A CRITICAL ANALYSIS OF HUMAN RESOURCE MANAGEMENT PRACTICES ... · A CRITICAL ANALYSIS OF HUMAN...

International Journal Of Advancement In Engineering Technology, Management and Applied

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ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 10 || October - 2016 || PP. 118-141

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A CRITICAL ANALYSIS OF HUMAN RESOURCE MANAGEMENT

PRACTICES INFLUENCING PERFORMANCE IN PRIVATE

UNIVERSITIES (CASE OF PRIVATE UNIVERSITIES IN

RAJASTHAN)

Atanu Talukdar Research Scholar,

Pacific University, Udaipur, Rajasthan (India)

Abstract-Organizations have to put more stress on good human resource policies which

influences employee’s motivation and this results in exceptional performance of the

University. Now-a-days the internal and external business environment is changing rapidly

.To cope up with this, Universities give lot of importance to HR policies. Good Human

resource policy attracts talented people to join the groups. It also motivates people to

perform. And as a result of their exceptional performance University excels. The Study was

confined within the private universities of Rajasthan. Data was collected through survey

method from faculties of private universities of Rajasthan. SPSS was used to generate the

statistical outputs. The study found that orientation, training & development and working

environment affect the effectiveness of private universities.

Keywords- HR Policy; organizational performance; private universities.

I. INTRODUCTION

Over the past decade, there has been an increasing emphasis by researchers and practitioners

alike on the importance of human resources as one of the key ways of gaining a competitive

advantage for a firm (Muduli, 2015). Consequently, numerous research has been conducted

on human resource management within the context of organizational effectiveness (Bird &

Beechler, 1995; Huselid, 1995; Ghebregiorgis & Karsten, 2007). However, it is found that

while most of the research on effectiveness of HRM has been conducted in business

organization context, very little research has been conducted in the field of higher education.

More specifically, when it comes to private universities in India very few research has been

conducted.

The evolution of human resources (HR) in higher education has been a relatively recent

phenomenon considering the tenure of most colleges and universities. Authors like Triplett &

Jarjoura (1997) reported that personnel administration is one of the last specialty areas to

emerge in higher education. It is found that, in most the universities HR functions (especially

those related to faculty) continued to be handled by deans and department chairpersons. It

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was only after the 1990s that personnel administration functions began to be referred to as

HR and emerging corporate HR paradigms examined for relevance to higher education

(Kemper, 2001).

With the above background, the present study examines the impact of human resource

policy viz. orientation & training and development, performance appraisal, compensation &

benefit, recruitment & selection and working environment on the organization effectiveness.

The researcher has studied private universities of Rajasthan to understand the role of HR

policies on the effectiveness in Indian context.

II. LITERATURE REVIEW AND HYPOTHESIS

Moderated or interactive relationship model is used to find the impact of HR policies

on organizational effectiveness. This model further analysed the impact of HR policies on

organization effectiveness. This model implies that moderation or interaction could be said to

exist if returns from one practice (e.g. HR policy) varied across the other practice (e.g.

organizational effectiveness) at all levels. This means, Satisfaction Effectiveness is

determined by the interaction of the predictor (e.g. HR policy). The presence of interaction is

established if the cross product coefficient differs significantly from zero.

a) HR Policies and Organizational Effectiveness

The relationship between HR Policies and Organizational Effectiveness has been noticed in

the extant literature. In the following paragraph, attempt has been made to capture the related

literature.

Richard (2001) found whether strategic human resource practices effect

organizational level outcome. Strategic human resource management significantly reduces

employee turnover and increase overall market performance assessment. When strategic

human resource management is moderated by capital intensity then firm productivity and

return on equity is affected.

Pounder (2002) attempted to produce an objective assessment criteria through the

development of an organizational self‐assessment scales for public funded Universities of

Hong Kong. The result of the study highlighted HRM issues that are relevant for

Organizational effectiveness in Hong Kong higher education.



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Perk et al. (2003) examined the impact of human resource practices on performance

of Japanese multinational company’s subsidiaries operating in US and Russia. The results

support that employee skill, attitude and motivation play a mediating role between HR

systems and firm outcomes in multinational organizations.

Lopez et al. (2005) investigated the relationship between high performance human

resource practices, organizational learning and business performance of Spanish universities.

