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.
human resource developmentorganisational performancemanufacturing companiesPakistanstructural equation modellingIntroduction
Using human resource (HR) practices as vital strategic tools, companies may enhance employee morale and productivity by fostering positive behaviour and maximising workers’ existing knowledge, skills and attitudes and talents (Bartlett, 2001; Bates & Chen, 2004; Katou, 2009). A consequence of this effect is that human resource development (HRD) is now seen as the most basic and essential function in the human resources system (Dhamodharan, Daniel, & Ambuli, 2010; Gubbins, Garavan, Hogan, & Woodlock 2006). According to Lopez-Cabrales and Valle-Cabrera (2020) and Evans and Davis (2015), HRD programmes have an impact on company performance by creating an effective and productive staff that is able to meet the company’s aims and objectives. Every business must invest in employee development and training if it is to achieve greater results (Barton & Delbridge, 2004; Degraft-Otoo, 2012). The HRD system has become crucial and necessary for the survival of any company in today’s competitive globalisation and liberalisation environment. When the capacity for organisational learning is greater, high-performing work environments have a favourable impact on corporate performance (Zhu, Liu, & Chen, 2018). Because of this consequence, companies must build their HRD system to meet their objectives and aims for HRD to be an effective mediator in helping firms expand and develop their workers’ capacities to improve performance and profitability (Dhar, 2019). Furthermore, Dhar et al. (2017a) concluded that the components of HR accounting practice are important variables in the success of any organisation. Human resource development trends in developing nations seem to be moving slowly and steadily; enterprises in these countries are unable to devote sufficient time and resources to staff training and development. In comparison to the organisations in rich nations, the performance of developing-country organisations is quite poor.
Human resource development concepts in Pakistan remain ambiguous, and firms are unsure how to train and develop their staff for current tasks and future challenges. As a result, the organisation confronts major financial difficulties because the cost of training and growth is extremely high. As a result, to survive, organisations only spend on their most pressing demands, and they are unable to focus on the training and development of their staff in accordance with global HRD trends. However, global companies spent US$358 billion on training and development in 2020 (Statista, 2021). Consequently, Pakistani corporations’ performance is much worse than that of businesses in the United States of America and the United Kingdom. The most important question is whether or not HRD has a major influence on organisational performance in Pakistani industrial companies. Human resource development’s effect on Pakistani manufacturing production and performance may be better understood if this subject can be satisfactorily addressed.
As a result, this research aims to provide an integrated framework for analysing the influence of human resource management (HRM) performance on Pakistani manufacturing company. Instead of using the traditional regression equation technique, structural equation modelling (SEM) was used to include and empirically test the fundamental components of the HRM-performance linkage perspective. In addition to the analytical techniques employed in this research, a variety of contextual factors are taken into consideration, such as management style, organisational culture, the translation of HRM strategy into a clear set of work programmes and deadlines and HRM’s capacity to be proactive in strategy formation. For the first time, this research aims to evaluate how HRM influences organisational performance in Pakistan by examining theoretically created pathways between key exogenous and endogenous factors.
Operational model and hypothesis
The Becker and Huselid (1998) HRM performance linkage model has been characterised as the ‘most logical and detailed description of the mechanisms via which HR practices effect corporate performance’ (Wright, Gardner, & Moynihan, 2003). According to this concept, HRM approaches have a direct effect on employee skills and motivation, which in turn have a direct impact on the operational success and financial performance of a firm.
Impact of recruitment and selection on organisation’s performance
According to Onyango (2015), a company’s long-term success depends on its ability to properly resource its personnel. Recruitment and selection practices have a direct impact on an organisation’s effectiveness (Khan, 2010). When Abomeh (2013) looked at the influence of Abuja’s resourcing tactics on the organisation’s performance, she came to the conclusion that the efficiency of the recruiting and selection process had a major impact. Furthermore, Ogonyomi and Ojikutu (2014) found that Lagos-based recruiting and selection procedures should be outsourced to improve organisational performance. Personnel resourcing and development, according to Appelbaum and Reichart (1998), form the foundation of the examination-based viewpoint on which the group of employee assets and talents of an organisation is established. Dhar et al. (2017b) explored the impact of Islamic HR practices on organisational performance though organisational commitment. They conclude that Islamic HR practices have a significant impact on organisational performance through organisational commitment.
