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 countries do not emphasize on effective HR systems due to which different issues arise. Likewise, Khilji (2003) stated that in organization culture of Pakistan, there are advanced HR practices that can be used by companies. In addition, he stated that due to presence of multinational companies in Pakistan, business concerns are trying to set modern trends of human resource.The baking sector of Pakistan is of great importance in improving the economy. In Pakistan, the banks are performing efficiently but are affected by internationaleconomicdisasters. It is highly important for the banking sector of Pakistan to focus on efficient HR practices for effectively managing the workforce. This research is conducted to study several HR practices in detail, that can be associated with increasing Job performance in banking sector of Pakistan. Reviewing HR packagesspecially in any culture discovers and unlocks new capabilities for the Human resources and their effectivesupervision.

The high performance work practices that are focused in this research work include employees’ participation in decision making process, evaluation of Performance as well as staffing along with Training opportunities that are relevant with the banking sector of Pakistan. The impact of these factors will also be studied in this study.

1.2. Justification of study

People management is considered to be an essential factor in every single organization.  Employees’ performance is considered highly useful in mediatingentire organizational performance. Thus, HRM practices are highly important in making the quality of services provided by organizations better. As per Pfeffer (1994), employee loyalty as well as commitment can be increased by focusing on high performance work practices, that can ultimately lead towards attainment of organizational goals. Furthermore, Boon et al (2011) were of the view that HRM can alsomake issues or can give solution to the problems for improving employees’ productivity. This forecasts that when human resource of abusiness is efficientlyhandled then it increases the involvement of workers in attaining organizational aims, and if the management is not effective then it can negatively affect overall company’s performance. Presently, the literature related with discovering the effectiveness of HRM practices in businesses is abundant. Specially, in past decade, the academicsextremely tried to find the relationship between HRM and performance, though the keyemphasis of research was in developed nations and in manufacturing industry. In this study, the effect of four high performance work practices will be evaluated, with respect to a person employed in banking industry of developing nation.

High performance work practices comprise of actions with the help of which capabilities of staff members can be improved. Variousstudies have been conducted and found that there is a positive relationship between high performance work practices and satisfaction of an employee, motivation as well as Job performance (e.g. Gould-Williams and Gatenby 2010; Katou and Budhwar 2010; Boon et al., 2011; Innocenti et al., 2011; Mendelson et al., 2011; Messersmith et al. 2011; Alfes et al., 2013). Though, the tools through which high performance work practices can influence Job performance are needed to be studied (Boon et al. 2011; Innocenti et al. 2011; Alfes et al. 2013). Varioustools have been projectedincluding trust (Innocenti et al. 2011; Alfes et al., 2012), emotionalbonds (Raeder, Knorr and Hilb 2012) and engagement of workers (Alfes et al. 2013). Person-organization (P-O) fit is another tool that was discussed by Boon et al. (2011). This tool is considered to be highly significant in OB but needed to beinvestigatedadequately, with respect to HRM (Boon et al. 2011).

In this research, the mediating impact of Person-Organization fit on relationship between high performance work practices and Job performance is examined. In this research, it has also been examined that how organizational culture can have an impact on the relationship, because organizational culture is very significant in increasing or decreasingJob performance (Chan et al., 2004). Lot of research work has been conducted to evaluate the relation between HPWPs and Job performance in various countries expect Pakistan. The study is conducted after examining the gap and the sample for this research is taken from Pakistan. The study has find out the effect of HPWP on job performance in countrywidesettings. Value in literature related with HRM will be added by this study.

The significance of this study is that this study will examine the influence of high performance work practices on job performance, both of them are important factors for companies. Several studies are present that are conducted to find out relationship between HPWPs and job performance, but, there is no study that has investigated the impact on organizational culture and Person-Organization fit in a joint approach. Some of the core articles, related with relationship of HPWP and Job performance are studied to conduct the research.  (Topcic et al., 2015) as well as (Boon et al., 2011) along with (Macky&Boxall, 2007) and (Boxall et al., 2015) are studied and work has been done on the basis of limitations. The past literature shows that there is an important andconstructiveinfluence of HPWPs on Job performance but it has not yet been recognized that how organizational culture improves the relationship of HPWPs and Job performance, and how the impact will be changed by including person-organization fit in study. both person-organization fit along with organizational culture can play an effective role in improving or decreasing the performance of an organization. Thus, the study will increase literature knowledge because it will be viewed that how companies can improve job performancethrough HPWP, by putting emphasis on culture of company and Person-Organization fit. Collectivistic Pakistani Context is focused for carrying out the study.The study will be useful to evaluate that how companies of Pakistan can improve their workers’ performance by concentrating on high performance work practices as well as P-O fit along with organizational culture.

1.3. Problem Statement

A problem statement has been identified on the basis of which this study will be carried out. In current business setting, human capital is considered to be highly significant for making an organization successful. In addition, human capital must have high performance level. The management of business experiences trouble in improving the performance of workers, thus, it must know different methods to improve employee performance for getting successful. The study is carried out to find out the effect of high performance work practices on performance of employees.

“The issue identified and discussed by research is that how high performance work practices can be useful in improving Job performanceassociatedresults.”

1.4. Research Objectives

The study aims to attain different objectives, as under:

• To recognize the importance of high performance work practices and their effect on workers’ output.
• To examine the function of organizational culture in enabling high performance work practices in business.
• To understand the significance of Person-Organization fit in relationship of high performance work practices and Job performance in collectivistic context of Pakistan(omit it)

1.5. Research Questions

The research is done to answer following questions;

• How job performance is affected by High Performance Work Practices?
• What role is played by organizational culture in improvement of Job performancewith the help of organizational culture?
• How important is Person-Organization fit for the relationship between high performance work practices and Job performance?

1.6. Theoretical and Practical Significance

This research will be useful to examine that how businesses of Pakistan can improve their workers’output on the basis of high performance work practices, P-O fit as well as organizational culture. The study will be carried out toincrease the literature by investigating the effect on HPWPs on Job performanceby focusing on the mediating function performed by Person-Organization fit as well as culture of business.  The primaryuniqueness of this study is that mediating role of Person-organization fit in the relationship between HPWP and Job performancewill be examined with respect to Pakistan. The connection between HPWS and performance has been criticized due to the fact that this connect is weakly descriptive. Formerly, numerousefforts have been carried out to realize the procedure that creates a connection between Job performance and HPWS. In recent times, academicsrecognized the research gap and they recommendedreviewing the procedurewith the help of two variables i.e. organizational culture and Person-Organization fit. Therefore, the most significanttheoreticinput of this study will be that the investigators and academicians will be capable to recognize the impact of HPWS on Job performance. Additionally, the recent studies conducted byRabl et al (2015), Demirbag et al (2014) and Richard et al (2013)indicate that implementation of HPWS differs in various settings.Thus, it is being recommended by different scholars to examine HPWS and performance relation in dissimilarsetting. This study will be one of the primary researches carried out in Pakistani context.

