Pacific B usiness R eview I nternational
A Refereed Monthly International Journal of Management Indexed With THOMSON REUTERS(ESCI)
|
Dongjun Professor North China Electric Power University Beijing, China |
Muhammad Asim Shahzad Ph.D Scholar North China Electric Power University Beijing, China E-mail:-asimshahzad59@yahoo.com |
Rana Faizan Gul Ph.D Scholar North China Electric Power University Beijing, China |
Khalid Jamil Ph.D Scholar North China Electric Power University Beijing, China |
During the last few years researchers are more focused on HR practices and innovation activities. Scholars argue that HR practices grants to the employee performance. However, almost all the past studies have a little concentration on the casual association among HR practices, knowledge exchange employee performance. This study opens the black box of the relationship between Training & Development, Selection Policy, Rewards and Knowledge Exchange in addition Employee Performance. Primary data was gathered as of 100 respondents of different textile firms of Faisalabad by applying simile random sampling technique. PLS Smart and SPSS software were used or data analysis the finding of current study demonstrates that Training & Development, Reward have a positive and significant impact on the Knowledge Exchange and Employee Performance. It is also found that selection policy have insignificant impact on knowledge exchange and Employee performance. The findings of current study provide several essential inferences for the textile industry to consider future management strategies like how to utilize HR Practices that leads to increase the employee performance. It is suggested that organizations should enhance HR practices that contributes to the employee performance.
Keywords: Training and development, Selection policy, Rewards, Knowledge Exchange, Employee Performance
In organizations, these are the “Human Resource Practices (HR Practices)” which are prime resources to persuade and contour the talent, approach and the behavior of their employees to do accomplish their goals settled by the organizations (“Collins and Clark, 2003; Martin sons, 1995”).Prior studies have already worked intensively to abridge “HR Practices “and executive outcome including flexibility, efficiency and economic performance “(e.g. MacDuffie, 1995; Ichniowski et al.,1997; Youndt et al., 1996; Delery and Doty, 1996; Pfeffer, 1998;Mendelson and Pillai, 1999; Collins and Clark, 2003)”, while, this comprehension is should have been spread out to embrace other variables of organizational performance. Various researches have also highlighted the significance of HR Practices to achieve strategic objectives and also to maintain performance (Lado an Wilson, 1994; Delery and Doty, 1996).
Moreover, the knowledge-based ideas portray organization as sources of information in addition to capabilities (Grant, 1996; Spender, 1996). As indicated by these past examinations identify the learning of human resource as priceless resources for organizations in view of their individuality of “firm-explicit, socially multifaceted, and path-reliant (Collins and Clark, 2003; Wright et al., 2001; Youndt et al., 1996; Lado and Wilson, 1994)”.
Various researchers have confirmed activist association among“HR practices” namely reward practices, encouragement practices, and valuation practices on diverse employee related outcomes, and professed employees performance ( “Marwat, Qureshi, & Ramay, 2007”).
In general, “HR Practices” are term as the executive actions directed to supervise
the
group of “human resources” to make sure appropriate use of the assets to attain
executive goals (“Schuler & Jackson, 1987”). Prior studies have originate experimental
sustain to the control of HR practices on the results of the employees like performance
of job (Tessema & Soeters, 2006), organizational commitment (Meyer & Smith,
2000), job satisfaction (Park, & Gürbüz, 2009), intent to leave (Khera, 2010),
and absenteeism (Gardner et al., 2001).For example, Tessema and Soeters (2006) explained
that there are different types of factors including the rewards, recognition and
compensation for their efforts which increase the satisfaction level of the employees
from those who did not. Well trained employees have clear function and tasks building
are more creative than the less taught employees they are more confused and ambiguity.
Therefore, it is observed that the implementation of favorable HR Practices will
impact the employees’ participation in the organization goals. This involvement
is estimated to realize high level of dedication, and constancy, which encourage
workers to pay out additional effort, and employ in constructive behaviors that
may assist the organization (Karadal, Demirel, & Çuhadar, 2008).Implement a
permutation of “HR practices” seen as involvementof the employees toward the organization
and this make logic of responsibility for the worker to respond in good conduct
toward the business (Wright & Kehoe, 2008).
McElroy (2001) show in his study that high level of compensation indicate that how much an organization value to their employees or how much they care about them, thus increasing their sense of worth. Accordingly, the motive behind this study is to observe the impact of HR Practices and its mediating role of knowledge exchange among HR Practices and Employee performance. The remnants of the study continue as pursues. The following portion will consider the related literature also lays down the hypotheses of present study. Next chapter is the methodology forth research. Afterwards, the present study reveals the results of the observations in achieving the objectives as those enshrined in preceding paragraphs. In final chapter, the study discusses managerial suggestions and emphasizes prospect research guidelines. To discover the Impact of HR practices on employee performance in addition to examine the impact of knowledge exchange on employee performance. Knowledge exchange mediates the relationship amongst HR practices and employee performance.
