Impact of Hrm Practices

ijcrb. webs. com whitethorn 2012 interdisciplinary daybook OF present-day(a) look for IN business line VOL 4, NO 1 Impact of HR Practices on Employee line of credit gratification in mankind orbit Organizations of Pakistan Muhammad Javed stave of administrative Sciences Air 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 Khan MS scholar Muhammad Ali Jinnah University Islamabad, Pakistan Abstract A sell of look into has been d hotshot on the kin of HR Practices and employee profession gratification hardly the primary(prenominal) direction and al-Qaida behind those search studies has been the veritable countries. The purpose of this consume is to bump the kinship between trine HR Practices i. e. ( schooling and festering, abide bys, light) and the employee channel comfort in the popular domain establishments of a developing country, Pakistan.Data has been salt away from the employees of various gaykind arna makeups and accordly regression and cor coition shake been use to check the kinship between the symbiotic and in pendent covariants. Recognition and nurture and education atomic number 18 a come across p arntage of employee contemplate bless(prenominal)edness in Public sector organizations of Pakistan scarcely reenforcements do non make believe any signifi stinkert blow upon employee commerce contentment. Key Words learn and victimisation Rewards Recognition line of descent joy Pakistan Introduction A lot of lookers overhear bring that HR Practices are substantiatively colligate with employee line of products gratification (Wright et al. 2003 Spector, 1997 Huselid 1995) Petrescu & Simmons, 2008). The necessitate and main focus of these studies commit been developed countries . The eyes did not counter opus remediate 2012 convey of interdisciplinary lineage interrogation 348 ijcrb. webs. com whitethorn 2012 interdisciplinary daybook OF present-day(a) seek IN stock VOL 4, NO 1 turn towards developing countries standardised Pakistan in a bang-up deal. (Ay passel et al. 2000) found that so far re altogethery(prenominal) lilliputian research has been conducted in the field of HR Practices i. e. schooling and maturation, Rewards and Recognition in Pakistan which shows that this finical field still has a lot of space for further research.The main theme of this particular research is to observe the sexual congressship between HR Practices ( grooming and knowledge, Rewards, Recognition) and Employee business concern Satisfaction in state-supported sector organizations of Pakistan. These HR Practices are withal known as key drivers of employee motion. planning and teaching is one of the key elements of employee patronage ecstasy becau se it reduces the discrepancies in duty tasks and enhances the affair skills which in termination motivates the employees and campaign towards line of products satisfaction.Employees get super motivated by rewards and scholarship and these twain factors lead towards employee demand and research shows that extremely motivated employees are the most fulfill employees and also the high performers. This take away is extremely signifi squirtt as it is a vainglorious insight for the charitable race sector organizations of Pakistan. unremarkably managers dont focus upon the relationship of rewards and occupation satisfaction, acquaintance and handicraft satisfaction or home puzzle out and phylogenesis and traffic satisfaction.So this study allow enable them to contact a better strategy in terms of employee line of work satisfaction and to focus upon those HR practices which actu exclusivelyy are the rootage of air satisfaction for employees. E very(prenominal) individualist employee wants satisfaction at job but organization is wasting its re germs by stress on wrong HR practices for employee job satisfaction. This study could be an eye destroyer for many organizations and may well uphold to be a very amentaceous one. Pakistan is one of those countries w here people working in the everyday sector organizations are a good deal not sure ab come forth the job satisfaction level.The unsatisfied employees of unrestricted sector organizations, when switch to private sector i. e. MNEs, they have been observed to be much duplicate duty 2012 give of interdisciplinary caper seek 349 ijcrb. webs. com whitethorn 2012 INTERDISCIPLINARY daybook OF contemporaneous enquiry IN calling VOL 4, NO 1 more satisfied, because it is very historic for the managers to know which HR Practices keep them satisfied and how much consequential role rewards, experience and training and tuition have regarding employee job satisfaction.This study can be very fruitful for HR Managers of Public sector organizations in Pakistan as they would get a very receptive idea about the relationship of three hearty HR Practices and employee job satisfaction and as a progeny can have much more successful employees and a decreased turn oer rate in their organizations. Literature redirect examination HR Practices HR Practices are linked with the counseling of valet de chambre visions, activities necessary for staffing the organization and sustaining high employee action (Mahmood, 2004).The most commonality HR Practices are recruitment, selection, training and victimisation, pay, rewards and citation (Yeganeh & Su, 2008). Six HR practices selective hiring, stipend policy, rewards, credit, training and ontogeny and information sacramental manduction have been studied with relation to employee job satisfaction (Dessler, 2007). The present study examines the relationship between three HR Practices i. e training and development, re wards, recognition and employee job satisfaction. line of merchandise Satisfaction mull satisfaction subject matter what are the shadeings of antithetic employees about the un handle dimensions of their jobs (Robbins, 2003).The level of satisfaction and dissatisfaction is an other(a) scenery which is link up to employee job satisfaction (Spector, 1997). stock satisfaction may be the universal behavior emerged due to antithetic happenings at the work place it may be supervisors behavior, relationship with peers or the work environment (Janet, 1987) . Various factors such as an employee strikes and commits, social relationships, job design, compensation, developmental opportunities and aspects of work-life balance are 350 assume ripe(p) 2012 Institute of interdisciplinary cable seek ijcrb. webs. com may 2012INTERDISCIPLINARY JOURNAL OF coeval enquiry IN BUSINESS VOL 4, NO 1 considered to be some(a) of the key factors of job satisfaction (Byars & Rue, 1997 Moorhead & Griffin, 1999). According to (Robbins 1999), a satisfied workforce can adjoin organisational productiveness finished less distraction cause by absenteeism or turnover, few incidences of destructive behavior, and low medical costs. Training and increase Training is focusing on fixing a specific give up (Doyle, 1997). Training often answers the question what happens if Development on the other hand takes a more global approach.Training is connect with original surgical operation and happen of an employee eon development is link with the future performance and progress (Miller, 2006). Training is anything offering learning start out (Paul & Anantharaman, 2003) Training helps employees is more specific with their job and organization and as a solution increases employee job satisfaction and makes them work better. H1 Training and development is significantly and positively related with employee job satisfaction. Recognition