It was found that high performance human resource practices have a positive effect on

organizational learning, which in turn has a positive influence on business performance. It

was also found that the human resource practice has no direct effect on business performance.

Kaya (2006) examined the role of HRM practices and corporate entrepreneurship on

firm performance. HRM plays a mediating role. HRM practices (which emphasize behavior

and attitude, extensive training, training on the job skills, written constructions and

procedures, team activities, training in multiple functions, incentive to meet objectives,

communication of strategy, interaction facilitates, feedback on performance) are important

for enhancing firm performance.

Tessema & Soeters (2006) had examined how, when and at what extent human

resource practices affect performance of the university system. They have studied eight

human resource management elements such as: recruitment and selection practices,

placement, training, compensation, employee performance evaluation, promotion, grievance

procedure and pension programmes, to see their performance optimization outcomes based

on competenceies, motivation, role clarity and retention.

Venhala et al. (2006) tried to evaluate chances of human resource policies and

practices impact on company performance. It is found that HR practices is a good predictor of

company performance.

Akhtar et al. (2008) examined factorial validity of strategic human resource

management practices and their effects on performance of Chinese enterprises. HR policies

(training, participation, results-oriented appraisals, and internal career opportunities) affect

both product/service performance and financial performance. Employment security and job

descriptions contribute uniquely to product/service performance, whereas profit sharing

contributes uniquely to financial performance



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Abdullah et al. (2009) have studied the effect of training and development, Team

Work, Compensation, HR planning, Performance appraisal and employees security on

business performance on Malasian’s private business. Results show that training and

development, team work, HR planning and performance appraisal have positive and

significant influence on business performance.

Caliscan (2010) in his paper first did an extensive literature review on human resource

management as a competitive advantage, the strategic role of human resource management

and then how strategic human resource management impacts organizational performance.

The finding is that the way an organization manages its human resources has a significant

relationship with the organization’s performance.

Kahn (2010) measured recruitment and selection, training and development,

performance appraisal, compensation and reward, employee relations to see their impact on

performance optimization of oil and gas industry of Nigeria. A positive and statistically

significant association of these practices with performance optimizations is established.

Khalid & Rehman (2010) investigated the impact of human resource management

practices on performance optimizations of two telecommunication companies. Training,

employee participation, job definition, compensation and selections are positively associated

with the overall performance optimization.

Kim (2010) in his study addressed the question whether public sector can increase

productivity through competition in spite of inherent limitations by examining the impact of

four factors (rewards for merit such as salary and benefits, opportunities, organizational rules,

and the capacity to deal with risks as perceived by employees) that contribute to employees

expectations regarding competitive work environments on organizational performance in

terms of overall quality of work and client satisfaction.. It was found that salary and benefits

were positively related to employees perception of organizational performance. Moreover,

employees perceptions of organizational performance tended to increase when they felt that

organizational rules were oriented toward performance plus organizational members and top

leaders exhibited greater risk-taking behaviors.

Qureshi et al. (2010) have selected human resource management practices such as

selection, training, performance appraisal system, compensation, employee participation to

see their impact on financial performance of banks in Nigeria. All variables ha ve a positive



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relationship and impact on financial performance of banks. It was found that performance

appraisal system is the least contributor to performance of banks.

Mukhtar et al. (2011) investigated the role of HRM in managing the organizational

conflict in public sector Universities of Pakistan. It is found that functional conflict has a

positive relationship with organizational effectiveness. HRM practices (namely recruitment

and selection, training and development, performance appraisal and role of Union) can

transform dysfunctional conflict into functional conflict and have significant relationship with

the organizational effectiveness.

Oladipo et al. (2011) examined what is its impact of strategic HRM on organizational

performance. Management development, innovative recruitment and selection system,

regular training and development of personnel, equity based compensation system,

performance appraisal system, effective career planning system and strong employee

participation in organizations decisions and actions are the key strategic human resource

practices that influence organizational performance in Nigerian manufacturing sector.

Moghli (2012) tested the effect of recruitment and selection on institutional

excellence on private schools of Ammam, capital of Jordan. It was found that there is

statistically significant effect of recruitment and selection on organizational excellence.