Satisfying a well-designed structure for HR practices total effect on the knowledge exchange and also has a strike on firm’s performance. This analysis organizations linked to it within the significance of the HR practices and it craves to be as intimate will grant. HR practices, the most significant in the employment relationship purposed by difficult element. The outcomes of this examination would go far to make mindfulness about the shortcomings in the execution of this framework and the proposed path onward. It thus have confidence in that this research will grant productively towards expanding firms and also the workers comprehension as well as acknowledgement of the impact of HR practices on organization performance and consequently the corporate execution in Textile Sector”. The present scenario, The Essential source of obtaining competitive advantage is Knowledge Exchange and is presently one of the main issues of discussion in the management literature. The importance of Knowledge exchange Denotes To the probability enhance the firm level of Effectiveness and efficiency. Present study was contacted to define the HR practices have an Impact on employee performance which Practices can Enhance Employee performance
2.1 The Human Resource Management strategic views
The HRM strategic view approach is different from the previous studies in HR strategic studies examines the impact of HR practices on the results of the organizational level of exploration like firm efficiency and future progression (Becker & Huselid, 1998; write et al., 2001). Human Resource practice do effort to stimulate workers to add to the extraordinary state of mandatory behavior by line up the interest of the organizations as well the employees to develop the high level of employees to employees affiliation (Arthur, 1992; Tusi et al., 1997).
“Practices that a firm may embrace to make this sort of business affiliation incorporate recruitment and selection to make progression prospects for workers over internal labor markets in addition to classifying external competitors who are appropriate to the organization (Delery & Doty 1996; Tsui et al., 1997)”.
2.2 HR Practices
HR practices affect the training and development, selection process and reward also incentives that facilitate or put a ceiling on knowledge exchange and employee performance. Human resource selection policy, training & development or reward creates a great impact on the collaboration as well on the employee performance and knowledge exchange.
Human resource practices promote privilege between employee performances by implement group based incentives and reward or on condition that Training and Development prospect for better statement and communication through the exchange the knowledge. Employee performance increase by the HR practices such as job rotation, team-based work and internal promotion by the chance for such experience. Human resource practices to the norm for teamwork between knowledge exchange base employees.HR practices support and facilitate language and share code among knowledge base workers. HR practices increase the degree of understanding among employee groups such as a firm deal in workers, rising persons will in gneiss to expand firm detailed skill, investment in training and development and internal promotion opportunities (MacDuffie 1995).HR practices also focus on the selection process reward and incentives or training and development.
2.3 Reward and Incentives
Representative Honor process may obtain difficult part. The firm value that a moral player, he may well work is working to rise appears. Indeed taken by their representatives and representatives from the population considering Attitude of their profession knows Association of Wholesale salary and safe and combination like the Links of Motor big piece any purpose with its commissioner (Akerale,1991) also blame efficiency of the workers for a very rare variables provide suitable discontent pay to earnest labor (Mark and passage 2001) Remark the honest accomplishment of connection from worker as of labor readiness to apply their new things and through which means the administrator bigger the productive agent contributions and reward enhances association. The linked can be very gainful benefit to heavy productivity in firm and associations are not want to operate the induce of workers (Hurtreatal 1990; Entwisted 1987) productively in the worker process If more than ten pioneers reward associations as delegate of processed outcome.
Remarkable animated workers made their priorities for the firm and its locations (Rizal and Ali, 2010) the society leads. These research aspect different references for organizations to perform representative measure price. (Hasiban, 2003) introduced the completion of such a delegate, which means that the labor is hanging marks that the occupancy level as completion impact. Ending the job means a discount of the association and encourage (Hasbuan, 2003) .Details are 5 components to confirm that the arguments ending position and the completion of brain research variables and social element linked to the old money work positions. Experience reward the commitment to a pay study has demonstrated the most variable and difficult. The main incentive rewards for the brilliant completion of the shadow that can be paid to the face and study the impact of old garden (1993 Olce; 1997 olce).
Development and implementation of the bargain and price cress earnest efforts to make new thinking for paying labor to finish the most heavy component of the Professional administrator concerning cash Dewhurst et al (2010) Relationship present associated with fulfillment the rewards more rewarding , fulfilling and business associations and nation behavior (jahangar,2006). Dee's exhibition (1994) Impress Representative performance consequences to motivate the fulfillment of the association which can be increases to the confession say. Agreement, similarity, temperament, and learning as well excited abytsur, inspiration is an important piece of understanding behavior. Luthans (1998) Motivation and nature of the agency with other procedures in agreement with colleagues and with the managements, conduct basic explanation should not be accept as attests. All behaviors that can be seen, and the arguments for the behavior should not to be matched with. While understanding the focal portion of the vision, Evans (1998) hierarchical conducts numerous fields while holding the assumptions that it is major to re-emphasize that states.
