Human Resource Management Practices on Organizational Performance Sample Essay

The survey evaluates the effects of human resource direction patterns on organisational public presentation in Oil and Gas Industry in Pakistan. A sum of 150 directors of 20 indiscriminately selected houses from Oil and Gas Industry responded to self-reported questionnaire that measured five HRM patterns and subjective steps of organisational public presentation. Factor analysis was performed to place human resource direction patterns. Regression analysis indicated a positive and statistically important association of these patterns with organisational public presentation. The survey provides insight to direction to utilize these patterns as strategic tool for superior public presentation. and add to the limited empirical cognition that exists in Pakistani context.

Keywords: Human resource direction. organisational public presentation. Oil and gas industry. Pakistan.
1. Introduction
Changing concern environment in cognition economic system has made acceptance of human resource direction ( HRM ) jussive mood for competitory advantage. The impact of HRM patterns on concern public presentation has been extensively studied in the recent yesteryear. These surveies have found a positive association between HRM patterns and firms’ public presentation ( Becker & A ; Huselid. 1998 ; Chang & A ; Kuo. 2004 ; Jarventaus. 2007 ; Rizov & A ; Croucher. 2008 ; Sang. 2005 ) . Most of these surveies have been undertaken in the United States. and Europe ( Boseli et al. . 2001 ; Hoque. 1999 ) and Asia ( Bjo?rkman. I. and Xiucheng. 2002 ; Kundu & A ; Malhan. 2007 ; Ngo et Al. . 1998 ) . Within Pakistan. limited research has been done to analyze the relationship of HRM patterns and organisational public presentation. The strategic function of HRM has been good established. In Pakistan. there has been huge realisation of the impact of strategic usage of HRM patterns and airy companies are puting the gait to leverage this facet for competitory advantage.

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HRM practicians are endeavoring to run into the emerging challenges of new values of cognition workers who have necessitated a new paradigm of peoples’ direction characterized by heavy investing in human capital and advanced usage of HRM patterns for attractive force and keeping of endowments for organisational sustainability. The Oil and Gas Industry in Pakistan is critical for the economic system and considered as an issue of national ego trust. national security. and a major beginning of government’s grosss. With limited proved modesty of oil and gas in the state. Pakistan meets merely 18 % of the entire domestic demands. The authorities incurs a colossal sum of scare foreign exchange on the import of oil measure.

The 158 European Journal of Economics. Finance and Administrative Sciences – Issue 24 ( 2010 ) economic environment in the state and dependance on imported oil has accentuated the jobs for the authorities. people. and organisations. To run into the challenges of deficit of oil and gas. the authorities of Pakistan announced new Policy in 2009 for this Industry. The policy envisions self sufficiency in oil and gas production and a proactive attack on development of human resource to the international criterions. and making contributing environment for their keeping in the state. Organizations runing in Oil and Gas Industry in Pakistan are alining their scheme to run into the laid down aims. Doek-Seob ( 2001 ) noted that HRM patterns become a strategic instrument during economic downswing.

No empirical research has so far been undertaken to look into the effects of HRM patterns on firms’ public presentation in this industry. Thus a spread exists in the research in this country of strategic importance. The present survey is an effort to turn to this spread. The present survey will offer valuable penetration to the direction of these organisations about the strategic importance of HRM patterns for superior and sustainable organisational public presentation. In add-on. it will add information to the limited empirical cognition about nexus of HRM patterns and concern public presentation in a developing economic system. where the strategic function of HRM is deriving popularity as a critical tool for concern public presentation. The purpose of this survey is to analyze the effects of HRM patterns on organisational public presentation in Oil and Gas Industry in Pakistan.

2. Literature Reappraisal
Recently. human resource direction has emerged as an indispensable factor for sustained competitory advantage. Research highlights that organisations develop sustained competitory advantage through direction of panic and valuable resources ( Barney. 1991 ) . The human resource enables organisations to accomplish optimisation of resource. effectivity. and uninterrupted betterment systematically ( Wernerfelt. 1984 ) . An organisation return clip to raising and develop human capital in the signifier of cognition. accomplishments. abilities. motive. attitude. and interpersonal relationship. and makes it hard for rivals to copy ( Becker & A ; Gerhart. 1996 ) . Pfeffer ( 1994 ) stressed that human resource has been critical for house sustained public presentation. In cognition economic system. the human resource has been recognized as a strategic tool. indispensable to organisational profitableness and sustainability. This realisation has led to the new function of human resource directors as strategic spouses in preparation and implementing organisational scheme ( Myloni et al. . 2004 ) . Organizations are pursing proactively human resource direction ( HRM ) patterns and systems to capitalise on strength of this critical plus for sustained competitory advantage in cognition economic system ( Jackson & A ; Schuler. 2000 ; Mac Duffie. 1995 )

