Impact of HRM Practices on Employees Performance: Evidence from Educational Sector of Pakistan

Sana Naqi (4426) Business graduate: Iqra University Karachi, Pakistan Email: sana_naqi@hotmail.com ARM Friday 3:00 PM TO 6:00 PM

Abstract
This study empirically evaluated three Human Resource practices (autonomy, training and development and benefits) are likely impact on the performance of the employees in educational sector of Pakistan. The sample consisted of two hundred educationist professionals in Pakistan, in which 20 educational institutes were selected and 10 questionnaires were given to each institute. Data were gathered by primary research in which questionnaire consisted of 15 questions. Questions are designed in a five point likert scale to measure the impact of HRM practices on the performance of the employees. Statistical technique of multiple regression have been used and correlation to identify the relation among independent variables. Keywords: HRM Practices, Employees Performance, Educational Sector

1. Introduction
As the title of the topic is itself explanatory that how autonomy, training and development and benefits impact on the performance of the employees in educational sector of Pakistan. Basically in the organization there are many other factors that impact on employees performance but here three main factor will be discussed and sample would be collect to determine either these facts really help in improving employees performance or not. Autonomy is something that provides employees a degree of freedom and independence that make them feel satisfied, motivated towards their job. Training and development gives the opportunity to employees to shape their lacking and problems which they are facing due to the rapid changing in technology, environment, and diversity etc. Benefits are also a main factor in improving the employees performance. According to Hertzberg it would call as a hygiene factor. The concept that employees would be given enough hygiene so that they can be motivated but its not necessary to get motivated. A substantial body of research has been done on HRM practices to evaluate the efficiency of human resource management where cost factors are concerned. lvaro et al. (2011) analyzed in Spanish industry whether organizational learning capability (OLC) is related to human resource management (HRM). Katou et al. (2010) investigate the association between ethical beliefs, aspects of national culture and national institutions, and preferences for specific human resource management practices. Other studies focused about the gap between HRM practices and policies and how knowledge sharing impact on HRM practices. Gammelgaard et al. (2011) examine the relationship between effective autonomy and organizational relationships with subsidiary employment. The major factors of HRM practices in Pakistan have largely been ignored. No previous studies have considered the possibility of developing a composite measure of HRM practices in Pakistan in the educational sector where the factors of HRM practices like autonomy, training and development and benefits are not largely been discussed. This paper is therefore a modest attempt to rectify that gap in education sector literature. The objective of the study is determined in educational sector of Pakistan that how all these factor contribute in improving the performance of the employees. By considering the facts we

will discuss what steps and motives should organization take to retain their employees and motivate them to have the best from them in educational sector. Additionally explore the significance of autonomy, training and development, benefits in Pakistan as well as to explore why these factors are important in improving the performance of the employees.

2. Literature review:
lvaro et al. (2011) analyzed the paper which has three purposes. The first purpose is to identify that whether organizational learning capability (OLC) is related to HRM practices, the practices which involve development, selection, rewards and appraisals. The other purpose to review to the distinctiveness of human capital is connected with OLC. Lastly he wanted to identify and consider the relationships between HRM practices and organization learning capability associated with the role of human capital. The research was conducted in Spanish industry with the sample of companies and partial least square technique was adopted. According to the result it has been found that there is a direct relation of HRM practices (selection and appraisal) with the learning of Human Capital. The limitation of the study suggested that the study has crosssectional nature of research which requires the design of longitudinal study particularly for OLC in the absence of causality test. Briasnav (2011) analyzed human capital need to focus on knowledge management development so that they can have a competitive advantage by developing HRM practices and organization. They identify the relationship interlinked with leadership and knowledge management with the human capital benefits. The observations of employees related to human capital benefits are affected by Transformational leaders which have a potential to involve them in knowledge management process and motivate communication in between employees. For this they need to focus on training of employees and managers through transformational leadership behavior. Farndale et al. (2011) reported the perception of employees in relation of the particular system of HRM practices which is performance management and how much they are committed toward their organization. Further this study also explored the mechanisms through which the perception of employees translates into the behaviors and attitude of employees. 254 Questionnaire were designed and responses were gathered from four organizations in UK. According to the findings it has been found that there is a link in between the level of commitment and employee

