CHAPTER 1

INTRODUCTION
Background
Human resource management is the field which has advanced in
the 19
th
century. In 1990s due to the globalization and
competition, the proper woring human resource departments
become necessary for organization to survive. Human resource
management system e!ists to assist employees and
organizations reach their goals. "ith the influ! of
competition in emerging marets, it became important for the
firms to e!pand the domain of the human resource management
system. #he role of human resource management system, and in
e!acting, the impact of it on firms financial performance,
has gain importance in the present business environment.
$trategic H%& boosts up firms competence and effectiveness.
"hile taling and doing research on the topic of H%&
practices and activities no one can ignore the fact that it
has a ey impact on the overall performance of
organizations. 's a result researchers are showing great
interest in doing e!tensive research on this topic. ' lot of
studies have been done on the relationship between these
practices and firms performance( commonly analyzed
activities are recruitment and selection procedure,
employees compensation and performance management system,
as well as training. $tudies showed that these activities
have a direct lin with the productivity of employees along
with this, it increase there motivation which will enhance
the firm performance. #he number of employees turnover can
1
also be reduced by effectively applying these in the
organization )*ones + "right, 199,-.
Human resource management acts as an important element in
the restructuring phase of organizations. #he scope for H%&
varies across organizations. H%& enable companies to improve
the recruitment and hiring procedures and boost their
potential by producing different career paths. .revious
studies showed that efficient human resource management
practices can create a basis of competitive advantage for
the firm and have the significant relationship with the
firms productivity and its financial performance )/utler,
0erris, + 1apier., 1991-.
H%& practices influence employee abilities and talent
through the ac2uisition and improvement of a firms human
resources. H%& practices help to enhance employee motivation
by inspiring them to wor in both tough and easy conditions
)Huselid, 1993-.
' number of studies have investigated the lin between H%&
practices and firms financial performance. 1owadays with
the advancement of human resource management practices,
employees are encouraged to mae their own way in the firms.
$tudies conducted on different sized firms shows that there
e!ists a association between H% practices and employees
productivity. In todays competitive woring environment,
the primary challenge for organizations is to have effective
human resource and to develop efficient policies to enhance
organizational performance on the large scale. 0or various
firms talented worforce is a core source of competitive
2
advantage. *ohn /yrne said that 4#he world economy is going
through a seismic shift to reasonable capital from capital
investment5.
.ast studies have showed that H%& practices has impact on
employee commitment, which in turn impacts influences
employee performance, and at the end, it conse2uently
influence the organizations performance. #he theories about
importance of people in the success of organization have
gain importance in the past decades. #o have increased
performance from employees, there should be cooperation
between managers and activities of H% department.
6ompensation pacage, training, employee participation in
decision maing, 7ob security, 7ob design, promotion
strategies, team woring and woring conditions, etc. are
different factors which are collectively nown as H%&
practices.
8arlier researches have lined various H% practices to
different variables such as( employee turnover and firms
performance. %esearches on impact of H%& practices on
performance have shown that an organization can have silled
and efficient worforce by implementing efficient human
resource management policies. #he human resource is a
foundation of a competitive advantage for a business )/ecer
+ Huselid, 1999-.
8mployee participation is not only an important factor for
increasing employees 7ob satisfaction but it also enhances
their productivity and commitment with organization )/hatti
+ :ureshi, ,00;-.
3
<ne goal of human resource management is to establish
activities which contribute in the success of organization.
Human resource management consists of different
interconnected H% activities taing place in the
organization. H% planning, career planning, training,
compensation and benefits, relationship with employers,
woring conditions and participation etc. It is very
important for employees to be involved in development of
mission statement, firms policies and procedures, and
decision maing. It enhances there 7ob satisfaction,
involvement in tas and hence performance of employees. #he
importance of employees training can not be neglected
highly effective means of developing competent 7ob sills
has long been recognized. %ole of career development
activities can also not be neglected. 8very organization
focused on developing the career path of its employees to
enhance their morale and eventually the efficiency of its
staff.
1ow a day, human resource is the ey factor for every
organization to have successful business. $o investments to
develop efficient human resource of the organization and to
create an environment where employees perform their 7obs in
proper manners are primary need. #his research will help
employers and top management to implement a competitive
human resource management system and to now which factor
contribute more in the success of organization.
=nfortunately in .aistan, very few firms have proper human
resource management system and separate H% department. #o
survive in a very competitive environment, companies in
.aistan need to design effective human resource practices
4
which enhance the performance of employees as well as firms
productivity.
0or different sectors in .aistan to survive in a very
competitive environment, they need to design efficient human
resource )H%- practices that support the high performance of
employees which result in the improvement of organizations
overall performance. /y adopting novel H%& practices
organizations can improve their business performance. '
large number of .aistani firms do not consider compensation
system as a driving force for better employee performance
and thereby superior firm performance.
<ne of few sectors which have proper H%& system is telecom.
#elecom sector in .aistan is recruiting a huge number of
worforces. 0or the purpose of study I have taen employees
of telecom sector as the sample. #his research study focuses
on the relationship between H%& system prevailing in the
company and the performance of firm. It also highlighted the
advantages firm get due to its fle!ible and competitive
human resource management practices.
0or the purpose of study selection system, 7ob definition,
employees participation in decision maing, training system,
performance appraisal system, compensation system and career
planning system are selected as the independent variable and
the dependent variable is firms performance. #he H%
departments have to build up new recruitment and selection
procedures and innovative compensation systems.