Reappraisal of literature indicated indispensable HRM patterns as work force planning ( Matthis & A ; Jackson. 2004 ) ; occupation analysis ( Cascio. 2006 ; Dessler. 2003 ) ; developing and development ( Kundo. 2003 ) ; enlisting and choice ( Kulik. 2004 ) ; compensation and wages ( Milkovich & A ; Newmen. 1999 ) ; public presentation assessment ( Bernardin & A ; Russel. 1993 ) ; calling direction ( Schein. 1996 ) ; human resource information system ( Wolfe. 1998 ) ; quality of work life. forces diverseness. employees attitude studies ( Armstrong. 2005 ; Bracken. 2000 ; Hayes. 1999 ) . In meta-analysis of 104 articles. Boselie et Al. . ( 2005 ) concluded that the top four HRM patterns are efficient enlisting and choice. preparation and development. eventuality and wages system. and public presentation direction that have been extensively used by different research workers. In recent old ages. the focal point of research on HRM has shifted from survey and relationship of single HRM patterns on concern performanceto full HRM system and its influence on organisational public presentation.

The research workers have different positions about this new paradigm. Some research workers claim that the system position of HRM is appropriate. but others contend “that to randomly unite multiple [ HRM sub- ] dimensions into one step creates unneeded dependability problems’ ( Becker & A ; Huselid. 1988. p. 63 ) . In add-on. comprehensive scrutiny of single HRM patterns highlights the important forecaster of concern public presentation ( Bjo?rkman & A ; Budhwar. 2007 ) . 159 European Journal of Economics. Finance and Administrative Sciences – Issue 24 ( 2010 ) Researchers have used fiscal and non fiscal prosodies to mensurate organisational public presentation. The fiscal steps include net income. gross revenues. and market portion. Non-financial steps include productiveness. quality. efficiency. and the attitudinal and behavioral steps such as committedness. purpose to discontinue. and satisfaction. ( Dyer & A ; Reeves. 1995 ) . Divergent positions exist to mensurate the organisational public presentation based on fiscal every bit good as non-financial steps. Hoskisson et Al. . ( 2000 ) identified the jobs related to measuring of fiscal dimensions in emerging economic systems.

It has been argued that deficiency of market based fiscal coverage. unequal regulative mechanism and enforcement about fiscal coverage. deficiency of transparence in fiscal coverage. and proviso of fabricated fiscal information are of import issues confronting emerging economic systems ( Bae & A ; Lawer. 2000 ; Hoskisson et Al. . 2000 ) . A subjective step facilitates directors to take into history organisational ends when measuring its public presentation. Researchers argue that though perceptual step may present restrictions. the benefits are far greater than the hazards. Several research workers have “raised persuasive uncertainties about the causal distance between an HR input and such end product based on fiscal public presentation. Put merely. so many other variables and events. both internal and external. affect organisations that this direct relationship instead strains credibleness ( cited in Boselie et Al. . 2005. p. 75 ) . ” The research workers argued that more proximal steps over which employees exert influence are theoretically more plausible and methodically easier to associate These include productiveness ( Chang & A ; Chen. 2002 ;

Huselid. 1995 ; Kato & A ; Morishima. 2002 ; quality of merchandise and service ( MacDuffie. 1995 ; Jayaram et Al. . 1999 ) . occupation satisfaction ( Guest. 1999 ; Hoque. 1999 ) . employees turnover purposes ( Batt. 2002 ; Shaw et Al. . 1998 ) . absenteeism ( Lowe et al. . 1997 ) . trust in direction ( Whitener. 2001 ) . and committedness ( Tsui et al. . 1997 ) . Researchers besides examined the negative impact of HRM patterns on house public presentation that include employees’ stress degree ( Ramsay et al. . 2000 ) ; job-home spill over ( White et al. . 2003 ) . In literature. primacy exists with respect to the usage of subjective steps in earlier surveies ( Delaney & A ; Huselid. 1996 ; Youndt et Al. . 1996 ) . Strong grounds exist in anterior surveies that subjective measuring associate good with nonsubjective steps of organization’s public presentation ( Geringer & A ; Hebert. 1991 ; Powell. 1992 ) . Wall et Al. ( 2004 ) found that self-reported informations is related to limited prejudices.