With the help of this research, the organizations of Pakistan can easily decide that either they should emphasize on Person-organization fit or not for makingJob performance better. Another important aspect of this research is that it will examine the role performed by organizational culture in improving the relationship between HPWP as well asJob performance. Thus, managers will get to know that whether they should focus on culture along with this will high performance work practices for makingJob performance better or not. Management will be capable to select the culture that will be helpful in making employees’ performance better. In addition, this research will be useful for managers to make decisions regardinghiring and selection process, people’s management as well as development and growth techniques and HR practices for ensuring P-O fit inside an organization.

1.7. Structure of Thesis

The study consists of 5 different chapters, in which different aspects are discussed. The primary or initial chapter of research is based on ‘Introduction’. In this part, the context of research is discussed and the developmentof high performance work practices with respect to business concerns is described. Moreover, this chapter includes research objectives and as well as problem statements.

In next section, literature review is included. In this, researcher has focused on past researches conducted by other scholars, related with high performance work practices and performance. This chapter includes relevant theories, with the help of which, study will be conducted. With the help of literature review, researcher has come to know the gap betweenpast and present researches.

Next chapter of the research is named as ‘Research Methodology’, in which the method or approach adopted to conduct study is discussed. Various approaches and methods are used for this study and these will be discussed and justified one by one, in chapter number three.

The subsequent chapter of this research is named as ‘Analysis and Findings’. This chapter includes discussion about analysis of collected data, to reach the findings. Different tests are included in this chapter, that have been conducted by researcher to find out results and to reach the conclusion.

 ‘Conclusion and Recommendations’ is the last chapter of this study. General conclusion is given on the basis of analysis, tests and findings. The researcher has explained that what are the results of this study. The findings will be included along with recommendations at the end of this chapter. The recommendations are related with improvement of HR practices inside banking sector of Pakistan. Future aspects of study are also discussed in this chapter.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER TWO: LITERATURE REVIEW

Second chapter is related with the findings and results of formerstudiesconducted on similar research topic. The researcher has tried to focus on different issues as well as findings of past studies for conducting the study. Old as well as current researches are focused by researcher for better understanding of the topic.

2.1. Relevant Theories

Resource Based View of Firm

According to Drucker (1954), human resource management plays an important part in maintaining the position of the company. Different business concerns that are earning profits are investing money for improving various functions of HR, including recruitment, rewarding, training and methods of worker’s engagement. On the other hand, companies try to reduce HR costs at the time of crises. The resource based view explains that the companies need to put emphasis on internal factors rather than external ones, for designing strategies for the business concern (Hoskisson, Hitt, Wan, &Yiu, 1999). On the basis of RBV, the companies consider that personnel are important in making organizations successful. Thus, it indicates that companies can make investments in various high performance work practices for improving workforce productivity as well as overall company’s achievement.

Cappelli and Singh (1992), focus on an examination of effects of RBV on human resource management practices. They suggested that typically the HRM models are built on rules. These include that a different set of approaches and conducts are required by strategy of company and a distinctive group of reactions from workforces are shaped with the help of HR plans.

As per view of Wright et al., (1994) that companies must focus on hiring and retaining those workers that have exceptional skills for making HR as a major factor leading towards competitive advantage. Companies can get edge over rivalry due to imitate and skilled workforce. In case, when workers of company are very brilliantwith high motivational level then they are able to perform high performance work practices and get competitive edge over rivalry.

On the other hand, Lado and Wilson (1994) stated that sustainable competitive edge can be achieved by companies with the help of effective HR policies. Researchers conducted an analysis to find out the impact of HR function of business concern on organizational competences. The researchers suggested that HR systems must be unique and able to improve the organizational capabilities. Companies must set unique and different high performance work practices to get an edge over rival players in the market.

Theory Z (Organizational Culture)

For finding out the commonalities or similarities in business concerns, Ouchi (1993) analyzed high performance companies. Ouchi became successful in proposing Theory Z. this theory is related with Theory X and Theory Y, that were proposed by McGregor in 1960. However, Theory Z is different from other theories. Researcher has tried to emphasize on function played by organizational culture for handling human force inside a business concern and its effects on performance or productivity of workers.

As per Theory Z, it is important for corporations to focus on the culture that helps in improving employment, participation of workers in decision making process as well as huge accountability of person, comfortable control systems along with personal and professional growth and high commitment. Companies that try to apply Theory Z emphasize on skills improvement as well as workforce’s involvement in decision making process. Thus, it indicates that companies focusing on Theory Z can lead towards individual as well as overall company’s performance.

Goal Setting Theory (Performance Evaluation Systems)

            The Goal Setting Theory explains that the anticipation and existence of outputs will be greater if the management becomes successful in setting challenging but SMART aims. (Austin & Klein, 1996; Locke & Latham, 1990, 2002). Mainly, it is assumed in Goal Setting Theory, that aims and strategies are produced by conduct. As a consequence, it is considered that the performance or productivity of workforce is effected by the set goals and aims.

            Theorists are of the view that, easily attainable objectives must not be set for increasing input and productivity or performance of workers. The workers perceive that they must be given challenging but SMART goals or objectives. The achievable aims have a positive connection with performance as well as better outcomes. Mento, Klein, &Locke (1992), were of the view that outcomes can be considered as external if related with pay, opportunities or job facilities, but are internal if they are related with inner sense of attainment or accomplishment.

            This theory describes that the set goals should be specific in nature but not commonones. According to Latham &Seijts, 1999; Locke, 1996), in challengingresponsibilities, effectiveness lies in ‘do your best’ attitude. In addition, workers’ commitment is considered to be highly useful in improving the connection between performance and set aims. Employee commitment can be improved by focusing on goal accomplishment and enabling the workforce to believe that set goals can be attained by them. Furthermore, this theory states that management must focus on providing reliable and appropriateresponse and performance assessment to workersfor making performance better (Locke & Latham, 2002).

ASA Framework

ASA framework was provided by Schneider in 1987. It stands for attraction as well as selection along with attrition, and is useful in describing the ways through which high performance work practices can influence fit between workforce and business concern (Boon et al., 2011). P-O fit is effectively explained by ASA framework. ASA framework is helpful for business concerns in attracting as well as selecting and retaining workers that have specificindividualities fit with the businessconcern (Schneider, et al, 1995). Workforce is attracted by business concerns on the basis of keystandards and goals of business. workers are selected by companies by focusing on informal as well as formal approaches.Lastly, it is found in the study that workers leave the business concern if they find no fit between individual and business principles and goals. Schneider (1987) was of the view that it is important for companies to design a Person-organization match between worker and business concern before selecting employees, in this way the workforce’s performance can be improved with the help of HPWPs.

2.2.High Performance Work Practices

High performance work practice is considered as an old idea in HRM as it is an effective method to manage personnel inside a business concern. The definition and characteristics of high performance work practices are not distinguished (Jiang et al., 2012). The view of various scholars for HPWPs is different. However, the meaning of HPWPs is similar as stated by Ramsay et al. (2000). As per view of Purcell (2006) HPWPs are important factors for managing high commitment workforce. The word high-performance work organizations were given by Kalleberg et al (2006). Goals and purposesof these words are considered to be similar. HPWPs are considered asactions of HRM that can be helpful in improving the organizational performance (Aston and Sung, 2002). Turner et al., (2008) were of the view that HPWPs are the ways through which the capability of HR to increase organizational performance can be described. The study conducted by Sung et al. (2005) showed that there are large number of HPWPs present, including high involvement practices as well asHR practices along withpractices conducted to reward or obligateworkersinside a business concern. As per view of Posthuma et al., (2013) high performance work practices are considered to be the actions, with the help of which, performances, inspiration and workforce productivity can be improved. The definitions and descriptions regarding HPWPs show that these are the actions with the help of which capabilities of workforce can be improved and organizational effectiveness can be made better (Huselid, 1995).

