An Empirical Study of the Relationships among
Employee’s Perceptions of HR Practice, Human Capital,
and Department Performance: A Case of AT&T Subordinate
Telecoms Company in Taiwan
Ming-Kuen Wang, Kevin P. Hwang and Shing-Ruei Lin, Department of
Transportation and Communication Management Science, National Cheng Kung University, Taiwan
ABSTRACT
The telecom industry in Taiwan began to enter a vigorous development stage after Taiwan’s Legislative Yuan
enacted the three major telecommunications laws in 1996. After 2003, the number of mobile phone subscribers began to
shrink after reaching a climax penetration rate of 111%. The problems which were ignored during the high growth
period began to appear. This research discusses which human practices are effective in developing human capital and
whether they will influence the performance of the telecom industry. Human capital is used as a mediate variable
between human resources and department performance. Through a questionnaire survey, an analysis by mean, standard
deviation, and Pearson correlation is performed. A causal multivariable analysis by structural equation modeling (SEM)
is used to test the causal relationship among these factors.
Keywords: Human Resource Practice, Human Capital, Department Performance
INTRODUCTION
Taiwan’s telecommunication industry began to enter a vigorous development stage after the Legislative Yuan
passed laws of telecommunication in 1996 and opened mobile telecommunication service in 1997. The number of
mobile customers increased fast from 1998 to 2002, and many operators regarded the increase of subscription numbers
and market shares as the first priority of their business goals. (Peng, 2001; Liu, 2002) Since the turn of 2002, the
customer subscription rate has become saturated; the penetration rate of 111% began to drop and operators began to
experience challenges in profit growth and market stability after the growth period. The problems and the human
resources issues that had been ignored began to emerge. (Liang-Chih Huang et al., 2004; Hwang et al., 2005)
Wireless
Fixed
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
2003
2004
2005
2006(predict)
Figure 1: The grow rate of telecom and network markets, Source: IEK (2005/12)
Under the impact of liberalization and internationalization, telecommunications operators have to maintain
business advantages to survive. The environment of telecommunication industry continues to change significantly; it
influences users’ attitudes and behaviors, causing the same things to be perceived differently. So the strategies and
practices of human resources management became more important. Ulrich (1997) points out, that when it is easier to
obtain funds and production technology, competition advantage is cultivated from human resources inside organizations,
especially the strategic management of the human resources. Although there are a lot of methods to create competitive
advantages, some methods are easily imitated and substituted. Human resources practices are less likely to be imitated.
Therefore, to maintain the competitive advantages that were created from implementing human resources management
practices is easier than other methods (Kleiman, 1997). In addition, the human resources management practices are
important to accumulate and develop human capital, and the human capital is the important factor to affect organization
performance. What kind of management practices can properly apply and use human capital to achieve business goals
would be an important issue for all modern enterprises?
Total
Wireless
Fixed
(in billion)
450
400
350
300
250
200
150
100
50
0
2002
2003
2004
2005
2006(predict)
Figure 2: The output value of Telecom and Network market, Source: IEK (2005)
Under keen competition, human resources have played an important role in the telecommunications industry.
Besides effective allocation of entity resources, the appropriate application and allocation of human resources have
served competition advantages when technology is available and competitiveness is fair.
Many scholars have considered the relationship of human resources management and organization performance
(Huselid, 1995; Delery & Doty, 1996; Chia-Chi Huang, 2002), but there is very little research about the role of HRM in
the telecommunications industry. The main purposes of this research are to understand the profile of human resource
practices in the telecommunications industry, to explore the relationship of human resource practice, human capital, and
to provide suggestions for telecommunication operators to improve their human resource practices and to raise their
organizational performances.
THEORY BACKGROUND
Human Resource Practices
In the past, personnel departments have only administered the employment and dismissal of organizational staff
and carried out wage policies and controls over the welfare plans of organizations (Dessler, 2001). With the rising
importance of manpower capital, organization begins to face the role of resources management within an organization
and expand its business scope to recruitment, settlement, training, and development. Even today, the role of human
resource management has been changing from the inspection of trainees to the developing of competitive strategies;
they cooperate in the competitive strategy of the organization and become one of the important factors to improve
organization performance.