Bourne et al. (2012) investigated the contribution of business performance

measurement (PM) and human resource management (HRM) practices to business

performance in thirteen UK companies including private and not for profit organization. It is

found that neither HRM nor PM practices alone are responsible for generating organizaitonal

performance. But it is their interaction that determines the process of generating

organizational performance. An organizational social climate is generated due to interaction

between Business performance Management and Human Resource policy which stimulates

the employee efforts which are subsequently channeled towards strategic priorities by goal-

setting, communication and control practices of Business performance management.

Rawashdeh (2012) studied the impact of human resource practices on corporate

performance of Jordanian commercial banks. Result showed a positive and significant

positive relationship between recruitment and selection, compensation and reward with

corporate performance and a negative association between training and development and

corporate performance.



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Shah et al. (2012) in their research focused on important HR dimensions and HR

outcome leading to organizational performance of telecom companies of Pakistan. It was

found that employee development and performance should be main focus of HR department

to increase employee’s commitment to tasks and achieve organizational performance.

Waiganjo et al. (2012) examined that to what extent strategic human resource

management influences firm performance from various critical perspectives. They developed

a conceptual framework that tells that strategic human resource management (resourcing,

training and development ,teams and decentralization, sharing information, incentives on

performance) have a positive impact on firm performance. Competitive strategies (cost led

HR strategy, quality led HR strategy and innovation led HR strategy) work as a moderating

variable.

Amin et al. (2013) in their paper examined the effect of human resource management

practices on organizational performance of public universities of Malaysia. It was found that

recruitment, training, performance appraisal, career planning, employee participation, job

definition and compensation have a significant positive impact on university performance.

Ullah et al (2013) tried to find out impact of human resource management on internal

customer satisfaction and organizational effectiveness in banking sector of Pakistan. It was

found that some HRM practices (a recruitment and selection, training and development,

performance appraisal, compensation and rewards, and employee participation) are linked

with internal customer satisfaction and organizational effectiveness.

Aftab et al. (2014) used this cross sectional study to find out the mediating role of

employee motivation between human resource practices and organizational per formance in

Islamic Banks operating in Pakistan. Training and development, performance evaluation

system, career development system, extrinsic reward, intrinsic reward have a positive

association of perceived organizational performance in Islamic Banks operating in Pakistan.

Post selection human resource practices have a positive impact on perceived organizational

performance and employee motivation plays a mediator role.

Agusioma (2014) critically analyzed the HRM practices effect on organizational

performance of public Universities in Kenya with a focus on Nairobi. The study found that

recruitment and selection, training and development, reward management and employee

relations affect organization performance.



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Arshad et al. (2014) in their conceptual paper has given typical example of different

HRM practices and found out best fit HRM model for implementing the effectiveness of

HRM practices to give rise to best organizational performance in local conditions of

developing countries. This paper has presented a trust oriented HRM model that has taken

care of Pakistani mindset. This framework will help HR specialist to create and sustain

network and connections with people in a more trusted environment.

Burma (2014) did extensive literature review on human resource management, scope

and affecting factors on human resource management, human resource management

functions and relationship between organizational effectiveness and human resources. Human

resource management has evolved from personnel management and then to strategic human

resource management. The human resources are the companies’ most important assets, and

effective management of these resources will contribute to the sustainable competitive

advantage of firms.

Luftim (2014) focused on the impact of the strategic management of human resource

in achieving organizational performance. Strategic management of human resource practices

has improved organizational performance.

Tehsildari (2015) in his research tried to find a framework for improving

organizational effectiveness in Malaysian government universities. The findings reveal that

employee participation, training, performance appraisal and job description have significant

effect on organizational effectiveness.

For the achievement of the objective the following alternative hypothesis have been

formulated.

Hypothesis 1

H1: Human Resource Management practices are positively related with organizational

effectiveness.

H1a: Orientation ,Training and Development as a Human Resource Management practices

is positively related with organizational effectiveness.

H1b: Performance Appraisal as a Human Resource Management practices is positively

related with organizational effectiveness.