5
Defining variables
elec!ion "s!e#
$election decisions are an important part of successful H%
department. #he selection process is a series of steps
involved in choosing candidates who have needed
2ualifications to fill 7obs in an organization. >ey steps
are( courtesy interview, employment tests, selection and
supervisory interviews, bacground checs and hiring
decision. ' defined, applicable, and relevant selection
system assists in recognizing a suitable candidate with
right aptitude to perform the 7ob. $election of employees is
strongly influenced by whether employees are being selected
from within or outside the organization. 0urther, selection
has been found to be positively associated to firm
performance )#erpstra + %ozell, 199?-. 82ual employment
opportunity is the main challenge e!ists in all phases of H%
wor, and it demand the selection system be free of
discrimination.
$ob Defini!ion
Improvement in organizational performance may come from
better 7ob design and improved training. 8mployee motivation
can be improved by designing the 7ob in a well defined and
clear way. If employees now what is pro7ected and how
performance is to be considered, they have a much better
opportunity of performing satisfactory. #o enhance their
performance and efficiency management should not designed
the 7ob tightly, some freedom of decision maing relating to
6
how wor is to be done should be given to them to have high
motivation among employees )&ilgrom, + %oberts 199?-.
Career Planning
6areer consists of all the 7obs by employee during his@ her
woring life. It is a relatively new concept in many human
resource departments. ' wellAorganized career development
system, together with merit based internal advancement
opportunities could lead to the high motivated employees and
improved firm performance )<sterman, 199;-. 6areer
development consists of many actions, few of which are( 7ob
performance, e!posure, subordinates, networing, growth
opportunities, resignation and organizational loyalty. '
well designed career development system that could lead to
the high motivation among the employees includes internal
advancement opportunities based on merit, which has a good
impact on the firm performance.
/y organizations structure the career progress of their
employees, it can be tied into succession planning with in
organizations. In addition to promotion chances, the
assessment criteria used in the promotion and reward system
also had important effects on employees 7ob satisfaction,
turnover rate and 7ob performance ):uarles, 199B-.
6areer development programs facilitate a deeper focus on an
employees aspirations and desires. #his focus acts as the
important motivator for an employee to e!cel and achieve the
targets. It facilitates commanding personal and professional
development.
7
Training
#he term training refers to the gaining of nowledge,
silla, and competencies as a result of the teaching of
professional sills and nowledge that relate to specific
useful competencies. #raining is an activity leading to
employees silled and professional behavior. $imply it can
be said that training helps employee do their current 7obs
and help develop employee for future responsibilities. 's
organizations compete and revolutionize, training turns out
to be even more vital than before )/land, 1999-. #raining
will help organizations to improve their employeesC
abilities and productivity. It can also enhance their
advancement opportunities and assist organizational
competitiveness by helping in the retention of employees.
E#%lo"ee %ar!ici%a!ion
#he terms employee participation and employee involvement
first began to emerge in management literature in the late
19;0s. 8mployee participation is a process in which
information is shared among individuals who are other wise
hierarchically une2ual. .articipatory management practice
balances the participation of managers and their
subordinates in information processing, decision maing and
problem solving activities. #he effects of employee
participation vary with the situation into which they are
introduced )/hatti + :ureshi, ,00;-. #he results of previous
researches have shown that a participation of employees in
decision maing, augment 2uality of employees woring life
and organizational performance. #o have a successful firm,
8
it is needed to systematically evaluate the training system
e!ists in the firm.
Co#%ensa!ion
6ompensation is the reward, incentive and recognition given
to employees by the firm for performing organizational wor.
If the organization fails to reward employees for a well
performed 7ob, it is an avoidable mistae from the firms
side. %ecognition does not always need to be monetary. 8ven
though the tangible rewards are nice and have more meaning,
the single most important reward is praise and
acnowledgement )'beyseera, ,00;-. .revious studies showed
that satisfaction among employees was higher in the cases
where as the performanceArelated pay and seniorityAbased
reward systems e!ist. If a firm pay less wages to its
worers as compare to other firms in the maret the result
be reduction in the motivation and 7ob satisfaction of
employees.
Perfor#ance a%%raisal s"s!e#
0irms can monitor the development of desired employee
attitudes and behaviors through the use of the appraisal
mechanisms. #his appraisalAbased information could be used
for changing the selection and training practices to select
and develop employees with the desired behaviors and
attitudes. However, the effectiveness of silled employees
will be limited unless they are motivated to perform their
7obs )singh, ,000-.
9
Ob&ec!ives of !'e s!ud"
#odays business environment in the .aistani conte!t after
the initiation of economic reforms re2uires that the H%
function plays a ey role. #he ob7ective of this research
study is to scrutinize the lin between human resource
practices on firms performance. #he other ob7ective is also
to now the e!tant to which H%& practice is lined with the
enhancement of firms performance and productivity.
Proble# Iden!ifica!ion
In last 3 to 10 years due to globalization huge investment
is carried out in .aistan, especially in telecom, oil and
baning sector. so many people have switched to telecom and
baning sector thats why the training recruitment and
selection and retention problem occurs.
In .aistan unfortunately very few organizations have a
separate H% department where as the previous researches
confirms that the mostly developed country have proper H%
department and then they will conduct H%& practices for
their employees. $o through this research we will e!plore
those organization have a proper H% department will they
conduct H%& practices and what is the affect of these H%&
practices on employees performanceD
10
Proble# s!a!e#en!
#he impact of H%& practices on the relative performance of
firm.