Impact of training and development on organisations’ performance
Kidombo, K’obonyo and Gakuu (2012) said that one of the primary goals of employee training and development is to help them become more effective in their work. According to Kalu and Akinyokun’s (2005) case study research, training and development of personnel have a substantial influence on the success of organisations. In addition, according to Kalu and Akinyokun (2005), Ombui et al. (2014) and Abogsesa and Kaushik (2017), for a company to succeed, it is important to encourage employees who are more driven than their colleagues. Workers’ performance and training and development were clearly linked. According to a research conducted by Ahmed (2014) on Kenyan employee performance, training and development have a considerable impact on an organisation’s productivity. According to Raghuram (1994), employees’ fundamental competencies are the most critical aspect in retaining competitive advantage and organisational success. Human resources are the source of competitive advantages and not the policies of any firm for recruiting, using and keeping personnel. Recruitment and selection may also be seen as a significant and wonderful starting point for assembling common human resources and talents. Recruitment and selection productivity is tied to an employee’s talents morale, expertise, work knowledge, potential and productivity (Khan & Abdullah, 2019). Expanding the talents and capabilities of workers is only expected to provide future returns via increased profitability and performance of the company (Shih, Chiang, & Hsu, 2006).
Effect of values and norms on organisations’ performance
According to cultural variables, such as values and norms, the personality and performance of the company are intimately linked to the values and beliefs of its employees (Søndergaard, 1994). Schwartz (1994) stated that employees’ conduct and the organisation’s long-term viability are influenced by cultural and psychological variables. Dhar, Mutalib and Sobhani (2019) explored the moderating effect of motivation between human capital and organisational performance through innovation capability among Dhaka Stock Exchang’s (DSE) listed Islamic banks of Bangladesh. The study’s findings specified that human capital has positive effects on organisational performance through innovation capability and among the dimensions of human capital, learning and education has the most significant effect on organisational performance. Moreover, motivation, being a moderator, diminishes the positive relationship between human capital and performance.
Blau (1964) and Eisenberger, Cummings, Armeli and Lynch (1997) opined that social trade theory and ideal standards of delayed correspondence trade have a significant influence on the organisation’s performance and output. For understanding the apparent organisational support, Shore, Tetrick, Lynch and Barksdale (2006) proposed that the type of employment be considered. Through improved working conditions, a helpful and cheerful workplace, a reward system and an overhaul of the surroundings, the company has given its employees a better open door with the purpose of increasing their competitive advantages over their rivals (Bartlett, 2001). Employee motivation, sense of responsibility and job satisfaction are all influenced by the process of resourcing and progression, which aims to provide workers with new capabilities (Fey, Björkman, & Pavlovskaya, 2000; Wright et al., 2003). Experts generally agree that one of the most important influences on performance is one’s level of motivation (Hardré, 2003).
Workers’ attitude and organisations’ performance
According to Eisenberger, Huntington, Hutchison and Sowa (1986), the perceived organisational support for the growth and profitability of the organisation speaks to the wishes and impressions of the company’s personnel. To paraphrase Gouldner’s (1960) theory, workers who have a good attitude and behave well contribute to the company’s overall productivity and performance, which in turn boosts their own performance. A 1995 study by Shore and Shore found that employees anticipate moral and genuine support, money-related assistance, promotion, various sorts of aid and help from the company. As George and Brief (1992) pointed out, it is crucial to keep the final aim of increasing occupation effectiveness and organisational performance in mind. When resources are distributed fairly and equally, according to Shore and Shore (1995), workers are more likely to show genuine loyalty to their organisations. The bulk of the company’s rules and practices have a significant impact on employee attitudes and behaviour. Employee training and development may provide a clear message to employees that the company’s best interests are served by keeping them for a longer duration (Katou & Budhwar, 2007).