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H1c: Compensation and Benefit as a Human Resource Management practices is positively


H1d: Recruitment and Selection as a Human Resource Management practices is positively


H1e: Working Environment as a Human Resource Management practices is positively


H2 : HR practices positively & significantly effects Organizational Effectiveness

H2a: Orientation, Training and Development positively & significantly effects

Organizational Effectiveness

H2b: Performance Appraisal positively & significantly effects Organizational Effectiveness

H2c: Compensation and benefit positively & significantly effects Organizational

Effectiveness

H2d: Recruitment and Selection positively & significantly effects Organizational

Effectiveness

H2e: Working Environment positively & significantly effects Organizational Effectiveness

III. RESEARCH METHODOLOGY

a) Sample

Type of Industry plays an important role in determining the desired mode of human

resource practices in an organization. It was determined by Jackson, Schuler, & Rivero

(1989). As a result of liberalization and deregulation lot of new private universities have

cropped up. As on July 2016 out of 759 Universities in India 239 are private Universities.

There is very tough competition amongst them. All Indian private universities, are trying

their best to improve their performance and preparing to compete in the emerging global

market (Sumathy, 2007). Survey says growth of Education is best in Rajasthan. This is the

logic behind selection of private universities of Rajasthan.

A total 600 questionnaires were administered to permanent faculties (Assistant

Professor and above rank) working in selected private universities of Rajasthan, India. All

were done through personal visits to the organizations. The overall response rate was 45%

which is considered as a poor response rate.



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b) Measures

The survey instrument consists of HR policy (30 items) and Organizational

Effectiveness (29 items).

I. Human Resource Management Practices

It was developed from “Human Resource Best Practice Scale (HR-BPS)”developed

by Ahmed Abbas & Akhtar (2011). It measures Orientation, Training and Development,

Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working

Environment .All thirty items were measured on a Likert-type scale ranging from (5) highly

satisfied to (1) very dissatisfied.

II. Organizational Effectiveness

It was developed from questionnaire designed by Authors Kim Cameron in his article

Measuring Organizational Effectiveness in Institution of Higher Education, Source :

Administrative Science Quarterly Vol. 23, No. 4 (Dec.1978) pp. 604-632. It contains twenty

nine items. They measured External Environment Response Effectiveness, Satisfaction

Effectiveness, Student Career Development Effectiveness. External Funding Effectiveness &

Student Academic Development Effectiveness. All twenty nine items were measured on a

Likert-type scale ranging from (5) highly satisfied to (1) very dissatisfied.

c) Purification of the Measurement Variables

I. Human Resource Management Practices and Organisational Effectiveness

It is developed from “Human Resource Best Practice Scale (HR-BPS)”developed by

Ahmed Abbas & Akhtar (2011) .It measured Orientation, Training and Development

,Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working

Environment. All thirty items were measured on a Likert-type scale ranging from (5) highly

satisfied to (1) very dissatisfied. The table I present the results of factor loading for

measurement of HR policy. The table shows that a total of 30 items (except 7, 14, 15, 23)

having significantly high loading scores have clubbed in five groups. The table II present the

results of factor loading for measurement of OE. The table shows that a total of 29 items

(except 18) having significantly high loading scores have clubbed in five groups.

Table I: Factor Analysis of HR Policy

S.No. Factor Labels and Variables Factor

Loadings

F1 Orientation and Training and Development

OTD_7 The staff development activities organized by the university improved

my teaching performance.

0.914



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Loadings

OTD_8 Teachers training organized by the university is directly linked with the

university goals and objectives

0.885

OTD_6 The university encourages me to undertake relevant professional

training courses

0.884

OTD_2 I was comprehensively briefed about all the university goals and

objectives during the orientation session.

0.876

OTD_1 The university mission statement was clearly communicated to me

during the time of joining.

0.871

OTD_5 After joining this university , I was clearly communicated the criteria on

which my performance will be evaluated

0.859

OTD_9 After teachers training course the university asked me about formal

feedback about the effectiveness of the training course.

0.854

OTD_4 I was comprehensively briefed about the university structure (

administrative hierarchy) after joining.

0.750

OTD_3 I was formally introduced to all colleagues of the department when I

joined the university.

0.677

F2 Performance Appraisal

PA_3 Appraisal is completed by the persons who are completely familiar with

my work performance. 0.684

PA_2 The university gives me formal feedback after appraising my

performance. 0.626

PA_4 The university adopts standard procedure for appraising my teaching

performance. 0.588

PA_1 My performance is regularly evaluated by the university after each

session/semester. 0.533

F3 Compensation and Benefit

CB_3 I am paid appropriate salary according to my responsibilities 0.836

CB_1 I am fairly paid according to my qualification 0.817

CB_4 I am reasonably remunerated for all the effort I put in. 0.800

CB_2 I am appropriately compensated according to my experience. 0.788

CB_5 I am fairly rewarded for the stress and strains of my job. 0.778

F4 Recruitment and Selection

RS_2 Before the selection of my present post I knew complete Job

requirements 0.824

RS_4 The interview panel adequately tested my skills for the required post 0.790



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Loadings

before selection.

