Impact of Hrm Practices

ijcrb. webs. com may 2012 interdisciplinary daybook OF contemporary search IN bank line VOL 4, NO 1 Impact of HR Practices on Employee profession ecstasy in Public Sector Organizations of Pakistan Muhammad Javed Faculty of Administrative Sciences charge University Islamabad, Pakistan Muhammad Rafiq (Corresponding Author) Faculty of Administrative Sciences Air University Islamabad, Pakistan Islamabad, 44000, Federal, Pakistan.Maqsood Ahmed Faculty of Administrative Sciences Air University Islamabad, Pakistan Mustajab caravanserai MS Scholar Muhammad Ali Jinnah University Islamabad, Pakistan Abstract A circulate of explore has been by dint of on the relationship of HR Practices and employee vocation at atomic number 53 workforcet but the primary(prenominal) focus and theme behind those research studies has been the developed countries. The purpose of this theatre of operations is to observe the relationship between three HR Practices i. e. ( work and Development, pays, quotation) and the employee work blessedness in the globe field organizations of a developing country, Pakistan.Data has been collected from the employees of divers(a) public atomic number 18a organizations and then regression and correlation arrive at been apply to check the relationship between the dependent and independent inconsistents. Recognition and upbringing and organic evolution be a key source of employee prank rapture in Public welkin organizations of Pakistan but rewards do not piss any significant impact upon employee descent bliss. Key Words Training and schooling Rewards Recognition ruminate expiation Pakistan Introduction A lot of researchers pay off found that HR Practices atomic number 18 constructively united with employee billet triumph (Wright et al. 2003 Spector, 1997 Huselid 1995) Petrescu & Simmons, 2008). The aim and of import focus of these studies have been developed countries. The look did not counterpart proficient 2 012 Institute of interdisciplinary headache search 348 ijcrb. webs. com whitethorn 2012 interdisciplinary JOURNAL OF CONTEMPORARY RESEARCH IN occupancy VOL 4, NO 1 turn towards developing countries analogous Pakistan in a great deal. (Aycan et al. 2000) found that so far in truth little research has been conducted in the field of HR Practices i. e. Training and development, Rewards and Recognition in Pakistan which shows that this feature field still has a lot of space for further research.The main theme of this particular research is to observe the relationship between HR Practices (Training and development, Rewards, Recognition) and Employee chore Satisfaction in public sector organizations of Pakistan. These HR Practices ar withal known as key drivers of employee carrying into action. Training and development is one of the key segments of employee ponder bliss because it reduces the discrepancies in job tasks and enhances the job skills which in result motivates the em ployees and lead towards job rapture.Employees get lavishlyly make by dint of rewards and fruition and these two factors lead towards employee motive and research shows that highly cause employees atomic number 18 the most satisfied employees and alike the high performers. This subject argona is extremely significant as it is a big insight for the public sector organizations of Pakistan. nonemally managers dont focus upon the relationship of rewards and job cheer, credit rating and job satisfaction or teach and development and job satisfaction.So this study leave enable them to make a better strategy in terms of employee job satisfaction and to focus upon those HR practices which actually atomic number 18 the source of job satisfaction for employees. E actually individual employee wants satisfaction at job but organization is wasting its imaginativenesss by foc using on wrong HR practices for employee job satisfaction. This study could be an eye ruiner for many org anizations and may salubrious prove to be a very productive one. Pakistan is one of those countries where people working in the public sector organizations are often not sure around the job satisfaction direct.The unsatisfied employees of public sector organizations, when switch to cliquish sector i. e. MNEs, they have been observed to be much facsimile overcompensate 2012 Institute of Interdisciplinary clientele examination 349 ijcrb. webs. com whitethorn 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN logical argument VOL 4, NO 1 more than satisfied, therefore it is very weighty for the managers to know which HR Practices keep them satisfied and how much all- classical(a) role rewards, realization and fosterage and development have regarding employee job satisfaction.This study can be very plentiful for HR Managers of Public sector organizations in Pakistan as they would get a very clear intellect ab disclose the relationship of three important