The Mediating Effect Of Employee Motivation On The Influence Of Hrm Policies Towards Organizational Performance In Aviation Industry In Malaysia

Abstract

This study investigates the impact of human resource management (HRM) policies on organizational performance in the Malaysian aviation industry, with a specific focus on the mediating role of employee motivation. Despite Malaysia’s strategic initiatives such as the Malaysia Digital Economy Blueprint and Shared Prosperity Vision 2030, organizations continue to face challenges in achieving optimal performance, particularly due to human capital limitations and digital skill gaps. Utilizing a quantitative approach, data were collected through a structured questionnaire distributed to 350 employees of Malaysia Airlines. The study examined three key HRM practices—compensation, recruitment and selection, and training and development—as independent variables, with organizational performance as the dependent variable and employee motivation as the mediator. Descriptive analysis revealed respondents generally expressed moderate to positive perceptions of their organizational environments. Reliability testing confirmed strong internal consistency across all variables. Correlation and regression analyses demonstrated statistically significant positive relationships among the studied variables. Among the three HRM policy dimensions examined, Training & Development consistently demonstrates the strongest effects on both Employee Motivation and Organizational Performance, both directly and indirectly. This highlights the particular importance of investment in employee development within the aviation industry, where technical skills, safety protocols, and service quality are critical success factors.