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Rezwan

This document discusses the impacts of human resource management (HRM) in organizations. It begins with an introduction to HRM, noting that it aims to effectively manage people to help a business gain a competitive advantage. The document then discusses several studies that have shown HRM practices have a significant impact on organizational performance. The objective of this particular study is to investigate the organizational performance of employees at two telecommunications companies in Pakistan. It uses surveys and statistical analysis to examine the relationship between compensation management, organizational citizenship behavior, employee development, and organizational performance. The results indicate these HRM practices are positively associated with performance. In the literature review, the document discusses debates around how certain HRM practices influence employee and organizational performance.

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Nashir Uddin
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125 views4 pages

Rezwan

This document discusses the impacts of human resource management (HRM) in organizations. It begins with an introduction to HRM, noting that it aims to effectively manage people to help a business gain a competitive advantage. The document then discusses several studies that have shown HRM practices have a significant impact on organizational performance. The objective of this particular study is to investigate the organizational performance of employees at two telecommunications companies in Pakistan. It uses surveys and statistical analysis to examine the relationship between compensation management, organizational citizenship behavior, employee development, and organizational performance. The results indicate these HRM practices are positively associated with performance. In the literature review, the document discusses debates around how certain HRM practices influence employee and organizational performance.

Uploaded by

Nashir Uddin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The Impacts Of Human Resource Management In

Organization

Introduction
Human resource management (HRM or HR) is the strategic approach to the
effective management of people in a company or organization such that they help
their business gain a competitive advantages. It is designed to maximize employee
performance in service of an employer's strategic objectives. Human resource
management is primarily concerned with the management of people within
organizations, focusing on policies and systems.Human Resourse departments are
responsible for overseeing employee benefit design, employee recruitment, training
and development, perfomance appraisal, and reward management, such as
managing pay and benefit systems HR also concerns itself with organisational
change and industrial relations, or the balancing of organizational practices with
requirements arising from collective bargaining and governmental laws.
Impact of human resource management practices on organizational performance has
been a widely researched area for years. Results of studies, from developed countries
to developing countries, have been time and again showing that HR practices have
significant impact on organizational performance (Delaney & Huselid, 1996; Katou
& Budhwar, 2007; Sing, 2004; Tzafrir, 2006). But unfortunately, very insufficient
numbers of studies have been conducted in this area among the developing countries.
To augment the contemporary knowledge base of human resource practices of
developing countries, this study has been undertaken in a Telecom Malaysia.
Telecommunication industry has seen massive structural transformation in terms of
technological development which has made the industry to be highly competitive.
The industry is the fifth largest and fastest growing industry worldwide (Hawken,
Lovins, & Lovins, 2010). The industry takes a significant role in the world economy
(Porter, 2000). The industry estimated revenue in 2008 was $3.85 trillion and the
service revenue of the global telecommunications industry was estimated to be $1.7
trillion in 2008 and this is expected to reach $2.7 trillion by 2013 (Tedjokusumo &
Setyorini, 2011). The telecommunications industry can be categorized into two
sectors, service and manufacturing sector (Tan, 2002). The industry also faces a lot
of challenges as a result of technological change and customer demands.

Objectives of the study


The 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 population in this study has included
all companies in telecommunication in Pakistan. We are conducting the exploratory
factor analysis. In analyzing the data the descriptive statistics was used. Software
used for data analysis was SPSS version 20. 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. Our result shows that there is positive or significant relationship
between independent and dependent variables, so we reject the null hypothesis.
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 variables
Literature Review
The impact of human resource management on the performance of a company has
come into limelight and as such it has become an area that requires paying more
attention to in the field of (HRM). According to few studies, some human resource
practices will have a positive impact on a company’s performance while numerous
researchers suggest that more conceptual and practical approach is important on
these works (Delery & Shaw, 2001; Von Krogh, Ichijo, & Nonaka, 2000; Wright &
Boswell, 2002). Although, recently employees in an organization are seen as the
most important asset possessed by an organization however, their impact are felt by
only a few organizations (Davenport & Pruzak, 2000; Schein, 2006; Syed-Ikhsan &
Rowland, 2004).
There has been an increase in the experimental studies that examines the influence
of some practices of )HRM( on performance of employees )Becker & Huselid, 2006;
Bowen & Ostroff, 2004(. One can come across various HR practices that can
influence the performance of an organization on their own or when merged with
others. However, the result cannot be easily interpreted )Ahmad & Schroeder, 2003(.
In order to examine the influence of HR practices on performance of employees,
which is also related to organizational growth, it may be necessary to recognize the
HR practices that are recommended by Pfeffer )1998( in which the literature explains
that one can expect its influence on employee performance.
Research Methods
The data is collected through survey questionnaire. As this study is about
the HRM and performance to understand the impact Quantitative approach
was adopted.
The data used for the study were obtained from both Primary and Secondary
Data sources. The Primary sources include direct information collected
through administration of questionnaires in order to gain insight into the
research topic. The secondary data sources include journals, textbooks and
other related publication both online and offline. Data were gathered
through administering of questionnaires to employees of Telekom Malaysia
from the two provinces (Kuala Lumpur and Selangor). The entire questions
in the questionnaires were structured and some of the questions were
intended to test hypothesis that were previously formulated in the study.
The questionnaire designed for this study has two sections which include; the first
section that consists of normal scale questions which involve demographic
information of respondents. The information was later converted into percentage
to ease analysis. And the second section that consists of 5 points Likert Scales
questions with 5 options to choose from. The options are provided for
respondents to show the rate at which they agree or disagree with the questions.
The options answer provided for the questions start with 1. which stands for
“Strongly Agree”, followed by 2. which represents “Agree”, the next is 3. which
stand for “Neutral”, followed by 4. which represents “Disagree” and ends with
5. that stand for “Strongly Disagree”.

References
Ahmad, S., & Schroeder, R. G. (2003). The impact of human resource
management practices on operational performance: recognizing country and
industry differences. Journal of Operations Management, 21(1), 19-43.
Bae, J., & Lawler, J. J. )2000(. Organizational and HRM strategies in Korea: Impact
on firm performance in an emerging economy. Academy of Management Journal,
43)3(, 502-517.
BARNEY, J., & Hesterly, W. (2006). 1.3 Organizational Economics:
Understanding the Relationship between Organizations and Economic Analysis.
The SAGE handbook of organization studies, 111.
Becker, B. E., & Huselid, M. A.)2006(. Strategic human resources management:
where do we go from here? Journal of management, 32)6(, 898-925.

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