DETERMINANTS OF GEN Y EMPLOYEES' JOB PERFORMANCE, EMPLOYEE COMMITMENT AS MEDIATOR, NOT MODERATED BY LEADERSHIP STYLES

Abstract

The purpose of this study is to examine empirically the effects of human resources practices (mainly rewards, training and development and work-life balance), Generation Y (Gen Y) employee commitment and leadership styles on Gen Y employees’ job performance. The study also investigates human resources practices on Gen Y employee job performance with employee commitment as mediator and both transactional and transformational leadership styles as moderator. This study used the sample data collected which completed by fully employed Gen Y employees of manufacturing companies from Northern Corridor Economic Region (NCER) Malaysia and used multiple measurement instruments. This study will be an original contribution to employers, organization decision makers and human resources practitioners that provides insights about what impacts Gen Y employee commitment and job performance. The outcome of this study will contribute to the leadership development to obtain the skills to lead their Gen Y employees for the better performance. This subsequently will reduce the negative impacts such as low commitment and low performance among Gen Y workforce. Data were obtained from 203 Gen Y employees who are working in manufacturing companies in Northern Corridor Economic Region (NCER). Data were analysed using partial least squares technique (PLS-SEM). Results show that rewards and work-life balance have positive effect on targeted Gen Y employee commitment. While employee commitment mediates the relationship between rewards and work-life balance and employee job performance. However, this research paper couldn’t show the transactional and transformational leadership styles as moderator role in the relationship between the three HR practices and employee commitment. Training and development show no positive effect on employee commitment; furthermore, employee commitment also couldn’t mediate the relationship between training and development and employee job performance.