experiences of high commitment performance management (HCPM) practices which is strongly related to organization justice perception. It was a cross-sectional study which consists of self reported data that limits the reliability of findings. Fong et al. (2011) examined the relation between knowledge sharing from the employees of Malaysian industry and (HRM) practices. For conducting the study exploratory factor analysis and confirmatory factor analysis was used which evaluated the validity and reliability of the dimension of the model. To examine the hypothetical framework structural equation modeling (SEM) method was used. According to the results HRM practices such as training and development, recruitment and selection, teamwork, and performance appraisal were positively related to knowledge sharing that perceived by the managers in the service organization and Malawian manufacturing. The design of research was cross-sectional rather than longitudinal. Gammelgaard et al. (2011) analyzed that how much amount is influenced by resource gaps shaped by subsidiary development in skilled job. It identifies a variety of proposals that connect the constructs of organizational relationships and effective autonomy with subsidiary employment. The Propositions were build on a literature review consisted on such approaches as network approach, resource-based view, institutional theory and transaction cost economics. The structure urbanized in the paper suggests that a higher amount of employment in accomplished jobs in subsidiaries is most likely in cases where role specialization, subsidiary entrepreneurship, and absorptive capacity are higher. This paper was the first to describe subsidiary development from a perspective of skilled job. It further indentifies the concept of autonomy. Gill and Meyer (2011) examine the role and impact of human resource management (HRM) policy through empirical research on identity theory, and identify the gap between the policy and practice of HRM, on organizations and their employees. Survey data was conducted from senior executives members of the HRM function in 189 large Australian organizations. According to the research it has been found that there is a gap between policy and practice and soft practice is not being used more often than soft policy. The survey data was used from the managers of HRM who were the best source of information, may have distorted their responses. Katou et al. (2010) investigated the relationship between aspects of national culture ethical beliefs, and national institutions, and likings for specific HRM practices in the Sultanate of

Oman. In six organizations (both private and public sectors), a total of 712 individuals working responded to a self-administered questionnaire in the Sultanate of Oman. The test which was used to analyze the research questions of the projected framework, the method of structural equation models was used. According to the findings it also showed that there is a impact of ethical beliefs, and national institutions and aspects of national culture on preferences for human resource management (HRM) practices. Lertxundi (2008) reported the significance of assessing the efficiency of the human resource management system in the investigation of transfer/adaptation costs of human resources practices in multinational enterprises. Further, in addition to the cost factors that have conventionally been judged, opportunity cost and system cost were examined. Concretely, he suggested approximating the concluding in accordance with the quality of the human resources function and finishing that the most favorable strategic option would rely on the effectiveness of the system as a source of competitive advantage. Moideenkutty et al. (2011) examined the relationship between organizational performance and high-involvement human resource management practices and in the Sultanate of Oman, an Arabian Gulf country. The companies of Muscat Securities Market in the Sultanate of Oman were surveyed. 87 companies were included in the survey responses. The results of the statistical analysis showed that, after scheming for size, type of firm (publicly traded or closely held), and high involvement human resource management practices and average industry price-earnings ratio were positively related to organizational performance. The study explains an award-winning training program that played and important role and has helped to reduce the turnover of staff, improve customer and employee satisfaction and increase engagement with the brand at a luxury-hotel group. This study look at the reason and purpose of training at hand picked hotel. It give details of five learning modules which include role plays and games, conversations to gauge the desired impact and behavior for the improvement of relationship and service and a development plan that focus on behavioral aspect. According to the exposure of the paper that complaints fall by 40% at a saving of 53,000 pounds that has added loyalty-club membership and overall employee retention up from 47% to 61% a year. This give detail of implementing a program in a hard economic period is significant and was not simple to implement to recuperate the culture.

3. Methodology:
The sample for this study is 200 educational professionals from different educational institutes of Karachi, Pakistan. 20 educational institutes are selected and 10 questionnaire given to each institute. Primary research is being done with the help of structured questionnaire which consist of 15 questions that are designed in a five point likert scale questionnaire to measure the impact of HRM practices on the performance of employees. Correlation of the measures is collected. The impact of HRM practices on employees performance is tested using multiple regression analysis. Hypothesis: Ho: HRM practices do not significantly impact on the performance of the employees. H1: HRM practices significantly impact on the performance of the employees.

