The impact of human resource management on organizational performance
Of accounting & the best use of scientific research and information from our 700+ peer reviewed, open access journals that operates with the help of 50,000+ editorial board members and esteemed reviewers and 1000+ scientific associations in medical, clinical, pharmaceutical, engineering, technology and management inspiring speakers and experts at our 3000+ global conferenceseries events with over 600+ conferences, 1200+ symposiums and 1200+ workshops l, pharma, engineering, science, technology and ch article open of human resource management on organizational ad hamid*, sumra maheen, ayesha cheem and rizwana ment of business administration, university of sargodha, pakistan. Date: december 26, 2016; accepted date: january 02, 2017; published date: on: hamid m, maheen s, cheem a, yaseen r (2017) impact of ce management on organizational performance. Visit for more related articles at journal of accounting & objective of all organizations is to improve their performance so the aim of this study is to investigate the organizational performance of 200 employees of ufone and mobilink franchises in sargodha city. The results shows that the higher level of compensation management, organizational citizenship behavior and employee development practices that will lead to a higher level of organizational performance, also indicate that compensation management, organizational citizenship behavior and employee development is positively associated with organizational performance. There are some areas that need more development in future including the topics that relate to the study that can be conducted on manufacturing firms with more zational performance; organizational citizenship behavior; compensation management; employee development; telecommunication business of the telecom sector is not only capital intensive, where the important component of capital is to assess to ensure the growth of the strong network but also the core competencies, skills of management, qualification and abilities of management are the dense drivers to increase the achievement of organization profits and the sustainability of doubt that organization internationally isdetermined for achievement and high profit those in the same industry. For the purpose of this, organizations have to get and apply their human resource effectively and efficiently. Organizations have to be aware of human resource need to know about hrm more realistically and organizations have to keep their human resource up-to-date. Consequently, manager play significant role for the purpose of achieving company’s goal and meet profits, basically the core functions of managers have to manage the human resource in a way that right number in right way. This paper therefore, examines the influence of human resource management that is compensation, employee’s development and organizational citizenship behavior on the performance of the any organization performance of organization is very important. There may be three areas that create or to enhance the organizational performance: employee development of organization (edo), compensation management of organization (cmo) and organizational citizenship behavior (ocb). Main objective of this study is to measure the effect of compensation on organizational performance. As the employee compensation, training and rewards have risen the performance of human resource managementresultsgenerallyraisesthe satisfactionand performance. There are three independent variables citizenship behavior, employee’s development, and compensation management and their combine effect on organizational ing to turnipseed and russuli explained that when organization criticized in investment, which means organizational citizenship behavior is “going beyond the call of duty” [1].
5key components of the strategic human resources management
Ocb not relevant to individual duties, it is related to the organization’s functions and duties which is significant to improve the organizational effectiveness or performance applebaumet et al. Morhd/griffin explained that organizational citizenship behavior creativity and adaptation leads to the organizational effectiveness and work related management in hrm (1375, 132). Organizational performance can be achieved through the learning opportunities, through better employee performance on their jobs. The unit of analysis in the research is employee development which has an impact on performance but the less information is available. Learning opportunities are the part of employee development ch has established the significant impact on organizational performance. There is connection between hrm and organizational performance is considered a “black box” that is absence of clarity as to, what leads to what. Therefore this study shows the significant positive relationship between independent variables and organizational performance either financial or this study we fill the gap of previous studies and more observe the procedure through which hrm policies, procedures techniques and effect of organizational performance, it is important to conduct analysis in pakistan context on the telecom sector. The main objective of this research is to examine how the hrm practices influence the performance of organization , to enhance the relationship instead of two variables we take three variables that are employee development, compensation management and organizational citizenship. Lastly sum up the key of the research and focus the key purpose direction for additional study, contributions, limitations of the analysis and l purpose of the the light of above outline, the goal of this study is to test the effects of human resource management on performance of organizational within the telecom sector in sargodha sub goals included are as follow:A) to examine the influence of compensation management on organizational performance. Variable as organizational ee development and organizational and kulvisaechana [6] observed the positive relationship between the human resource development and organizational performance according to the large and expand body of literature. Shih, chiang, and hsu [7] observed that the part of framework of human resource development is retaining and recruiting theperfect employees. Hardre [8] study the impact of resourcing and growth on the employee’s attitude which include motivation, satisfaction and commitment. Personnel training and development and organizational development contribute to unleashing human expertise and to enhance performance [9].