One of the most important functions in an enterprise is manpower resource management; its importance is
perceived in the development of an organization. This is because the change in the fast management environment faced
by enterprises makes the human resources become an important asset. The functions of human resources management
should include recruitment, selection, transference, promotion, dispatch, training, development, wages, welfare,
labor-capital relationship, employment assurance, and laborer security (Dessler, 2001). Noe, et al (2003) define human
resources management as the policy, practices and system that influence the behavior, attitude, and performance of staff;
thus, all human resources practices must proceed on the basis of the strengthening tactics of the entire organization’s
performance.
Pfeffer (1994) has put forward the concept of “best practices” in the human resources management tactics; these
include: overarching philosophy, employment security, selectivity in recruiting, high wages, incentive pay, employee
ownership, information sharing, participation and empowerment, teams and job redesign, training and skill development,
cross-utilization and cross training, elimination of status symbols, promotion within, long-term perspective, wage
compression, and measurement of practices. Such 16 items are the human resources management activities necessary to
create competitive advantages. Pfeffer (1995) goes one step further to propose alternative selection, working guarantees,
high-level wages, rewarding wages, allotment of shares to staff, information sharing, the participation of the staff,
manage the group oneself, training technical abilities. The job wheel can improve the important human resources
management practices which organize the performance to adjust 13 items of to promote and symbolize with the equal
doctrine with the mutual training, wages compressing, inside etc., and considered these 13 activities to reach the
characteristic possessed together of organization of competition success through managing the staff.
Human Capital
Human capital is defined as the personnel who possess the ability, experience, and knowledge to create the
economical value of an organization. (Snell & Dean, 1992; Lepak & Snell, 1999; Van Buren, 1999).
Snell & Dean (1992) maintain that a staff's ability and knowledge can promote productivity; so human capital
refers to the personnel who own the ability, experience, and knowledge that have economical value for organizations.
Lepak & Snell (1999) emphasize that human capital is the staff's technological ability; it is the result that the
organization makes the investment sedulously; hence, only on the premise of improving productivity, thus the capital
investment of manpower is worthy. Dzinkowski (2000) thought that the human capital means the personnel's know-how,
capabilities, skills and expertise in the organization.
Knight (1999) argues that human capital is personal specialty and technical abilities of which enterprises cannot
depose; when enterprises employ, develop and keep the best talent, the value of the human capital increases promptly.
The human resources manage the constant investment in the manpower capital (Lepak & Snell, 1999). So, an
organization makes the investment and accumulates the manpower capital through various channels to improve
productivity and then raises remuneration.
The characteristics of promoting efficacy and efficiency, competitive advantages, threat blocking, and all human
resources are the same as other resources, which posses value to enterprises; it is, moreover, the key resource;
enterprises should invest in developing and keeping it. In addition, its rareness is the source of competitive advantage of
the organization; therefore, the organization should endeavor to preserve the existence of its resources (Barney, 1991).
Furthermore human capital has uniqueness and is difficult for organizations to acquire them from the market (Lepak &
Snell, 1999). The uniqueness of human capital should be internalized.
To conclude, the indexes of human capital are divided into quantization and quality indexes, because the scholars
who advocate human capital have different opinions and objective data are difficult to collect. Therefore, this research
constructs the surface with two items of human capital which are developed by Lepak(1999).
Performances
The assessment of department performance may adopt the three indexes used in general engineering: efficiency,
effectiveness and timeliness. Efficiency is the ratio of output to input, that is to say “do things right.” Effectiveness is
the quality of the output, that is to say “do the right thighs.”
Efficiency refers to the subjective intuition of the group operation efficiency (output, productivity and cost).
Hackman (1991) points out the measurement of team efficiency can depend on three indexes, (1) team performance can
accord with the requests on the quantity, quality and timeliness; (2) the technical ability of team members can improve
the working experiences of the team in the future; (3) team experiences can be contributed to the satisfaction of
individual. The above three indexes are used as the basis to weigh the team performance.
Synthesizing the statements of the above scholars, this research regards case company of telecommunications as
the target and the measurement is adopted as the non-financial entirety performance and subjective self-judgment. The
performance of each department is based on proposal of Lawless (1979) which focuses on the items which are
productivity, and working morale (flexibility, team morale). Members assess their own performance relative to others in
the organization.
