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Impact of Human Resource Practices On Organizational Performance In Education Sector

Impact of Human Resource Practices On Organizational Performance In Education Sector

A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Bachelors in business administration

Acknowledgement

I would like to thank the following persons without whose guidance this dissertation could not have been completed.

First of all I would like to thank my

Allah Almighty

Who always guides me in every walk of my life?

Secondly, I would like to express my sincere appreciation and gratitude to my supervisor Professor For his guidance and insight throughout in making my dissertation and especially, his invaluable suggestions and comments that really guided my research and also helped me to structure my dissertation.

Thirdly I am also very indebted to my class fellows, my father and mother for their continuous support. I owe a lot of their unconditional love and understanding. Well, their suggestions allowed me to think in many different ways. Most importantly, they continually helped me improve my confidence. There were certain times, when I used to say that I just did not think I could go on with my studies, but they always knew just what to say to get me back in the race. They really very special entities of my life what a journey! I will never stop admiring them.

Dedication

I dedicated my work to my honorable parents and my respectable teachers, Prof.  Whose efficient & magnificent devotion to my studies encourages me to achieve this.

Abstract:

The intention of this study is to make sure the effect of human resource management practices like rewards and benefits, recruitment and selection, training and development as well as performance appraisal and their affects on employee performance and how employee performance affect organization performance. I used in this research positivism paradigm as I prepared a questionnaire which consist of 6 heads and each head has 5 questions and filled the questionnaire from 150 employees who are working in education sector. I study the variables rewards and benefits, recruitment and selection, training and development and employee performance as mediator and organization performance as dependent variable. For this research purpose my population is Punjab group of colleges, Superior group of colleges and Leads group of colleges. I used inferential analysis and put the data in Spss software and apply descriptive analysis as well as inferential analysis and write the findings and conclude the result as well as discuss the limitations and delimitations, implications and future research of the study of impact of human resource practices on organization performance in education sector.

Key words: rewards and benefits, employee performance, recruitment and selection, training and development, performance Appraisal and organization performance, TALENT MANAGEMENT

Impact of Human Resource Practices On Organizational Performance In Education Sector

Declaration of Originality: 1

Acknowledgement 3

Dedication. 4

Abstract: 5

Chapter No. 1. 10

Introduction. 10

1.1.     Introduction & Background about Human Resource Practices: 10

Recruitment and Selection: 11

Training and Development: 12

Compensation and Benefits: 12

Performance Appraisal: 12

Employee Performance: 12

Organization performance: 12

1.2.     Purpose of Study: 14

1.3.     Significance of Study: 15

1.4.     Objective of Study: 14

1.5. Research Question and Hypothesis: 16

1.5.1: Main Question: 16

1.5.2: Hypothesis: 16

1.6.     Theoretical model: 17

CHAPTER No. 2. 18

Literature Review.. 18

Impact of recruitment and selection on organization performance: 18

Impact of Training and Development on organization performance: 18

Impact of Performance Appraisal on organization performance: 18

Impact of Compensation and Benefits on organization performance: 18

Impact of Employee performance on organization performance: 18

Chapter No.3: 32

Data and Methodology. 32

3.1. Research Paradigm: 32

3.1.1. Types of paradigm: 32

3.2. Research Approach: 33

3.3 Population and Sample: 33

3.3.1 Population: 33

3.3.2 Sample: 33

3.4 Data & Instrumentation: 33

3.5 Data Analysis: 34

3.5.1. Descriptive Analysis: 34

3.5.2. Inferential Analysis: 35

3.5.3. Regression Analysis: 36

3.6 Ethical Condition: 36

3.7 Limitations: 37

Chapter No. 4. 38

Data Analysis. 38

4.1. What is your Age?. 38

4.2. What is your gender?. 38

4.3. What is your qualification and Designation?. 39

4.4. Descriptive Statistics: 41

4.5. Histograms: 43

4.5.1. First histogram is about Recruitment and Selection. 43

4.5.2. The second histogram is showing us the graph of Training and Development: 44

4.5.3. Third histogram is about Performance Appraisal: 45

4.5.4. Forth histogram is about Compensation and Benefits: 46

4.5.4. Fifth histogram is about Employee Performance: 46

4.5.4. Sixth histogram is about Organization Performance: 46

4.6. Scatter plot: 47

4.7. Correlation: 48

4.8. Regression Analysis: 50

Chapter No.5. 60

Discussion and conclusion. 60

5.1 Discussion: 60

5.2 conclusions: 62

References: 64

Questionnaire. 67

 

CHAPTER#1

Impact of Human Resource Practices On Organizational Performance In Education Sector – Introduction:

1.1 Introduction and Background:

Human resource management practices is the management of people contained by the inner upbringing of organizations, cover the activities, policies, and practices involved in planning, obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate numbers and skill mix of employees to achieve the organization’s objectives (Appelbaum, 2001). Human resource management considers important for business as to attain organization goal to improve its performance and development.