The research workers have investigated through empirical observation the effects of HRM patterns on organisational public presentation ( Becker & A ; Huselid. 1998 ; Boselie. 2002 ; Guest. 1997 ) . Recent surveies reflect an impressive influence of HRM patterns on organisational public presentation. Research workers have divergent positions about impact of HRM patterns and firms’ public presentation. They argue that HRM patterns and public presentation research have common properties every bit good as contradictions ( Boselie et al. . 2005 ; Katou & A ; Budhwar. 2006 ; Wall & A ; Wood. 2005. Wright & A ; Boswell. 2002 ) .

In a survey in Greece. Katou and Bedhwar ( 2006 ) found that HRM patterns of staffing. preparation and publicity. engagement of employees. inducements. and safety and wellness have positive relationship with firms’ public presentation.

In a survey of directors from Taiwan and Cambodia. Sang ( 2005 ) concluded that work force planning ; staffing ; compensation. and inducements ; teamwork ; preparation. and employee security had a positive and important influence on non-financial and fiscal dimensions of organisational public presentation. The survey validated the positive effects on operational dimensions of public presentation. viz. . production flexibleness. merchandise cost. merchandise quality. and merchandise bringing. In a comparative survey of United States and Japan. Ichniowski and Shaw ( 1999 ) found that Nipponese houses were more productive than United States’ houses on history of implementing HRM patterns.

In a survey in Chinese high engineering houses. Chang and Chen ( 2002 ) established that HRM patterns of work force planning. preparation and development. benefits. teamwork. and public presentation assessment significantly affected productiveness. The survey besides found the negative relationship between human resource planning and employees’ turnover.

Ngo et Al. . ( 1998 ) . in a survey in Hong Kong companies. found that HRM patterns of preparation and compensation increased firms’ public presentation. Tessema and Soeters ( 2006 ) investigated influence of 160 European Journal of Economics. Finance and Administrative Sciences – Issue 24 ( 2010 ) HR patterns in Eritrea. The survey found that efficient execution of these patterns enhanced the public presentation at single and organisation degree.

In a survey in India. Paul and Anantharaman ( 2003 ) found indirect effects of HRM related activities on operational and fiscal public presentation of houses. The survey did non happen the causal association of individual HRM pattern with concern public presentation. In another survey Sing ( 2003 ) found that strategic usage of HRM patterns positively affect public presentation of organisations in India. BjorkmanIn and Xiucheng ( 2002 ) investigated the result of HRM patterns on Western firms’ public presentation in China. and found a positive association between HRM patterns and public presentation. Bartel ( 2000 ) evaluated the impact of HRM patterns on public presentation in Canada and found significantly positive relationship between two concepts. In Israel. Harel and Tzafrir ( 1999 ) found that HR patterns had positive relationship with firms’ public presentation in public and private sectors.

In Korea. Bae and Lawler ( 2000 ) concluded that HRM patterns significantly affect organisational public presentation. Lee and Chee ( 1996 ) in their survey did non happen as association between HRM patterns and concern public presentation. Bae et Al. . ( 2003 ) concluded that high-performance work patterns produced first-class consequences in Pacific Rim states. Morishima ( 1998 ) concluded that organisations with incorporate HR patterns performed good in Japan than organisations with ill integrated forces pattern In a survey in New Zeeland. Guthrie ( 2003 ) validated the impact of HRM patterns on employee turnover and profitableness. Lee and Lee ( 2007 ) established that work force planning. teamwork. preparation and development. compensation and inducements. public presentation assessment. and employees’ security are of import HRM dimensions that affect productiveness. merchandise quality. and concern public presentation.

In a survey in Taiwan. Chang and Chen ( 2002 ) determined significantly positive relationship of HRM patterns with organisational public presentation. The survey besides found a negative relationship of work force planning with employees’ turnover. It is argued that HRM patterns enhance employees’ competence and motive that affect organisational public presentation ( Harel & A ; Tzafrir. 1996 ) contended that HRM patterns based on quality hiring. development. and keeping encouragements firms’ capableness. Tsai ( 2006 ) . in a survey in Taiwan. found a positive relationship of employees’ authorization and firms’ public presentation. In a survey of HRM patterns in Chinese little and average endeavors. participatory decision-making. performance-based wage. free market choice and public presentation assessment. employees’ commitment emerged as the most indispensable result for bettering public presentation ( Zheng et al. . 2006 ) .

