Correlations Analysis HUMAN RESOURCE MANAGEMENT PRACTICE AND EMPLOYEE RETENTION – A STUDY OF THEIR CORRELATION IN MALAYSIAN MANUFACTURING COMPANY Authors: MUHAMMAD ZAFIQAZIRAL BIN MOHD ALI ID: PB13030 DR. SITANSU PANDA BACHELOR OF PROJECT MANAGEMENT WITH HONOR UNIVERSITI MALAYSIA PAHANG ABSTRACT This research is about the relationship between human resources practices and employee retention. The objectives of this study is to study the human resource management practices in manufacturing company and to determine the correlation between human resource management practices and the employee retention in manufacturing company. The study is conducted within manufacturing company in the Kuantan, Pahang area and do not involve non-manufacturing company in Kuantan area and other manufacturing and non-manufacturing company in other Malaysian states. There are two main methods that used survey research, probability sampling and non-probability sampling method. Probability sampling method was chosen to conduct this study because of the result is more accurate to the population that was selected. The finding of this study shows that there is no significant relationship between the human resource practices and the employee retention. INTRODUCTION RESULTS With the increases in technological development today, the business environment becomes more and more competitive. Many organizations use their employee’s expertise in order to gain competitive advantages (Reiche, 2007) or to stay competitive (Anvaria, JianFub, & Chermahinic, 2013). These make the retention of expert and valuable employees becomes important for organization, especially for human resources department. Human resources management is important for an organization to build a good working professional team. D.M. Sikora and G.R. Ferris (2014) stated that the operational and financial performance of a firm can be improved by an effective human resources practice. The main function of human resource management team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. Human resource management also help the organization in retaining the employee. Correlations Analysis The table shows the result of the correlation between HRM practice and employee retention which is the Pearson correlation value is -0.074. Based on this result, the relation between HRM practice and employee retention is strong with the r= -0.074and α=0.538 (α=0.01). The relation between the HRM practice and employee retention is determined as not significant. Regression analysis for employee retention OBJECTIVES To study the HRM Practices in manufacturing company. To determine the correlation between HRM practices and the employee retention in manufacturing company. RESEARCH QUESTION a. Hypothesis 1: There is significant positive relationship between employee training and employee retention. Based on table above, the result show that the significant value for employee training is 0.725 which is more than 0.05, which mean this independent variable is not significant toward the employee retention. Therefore, the hypothesis 1 is rejected. b. Hypothesis 2: There is significant positive relationship between performance appraisal and employee retention. Based on table above, the result show that the significant value for employee participation is 0.126 which is more than 0.05, which mean this independent variable is not significant toward the employee retention. Therefore, the hypothesis 2 is rejected. c. Hypothesis 1: There is significant positive relationship between employee participation and employee retention. Based on table above, the result show that the significant value for employee participation is 0.272 which is more than 0.05, which mean this independent variable is not significant toward the employee retention. Therefore, the hypothesis 3 is rejected. What are the HRM practices in manufacturing company? How HRM practices affect employee retention in the manufacturing company? METHODS Quantitaive analysis Statistical Package for the Social Science (SPSS). CONCLUSIONS AND RECOMMENDATION The analysis that involve in this research are demographic profile, reliability analysis, descriptive analysis, regression analysis and correlation analysis. The study also show that there is no significant between chosen human resource management practices and the employee retention on the manufacturing company. The researcher suggested to add more dimension or focussed on other human resource management practices and research on others industry or area.