There are 26 types of HR practices proposed by (Boselie et al, 2005) and these can be categorized in small groups. As per view of Pfeffer (1998) and Fey et al. (2009), various HR practices can be classified in 6-7 categories. It is good to apply two or three HPWPs inside a business concern.Companies focus on HPWPs including staffing and employing, developing workforce, managing organizational performance as well as team management (Browning et al, 2009; West et al, 2002; Kroon & Van De Voorde , 2013; Gould-Williams and Mohamed, 2010), knowledge transfer (Bruce, 2013; Kuvaas and Dysvik, 2010), workerauthorization (Kuvaas and Dysvik, 2010) and recompense (Boselie et al, 2005; Boxall and Macky, 2009; Bruce, 2013). It can be easily analyzed that which practice is more important by focusing on its effect on workforce performance level (Park et al, 2003). Only those activities can be considered as high performance work practices that enable constructiverational about HR practice (Gould-Williams and Mohamed, 2010).

2.2.1. Participation in decision making and Job performance.

Workforce can be motivated through empowerment and as a result its performance is improved, causing direct and indirect management cost to decrease (Wood and Wall, 2007). The skills as well as capabilities of workforce can be improved by focusing on empowerment and employee participation in decision making process (Collings et al., 2010). According to Humborstad et al., (2008) the effect of empowerment and participation of workers in decision making process is positive on staff performance. As per Tsai (2006) workercan work better in the form of team as well as decentralized structure. Employees can attain set objectives as well as goals by working with others as a team member. According to Tata and Prasad (2004) decentralization as well as self-managed teams are basic factors behind successful high performance practices.

In the view of Blau (1964) the impact of decentralization on time as well as flexibility is positive and both can influence the performance of staff members. As per Collings et al., (2010) human resource practices can play a vital role in organizational improvement andattainmentof competitive edge over rivalry.

H1: There is significant impact of participation in decision making on Job performance.

2.2.2. Performance Evaluation Systems &Job performance.

In the view of Guest (1977) compensation as well as performance assessmentcan increase the motivation of workforce. Typically, useful compensation systems have a connection with performance of business concern and they can improve the performance of company (Gomez-Mejia and Wiseman 1997; Becker and Huselid 1998), thus leading towards improved workforce performance (Gomez-Mejia and Wiseman 1997). Though, the connection between performance assessmentscheme and Job performance is more obvious in cultures that are highly performance oriented (Aycan 2005). In addition, it was stated by Wang et al. (2011) as well as Mellahi et al.(2013) along with Gurbuz and Mert (2011), that performance assessmenthas a positive impact on performance of an individual as well as business concern.

H2: There is a significant impact of performance evaluation system on Job performance.

2.2.3. Training and Job performance.

Business concern can make its HR better by focusing on continuous learning of human capital (Becker, 1975). The past studies have indicated that the effect of continuous learning of staff members on Job performanceis positive (Delaney and Huselid, 1996). It is important to relate training with systems of professional growth for making staff’s performance better (Bowen and Ostroff, 2004). Staff members consider training highly important and think that they are valuable for their company (Katou&Budhwar, 2007). Thus, continuous learning and development can make workers highly committed (Lawler, 2005). It is significant for staff members to make investments in training and ongoinglearning of workers to improve their productivity. Huge training and development opportunities provided to workforce not only improve workers’ performance but also increases corporation’scompetence of appealing, retaining and encouragingworkers (Dysvik and Kuvaas, 2008).

It is significant for every business concern to focus on education and learning of staff members. In this way, they will become capable to improve their professional skills by getting new information and knowledge of systems, thus leading towards improvement in performance of staff members(Bailey et al., 2001). Well-trained workers can be highly useful in increasing the performance of business concern and management should focus on checking the workforce. With the help of continuous training, development and learning opportunities, staff’s performance as well as their behaviors can be improved (Ranasinghe, 2013). Continuous learning is a procedure that is useful in polishing the abilities of personnel and also for altering the outlooks and actionsto improve performance of entire organization (Naris &Ukpere, 2009).

            Phenomena including training and learningcan make an organizational performance better Qureshi et al. (2010). This is considered to be an action with the help of which individual’s performance can be improved and it acts like a process for improving organizational performance, and helps in goals attainment (Khilji, 2004). According to Naris and Ukpere (2009) training and development as well asJob performance have a positive connection.

H3: There is significant impact of training on Job performance.

2.2.4. Staffing and Job performance

staffing is considered to be a useful human resource practice, with the help of which business concerns can recognize the potential candidates. There are different techniques and methods of staffing for recognizing the most competent candidate for the business concern (Huselid, 1995).  A specific staffing system or technique is used by business concerns to screen the candidates. The system is used to identify potential candidate on the basis of his/her behavior, personality as well as interpersonal competencesthat have an impact on the social integration and relationships development of person (Judge et al, 2002). Staffing is to be performed by the business concerns as a significant HR practice. Staffing has an impact on motivation as well as staffcommitment. The candidate must be selected by company rationally, without any kind of biasness or injustice by business concern (Ployhart et al, 2006).

H4: There is significant impact of staffing on Job performance.

2.3.Person-organization fit as a mediator between HPWP and Job performance

Person-organization fit is considered to be highly useful aspect in business world and large number of researches are done on this topic. P-O fit is useful in retainingdiversified and dedicated human assets.  The dedicated as well as highly devotedstaff is significant for business concerns to persist in this modest business era (Cable and DeRue, 2002). The similarities between business concern and its staff members is indicated by P-O fit (Kristof, 1996). P-O fit is considered to be a state which includes the similarity between goals, values, objectives, standardsof individual with situation, objectives, standards and setting of abusiness, that lead towards positive Worker outlooks and high performance of staffs (e.g. Schneider, 1987; Kristof, 1996). Tom (1971) has described the basis for P-O fit and he stated that P-O fit is harmony between main characteristics of persons and business concerns.

As per study of Chatman (1989) Person-Organization fit is useful in identifying the similarities between company and personnel values. The research of Chatman (1989) in which he focused on evaluation of the value which is consistent to some individual and his business, this value fit is considered as P—O fit (Kristof 1996; Verquer, Beehr and Wagner 2003). A significant issue that is useful in matching the workers with the businessconcern is considered to be is High Performance Work Exercises. Different types of HPWPs including training, growth, development, learning, rewarding as well as evaluation, hiring and selection can reveal about the prospects and values of the business to the staffs, that ultimately lead towards P-O fit (Boon et al. 2011). In the view of Carless (2005), the fit between objectives and goals of company and those of candidates explain the concreteneed of the business concern. It was stated by Cable and Judge (1997) the person taking an interview from candidate can keep in mind the Person-Organization fit for selecting the applicant. This research was based upon the responses of applicants rather than employed staff members. In the view of Autry and Wheeler (2005) stated that there is a positive connection between training of newly selected employees and Person-Organization fit of company. Presently, Boon et al. (2011) specified the connection between Person Organization fit and HR practices in an important country i.e. Holland. The findings of their research showed that there is a positive relation present between P-O fit and HPWPs. Similar kind of approach is used for the study.