Employee behaviour, attitude and organisations’ performance
Moreover, in Yoon and Lim (1999) found that in order to boost performance and productivity and organisational support, it was considered that good conduct from the organisation towards its workers may lead to these outcomes; on the other hand, negative behaviour from the organisation towards its employees could lead to these outcomes. According to the research of Rhoades and Eisenberger (2002), pleasant treatment of workers, organisational awards, decency and the flow of resources are all directly linked to the appearance of organisational support. Saks (2006) found that workers who felt supported by their bosses were more likely to carry out their responsibilities to the best of their abilities. Mullen et al. (2006) said that trainings, obligation and exchange of information may also have a negative influence on organisational support’s perceived quality. According to Campbell’s occupation performance theory (Campbell, 1990), workers’ attitudes influence the behaviour of their colleagues, which in turn affects the performance of the organisation (Wright et al., 2003). There is evidence to support the idea that employee satisfaction, inspiration and a sense of civic responsibility all play a role in reducing employee attrition. Representatives who are dissatisfied with their jobs and who have lost their sense of purpose and accountability to their employers are more likely to leave the company (Chiu & Francesco, 2003; Elangovan, 2001). Organisational inspiration and obligation are often seen as being intimately linked to a company’s ability to meet its workers’ needs, although this is not always the case (Bartlett, 2001).
Kuchinke (2003) said that an organisation’s competitive position is strongly influenced by its impalpable characteristics. According to Robbins and Sanghi (2007), the attraction of organisational traits, norms and beliefs has a significant influence on the organisation’s ability to perform. According to Stewart (2010), workers’ standards have a direct impact on the success of the organisation’s culture and performance management. It has been shown by Brooks (2009) that the trustworthiness of workers is dependent on their capacity to learn and get acquainted with the company culture in order to improve their performance at work. Lee and Chuang (2009) stated that ‘superior’ leaders raise the potential of subordinates and satisfy their needs in terms of achieving corporate objectives via various methods. The idea that initiative may be used to provide inspiring expectations for employees and to improve their capacity for acceleration and growth is stated by Sears and Rowe (2003). As per Davidmann (1995), the effectiveness of any organisation is for the most part made steadfast by the methodology of work co-appointment, duty level of workers and the level to which workers participate with each other, with management and group. Organisational setting is relied upon to emphatically (Budhwar & Sparrow, 1997) or adversely (Miles & Snow, 1984; Trompenaars, 1993) be associated with HRM policies and outcomes, contingent upon the particular methodology used. Numerous scientists additionally see that behaviour may not influence profitability (Pritchard, 1992). Fey et al. (2000) may likewise give some backing to the utilisation of staff skills, attitudes, motivation, retention and development as interceding variables between HRM policies and organisation performance.
H2: Organisational context positively influences (1) training and development and (2) organisational performance.
H4: Training and development positively influence (1) employee skills, (2) employee attitude, (3) employee behaviour and (4) organisational performance.
A model’s fundamental linking route may be traced back to this discussion: Organisational context → resourcing → development → skills àattitude → behaviour → organisational performance.
Taking into consideration the causal pathway model, the overall structure of intervening models refers to an ‘aberrant connection’ and a ‘advance[ed] linkage’ (Black, 2001) that link the development of skills, attitudes and behaviour and the success of the organisation. The ‘immediate link’ between a company’s resourcing and development strategies and its employees’ abilities and mindsets and behaviour, as well as between organisational performance, is stated by Schuler and Jackson (2008).
MethodologySampling technique, sample size and data collection
This research study focused on manufacturing companies in Islamabad and Rawalpindi, Pakistan. Islamabad is the capital of Pakistan, while Rawalpindi is close by; both cities are regarded as twin cities. There are a total of 269 manufacturing companies, which serve as the population of this study. A simple random selection approach was used to choose a sample of 50 manufacturing companies for further investigation. The data for this inquiry were gathered via the use of a standardised research questionnaire. Katou and Budhwar (2006) developed the instrument that was used to measure the seven variables of the model. A total of 300 respondents were selected via chance sampling, however only 256 were able to complete a useable questionnaire, resulting in a response rate of about 85% overall. Organisational performance was constructed using six factors selected by the researcher: effectiveness, efficiency, development, innovations and the overall quality of organisational performance, in addition to stakeholder satisfaction and satisfaction with the study’s findings. It is HRD’s role to affect the fundamental issue of organisational performance, which is assessed by the dependent variable of organisational performance (Wang, Dou and Li, 2002). Respondents were asked to rate their organisation’s performance in the preceding year on a scale of 1–5, with 1 being the worst and 5 being the best, in order to reduce the number of errant deviations and anomalies.