Rizov and Croucher ( 2008 ) through empirical observation examined the relationship of HRM patterns and organisational public presentation in European houses. They found that collaborative signifier of HRM patterns ( characterized by valuing employees as assets and nucleus spouses. making and pass oning a civilization of partnership between employer and employees every bit good as among employees. pass oning organization’s mission. values. ends and scheme statement through expressed unfastened communicating policy and strong support for employees advisory organic structures like brotherhoods and commissions ) reflected positive and statistically important association with firms’ public presentation. Ahmed and Schroeder ( 2003 ) investigated effects of selective hiring. employment security. decentalisation and usage of squads. inducement and compensation. extended preparation. position differences. and information sharing on organisational public presentation ( quality. cost. flexibleness. bringing and committedness ) . The survey confirmed the positive and important relationship of HRM patterns with firms’ operational public presentation

Researchers ( Chiu et al. . 2002 ; Tepstra & A ; Rozell. 1993 ) have established that HRM patterns of extended enlisting and choice. preparation and development. and compensation systems have positive association with firms’ public presentation.

Lam and White ( 1998 ) established that effectual enlisting. competitory compensation. and efficient preparation and development have relationship with fiscal dimensions of public presentation ( growing in gross revenues. return on assets. and growing in stock values. Green et Al. . ( 2006 ) concluded that incorporate 161 European Journal of Economics. Finance and Administrative Sciences – Issue 24 ( 2010 ) attack to HR patterns exhibited satisfied and committed employees who demonstrated singular person and squad public presentation.

Harel and Tzafrir ( 1996 ) argued that HRM patterns improve employees knowledge. accomplishments and abilities ( choice and preparation ) . through enhanced motive ( compensation and wages ) . Surveies established that HRM patterns aimed at acquisition and development of employees is an indispensable investing that develop valuable and rare human assets ( Becker & A ; Huselid. 1998 ) Huselid ( 1995 ) established that high engagement HRM patterns have positive relationship with corporate public presentation. productiveness. work fond regard. and fiscal public presentation. Delaney and Huselid ( 1996 ) confirmed that selective staffing ; compensation and inducement. and preparation had positive influence on public presentation of organisation.

A important figure of empirical surveies have explored the relationship between HRM patterns and firms’ public presentation in American organisations ( Arthur. 1994 ; Huselid et Al. . 1997 ; Youndt et Al. . 1996 ) . Wright et Al. ( 2005 ) explored the consequence of HRM patterns on firms’ public presentation in 45 concern units in America and Canada and established a causal association between HRM patterns and concern public presentation. In Western states. several surveies have examined this relationship. In a survey of 428 houses in Finland. HRM patterns had positive influence on firms’ public presentation Lahteenmaki et Al. ( 1998 ) . Guthrie ( 2001 ) studied 128 companies in New Zeeland and found positive relationship between high-involvement work patterns and firms’ public presentation. In Taiwan. Chang and Chen ( 2002 ) studied 62 houses to find the effects of HRM patterns on concern public presentation and found a positive association. Stavrou and Brewster ( 2005 ) . in a survey of 3702 houses from European Members states discovered a positive association between strategic HRM patterns and concern public presentation.

The initial surveies focused on set uping a nexus of individual HRM patterns to firm’s public presentation ( Cutcher-Gershenfeld. 1991 ) . Subsequently group of HRM patterns were identified as High Performance Work Systems ( HPWS ) . and research workers established nexus of HPWP with first-class public presentation of organisations ( Appelbaum. 2000 ; Huselid. 1995 ) . Cappelli and Neumark ( 2001 ) found negative result of these patterns with respect to firm’s public presentation. Godard ( 2004 ) argued that hapless employee relationship limits the effectivity of these HPWP. Strong grounds exists in literature about different HRM patterns and their effects on superior firms’ public presentation. Researchers found a positive relationship between effectual enlisting and choice patterns and top-class public presentation ( Harel & A ; Tzafrir. 1996 ; Delany & A ; Huselid. 1996 ) ; developing and development ( Bartel. 1994 ; Fey et Al. . 2000 ) ; compensation and wages ( Chie et al. . 2002 ; Batt. 2002 ) ; public presentation assessment ( Boselie et al. . 2001. Bjorkmand & A ; Xiucheng. 2002 ) ; employee dealingss ( Kuo. 2004 ) .