Ra!ionale of !'e s!ud"
#he underlying principle of the study is to point out the
effective human resource practices to mae the silled and
e!perienced worforce for the organization and to enhance
firms performance. 'lso to now about the factors, which
commonly influence the performance of firmD &oreover, the
findings will also help the researchers to do more research
on this area, as there is a only few studies conducted in
.aistan in this main field of human resource management.
It could be said that this study give answer to the
2uestions that 4how5 best H%& practices can influence
performance and to 4what e!tent these practices are related
to performance.
co%e of !'e s!ud"
#his study focuses on identifying the impact of hr practices
on firm performance. #his study is confined to the city of
Islamabad only. &ore precisely this study is focusing hr
practices at si! organizations of telecom sector in
Islamabad, which includes, &obilin, #elenor, "arid, =fone,
Eong and .tcl. #his study measures the employees and firm
performance in terms of the Hr practices.
C'a%!er (
11
)i!era!ure Revie*
'n organization must employ needs assessment and strategic
human resource development strategies in pursuit of its
mission and vision.
#here is a vital lin between H% policies and firms
performance and argues that for success the organization
should adopt wellAfitted H% practices. #he firm should
invest in training, functional fle!ibility, increasing 7ob
satisfaction, and employee involvement, to carry on economic
performance. #hey e!plored that /ritish firms are using soft
and attractive H% policies as a weapon to improve their
performance )6ooe, ,000-. #hey found that to apply good
policies a stable environment of the firm is re2uired.
' research was conducted to study to find the relationship
between the human resources management practices and firm
performance. #his study was performed on 9, Indian firms
findings showed that there is a significant association
between the two important Hr practices training and
compensation, and supposed organizational and maret
performance of the firm. 8specially training and
compensation had a statistically significant impact on
organizational performance. 's per findings compensation
system is another H% practice having a positive and
significant impact on firm performance, it indicated that
the implementation of a performanceAbased compensation
system may lead to better firm performance )$ingh, ,00B-.
#o confirm the lins between H%& practices and firms
performance a sample of 1000 firms was selected, the results
12
showed that H% activities has a significant and important
impact in the effectiveness of firm as well as on the
productivity of employees )Huselid, 1993-.
#he impact of H%& practices on the performance of 8uropean
firms. 0or the purpose of study they selected a sample of
?,,91 firms located in 8uropean =nion countries. /y doing
the research they e!plored that the lin between H%&
practices and performance of organization is comparatively
ordinary )Fooderham + .arry, ,00G-.
#o find out that it is true that forms can apply different
H% policies to e!tend employees motivation and efficacy. <n
the other hand if the firms management is unable to
motivate them to do their 7obs, the result will be the
decrease in employees as well as organization performance
)Helaney + Huselid 1993-. #hey concluded that organization
should develop the H% policies with full observation.
#o now the relationship between human resource management
practices and the firm performance. #hey selected a sample
of 101 foreignAowned subsidiaries in %ussia. #he studys
results provide the information that by investing in H%&
practices firms can substantially improve their performance
)0ey, ,000-. In this study they used H%& strategy, employee
development, employee pay, feedbac, training, performance
appraisal, team wor, 7ob security, career planning etc. as
independent variables. #he findings of this study provide
2uite strong support for the presence of a positive
association between H%& practices and the performance of
%ussian subsidiaries. #his study proposes that, at least in
the %ussian conte!t, firms should focus on diverse pacages
13
of H%& practices for administrative and nonA administrative
employees and all the H%& activities are not e2ually
important to focus on. 'ccording to results the ey factors
positively influencing firms performance are management and
employee progress, feedbac and information systems for
managers, and teamwor and decentralized decision maing,
reward based appraisal system.
%esearch conducted to e!plore the relationship between
strategic human resource management and organizational
success showed that these two are positively related and the
H%& activities enhance the success and performance of the
firm. /y integrating the H% activities with strategic
planning firm can better achieve their goals and ob7ectives.
#hey selected result oriented performance appraisal,
employee participation, employment security, performance
based compensation, 7ob definition and training as variables
to perform study. ' total of 100 directors, 300 supervisors
and 900 staffs were used to gather data. #o analyze the data
mean, standard deviation, return on assts, returns on e2uity
and regression analysis were used.
#o analyze the impact of si! human resource practices
prevailing in companies on employees turnover in $ri Ianan
leasing companies. 0or the purpose of study hundred
mareting e!ecutives with e!perience of more than one year
were taen to respond to 2uestionnaire. #he results pointed
out that 7ob analysis, career development, compensation, 7ob
information were negatively and significantly correlated
with turnover. #he wor family balance was not negatively
correlated with the employees turnover )'beyseera, ,00;-.
%esults of research further highlighted that compensation
14
and 7ob analysis are strong predictors of turnover. $o by
implementing these practices in organization employees
turnover can be reduced effectively, which in return will
enable organization to have high firm performance from
employees.
' mi!ture of financial and worArelated participatory
actions can have a constructive impact on companys and
employees performance. $ome employees respond positively to
financial initiatives and others to more 7obArelated
elements )$ummers + Hyman, ,003-
.erformance appraisal system e!ists in public libraries and
the impact it has on the feat of employees and firm. #hey
studied the assumption of appraisal in relation to what
happens in survey( along with this they also used case study
and 2uestionnaire to find the results )Harrison + Foulding,
199;-. %ating scale was used to compare individuals
performance and employees were 7udged by using different
criteria and were mared on a 1A10 point scale. #he changing
environment within the public sector has enforced many firms
to implement contemporary management styles and the
theories, today( appraisal is as common in the public as it
is in the private sector. %esults showed that appraisal need
not be feared or mistrusted by employees. #he findings
showed that appraisal system in public libraries has a
failing trend because not sufficient consideration is given
to defining the aim of appraisal and to ensuring
communication channels. Infact appraisal is potentially
beneficial to everyone. #hey concluded that the political
15
and economic environment has significant implications that
can mae e!ecution of an appraisal system more complicated.
