Effects of Hr Practices on Organizational Performance
Effects of Human Resource Management Practices on
Organizational Performance – An Empirical Study of Oil and Gas Industry in Pakistan
Muhammad Asif Khan
Assistant Professor, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
(SZABIST) Islamabad, Pakistan
E-mail: dr.asif@szabist-isb.edu.pk
Tel: 92-51-4863363 / 209
Abstract
The study evaluates the effects of human resource management practices on organizational performance in Oil and Gas Industry in Pakistan. A total of 150 managers of 20 randomly selected firms from Oil and Gas Industry responded to self-reported questionnaire that measured five HRM practices and subjective measures of organizational performance.
Factor analysis was performed to identify human resource management practices.
Regression analysis indicated a positive and statistically significant association of these practices with organizational performance. The study provides insight to management to use these practices as strategic tool for superior performance, and add to the limited empirical knowledge that exists in Pakistani context.
Keywords: Human resource management, organizational performance, Oil and gas industry, Pakistan.
1. Introduction
Changing business environment in knowledge economy has made adoption of human resource management (HRM) imperative for competitive advantage. The impact of HRM practices on business performance has been extensively studied in the recent past. These studies have found a positive association between HRM practices and firms’ performance (Becker & Huselid, 1998; Chang & Kuo,
2004; Jarventaus, 2007; Rizov & Croucher, 2008; Sang, 2005). Most of these studies have been undertaken in the United States, and Europe (Boseli et al., 2001; Hoque, 1999) and Asia (Bjo¨rkman, I. and Xiucheng, 2002; Kundu & Malhan, 2007; Ngo et al., 1998). Within Pakistan, limited research has been done to examine the relationship of HRM practices and organizational performance.
The strategic role
Organizational Performance – An Empirical Study of Oil and Gas Industry in Pakistan
Muhammad Asif Khan
Assistant Professor, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
(SZABIST) Islamabad, Pakistan
E-mail: dr.asif@szabist-isb.edu.pk
Tel: 92-51-4863363 / 209
Abstract
The study evaluates the effects of human resource management practices on organizational performance in Oil and Gas Industry in Pakistan. A total of 150 managers of 20 randomly selected firms from Oil and Gas Industry responded to self-reported questionnaire that measured five HRM practices and subjective measures of organizational performance.
Factor analysis was performed to identify human resource management practices.
Regression analysis indicated a positive and statistically significant association of these practices with organizational performance. The study provides insight to management to use these practices as strategic tool for superior performance, and add to the limited empirical knowledge that exists in Pakistani context.
Keywords: Human resource management, organizational performance, Oil and gas industry, Pakistan.
1. Introduction
Changing business environment in knowledge economy has made adoption of human resource management (HRM) imperative for competitive advantage. The impact of HRM practices on business performance has been extensively studied in the recent past. These studies have found a positive association between HRM practices and firms’ performance (Becker & Huselid, 1998; Chang & Kuo,
2004; Jarventaus, 2007; Rizov & Croucher, 2008; Sang, 2005). Most of these studies have been undertaken in the United States, and Europe (Boseli et al., 2001; Hoque, 1999) and Asia (Bjo¨rkman, I. and Xiucheng, 2002; Kundu & Malhan, 2007; Ngo et al., 1998). Within Pakistan, limited research has been done to examine the relationship of HRM practices and organizational performance.
The strategic role