Human Resource Management Practices and Employees' Engagement in Small and Medium Enterprises in Tanzania: The Mediating Effect of Organisation View

Abstract

The SMEs sector is one of the important sectors in the economy characterized by high failure rate, weak ability to compete in the market and high labour turnover. SMEs need to engage their employees in order to address the mentioned challenges. With this fact, this article examined the mediation effect of organization view on the influence of HRM practices on employees' engagement. The article involved 483 respondents and data were collected through questionnaire. Structural Equation Modeling (SEM) was used as data analysis technique. The results revealed that organization view partially mediated the influence of organisation support and employees' communication on job engagement. Furthermore, the article revealed that organisation view mediated the influence of employees' communication on organization engagement. Hence, among others, the article recommends that SMEs owners/operators should adopt "soft HRM” to determine the influence of organization support and employees' communication on job engagement. They should also apply "soft HRM” to determine the influence of employees' communication on organisation engagement.