Essay on Effects of Hr Practices on Organizational Performance
Organizational Performance – An Empirical Study of Oil and Gas Industry in Pakistan
Muhammad Asif Khan
Assistant Professor, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
(SZABIST) Islamabad, Pakistan
Tel: 92-51-4863363 / 209
The study evaluates the effects of human resource management practices on organizational performance in Oil and Gas Industry in Pakistan. A total of 150 managers of 20 randomly selected firms from Oil and Gas Industry responded to self-reported questionnaire that measured five HRM practices and subjective measures of organizational performance.
Factor analysis was performed to identify human …show more content…
The aim of this study is to examine the effects of HRM practices on organizational performance in Oil and Gas Industry in Pakistan.
2. Literature Review
Lately, human resource management has emerged as an essential factor for sustained competitive advantage. Research highlights that organizations develop sustained competitive advantage through management of scare and valuable resources (Barney, 1991). The human resource enables organizations to achieve optimization of resource, effectiveness, and continuous improvement consistently (Wernerfelt, 1984). An organization take time to nurture and develop human capital in the form of knowledge, skills, abilities, motivation, attitude, and interpersonal relationship, and makes it difficult for competitors to imitate (Becker & Gerhart, 1996). Pfeffer (1994) stressed that human resource has been vital for firm sustained performance. In knowledge economy, the human resource has been recognized as a strategic tool, essential to organizational profitability and sustainability. This realization has led to the new role of human resource managers as strategic partners in