RS_3 Before my selection, the interview panel thoroughly assessed my

knowledge for the required post.

0.773

RS_5 Discrimination of any kind is not involved in the selection process in

my university.

0.593

RS_6 In my university internal politics plays an important role in teachers’

selection process.

0.555

RS_1 Vacancies for teachers are properly advertised in my university. 0.511

F5 Working Environment

WE_3 My health has not suffered due to my job at this university. 0.787

WE_4 I feel no difficulty in balancing my work and personal life in the

university 0.709

WE_5 The university is actively involved in handling my safety complaints. 0.671

WE_2 My employment is completely secured with this university 0.575

WE_6 Complaints of the workplace violence are investigated by the university

adequately. 0.561

WE_1 Working environment is very pleasant in my university 0.491

Table II: Factor Analysis of O rganizational Effectiveness


Loadings

F1 EXTERNAL ENVIRONMENT RESPONSE EFFECTIVENESS

26

Maintains a good link with industry and other higher education

Institutes 0.758

24 Emphasis on meeting the needs of employers 0.740

23 Faculties are active in various community services 0.689

28 Can attract and retain good quality staff 0.676

27 Can attract the best student applicants 0.676

25 Faculties enjoy a good reputation with the general public 0.675

20 Faculties have the best qualifications among all local universities 0.597

22 My university encourages and supports staff development 0.591

19

My university ranks highest in research and publication among all local

universities in my field 0.584

21 Faculties are held in high esteem in local academic circles 0.577



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F2 SATISFACTION EFFECTIVENESS

2 Students maintain a good relationship with faculties 0.716

1 Students enjoy their school life 0.698

15 Faculties enjoy teaching 0.678

14 Show high respect for teachers 0.610

16 Faculties enjoy conducting research 0.586

3 Students are highly satisfied with their program of study 0.574

17 Satisfied with their working environment 0.574

13 Active in extracurricular activities 0.548

5 Students achieve a high level of academic attainment 0.533

12 Students are very civic minded 0.334

F3 STUDENT CAREER DEVELOPMENT EFFECTIVENESS

9 Employed in their relevant fields of study 0.767

10 Highly commended by their employers 0.692

11

Get good salaries in comparison to graduates from the same discipline

in other local Universities 0.689

8 Graduates able to secure employment shortly after they graduate 0.674

F4 EXTERNAL FUNDING EFFECTIVENESS

30

Outperforms other local universities in securing financial sponsorships

from industry 0.779

29 Outperforms other local universities in securing research funds 0.703

F5 STUDENT ACADEMIC DEVELOPMENT EFFECTIVENESS

4 There is a high student dropout rate 0.795

6

Students only aim to get an academic qualification but not acquire

knowledge 0.717

7 Students are self-directed learners -0.527

d) Validity and Reliability

The content validity of the questionnaire has been ensured through expert comments

from industry and academia. Experts in the relevant field were identified and the

questionnaire was submitted requesting them to provide comments related to HR policy and

OE. A pilot study was conducted to test for any construct weaknesses, and for weaknesses in

the research design (Collis& Hussey, 2003). Pilot study was conducted in a private university

of Rajasthan on sample size of 100 (60-Assistant Professor,30-Associate Professor,10-

Professor). The response was 100 % and all questions were considered for analysis. The



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convergent validity was measured through correlation matrix and factor analysis (Park

Robertson, & Wu, 2006; Parasuraman, Berry, & Zeithaml, 1991).Factor analysis was

performed on all items of HR policy and organizational culture. As the Table I shows, a total

of 30 variables (except 7,14,15,23 )having significantly high loading scores clubbed in five

groups which were later on named as OTD, PA, CB, RS and WE. Further result of correlation

matrix found all the statement are correlated with each other. As the Table II shows, a total of

29 items(except 18 )having significantly high loading scores clubbed in five groups which

were later on named as EERE ,SE, SCDE, EFE & SADE. Further result of correlation matrix

found all the statements are correlated with each other

Further result of correlation matrix found all the statement correlated with each other.