“Reward is the essential component to eradicate worker for compensating their finest hard work to produce the novelty as well as creative ideas in order to increase the company’s financial also non-financial performance. Dewhurst (2010) association of the manager-supervisor reward control positivity interrelated with employee performance additional efficiency, contentment and turnover as well as OCB (simon,1976;more&hunt 1980;jahangar,2006).Dee prose (1994)states that enthusiasm of employee efficiency can increase effective acknowledgement which deliver the result advance the performance of firm. Worker motives due to job assessment and performance is the second attire of the firm (abacus et al 2003). The organizational ability of the firm to satisfied the necessities of workers as their performance 1960).Within organizational commitment and their work plays an essential part (eisenbegal 1992)”.
H5: Reward has impact on employee performance
H6: Reward has impact on Knowledge Exchange.
H7: Knowledge exchange mediates the relationship between reward and employee performance.
2.4 Training and development
Training and development has the distinct role in organization goal and performance by in cooperating the achievements and welfare of business at the personnel side (Stone RJ, 2002).Today’s the most important factor is organization performance worldwide is training because training increase the organization and employee’s efficiency and effectiveness according to firm requirements. Importantly employee’s capabilities to enhance by the training and development because the job experience skills and competences have increase better performance in firms (Fakhar Ul Afaq,Anwar Khan, 2001).Employee performance Depend on the human resource capital of firm because they plays a significant part in employee performance organization performance in addition to its growth. So employee performance improve by giving the training to employees of the organization according to the job requirement, the motive behind this study is to show the influence of training and development on the performance of the firm .The researcher said that Training and development higher employee performance in different activities and also important to increase the organization performance (Iftikhar Ahmad,2009).
In some other research author said that most important factor to building block the employees performance boost the performance of our all firms(Abbas, 2010).Employee performance depend on many factors like Knowledge, Management, Job Satisfaction and skill base on the relationship between performance and training development(Chrisamisano,2010).The main source of organization is human resource and the back bone of every organization because through this to increase the employee performance like Training and development flexible scheduling, Multidimensional construct aim to achieve performance and strategic goal etc (Mwita et al,2000).
Ashkanasy et al. (2000) and Smith et al. (2005) conclude that training and development have positive and significant impact on the knowledge exchange.
H1: Training and development have significant impact on employee performance.
H2: Training and development have significant impact on Knowledge.
H3: Knowledge exchange mediates the relationship between Training development and employee performance.
2.5 Selection policy
“As defined in this article, the selection benchmarks are applied at the basis and/or potentially the item level to construct the according to the firm requirement going ahead. No material or bibliographic records formerly in print will be excluded as an outcome of this or upcoming keep informed to the selection policy”.
H3: Selection policy has impact on employee performance.
H4: Selection policy has impact on Knowledge Exchange.
H5: Knowledge Exchange mediates the relationship Between Selection policy and employee performance”.
2.6 Knowledge Exchange
Knowledge exchange is possibility of exchange of ideas and information because social environment of firms improve trustworthy actor attitude to an existing interchange will move towards late respond (Coleman, 1990).Firm growth increase by the switch over of information of precious thoughts among middle familiarity employees that will in spin lead to better, about switching ideas as well as information with others, employee performance will endure. Nahapiet and Ghoshal (1998) recommended that knowledge exchange and combination process drives that collaboration amongst workers is the vital facet of employee performance. Therefore a strong knowledge exchange between workers will positively effect and increase the employee performance and exchange the unique ideas and valuable information among them.
Although the likelihood that exchange information and cooperation may increase language facilitate, share codes and will take place access integration and information of exchange information. like, likelihood of information exchange and differences in language reduce between individuals (Boland et al, 1998).More prominently degree of share knowledge is important for those to understand and comprehend to add new awareness with other employees that acquire for swap information(Hansen,2002).A knowledge exchange provides a common base of understanding through language and share codes which individuals and background with disparate experience can integrate and transfer new ideas or information(Szulanski,1996).
Therefore knowledge exchange and combination among knowledge workers provide a greater level of language, share code and high facilitating and positively affect the employee performance.
H7: Knowledge Exchange has impact on employee performance.
2.7 Employee Performance
Employee performance is important for the developing organizational culture and employee based capabilities rather, these Practices lead to high performance (vowen and ostroff, 2004; Collins and Clark, 2003). Basically all HR practices influence employee performance and knowledge exchange also amalgamation among knowledge workers probably to upset employee performance in other ways as well (Doty, 1996). For instance, Huselid (1995) argue that higher level of human capital and employees motivation attracting or developing HR practices that affect employee performance because we predicted that knowledge exchange partially mediate the employee performance. Employee performance measured by the different variable basis like revenue, one year sales growth from services and new product base because these are good indicator to create new knowledge and extend the employee performances.
