Human resource development and organisational performance: Evidence from Pakistan

Abstract

Purpose: This study is an endeavour to find the effect of human resource development on organisational performance. Human resource development is essential for better organisational productivity and effectiveness.

Research purpose: This study specifically investigates the impact of organisational context, resourcing, training and development, skills, attitude and behaviour on organisational performance.

Design/Methodology/Approach: This research study focuses on manufacturing companies in Islamabad and Rawalpindi, Pakistan. A standardised questionnaire with a response rate of 85% was used to gather data from a random sample of 50 manufacturing companies. The structural equation modelling technique was used for data analysis.

Findings: Organisational performance has a positive association with all the independent factors studied in this article: resourcing, training and development, employees’ abilities, employee attitudes, employee behaviour and the organisational context. In addition, the outcomes of this research support the idea that human resource development methods might have a favourable influence on manufacturing business performance. There is no direct correlation between resourcing and organisational performance, although training and development activities are favourably connected with it.

Contribution: For the first time, this research aims to evaluate how human resource management (HRM) influences organisational performance in Pakistan by examining theoretically created pathways between key exogenous and endogenous factors.