EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON PROJECT SUCCESS IN PAKISTAN ORDNANCE FACTORIES– AN EMPIRICAL EVIDENCE FROM POF WAH

  • Muhammad Sowaleh Mirza
  • Dr. Rafique Ahmed Khan
  • Munaza Bibi
Keywords: Recruitment & Selection, Training &Development, Performance Appraisal, Compensation, Project Success

Abstract

This paper aims at examining the influence of four Human Resource Management (HRM) practices including Recruitment & Selection, Training & Development, Performance Appraisal, and Compensation on project success in the Pakistan Ordnance Industry. The study is explanatory in which the deductive approach was adopted; hypotheses were developed after reviewing relevant literature. Primary data were gathered from 264 respondents using an adapted questionnaire which has been further analyzed by adopting statistical techniques containing Pearson’s Correlation and Regression with the help of Statistical Package for Social Sciences (SPSS). Results of the study indicate that three factors (recruitment & selection, training & development, and performance appraisal) out of the four predictors have a positive and noteworthy influence on project success whereas the impact of the compensation is not substantial. The findings of the study are considered quite useful for the management of POFs in particular and the entire Ordnance Industry in general. The study is equally beneficial for other manufacturing organizations and academia as well.

Author Biographies

Muhammad Sowaleh Mirza

MSPM Student, MS Department, BBS, Bahria University Karachi Campus

Dr. Rafique Ahmed Khan

Corresponding author and Professor at Bahria University Karachi Campus

Munaza Bibi

Lecturer, BS Department, BBS, Bahria University Karachi Campus

References

Abdullah, A. A., & Wan, H. L. (2013). Relationships of non-monetary incentives, job satisfaction and employee job performance. International Review of Management and Business Research, 2(4), 7.

Abdul Quddus. (2015). The impact of talent management on employee engagement: Retention and value addition in achieving organizational performance. International Journal of Core Engineering & Management (IJCEM), 1 (12), 142.

Abuazoom, A. M.I., Hanifi, H. B., & Ahmed, Z. B. (2017). Influence of HRM Practices on Project Performance: Conceptual Framework. International Journal of Academic Research in Business and Social Sciences, 7 (3), 44-57.

Adu-Darkoh. (2014). Employee recruitment and selection practices in the construction industry in Ashanti region. (Thesis Human Resource Management (Hons) submitted at KNUST). Retrieved from http://ir.knust.edu.gh/bitstream/123456789/7651/1/Final%20Thesis%202014_Mavis%20

Aggarwal, A., & Thakur, G. S. M. (2013). Techniques of performance appraisal-A review. International Journal of Engineering and Advanced Technology, 2(3), 617–621.

Ahammad, T. (2017). Personnel management to human resource management (HRM): How HRM functions? Journal of Modern Accounting and Auditing, 13(9), 113-132.

Ahmad, R., & Bujang, S. (2013). Issues and Challenges in the practice of performance appraisal activities in the 21st century. International Journal of Education and Research, 1(4), 1–8.

Ahmed., I. et al. (2010). How organizations evaluate their trainings? An evidence from Pakistani organizations. Interdisciplinary Journal of Contemporary Research in Business, 2 (5), 73-97.

Ahmed, I., & Kolachi, N. A. (2013). Employee payroll and training budget: case study of a non-teaching healthcare organization. Journal of Business & Economics Research (JBER).11(5), 229.

Alipour, M., & Salehi, M. (2009). A Study of on the job training effectiveness: Empirical evidence of Iran. International Journal of Business Management, 4 (11).

Alnaqbi, W. (2011). The relationship between human resource practices and employee retention in public organizations: An exploratory study conducted in the United Arab Emirates. Edith Cowan University. Retrieved from https:// ro.ecu.edu.au/cgi/viewcontent.cgi?article=1424&context=theses

Ansari, N. A., Haq, M. N., & Raza, S. (2017). Investment on HRM and Its Impact on Project Success. Journal of Applied Environmental and Biological Sciences, 8(3)13-20.

Babaita, I. S. (2010). Productivity as a driving force for investment in training and management development in the banking industry. European Journal of Social Sciences, 13.

Baccarini, D. (2011). Project objectives: A confused concept. Conference Paper, 36th Australasian University Building Educators Association (AUBEA) Conference.