This study on the employee performance used a descriptive survey. This survey obtains the detailed information that describes the related aspect. This is a descriptive study because we are using questionnaire method; the main purpose is to find the impact of HR practices on employee performance. For this purpose the sample was implemented on the textile sector of Pakistan.
Primary data was used and also collected through the questionnaire quantity of 100.The responded were the manger and employees.
Questionnaire is consisting of 3 pages in length. First page were represent the
Demographic Variables like Gender, Age, Marital Status, Qualification, year of Experiences.
Second page were represented the questions linked with the independent variables
and mediator. Questionnaire consists of total 36 questions, in which seven questions
linked with training and development, four question for reward and incentive, four
questions represented social policy, and Eleven questions linked with Reward, Eight
questions for Knowledge Exchange and six Questions linked with Employee Performance.
Research Design
In This research we use Quantitative approach, Quantitative Research system is instrument that used to investigate and study the issues for research. The Quantitative Research Method Use to find the objectivity maximization Generalization Results and Characteristics include in prediction. We are using primary source to collect data directly from the respondents. The primary data off dependent, Independent, and Mediator have been collected from the workers of the textile sector of Faisalabad. The method of Quantitative research is used the Dependent and in dependent variables to identify the factors effecting the employee performance in the textile sector.
Population of Research
The population of this research consists on the lower and top level employees. Data performing Their Duties in the textile sector of Pakistan.
Sample Size
In this research study we have use convenience sampling technique together data. Approximately 120 Questionnaires were distributed to employees from whom 100 Questioners were correctly filled by the respondent and found appropriate for our results.
Data Collection Method
Data collection method for this study keeping in view primary data variables are included in this study so they convenient sampling has been used the questioners was distributed to employees without any discrimination as Gender Age and Qualification. These Questioners were distributive to the respondent through personal visits of textile industries.
Instruments
The current research Adapt the approach for the selection of the questions and the preparation of questioner. The questioner were use in the study consist of two sections the first part of questioner examine the Respondent Biographical characteristic. Such as Gender, Age, Qualification and working Experience. The second section includes the questions Related to their research Variables such as Training and development, Selection policy, Rewards, Knowledge Exchange and Employee Performance.
Primary Data:
For Data Collection a structured Questioner Draw on 7 point Likert scale Ranging From “7” Indicating Strongly Agree where’s the “1” Indicates Strongly Disagree. In this study Primary Data has been collected by survey technique.
Questionnaire Development
All the questions off the questioner are adopted from the previous study it is also make sure the questions That are selected are Clearly define the variables . These Questions are selected on the biases of their previous good reliability which is (.87)The questioner of the study consist of 36 Questions From which 7 Questions are Training and Development,4 Questions are from Selection policy, 11 questions are from Reward, 8 Questions are of Knowledge Exchange and 6 Questions Are of Employee Performance.
Measures
All the related scale which was used in this study was obtained from the former researches in which there reliability and validity were tested. In the present study each scale were used and measured to determine if it is suitable for Employee performance. Then selection of the proper items and changes it if there is need of changing. Then the experimental study has been conducted to check the reliability and validity although it is already done by the previous researches. It yields the average reliability coefficient Cronbach alpha.
Following applicable statistical tools was used for data analysis. According to the requirements of the theoretical model the test of measuring the association of variables is Pearson correlation, for the reason that it tests the “interdependency” of the variables talk over in the model.
To measure the strength of independent variable on dependent variables the linear regression is used because there is more than one independent variable exists in the model. It comprises the findings in respect of demographic information of respondents, training & development, selection policy, reward & incentives, knowledge exchange and employee performance. Analysis comprises of two parts, first part refer to demographic information of the respondents while second part comprises analysis of respondents’ answers to the questions. Microsoft Excel 2016 and IBM Statistical Package for Social Sciences (SPSS 23.0) were used to calculate descriptive statistics. SMARTPLS 3.0 was used for other analysis. Foremost emphasis of the study was to discover solutions to the research inquiries of the study.
Result
Existing study began with the intention to discover the factors that effect on the employee performance in the textile sector of Faisalabad to explore how these factors are inter related with each other data has been collected from 100 employees of Textile sector. After collecting primary data it has been analyses by using SPSS and its extended version smart PLS.
Descriptive analysis
Total 100 questioner were collected and entered in the SPSS to perform The descriptive Analysis in this analysis Demographic Characteristic of respondents are Calculated which include the respondent gender, Age, Education and working experience.
