Exploring the Role of Human Resource Management Practices on Labour Productivity in Libyan National Oil Corporations

This study aims to explore the effect of human resource management practices on labour productivity in the Libyan national oil corporation. Labour productivity demands high staff selection and job training, decentralised decision making and high employees' motivation of the human factors. Hypothetical deductive approach was used to carry out the research through structural equation modelling. This study involved a cross sectional survey through 339 respondents among three top Libyan national oil corporation. Results revealed that decentralised decision making and on-the-job training had a positive and significant relationship with labour productivity. Meanwhile, employees' motivation and staff selections were found to be non-significant in the Libyan context. The findings implied that the oil and gas industry must concentrate on the key antecedents of HRM in order to increased long-term productivity and turnover. The role of employees' motivation and staff selection as HRM practices contradict the results of previous studies that found these factors to be crucial for labour productivity. Thus, such relationships need to be further explored and investigated. The study commemorates the rising argument among researchers that organisational human resource policies can improve labour productivity and organisational goals. Labour productivity is significantly influenced by two major dimensions towards progressive HR practices. This study contributes to the existing empirical analyses of HRM practices and labour productivity.