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Introduction                   

 

 

growing trends including globalization, internationalization, IT
revolution and workforce diversity have led to capitalizing human assets to
gain competitive advantage (Devanna, Formbrun&Tichy,1981;Barney&Wright,
1998;Sett,2004;Rosenblatt,2011). In recent times emphasis is on human resources
as the most vital  resource  for attaining competitive advantage(McCourt & Minogue, 2001)

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HRM is considered as a distinguishing technique which is aimed to hire
highly professional and sustainable staff to keep competitive edge the use of
diverse strategies (Storey, 1989). A sustainable personnel incorporates of
capable and skillful employees who are managed properly. This leads to self-actualization,
expanded efficiency and performance of an organization.

 Getting the right people with
required set of skills and expertise is critical to maintain then managing
workforce. Researchers opined that managing workforce is the most difficult
task managing capital or technology(Pfeffer, 1998).

Chadwick and Cappelli studied the role of strategic human resource
management from resource primarily based view and their results indicated that
HR practices assist to get higher overall performance levels by means of
developing higher competencies which result in sustainable competitive
advantage.(Chadwick & Cappelli, 1999)

South Asian economy has shown growing trend towards globalization to
compete in the globalized environment. quality human resource practices like
skill based training and development periods, equality based overall
performance evaluations, career development programs, rewards management are
being implemented in organizations (Sett, 2004).

According, to Choi (2010) effective human resource management in the basis
for the enhancement of organizational financial and employees ‘retention.(Choi, 2010). Arthur studied effect of HRM practices on
performance. It showed that there has been a positive association between human
resource management practices and organizational performance.(Arthur, 1992)

 HRM is also conceptualized by
Delery and doty (1996) as a set of consistent practices and policies designed
to ensure contribution from the human capital towards the accomplishment of
organizational goals.(Delery & Doty, 1996) According to Schuler and MacMillan (1984) (Schuler & MacMillan, 1984) HRM practices are activities to manage the
pool of human resources to make sure that these hired resources are fulfilling the
targets of the organization. These practices include recruitment and selection
of competents work force, training and development, performance appraisal
through compensation and career development.

An organization is an association of various resources such as human
,Capital and physical, which are used for achievement of organizational  goals (Alchian ,1972;Jensen &
Mackling, 1976; Simon,1976;Barney,2001).(Ahlstrom, Foley, Young, & Chan, 2005) Organizational effectiveness cannot be
achieved without gaining organinational commitment through effective individual
performance that is responsive towards organizational targets (Becker,1960;
Porter et al ., 1974 ;Mowday ey al ., 1979; Allen 1996 ,. Mowday
,1998; Beck,2000).

Katou(2008)conceptualized organizational performance as a sum of  efficiency ,effectiveness , development and
quality .(Katou, 2008). According to Daft (2010)organizational performance is defined
as organization’s ability to use its resources to accomplish organizational
objectives in an effective manner .Various researchers have concluded
the relationship between human resource management practices and organizational
performance ( Huselid,1995;Hoqua,1999;Khatri,2000;pfeffer ,1998). (Huselid, 1995). Despite the connection between Human
resource management practices have been proved still there is some kind of
black box yet to be unlocked (Becker &Gerhart ,1996 ;Becker&
Huselid,1998; McMahan et al ,1998).(B. Becker & Gerhart, 1996; B. E. Becker, Huselid, Becker, &
Huselid, 1998)

Many of the researches have been initiated in emerging countries(Ahlstrom et al., 2005) ( Ahlstron, Foley,Young&Chan
,2005;Zupan& Kase,2005 ,the literature has highlighted that different  investigations have been done in which some
examine the association between one or two HRM practices and organizational
performance where others determine the employees perception about the
effectiveness of HRM  practices towards
organizational success .

According to Bashir and Afzal (2008) HRM practices were adopted in Pakistan
as a response to the competitive challenges posed by globalization but the
adopted of HRM practices is still in its initial stages .(Bashir & Afzal, 2008). Nowadays active HRM practice as required
to meet the challenges resulting from constant Changes in the work environment
to achieve Organization’s success. It’s not going to be an easy task to manage
the generation in this dynamic environment. Implementation of proper HRM
practices is needed to strengthen an organization through increase in
employee’s performance. Therefore the current research is conducted to
determine the influence of HRM practices on organizational performance in a public
sector organization, WAPDA.

The main purpose of the research is to scrutinize and explain the
influence of HRM practices on organizational performance .The current research
has focuses on HRM practices including recruitment and selection and training
and development.