Table I.
|
Statistics |
|||||
|
Gender |
Age |
Qualification |
Experience |
||
|
N |
Valid |
100 |
100 |
100 |
100 |
|
Missing |
0 |
0 |
0 |
0 |
|
Respondent Gender
The Table shows the Respondent Frequency and percentage of their Gender. Bar Chart is used to interpret the data. There were 100 Respondents In the survey as shown in the table. Male respondents are more than the female. The percentage of the male participants was 84% and Female are 16%.
Table II: Respondent Gender:
|
Gender |
|||||
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Valid |
Female |
16 |
16.0 |
16.0 |
16.0 |
|
Male |
84 |
84.0 |
84.0 |
100.0 |
|
|
Total |
100 |
100.0 |
100.0 |
||
Respondent Age
Table show the frequency and percentage according to their age Based on the data gathered. Larger Proportion of the respondents lies in Age between 35 to 45 Years. The second highest group was 45 to 55%.
Table II: Respondent Age:
|
Age |
|||||
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Valid |
25-35 |
18 |
18.0 |
18.0 |
18.0 |
|
35-45 |
46 |
46.0 |
46.0 |
64.0 |
|
|
45-55 |
32 |
32.0 |
32.0 |
96.0 |
|
|
above 50 |
4 |
4.0 |
4.0 |
100.0 |
|
|
Total |
100 |
100.0 |
100.0 |
||
Respondent Qualification
Table show the Frequency of Respondents and the percentage according to their qualification. Percentage of respondent in term of their qualification was 42% Were Masters, 29% were Bachelors and 21% were intermediate.
Table IV: Respondent Qualification:
|
Qualification of the respondent. |
|||||
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Valid |
Master |
42 |
42.0 |
42.0 |
42.0 |
|
Bachelor |
29 |
29.0 |
29.0 |
71.0 |
|
|
Intermediate |
21 |
21.0 |
21.0 |
92.0 |
|
|
Other |
8 |
8.0 |
8.0 |
100.0 |
|
|
Total |
100 |
100.0 |
100.0 |
||
Respondent Experience
Table shoes that employees working experience 40% were 5or above year working experience. 30% were 3 to 4 year Experience. 22% were 2 to 3 year Experience.
Table V: Respondent Working Experience
|
Working experience |
|||||
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Valid |
< 1 year |
1 |
1.0 |
1.0 |
1.0 |
|
1- 2 years |
7 |
7.0 |
7.0 |
8.0 |
|
|
2-3 years |
22 |
22.0 |
22.0 |
30.0 |
|
|
3-4 years |
30 |
30.0 |
30.0 |
60.0 |
|
|
5 or above |
40 |
40.0 |
40.0 |
100.0 |
|
|
Total |
100 |
100.0 |
100.0 |
||
Model assessment
The foremost aim of this research is to predict the relationship amongst the HR practices on the employee performance, so Partial Least squares (PLS) is used, Simultaneously, all hypothesis were tested by using smart (PLS), PLS is basically causal modeling approach that involve two phases i.e.(Evaluation of the measurement model and evaluation of the structural model). The measurement models determine the relationship among constructed in addition to related items, while the Structural model outlines the relationship between Exogenous and endogenous constructs,(Hair et al., 2014).
Assessment of measurement model
Evaluation of the measurement model has been constructed for the Reliability and validity. The Reliability of the model has been determined on the basis of factor lording and composite reliability. Table shows that all factor loading and composite reliability That Demonstrate the value above than 0.7 and 0.70 respectively conformed the model reliability at items and construct level. The validity of the model has been assessed on the bases of average variance extracted (AVE) and composite Reliability. The Table below shows the evaluation off the measurement model which include AVE and CR for the Constructs Exceed the minimum accept able value of 0.5 to 0.7 . Reliability is Of an instrument is generally measured by using cronbatch alpha which is based on external consistency. Items are set to be reliable if there value of cronbatch alpha is acceded 0.5(Kim et al., 2004) Table shows all the values of cronbatch alpha which are greater than 0.5. It means all variables are reliable.