Bogatova, M. (2017). Improving recruitment, selection and retention of employees’ case. (Bachelor’s Thesis Business Management). Retrieved from https://pdfs.semanticscholar.org/df15/814968c24cc18983dd2e9185452107c¬c5bd9.pdf

Bajpai, V. (2009). How to retain key employees. Strategy/Retention,Dare.Co.In. Retrieved from http://www.executiveaccess.co.in/wpcontent/uploads/2014/06/news/2009/2009_how_to_retain.pdf

Bekele, A. Z., Shigutu, A. D., & Tensay, A. T. (2014). The Effect of Employees’ Perception of Performance Appraisal on Their Work Outcomes. International Journal of Management and Commerce Innovations, 2(1), 136–173.

Belout, A., & Gauvreau, C. (2004). Factors influencing project success: the impact of human resource management. International journal of project management, 22(1), 1-11.

Bird, D., & Frug, A. (2019). Dynamic Non-monetary Incentives. American Economic Journal: Microeconomics, 11(4), 111-50.

Boxall, P., & Macky, K. (2009). Research and theory on high-performance work systems: progressing the high-involvement stream. Human Resource Management Journal, 19(1), 3–23.

Breaugh, J. (2016). Talent acquisition: A guide to understanding and managing the recruitment process, SHRM Foundation’s Effective Practice Guidelines Series.

Bryman, A. (2012). Social research methods (4th ed). Oxford; New York: Oxford University Press.

Burma, Z. A. (2014). Human resource management and its importance for today’s organizations. International Journal of Education and Social Science, 1(2), 10.

Bustamam, F. L., Teng, S. S., & Abdullah, F. Z. (2014). Reward management and job satisfaction among front-line employees in hotel industry in Malaysia. Procedia - Social and Behavioral Sciences, 144, 392–402.

Caldwell, R. (2008). HR business partner competency models: Re-contextualizing effectiveness. Human Resource Management Journal, 18(3), 275–294.

Çalişkan, E. N. (2010). The impact of strategic human resource management on organizational performance. Journal of Naval Science and Engineering, 6(2), 100–116.

Caruth, G. D. (2013). Demystifying mixed methods research design: A review of the literature: Mevlana International Journal of Education (MIJE), 3(2), 112-122.

Chungyalpa, W. & Karishma, T, (2016). Best practices and emerging trends in recruitment and selection. Journal of Entrepreneurship & Organization Management, 5 (2), 100-173.

Chiang, F. F. T., & Birtch, T. A. (2012). The performance implications of financial and non-financial rewards: An Asian Nordic comparison: The Performance Implications of Rewards. Journal of Management Studies, 49(3), 538–570.

Chughtai, M. W., & Nadeem, Z. I. (2015). Exploring the effects of training and development practices on organization performance: A case study of Pakistan Telecommunication Authority: Asian Journal of Social Sciences and Management Studies, 3 (1), 47-55.

Clarke, P. (2011). Recruitment and selection practices in a selected organization. Journal of Management Practice. 5 (1), 166-177.

Collins, A. & Baccarini, D. (2004). Project success – A survey. Adam Collins Broad Construction Services. Australia. Retrieved from https://espace.curtin.edu. au/bitstream/handle/20.500.11937/28361/20848_downloaded_stream_304. pdf?sequence=2

Cosack, S., Guthridge, M., & Lawson, E. (2010). Retaining key employees in times of change. McKinsey Quarterly, August 2010. Retrieved from: http:// www.lovehr.ca/wp/wp-content/uploads/2018/05/Retaining-Employ¬ees-Through-Changed.

Daoanis, L. E. (2012). Performance appraisal system: It’s implication to employee performance. International Journal of Economics and Management Sciences, 2(03), 55–62.

Dessler, G. (2013). Human resource management (13th ed). Boston: Prentice Hall.

Dobre, O.-I. (2013). Employee motivation and organizational performance. Review of Applied Socio- Economic Research, 5(1), 53–60.

Downes, P. E., & Choi, D. (2014). Employee reactions to pay dispersion: A typology of existing research. Human Resource Management Review, 24(1), 53–66.

Etikan, I. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4.

Fatema, N. (2018). Stimulation of efficient employee performance through human resource management practices: A study on the healthcare sector of Bangladesh. International Journal of Business and Social Research, 8(1), 1–18.

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1–4.

Imran, A., Luqman, M., & Zaki, A. (2016). Impact of Human Capital Practices on Project Success. Kuwait Chapter of Arabian Journal of Business and Management Review, 5 (6).

Inuwa, M. (2016). Job satisfaction and employee performance: An empirical approach. The Millennium University Journal,1(1), 90–103.

Kampkötter, P. (2017). Performance appraisals and job satisfaction. The International Journal of Human Resource Management, 28(5), 750-774.