ASSUMPTION
Cascio (1991) points out that human resource practices are basically the main method that an organization carries
on its capital investment of manpower. The differences of human resource management activities among organizations
can reflect the level of the capital investment level of manpower. The organization invests in the human resources
practices in order to increase staff's technical ability, knowledge and ability, and it expects that the staff can increase
productivity through these activities in order to increase contributions to the organization in the future. Thus, the
management activities of human resource bring out the activities which can increase the activities of human capital
(Chia-chi Huang, 2003). Enterprises make use of extensive training to invest in unique technology to increase the value
of the enterprise. Since the enterprise requires more valuable and unique staff, the organization uses more formal,
extensive, persistent, and long-term training and more structural programs to ensure the knowledge and techniques can
be acquired and transferred after training. Moreover, valuable contributions are obtained by making use of training to
arouse the creativity of the staff, improve the ability of production, and the ability of service. It can be used to
distinguish the techniques and specialty which could not catch up with other competitors in a short time or the unique
techniques and specialties which are difficult to be imitated and copied (Becker & Huselid, 2001).
Human resources practices have a great influence on the establishment and application of human capital, and an
organization obtains human capital through the activities of recruiting, selecting, and training. That is to say, the
measure of human resource management possesses the meaning of human capital investment respectably, and the
human resources practices has the most direct influence on the construction of human capital in the organization (Snell
& Dean, 1992; Lepak & Snell, 1999; Chia-chi Huang, 2000; Becker & Huselid, 2001). Therefore, the following
assumptions are taken to inspect the relation between the human resources practices and human capital.
Assumption 1: The relation between the human resources practices and human capital is significant.
An investigation into the enterprises of North America was carried out by Watson Wyatt (2000), and he
discovered that either the human capital management or the thirty major practices of human resource management
practices would raise the shareholder value enterprise by 30%. Thus, it can be seen that the relation between the efficacy
of human capital and shareholder value. LeBlanc, Rich, ＆ Mulvey (2000) point out three kinds of human resource
investments to structure human capital; thus, investing in knowledge can enhance the growth of staff and increase the
acquirements of enterprises in techniques, knowledge and endowments simultaneously. The investment in motive can
provide the protection of diseases, suddenness and long-term insurance to create the positive enhancement of valuable
contributions. The investment in opportunity is investing in working environment and working satisfaction, especially
the manifold and meaningful task, the time of completing tasks perfectly, the essential supports and instruments,
sufficient independence and judgment. These investments may make a staffs’ performance reach a peak.
This shows that the influence of human resources practices on human capital in organization is most direct. The
organization can acquire quality knowledge and technique by development of its own or purchase it to improve its
competitive advantage. Nevertheless, knowledge and techniques need applications by well-trained staff to bring the
benefits into full play.
Human capital is the important source of profits in the internal organization, because the profit created by the staff
is the key factor of success. The knowledge, techniques, educations, and experiences are the important factors for
earning profits in the organization; thus, the investments of human capital positively help the productivity of individuals
and the performance of organizations. The sufficient construction of human capital may make the performance of the
staff reach a peak (Sveiby, 1997; Watson Wyatt, 2000; LeBlanc, Rich, ＆ Mulvey, 2000). Therefore, the following
assumption is taken to inspect the relation between human capital and department performance in telecommunications
industry.
Assumption 2: The relation between human capital and department performance is significant.
Chia-chi Huang (2003) adopted the concept of human capital investment and promoted eleven human resources
practices, which included: recruit strictly, training extensively, performance evaluation of behavior orient, competitive
wages, wage based on skills, performance evaluation of development, employee participation, team work, broad job
definition, job rotation and career planning. These are called human resources management systems of human capital
investment practices. Some scholars think that improved skill and knowledge of employees will cause additional
expense and cost, but employees’ skill and knowledge could contribute for productivity and performance (Youndt et al.,
1996; Chia-chi Huang, 2003).
Mak & Akhtar (2003) use job description, internal promotion chance, job security, bonus sharing, training and
performance evaluation to observe the relationship between human resource practices and ROE. The results show that
only the job description and bonus share relate with ROE.
Wright, Gardner and Moynihan (2003) discuss the relationship between human resources practices and operation
profitability. The results find human resources and organizational commitment were related with operation performance
and before-tax benefit.