4. Bibliography:
lvaro, L-C; Real, J. C and Valle, R. (2011) "Relationships between human resource management practices and organizational learning capability: The mediating role of human capital", Personnel Review, Vol. 40, pp.344 363 Birasnav, M; Rangnekar, S; Dalpati, A. (2011) "Transformational leadership and human capital benefits: the role of knowledge management", Leadership & Organization Development Journal, Vol. 32, pp.106 126 Farndale, E; Veronica, H-H. And Kelliher,C. (2011) "High commitment performance management: the roles of justice and trust", Personnel Review, Vol. 40, pp.5 23. Fong, C-Y; Ooi, K-B; Tan, B-I; Lee, V-H And Chong Y-L. A, (2011) "HRM practices and knowledge sharing: an empirical study", International Journal of Manpower, Vol. 32, pp.704 723 Gammelgaard, J; McDonald, F; Tselmann, H; Drrenbcher, C. and Stephan, A. (2011) "Effective autonomy, organisational relationships and skilled jobs in subsidiaries", Management Research Review, Vol. 34, pp.366 385 Gill, C and Meyer, D. (2011) "The role and impact of HRM policy", International Journal of Organizational Analysis, Vol. 19, pp.5 28 Katou A. A; Budhwar P. S; Woldu, H and Al-Hamadi A.B. (2010) "Influence of ethical beliefs, national culture and institutions on preferences for HRM in Oman", Personnel Review, Vol. 39, pp.728 745 Lertxundi,A. (2008) "Transfer of HRM Practices to Subsidiaries: Importance of the Efficiency of the HRM System", Management Research: The Journal of the Iberoamerican Academy of Management, Vol. 6, pp.63 73 Moideenkutty, U; Asya Al-Lamki; Murthy Y. S. Rama. (2011) "HRM practices and organizational performance in Oman", Personnel Review, Vol. 40, pp.239 251

Training program engages employees at Hand Picked Hotels: Staff turnover falls and satisfaction increases, Human Resource Management International Digest, Vol. 19, pp 7-10

Appendix: Educational sector, employees performance survey A likert scale questionnaire

As a part of my MBA research thesis at Iqra University Gulshan Campus Karachi. I m conducting a survey in educational institute of Karachi, Pakistan to measure the impact of HRM practices (autonomy, training and development and benefits) on the employees performance. Please take a few minutes to complete this survey. Your specific answer will be completely confidential.

1. Strongly agree

2. agree

3. neutral

4. disagree

5. strongly disagree

Sr # 1.

Questions I agree autonomy should be given to every individual so we can focus more to increase our performance.

2.

I agree autonomy should be given to every individual so you can focus more to increase your performance

3.

Team autonomy would be more progressive in which you have combinations of ideas that can be implemented. I agree that I need to learn more skills to perform my current job very well. I get the training I need to do my job well.

4.

5.

6. 7. 8.

I get the training from my institute for my next promotion I have opportunities to learn and grow. My Organization/Institute pursues training/education to increase my expertise or skills? My Organization/Institute provides opportunities for receiving training to improve my professional skills

9.

10. I am satisfied with the value of increment in pay 11. Benefits available are appropriate for my needs and those of my family. 12. I am happy with assistance given by the institute in terms of money, sick leave, subscriptions 13. My salary is fair for my responsibilities. 14. I feel like staying with this institute 15. I am searching for a better job in a better organization at the moment

16. What is your designation? a) b) c) d) Lecturer Assistant Professor Associate Professor Professor

17. What is your highest qualification? a) b) c) d) Bachelors Masters M.Phil/MS Doctoral

18. How long you have been employed in this university (Years)? a) b) c) d) 0-2 2-4 4-6 Other ( please specify) ____________

19. What is your Gender? a) Male b) Female 20. What is your age? a) 20-30 b) 30-40 c) 40-50 d) Above 50 Thank you very much for your Co operation!! Sana Naqi