The organizational performance depends on the training and development of human resource and the organization spends millions of money for this purpose. Organizational performance depends on the employee development because employee development enhances knowledge base of the organization [12]. This study suggests that low level of performance management programs and low employee development decrease the industrial performance [13]. The factors effecting the employee development include the selection strategies, recruitment, evaluation of performance and planning procedure. There is an indirect relationship between employee development and organizational performance, relationship include the human resource practices [14]. Tuition assistance programs are a method that the organizations used to invest their resources in the human resource with the aim to develop more knowledgeable and educated workforce. Organizational performance positively affected by employee development because of effective use of employee empowerment sation management and organizational [17] employee receive compensation in the form of rewards, pay, benefit it is basically the output that management uses to increase the performance of of the cash flow is equal to the compensation of the organizationbut more than half in the service sector. For the purpose to increase performance of organization the key factor is tomotivate employees and attract the sation can be in the form of multiple pay plans and can be in the form of individually, merit pay to performance long incentives, bonus, and merit pay in the form of rewards. These are the different qualities and components of compensation that are in the form of individual performance and multiple pay plan performance, this research was conducted by millvier and newman. Pay have direct impact on the performance of employees the compensation and the pay structure directly impact the performance of the employees and the they provide the output according to the pay plan and pay structure according to the performance of employees. In 1999 the employees have fixed pay and the organization give rewards for their better performance that willgive the power job shorter orientedso there is relationship between compensation like pay and , more and hunt, jahangar suggested that rewards of managers supervisors significant positive relationship with performance of organization that is performance of employees, enhance productivity, satisfaction of employees organizational citizenship behavior and turnover. For the purpose of achievement of organizational performance either it is financial or non-financial compensation in the form of rewards or incentives are most important component to eradicate employees paying their energy to produce innovation in cress the performance of organization. The researches by employees’ productivity can be increase by motivation which provide effective recognition as a result improve organizational research on relationship between organizational performance and compensation in the form of pay suggested that pay is not directly related to the performance of organization but in many statements or claims merit increases the salary and hence increase the research concluded that significant positive relationship between hrm practices and organizational performance [20], hrm practices like selective hiring, compensation management, training and development, status differences,decentralization,information sharing, employment security, and use of groups on performance of organization as operational performance likeflexibility,cost reduction, quality, and commitment.
Hr administration structures in us study investigates that organizational performance has significant positive relationship to various hr practices compensation and benefits. Gerhart and trevor [21], kochy mcgrath [14], recruitment and practices like compensation and rewards, training and development, recruitment and selection and performance management have positive effect on organization performance observed in 104 articles documented in 18 that four most important [22]. Measure the impact of hrm practices like training and development, compensation and rewards,performance appraisal, and employeesrecruitmentand selectiontheir relations on performance of organization that are (product quality, product cost,, performance, market share compared with competitors and 19 organization performance relative to industry average) and in 20 companies of oil and gas establish significant positive relationship with hrm practices like compensation, training and development, employees development and performance of the investigates motivational factor for the employees are the compensation so proposes structure of compensation in which employees who perform better are paid more than average performing employees is important to increase the performance of organization hewitt [23]. Expressed that better standing of employees with organization that ultimately affect the organizational citizenship behavior [24]. 25]indicates that the organizational citizenship performance speculate the overall performance and across all task performance levels. Todd described that if we add the social work environment the overall performance of organization increases substantially [24]. According to niehoff and yen that the organization becomes more effective if there are more employees in organizational citizenship behavior. As a result we anticipated ocb to make the correlation between organizational performance and hr practices. There is positive relationship between organizational citizenship behavior and organizational research consist of total four variables and three are independent such as employee development, compensation, and organizational citizenship behavior they have influence or effect on dependent variable organizational performance. 29-35] the impact of human resource management practices on the performance of organization have some backing for positive relationship between human resource management like compensation, employee development and citizenship behavior and performance particularly profitability (figure 1). 1: conceptual purpose of our research is to analysis the impact of human resource on organizational performance. The questions asked in this section include those that measured the employee development, compensation management, organizational performance, and organizational analyses were run to determine the response of responded about ufone and mobilink company. The mean value represent that the respondent’s satisfaction regarding the human resource management practices in franchises (table 2).