In fact, much research has demonstrated that human resources practices were related to productivity and financial
performance (Delery & Doty, 1996; Huselid, 1995; Youndt, Snell, Dean, & Lepak, 1996). Other research also
demonstrates the relationship between human resources and profitability (Delaney & Huselid, 1996; Bae & Chen &
Wan & Lawler and Walumbwa, 2003). This shows that organizations could build and sustain the competitive advantage
through implementing human resources practices to further improve performance.
It can be discovered by making a comprehensive survey of the relation of the human resources practices and
performance, whether the management practices from individual prospect or from an integrated management system
prospect have influence on different constructs of the organization performance and whether the organization can
improve the organization performance by certain human resources practices. In the management activities of human
resources, there are many activities related to organization performance, financial performance or human resource
performance (Delery & Doty, 1996; Bae & Chen & Wan & Lawler, 2003; Mak & Akhtar, 2003; Wright & Gardner &
Moynihan, 2003). Therefore, the following assumption is taken to inspect the relation between human resources
practices and performance of department in the telecommunications industry.
Assumption 3: The relation between human resources practices and the performance of department is significant.
Finally, the relation of human capital to human resources practices and the performance of departments are
discussed to investigate whether they have a mediate effect.
Assumption 4: There is a mediate effect of human capital of human capital between human resources practices and the
performances of departments
METHODOLOGY
Data Collection
This research applies a questionnaire survey from the employees of a telecom company as participants. The mean,
standard deviation, Pearson correlation, and SEM were used to analyze the data. A total of 210 questionnaires were sent,
139 were retrieved. Six questionnaires were rejected due to incomplete data, thus resulting in an effective response rate
of 63.3%. The sample characteristics were summarized in Table1.
Table 1: Sample characteristics
Group
Numbers Percentage
Male
60
45.1
Female
73
54.9
Age
20-25
14
10.5
26-30
56
42.1
31-35
39
29.3
36-40
15
11.3
41-45
7
5.3
46-50
2
1.6
Education Graduate school
24
18.0
University
78
58.6
Item
Sex
Definition and Measure of Constructs
Human Resources Practices
This research explores the relationship of human resource practices, human capital, and the performances of
departments. Human resources practices are management practices that relate performances were collected from
previous literature. Five major practices are included: recruitment, training and development, performance evaluation,
wages and employee relationships. The major human resources practices were selected and summarized from previous
research (Huselid, 1995; Pfeffer, 1995; Youdt, 1995; Chia-Chi Huang, 2003), which included recruit strictly, training
extensively, performance evaluation, competitive wages, objective wages, employee relationship, communication,
career planning, employee participant and appeal procedure. The measure items of each practice are referred and
modified from the literature (Delaney & Huselid, 1996; Delery & Doty, 1996; Snell & Dean, 1992; Chia-Chi Huang,
2003).
Human Capital
This research refers to the theories of resources management and human capital to develop human resources
structure. The human capital constructs were referred to the categorization in the researches of Lepak & Snell (1999).
This research uses the uniqueness and value of human capital to describe the characteristics of human capital in
organizations. The value of human capital means Employees’ contribution to organizations. The uniqueness of human
capital means employees’ knowledge and ability, which cannot be imitated.
The measure items of this construct were selected and modified from previous research (Lepak & Snell, 1999;
Barney, 1991). There were six items to measure value and five items to measure uniqueness.
Department performance
This research refers to previous research (Lawless, 1979) and defines the department performance as the percent
of people who achieve specific objectives, adaptable flexible, and efficiency.
The measure items of this construct were selected and modified from previous research. It includes productivity
and work morale to represent department performance. There are six items to measure department performance and use
the subjective perception of each department employee to answer the questions.
RESULTS
Constructs
Recruit strictly
Training extensively
Performance evaluation
Competitive wages
Objective wages
Table 2: Factors analysis results for human resources practices
Factor loadings
Factors’ name Eigen-value
Cumulative (%)
0.194
0.767
0.355
0.610
0.489
0.697
HPWS
5.462613
49.66012
0.196
0.531
0.196
0.771
Cronbach α
0.9370
Employee relationship
Communication
Career planning
Employee participant
Appeal procedure
0.729
0.767
0.669
0.792
0.847
0.310
0.364
0.361
0.217
0.114
ER
1.067534
64.04107
0.9296
Huselid (1995) argues that these practices are not independent; thus, this research standardizes each practice,
followed by factor analysis. Then this research extracts two human resources practices as High Performance Work
System (HPWS) and Employee Relationship (ER) to represent the concept of ten human resources practices. The result
of factors analysis is show in Table 2.
