Abstract:
Human resources can provide a competitive advantage due to the fact that it is valuable, rare, imperfectly imitable and has no substitutes. Competitors can duplicate competitive advantage obtained via better technology and products but it is difficult to duplicate competitive advantage that is created through improved management of people. The motivation for the research was to establish whether there was a casual relationship between HR practices and organisational effectiveness and between organisational effectiveness and manufacturing performance. The research also developed a model that could be implemented to enhance business performance. Secondary data formed the primary source of information to obtain business performance indicators and information on the HR practices. While the results indicated that there was no directional relationship between HR practices and business performance indicators, findings of the research provide statistical evidence that investment in HR practices of the organisation will have a positive relationship with business performance. Among the HR practices, performance appraisals and career development has a direct casual relationship with the customer satisfaction perspective. The research can be used within the organisation and as a basis for further academic research.
