Investigating HRM practice effectiveness, manager-employee relationships, and turnover intentions in the South African steel industry

Abstract

This research investigates HRM practice effectiveness, manager-employee relationships, and turnover intention in a South African steel company. The study follows a quantitative research method with a cross-sectional design. A stratified random sampling method consisting of Production, Maintenance, HR, Finance, Procurement, and IT employees was used. One hundred and seventy-one employees in the steel industry reporting to line managers completed three questionnaires through an online survey. Data was collected to assess turnover intention, people management competency, and perceived employment relation quality through an online survey. The results showed that employees were mostly dissatisfied with HRM practices by line managers and perceived them as ineffective. The level of turnover intention among employees was moderate, but they perceived the quality of their relationship with managers to be satisfactory and positive. A multiple linear regression analysis among the variables showed a significant negative relationship between supportive HR practices and turnover intentions, while people management dimensions show no significant effect. The structural equation modelling used for causal analysis established that HR practices have a significant negative relationship with employee turnover intentions but an insignificant relationship with the employee-manager relationship. Manager-employee relationship showed a significantly negative relationship with employee's intentions to quit. However, an indirect effect analysis identified a low and insignificant mediator role of the employee-manager relationship on HRM implementation and Turnover intention relationship, suggesting a need to explore other variables affecting turnover intention. The findings highlight the importance of enhancing HR practices and strengthening manager-employee relationships to improve retention. Recommendations for managerial interventions included improving HR support, investing in line managers' development, and tailoring engagement strategies. Future research recommendations are provided to address unexplored variables for a deeper understating of turnover dynamics in the manufacturing industry in general.