The Impact of HRM Practices on the Performance of Municipalities. The Case of Slovenia

Abstract

On the basis of existing research, the paper presents a model for analyzing the impact of the use of human resource management practices on organizational performance. The model allows the assessment of these impacts after analyzing the use of human resource management practices and the achieved performance. The model includes a survey questionnaire on human resource management practices, a principal component analysis of the results of the questionnaire, a DEA model to determine the performance and a linear regression model of the impact of human resource management practices on the performance of Slovenian municipalities.

The results of the research confirm a negative (focus on quality and job security) and positive (supervisory practices) impact of the use of certain human resource management practices in Slovenian municipalities on their organizational performance. The findings indicate the need for balancing between focus on quality, employee security, and supervisory practices for better individual and organizational performance in Slovenian local administration.