H5: Person-Organization fit will significantly mediate the relationship between participation in decision making and Job performance.

H6: Person-Organization fit will significantly mediate the relationship between performance evaluation system and Job performance.

H7: Person-Organization fit will significantly mediate the relationship between training and Job performance.

H8: Person-Organization fit will significantly mediate the relationship between staffing and Job performance.

2.4. Organizational culture as a moderator between HPWP and Job performance

Organizational capitalhas an important type which is known as organizational culture (Barney,1985; Camerer and Vepsalainen, 1988). In the view of Schwartz and Davis (1981), the capability of a business concern to meet its aims and objectives is effected by organizational culture, mainly at the time when company’s strategies are being changed by management.

Denison Model of Organizational Culture

An important research was conducted by Denison and Mishra (1995) on the basis of data of 760 US companies and tested the culture model. The culture model consists of4 characteristics which are known as involvement as well as adaptability along withmission and consistency. The four trait model has been shown in the figure with the help of 2x2 matrix. external orientation against internal integration and change as well as flexibility against stability direction are indicated by matrix, given below:

Source: Dension& Mishra (1995)

In the above matrix, involvement trait is located in quadrant of ‘change and flexibility’ and ‘internal integration’. It indicates an opportunity given to organizational workers to take part in decision making process and similar types of actions. consistency factor is included in the quadrant of ‘internal integration’ and ‘stability and direction’ in the above matrix.

Business concerns that focus on consistency trait are highly committed towards their work and emphasize on consistent strategy. It can be seen in the matrix that the ‘external orientation’ is stressed by mission and adaptability traits. The response given by a business concern towards any change in external factors is considered as adaptability. The purpose of ‘mission’ characteristic is to indicate the stability level of a business concern. It indicates that the external factors have an impact on the direction and probability of corporation. On the basis of particular measures of corporation’s performance, Denison and Mishra (1995) stated that if the 4 traits explained in the matrix organizational culture supports the company then its performance can be improved.

In the view of different researchers, high performance work practices are not enough to improve the company’s performance but its culture must be supportive and useful to improve the skills of workforce. On the basis of various administrative values and customs, it is found that organizational culture can directly or indirectly influence decision making processes for resource allocation and investment of business concern (Deal and Kennedy, 1982). Thus, if organizational culture is not supportive then management cannot improve the performance of workforce, solely on the basis of effective HR practices. Skills can be developed and learning can be improved on the basis of directions provided by culture of company, resources can be easily allocated and positive attitude of employees as well as work commitment and involvement of employees can be enhanced (Hamel and Prahalad, 1994; Denison and Mishra, 1995). There is a significant impact of organizational culture in improving the competency of business concern to retain motivated workforce (Sheridan, 1992). According to Powell (1995) culture is not only needed to perform obvious practices, inside a firm. The organizational culture is considered to be highly useful in increasing workers’ involvement, improvement of high performance work practices and results in effective two-way communication with workers and planning various programs for improving involvement of workforce (Dessler, 1994). If there are no communication programs present inside a business concern, then employees cannot be effectively involved in decision making process. Performance appraisals are considered to be effective in improvingparticipationand commitment of workers. According to Huselid (1995), consistency is required for performing high performance work practices to get better output. If a company becomes successful in implementing consistency in HR practices, then employee participation as well as career and skill development can be increased, and will lead towards formation of high performance work setting.

H9: Organizational culture will significantly moderate the relationship of participation in decision making and Job performance.

H10: Organizational culture will significantly moderate the relationship of performance evaluation system and Job performance.

H11: Organizational culture will significantly moderate the relationship of training  andJob performance.

H12: Organizational culture will significantly moderate the relationship of staffing and Job performance.

2.5. High Performance Work Practices and Job performance

Paauwe (1998) and Guest (1997) were of the view that performance is challenging phenomena to define. The degree to which high performance work practices can effect performance of workerscannot be evaluated easily (Guest, 2001). Performance cannot be measured against a single HR practices. As per view of Legge (2001) an effective process is needed to understand the relationship between performance and human resource management.

There are large number of studies conducted regarding HPWPs and HRM (Chaudhuri, 2009). HPWPs are considered to be highly effective in decreasing the costs of workers and increasingoutput, that lead towards improvedeconomic productivity of business (Huselid, 1995). It was stated by Bashir et al. (2011) that HPWPs are highly useful in making workforce satisfied. As per view of Guthrie et al. (2009) high performance work practices can lead towards effective human resource results.

A research was conducted by Huselid (1995) by collecting cross-sectional data from 100 workersemployed in public sector organizations.Researcher focused on 13 different practices, related with work activities and workers’ participation. Huselid (1995) focused on factor analysis to measure the extent of using various high performance work practices. Findings showed that there is negative relationship between HR practices and rate of employee turnover, while a significant positive relationship existsbetween HR practices and productivity of workers. However, the research was not able to explaincomplete financial situation of companies and there was no significant relationship between return on assets and workers’ incentives.

Combs et al (2006)conducted a study to find out the effect of employee involvement and compensation plans for workers on value addition by worker. The sample was taken from Michigan production corporations. The findings indicated that through effective HR Practices, salaries can be increased but their impact is less than the influence on value addition by workers. Becker and Gerhat (1996) stated that companies can use a single method for managing their workforce. In addition, employees can be given authority to make decisions or take part in different actions or process. As per contingency model, performance of business can be made better by focusing on particular practices. Sikora et al., (2015) have focused on instinctive appeal in contingency model, and it is explained clearly that why different work practices must be emphasized by companies for capturing the core idea of high performance work practices in particular business sectors.

Companies can improve performance of staff members via high performance work practices by focusing on two processes. Primarily, employees are motivated by providing essential information to perform different roles, given to them (Shaw et al, 2001). Furthermore, the coordination and communication within staff members is increased by improving the internal communal structure of corporations with the help of high performance work practices (Evans and Davis, 2005). This increases the satisfaction level of staff members. This process is highly useful in decrease the staff’s turnover rate and improving the company’s performance (Tregaskis et al, 2013).

Though, various practices can lead towards low performance. When two practices are similar or can be substituted with each other then one of them will be totally useless. When one practice is substituted with another then the implementation expense of the later exercise is in factuseless (Delery, 1998). In addition, practices can be highly ineffective when they in fact work oppositely. For example, this can happen with a team whose compensation is based upon performance of members (Delery, 1998). It is ensured by SHRM academicians that HPWPs systems are designed in a way to increase performance of both company and workforce. Effective HPWPs can lead towards organizational commitment as well as satisfaction of workforce.  On the other hand, Wright and Boswell, (2002) were of the view that in case of   I/O psychology study and sufficient micro-HR dealing with the connection between the worker leveloutcomes and HR practices, the evidence of study for different number of such exercises is in factreduced. The study of Alfes et al (2013) indicates that HPWS exercises are connected with providing workers an opportunity to take part in decision making process can lead towards increased commitment of the business concern for employees of medical electronics and steel. However, the connection was present due to increasedintrinsic and management incentives. It was identified in an investigation that high-involvement work practices positively influence equity, workers’ turnover as well as workers’ satisfaction and commitment (Luthans&Sommer, 2005). This study included 3,570 respondents from 49 different business concerns. On the basis of index of highly recommended practices of HR, it was identified that the workers that focus on large number of practices are more contended and satisfied (Guest,1999). Likewise, Wright et al. (1994) found that high scores on index of HR practices are due to high level of workers’ commitment. On the basis of theory of social exchange, Whitener (2001) used a linear model and found that trust as well as workers’ commitment is high if the management is understanding.HR practices used by companies were influenced by such assumptions that is why, HR practices are used to build workers’ behaviours.

