The Impact Of High Performance Work Practices On Job Performance Related Outcomes: An Empirical Analysis

The Impact Of High Performance Work Practices On Job Performance Related Outcomes: An Empirical Analysis

 

 

ABSTRACT

This study is related with the role performed by human resource practicesin making organizational performance better. In this study, it will be researched that how high performance work practices can increase the job performance. There were certain objectives of this research. Firstly, researcher attempts to understand the phenomenon of high performance work practices and its impact on employee work outcome. Secondly, the role of organizational culture in facilitating high performance work practices in organization is analyzed. In this study, the importance of organizational culture and person-organization fit will also be discussed with respect to high performance work practices and job performance. The study will be conducted in Pakistani context. The approaches used in this study to meet the set objectives are positivism research philosophy and quantitative research. The population selected for the study is the workforce of banking sector, employed in Rawalpindi/Islamabad, and primary data collection method is used for the study. The sample size for this research is 200 workers. In order to analyze the data, researcher SPSS version 20. In order to test the data, researcher has used mediation and moderation effects, given by Preacher and Hays Macro (2008). The findings of study indicate that performance evaluation as well as training has an effect on job performance. In addition, employee participation in decision making process as well as staffing has a significant impact on the job performance. Likewise, person-job fit considerablyintervenes the relationship between participation in decision making, performance evaluation, training as well as staffing and job performance. Organizational culture has been demonstrated as the moderator between job performance as well as high performance work system practices.

Keywords: organizational culture, job performance, high performance work system, person-organization fit

 

 

CHAPTER ONE: INTRODUCTION

1.1. Background of Problem

Because of globalization, fluctuatingrequirements of customers and intense competition,the trading activity of business concerns have become more challenging.Corporations are constantlysearching for those methods through which they can improve their complete performance and effectiveness (Topcic et al., 2015). Commonly, human capital, in the shape of workers as well as business function, are considered as main cost of operations which must be reduced, and these are used as a way to increase organizational efficiency. HR packages or high performance work actions have a massiveinfluence in increasing or destroying worker’soutput. Such kind of practices help workers to bring out their significantcapabilities for the growth of company’seffectiveness.

High performance work practices are comprised of number of HR management practices from threegroups i.e. HR practices and reward as well as commitment and high employee involvement (Sung & Ashton, 2005). HPWP is used by business concerns making the outputs of workersbetter and then in result, organizational performance is also improved (Jiang, Lepak, Hu, & Baer, 2012). According to Huselid (1995), corporations take significant steps for improving their human capital and their performance with the help of High Performance Work Practices. Various studies have been conducted forexamining the efficiency of HPWPs (Appelbaum et al, 2000; Chaudhuri, 2009), and findings show that there is a positive influence of such practices on personnel as well as organizational productivity (Huselid, 1995). According to Ding et al., (2004), the major challenge encountered by China in 1997 financialdisaster was used as an opportunity for additional and betterdevelopment via HR practices of corporate governance as well as due to fundamentalreforms of ownership.

On contrary, organizational culture can perform a significant part for organizing, assigning and leveraging resources to attain business objectives through rules, principles, systems of planning as well as management (Barney, 1985; Lado et al., 1992; Merron, 1995). These two resources can be used for attaining aligned aims and goals.

Likewise, with the help of effective management of HR practices, the productivity of business can be improved. In case of developing states like Pakistan, it is highly significant to emphasize on HRM practices for development of companies. Though, HRM also experiencessome critique in developing countries due to its efficiency (Budhwar and Debrah, 2001). It is discussed by different researchers that corporations give low wages, low incentives as well as rewards and investments for workers’ training (Wheeler and Cohen, 1997). Moreover, it has been debated by Budhwar and Debrah (2001) that majority of the developing count

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