'n effective system of performance appraisal is a ey factor
of a firm that maes every employee feel that he@she has to
contribute to the success of the organization. #hey found
that the first steps in developing an efficient performance
appraisal system is to find out the organizations
ob7ectives. 8mployee evaluation should be conducted on a
normal and continuing basis. #hey e!plored that a main
aspect of developing an effective performance system is
training for those individuals involved as raters and a
multiple rater system should be considered. 0or developing
an effective performance appraisal system 6ooperation and
dedication from top management is re2uired )/oice + >leiner,
199;-.
#he association between H%& and firm productivity,
researchers found the association between human resource
systems and organizational effectiveness. #he study results
showed that industry characteristics moderate the influence
of high feat wor systems on firm productivity and the
impact of high performance wor systems on firm productivity
is considerably influenced by the industry situation of
capital force and growth. #he conclusion that can be
strained is that the relative use of a high performance wor
system can bring a significant improvement in firm
productivity )Futhrie, ,00?-. #his analysis finding suggests
that firm competitiveness can be improved by maing use of
high performance wor systems.
16
#he impact of H%& practices on the 7ob satisfaction level of
employees, the result showed that satisfaction among was
higher in the cases where performanceArelated pay and
seniorityAbased reward systems e!ist. 0indings showed that
good compensation pacages increases employees satisfaction,
which give reward to organization in the form of increased
employees performance )/radley, ,00B-.
#he most important factors needed to enhance staffs
performance was training, reward system, clearity of
firms ob7ective, wor environment, information sharing
and empowerment of employees. %esearcher further said
that training is not a onetime eventAAit needs to happen
on a regular basis and allow your staff to thin and act
lies an owner( it will create selfAmotivated employees
)$a!by, ,00;-.
<n oil and gas, baning and telecommunication sectors firms,
to find the relationship between employee participation and
7ob satisfaction, employee productivity. #hey found that
employee participation is not only an important factor for
increasing employees 7ob satisfaction but it also enhances
their productivity and commitment with organization )/hatti
+ :ureshi, ,00;-. #hey concluded with the result that
increasing employee participation is a longAterm process,
and it depends on the cooperation of both management side
and the employee side and firm can have comparative
advantage over other firms by using efficient participation
system.
#he relationship between compensation, promotion,
performance evaluation and perceived employee performance
17
among university teachers in .aistan )$hahzad, /ashir +
%amay, ,009-. #his study indicate a constructive association
between compensation and, promotion practices and employee
perceived performance while performance evaluations
practices are not considerably correlated with perceived
employee performance. #hey concluded with the results that
.aistani universities need to improve compensation
practices and define clear career paths to improve the
performance of teachers. #hey found that promotion practices
not only facilitate teachers to grow in organizational
hierarchy but also wor as a means for professional
development.
18
T'eore!ical +ra#e*ork
#he influence of changes in compensation system, on the
performance of employees, retention and recruitment )*oanna,
,003-. #hey found that changing performance based
compensation plan to a less sensitive plan, negatively
influence the performance of employees. /y analyzing
performance data of B?9, employees of car dealing firms that
found that individual sales productivity, particularly that
of highAperformance salespersons, decreased once the
compensation plan changed.
#he H%& practices help to enhance employee motivation by
inspiring them to wor in both tough and easy conditions
)Huselid, 1993-.
8mployee participation is not only an important factor for
increasing employees 7ob satisfaction but it also enhances
their productivity and commitment with organization )/hatti
+ :ureshi, ,00;-.
8very firm needs to build up five different practices to
effectively manage human resource in the organization, i.e.
planning, recruiting, retaining, energizing and developing
)$imovits, ,00?-. It was also concluded that these all are
not compulsory to e!ist in every organization. .resence of
these elements depends upon the nature of firm. .lanning is
re2uired to forecast future needs of employees and it is
further used to analyze the availability of human resource
and to determine staffing needs. %ecruitment and selection
is used for seeing attracting and selecting potential
candidates and selecting and orienting these employees to
19
the firm. &aintaining safe and healthy woring conditions,
providing consistent supervision and appropriate base
compensation are the basic tas of retention. 8nergizing and
developing employees are also used to enhance the efficiency
and performance to employees. #hese all elements have
significant and positive impact on the performance of
employees.
'n accurate selection system creates a sense of superiority
among employees, creates high e!pectations of performance,
and indicates a message of the importance of the people to
the organization ).feiffer, )199B-.
#he effects of training upon the financial performance of
the firms )'rcimoles, )199;-. #he results showed that there
is a ey relationship between both. #he e!penditure by firm
on providing consistent training to employees has a positive
impact on the productivity of employees and on profits of
firm. #raining raises the general sills and enhances the
human resource capital of firms. #hey concluded that
employee training became more useful when it is being
combined with 2uality management practices 'liza %aceliss
study focused on studying the association between rewards
and recognition practices and firm performance, as well as
stuc between the recruitment and retention systems and firm
performance. %ecruitment, selection, performance management,
training, compensation, and employee relations were used as
the H%& activities to find the results. #he sample has been
limited to the .hilippine baning industry. #he outcome for
?? bans provides diffident confirmation for the positive,
ma7or association that e!ists between financial performance
and such H%& practices. $tudies have shown that H%& systems
20
control firm performance by determining employee behaviors
and approach to wor.