Prior surveies have validated the nexus between HRM patterns and superior concern public presentation in United States and Europe ( Boselie et al. . 2001 ; Hoque. 1999 ) ; Asia ( Bjorkmand & A ; Xiucheng. 2002 ; Ngo et Al. . 1998 ) and Africa ( Chebregiorgis & A ; Karsten. 2007 ) . Empirical surveies indicate a strong and positive association between HRM patterns and public presentation of organisations. ( Cappeli. 1998 ; Katou & A ; Budhwar. 2007 ; Kuo. 2004 ; Huselid et Al. . 1997 ; Youndt et Al. . 1996 ) . The present survey investigated five HRM patterns viz. ; developing and development. enlisting and choice. compensation and wages. public presentation assessment. and employee relation and examined the effects of these patterns on subjective steps of public presentation ( merchandise quality. productiveness efficiency and overall perceived public presentation compared to industry norm ) . 3. Research Hypotheses and Theoretical Framework

Based on the comprehensive survey of literature. following hypotheses emerge: H 1: Recruitment and choice has important relationship with organisational public presentation. H 2: Training and development has important relationship with organisational public presentation. H 3: Performance assessment has important relationship with organisational public presentation 162 European Journal of Economics. Finance and Administrative Sciences – Issue 24 ( 2010 ) H 4: Compensation and wagess has important relationship with organisational public presentation. H 5: Employee dealingss has important relationship with organisational public presentation. 4. Research Method

4. 1. Sample and Data Collection
Questionnaire study was carried out between June-December 2009. Soon 20 eight companies ( Public and Private Sectors ) are runing in Pakistan. Primary information was collected from a sample of 20 indiscriminately selected companies runing in public and private sectors in Oil and Gas Industry in Pakistan. The companies were chosen from the directory of Ministry of Petroleum and Natural Resource. Government of Pakistan. Two 100 questionnaires were despatched to these companies. A sum of 150 filled questionnaires were received with a response rate of 75 % . The respondents were directors in these companies at assorted grades of direction.

4. 2. Measurement Development
Most of the statements used in the study were drawn from an in-depth survey of literature on HRM patterns and its impact on organisational public presentation. The points used in the survey were adapted from different surveies ( Ghebregiorgis & A ; Karsten. 2007 ; Kundu & A ; Malhan. 2007 ; Lee & A ; Lee. 2007 ; Tzafir. 2005 ) .

The instrument measured five HRM patterns and its consequence on organisational public presentation. The enlisting and choice patterns contained ( 5 points ) ; developing and development ( 8 points ) ; public presentation assessment ( 6 points ) ; compensation and wagess ( 6 points ) ; employee engagement ( 4 points ) ; and organisational public presentation ( 5 points ) severally. The organisational public presentation step included ( 5 points ) related to perceived quality of merchandises and services. production cost. market portion. public presentation comparative to rivals. and organization’s public presentation relation to industry norm. Five points evaluation graduated table was used to mensurate the response. The graduated table ranged from five ( strongly agree ) to one ( strongly disagree ) .

4. 3. Pilot Testing of Instrument
The instrument was pilot tested utilizing a sample of 40 directors from the population. The consequences of pilot survey reflected appropriate adequateness ( Nunnally. 1978 ) . The Cronbach’s alpha of variables ranged from 0. 782 to 0. 856 severally.

4. 4. Consequences and Analysis
4. 4. 1. Descriptive Statisticss
The consequences of descriptive statistics indicated general understanding of the respondents to the different HRM patterns. The average values ranged from highest 4. 876 to lowest 4. 123 ) . The consequences for preparation and development indicated highest concurrency ( Mean = 4. 876. Standard Deviation = 0. 715 ) ; enlisting and choice ( Mean = 4. 431. Standard Deviation = 0. 829 ) ; public presentation assessment ( Mean = 4. 217. Standard Deviation = 0. 737 ) ; compensation and wages ( Mean = 4. 129. Standard Deviation = 0. 924 ) ; employee engagement ( Mean = 4. 123. Standard Deviation = 0. 847 ) ; and organisational public presentation ( Mean = 4. 738. Standard Deviation = 0. 571 ) severally. The average mark and standard divergence reflected conformance of respondents’ perceptual experience about these HRM patterns and the understanding to the theoretical account.

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