HR Pract ices and employee job satisfaction and as a result can have much more productive employees and a decreased turn over rate in their organizations. Literature Review HR Practices HR Practices are linked with the counselling of pitying choices, activities necessary for staffing the organization and sustaining high employee performance (Mahmood, 2004).The most general HR Practices are recruitment, selection, training and development, compensation, rewards and recognition (Yeganeh & Su, 2008). Six HR practices discriminating hiring, compensation policy, rewards, recognition, training and development and information sharing have been analyze with relation to employee job satisfaction (Dessler, 2007). The present study examines the relationship between three HR Practices i. e training and development, rewards, recognition and employee job satisfaction. Job Satisfaction Job satisfaction means what are the feelings of different employees about the different dimensions of their jobs (Rob bins, 2003).The direct of satisfaction and dissatisfaction is another aspect which is link up to employee job satisfaction (Spector, 1997). Job satisfaction may be the general bearing emerged due to different happenings at the work place it may be supervisors style, relationship with peers or the work environment (Janet, 1987) . confused factors such as an employee pick ups and desires, social relationships, job design, compensation, developmental opportunities and aspects of work-life equilibrise are 350 COPY RIGHT 2012 Institute of Interdisciplinary Business interrogation ijcrb. webs. com MAY 2012INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN profession VOL 4, NO 1 considered to be roughly of the key factors of job satisfaction (Byars & Rue, 1997 Moorhead & Griffin, 1999). concord to (Robbins 1999), a satisfied workforce can increase organizational productiveness through less distraction caused by absenteeism or turnover, few incidences of withering behavior, and low medical costs. Training and Development Training is focusing on fixing a specific issue (Doyle, 1997). Training often answers the question what happens if Development on the other hand takes a more world(prenominal) approach.Training is tie in with current performance and progress of an employee while development is related with the future performance and progress (Miller, 2006). Training is anything offering learning endure (Paul & Anantharaman, 2003) Training helps employees is more specific with their job and organization and as a result increases employee job satisfaction and makes them work better. H1 Training and development is importantly and positively related with employee job satisfaction. Recognition Recognition is appreciation of employees performance in formal or an informal way.Recognition is one of the tearaway(a) force towards motivating employees, it besides highlights how much an employees performance is apprehended in an organization for the amount of work he/she has put in (Miller & Lawson, 1999). Recognition maintains a strong bond between motivation and performance and as a result the level of motivation of employees stays very high almost all the time (Flynn, 1998). Recognition increases level of job satisfaction and satisfied employees are a valuable summation for any organization (Entwistle, 1997). Recognition is often considered to be of two major(ip) types, cash and non-cash awards.Different sectors accept different ways of recognition to be applied, some sectors or segments of people may like cash and prizes to be a easy and better way of motivation while others may like non-cash COPY RIGHT 2012 Institute of Interdisciplinary Business query 351 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN billet VOL 4, NO 1 awards because they feel that if cash is to be given as recognition than they already have salaries and other bonuses which get consumed very quickly (Holmes, 1994) . H2 R ecognition is significantly and positively related with employee job satisfaction.Rewards Rewards are usually referred to as intangible returns including cash compensation and benefits. Reward system is set of mechanisms for distributing twain tangible and intangible returns as part of an employment relationship (Rue & Byars, 1992). Rewards are also termed as the need of an employee because when reward will be linked with the employees desire it will motivate him/her to a very high level (Kalleberg, 1977). It certainly shows that what an employee wants after performing a certain task. It has been revealed in the past researches that rewards are very strongly correlated with job satisfaction.Rewards are positively linked to employee job satisfaction (Gerald & Dorothee, 2004). Their research extracted one important element that employees are more satisfied with those rewards that they actually perceive. (Clifford, 1985) argues that employee Job