#here is confirmation that incentive compensation and
performance management systems, training and development
opportunity are highly valued and are associated to firm
performance, most liely due to their motivational effects,
because they imitate a regard for empowerment and
responsibility )Henison, and 0ey, ,00?-.
#he relationship between pay system and 7ob performance goal
of many pay plans is to enhance employees performance
)$turman, ,00G-. #he study showed that the amount of
reward and how much and how it is paid has the positive
relationship with the future performance of employees.
$ame as findings of previous studies the result showed
that how much firm pay to employees is important. /oth
raises and bonuses increase future performance, indeed,
the results suggested that providing a highest payAforA
performance lin for bonuses rather than raises had the
highest potential benefit, predicted to improve employee
performance by nearly ,0 percent.
Human resource management )H%&- is the successful management
of people at wor. $ince a firms human resources are an
important possible source of sustained competitive
advantage. ' number of studies have found a constructive
lin between H%& practices and policies, and different
proceedings of company performance )0ey and /7orman, ,001-.
21
' research study to e!amine promotion opportunities and
assessment criteria as mechanisms for affecting internal
auditor by ):uarles, 199B-. %esults of study showed that
promotion, evaluation criteria used in the promotion and
reward system had sound effects on employees 7ob
satisfaction, turnover rate and their 7ob performance.
0or ease of understanding and measurement a theoretical
framewor has been developed for the purpose of this study.
#he framewor shows that overall performance of firm is
affected by seven ey H%& practices. #he H%& practices are
selection system, 7ob definition, employee participation,
training, performance appraisal, compensation and career
planning. #hese H% practices are labeled as the independent
variables and firm performance written on right is labeled
as the dependent variable.
22
Inde%enden!
,ariables
De%enden!
,ariable
23
Performance
Appraisal
Compensatio
n
Training
Employee
participatio
n
Firm
Performance
Job
Definition
HUMAN
RESOURCE
MANAGMENT
PRACTICIES
Selection
System
Career
Planning
CHAPTER NO -
.ETHOD
a#%le
#he sample size for this study was ?0? respondents. 39J
respondents were male, whereas( B1J respondents were female.
#he core sub7ects of this study were the employees of
&obilin, #elenor, "arid, =fone, Eong and .tcl. #he
2uestionnaire was directly submitted to employees of
different departments of telecom sector in Islamabad.
Ins!ru#en!s and .easures
#here were two research procedures in this study. #he first
was the $econdary %esearch while the second was the .rimary
%esearch. $econdary %esearch was comprised of published
research papers and boo materials and other valuable
published material. #he ey variables in the secondary
research for this study were, related to firm performance in
terms of the seven Hr practices compensation, training,
career palnning, performance appraisals, 7ob definition and
selection system.
.rimary %esearch was comprised of a survey at the #elecom
sector. #he 2uestionnaires were specifically distributed in
the .rimary %esearch, whereas( the 2uestionnaires in the
.rimary %esearch were retrieved from a published research
paper )#eseema, / $oeters, ,00G-.
24
#he first part of the 2uestionnaires typically dealt with
the demographic variables. #hese demographic variables were
gender and age, and they were measured on nominal scale.
#he second portion of the 2uestionnaires was specifically
related with the Hr practices. It specifically comprised of
twenty two 2uestions. #hese 2uestions were typically related
with Hr practices effectiveness on firm performance. #hese
items were primarily measured on the fiveApoint scale having
options Kstrongly disagree, Kdisagree, Kneutral, Kagree
and Kstrongly agree.
Procedure
$ource of data for the research was primary data. #he
primary source of data for this research was 2uestionnaire
and the 2uestions was closed ended. #he information
collected from the 2uestionnaire was processed through $.$$
software. =sing the $.$$ sheet the result was concluded.
25
CHAPTER 4
REU)T AND DICUION
Table 011
Frequency distribution of respondent it! respect to t!eir "ender #N$%&%'
123 40.6 40.6 40.6
180 59.4 59.4 100.0
303 100.0 100.0
Female
Male
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Male
Female
Frequency distribution of respondent with respect
to their gender (N=!"
+igure 011
#able B.1 and its accompanying figure show fre2uency
distribuition of respondents with respect to gender. #he
table reveals that out of the total ?0?, G0J male and B0J
are female employees. #hus the table reveals that a clear
ma7ority of the respondents were males.
26
Table 01(
Frequency distribution of respondent it! respect to t!eir ("e #N$%&%'
19 6.3 6.3 6.3
121 39.9 39.9 46.2
99 32.7 32.7 78.9
47 15.5 15.5 94.4
17 5.6 5.6 100.0
303 100.0 100.0
20"25
26"30
31"35
36"40
#$o!e 40
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Above 40
36-40
31-35
26-30
20-25
Frequency distribution of respondent with respect
to their #ge (N=!"
+igure 01(
#able B., and its accompanying figure show fre2uency
distribuition of respondents with respect to age. #he table
reveals that out of the total ?0?, GJ are ,0A,3 years old,
B0J are ,GA?0, ??J are ?1A?3, 13J ?GAB0 and GJ are above B0
years old.
