European Journal of Business and Innovation Research (EJBIR)

EA Journals

The Effect of Human Resource Management Practices on Organization’s Performance


Purpose: The purpose of this study was to check the effect of HRM practices (staffing practices, incentive practices and training programs) on the organization’s performance.

Design/methodology/approach: Quantitative study was conducted in banking sector of Pakistan. A sample of 150 bankers, from different banks of Sahiwal, was selected and surveyed through questionnaires with a response rate of 93%. Pearson Correlation and Regression were run to analyze the data

Findings: Finding reveals that positive and significant relation exists between HRM practices (staffing practices, incentive practices and training programs) and the organization’s performance.

Research limitations/implications: The sample size was too short. This study can be replicated with a large sample size in similar sector or context or in other sectors. Effects of other independent variables e.g. information technology, performance appraisal, employee empowerment, compensation, job rotation and employee participation could also be used.

Originality/value: Organizations ought to pay special attention to human resource management practices to increase their organization’s performance. As HR practices plays an important role in organization’s performance.


Keywords: HRM practices, Incentive Practices, Organization's Performance, Staffing Practices, Training Programs

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