Wright et al. (2005) tried to find out an association between HPWPs and job performance by collecting data from 45 Food companies, operating in US and Canada and US. Data related with year 1998- 2000 was used by researchers. Findings showed that HPWPs are useful in making staff capabilitiesbetter. In addition, good HR practices including effective work setting, development programs, reward systems as well as HR policies can positively influence the behaviour of staff members. Thus, the general performance of business is also intenselyalteredin terms of profits as well as revenue.

Financial as well as non-financial performance of business concerns is positively influenced by training. P-O fit plays an important role in building positive relation between training and performance of business concern. Fit between individual and business concern is essential to improve organizational performance (Khilji, 2001).

2.6. Theoretical Framework

 

 

 

 

 

 

CHAPTER THREE: RESEARCH METHODOLOGY

In this chapter, the method used to carry out this research will be discussed. This is the main part of research and generalizability and validity of study is included in it. Study can be reliable if effective methodology is used by investigators. It is an important decision for researcher to select the most appropriate methods to carry out study. Researcher must ensure that different parameters and vitalcharacteristics of research have been used. The justification for methodology and detail will be discussed in this chapter. The methodologies are discussed in detail for backup ofchose approach.

3.1. Research Philosophy

The whole base of research is laid down through the philosophy of study. This whole study is based on philosophy of research. The researchers get guidance through philosophy for developing the most appropriate methods to complete the study. The knowledge is developed through the philosophy during study

Researchers can use different kinds of philosophies to carry out study. In this study, researcher has used positivism philosophy. It is an effective philosophy and helpful in carrying out reliable analysis for research. Researcher has focused on using highly organized methodology (Saunders et al, 2009). Data is collected and thehypothesis are tested against statistical analysis of data. The methodology and approach for research is selected after careful planning. Researcher has selected positivism philosophy to reach to the conclusion, on the basis of collected data.

3.2. Research Approach

            The validity and generalizability of study can be known with the help of selected method or approach. It is important for researchers to either focus on qualitative or quantitative approach. Both of the methods/approaches have pros and cons.

Social science researchers focus on qualitative approach. In case of empirical researches, qualitative method can be used. Researcher has focused on qualitative analysis by using qualitative approach. On the basis of this philosophy, the investigator has to describe different things, actions and items. One of the major benefit of this approach is that the researcher can use more than one method to collect and analyse the data. Researcher can get in-depth information by focusing on qualitative research approach. Researcher can get huge information and knowledge through qualitative approach. On the other hand, researcher can show biasness towards participants in data collection and analysis process and ultimately the results can beinaccurate (Pride et al, 2008).

Most of the times, quantitative approach is used in case of economics and finance studies. Different researchers from social sciences are adopting quantitative approach for conducting research. In this approach, data is used and analysed in a quantified manner. Quantified variables are used in case of quantitative research method. Variables are quantified on the basis of various evaluation procedures. This method is highly reliable because of quantification factor. The results attained through quantitative research method are considered to be reliable and can be generalized easily. An advantage of quantitative research method is that it decreases the level of biasness and the results are accurate (Bryman and Bell, 2007).

 

In current study, researcher has used quantitative research approach. This method is used because of its proficiency of decreasing the level of biasness. Moreover, researcher can get reliable as well as generalizable results through quantitative research method (Zikmund, 2003). It was impossible for researcher to focus on both qualitative and quantitative methods at a time because of time and cost constraints. Researcher has adopted quantitative method because of lack of funds and time constraints.

3.3. Data Collection

Data is considered to be highly useful factor for conducting any research. It is helpful in reaching the findings and conclusion. If the collected data is reliable then there are huge chances that research findings will also be reliable. While conducting the current research, different parameters for data collection are focused and met. Researcher can focus on different types of data on the basis of nature of study or research goals. The basic 2 types of data are as under:

• Primary Data

It is also famous as first hand data because it is collected for the very first time by the researcher. This type of data does not already exist. It is collected for conducting the research and acts as a base for study. It is specific and particular data, related with specific research. As primary data is relevant for particular research thus it cannot be used for another study. That is why, it is also named as pure data. It is important to note that the primary data may not be accurate as it is gathered by human beings, for the very first time. Thus, it may not be reliable one and biasness may be present. For taking control over biasness issue in primary data, researcher can use reliability as well as validity tools and techniques (Aakeret al., 2007).

• Secondary data

It is the data that is already collected by another person. This is easily available and accessible. It is very different from primary data and this can be used for future studies as well. In addition, there is no biasness in secondary data and is considered to be accurate. It is important to note that there can be certain issues regarding secondary data. For example, secondary data collected from an unauthentic website may not be correct or accurate.

The study of Saunders et al., (2007)indicates that researcher can get required information out of primary data that with the help of primary data. Thus, the study is dependent upon primary data. Researcher can use different methods or approches to collect primary data. These methods include interviews, focus group as well as discussions along with questionnaire. Questionnarie has been used by the researcher to conduct present study.  As per view of Sekaran and Bougie (2010) primary data is considered to be highly useful and can be easily managed by researcher, but new sources are used to collect it. On the basis of importance of primary data, researcher of current study has decided to focus on primary data. However, some cons are also associated with primary data, for instance, huge amount of money is required for collecting primary data, participants may not be willing to provide information, too much time needed and the collection method is difficult to manage. These issues are kept in mind by the researcher while conducting study. As it is a cross-sectional research thus data is collected for once.

3.4. Population

Employees working in banks of Pakistan and Islamabad are taken as population. In Pakistan, the Banking sector is one of the most developed sector but still have a potential to grow. Service sector is selected for the study. It is highly important to hire and retain competent and innovative workforce by banks to become successful and developed. Banks can retain its workforce by fulfilling its requirements and needs.

3.5. Sampling Design and Technique

As per Uma and Roger (2003)it is highly important to select the most appropriate sample design and techniques to find out the reliability of data. This consists of methods, with the help of which, sample can be selected and truly represented. The population and sample must be selected on the basis of certain standards. Researcher can find some issues in selection of sample frompopulation. While conducting this study, researcher faced time restrictions and focused on purposive convenient sampling technique. The researcher has avoided probability sampling because it needs lot of time and finance. By focusing on purposive convenient sampling, the sample from the population of banking sector of Rawalpindi/Islamabad is chosen. If there is an issue regarding time or funds, then researcher must go for purposive convenient sampling method (Cooper and Schindler, 2007).