27
Table 01-
Frequency distribution of responses it! respect to )no*ed"s +s)i**s i,p(rted to
e,p*oyees periodic(**y to or) in te(, #N$%&%'
44 14.5 14.5 14.5
59 19.5 19.5 34.0
40 13.2 13.2 47.2
100 33.0 33.0 80.2
60 19.8 19.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
$now%edgs &s$i%%s i'p#rted to e'p%oyees periodic#%%y to
wor$ in te#' (N=!"
+igure 01-
#able B.? and its accompanying figure show fre2uency
distribuition of respondents with respect to nowledge,
sills imparted to employees periodicaaly wor in team. #he
table reveals that out of the total ?0?, ??J are strongly
disagree, 19J are disagree, 1?J are neutral, ??J agree and
,0J strongly agree.
28
Table 010
Frequency distribution of responses it! respect to e-tensi.e tr(inin" pro"r(, in (**
(spects of qu(*ity #N$%&%'
62 20.5 20.5 20.5
41 13.5 13.5 34.0
40 13.2 13.2 47.2
58 19.1 19.1 66.3
102 33.7 33.7 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
e(tensi)e tr#ining progr#' in #%% #spects of qu#%ity
(N=!"
+igure 010
#able B.B and its accompanying figure show fre2uency
distribuition of respondents with respect to e!tensive
training program in all aspects of 2uality. #he table
reveals that out of the total ?0?, ,1J are strongly
disagree, 1?J are disagree, 1?J are neutral, 19J agree and
?BJ strongly agree.
29
Table 012
Frequency distribution of responses it! respect to e,p*oyees "o t!rou"! tr(inin"
pro"r(, e.ery ye(r #N$%&%'
41 13.5 13.5 13.5
63 20.8 20.8 34.3
44 14.5 14.5 48.8
63 20.8 20.8 69.6
92 30.4 30.4 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
e'p%oyees go through tr#ining progr#' e)ery ye#r
(N=!"
+igure 012
#able B.3 and its accompanying figure show fre2uency
distribuition of respondents with respect to employees go
through for training program every year. #he table reveals
that out of the total ?0?, 1?J are strongly disagree, ,1J
are disagree, 13J are neutral, ,1J agree and ?0J strongly
agree.
30
Table 013
Frequency distribuition of resonses it! respect to tr(inin" pro"r(, te(c! ne
e,p*oyees t!eir s)i**s #N$%&%'
66 21.8 21.8 21.8
75 24.8 24.8 46.5
30 9.9 9.9 56.4
68 22.4 22.4 78.9
64 21.1 21.1 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribuition of resonses with respect to tr#ining progr#*
+igure 013
#able B.G and its accompanying figure show fre2uency
distribuition of respondents with respect to training
program will teach new employees their sills. #he table
reveals that out of the total ?0?, ,,J are strongly
disagree, ,3J are disagree, 10J are neutral, ,1J agree and
,1J strongly agree.
31
Table 014
Frequency distribution of responses it! respect to perfor,(nce of e,*oyees
,e(sures on qu(ntif(b*e resu*ts #N$%&%'
101 33.3 33.3 33.3
71 23.4 23.4 56.8
61 20.1 20.1 76.9
31 10.2 10.2 87.1
39 12.9 12.9 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
perfor'#nce of e'%oyees 'e#sures on qu#ntif#b%e
resu%ts (N=!"
Fi&ure 4.7
#able B.; and its accompanying figure show fre2uency
distribuition of respondents with respect to performance of
employees measures on 2uantifiable results. #he table
reveals that out of the total ?0?, ??J are strongly
disagree, ,BJ are disagree, ,0J are neutral, 10J agree and
1?J strongly agree.
32
Table 015
Frequency distribution of responses it! respect to or"(ni/(tion is "rot! (nd
de.e*op,ent oriented #N$%&%'
79 26.1 26.1 26.1
44 14.5 14.5 40.6
40 13.2 13.2 53.8
62 20.5 20.5 74.3
78 25.7 25.7 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
org#ni+#tion is growth #nd de)e%op'ent oriented
(N=!"
+igure 015
#able B.9 and its accompanying figure show fre2uency
distribuition of respondents with respect to organization
appraisal system is growth and develop oriented. #he table
reveals that out of the total ?0?, ,GJ are strongly
disagree, 13J are disagree, 1?J are neutral, ,0J agree and
,GJ strongly agree.
33
Table 016
Frequency distribution of responses it! respect to (pp(r(is(* syste, !(s ( stron"
inf*uence on indi.idu(* #N$%&%'
67 22.1 22.1 22.1
92 30.4 30.4 52.5
30 9.9 9.9 62.4
71 23.4 23.4 85.8
43 14.2 14.2 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
#pp#r#is#% syste' h#s # strong inf%uence on indi)idu#%
(N=!"
+igure 016
#able B.9 and its accompanying figure show fre2uency
distribuition of respondents with respect to appraisal
system has a strong influence on individual performance. #he
table reveals that out of the total ?0?, ,,J are strongly
disagree, ?0J are disagree, 10J are neutral, ,BJ agree and
1BJ strongly agree.
34
Table 0117
Frequency distribution of responses it! respect to ,ore t!en one potenti(* position
for pro,otion #N$%&%'
73 24.1 24.1 24.1
89 29.4 29.4 53.5
31 10.2 10.2 63.7
50 16.5 16.5 80.2
60 19.8 19.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
'ore then one potenti#% position for pro'otion
(N=!"
+igure 0117
#able B.10 and its accompanying figure show fre2uency
distribuition of respondents with respect to employees have
more then one potential position for promotion. #he table
reveals that out of the total ?0?, ,BJ are strongly
disagree, ,9J are disagree, 10J are neutral, 1;J agree and
,0J strongly agree.