The researcher applied Cranach’s Alpha test (Table III) to the research variable HR policy

and OE to judge the reliability. The test result shows that Cranach’s Alpha for HR policy and

OE are 0.932 and 0.953 respectively. This indicates data reliability as they meet the minimum

acceptable level ranging from .80 to .90 (Salanova & Schaufeli, 2008). Taken toge ther, the

results showed that the measures in this study possessed adequate reliability and validity.

Table III: Reliability through Cronbach's Alpha

Constructs Cronbach's Alpha

Human Resource Management (34) 0.932

Oranizational Effectiveness (29) 0.953

Statistical Analysis

For the purpose of analysis of data, descriptive analysis, correlation analysis and

multiple regression analysis were used on a standardized data set using SPSS version 17.0.

Table IV shows Mean, Standard deviations, and Zero order correlations. Correlation analysis

was done to investigate the relationship between HR Policy and Organizational Effectiveness.

As shown in the Table IV Orientation, Training and Development (OTD), has positive and

marked degree of correlation with Organizational Effectiveness (r = 0.709, p < 0.01),

Performance Appraisal (PA) has positive & moderate degree of correlation with

Organizational Effectiveness (r = 0.401, p < 0.01), Compensation and Benefit (CB), has

positive and low degree of correlation with Organizational Effectiveness (r = 0.321, p < 0.01)

Recruitment and Selection(RS) has positive & moderate degree of correlation with

Organizational Effectiveness (r = 0.452, p < 0.01), Working Environment (WE) has positive



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& moderate degree of correlation with Organizational Effectiveness (r = 0.425, p < 0.01).

Thus overall it was found HR policy is significantly correlated with Organizational

Effectiveness. With this the proposed hypothesis that Orientation, Training and Development,

Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working

Environment would be positively related to Organizational Effectiveness is accepted. This

means if HR policy is improved definitely there will be significant positive impact on

Organizational Effectiveness .

Multiple regression was done to find the individual contribution of Orientation,

Training & Development (OTD), Performance Appraisal (PA), Compensation & Benefit

(CB), Recruitment & Selection (RS) and Working Environment(WE) on Organizational

Effectiveness (Hypothesis H2a to H2e) Table V summarizes the results of multiple linear

regression analysis and illustrates that values of unstandardized coefficients (see the section

headed “coefficients”) provide the regression equation that could be used for forecast

purpose. From the column labeled “unstandardized coefficients,” the constant term was

1.075. Coefficient of variable OTD was found to be 0.418, while coefficient of PA was

0.011, coefficient of CB was 0.017, coefficient of RS was 0.076, coefficient of WE was

0.186. If there is one unit change in OTD there will be 41.8% change in OE. If there is one

unit change in PA there will be 1.1% change in OE. If there is one unit change in CB there

will be 1.7% change in OE. If there is one unit change in RS there will be 7.6% change in

OE. If there is one unit change in WE there will be 18.6% change in OE.

In Table V, the beta coefficients are listed in the column headed “standardized

coefficients.”The Beta value indicates the relative influence of the entered variables, that is,

OTD (Orientation, Training and Development) has the greatest influence on Organizational

Effectiveness (Beta = 0.623) followed by WE (Work Environment) (Beta=0.235), RS

(Recruitment and Selection) (Beta = 0.071), CB (Compensation and Benefit) (Beta=0.027)

then PA (Performance Appraisal) (Beta = 0.015)

R2 was equal to 0.588. This means that 59 percent of the variance in the dependent

variable (Organizational Effectiveness) could be attributed to changes in the independent

variables (HR policy). F-statistic was found to be 74.57, at a significance level of 0.01. It is

concluded that the set of independent variables (OTD, PA, CB, RS and WE) as a whole was

contributing to the variance in the dependent variable (Organizational Effectiveness).

As shown in the section labeled “coefficients,” significant levels for coefficients of

OTD and WE were found to be significant at 0.01, and PA, CB and RS were non-significant

(p > 0.05).



