The Effect of Human Resources Management Practices on Innovation and Employee Performance (Study Conducted at NGOs Members of FONGTIL) Dili

Abstract

This research was conducted to determine the effect of Human Resources Practices on innovation and employee performance and the effect of innovation on employee performance. This study applies qualitative and quantitative data by using a questionnaire to collect data directly from research subjects.  The number of respondents in this study was 167 respondents from Local NGOs. This study uses WarpPLS software to conduct a Partial Least Square analysis to test hypotheses. The results show that 1) human resource management practices have a positive and a significant effect on employee performance 2) human resource management practices have a positive and a significant effect on innovation and 3) innovation has a positive and significant positive effect on employee performance. It is suggested that attention is needed on compensation, especially in the provision of compensation according to employee performance, regular evaluation of employees who have received training, job appraisals as a basis for providing salaries. Another attention required is on the aspect of innovation, especially the creativity in the development of organizational technology, distribution of tasks according to employees’ abilities and the adaptability of employees within the organization and on the workloads.