Impact of human resource (HR) practices on organizational performance

Abstract

Purpose The purpose of this paper is to establish the impact of human resource (HR) practices on organizational performance and moderating effect of Islamic principles on the impact in Pakistani business organizations. It aims at finding efficacy of HR practices as well as the role of Islamic teachings in business. Design/methodology/approach Five broad categories of HR practices: selection, training, compensation, performance appraisal and employee participation, have been taken as independent variables and their impact has been assessed on organizational performance: dependent variable, keeping the application of the Islamic principles as moderating variable. Data were collected from employees of mobile telecommunication service providers operating in Pakistan through a questionnaire based on a 5-point Likert scale and then analyzed in SPSS. Findings HR practices, including selection, training, compensation, performance appraisal and employee participation, have been found to be significantly and positively related to organizational performance. Moderation by the application of Islamic principles was observed to be positive. Its magnitude generally displayed decreasing trend with an increase in level of application. Research limitations/implications Measurement of Islamic work ethics and organizational performance has been unidirectional, gauged only on the basis of employees’ judgment. Inclusion of organizational and market data in future studies will add to the value of the outcome. Understudy business organizations grudgingly provided required information, in spite of personal connections and liaison, because of their organizational policies, commitments and limited concern with the research. Lists of employees were not shared with the researchers, which left only the option of convenient sampling. More reliable sampling techniques are recommended for future research on the subject. Moreover, the sampling frame was limited to the province of Punjab because of shortage of resources. Future research on the subject is suggested to have a broader base, including organizations interested to participate in the exercise of research. Practical implications Outcome of the study will provide useful guidelines to the business organizations by clarifying whether business is a religion-neutral affair or not. It is also expected to provide a line of thought for self-assessment and improvement. The concept of maximization of profit for a business organization can be evolved to a win–win arrangement by the maximization of benefit for all stakeholders. This is a logical and certain outcome once a business organization takes care of its employees, society, environment and, definitely, its shareholders. Originality/value A few studies exist on human resource management in Islamic as well as Pakistani context; however, the role of the religion and its contribution toward organizational performance has not been amply crystallized. This is just an endeavor in hitherto less frequented direction.

Impact of Vision Based Recruitment on Organization’s Performance in Pakistan

“…Nevertheless, numerous organizations' administration is in search of haring the vision in a successful route for workers, which ensured the manageable advancement and long-haul development for the organization (Awan & Farhan, 2016). (Rana et al, 2017) defines employment as securing the right people to fill certain people. This can be in the form of advertising for large groups of employees or for the unqualified person into a specific job.…”

“…Unfortunately, the vision has turned into mishandling aspect considered in any organization, and undesirably the slightest comprehended expression of the goals structured in an organization (Rana et al, 2017). The broad writing audit of the influence uncovers noteworthy traits of a viable vision; hence, it is necessary to make vision clear and easy to understand for both the organization and employees of the organization (Dhar, Rahouma, Masruki, & Absar, 2017).…”

Pengaruh Praktik MSDM Strategik Dan Kinerja Karyawan Terhadap Kinerja Perusahaan (Studi Kasus Pada Perusahaan Persewaan Alat Pesta Oki Rejeki)

“…Meningkatnya kinerja organisasi merupakan cerminan usaha karyawan, dan cerminan peningkatan kinerja karyawan (Dahkoul, 2018). Kinerja karyawan adalah hasil yang dilihat pada aspek kualitas, kuantitas, waktu kerja, dan kerja sama untuk mencapai tujuan yang sudah ditetapkan oleh organisasi (Rana & Malik, 2017). Organisasi memainkan peran penting dalam meningkatkan kinerja karyawan melalui penyediaan pelatihan dan pengembangan karyawan, selain itu standar manajemen untuk mengevaluasi kinerja karyawan berperan penting dalam meningkatkan kinerja karyawan karena memberikan gambaran kinerja aktual dan keselarasannya dengan standar (Vosloban, 2012).…”

“…Di dalam organisasi, kinerja perusahaan adalah akumulasi hasil dari keterampilan, upaya dan kontribusi dari karyawan dalam peningkatan produktivitas organisasi yang mengarah ke pencapaian tujuan. Hubungan yang mеnyatakan bahwa kinerja karyawan bеrkontribusi tеrhadap kinеrja organisasi di buktikan mеlalui pеnеlitian Rana & Malik (2017). Bagi kеbanyakan industri, kinerja karyawan adalah basis utama tеrpеnting dalam mеnghadapi kompеtisi bisnis dimasa dеpan (Vosloban, 2012).…”

“…Kinerja karyawan memiliki indikator: kuantitas 4,13; ketepatan waktu 4,30; efektivitas 4,37; kemandirian 4,33, semua memiliki nilai rata-rata > 3 dari skala 1 sampai dengan 5. Hasil penelitian konsisten dengan temuan Rana & Malik (2017) dan Vosloban (2012) bahwa kinerja karyawan berdampak positif terhadap kinerja perusahaan. Perusahan mampu bertahan tidak hanya disebabkan faktor manajer yang kompetitif, perusahaan juga memerlukan karyawan yang kompeten untuk bersaing dengan karyawan perusahaan pesaing.…”