            It is highly important torecognise target population and to pick sample from it at designing stage of research (Cooper and Emory, 1995). The sample size selected for this study is 320 respondents, belonging to the banking sector of Pakistan and working in Rawalpindi and Islamabad. Researcher has selected the sample on the basis of findings of Sekaran (2003). As per finding, sample size of not less than 30 and not greater than 500 should be selected. 63% is the response rate of this study, thus,data for 200 respondents was collected.

3.6 Research Instrument

Adopted questionnaire is used for gathering data. It is known an instrument and used to study the variables, included in study. The number of items included in the questionnaire are 31. The items are associated with seven variables, used in research. Four of the variables are independent, one is dependent as well as one is moderator and other one is mediator in the study.

In researches, proper measurement scales must be selected. If an accurate measuring scale is selected in study, then the chances to get accurate scores are also high. five point likert scales is focused by researcher for this research. There are five options given to the participants, starting from ‘Strongly Disgaree’ and ending at ‘Strongly Agree’ option. Some of the questions are related with demographics as well to analyse demographic characteristics of participants.

3.7 Reliability and Validating

The current study is dependent upon questionnaire, thus the validity and reliability of instrument is very important. The issue of misinterpretation of results can be faced by the researcher. Validation procedure is considered to be highly effective in assuring that the data is clear and the findings are aligned with findings of past studies. Pilot study is focused by the researcher for making sure that data is reliable. On the basis of pilot study, the items were altered or detachedconsequently.

3.8 Pilot Study

In the view of Zikmund (2003) pilot study is considered to bea useful phenomenon focused for pre-test on instrument, used in study. For example, when the instrument used in study is questionnaire, then in pilot test will be conducted on a small sample before gathering data from entire sample. Furthermore, in the view ofVeal (2006) pilot study is useful in examining the relations, order, arrangement, time of accomplishment and procedure of questionnaire analysis. In this study, Pilot study is conducted for 45 participants on random basis. Researcher has used SPSS to check out the reliability of instrument. As per view of Pallant (2005), the Cronbach’s alpha value should be more than 0.7. in addition, if the value is less than 0.3 then it indicates that certain issues are present in questionnaire. Thus, the factors causing issue or problem should be changed or removed. Researcher has carried out pilot study for improving the questionnaire’s design. Participants gave comments regarding the questionnaire and these comments were appreciated by researcher.

3.9 Pilot Results

Table 1:Reliability Statistics of Pilot Testing

Dominant Variable	No of Items
		Adopted From	Cronbach’s alpha
Participation in Decision Making Performance Evaluation System Training Staffing Person-Organization Fit Organizational Culture Job Performance	4 3 3 3 5 7 6 6	Patel et al (2013) Patel et al (2013) Patel et al (2013) Patel et al (2013) Patel et al (2013) Becker &Kernan (2003)	0.664 0.600 0.660 0.670 0.708 0.600 0.464

The above table shows the revised values gained by conducting pilot study to check the reliability of instrument. Cronbach alpha’s value should be more than 0.6, thus, items having alpha’s value less than 0.6 were altered or removed.

3.10 Data Analysis

For this research, researcher has used SPSS and focused on descriptive analysis of collected data. Not only descriptive analysis is used in this research but researcher has focused on regression as well as correlation along with reliability analysis. These analyses are conducted to get to know about relationship between independent and dependent variables.

3.11 Ethical Considerations

It is highly important to keep in mind the ethical norms and values while conducting any study or research. There are different ethical standards that must be considered by researcher. For carrying out this study, researcher has focused on various ethical standards and norms. The researcher has made sure that none of the participant is personally identified and the information regarding sample is kept confidential. The participants or sample of this research were not pressurized to provide information at any cost. They willingly provided the information. The participants were given proper time for filling the questionnaire in relaxed way. There was no biasness shown towards any participant in current research.

 

CHAPTER FOUR: RESULTS

This chapter includes the testing of the hypothesized relationships of the variables of the present study. The regression analysis is used to test the aforementioned hypothesis. Finally the results were presented and discussed of the variables under study.

4.1Data Preparation

4.1.1Common Method Variance

Common method variance or common method bias is a serious problem in survey approach as it has serious consequences on the empirical results of the study. According to Ho, (2006) it is defined as the variance that is attributed to the measurement rather than the construct that what actually assume to present. Therefore it is necessary in order to generate reliable empirical results there is a need to reduce the common method variance. In order to take in to account this potential problem in the present study both the ex-ante approach and ex-post approach are used to reduce this major problem.

The ex-ante approach is taking common method variance problem at the design stage. Therefore, the questionnaire is designed with great care before dispatching it to the respondents. An introductory paragraph was written for the respondents in order to ensure that they can easily understand the approach. Next the questions are modified in to more understandable language however it was also ensured that they do not describe other meanings. Finally reverse coded items were used as well in order to reduce the common variance and Sekeran (2006) incorporated a large sale size also helps to reduce the common method bias.

The second approach is the ex-post approach which is post design approach. The Richardson et al. (2009) argued that this approach is the co-relational marker technique; this approach identifies the full collinearity test and also signifies the convergent and discriminant validity of the construct. Harman’s single factor test is the most common and prescribed technique identifying that single variance is not determining complete variance in the data set.

4.1.2Data Screening

The data needs to go through a proper screening process before it is ready for final analysis. The data screening is done in order to check for the missing values or outliers if any. From outlier analysis, the data conformed to expectations regarding extreme scores. It was anticipated that minimum value of z-score for all cases was -1.05 and maximum was 1.88. No cases revealed z-scores value above than +3, which indicates that thee data was free of outliers (Field, 2005). The current study contain no missing values and no outliers.

4.1.3Data Coding

Before entering data in SPSS we need to code data. Data coding means that each answer should be identified and classified with a numerical score or some other character symbol. In this study, demographics which consisted of different questions and they were coded before analysis.

4.1.4Data Normality

Data were standardized and tests were conducted to assess of the assumption of normality. For normality assumption, P-P plots were plotted which shows that data was normally distributed. The sample size adequacy assumption was satisfied as sample size of our study meets the requirement of Krejcie and Morgan (1970), and a sample size 320 is large enough to explain relationships.

4.2Demographic Analysis

The demographic analysis of the following study reveals that respondents completed the questionnaire majority belong are male 78 % and only 22% forms were filled from female respondents. The respondents’ age ranged from 18 to 35 years having experience of 1 to 5 years (20 %) and the 26 to 35 having experience more than 6 to 10 years (40%) whereas rest 30% having more than age of 36 years and above 10 years’ experience. Mean and standard deviation of the demographics variables are presented in table 1.

4.2.1Descriptive Statistics and Inter-correlations

The next analyses were to calculate the descriptive statistics of all underlying variables used in the study. Descriptive statistics for all variables, including means, standard deviations, maximum and minimum are presented in Table 1. Internal consistency reliability analyses were conducted and cronbach’s alphas were determined. All of the variables were over the recommended minimal internal consistency reliability threshold of .80 (George, 2003). The correlations amongst the variables were examined and are presented in table 2, showing no multicollinearity. Cronbach’s alphas for the variables in this study are presented in Table 2.

4.3Average Variance Extracted and Composite Reliability

The average variance extracted is an appropriate method of assessing the convergent validity. It is defined as the amount of variance the construct demonstrates in relationship with the associated errors (Costello, 2009). Following formulae is used to assess the average variance extracted.

