The present research aims to empirically examine the effect of human resource management (HRM) practices on employee outcomes. More specifically, the relationship between performance appraisal, employee compensation, career planning and training and development influences employee outcomes––job satisfaction and performance. A conceptual model is developed and tested. Data was collected using structured instruments from 540 employees of state-owned transportation in southern India. Hierarchical regression results reveal that job satisfaction partially mediates the relationship between employee compensation, career planning, training and development and performance. However, the findings support the full mediation of job satisfaction in the relationship between performance appraisal and performance. Further, the study also supports the hypotheses that (a) training and development is a moderator in the relationship between performance appraisal and job satisfaction and between career planning and job satisfaction, and (b) employee compensation is a moderator in the relationship between job satisfaction and performance. Finally, implications for the literature on HRM are discussed.
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