We get the results of inter item consistency and reliability coefficients of all independent variables (organizational citizenship behavior , compensation management, employee development) and dependent variable (organizational performance). We measured the organizational performance (telecommunication pakistan) through 4 items and the value of cronbach’s alpha is α=0. 4: also measured the organizational citizenship behaviors with 4 items and value of cronbach’s alpha is α=0. So it rejects the null hypothesis that is there is no relationship between organization citizenship and performance of null hypothesis of employee development has no relation with organizational performance is also rejected because it also correlated with performance of organization with value of 350. There is medium correlation, not highly correlated but there is sation management is also highly correlated with organizational performance with the value of 0. And it will reject the null hypothesis that it has no relationship with performance of organization. This means that it can be interpreted that there is positive relationship between compensation and performance of is concluded that there is large pearson correlation or relationship with these above mentioned items with performance of organization with pearson correlation of above 0. According to table 6, 37% variation in organizational performance id due to the predictors (compensation management, organizational citizenship behavior and employee development). Variation in organizational performance is explained by other factors that are not the part of our study (table 5). Predictors: (constant), compmanage, empdevelop, results of anova test reveal that the model is statistically significant that analyzed the factors affectingthe organizational performance. That is a sign of approval that there exists a relationship between organizational performance and independent variables of the cients (table 7). Beta value is value of y it means value of dependent variable that is organizational performance when there is one unit change in independent variables (compensation, employee development, and organizational citizenship behavior) it would change in dependent variable. T value is significant at 95 % confidence level that we are confident organizational performance is affected by these independent variables.
Due to time shortage there are few variables next research can be on human resource management and its impact on change management, financial performance of purpose of the present study is to empirically examine the impact of compensation management, employee development and organizational citizenship behavior on organizational performance of ufone company and mobil inkcompany (telecommunication pakistan). Its intention was to measure the impact of organizational citizenship behaviors, employee development and compensation with the perspective of employees on the performance of organization. The study’s findings indicate that the establishment of higher levels of compensation management practices, employees development and organizational citizenship behavior that will lead to a higher level oforganizational performance. As a result, they indicate that compensation management is positively associated with organizational performance (ufone and mobilink company). Furthermore, the results also show that the effect of employees development and organizational citizenship behavior are also measures the organizational performance. Human resource management and its impact on change management, financial performance of company in other cities of seed dl, rassuli a (2005) performance perceptions of organizational citizenship behaviours at work: a bi? Study among managers and h journal of management16: ri rm (2006) theimpact of work context on the prediction of job aum s, bartolomucci n, beaumier e, boulanger j, corrigan r, et al. 2004) organizational citizenship behavior: a case study of culture, leadership and ment decision 42:o rj, swanson ra (1995) thestrategic roles of human resource development. People and strategy18: t b (2007) horizontal and vertical fit in human resource ctives on organizational p, kulvisaechana s (2003)human capital and performance: a literature ha, chiang yh, hsu cc (2006) can high performance work systems really lead to better performance? International journal of manpower 27: é pl (2003) beyond two decades of motivation: a review of the research and practice in instructional design and human performance resource development review2: n ra (1995) human resource development: performance is the key. Human resource development quarterly6: ch, bruvold nt (2003) creating value for employees: investment in employee development. The international journal of human resource management14: a, chaudhary n (2011) hrd climate and job satisfaction: an empirical ational journal of computing and business research2: ca, awa ho (2011) career planning and development: the realities in nigerian organizations. International business and management2: ld d, smith a (1995) a proven connection performance management and business results.
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