satisfaction may be determined through job rewards. There are a lot of differences between different authors related to the dimensions of rewards and employee job satisfaction but one thing upon which almost all agree upon is the element of rewards that are perceived by employees (Kalleberg, 1997). H3 Rewards are significantly and positively related to employee job satisfaction.COPY RIGHT 2012 Institute of Interdisciplinary Business look into 352 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS hypothetical Model of the Study VOL 4, NO 1 INDEPENDENT covariantS DEPENDANT VARIABLE Training and Development Recognition Employee Job Satisfaction Rewards Methodology The population for this study was public sector organizations of Pakistan, (ZTBL, NDC, SME Bank ltd). 180 questionnaires were distributed to get result of employees while 140 useful responses were received back (77%). Convenient taste had been used to gather selective information.The scale used for this research is high ly legitimate as it has been related to scales of many past researches. This questionnaire checks the impact of HR Practices (Training and development, rewards, recognition) on employees job satisfaction. Relationship of HR Practices and job satisfaction has been tried and true on a 17 spots scale. All the items of scale have been interpreted from renowned past researche studies (Clifford, 1985) job satisfaction, (Rogg, Schmidt, Shull & Schmitt, 2001) training and development (beer, 1987) recognition, (Spector, 1995) rewards. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 53 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 1 Job satisfaction has been measurable through a 3 item scale, training and development has been measured through 6 items scale, and 4 items have measured recognition while another 4 items have measured rewards. Questionnaires were filled under our personal supervision. The statistical tests were applied upon the data through statistical software SPSS. Degree of association was measured by using Pearson coefficient. Causal relationship between HR Practices and job satisfaction was estimated by using Regression summary.According to the data collected the respondents total age for 25 or below segment is 31. 4, for 26-35 is 26. 4, for 36-45 is 30. 0 and 46 or in a higher place segment is 12. 1 55. 7% of the respondents are antheral while 44. 3% are female. The detail description of demographics is given in put over 1. Table 1 Demographic profile of respondents Sr No 1 Age Indicators Categories 25 or below 26-35 36-45 46 or above 2 Gender Male Female 3 constitution of Job Permanent Temporary Contract 4 Income level 25,000 or below 26,000-35,000 36,000-45,000 46,000 or above Frequency 44 61 17 18 78 62 68 63 09 44 37 42 17 Percentage 31. 43. 6 12. 1 12. 9 55. 7 44. 3 48. 6 45. 0 6. 40 31. 4 26. 4 30. 0 12. 1 COPY RIGHT 2012 Institute of Interdisciplinary Business Res earch 354 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Data Analysis and Results Reliability Analysis VOL 4, NO 1 Cronbach of import is the tool used to check the reliability of any scale. According to the statistical analysis the value of cronbach alpha ranges between 0. 698-0. 847. Normally 0. 6 is the minimal acceptable range for cronbach alpha. The overall reliability of scale items is found to be 0. 92. the detailed description of the value of cronbach alpha is given in table 2. Table 2 Cronbach Alpha of Scale Items Construct/ covariant Job satisfaction Training and development Recognition Rewards Number of items 3 6 4 4 Cronbach alpha 0. 698 0. 824 0. 760 0. 847 correlation coefficient Correlation analysis has been carried out to check the extent to which two quantitative variables vary together, including the strength and focusing of their relationship. The strength of the relationship refers to the extent, to which one variable predicts the other it can be observed in table 3.Table 3 Correlations Satisfaction Job Satisfaction Training & dev Recognition Reward Correlation Correlation Correlation Correlation 1 . 469(**) . 650(**) . 684(**) 1 . 550(**) . 615(**) 1 . 952(**) 1 Training Recognition Reward As shown in the above table, training and development, recognition and rewards all are found to be positively correlated with dependent variable job satisfaction. The value (r= . 469) suggests that training and development is positively correlated with job satisfaction, (r= . 650) COPY RIGHT 2012 Institute of Interdisciplinary Business Research 355 ijcrb. webs. comMAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 1 shows that recognition is also positively correlated with job satisfaction and (r= . 684) shows that rewards are also positively correlated with job satisfaction. Correlation analysis showed that there is positive relationship between job satisfaction and independent variables. Table 4 Regression Analyses Model 1 R . 