Recent investigations suggest that human resource practices influence organizational performance through their effect on key mediating variables. However, the link between human resource management practices and innovation performance is yet to be determined and little is known about the variables that can mediate this relation. The diverse results of studies in this field seem to suggest that the sector of activity may determine specific aspects of this relation. By analysing data from a single industry, this paper aims to increase understanding of the mediating role of human capital in the relation between human resource management practices and innovation.

These functions will be follows.

Human resources planning

Through job analysis and strategic planning, including assessment of the environment and projections for future business, we can generate forecast short- and long-term staffing needs and the strategic use of the human resource functions to meet those needs.

Recruitment

Various methods will be use to attract suitable applicants from labour pools.

Selection

The selection process will be use to hire the best people into the positions for which they are most suited.

Training and development

These functions facilitate the development of knowledge, skills, and attitudes required for staff to perform in their current position and/or to prepare for advancement.

Compensation, benefits, and recognition

Businesses need to determine appropriate types and levels of remuneration and incentives, including wages, formal benefits,and perquisites (perks).

Performance management

Providing feedback to employees on their work performance encourages and supports improvement. Also included in performance management is coaching. Progressive discipline is a separate process intended as a formal corrective process to address unsatisfactory behaviour or job performance.