The Impact of Human Resource Management Practices on Employees Loyalty in Malaysia

Abstract

The purpose of this study is to examine the impact that human resource management (HRM) practices have on the organizational loyalty of employees in the Malaysian context. To achieve this objective, the researchers have conducted this study on companies listed on Bursa Malaysia Exchange (Kuala Lumpur Stock Exchange) since most of these companies already have an established human resource department. 432 questionnaires were collected and the data was statistically analyzed using the SPSS software. A Pearson's Correlation test revealed that human resource management practices are significantly and positively correlated with the organizational loyalty of employees in Malaysia. The implications of this research could be used by employers in Malaysia in order to increase the organizational loyalty of their employees through the effective implementation of these human resource management practices.