Every organization, whether manufacturing or services, public or private, large or small, for-profit or not-for-profit must operate with and through other people. For the past 15 years, a growing consensus has been seen that organizational human resources, if effectively and efficiently managed, can create a source of sustained competitive advantage through human resource capabilities that are valuable, rare and imperfectly imitable; thus adding value to an organization’s performance (Wernerfelt, 1984; Barney, 1991; Grant, 1991; Mahoney and Pandian, 1992; Huselid, 1995). Therefore human resource has become the most important of all resources across every type of organization all over the world and particularly in the context of the educational sector in developing countries such as Pakistan (which is now considered to be the sixth largest populated country in the world, WPP, 2009).

This is because academic institutions, particularly universities, are responsible for the development of the intellectual acumen of a nation’s human resource. Furthermore, quality of education is considered as one of the major factors that accelerate the development of a country and is the most important instrument in achieving the desired stage of economic development (Economic Survey of Pakistan, 2005). To achieve this level, the performance of teachers is the key feature of human resource factor. According to Delaney and Huselid (1996), empirically suggested that fair rewards, competence development, empowerment, recognition and information sharing all affect organizational commitment. Although several studies have been conducted about organizational commitment, ambiguity still exists about the factors affecting the development and promotion of it (Beck & Wilson, 2001).

The leaders of higher education are of the view that the central functions of higher education i.e. educating people, conducting research and providing community services must be well-maintained, reinforced and expanded. In this regard, universities are those places where knowledge and skills are not only transferred to young generation transforming them into productive and responsible citizens (Gordon and Whitchurch, 2007) but also created. According to Khan (2010), exposed that in energetic business impression, there is a need of an approach to achieve better performance, to originate and implement HRM practices. In substantial and slight extent the education service organizations need to invest in such practices to get a competitive advantage. Job satisfaction is a crucial indicator of how employees feel about their job and describes how much they are contented with his or her job. The satisfaction level of employees also associated with increase output of the organization. Job satisfaction of an employee is essential to the success of an organization. In an organization a high rate of employee contentedness is directly related to a lower turnover rate. Thus, keeping employees’ satisfaction in their jobs with their careers should be a foremost priority for every organization.

According to Bogdanova et al (2008), stated that HRM practices try to develop and allocate human capital in the best possible ways in order to achieve long-term goals; they provide them with many benefits and good environments that would boost employee’s motivation, job satisfaction, and increase their performance. Although as a developing country, educational system of Pakistan is still facing many problems yet a tremendous growth is seen in Higher Education Institutions over last decade due to constant efforts by HEC; an autonomous body which is responsible for allocating funds to Universities, accrediting degree programs and prescribing the guidelines under which all institutions of higher education may operate. Realistically, it is accepted that the organizations with good human resource practices can usually satisfy or fulfill the needs of employees and turn them into more committed personnel of the organization (Slattery & Selvarajan, 2005).

Human Resources Management plays vital role and are critical to the realization of the goal that universities must attract, develop and maintain an energetic workforce to secure their strategic position (Olufemi, 2009). This can be done by identifying those specific HR practices that can prove a hallmark in improving the performance of teachers (Darling-Hammond &Youngs, 2002). Therefore, there is a strong need to conduct research and highlight the kinds of human resource practices that are viable for HEIs of developing countries particularly Pakistan.

In an attempt to explore this linking process, many researchers propose that HR practices are not necessarily directed towards a firm’s performance but they influence employees’ competence and behavior which eventually lead to performance (Delery, 1998; Ferris et al., 1998; Wright et al., 1994). Researchers have presented different models that encompass different levels and types of mediating effects in HR practices. Different HR practices are tested by researchers to get optimal performance outcomes from faculty in higher education institutions as well. However research on HRM in higher education is confined to developed countries only. Very few studies in the context of higher education institutions of developing countries are found that explore the impact of HRM on the overall performance and development of institutions (Olufemi, 2009; Ahmad et al, 2010; Joarder & Sharif, 2011) while none of them have explored the impact of selected set of HR practices directly on employee performance.

On the basis of the above discussion, this study aims to research and highlight the kinds of human resource practices that are feasible for developing countries such as Pakistan, with special reference to the educational sector in order to make their universities rank amongst the top universities of the world. In consideration of the above issues, this research is meant to explore the relationship between HRM and performance in the context of an Eastern developing country (Pakistan), with particular reference to teachers’ performance in higher educational sector.