710(a) R Square . 504 familiarised R Square . 493 Std. Error of the Estimate . 26238 Table 5 Coefficients (a) standardised Variables Unstandardized Coefficients B (Constant) Training Recognition Reward . 25 . 266 . 088 . 443 Std. Error . 343 . 085 . 205 . 206 . 243 . 086 . 453 Coefficients beta 2. 696 3. 145 . 430 2. 147 . 008 . 002 . 668 . 034 t Sig. As shown in the above table of coefficients (a), training and development is positively affecting the dependent variable job satisfaction as the beta value is (. 266). It is shown in the table that recognition also has a positive effect on the job satisfaction, represented by beta value (. 088) and rewards also have positive effect on the job satisfaction, represented by beta value (. 443).Independent variables, training and development and rewards are having a positive and significant relationship with the dependent variable but recognition is not having a significant relationship. The value of R square is . 504 which means that 50. 4% variation in dependent variable can be explained by independent variables. On the basis of above analysis, hypotheses 1 and 3 are accepted but hypothesis 2 has been rejected. Previous researches had shown the same results. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 356 ijcrb. webs. com MAY 2012INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Table 6 Hypotheses Testing Hypotheses H1 Training and development is significantly and positively related with employee job satisfaction. H2 Recognition is significantly and positively related with employee job satisfaction. VOL 4, NO 1 Result Accepted Rejected H3 Rewards are significantly and positively related to employee job satisfaction Accepted Conclusion and incoming Recommendations The findings of this research can be implemented in different ways in public sector organizations of Pakistan.First of all training and development has a weak correlat ion with employee job satisfaction which clearly indicates that training and development is not a strong driver of job satisfaction in public sector organizations of Pakistan. Therefore serious amount of consideration should be given to this aspect. Before allocating any sort of training activities to employees training need analysis should be conducted so that managers should exactly know that which kind of training should be given to employee.If employee will feel training to be provoke and is according to the need of an employee than employees will actively participate in trainings and that training will be much more productive and source of satisfaction for employees. Employees will not only learn more but they will also exhibit the learned skills at the workplace as well which will enhance the employee performance and that will lead towards enhancement of organizational performance and then organizations will have satisfied employees.Rewards and recognition are both strongly c orrelated with employee job satisfaction which is an indication that how important employees perceive rewards and recognition for them in the public sector organizations of Pakistan. Rewards and recognition are both very useful and recognized tool of employee job satisfaction but both these variables act other way around if COPY RIGHT 2012 Institute of Interdisciplinary Business Research 357 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 1 here is no equity. So it is very important for managers in public sector organizations to eliminate discrimination while giving rewards or recognition. Pakistan is a developing country and employees of public sector organizations love to get rewards as compared to recognition, monitory rewards are of great importance because past researches show that monitory benefits for employees of public sector organizations of developing countries have great significance towards job satisfaction and this s tudy also supports this particular argument.This is why the analysis of data shows that rewards are extremely significant but recognition is not. Future researchers need to study the relationship of job satisfaction and other HR practices in relation with public sector organizations of Pakistan. When other HR practices will also be investigated that will provide a very clear and broader count on to managers and it will be very easy for them to decide that which factors lead towards job satisfaction and which do not in public sector organizations of Pakistan.The in-depth analysis of compensation, promotion and performance evaluation practices can be very fruitful for the managers of public sector organizations and those studies will certainly increase the profitability and level of job satisfaction of employees. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 358 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS References VOL 4, NO 1 Ahmad , I. , Khalil , M. 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