Ten factors are combined to two new factors. The first factor of human resources practices includes recruitment,
training, performance evaluation, competitive wages and objective wages. The nature of human resource practices is
close to some practices, which could raise organizational performance (Appelabum & Batt, 1995; Huselid, 1995).
Therefore, factor one is named High Performance Work System (HPWS); because factor two is used to understand the
subjects of labor-capital relations, it is named Employee Relationship human resources practices (ER).
The reliability test of this questionnaire is shown in Table 3, which is very good. Table 4 provides a statement
statistics and Pearson correlation matrix of the research constructs.
Table 3: Cronbach α of each construct
Constructs
Human Resources Practices
HPWS
ER
Value
Human Capital
Uniqueness
Productivity
Department Performance
Work Morale
Constructs
1. HPWS
2. ER
3. Value
4. Uniqueness
5. Perception productivity
6. Perception work morale
註： *p<0.05, ** p<0.01
Cronbach α
0.9370
0.9219
0.8970
0.8374
0.8510
0.7691
Table 4: Statement statistics and correlation matrix
Mean
S.E.
1
2
3
3.33
0.51
1.000
2.88
0.63
0.688**
1.000
3.51
0.66
0.309**
0.335**
1.000
**
3.19
0.70
0.369
0.352**
0.537**
**
**
3.59
0.72
0.457
0.548
0.467**
**
**
3.87
0.78
0.335
0.466
0.275**
Figure 3: the SEM path
4
1.000
0.429**
0.333**
5
1.000
0.508
6
1.000
According to the reviewed literature, this research develops the structure as Figure 3.
In order to verify the fitness of the proposed model, χ2(Chi-square) is used as a major index as well as some
correlation fitness indices (Shun-Yu Chen, 2004). As Table 5 shows, all indices are higher than base value. The χ2 is
5.511. The P-value (0.480＞0.05), GFI (0.986＞0.9), AGFI (0.952＞0.9) and RMR (0.01＜0.05) all meet the
requirement.
Table 5: Fitness indices of SEM
Fit Indices
Principle
Smaller was better
χ2（Chi-Square）
2
χ （Chi-Square）/ DF
＜ 2
P-Value
＞ 0.05
Goodness of Fit Index （GFI）
＞ 0.9
Adjusted for Goodness of Fit Index (AGFI)
＞ 0.9
Root Mean Square of Standardized Residual (RMR) ＜ 0.05
5.511
0.919
0.480
0.986
0.952
0.01
Besides the fitness indices, there are also structure Reliability and Variance Extracted to test the reliability and
validity of this model. In general, the construct reliability should be more than 0.7 and the variance extracted should be
more than 0.5 (Shun-Yu Chen, 2004).
As Table 6 shows, the construct reliability of the human resources practices is 0.8, human capital is 0.7, and
department performance is 0.7. In the test of variance extracted, the variable of human resources practices has a value of
0.70, human capital is 0.54, and department performance is 0.53. That shows the model of this research has good
reliability and validity.
As Table 7 shows, the un-standardized and standardized coefficients of each path. We could find that each path is
significant from its T-value. This means the human resources practices and human capital have significantly positive
correlations. The human capital and department performance have significant positive correlations. The human
resources practices and department performance have significant positive correlations.
Table 6: Evaluation of test model
Constructs
Construct reliability Variance extracted
Human Resources Practices
0.8
0.70
Human Capital
0.7
0.54
Department Performance
0.7
0.53
Table 7: Coefficient estimation of model
Standardized
Unstandardized
Path
Estimate
Estimate
(Human Resources Practices)→【HPWS】
0.76
0.69
(Human Resources Practices)→【ER】
0.91
1.00
(Human Capital)→【Value】
0.73
0.94
(Human Capital)→【Uniqueness】
0.73
1.00
(Department Performance)→【Productivity】
0.81
1.21
(Department Performance)→【Work morale】
0.62
1.00
(Human Resources Practices)→(Human Capital)
0.54
0.48
(Human Capital)→(Department Performance)
0.46
0.44
(Human Resources Practices)→(Department Performance)
0.51
0.44
S.E.