Kilmartin, L. (2015). 5 Steps to developing an effective training plan: Adobe Systems Incorporated. USA. Retrieved from https://helpx.adobe.com/content/ dam/help/en/document-cloud/Adobe_DC_eSign_Best_Practices_Train¬ing_Plan.PDF

Kirkpatrick, D. L. (2004). Evaluating training programs: The four levels, The ASTDHandbook of training design and delivery, New Delhi: Tata McGraw-Hill.

Kerdpitak, C., & Jermsittiparsert, K. (2019). Human Resources Capabilities and Financial Performance: A Case of Thai Pharmaceutical Firms. Systematic Reviews in Pharmacy, 10(2), 198-207.

Kerdpitak, C., & Jermsittiparsert, K. (2020). The Impact of Human Resource Management Practices on Competitive Advantage: Mediating Role of Employee Engagement in Thailand. Systematic Reviews in Pharmacy, 11(1), 443-452.

Koshy, E. R., & Suguna, P. (2014). Performance appraisal in the contemporary world. International Journal of Advance Research in Computer Science and Management Studies, 2(9), 80–83.

Kumar, Rakesh, Anjum, B., & Sinha, D. A. (2011). Employee performance appraisal in hospital: Who, what, how and when? International Journal of Commerce & Management Studies, 2(5), 142–151.

Lengnick-Hall, M. L., Lengnick-Hall, C. A., Andrade, L. S., & Drake, B. (2009). Strategic human resource management: The evolution of the field. Human Resource Management Review, 19(2), 64–85.

Long, C., Kowang, T., Chin, T., & Hee, O. (2016). Improving organizational performance through training function: A Review. International Business Management, 10(4), 475–478.

Mankikar, S. (2014). A critical study on recruitment and selection with reference to HR consulting firms.Paripex - Indian Journal of Research, 3(3), 108-111.

Mehreza, A., & Alamirib, F. (2019). An assessment of performance appraisal satisfaction levels among physicians: Investigation from the healthcare sector in Qatar: www.GrowingScience.com/msl.

Miller, J. A., & Diana, M. O. (2002). Training needs assessment. SPHR July 2002: SHRM Training and Development Committee. Retrieved from

http://www.scirp.org/(S(lz5mqp453edsnp55rrgjct55))/reference/ReferencesPapers.as-px?ReferenceID=1362833

Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking project management performance and project success. International Journal of Project Management, 32(2), 202-217.

Mohammad, A, H., Osman, D., & Edris, M. H. (2014). The effect of human resources management practices on employee performance. International Journal of Scientific & Technology Research, 3(9), 129–134.

Muda, I., Rafiki, A., & Harahap, M. R. (2014). Factors influencing employees’ performance: A study on the Islamic Banks in Indonesia. International Journal of Business and Social Science, 5(2), 73–80.

Muhammad, I. G., & Abdullah, H. H. (2016). Assessment of organizational performance: Linking the motivational antecedents of empowerment, compensation and organizational commitment, 6(4), 974–983.

Myrna, G. (2008). Recruitment and selection: Hiring the right person-A two-part learning module. Staffing Management Instructor’s Manual, Society for Human Resource Management. Retrieved fromhttps://cdn.ymaws.com/ise.org.uk/resource/resmgr/files/knowledge_reports/Recruitment_and_Selec¬tion_IM.pdf

Niazi, A. S. (2011). Training and development strategy and its role in organizational performance. Journal of Public Administration and Governance, 1 (2).

Osibanjo, O. A., & Adeniji, A. A. (2012). Human resource management: Theory & Practice (1st Ed.) (Vol. 1). Pumark Nigeria Ltd. Retrieved from https://cdnymaws.com/ise.org.uk/resource/resmgr/files/knowledge_reports/Recruit-ment_and_Selection_IM.pdf

Osibanjo, O. A., Adeniji, A. A., Olubusayo, H., & Heirsmac, P. T. (2014). Compensation packages: a strategic tool for employees’ performance and retention. Leonardo Journal of Sciences, (25), 65–84.

Owoyemi, D. O., & George, D. O. (2013). The use performance appraisal system in enhancing employees’ performance in a public sector agency in Nigeria. International Journal of Academic Research in Business and Social Sciences, 3(10), 240–249.

Premalatha, U. M. (2013). Impact of compensation system on employee performance – A study with special reference to service sector. International Journal of Management, IT and Engineering, 3(12), 38–47.