AVE = Summation of squared factor loadings/ (summation of squared factors loadings) (summation of error variance)

The composite reliability is used to assess the reliability. The factor loadings in the composite reliability are the correlation of each factor.

CR = the squared sum of standardized loading / the squared sum of standardized loading + the sum of the variance that is caused because of the associated random measurement

The AVE and CR of the present research are indicated in the table 2 of inter correlation between variables. All the values of AVE and CR are in the acceptable range.

 

 

Table 1 Descriptive Statistics
	Variables	Min	Max	M	SD
1.	Gender	1	5	1.22	.411
2.	Age	1	5	1.60	1.11
4.	Experience	1	2	1.24	1.16
5.	Education	1	5	2.07	.011
6.	Job Performance	1	3	1.00	.632
7.	Participation in decision making	1	5	2.90	.711
8.	Performance evaluation system	1	5	1.11	.015
9.	Training	1	4	2.87	1.34
10.	Staffing	1	5	1.09	1.49
11.	Organization-person fit	1	4	2.91	.321
12	Organizational Culture	1	5	2.99	.219
Note: N = 320

 

 

 

Table 2 Inter-correlation between variables
	Variables	1	2	3	4	5	6	7	8	9	10	11
1	Age
2	Gender	-.110*
3	Education	.091***	-.258*
4	Experience	.992***	-.167	.278***	-.076
5	Job Performance	-.232	.025	-.548	.099	-.041	(.89)
6	Participation in decision making	-.884**	-.122	-.100	.040	-.053	.349***	(.92)
7	Performance evaluation system	-.128*	-.018**	-.315**	.046	-.061	.691**	.934*	(.91)
8	Training	-.897**	.099	-.158	.024	-.101	.706***	.728*	.392**	(.89)
9	Staffing	.037	.002	.069**	-.018	.017	-.657***	-.967***	-.279**	-.597**	(.91)
10	Person-Organization fit	-.097**	.021	-.017	.008	-.031	.369***	.021***	.987***	.247***	-.694***	(.86)
11	Organizational Culture
	CR					.943	.967	.913	.874	.800	.833
						.713	.713	.934	.914	.814	.721
Note:*p <.05, **p <.01, ***p <.001; values in parentheses represent reliability measures (Cronbach’s alpha); AVE = Average Variance Extracted > 0.5, CR = Composite Reliability >0.7; N= 345.

 

 

 

 

 

 

           

 

 

4.4Confirmatory Factor Analysis

Confirmatory factor analysis in AMOS was used to assess the measurement model’s overall fit and comparing the proposed model with the independence (null) model. As CFA is a powerful tool for exploring the nature of and relationships among the variables under study (Jackson, Gillaspy Jr, &Purc-Stephenson, 2009). CFA produces different goodness of fit models we use absolute and incremental fit indices. The absolute model fit measure the degree to which the proposed model fit predicts the observed covariance while the incremental fit indices compare the proposed model with independence or null model (Ho, 2006). Each model fit of both indices also present positive and negative features therefore, certain measures are necessary to ensure appropriate results.

The table 3 is showing that estimates for all of items pertaining to each under study variable are significant that is P-Value 0.01.The CFA indicates the results of absolute indices, the chi-square goodness of fit test shows that (χ2 / df= 845.142 / 478 = 1.768, p < 0.01) whereby if χ2 / df< 2 meaning that the model fit. Moreover, the Goodness-of-fit index (GFI) = .843 i.e. the close to or > 0.90 the better is the model fit and the Root Mean Square Error of Approximation (RMSEA) = .51 although the value of 0 shows perfect fit but different researchers argued that it is unrealistic to obtain hence its must fall within the range of i.e., 0.5 to 0.8 to indicate better fit. Next assessing the incremental fit measures the satisfying cut of value for incremental fit indices is close to or > 0.90 will indicate a better model fit of the data, the Incremental fit index (IFI) = .958, Tucker-Lewis index (TLI) = .954, Comparative fit index (CFI) = .958 the remaining possible models (range: 0.06 to 0.08) will have a little practical significance (Table 4). Therefore, the results of confirmatory factor analysis are indicating that our hypothesized is good fit.

 

 

Table 3. Confirmatory Factor Analysis
Codes	Variables	Estimates
Participation in decision making
A1	In my organization employees are involved in decision making	.947***
A2	In this organization employees are allowed to make decision	.880***
A3	In this organization employees are provided the opportunity to suggest improvements in the way things are done.	.863***
A4	The organization keeps open communications with employees.	.814***
Performance Evaluation system
B1	In this organization performance is more often measured with objective quantifiable results.	.822***
B2	In my organization erformance appraisals are based on objective quantifiable results	.962***
B3	Employee appraisals of organization emphasize long term and group-based achievement.	.925***
Training
C1	In this organization extensive training programs are provided to employees	.867***
C2	In my organization employees normally go through training programs every few years	.909***
C3	There are formal training programs in organization to teach new hires the skills they need to perform their job.	.878***
Staffing
D1	In my organization great effort is taken to select the right person	.948***
D2	In this organization long-term employee potential is emphasized.	.990***
D3	Considerable importance is placed by organization on the staffing process.	.853***
Person-Organization
E1	This organization pays on the basis of individual performance	.912***
E2	This organization makes promotions based mostly on individual performance	.872***
E3	This organization encourages competition between employees	.815***
E4	This organization encourages and rewards loyalty	.994***
	The typical employee here works very hard to fulfill work expectations
Organizational Culture
G1	In my organization managers act as mentors to develop employees' full potential.	.857***
G2	My organization emphasizes on human resources in team work	.919***
G3	My organization is much formalized	.888***
G4	In my organization employees believe that following the rules is important.	.987***
G5	In my organization managers encourage employees to be innovative.	.812***
G6	My organization acquires new resources for increase growth.	.902***
G7	In my organization managers help employees to meet the organizational goals and objectives.	.799***
Job performance
H1	I adequately complete assigned duties	.820***
H2	I meet formal performance requirements of the job.	.831***
H3	I neglect aspects of the Employee I am obligated to perform.	.912***
H4	I engage in activities that can positively affect his or her performance evaluation.	.920***
H5	I Perform tasks that are expected of me	.981***
H6	I consistently perform work tasks in a high quality manner.	.926***

 

 

 

 

Table 4 Summary of model fit

χ2

df

χ2 / df

GFI

RMSEA

IFI

TLI

CFI

Model fit

845.142

478

1.768***

.843

.51

.958

.954

.958

Note: ***p < 0.01, GFI = Goodness of fit index, RMESA = Root mean square error of approximation, IFI= Incremental fit index, TLI = Tucker-Lewis Index , CFI = Comparative fit index

 

 

 

4.5Hypotheses Testing

Hypotheses 1, 2, 3 and 4 explaining direct relationships were tested. In second step mediation was tested for hypotheses 5, 6, 7 and 8. In last step, moderation was evaluated, which is indicated in hypotheses 9, 10, 11 and 12. Hierarchal regression results are present in table 5.

The results in table 5 for hypotheses reveal, that participation in decision making is positively associated with job performance (β = 0.242, p < 0.001). Based on these values, H1 is accepted.