Statistical techniques
Structural equation modelling and descriptive statistics were used to examine the data in this research. Using SEM and the AMOS 20 (IBM, Armonk, New York, United States) software, this study was able to deconstruct its data. To examine microscopic structures in detail, AMOS, SPSS @ IBM module is used to do Structural Equation Modeling (SEM), route analysis and confirmatory factor analysis (CFA). Analysis of covariance or causal modelling also exceuted by using this software.
Ethical considerations
This article followed all ethical standards of research and no human subject and animal object is used for study analysis.
ResultsDescriptive statistics
Study results as reported in Table 1 show that the respondents’ answer direction is more towards agreement for particular variable items with higher mean values. A greater proportion of respondents’ responses were in disagreement, as shown by the lower mean values.
Descriptive statistics.
Scales
Numbers
Mean
Standard deviation
Resourcing
256
3.5498
0.92047
Training and development
256
3.5703
0.97758
Skills
256
3.5521
0.95697
Attitude
256
3.4740
0.91190
Behaviour
256
3.0664
0.82336
Organisational performance
256
3.4727
0.91055
Organisational context
256
2.5879
0.82432
Measurement developmentReliability
For assessing the unidimensionality, Cronbach’s alpha was used. According to Nunnally and Bernstein (1994) the adequate value of Cronbach’s alpha is 0.70. Table 2 illustrates the Cronbach’s values for all constructs. Nunnally’s Cronbach’s alphas were used to verify the internal consistency of the building (1978). A value of more than 0.70 was considered acceptable, with an acceptable alpha of 0.60–0.65. There was a significant increase in reliability while comparing the review instrument with the causal model, as seen in Cronbach’s alphas in Table 2, which increased from 0.70 to 0.86. Component loadings of 0.71 indicate enough individual reliability on its individual construct, which suggests that more than half of the variance in the business-like variable is imparted to the construct.
Cronbach’s alpha.
Scale
Cronbach’s alpha
% variance explained
Resourcing
0.82
65
Training and development
0.86
65
Skills
0.78
69
Attitude
0.72
65
Behaviour
0.70
64
Organisational performance
0.86
58
Organisational context
0.71
73
Measurement development
There are several statistical approaches that may be used to examine the data as a single stream to better understand the model fit. Component analysis-based construct measurements are examined in this section to see how reliable they are. To determine whether each monitored variable should be maintained or avoided, reliability analysis tests examine the gage’s internal consistency. A generic measurement model and a particular measurement model for each construct gauge are used to verify that all measurements are legitimate and consistent with the construct’s dimensionality.
The operational human resource management–performance linkage casual model.
Fit indices
The use of SEM has grown over time, with three forms of SEM now recognised: primary models (type 1), followed by sequential structural model (type 2) and a combination of both (type 3) are all that are included in the third structure (McQuitty, 2004). For the purpose of conducting a comprehensive parameter test, this assessment research employs type 3 techniques, which integrate measurements with structural parameters. Quantitative data analysis approach SEM is used to establish and evaluate theoretical links between endogenous and exogenous variables (Byrne, 2001). This method integrates regression and component analysis into a single set of measurements, rather than using a single factual methodology. It starts with a model definition that partners factors acknowledged as influences on various variables and methods in which these effects are accompanied by the SEM methodology (Kline, 2005). For all the work that goes into developing a measurement strategy and specifying the theories that will be used to support it, the data that are collected is the final product (Diamantopoulos & Siguaw, 2000).
Estimated model using structural equation modelling.
Individual results.
Throughout the estimation process, fit statistics should be examined to check whether the proposed model is a fit for the data and if it is not, any required revisions should be made to enhance the model’s fit. Fit statistics may be broken down into three main categories according to Holmes-Smith et al. (2004):
Absolute fit indices.
Incremental fit or comparative fit indices.
Measures of model simplicity.
