Impact of HR Practices on Organisational Performance in a Selected State-owned Entity in Mbombela Local Municipality

Abstract

Purpose: The study examined the impact of human resources (HR) practices on organisational performance in a state-owned entity (SOE) within Mbombela Local Municipality. Design/Methodology/Approach: 218 employees from the entity participated in the survey, which employed a convenience sampling technique. The gathered data were analysed through inferential and descriptive statistics. Furthermore, to run the simple linear regression analysis, the study employed Statistical Package for the Social Sciences (SPSS). Findings: The study found an insignificant influence of employee recognition on performance, a negative and significant effect between working conditions and performance, an insignificant link between professional development and growth, and performance, and a significant and positive link between job security and performance. Implications/Originality/Value: Recommendations include that the organisation should review its compensation and benefits package to evaluate its performance and identify areas for improvement. The results are expected to persuade SOEs to dedicate a crucial attention to the benefits implemented within the entities.