1.2 Purpose of the study:

The purpose of this research is to explore relationship between HR practices and organization performance. There are four independent variables in research recruitment and selection, training and development, compensation and benefits and performance appraisal and using one mediator employee performance and one dependent variable organization performance. This research is very helpful for the organizational owners to explore the factors through which they can increase their organization’s performance. In today’s era of dynamic change, expanding needs and competitiveness, it has become increasingly complex for higher educational institutions to achieve high level performance with sustainable competitive advantage. In such a case, those professionals, such as teachers, are needed by HEIs who should not only be able to contribute effectively and efficiently in achieving desired institutional performance but would also capable of coping with changing tendencies and ever growing expectations of educational fraternity. So the implementation of HRM practices is one of the ways through which educational institutions can not only enhance competence of teachers (who are considered as central element of higher educational system holding a range of diverse and substantial academic roles) but can also develop commitment, satisfaction and motivation among them to get higher performance. Therefore, the purpose of this quantitative study is to examine the impact of HRM practices on teachers’ performance integrating resource-based view and social exchange theory. To achieve this purpose a model describing the mediating process through which HR practices affect individual performance, is proposed and tested in the higher educational sector of Pakistan

 

1.3 Significance of the study:

This study has made significant theoretical and practical contributions as a considerable research work has used resource-based-view and social exchange theory as a theoretical framework to explore the relationship between HRM practices and performance. This study is very helpful in the development of conceptual model to measure the effect of HRM practices on individual performance for the educational sector. The present study put in to the literature of HRM and performance by examining the applicability of Western concepts and theories to an Eastern developing country (Pakistan).This study is useful for managers in the education sector to come up with policies that help them to attract and retain their top-level faculty at their respective universities. This research is highly valuable for both academicians and practitioners.

1.4 Objectives of the study:

Main Objective:

To determine the impact of HRM practices on organizational performance in developing countries like Pakistan

Sub Objective:

  1. To determine the relationship between recruitment and selection and employee’s performance.
  2. To determine the relationship between training and development and employee’s performance.
  3. To determine the relationship between performance management system and employee’s performance.
  4. To determine the relationship between compensation and reward and employee’s performance.
  5. To determine the relationship between employee’s performance and organizational performance.

1.5 Research question and Hypothesis:

What is the impact of human resource practices on the organization performance in higher education Sector?  

Following research questions were expected to be answered through this study:

  1. To what extent HR practices affect employee’s performance in an organization?
  2. To what extent employee’s performance lead to organizational performance?
  3. Does employee’s performance of teachers mediate the relationship between HR practices and organizational performance?

1.5.1 Hypothesis:

H1 = There is relationship between recruitment & selection and employee’s performance.

Ho = There is no relationship between recruitment & selection and employee’s performance.

H2 = There is relationship between training & development and employee’s performance.

Ho = There is no relationship between training & development and employee’s performance.

H3 = There is relationship between performance management system and employee’s performance.

Ho = There is no relationship between performance management system and employee’s performance.

H4 = There is relationship between compensation & reward and employee’s performance.

Ho = There is no relationship between compensation & reward and employee’s performance.

H5 = There is relationship between employee’s performance and organizational performance.

Ho = There is no relationship between employee’s performance and organizational performance.

1.6 Research Model

There are four independent variable of my research and four variables are recruitment and selection which is consider very important in analyzing that we put the right person with right skill at right place and a good employee enhance the productivity it is a very important function of human resource management practice.

 

Theoretical Frame work:

impact of human resource practices on organizational performance

Chapter#2:

Literature Review:

A literature review is a clear and logical presentation of the relevant research work done before in the same area of investigation. The human resource management field has changed to the aspect that it contributes to the benefit of the organization (Delery and Doty, 1996). Now organizations started the organizations have accepted that their employees are the major source of competitive advantage (Pfeffe, 1994). According to Pfeffe (1994), HRM practices need to be implemented to influence the employees for creating the competitive advantage. The present study selected the four HR practices that are Compensation, Performance management, recruitment & selection and training & development. According to Muhammad Asif Khan (2010) empirically investigated the effects of HRM practices on organizational performance in oil and gas industry in Pakistan. He observed that recruitment and selection, training and development, performance appraisal, compensation and employee relations, all were associated with organizational performance and they do impact on Organizational performance in oil and gas industry in Pakistan

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5 comments

  1. Please, I need the author’s name and the year of the article for citation and referencing

  2. Can you please provide the source from which questionnare was adopted?