivotal factors that mediate the relationship between HRIS practices and employee performance. Conclusion: This study provides valuable insights for organizations operating in the IT sector. It emphasizes the substantial impact of HRIS practices on employee performance, with a particular focus on Compensation Practices. Additionally, it underscores the significance of employee engagement as a mediator, highlighting the role of communication, skill development, and recognition in enhancing the connection between HRIS practices and employee performance. Aligning HRIS practices with employee engagement factors not only positively influences individual performance but also contributes to an overall positive company culture. This leads to improved performance across the organization. Therefore, the study supports the rejection of the Null Hypothesis and the acceptance of the Alternative Hypothesis, confirming the significant impact of HRIS practices on employee performance, particularly when mediated by employee engagement.