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IV. DISCUSSION

In the global competitive business scenario, higher education sector has been facing

many changing challenges caused by globalization, liberalization, technological

advancements and changing customer’s technological–driven expectations. These challenges

have called for extensive search for suitable strategies for the growth and survival of the

higher education sector in the changing and turbulent marketplace. In this context, the role of

human resource management practices in enhancing the university performance has been

studied in the current research paper.

The study result proved that Orientation training and development contributes to good

organizational effectiveness in the universities (Beta=0.623). In other word, Orientation,

training and development contributes to the university effectiveness in form of External

Environment Response Effectiveness, Satisfaction Effectiveness, Student Career

Development Effectiveness, External Funding Effectiveness’ and Student Academic

Development Effectiveness. Agreeing with the previous research, the study proved that the

universities’ focus on OTD can enhance the universities effectiveness. The finding also finds

support from the existing practices in the private universities. The researcher, being a faculty

member has often experienced that in reputed universities, faculties are introduced to all

important functional head of the department first, followed by the different functional head of

the university, and lastly to all colleagues. In few other universities, the organization rarely

takes faculty Orientation seriously. Often, it is noticed that the faculty members orient

themselves slowly with the university people and process, often with their own initiatives.

Such kind of system has been instrumental to inefficiency of the faculty members as many

times the faculty may not have clarity about the university system and processes. Further, it

has been noticed that where as Reputed universities invest substantial time and amount on

faculty training and development (e.g. providing Faculty development allowance, sponsoring

for FDPs, workshops, conferences, seminars etc.), others neither provide nor encourage

faculty members for such kind of training and development programme. Interestingly, it is

found that the former category of universities are always better ranked than the later one in

terms of their effectiveness. On the basis the above findings, we suggest that Faculties should

be given a proper orientation programme where rules and regulation of the university will be

properly communicated. There should be scope for training and development of the faculties



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eg. Soft skill training, FDP, training on excel, SPSS should be there in the university . The

University should develop an app. It should be properly shared by faculties. There faculties

should upload their CV and their current activity. They should express their views and

remedies of the current situation. For orientation faculties should be taken to some hill station

. Once in a year there should be party where all faculties and staff and their family members

should participate.

The study result proved that Working Environment contributes to good organizational

effectiveness in the universities (Beta=0.235). In other word, Working Environment

contributes to the university effectiveness in form of External Environment Response

Effectiveness, Satisfaction Effectiveness, Student Career Development Effectiveness,

External Funding Effectiveness and Student Academic Development Effectiveness. The

finding has found support in the private university practices experienced by the researcher. It

is often found that in Reputed universities, faculties are very happy. Being in the campus,

they feel free and secured. They feel at home. Anytime they need they enter in the cabin and

complete the task. Before head of the department tells them anything, they feel an inner call

to resolve the issues. Whereas, in other universities faculties are always tensed since at any

moment they can loose their job. Their health suffers a lot due to tension. They feel unsafe

and insecured. They rush to their office at the eleventh hour. Faculties consume all leaves.

Faculties avoid office as much as possible. Interestingly, it is found that the former category

of universities are always better ranked than the later one in terms of their effectiveness. On

the basis the above findings, we suggest that Faculties should be given a proper working

environment consisting of medical facilities, indoor and outdoor games, flexibility of

movement inside and outside the campus, women cell etc.

Further, the research could not prove the contribution of Performance Appraisal

(t=0.228), Compensation and Benefits (t=0.452) and Recruitment and Selection (t=1.448).

The result surprises us as successive research has proved the relevance of these HR policies

on Organizational effectiveness. This may attribute to either the contextual factors or to the

implementation challenges of the specific practices in the private universities. For example,

Muduli, (2008) commented that HR practices capable of enhancing organizational

effectiveness may not equally true in Indian context. In the context of Compensation and

Benefits, Muduli, (2010) proved that reward system (e.g. Individualistic Performance based

Reward) relevant in western context are not relevant in a highly collectivist Indian culture.