Different types of indices are used to measure fit, and there are a few rules of thumb for determining a satisfactory match (Byrne, 2001). Researchers and academics from across the world provide their preferred fit indices in a variety of works. According to Knight and Cavusgil (2004), the comparative fit index (CFI), non-normed fit index (NNFI) or Tuker–Lewis indix (TLI), Delta2 (or incremental fit index, IFI), relative noncentrality index (RNI) and root mean square error of approximation (RMSEA) in LISREL 8 (Scientific Software International, Inc., Chapel Hill, North Caroline, United States) were fit metrics. Goodness-of-fit statistics, developed by McQuitty (2004), are less sensitive to the sample size. Among these indices are TLI, proposed by Marsh et al. (1988); IFI, suggested by Bentler (1990); and RMSEA, CFI and TLI recommended by Fan et al. (2003). Fit indicators CMIN/DF (chi-square divided by degree of freedom), IFI, TLI, CFI and RMSEA are evaluated in this research because these fit indices have been used in the past to evaluate model sensitivity and model complexity. In addition, the following subset is cited as a fit measure in the subsequent sections.
This measure of absolute discrepancy between indirect variances and variances to trial sample variances and covariance is known as CMIN/DF.
The IFI, TLI, normed fit index (NFI) and comparative fit index are often-used indices in SEM to quantify the relative improvement in model fit at the baseline level of comparison, respectively. Between 0 and 1 is the ideal range of values for each of the NFI, IFI, TLI or CFI metrics, although the quality near to one, such as 90–95, indicates an acceptable fit, and more than 95 indicates an extraordinary fit model. (Hulland, Chow, & Lam, 1996). Because of its single relative strength of combination qualities, RMSEA has been given much more attention than other fit indices. It was also said that the fit of the RMSEA ranged from 0.06 to 0.10, and that any number over 0.10 was regarded to be abnormal. Some researchers have suggested that RMSEA values between 0.05 and 0.10 may be regarded as a sufficient fit, as Hulland et al. (1996) have suggested.
Initial measurement model fit and modification
In this part, all of the data relating to initial model fit and CFA have been covered. On the basis of a hypothetical ground, CFA tests the one-dimensionality of a data set by validating the underlying structure (Mueller, 1996). In addition, the hypothesis testing model should be extended, if necessary, and the degree of fit should be examined.
Overall measurement of model fit
All of the aforementioned measurements of all of the independent and dependent variables in the proposed and competing models have been checked for model fit. For the models to fit the data correctly, one item was deleted from each of them. Currently, an overall measurement model test is being conducted in this part to assess if the measurement model is adequate. All independent and dependent variables’ covariance structures are computed. This measurement model was put through its paces using both independent and dependent variables in combination. The overall model is tested using overall construct variables, and then measurement is performed with some construct items. excluded. The total model’s initial fit indices were CMIN/DF 2.695, RMSEA 0.072, CFI 0.853, TLI 0.833, IFI 0.855 and NFI 0.787, as indicated in Table 4. The fit indices results are not promising, and several modifications in the construct variables through correlation, as well as the elimination of specific constructs, are advised.
Fit indices reported in this study.
Level of model fit
Overall model fit
Model fit
Model comparison
Fit measures
CMIN/DF
RMSEA
CFI
TLI
IFI
NFI
Acceptable scale for good and adequate fit
≤ 2
0.08
≤ 0.90
≤ 0.90
≤ 0.90
≤ 0.90
CMIN/DF, chi-square discrepancy divided by degree of freedom; RMSEA, root mean square error of approximation; CFI, comparative fit index; TLI, Tucker–Lewis index; IFI, incremental fit index; NFI, normed fit index.
Achieved fit indices.
Categories
CMIN/DF
RMSEA
CFI
TLI
FIF
NFI
Initial
2.695
0.072
0.853
0.833
0.855
0.787
Final
2.248
0.060
0.896
0.879
0.897
0.829
CMIN/DF, chi-square discrepancy divided by degree of freedom; RMSEA, root mean square error of approximation; CFI, comparative fit index; TLI, Tucker–Lewis index; IFI, incremental fit index; NFI, normed fit index.
