Keywords (Extracted from title, table of contents and
abstract of thesis)
Professional, Tested,
Organizational, Resource, Impact, Different, Practices, Mediation,
Performance, Financial, Statistical, Tools, Management, Employee,
Human, Role, Development |
|
Abstract
The objective of
this study was to explore the impact of different Human Resource
Management (HRM) practices (i.e. recruitment and selection, training
and development, performance appraisal, career planning system,
employee participation and compensation system) on Perceived
Organizational Performance (POP) and Organizational Financial
Performance. Another purpose was exploring
mediating role of Employee Performance (EP) between HRM practices
and Perceived Organizational Performance.
This research study is based on the universalistic perspective
showing that a fixed set of best practices can create surplus value
in various business frameworks.The Harvard model developed by Beer
et al. (1984) guided initial process of domain identification.The
most relevant HRM domain recruitment and selection, training and
development, performance appraisal, career planning system, employee
participation, and compensation system followed by universalistic
perspective has been selected for the study.
Human Resource Professionals working in different companies of five
industries Banking, Insurance, Leasing, Modaraba and Investment were
selected for data collection. Primary data from 274 HRM
professionals of 129 companies were collected using questionnaire.
Secondary data was collected from the published financial reports of
the companies listed with Karachi Stock Exchange (KSE) for the
period of five years starting from 2004 to 2008.
The demographic variables, Industry type, organizational life, no of
employees, gender, employee age, education and experience were used
with the purpose to find out control variables.The ANOVA identified
two variables gender and education significant. Therefore throughout
the study these two were used as control variables. For the analysis
purpose statistical tools ANOVA, Correlation and Regression were
tested using Excel and SPSS. Results identified that all human
resource management practices were positively correlated with
perceived organizational performance and perceived employee
performance, while none of the HRM practice showed substantial
contribution towards organizational financial performance.
Correlation and beta values of HRM practices were significant with
POP in the banking industry. Recruitment and selection (β = .662, p
< .001) followed by employee participation (β = .516, p < .01)
showed significance in the insurance, (β = .343, p < .001)
performance appraisal in the modaraba, and recruitment and selection
in the investment industry. Recruitment and selection, training and
development and the compensation system significantly contributed
towards the Marris Ratio in the modaraba industry. The compensation
system in the insurance industry, performance appraisal and
compensation system in the leasing industry contributed towards
Tobin’s Q, employee participation in the banking industry, career
planning system and employee participation in the leasing industry
and compensation system in the modaraba industry contributed
significantly towards Return on Equity (ROE). Recruitment &
selection and employee participation in the banking industry,
compensation system in the insurance industry and the
modaraba and training & development in the investment industries
contributed towards Return on Assets (ROA).
Employee performance has been tested as mediator between HRM
practices and POP. As per recommendations (Barron & Kenny, 1986)
partial mediation of employee performance has been proved between
HRM practices and POP.
This study indicated that organizations using HRM practices
effectively on a wider scale generate higher performance.To survive
and sustain for the future, it is important that the financial
sector companies should implement HRM practices to boost employee
performance and the organizational performance index (OPI).
|