T-value
0.090
7.699
0.168
5.606
0.193
6.237
0.109
0.139
0.119
4.406
3.144
3.687
Note: |T-value|＞1.96, that means the path was significant
Human resource practices and human capital have significant positive correlations. The human resources
practices of HPWS and ER also have a positive correlation with value and uniqueness of human capital. This means a
company that emphasizes human resource practices could improve the human capital (including value and uniqueness)
of employees.
Human capital and department performance have significant positive correlations. This means employees have
higher human capital (including value and uniqueness) and could improve department performance (including
productivity and morale).
The human resources practices and department performance have significantly positive correlations which means
a company that emphasizes human resource practices could improve the department performance (including
productivity and morale).
Figure 4: the SEM path analysis
Figure 4 shows the significant path coefficients of human resources practices to human capital and department
performance. That means that human resources practices have a direct effect on human capital and department
performance. A company could emphasize human resource practices to improve both human capital and department
performance. The path coefficient of human capital to department is also significant, which means the human resources
practices has the indirect effect on department performance. So we could improve the performance directly through
human resources practices and improve the performance indirectly through the effect of human resources practices
influencing human capital.
CONCLUSION
The relation between human resources practices and human capital
This research shows that there is a positive relationship between human resources practices and human capital;
namely, a corporation that respects and carries out human resource practices would help to increase its human capital.
HPWS has significant positive relationship to the uniqueness of human capital, and ER has significant positive
relationship to the value of human capital. It implies that higher HPWS would help to increase the uniqueness of human
capital.
The relationship between human capital and department performance
This paper shows that there is a positive relationship between human capital and department performance; namely,
the higher human capital of the organizational staff, the higher the department performance would be. Both the
uniqueness of human capital and its value have a significant positive relationship to the performance of department. If a
corporation can improve the uniqueness and value of human capital, it would promote the performance of department
by promoting the innovation of the staff, improving the internal process, and providing the training. They are
professional and difficult to imitate.
The relation between human resources practices and department performance.
The SEM model shows that human resource practices have a significant positive relationship to the department
performance; this means a company that emphasizes human resource practices would improve its department
performance (including productivity and morale). HPWS has significant positive relationship to the department
performance, and ER has significant positive relationship to the department performance. A company that emphasizes
human resource practices (HPWS and ER) would improve its department performance (including productivity and work
morale), especially the ER human resources practices.
Human capital has a mediate effect between human resources practices and department performance.
The SEM model shows that the human resource practices not only have the direct effect to the performance of
department but also have a mediate effect through human capital to affect department performance. A corporation may
raise its human capital of the staff by carrying out human resource practices regularly to raise the performance of
various departments in the corporation. A corporation can directly influence the performance of department by
implementing human resources practices. In addition, the corporation can influence the performance of a department
indirectly by the influence of human resources practices to human capital. A corporation can focus on human resources
practices, which have a significant positive effect on human capital and department performance. In addition, a
corporation may raise its department performance by virtue of direct and indirect effects. An organization could focus
on some human resources practices which are related to human capital and department performance. For example,
extensive training, performance evaluation, competitive wages, objective wages, employee relationship, communication,
career planning, employee participant, appeal procedure should receive focus. If an organization focuses on these
practices, it would improve department performance and further improve the organizational performance.
IMPLICATION AND SUGGESTION
The importance of human resources practices
In this research, the HPWS has a positive influence on the performance of departments. Many scholars advocate
different content of HPWS, but for the most part, content includes selecting, education, training, performance wages,
and promoting. These activities can help an organization to improve its ability and increase its performance. From the
viewpoint of resource basis, owning quality staff in a corporation is the source of competitive advantage; therefore, the
HPWS can foster quality staff. In enterprises of today, the competitive advantages on which organizations depend are
gradually changing from tangible assets to intangible assets. It is important for every corporation to develop and
maintain its quality staff. On the other hand, enterprises should respect more the ER of human resources practices,
because employees that care more about these practices would ensure the employees’ ability and improve the
department performance.
Human resources practices should be implemented.
Both human resources practices and human capital could improve department performance. The source of
competition advantage is to accumulate internal human capital and resources, then to improve performance after
promoting internal efficiency. So the human resources practices should indeed be implemented. Therefore, when
organizations implement human resources practices, they should understand and track the response as well as gather the
feedback of employees. They should supervise at the right moment, which could improve human capital (internal
efficiency) and performance.
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