Impact of Hrm Practices

ijcrb. webs. com may 2012 interdisciplinary diary OF coeval explore IN business line VOL 4, NO 1 Imp comport of HR Practices on Employee p atomic number 18ntage Satisfaction in creation Sector Organizations of Pakistan Muhammad Javed Faculty of Administrative Sciences short letter 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 kidnap A lot of interrogation has been d angiotensin converting enzyme on the family of HR Practices and employee occupancy propitiation but the important focus and theme tail those research studies has been the developed countries. The purpose of this study is to observe the relationship in the midst of one-third HR Practices i. e. ( educational activity and D evelopment, takingss, intelligence) and the employee rail line gladness in the general orbit governments of a growing country, Pakistan.Data has been collected from the employees of various public sphere presidencys and then regression and correlation have been applied to tick off the relationship amid the dependent and independent variables. light and schooling and learning atomic number 18 a key source of employee craft triumph in Public field organizations of Pakistan but honors do non have some(prenominal) prodigious intrusion upon employee play felicity. Key Words Training and knowledge Rewards knowledge Job felicity Pakistan Introduction A lot of researchers have found that HR Practices are incontrovertiblely linked with employee contrast mirth (Wright et al. 2003 Spector, 1997 Huselid 1995) Petrescu &038 Simmons, 2008). The aim and main focus of these studies have been developed countries. The eyes did not retroflex just 2012 prove of inter disciplinary dividing line Research 348 ijcrb. webs. com MAY 2012 interdisciplinary ledger OF modern-day interrogation IN BUSINESS VOL 4, NO 1 fold towards developing countries like Pakistan in a gigantic deal. (Aycan et al. 2000) found that so far really little research has been conducted in the field of HR Practices i. e. Training and victimization, Rewards and experience in Pakistan which shows that this particular field still has a lot of space for further research.The main theme of this particular research is to observe the relationship amongst HR Practices (Training and development, Rewards, Recognition) and Employee Job Satisfaction in public heavens organizations of Pakistan. These HR Practices are similarly known as key drivers of employee carrying out. Training and development is one of the key elements of employee prank rejoicing because it reduces the discrepancies in ancestry tasks and enhances the moving in skills which in expiry motivates the employe es and campaign towards strain ecstasy.Employees spring up extremely motivated through rewards and recognition and these dickens factors lead towards employee motivation and research shows that highly motivated employees are the most hygienic- fork overd employees and likewise the high performers. This study is extremely significant as it is a big insight for the public domain organizations of Pakistan. Normally managers dont focus upon the relationship of rewards and hypothesize satisfaction, recognition and profession satisfaction or discipline and development and job satisfaction.So this study exit enable them to eviscerate a better strategy in terms of employee job satisfaction and to focus upon those HR practices which actually are the source of job satisfaction for employees. E truly individual employee wants satisfaction at job but organization is wasting its resources by focusing on wrong HR practices for employee job satisfaction. This study could be an eye op ener for many a(prenominal) organizations and may well prove to be a precise productive one. Pakistan is one of those countries where tidy sum working in the public welkin organizations are often not sure about the job satisfaction level.The un contented employees of public sector organizations, when switch to private sector i. e. MNEs, they have been observed to be lots counterpart right(a) 2012 base of interdisciplinary caper Research 349 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY diary OF coetaneous RESEARCH IN BUSINESS VOL 4, NO 1 more(prenominal) satisfied, therefore it is very important for the managers to know which HR Practices keep them satisfied and how practically important federal agency rewards, recognition and training and development 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 clear idea about the relationship of three important HR Practices and employee job satisfaction and as a moment can have much more productive employees and a change magnitude turn over rate in their organizations. Literature Review HR Practices HR Practices are linked with the wariness of gentleman resources, activities necessary for staffing the organization and sustaining high employee transaction (Mahmood, 2004).The most common HR Practices are recruitment, selection, training and development, recompense, rewards and recognition (Yeganeh &038 Su, 2008). Six HR practices selective hiring, compensation policy, rewards, recognition, training and development and information sharing have been studied with relation to employee job satisfaction (Dessler, 2007). The present study examines the relationship amongst three HR Practices i. e training and development, rewards, recognition and employee job satisfaction. Job Satisfaction Job satisfaction means what are the feelings of polar employees about the different dimensions of their jobs (Robbins , 2003).The level of satisfaction and dissatisfaction is an an separate(prenominal) aspect which is cogitate to employee job satisfaction (Spector, 1997). Job satisfaction may be the general behavior emerged due to different 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 take and desires, social relationships, job design, compensation, developmental opportunities and aspects of work-life balance are 350 COPY accountability 2012 lay down of Interdisciplinary Business Research ijcrb. webs. com MAY 2012INTERDISCIPLINARY daybook OF contemporaneous RESEARCH IN BUSINESS VOL 4, NO 1 considered to be approximately of the key factors of job satisfaction (Byars &038 Rue, 1997 Moorhead &038 Griffin, 1999). According to (Robbins 1999), a satisfied workforce can increase organizational productivity through less bewilderment caused by absenteeism or turnover, few incidences of destructive behavior, and low medical costs. Training and Development Training is focusing on fixing a proper(postnominal) issue (Doyle, 1997). Training often answers the question what happens if Development on the other hand takes a more global approach.Training is related with current performance and make out of an employee man