35
Table 0111
Frequency distribution of responses it! respect to c(reer (nd de.e*op,ent of
e,p*oyees #N$%&%'
60 19.8 19.8 19.8
92 30.4 30.4 50.2
47 15.5 15.5 65.7
44 14.5 14.5 80.2
60 19.8 19.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect
to c#reer #nd de)e%op'ent of e'p%oyees (N=!"
+igure 0111
#able B.11 and its accompanying figure show fre2uency
distribuition of respondents with respect to organizations
plan to career and development of employees. #he table
reveals that out of the total ?0?, ,0J are strongly
disagree, ?0J are disagree, 13J are neutral, 13J agree and
,0J strongly agree.
36
Table 011(
Frequency distribution of responses it! respect to prefer intern(* e,p*oyees
!ene.er .(c(ncy e-ists #N$%&%'
83 27.4 27.4 27.4
39 12.9 12.9 40.3
45 14.9 14.9 55.1
70 23.1 23.1 78.2
66 21.8 21.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
prefer intern#% e'p%oyees whene)er )#c#ncy e(ists
(N=!"
+igure 011(
#able B.1, and its accompanying figure show fre2uency
distribuition of respondents with respect to organization
prefers internal employees whenever vacancy e!its. #he table
reveals that out of the total ?0?, ,;J are strongly
disagree, 1?J are disagree, 13J are neutral, ,?J agree and
,,J strongly agree.
37
Table 011-
Frequency distribution of responses it! respect to decisions re*(ted to cost (nd
qu(*ity ,(tters #N$%&%'
73 24.1 24.1 24.1
72 23.8 23.8 47.9
77 25.4 25.4 73.3
31 10.2 10.2 83.5
50 16.5 16.5 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
decisions re%#ted to cost #nd qu#%ity '#tters (N=!"
+igure 011-
#able B.1? and its accompanying figure show fre2uency
distribuition of respondents with respect to employees are
allow to mae decisions related to cost and 2uality matters.
#he table reveals that out of the total ?0?, ,BJ are
strongly disagree, ,BJ are disagree, ,3J are neutral, 10J
agree and 1;J strongly agree.
38
Table 0110
Frequency distribution of responses it! respect to superior to p(rticip(te in
oper(tion production re*(ted decisions #N$%&%'
69 22.8 22.8 22.8
81 26.7 26.7 49.5
80 26.4 26.4 75.9
32 10.6 10.6 86.5
41 13.5 13.5 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
superior to p#rticip#te in oper#tion production re%#ted
decisions (N=!"
Fi"ure 0120
#able B.B and its accompanying figure show fre2uency
distribuition of respondents with respect to employees are
ased by their superior to participate in operation related
decisions. #he table reveals that out of the total ?0?, ,?J
are strongly disagree, ,;J are disagree, ,GJ are neutral,
11J agree and 1?J strongly agree.
39
Table 0112
Frequency distribution of responses it! respect to s(*(ry (nd ot!er benefits
co,p(re to ,(r)et #N$%&%'
18 5.9 5.9 5.9
64 21.1 21.1 27.1
48 15.8 15.8 42.9
91 30.0 30.0 72.9
82 27.1 27.1 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
s#%#ry #nd other benefits co'p#re to '#r$et (N=!"
+igure 0112
#able B.13 and its accompanying figure show fre2uency
distribuition of respondents with respect to salary and
other benefits are compareable to maret. #he table reveals
that out of the total ?0?, GJ are strongly disagree, ,1J are
disagree, 1GJ are neutral, ?0J agree and ,;J strongly agree.
Table 0113
40
Frequency distribution of responses it! respect to co,pens(tion b(sis on
co,petency (nd e,p*oyee (bi*ity #N$%&%'
34 11.2 11.2 11.2
71 23.4 23.4 34.7
34 11.2 11.2 45.9
91 30.0 30.0 75.9
73 24.1 24.1 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
co'pens#tion b#sis on co'petency #nd e'p%oyee
#bi%ity (N=!"
+igure 0113
#able B.1G and its accompanying figure show fre2uency
distribuition of respondents with respect to compensation is
decided on the basis of competence or ability of employees.
#he table reveals that out of the total ?0?, 11J are
strongly disagree, ,BJ are disagree, 11J are neutral, ?0J
agree and ,BJ strongly agree.
Table 0114
41
Frequency distribution of responses it! respect to co,pens(tion direct*y *in)ed to
!is3!er perfor,(nce #N$%&%'
36 11.9 11.9 11.9
71 23.4 23.4 35.3
51 16.8 16.8 52.1
73 24.1 24.1 76.2
72 23.8 23.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
+igure
0114
#able
B.1; and
its
accompanying figure show fre2uency distribuition of
respondents with respect to compensation is directly lined
to his@her performance. #he table reveals that out of the
total ?0?, 1,J are strongly disagree, ,?J are disagree, 1;J
are neutral, ,BJ agree and ,BJ strongly agree.
Table 0115
42
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
co'pens#tion direct%y %in$ed to his,her perfor'#nce
(N=!"
Frequency distribution of responses it! respect to profit s!(rin" is used (s (
,ec!(nis, #N$%&%'
39 12.9 12.9 12.9
17 5.6 5.6 18.5
52 17.2 17.2 35.6
102 33.7 33.7 69.3
93 30.7 30.7 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect
to profit sh#ring is used #s # 'ech#nis' (N=!"