Objectives

Following are the objectives of the research;

TO
investigate the current status of HRM practices in WAPDA To
investigate the current status of organizational performance in WAPDATO
investigate the relationship HRM practices and organizational performance in
WAPDA. Significance of the study  The current research
will be helpful for public organization in maintaining synchronized HRM
practices for achieving organizational targets. This research will enable the
senior management of WAPDA to observe how successfully HRM practice contribute
towards the accomplishment of firm’s goal hence lead to better organizational performance.
This research will help employees to realize how HRM practices are going to
facilitate their capabilities and energies towards their work to enhance organizational
performance.The current research
findings will be an addition to the literature of HRM as the scholars for further
study in the related field of human resource management and its linkage with organization’s
performance. This research will be significant to determine which HRM practices
are contributing more in determining the organization performance in today’s dynamic
business environment.The significant
increasing trend of privatization has created competition in the labor market
by attracting more competent employees. Therefore, public sector must adopt
these advanced HRM practices to retain competent manpower.Moreover, the
determination of the association between HRM practices and organizational
performance will help to identify the mechanism involved in maintaining proper HRM
practices which in turn will enable the practitioners to improve the overall
organizational performance ensuring satisfied and motivated employees.                                                                             LITERATURE
REVIEW   The
concept of HRM  evolved as a strategic
approached towards managing people under the influence of different  factors ,including deregulation and
globalization in the developed countries.Many of the scholars have seen much
difficulty in describing the difference between HRM and personnel management.
Some have perception that HRM is just another label chosen for personnel
management(Koster,2007;Lawton &Rose 1994;Legge,1995; Gunnigle & Flood,
1990).(Köster, 2002)     
It has been identified by (Storey, 1989)that there are four features to
differentiate between HRM and personnel management: it is related with the
corporate strategy of the organization, it is linked with the retention of core
employees, it is an incorporated approach towards HRM practices which is used
to obtain employee commitment and it is the domain of line managers.

                      (Torrington & Hall,
1998)
demonstrated that the focus of personnel management is more     

                      Towards
the labor but the focus of HRM is concentrated towards employees while
considering them a source of competitive edge.

According to (Guest, 1987)carrying out HRM activities is
just a personnel function but in HRM approach these functions are performed in
a qualitative way. However, it can be concluded that activity that is related
to managerial staff is HRM .(Guest, 1991)

 (Zhao, 2008) added that some people show a
confusion regarding talent management. HRM and personnel management. There is a
difference of management functions between these types of management. Talent
management related to make a connection between employee and its potential
competency (Kock & Burke, 2008). Personnel management is
concerned with hard management function where employees are managed according
to the rules of the firm (Nishii, Lepak, & Schneider, 2008). HRM is more related to the
concept that employees are the valuable resources of the organization and they
can be the only source of organization success. It includes both hard and soft
management function to develop employees and help them to gain organization’s
target as well as a balance their work and routine life (Chien, 2004).

The importance of traditional
sources like natural resources, economics of scale and old technological
methods for obtaining competitive edge is decreasing now as these are easy to
duplicate.Therfore  the importance of
human resources has been increased as these are irreplaceable(Pfeffer, 1994).

Due to environment changes many
organizations responded in an unplanned manner in 1970s, 1980 and 1990s.Later
in the 21st century there is a huge demand for a strategic HRM
approach to deal with the constant changing environment. Globalization, market
change, technological advances and competition pose a big challenge to
contemporary management of HR and these are the major reasons that bring
transformation of HRM (Harvey, 1996).

Reinventing of public sector
organizations through introducing the private sector management culture is
heaving much influence on their employment practices as said that these public
sector organization are targeting government employees with realization that
human resources are important to achieve firm’s (CAPAM, 2005)

HRM Practices and Organizational Performance

it is explained in the reported
evidence that employee performance and organizational effectiveness is related
to the different features of HRM practices such as Recruitment and slection, training
programs (Koch & McGrath, 1996)

The HRM practices such as merit
based recruitment and selection, skill based training programs, career
development, performance evaluation system, rewards system have an impact on
firm units and suggested that effective management of these HRM practices can
lead to the maximization organization’s profit. (Beer, Spector, Lawrence, Mills, &
Walton, 1984)) explained that it is the HRM department that is
developing required skills, building an unbiased performance appraisal system,
motivating employees compensating employees for retention of capable workforce.(Katou & Budhwar, 2010) showed the positive linkage
between organizational performance and fair HRM practice through correlation.

Much of the research scholars have
worked to examine the impact of HRM practices on firm performance. (Pfeffer, 1998) has introduced seven HRM
practices that have independently or collectively impact on organizational
performance. Those seven practices are: employee selection, employee security
plan, decentralization in decision making, compensation and benefits training
programs, employee involvement and reduced status barriers.

Many scholars have investigated
linkages between HRM practices and organizational performance which
operationalizing HRM practice  in many
different ways. Some researchers have studied only one practice of HRM like
staffing practices.(Terpstra & Rozell, 1993).

(Kane & Palmer, 1995) have suggested some exernal
factors that affect the HRM practices and cannot  be handled easily. These factors are
economice change that have broaden the dimension of HRM practices, technogical
changes that have an impact on the interaction through which different  activities takes place and legislation that have
an direct impact on the HR. HRM practices are also affected by internal
environment of firm .