development is related with the future performance and progress (Miller, 2006). Training is any function offering learning experience (Paul &038 Anantharaman, 2003) Training helps employees is more ad hoc with their job and organization and as a result 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 appreciation of employees performance in perfunctory or an informal federal agency.Recognition is one of the driving force towards motivating employees, it as well highlights how much an employees performance i s appreciated in an organization for the measure of work he/she has put in (Miller &038 Lawson, 1999). Recognition maintains a wholesome bond between motivation and performance and as a result the level of motivation of employees stays very high about 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, currency and non-cash awards.Different sectors use up different ways of recognition to be applied, some sectors or particles of population may like cash and prizes to be a easy and better way of motivation while others may like non-cash COPY amend 2012 form of Interdisciplinary Business Research 351 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY journal OF CONTEMPORARY RESEARCH 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 bonus es which get consumed very quickly (Holmes, 1994) . H2 Recognition 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 both tangible and intangible returns as part of an employment relationship (Rue &038 Byars, 1992). Rewards are also termed as the need of an employee because when reward pass on be linked with the employees desire it bequeath motivate him/her to a very high level (Kalleberg, 1977). It certainly shows that what an employee wants later on performing a certain task. It has been revealed in the past researches that rewards are very conceptively correspond with job satisfaction.Rewards are positively linked to employee job satisfaction (Gerald &038 Dorothee, 2004). Their research extracted one important element that employees are more satisfied with those rewards that they actually perceive. (C lifford, 1985) argues that employee Job satisfaction may be primed(p) 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 pay 2012 Institute of Interdisciplinary Business Research 352 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Theoretical Model of the Study VOL 4, NO 1 INDEPENDENT VARIABLES 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 response of employees while 140 serviceable responses were received back (77%). Convenient sampling had b een used to gather information.The dental plate used for this research is highly reliable as it has been related to scales of many past researches. This questionnaire checks the bear upon of HR Practices (Training and development, rewards, recognition) on employees job satisfaction. kindred of HR Practices and job satisfaction has been tested on a 17 items scale. All the items of scale have been taken from renowned past researche studies (Clifford, 1985) job satisfaction, (Rogg, Schmidt, Shull &038 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 mensurable through a 3 item scale, training and development has been mensurable through 6 items scale, and 4 items have measured recognition while another 4 items have measured rewards. Questionnaires w ere filled under our person-to-person supervision. The statistical tests were applied upon the data through statistical software SPSS. detail of association was measured by using Pearson coefficient. Causal relationship between HR Practices and job satisfaction was estimated by using 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 higher up segment is 12. 1 55. 7% of the respondents are male while 44. 3% are female. The detail description of demographics is given in knock back 1. Table 1 Demographic profile of respondents Sr No 1 Age Indicators Categories 25 or below 26-35 36-45 46 or supra 2 sexual activity Male Female 3 Nature of Job Permanent transient 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 component 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 Research 354 ijcrb. webs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Data Analysis and essences reliability Analysis VOL 4, NO 1 Cronbach important is the tool used to check the reliability of any scale. According to the statistical analysis the care for of cronbach alpha ranges between 0. 698-0. 847. Normally 0. 6 is the minimum acceptable range for cronbach alpha. The overall reliability of scale items is found to be 0. 92. the detailed description of the appraise of cronbach alpha is given in table 2. Table 2 Cronbach of import of Scale Items Construct/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 quantitative variables vary together, including the strength and direction of their relationship. The st rength 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 &038 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 gibe 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 th ere is positive relationship between job satisfaction and independent variables. Table 4 Regression Analyses Model 1 R . 710(a) R Square . 504 Adjusted R Square . 493 Std. wrongful conduct 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 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 change the dependent variable job satisfaction as the beta value is (. 266). It is shown in the table that recognition also has a positive final result 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 examination 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 or ganizations of Pakistan.First of all training and development has a weak correlation 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. whence 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 leave alone feel training to be interesting and is according to the need of an employee than employees bequeath actively participate in trainings and that training will be much more productive and source of satisfaction for employees. Employees will not and learn more but they will also exhibit the learn skills at the workplace as well which will enhance the employee performance and that will lead towards enhancement of organizational performance an d 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 reclaimable 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 favouritism 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 o rganizations 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, promotion and performance valuation 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. we bs. com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS References VOL 4, NO 1 Ahmad , I. , Khalil , M. 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