An analysis of the relationship between HR professionals' competencies and firms' performance in Malaysia

Abstract

This study examines the competencies of human resource professionals in the manufacturing companies of Malaysia. The competencies that are examined in this study are business knowledge, strategic contribution, HR delivery, personal credibility, HR technology and internal consultation. All these competencies will be tested whether or not they are significantly related to a firms' performance. The sample employed here consists of HR professionals from Malaysian manufacturing companies in the southernmost state of Malaysia, Johor.A total of 89 firms responded to the survey exercise. This study uses quantitative methods such as spearmen ρ correlation and multiple regression analysis to test the variables. The finding shows that the top nine ranking HR competency factors are from the domain of personal credibility and HR delivery. The respondents' self-rated competency shows that personal communication, legal compliance, effective relationship and performance management rank above all other factors. Competencies such as strategic contribution, business knowledge, HR technology and internal consultation have significant correlation with firms' performance. Furthermore, it is found that out of all HR competencies, the highest contributions to a firm's performance are strategic contribution and internal consultation.