Table VI: Evaluation of Measurement Model
|
First order construct |
Item |
Loading |
AVE |
Composite Reliability |
Cronbach's alpha |
|
T&D |
TAD4.4 |
0.734 |
0.612 |
0.863 |
0.789 |
|
|
TAD5.5 |
0.789 |
|||
|
|
TAD6.6 |
0.788 |
|||
|
|
TAD7.7 |
0.817 |
|||
|
SP |
SP2.9 |
0.842 |
0.66 |
0.853 |
0.743 |
|
|
SP3.10 |
0.766 |
|||
|
|
SP4.11 |
0.827 |
|||
|
RD |
R10.21 |
0.752 |
0.508 |
0.861 |
0.808 |
|
|
R11.22 |
0.742 |
|||
|
|
R3.14 |
0.67 |
|||
|
|
R4.15 |
0.729 |
|||
|
|
R8.19 |
0.754 |
|||
|
|
R9.20 |
0.621 |
|||
|
KE |
KE1.23 |
0.766 |
0.588 |
0.85 |
0.763 |
|
|
KE2.24 |
0.846 |
|||
|
|
KE3.25 |
0.792 |
|||
|
|
KE4.26 |
0.648 |
|||
|
EP |
FP4.34 |
0.755 |
0.645 |
0.843 |
0.747 |
|
|
FP5.35 |
0.717 |
|||
|
|
FP6.36 |
0.921 |
|
Note: Item T&D ,1,2,3.SP,8.R,12,13,16,17,18,21. KE, 27,28,29,30 and FP 31, 32, 33 were Deleted To improve Training and development, selection policy, Knowledge exchange, Employee performance. |
Discrimination validity is assessed by using Criteria of (Fornell And larcker 1981)In which the square root of the AVE of a has been to be greater than the correlation between other constructed. In rows and columns Table shows this condition is satisfied which shows the validity at construct level.
Table VII: Discriminate Validity at Constant Level
|
Construct |
FP |
KE |
RD |
SP |
T&D |
|
EP |
0.803 |
||||
|
KE |
0.337 |
0.767 |
|||
|
RD |
0.42 |
0.548 |
0.713 |
||
|
SP |
0.246 |
0.745 |
0.441 |
0.812 |
|
|
T&D |
0.285 |
0.547 |
0.605 |
0.584 |
0.783 |
|
NOTE: Square root of the average variance Extracted in the Diagonals and remaining of the entries are correlation values. EP Employee Performance, KE Knowledge Exchange, R Reward, SP Selection Policy, TD Training and development. |
Evaluation of structural model
The analytical inspiration of structure model is decided is decided on the base of the significance level on the path coefficient and explain the value of R Square (HAIR et al.,2014) PLS Algorithm and Bootstrapping procedure is apply to generate the past coefficient . The R square of values is listed in the table that is 0.10, and 0.60 Exciding from 0.1.The Value and the significance of the individual Path coefficient (B) are assessed using bootstrapping to provide an empirical validation of theoretically assumed relationship between variable( Hensler et al. 2009) The Hypothesis were tested For Relationship between Training Development, Selection Policy, Rewards, Mediates the Knowledge Exchange On employee performance.(H1,H2,H3,H7)All Hypothesis Are sported as well. H1 is positively and significantly influence on employee performance.(B = 0358,t =3.659, P=<0) and H3 Is positively significantly influence on Employee performance. (B =0.216, t= 2.031, p = 0.043) H2 is insignificant Influence on Knowledge Exchange. (B =0045,t = 0207, P= 0.836), H1 is positively significantly influence on knowledge exchange.
|
Hypothesis |
Relationship |
Original Sample (O) |
Sample Mean (M) |
Standard Deviation |
T-Statistics |
P-Values |
|
H7 |
KE -> FP_ |
0.358 |
0.4 |
0.098 |
3.659 |
0 |
|
H3 |
RD -> KE |
0.216 |
0.23 |
0.106 |
2.031 |
0.043 |
|
H2 |
SP -> KE |
0.045 |
0.004 |
0.216 |
0.207 |
0.836 |
|
H1 |
T&D -> KE |
0.587 |
0.627 |
0.215 |
2.73 |
0.007 |
Note: FP Employee performance, KE Knowledge Exchange, R Reward, SP Selection Policy, TD Training and development.
4.3.4DirectIndirect Total Effects- Mediation:
|
Hypothesis |
Relationship |
Direct Effects |
Indirect Effects |
Total Effect |
Result |
|
H8 |
T&D->KE->EP |
β=-0.358t=2.102 p-value= 0.036 |
β=0.21 t=2.102 p-value = 0.036 |
β=0.21 t=2.102 p-value = 0.036 |
Supported Full Mediation |
|
H9 |
SP->KE -> EP |
t=7.520 p-value= 0.000 |
β=0.016 T=0.182 P-value=0.856 |
β=0.016 t=0.182 p-value = 0.856 |
Supported Partial Mediation |
|
H10 |
RS->KE-> EP |
β=0.358t=2.102 p-value= 0.036 |
β=0.077 T=1.429 P-value=0.154 |
β= 0.077 t= 1.429 p-value = 0.154 |
Not Supported |
It is Hypothesis that the Training And Development Has effect on employee performance and knowledge exchange mediates the relationship between T&D, Employee performance (H8&H10).