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V. LIMITATION AND POINTS FOR FUTURE RESEARCH

Limitations are part and parcel of any kind of research work. So, the present study is

assumed to be not free from limitations. Although adequate precautionary measures have

been taken, the study suffers from some limitations. First limitation that could potentially

affect the result of the study is the sample size. A total six hundred questionnaires were

administered to faculties working in private universities of a Rajasthan. As such, the findings

may not be generalized to all Indian Private Universities. Future research may take a broad

sample on the basis of which the result can be more generalized. Secondly, in the current

research HR policy and OC is measured through a set of questionnaire where faculties were

asked to provide operational performance data. However, HR policy can be measured

through perceptual performance measures also as observed by Combs, Liu, Hall & Ketchen

(2006) because good HR policy increase employee KSAs, empower employees to leverage

their KSAs, and motivate them to do so, they influence employee discretionary effort,

creativity, and productivity (Becker & Gerhart, 1996) which in turn increase operating

performance measures such as employee turnover and job sat isfaction further leading to

increased accounting returns and market value (Becker & Gerhart, 1996; Huselid,

1995).Therefore, future research may measure HR policy through perceptual performance

measures such as financial measures such as profit, productivity, or market returns. Finally,

the current study focused on organizational culture of the private higher education sector of

India without examining the economic, social and political context. As Delbridge & Keenoy,

(2010) & Muduli, Verma & Dutta, (2016) argued, management practices can only be

properly explained in the context of the wider social-economic, political and cultural factors.

They shape those practices. Thus, future research can be conducted considering the specific

economic, social and political context.

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International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)



Table IV: Correlations HR Practice and Organization Effective

Mea

n

SD

Org

aniz

atio

n

Eff

ectiven

ess

(OE

)

Ori

enta

tion,

Tra

inin

g &

D

evel

opm

ent

Per

form

ance

Appra

isal

Com

pen

sation &

Ben

efits

Rec

ruitm

ent

& S

elec

tion

Work

ing E

nvir

onm

ent

Exte

rnal

Envir

onm

ent

Res

ponse

Eff

ectiven

ess

Sat

isfa

ctio

n

Eff

ectiven

ess

Stu

den

t C

aree

r

Dev

elopm

ent

Exte

rnal

Fundin

g

Eff

ectiven

ess

Organization

Effectiveness 3.829 0.619

Orientation, T & D 3.764 0.923 0.709 **

Performance

Appraisal 4.185 0.797 0.401 ** 0.264 **

Compensation &

Benefits 3.696 0.975 0.321 ** 0.162 ** 0.681 **

Recruitment &

Selection 4.175 0.579 0.452 ** 0.413 ** 0.481 ** 0.315 **

Working

Environment 4.040 0.781 0.425 ** 0.206 ** 0.723 ** 0.688 ** 0.462 **

External

Environment

Response

Effectiveness

3.933 0.736 0.935 ** 0.662 ** 0.290 ** 0.258 ** 0.421 ** 0.335 **


International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)



Satisfaction

Effectiveness 3.931 0.685 0.936 ** 0.672 ** 0.419 ** 0.317 ** 0.409 ** 0.446 ** 0.796 **

Student Career

Development 3.763 0.714 0.791 ** 0.560 ** 0.348 ** 0.343 ** 0.304 ** 0.350 ** 0.677 ** 0.707 **

External Funding

Effectiveness 3.745 0.834 0.706 ** 0.510 ** 0.359 ** 0.271 ** 0.238 ** 0.353 ** 0.632 ** 0.629 ** 0.519 **

Student Academic

Dev. 3.285 0.722 0.560 ** 0.369 ** 0.276 ** 0.122 * 0.440 ** 0.236 ** 0.455 ** 0.475 ** 0.301 ** 0.256 **

**Correlation is significant at 0.01 level; *Correlation is significant at 0.05 level



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141

Table V. HR Policy and Organizational Effectiveness

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta

Constant 1.075 0.189 0.000 5.674 **

OTD 0.418 0.029 0.623 14.227 **

PA 0.011 0.050 0.015 0.228 NS

CB 0.017 0.038 0.027 0.452 NS

RS 0.076 0.053 0.071 1.448 NS

WE 0.186 0.051 0.235 3.677 **

R = 0.767

R2 = 0.588

F = 74.57 **

a. Dependent Variable : Organizational Effectiveness

b. Independent Variable: Orientation, Training and Development(OTD, Performance

Appraisal(PA), Compensation and Benefit(CB), Recruitment and Selection(RS) and Working

Environment-(WE)

A CRITICAL ANALYSIS OF HUMAN RESOURCE MANAGEMENT PRACTICES ... · A CRITICAL ANALYSIS OF HUMAN...

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