Hypothesis testing is a very important part of any research study for giving the answer to the research questions presented in Table 5, and a planned framework and a set of hypotheses were designed, which are now tested in the hypothesis testing part of the research study by using the output of SEM. Furthermore, this section reports on the model’s hypotheses route findings in order to evaluate those hypotheses. The regression weights are as below in Table 5.
Hypothesis testing through estimated β value.
Effect of variables
Estimate
S.E.
C.R.
p
Organisational context
→
Resourcing
0.280
0.068
4.135
***
Organisational context
→
Training & development
0.194
0.079
3.202
0.001
Resourcing
→
Training & development
0.742
0.048
15.346
***
Organisational context
→
Skills
0.154
0.053
2.925
0.003
Resourcing
→
Skills
0.274
0.065
4.206
***
Training and development
→
Skills
0.447
0.061
7.345
***
Organisational context
→
Attitude
0.171
0.068
3.102
***
Skills
→
Attitude
0.381
0.066
5.740
***
Training and development
→
Attitude
0.231
0.064
3.637
***
Attitude
→
Behaviour
0.265
0.058
4.551
***
organisational context
→
Behaviour
0.201
0.056
3.559
***
Training and development
→
Behaviour
0.126
0.055
2.309
0.021
Behaviour
→
Organisational performance
0.480
0.057
8.494
***
Training and development
→
Organisational performance
0.162
0.061
2.735
***
Attitude
→
Organisational performance
0.179
0.058
3.102
0.002
Skills
→
Organisational performance
0.143
0.065
2.206
0.027
Resourcing
→
Organisational performance
0.029
0.066
0.438
0.661
Organisational context
→
Organisational performance
0.112
0.053
2.097
0.036
S.E., Standard Error; C.R., Composite Reliability.
The significant arrows connecting the model’s different variables imply the following connections, when looking at the SEM findings:
Organisational context positively influencing the resourcing (β = 0.280), employees’ skills (β = 0.154), employees’ attitude (β = 0.171), employees’ behaviour (β = 0.201), training and development (β = 0.194), organisational performance (β = 0.112) and supporting H1a to H1c and H2a to H2b, respectively.
Results further confirm that resourcing positively influence employees’ skills (β = 0.274), training and development (β = 0.742) and organisational performance (β = 0.029), thus supporting hypotheses H3a to H3c, respectively.
It was observed that training and development positively influence employees’ skills (β = 0.447), employees’ attitude (β = 0.231), employee’s behaviour (β = 0.126) and organisational performance (β = 0.162), thus proving the hypotheses H4a to H4d.
Employees’ skills positively influence the employees’ attitude (β = 0.381) and organisational performance (β = 0.143), thus proving hypotheses H5a and H5b.
Employees’ attitude positively influences the employee’s behaviour (β = 0.265) and organisational performance (β = 0.179), thus proving hypotheses H6a and H6b.
The hypothesised relationship (H7) between employees’ behaviour and organisational performance (β = 0.480) is also confirmed by results.
Discussion
Through the use of HRD initiatives, an organisation’s culture is strongly linked to better organisational performance (Deal & Kennedy, 1982). Organisational setting (organisational culture and management style), workers’ attitudes, organisational resources, employees’ behaviour, training and development and organisational performance are all linked to each other in this research study. Organisational context and resourcing have been demonstrated to be closely linked in prior studies, and it has been shown that supporting the merit system while increasing organisational resources improves performance. Cultural values and beliefs, as well as programmes for the development of human resources, are in line with the strategies used by the company to achieve successful outcomes. According to Schein (1990), organisational culture is defined as the total business of a company, such as HRD strategies, resourcing methods and performance management tactics. According to Klein (1996), the culture of an organisation has a considerable influence on its overall efficacy and quality of performance. Managerial styles have a considerable influence on organisational effectiveness and performance, according to Pathack (2005).