According to Karner et al., (2013) Mediation signifies a circumstances in which a mediator variable to some extent absorbs the effect of an exogenous construct on an endogenous constructs in the PLS path Model. Mediation denotes a condition in which a mediating variable to some degree absorbs the impact of HR Practices on employee performance Variable in the PLS. H8 knowledge exchange significantly mediates the relationship among training & development and employee performance β=0.21, t=2.102, p-value = 0.036. H9 knowledge exchange partially mediates the relationship among selection policy and employee performance β=0.016, t=0.182, p-value = 0.85. H10 knowledge exchange not support the relationship between reward system and employee performance β= 0.077, t= 1.429, p-value = 0.154.
The effect of HR Practices on employee performance is studied the finding of this study shows that HR practices contribute 60% to textile sector employees. The current study findings show that HR Practices shows that positive and significant impact on Employee performance. The above results show that The employee performance has increased with effective HR practices. The scope of HR Practices on the employees has included Training and Development, Selection policy, Rewards. Some other studies conducted related to the discussed Hypothesis. These studies also shows significant impact of HR practices on employee performance. A number of scholars have confirmed activist association among “HR practices” namely reward practices, encouragement practices, and valuation practices on diverse employee related outcomes, and professed employees performance (Marwat, Qureshi, & Ramay, 2007).
The results of this study shows significant value of knowledge exchange and employee performance which is less than 0.05. Reward has significant impact on Knowledge Exchange. The P value shows 0.043 which is less than 0.05. Mark and passage (2001) also show a significant impact of reward on knowledge exchange.
According to these results The Knowledge Exchange Mediates the relationship Between Reward and Employee performance. Reward system does not show ANY Direct Relation with Employee performance. On the other side Training and development shows a direct and significant impact on the employee performance p value shows the amount of 0.036which shows a significant impact. Thus the Training and development as well shows positive and significant impact on the knowledge exchange the p value is 0.007. According to this result Training and Development has Direct and mediating effect of Knowledge exchange on the employee performance.
The Selection policy does not show any significant relationship with the employee performance. The P value shows 0.85 Value which is insignificant so the Hypothesis is rejected. Human Resource practice do effort to stimulate workers to provide to the high level of mandatory behavior by align the interest of the organizations as well the employees to develop the high level of employees to employees relationship(Arthur,1992; Tusi et al., 1997).
This study was about the HR practices impact on the employee performance of textile sector the efficiency and effectiveness in the employee performance leads toward progress in the overall in the overall Textile sector. In this study we highlight the period contribution which influences the employee performance. Especially we focus on the HR Practices, Training and development selection policy as well as Rewards. That contributes to increase the employee performance and Productivity of the firm. Research Results shows that Reward and Training &development have a significant impact on the employee performance in the textile sector of Faisalabad Pakistan. According to these results the knowledge exchange mediates the relationship between reward and employee performance. Reward system does not show any direct relation with employee performance. On the other side Training and development shows a direct and significant impact on the employee performance p value shows the amount of 0.036which shows a significant impact. Thus the Training and development as well shows positive and significant impact on the knowledge exchange the p value is 0.007. According to the result Training and Development has direct and mediating effect of Knowledge exchange on the employee performance. Existing study gives proof on the part of the firm, HR Practices that leads to knowledge creation that result in increase in the employee performance. We discover that our measures of HR Practices were significantly associated with the knowledge exchange that leads to the superior employee performance.
Managerial Implications
Our findings suggest that firms should carefully select and implement the HR Practices. As these practices may outline the organizations social frameworks which affect the firm aptitude that creates new learning for higher employee performance as well as progression.
Recommendation
From the finding and conclusion above mentioned it is recommended that the HR Practices leads to increase the firm productivity which is positively correlated with the organization performance. Therefore, the firm with active human resource department can plan and execute an effective training and development programs as well an effective reward system can increase the employees abilities and skills that in long term effect on the greater employee performance.
Limitations of the study
As many of the passion to research and was employed as a very difficult, some barriers were encountered. During the process of data collection encountered a main issue was the less willingness of replier to answer the questionnaire. Other limitations are like limited time was available to conduct this study there are also some geographical limitations like we only consider Faisalabad textile industries for the purpose of data collection.
The study can be investigated by including the Training and development, Selection Policy, Rewards, Employee performance. Due to the shortage of the time study has consist of 100 Questionnaires which is in other case if we done it on more people to formulate the study more difficult and diplomatic.
Findings
The end result of the correlation showed that it is a positive and significant relationship among depended variable and independent variable. Training and development, Rewards has more positive impact on employee performance as compare to selection policy. The finding of this research demonstrates that there is a significant relation and impact of Training and development, Reward, Knowledge Exchange and Employee performance and selection policy have no impact on Knowledge exchange and employee performance According to the regression Analysis. The finding of this research shows that H8 And H9n are accepted but Hypothesis H10 not supported which is selection policy whose impact is on Knowledge Exchange and employee performance.