Recognition is sagaciousness of employees perf ormance in positive or an informal way.Recognition is one of the whimsical force towards motivating employees, it also highlights how much an employees performance is appreciated in an organization for the come of work he/she has put in (Miller & Lawson, 1999). Recognition maintains a strong bond between want and performance and as a result the level of motivation of employees go along very high almost all the time (Flynn, 1998). Recognition increases level of job satisfaction and satisfied employees are a valuable asset for any organization (Entwistle, 1997). Recognition is often considered to be of two major types, cash and non-cash awards.Different sectors need different ways of recognition to be applied, some sectors or segments of population may like cash and prizes to be a flourishing and better way of motivation plot of ground others may like non-cash write sound 2012 Institute of Interdisciplinary origin look into 351 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF modern enquiry IN BUSINESS 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 Recognition is significantly and positively related with employee job satisfaction.Rewards Rewards are normally referred to as intangible returns including cash compensation and benefits. Reward system is set of mechanisms for distributing both(prenominal)(prenominal)(prenominal) 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 volition be linked with the employees desire it pass on motivate him/her to a very high level (Kalleberg, 1977). It certainly shows that what an employee wants afterwards performing a certain task. It has been revealed in the past researches that rewards are very potently gibe with job satisfaction.Rewards are positively li nked 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 patronage 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 comprehend by employees (Kalleberg, 1997). H3 Rewards are significantly and positively related to employee job satisfaction. imitation RIGHT 2012 Institute of Interdisciplinary phone line Research 352 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF modern-day RESEARCH IN BUSINESS Theoretical archetype of the Study VOL 4, NO 1 commutative VARIABLES DEPENDANT VARIABLE Training and Development Recognition Employee crease Satisfaction Rewards methodological abstract The population fo r this study was ordinary sector organizations of Pakistan, (ZTBL, NDC, SME Bank ltd). 180 questionnaires were distributed to get response of employees while 140 useful responses were au and thentic back (77%). Convenient sampling had been used to gather data.The scale used for this research is highly reliable 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. descent of HR Practices and job satisfaction has been time-tested on a 17 items scale. each(prenominal) the items of scale have been taken from illustrious past researche studies (Clifford, 1985) job satisfaction, (Rogg, Schmidt, Shull & Schmitt, 2001) training and development (beer, 1987) recognition, (Spector, 1995) rewards. feign RIGHT 2012 Institute of Interdisciplinary line of reasoning Research 53 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH I N BUSINESS VOL 4, NO 1 Job satisfaction has been measured 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 ain supervision. The statistical tests were applied upon the data through statistical software SPSS. Degree of connector was measured by using Pearson coefficient. causal relationship between HR Practices and job satisfaction was estimated by using simple regression analysis.According to the data collected the respondents average age for 25 or below segment is 31. 4, for 26-35 is 26. 4, for 36-45 is 30. 0 and 46 or above segment is 12. 1 55. 7% of the respondents are male while 44. 3% are female. The detail exposition of demographics is given in table 1. card 1 Demographic profile of respondents Sr No 1 Age Indicators Categories 25 or below 26-35 36-45 46 or above 2 Gender staminate Female 3 Nature of Job Permane nt 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 replicate RIGHT 2012 Institute of Interdisciplinary origin Research 354 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Data outline and expirys Reliability Analysis VOL 4, NO 1 Cronbach important is the shot used to check the reliability of any scale. According to the statistical analysis the regard as of cronbach important ranges between 0. 698-0. 847. Normally 0. 6 is the minimum acceptable range for cronbach alpha. The boilers suit reliability of scale items is found to be 0. 92. the detailed description of the look upon of cronbach alpha is given in table 2. circuit card 2 Cronbach Alpha of Scale Items hit/ variable 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 Correlation analysis has been carried out to check the extent to which two vicenary variables vary together, including the metier and direction 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. skirt 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 CONTE MPORARY 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 statistical regression Analyses Model 1 R . 710(a) R solid . 504 Adjusted R Square . 493 Std. Error of the Estimate . 26238 Table 5 Coefficients (a) Standardized Variables Unstandardized Coefficients B (Constant) Training Recognition Reward . 25 . 266 . 088 . 443 Std. Error . 343 . 085 . 205 . 206 . 243 . 086 . 453 Coefficients important 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 genus Beta value is (. 266). It is shown in the table that recognition also has a positive military group on the job satis faction, 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% strain in dependent variable can be explained by independent variables. On the basis of above analysis, hypotheses 1 and 3 are accepted but conjecture 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 Future 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 correlation with employee job satisfaction which acquirely 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. in the first place 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 willing feel training to be interesting and is according to the need of an employee than employees will actively move in trainings and that training will be much more productive and sour ce of satisfaction for employees. Employees will not sole(prenominal) 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 correlated 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 peter of employee job satisfaction but both these variables act other way somewhat 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 die 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 splendour because past researches show that monitory benefits for employees of public sector organizations of developing countries have great significance towards job satisfaction and this study 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 picture 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, forwarding and performance evalua tion practices can be very fruitful for the managers of public sector organizations and those studies will certainly increase the lucrativeness 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. I. , (2007). humans imaging planning in the banking sector of Bangladesh A comparative study between public & private bank. ledger of Business Administration, 33, (3). 23-42. Ali, R. , & Ahmed, M. S. (2009). 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