As stated by Ogilvie (2000) and Pathack (2005), a company’s productivity, efficiency and overall success are all affected by the management styles it has chosen. An organisation’s context has been shown to be strongly linked to other basic activities and business of firms such as resourcing, staff training and development and overall organisational performance, according to the results of this study and past research. Dhar et al. (2018) proposed that employee resourcing is an essential part of every company’s long-term success. Resources are favourably linked to employee skills and training and development, but adversely linked to organisational performance, based on the results of this research. Every company that wants to enhance its performance must prioritise employee education and development, along with adequate funding (Barton & Delbridge, 2004). Following resourcing, employee training and development programmes may boost team learning, reduce employee turnover, and equip staff with additional skills, making them more efficient, which may result in improved organisational performance (Thang, Quang, & Buyens, 2010; Vikram & Sayeeduzzafar, 2014). According to prior research, if an organisation’s resourcing strategy is more effective and reliable, it may contribute positively to organisational performance; otherwise, it may be negatively associated with organisational performance.
According to Stone (2002), training is essential to the achievement of organisational goals and objectives because it brings together the interests of the corporation and its personnel. In this study’s research findings, there was a favourable association between employee skills, attitude and conduct and organisational performance. Rama Devi and Shaik (2012) argued that organisations may train and develop their employees to gain a competitive edge by enhancing their abilities and job effectiveness, which in turn improves the organisation’s overall performance. According to Rama Devi and Shaik (2012), in order for an individual and a company to be successful, training and development are essential. Training and development have been shown to have a positive effect on employees’ abilities, attitudes and behaviours and an improved company performance. American Society for Training and Development recommended that every employee in a company should get 40 h of training each year (Kinicki & Kreitner, 2006).
Employee abilities have a significant impact on employee mood and organisational success. According to Bartlett (2001), Fey et al. (2000) and Wright et al. (2003), organisational performance may be enhanced through systems of resourcing and development planning aimed at improving the capacities of workers’ attitudes such as motivation, commitment and contentment. Prior research has shown that employees’ skills can be increased through training and development. It may lead to an improvement in organisational performance by contributing to a shift in their attitude and conduct towards their work. According to Shih et al. (2006), employees’ productivity and efficiency may be improved by spending money on their education and training. Campbell’s work performance theory states that an employee’s attitude and behaviour may have a beneficial influence on the performance of the organisation (Campbell, 1990; Wright et al., 2003). This research shows that an employee’s attitude has a significant influence on his or her behaviour and the success of the company. Employees’ attitudes may be changed via education, which has a beneficial effect on their behaviour and the success of the firm. Policies and procedures that a company adheres to have an impact on employees’ attitude and conduct. There was a strong correlation between employees’ attitude and behaviour and organisational success.
This research found a link between a company’s ability to operate well and the behaviour of its employees. Employee retention is a fundamental objective of training and development, which aims to instil in them the idea that the company’s success depends on their staying on board for as long as possible (Katou & Budhwar, 2007). An employee’s actions, such as staying in the company, being present at work and making a good impact on the company’s success, may convey a positive message among other workers (Guest, 2001).
Conclusion
This study is an endeavour to find the effect of HRD on organisational performance. In addition, it specifically investigates the impact of organisational context, resources, training and development, skills, attitude and behaviour on organisational performance.
The study’s independent elements, such as resourcing and training and development, employee skills, employee attitude and behaviour and the organisational setting, all had a positive link with organisational performance. According to the results of the study, HRD techniques have a favourable influence on the organisational performance of manufacturing organisations. However, training and development activities are favourably related with resource allocation, even when there is no clear link between resourcing and organisational success. This study’s results show that if a company improves its resourcing strategy, training and development may also have a favourable impact on the organisation’s success in attaining its targeted objectives.
AcknowledgementsCompeting interests
The author(s) declare that they have no financial or personal relationship(s) that may have inappropriately influenced them in writing this article.
Authors’ contributions
M.I. constructed the manuscript and gathered the data. N.K. managed the data analysis. Lastly, J.K. and A.M.K. supervised consolidating this article for publication.
Funding information
This research did not receive any specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Data availability
Data that support the findings of this study are available upon reasonable request from the corresponding author, N.K.
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How to cite this article: Irfan, M., Khurshid, N., Khurshid, J., & Khokhar, A.M. (2023). Human resource development and organisational performance: Evidence from Pakistan. SA Journal of Human Resource Management/SA Tydskrif vir Menslikehulpbronbestuur, 21(0), a2020. https://doi.org/10.4102/sajhrm.v21i0.2020