Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service

Abstract In this article, the authors examine how, when and to what extent HR practices affect performance at the employee level. As performance is a multi-faceted and complicated concept, HRM outcomes were used as mediating factors between HR practices and employee performance. The data were collected among civil servants in Eritrea, Africa's youngest and poorest country. Although the results generally are in line with previous studies using Western data, their implications in this particular country may be different. Therefore, the challenges and prospects of HR practices in Eritrean civil service organizations are critically analysed and discussed. In the authors' opinion, that the Eritrean economic and political environment within which HR practices operate has not been conducive in maximizing the impact of HR practices on performance. These findings highlight the situation of most developing countries. Keywords: Human resource managementHRM–performance linkcivil service organizationsEritreadeveloping countries