Rafique, S. R., Ali, T., & Imran, A. S. (2017). Factors affecting to employee’s performance. A study of Islamic Banks. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7 (1).

Raineri, A. (2017). Linking human resources practices with performance: The simultaneous mediation of collective affective commitment and human capital. The International Journal of Human Resource Management, 28(22), 3149–3178.

Rubel, M.R.B., & Kee, D. M. H. (2015). Perceived fairness of performance appraisal, promotion opportunity and Nurses turnover intention: The role of organizational commitment. Asian Social Science, 11 (9).

Salas, E., Tannenbaum, S.I., Kraiger, K., & Smith-Jentsch, K. A. (2012). The science of training and development in organizations: What matters in practice. Psychological Science in the Public Interest, 13(2), 74–101.

Sarwar, H., Aftab, J., Sarwar, H., & Shahid, A. (2016). Role of HRM in Project Success of Project Oriented Organizations in Southern Punjab, Pakistan; Entrepreneurship and Innovation Management Journal, 4 (3), 110-121.

Sekaran, U. (2003). Research methods for business: A skill building approach (4 edition). New York: Wiley.

Shaharyar, M., Baloch, M. A., Tariq, M. A., Mushtaq, S., & Mushtaq, A. (2014). Impact of performance appraisal on employee performance. Journal of Resources Development and Management, 3, 22–24.

Shahzadi, I., Javed, A., Pirzada, S. S., Nasreen, S., & Khanam, F. (2014). Impact of employee motivation on employee performance. European Journal of Business and Management, 6(23), 159–166.

Shin, D., & Konrad, A.M. (2017). Causality between high-performance work systems and organizational performance. Journal of Management, 43(4), 973–997.

Nasreem, S., Hassan, M., & Khan, T.A. (2016). Effectiveness of E-Recruitment in small and medium enterprises of it industry of Lahore (Pakistan). Pakistan Economic and Social Review. 54(1), 143-164.

Singh, S. P., & Rana, S. (2013). The impact of performance appraisal on organizational commitment of bank employees: International Journal of Science and Research (IJSR), 2319-7064 Index Copernicus, 6, 14.

Siramiati, N. W., Surachman, Hadiwidjojo, D., & Rohman, F. (2016). Performance-based compensation effect on employee motivation, satisfaction of employees, and performance of employees: Conceptual Frameworks. International Journal of Business, Economics and Law, 11(2), 54-69.

Sippy, N., & Varma, S. (2014). Performance appraisal systems in the hospital sector –A Research based on hospitals in Kerala. International Journal of Business Management & Research, 4(1), 97–106.

Sopiah. (2016). The relationship between performance appraisal and job performance. International Journal of Academic Research in Business and Social Sciences, 6(6), 104–115.

Tabouli, E. M. A., Habtoor, N. A., & Nashief S., M. (2016). The impact of human resources management on employee performance: Organizational commitment mediator variable.Asian Social Science, 12(9), 176.

Ueno, A. (2014). Developing a conceptual model illustrating how HRM Practices Support Each other in Order to Improve Service Quality. Procedia - Social and Behavioral Sciences, 14(8), 24–31.

Vaiman, V., & Vance, C. M. (2008). Smart talent management: Building knowledge assets for competitive advantage. Cheltenham, UK: Edward Elgar Pub.

Vinesh, (2014). Role of training & development in an organizational development. International Journal of Management and International Business Studies, 4(2), 213-220.

Wambua, M. M. (2013). Effects of Human Resource Factors on Project Performance in Nairobi County in Kenya: A Case of Selected Organizations in Westlands. Retrieved from https://pdfs.semanticscholar.org/eed6/b9c9eed74536d454c¬3c51cb43188da8922eb.pdf

Watson, J. M. (2018). Job Embeddedness May Hold the Key to the Retention of Novice Talent in Schools. Educational Leadership and Administration: Teaching and Program Development, 29(1), 26-43.

Yang, L. R., Chen, J. H., Wu, K. S., Huang, D. M., & Cheng, C. H. (2015). A framework for evaluating relationship among HRM practices, project success and organizational benefit. Quality & Quantity, 49(3), 1039-1061.

Published
2020-12-15
How to Cite
Mirza, M., Khan, D. R., & Bibi, M. (2020). EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON PROJECT SUCCESS IN PAKISTAN ORDNANCE FACTORIES– AN EMPIRICAL EVIDENCE FROM POF WAH. Journal of Business Strategies, 14(2), 15-37. Retrieved from http://greenwichjournals.com/index.php/businessstudies/article/view/494