Arthur, J. B. (1994). Effects of human resource systems on manufacturing performance and turnover. Academy of Management journal , 37 (3), 670-687.
Ahmad, I., Abdullah, A. B., & Alghamdi, A. S. (2009, October). Application of artificial neural network in detection of DOS attacks. In Proceedings of the 2nd international conference on Security of information and networks (pp. 229-234). ACM.
Amisano, C. (2010). eHow contributer “Relationship between training and employee performance”..
Aubert, B., Bazan, A., Boucham, A., Boutigny, D., De Bonis, I., Favier, J., ... & Lees, J. P. (2002). The BABAR detector. Nuclear Instruments and Methods in Physics Research Section A: Accelerators, Spectrometers, Detectors and Associated Equipment , 479 (1), 1-116.
Collins, Christopher J., and Kevin D. Clark. "Strategic human resource practices, top management team social networks, and employee performance: The role of human resource practices in creating organizational competitive advantage." Academy of management Journal 46.6 (2003): 740-751.
Delaney, John T., and Mark A. Huselid. "The impact of human resource management practices on perceptions of organizational performance." Academy of Management journal 39.4 (1996): 949-969.
Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurationally performance predictions. Academy of management Journal , 39 (4), 802-835.
Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurationally performance predictions. Academy of management Journal , 39 (4), 802-835.
Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurationally performance predictions. Academy of management Journal , 39 (4), 802-835.
Dyer, L., & Reeves, T. (1995). Human resource strategies and employee performance: what do we know and where do we need to go?. International Journal of human resource management , 6 (3), 656-670.
Dyer, L., & Reeves, T. (1995). Human resource strategies and employee performance: what do we know and where do we need to go?. International Journal of human resource management , 6 (3), 656-670.
Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science , 5 (2).
Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science , 5 (2).
Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science , 5 (2).
Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science , 5 (2).
Hasibuan, M. S. (2003). Organisasi dan motivasi. Jakarta: Bumi Aksara .
Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: A competency-based perspective. Academy of management review , 19 (4), 699-727.
Mumtaz, Adeel, et al. "Impact of HR practices on job satisfaction of university teacher: evidence from universities in Pakistan." Industrial Engineering Letters 1.3 (2012): 10-17
Newell, A., & Simon, H. A. (1976). Computer science as empirical inquiry: Symbols and search. Communications of the ACM , 19 (3), 113-126.
Schramm, R. D., Briggs, M. B., & Reeves, J. J. (1994). Spontaneous and induced ovulation in the lion (Panthera leo). Zoo Biology , 13 (4), 301-307.
Si, Z., Cayabyab, M., & Sodroski, J. (2001). Envelope glycoprotein determinants of neutralization resistance in a simian-human immunodeficiency virus (SHIV-HXBc2P 3.2) derived by passage in monkeys. Journal of virology , 75 (9), 4208-4218.
Simon, C., Afzelius, M., Appel, J., de La Giroday, A. B., Dewhurst, S. J., Gisin, N., ... & Nunn, J. (2010). Quantum memories. The European Physical Journal D , 58 (1), 1-22.
Sled, J. G., Zijdenbos, A. P., & Evans, A. C. (1998). A nonparametric method for automatic correction of intensity nonuniformity in MRI data. IEEE transactions on medical imaging , 17 (1), 87-97.
Stajkovic, A. D., & Luthans, F. (1998). Self-efficacy and work-related performance: A meta-analysis. Psychological bulletin , 124 (2), 240.
Stajkovic, A. D., & Luthans, F. (1998). Social cognitive theory and self-efficacy: Going beyond traditional motivational and behavioral approaches. Organizational dynamics , 26 (4), 62-74. Zia Ur Rehman, Muhammad, Muhammad Riaz Khan, and Javed Ali Lashari. "Effect of Job Rewards on Job Satisfaction, Moderating Role of Age Differences: Empirical Evidence from Pakistan." African journal of business management 4.6 (2010): 1131-1139.
Takahashi, M., Kubista, M., & Nordén, B. (1987). Linear dichroism study of RecA-DNA complexes. Structural evidence and binding stoichiometries. Journal of Biological Chemistry , 262 (17), 8109-8111.
Tsui, A. S., Pearce, J. L., Porter, L. W., & Tripoli, A. M. (1997). Alternative approaches to the employee-organization relationship: Does investment in employees pay off?. Academy of Management journal , 40 (5), 1089-1121.
Wisnoe, W., Kuntjoro, W., Mohamad, F., Nasir, R. E. M., Reduan, N. F., & Ali, Z. (2010). Experimental results analysis for UiTM BWB baseline-I and baseline-II UAV running at 0.1 mach number. International Journal of Mechanics , 4 (2), 23-32.