Business research method article analysis and study.

2. MUHAMMAD TALHA

3. Measuring the impact of HRM on
organizational performance (Anastasia A
katou, 2008)
Instructor: Mrs. Humaira Hamid

4. Outline
• Problem statement
• Theoretical framework
• Hypothesis
• Findings of the hypothesis
• Research design
• Methodology

5. Problem statement
1. Research objective (why):
to find “How human resource management(HRM)
policies influence organizational performance”
2. Research question(what):
“what is the impact of HRM policies on organizational performance”
OR
“What is the impact of HRM policies on organizational performance in relation to
HRM outcome as mediating variable”

6. Theoretical framework
HRM
Outcome
HRM policies
Organizational
performance
Business
strategies
H1
H2
H4
H3

7. Hypothesis
• H1: business strategies influence HRM policies in determining
organizational performance.
• H2: A relationship exist between HRM policies and HRM outcome.
• H3: Improvement HRM outcome mediate the relationship between
HRM policies and organizational performance.
• H4: A relationship exist between HRM policies and organizational
performance.

8. Findings of the hypothesis:
With respect to business strategies, cost strategies have a direct
negative effect on HRM policies, whereas quality, and innovation
strategies, have positive direct effects on HRM policies, supporting
thus hypothesis H1.
HRM policies have a direct positive effect on HRM outcomes,
supporting thus hypothesis H2.
 HRM outcomes have a direct positive effect on organizational
performance, giving hence support to hypothesis H3.
 HRM policies have a direct positive effect on organizational
performance, giving hence support to hypothesis H4.

9. Research design
• Purpose of the study: Causal study.
• Type of investigation: Causal.
• Extent of researcher interference: Moderate Interference.
• Study settings: Non-Contrived (Natural environment).
• Unit of analysis: Organizational level (178,original sample).
• Time horizon: Cross sectional/ One shot.

10. Methodology
Defining the Elements/ population:
• Strata 16 manufacturing sector industries in Punjab
• Organizations with more than 50 employees are the candidate .
Time frame of the population:
• All the manufacturing sectors in Punjab from the last 2 years are selected from
Pak-directory (http://www.pakdirectory.net)
Population:
• The total population was 2002

11. Methodology
• Sampling frame:
• The elements list from which we are going to select subjects were taken from the
Pak-directory (http://www.pakdirectory.net)
• population of 2002
• Sampling size:
• Table 13.3 pg.# 268

12. Industries Population
Food products Beverages 254
Textiles and textile products 81
Footwear 98
Leather products 269
paper 131
Pharmaceuticals 75
Chemicals 133
Petroleum products 238
Rubber and plastic products 74
Basic metal industries 94
Machinery and equipment 118
Metal products .except machinery 104
Electric equipment 64
Electrical machinery 56
Motor equipment 116
furniture 83
Total 2002

13. Methodology
• Sampling frame:
• The elements list from which we are going to select subjects were taken from the
Pak-directory (http://www.pakdirectory.net)
• population of 2002
• Sampling size:
• Table 13.3 pg.# 268

15. Methodology
• Data collection method:
• Questionnaire survey
• Responsibility of CEO, personnel officer, financial officer
• Response rate of 30%
• Scaling technique:
• Itemized rating scale
• Different anchors

16. Anchors
Organizational performance:
• Five point scale (1-5)
• Anchors:1= very bad to 5=very good.
HRM policies:
• Five point balanced itemized rating scale (1-5)
• Anchors:1=not at all effective to 5= highly effective
HRM outcome:
• Anchors: 1=very bad to 5=very good
Business strategy:
• Anchors:1=not very important to 5= totally important

17. Variables / Constructs
HRM Policies:
Selection, Training and Development, Performance appraisal, Compensation,
Promotion, Incentives, Work design, Participation, Involvement, Communication
HRM Outcomes:
Competence, Cooperation with management, Cooperation among employees,
Motivation, Commitment, Satisfaction, Retention, Presence
Business Strategies:
Cost reduction, Quality enhancement, Innovation
Organizational Performance:
Effectiveness, Efficiency, Development, Satisfaction, Innovation
Controls:
Size, Capital intensity, Industry, Degree of unionization

18. Sampling design
• Stratified sampling technique.
• Sectors Represents heterogeneity.
• Divide each sector representing a group.
• Strata: 16 manufacturing sectors industries.
• 322 chosen from cumulative stratum (strata).
• response rate = 30%

19. Statistical analysis
• Structural equation models (SEM) was used
• Via LISREL and the maximum likelihood estimation (MLE)