Further, the results indicates that performance evaluation system has a strong positive association (β =0.312, p < 0.001). Result for H2 is significant and we can conclude that effective the performance evaluation system is higher will be the job performance. On basis of values we accept H2.

Likewise, the results of H3 reveal a positive relationship between training and job performance (β= 0.222, p < 0.001). Which indicates that if employees are trained by the organization then their job performance will be better. Therefore based on the values of analysis H3 is accepted. Along with this, the results indicate that there is a strong positive relationship between staffing and job performance (β = 0.015, p < 0.001). When staffing is carried out in an effective way then it will increase the overall efficiency of the workforce and improves their job performance as well. Based on the values we are accepting the hypothesis 4 of the present study.

The results of mediation and moderation analysis ca be seen in table 6. For mediation analysis, we tested the indirect effect of participation in decision making on job performance via person-organization fit. We employed Preacher and Hayes (2008) bootstrapping procedure (5000 iterations, bias-corrected, 95% Confidence Intervals. Output of the custom dialogue (PROCESS) developed by (Hayes, 2012) revealed the following results: concerning to hypotheses 5 the indirect effect of participation in decision making on job performance via person-organization fit has showed significant results B = 0.016, SE = 0.023, CI95% [.004; .059]. Overall the mediation model was significant, R²= .106, F = 3.394, p < .001. Based on the result value H5 is accepted. Along with this, the mediation hypothesis for association of performance evaluation system with job performance through person-organization fit is depicting that B = 0.684, SE = 0.083, CI95% [.536; .859]. The overall mediation model is also significant which is offering support to hypothesis 6, R²= .124, F = 3.897, p < .001. In addition to it, the results of hypothesis 7 are also significant which is depicting that person organization fit is significantly mediating association of training with job performance, B = 0.589, SE = 0.024, CI95% [.439; .971]. Likewise, the significance of overall model is also adding positively to our expectation of hypothesis 7, R²= .112, F = 3.297, p < .001. Finally, the mediation of staffing with job performance via person-organization fit is also significant, B = 0.671, SE = 0.034, CI95% [.589; .891]. The overall model for this association is also in accordance with our expectation and thus offering support to hypothesis 8, R²= .212, F = 3.987, p < .001.

For moderation analysis, we tested for the direct relationship between participation in decision making, performance evaluation system, training and staffing with job performance at various levels of the moderator (organizational culture). We employed Preacher and Hayes (2008) bootstrapping procedure (5000 iterations, bias-corrected, 95% Confidence Intervals (CI)). It is notable that Preacher and Hayes (2008) macro mean centres the variables (both independent and moderator) prior to moderation analysis, which is required in order to compare effect sizes and reduce multicollinearity. There is a positive change in R² showing that organizational culture significantly moderates between participation in decision making and job performance as R² = .036, p < 0.05. Similarly, the results were consistent with our expectations that when organizational culture is positive (+1 SD) is stronger, B = .683 (SE = .090), CI95% [.456; .814], than when organizational culture is negative (- SD), B = .339 (SE = .079), CI95% [.266; .587]. Therefore, indicating that hypothesis 9 has been supported by the results of current study. Along with this, the change in R² is again positive for the hypothesis 10 which is depicting that organizational culture significantly moderates between performance evaluation system and job performance as R² = .015, p < 0.05. It is also notable that for positive organizational culture (+1 SD), association s stronger B = .630 (SE = .090), CI95% [.456; .814], than negative organizational culture (- SD),B = .404 (SE = .079), CI95% [.266; .587]. Therefore, the hypothesis 10 has been accepted from the results of current study.

Followed by this, the results of hypothesis 11 depict that the change in R² is positive and organizational culture significantly moderates between training and job performance as R² = .037, p < 0.05. Likewise, the positive organizational (+1 SD) is stronger B = .620 (SE = .080), CI95% [.436; .824], than negative organizational culture (- SD),B = .404 (SE = .078), CI95% [.246; .577]. It is reflecting that results are supportive towards hypothesis 11. Finally, the hypothesis 12 has also been supported and change in R² is positive R² = .016, p < 0.05, which reflects that organizational culture significantly moderates association between staffing and job performance. The same has been confirmed that for positive organization culture (+1 SD), the relationship is stronger, B = .520 (SE = .070), CI95% [.466; .714], than that of negative organizational culture (- SD),B = .406 (SE = .089), CI95% [.256; .597]. Given these resulst, hypothesis 12 is accepted.

                                                      

 

                                                      

 

Table 5 Regression Analysis
		Job Performance
	Direct Effect
1	Participation in decision making	0.242
2	Performance evaluation system	0.312
3	Training	0.222
4	Staffing	0.015
Note p < .0001**

 

 

 

 

 

 

 

 

 

 

 

 

Table 6. Moderation and mediation analysis
Mediation model
R2, F (participation in decision making)	.106, 3.394***
R2, F (performance evaluation system)	.124, 3.897 ***
R2, F (training)	.112, 3.297 ***
R2, F (staffing)	.212, 3.987 ***
Indirect Effect	B	SE	95% (LLCI,ULCI)
Simple mediation (Participation in decision making)	0.016	0.023	(.004,.059)
Simple mediation (Performance evaluation system)	.684	.083	(.536,.859)
Simple mediation (Training)	.589	.024	(.439, .971)
Simple mediation (Staffing)	.671	.034	(.589, .891)
R2( ?R2)( Participation in decision making)		.621 (.036)
R2( ?R2)( Performance evaluation system)		.516 (.015)
R2( ?R2)( Training)		.652 (.037)
R2( ?R2)( Staffing)		.615 (.016)
Conditional indirect Effect (Participation in decision making)
Organizational culture       -1SD	.339	.072	(.214,.504)
Organizational culture 0SD	.511	.068	(.386,.656)
Organizational culture +1SD	.683	.088	(.515,.857)
Conditional indirect Effect (Performance evaluation system)
Organizational culture    -1SD	.404	.079	(.266,.587)
Organizational culture 0SD	.517	.075	(.386,.682)
Organizational culture +1SD	.630	.090	(.456,.814)
Conditional indirect Effect (Training)
Organizational culture    -1SD	.404	.078	(.246,.577)
Organizational culture 0SD	.517	.075	(.386,.682)
Organizational culture +1SD	.620	.080	(.436,.824)
Conditional indirect Effect (Staffing)
Organizational culture     -1SD	.406	.089	(.256,.597)
Organizational culture 0SD	.517	.075	(.386,.682)
Organizational culture +1SD	.520	.070	(.466,.714)
Note: *p < 0.10, **p < 0.05, ***p < 0.01;Unstandardized regression coefficients and average bootstrap estimates reported; controlling for age; ,gender, education, experience and organization; bootstrapping procedure (5000 iterations, bias-corrected, 95% Confidence Intervals (CI)) ;N =280

IMPACT OF HIGH PERFORMANCE WORK PRACTICES ON JOB PERFORMANCE

Dear Sir/Madam,

I am a student of MS in Management Science at Fatima Jinnah Women University. I am conducting a research on “Impact of High Performance Work Practices on Job performance”. Your valuable time in completing this questionnaire will help me to identify the required outcomes of this study.

 

Your contribution towards this research is highly appreciated!