This study aims to examine the impact of human resource management (HRM) practice, employee motivation (moderator), and employee retention (mediator) that could enhance the production performance of the manufacturing industry in Malaysia. This study utilized a deductive, quantitative approach to explore labor sourcing strategies within Malaysia's manufacturing sector, aligning with positivist assumptions. A total of 369 respondents completed the survey, surpassing the requirement for robust analysis. The study reveals the significant impact HRM practice on Malaysia's manufacturing industry production performance. Motivated employees amplify these benefits, as indicated by increased standardized path coefficients, and employee retention partially mediates the relationship between motivation and performance. Managers are advised to implement motivational and retention programs to foster a stable, high-performing workforce, thus enhancing production performance through HRM practice.
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