It has been demonstrated in the
literature that these are many models provided by some  researchers describing the the relationships
between HRM practices and firm ‘s performance.  The Harvard model is very useful for the
managers as it provides a guideline about the soft aspect  of HRM. It 
concentratrates on how to keep employees congruent, competent and cost
effective leading to better job performance and keep them committed to the firm
(Beer et al., 1984)

The Michigan model is related to
hard HRM . According to this model these should be proper management and development
of people like other resources (fombrum ,Tickhy &Devanna , 1984 ). It is
also mentioned in this model that all HRM activities are interrelated and geared
towards the firm performance. The Guest comparative model ((Guest, 1991) is related  to the fact organizational success is the result
of a set of HRM practice.

Recruitment and selection

Recruitment is a process that is
used to hire only those  people who have
required skills along with this process there should be another important thing
to be taken into  consideration with this
process these should be attitude fit of the candidate (Pfeffer, 1998). Selection is a process that
is used to hire that person according to the job requirement with  the view that only compensation and benefits
are not enough to motivate employee to work the firm sustainable success (Roberts, 1997)

According to (Armstrong & Taylor, 2014)recruitment and selection
process includes four necessary stages such as defining appropriate job
requirement , attracting skilled candidates, selection the capable  candidates and placing them in the job
positions.

It has also demonstrated that
implementation of an appropriate staffing procedure is positively linked with
organizational productivity (Delaney & Huselid, 1996). (Chand & Katou, 2007) has also explored that
recruitment and selection bring a significant part of HRM system is strongly correlated
to the profitability of organization and suggests that the HR managers should
take into consideration these HRM practices to keep sustainable productivity .

Training and Development

According to (Cunningham, 2007) to maintain fully developed
employees in the organization there should be appropriate training and
development system . For deep understanding of the organization ,s
performance  standards , training and
development programs should be takes as opportunity for learning .Under the
supervision of trained employees training and development course should be
arranged which can result into employees, effective task performance.

It is also mentioned in resource
based view that human resources are necessary for the firm ,so contributing to
the this literature it is noted that these resources should be given proper
training.(Saa-Perez & Garcia-Falcon, 2002).

(Zhu, 2004) have studied about
transformation in the area of HRM department in japan. There is a strategic
shift in which focus is on the impact of effective learning at organizational
and individual levels. It has been studied by (Huselid, 1995) that development of the
employees can lead to better employee productivity and it is the best indicator
of firm performance. In a research(Michie & Sheehan?Quinn, 2001) has explained these is
negative correlation between low levels of training and organizational
performance.

Another important point is noted
that when proper training programs are available for employees they feel
satisfied and valued as they think that the organization is willing to invest
in long term relationship with them. They will get sense of emotional
attachment and concern towards the firm which leads to leads to lower leve (Suazo, Martínez, & Sandoval, 2009).It is mentioned that many of
the organizations are conducting extensive training sessions of the employee
for improving firm performance(Gerhart, 1990).

 

 

 

                                       
Methods

 

Research Design

    Considering
the purpose of the research, descriptive and correlation research design has
been used. Descriptive research design adopted as it helps to descriptive
events reasons and situations briefing about what has happened and what is
happening (Trochim & Donnelly, 2001). This research has been utilized to explain some HRM
practice. On the other hand, correlation study attempts to look at the
association between predicts. On the criterion variables of the research. The
predictor variable of the research is HRM practices. The criterion variable is
organizational performance. In this research an attempt has been taken to find
out the influence of HRM practices on organizational performance of WAPDA.

This
research is carried with the help of survey 
method using cross sectional research design .Questionnaires are used as
the respondents are highly educated and to obtain optimum number of employees
in a limited time period, survey is the best options to choose (Zikmund,2002) .

Population

The
target population of research includes all the employees working at WAPDA.

Tool of Date Collection

A
close ended type questionnaire is used as tool for collection of date. To
measure the HRM practices and organization performance of WAPD, .a 48-item a5
item Likert type questionnaire is developed with some modifications from
earlier studies.(Masood, 2010; Quansah, 2013)  The instrument
is reliable and valid as its Cronbach alpha score is above 0.8.

The
questionnaire is divided in to two sections one contained the company and
personal information and nominal and ordinal scale while the other section is
based on questions relating to the HRM practices and organizational performance
on five point Likert scale. The scaling is done as follows;

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

A
cover letter has also been attached in which objectives and scope of the
research has been mentioned, assuring the respondents about strict secrecy.

For
date collection the researcher visited organization and collected data from the
workforce by distributing questionnaires. The researcher was directed by the HR
department to different department of the organization. Complete date was
collected in three weeks. After conducting the response rate was 86%.

Unit
of Analysis  

This
research has been conducted at organizational level so the units of analysis
include individuals from three levels of management of SNGPL,

Pre-testing
is related to check out the questionnaire used for the actual survey, whether
it is fulfilling the required purpose of the research to get accurate results
or not .It is also done to avoid any errors. For this purpose researcher has
used a sample of 20 employees.

 

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