+igure 0115
#able B.19 and its accompanying figure show fre2uency
distribuition of respondents with respect to profit sharing
is used as a mechanism to reward higher performance. #he
table reveals that out of the total ?0?, 1?J are strongly
disagree, GJ are disagree, 1;J are neutral, ?BJ agree and
?1J strongly agree.

Table 0116
43
Frequency distribution of responses it! respect to duties of e.ery 4ob (re c*e(r*y
defined #N$%&%'
84 27.7 27.7 27.7
56 18.5 18.5 46.2
52 17.2 17.2 63.4
70 23.1 23.1 86.5
41 13.5 13.5 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect
to duties of e)ery -ob #re c%e#r%y defined (N=!"
+igure 0116
#able B.19 and its accompanying figure show fre2uency
distribuition of respondents with respect to duties of every
7ob are clearly defined in the organization. #he table
reveals that out of the total ?0?, ,9J are strongly
disagree, 19J are disagree, 1;J are neutral, ,?J agree and
1?J strongly agree.
44
Table 01(7
Frequency distribution of responses it! respect to e(c! 4ob cont(ins (** t!e duties
perofr,ed by indi.idu(* duties #N$%&%'
56 18.5 18.5 18.5
83 27.4 27.4 45.9
51 16.8 16.8 62.7
43 14.2 14.2 76.9
70 23.1 23.1 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
e#ch -ob cont#ins #%% the duties perofr'ed by indi)idu#%
duties (N=!"
+igure 01(7
#able B.,0 and its accompanying figure show fre2uency
distribuition of respondents with respect to each 7ob
contains all the duties performed by individual employee.
#he table reveals that out of the total ?0?, 19J are
strongly disagree, ,;J are disagree, 1;J are neutral, 1BJ
agree and ,?J strongly agree.
45
Table 01(1
Frequency distribution of responses it! respect to (ctu(* duties (re s!(ped ,ore by
e,p*oyees by for,(* 4ob #N$%&%'
41 13.5 13.5 13.5
107 35.3 35.3 48.8
55 18.2 18.2 67.0
46 15.2 15.2 82.2
54 17.8 17.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
#ctu#% duties #re sh#ped 'ore by e'p%oyees by for'#%
-ob (N=!"
+igure 01(1
#able B.,1 and its accompanying figure show fre2uency
distribuition of respondents with respect to actual 7ob
duties are shaped more by the employee then by the formal
7ob description. #he table reveals that out of the total
?0?, 1BJ are strongly disagree, ?3J are disagree, 19J are
neutral, 13J agree and 19J strongly agree.
46
Table 01((
Frequency distribution of responses it! respect to se*ection syste, !i"!*y sientific
(nd ri"orous #N$%&%'
80 26.4 26.4 26.4
68 22.4 22.4 48.8
43 14.2 14.2 63.0
71 23.4 23.4 86.5
41 13.5 13.5 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
se%ection syste' high%y sientific #nd rigorous (N=!"
+igure 01((
#able B.,, and its accompanying figure show fre2uency
distribuition of respondents with respect to selection
system are highly scientific and rigorous. #he table reveals
that out of the total ?0?, ,GJ are strongly disagree, ,,J
are disagree, 1BJ are neutral, ,?J agree and 1BJ strongly
agree.
47
Table 01(-
Frequency distribution of responses it! respect to *ine (nd Hr ,(n("ers p(rticip(te
in se*ection #N$%&%'
85 28.1 28.1 28.1
64 21.1 21.1 49.2
52 17.2 17.2 66.3
43 14.2 14.2 80.5
59 19.5 19.5 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
%ine #nd Hr '#n#gers p#rticip#te in se%ection (N=!"
+igure 01(-
#able B.,? and its accompanying figure show fre2uency
distribuition of respondents with respect to line and hr
managers participate in selection. #he table reveals that
out of the total ?0?, ,9J are strongly disagree, ,1J are
disagree, 1;J are neutral, 1BJ agree and ,0J strongly agree.
Table 01(0
48
Frequency distribution of responses it! respect to .(*id (nd st(nd(ri/ed test used
!en required in se*ection process N$%&%'
63 20.8 20.8 20.8
77 25.4 25.4 46.2
36 11.9 11.9 58.1
55 18.2 18.2 76.2
72 23.8 23.8 100.0
303 100.0 100.0
%tron&ly 'i(a&ree
'i(a&ree
)eutral
#&ree
%tron&ly #&ree
Total
Valid
Frequency Percent Valid Percent
umulati!e
Percent
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Frequency distribution of responses with respect to
)#%id #nd st#nd#ri+ed test used when required in
se%ection process N=!"
+igure 01(0
#able B.B and its accompanying figure show fre2uency
distribuition of respondents with respect to valid and
standardized test are used when re2uired in the selection
process. #he table reveals that out of the total ?0?, ,1J
are strongly disagree, ,3J are disagree, 1,J are neutral,
19J agree and ,BJ strongly agree.
49
R E ) I A B I ) I T 8 A N A ) 8 I 9 C A ) E
:A ) P H A;
Al%'a Anal"sis :Consis!enc"<reliabili!" of res%onses;
Table 01(2
6ronbachs alpha is used to estimate the proportion of
variance that is systematic or consistent in a set of test
scores. It can range from 00.0 )if no variance is
consistent- to 1.00 )if all variance is consistent- with all
values between 00.0 and 1.00 also being possible.
#here are ,B numbers of items in the 2uestionnaire filled by
?0? telecom employees of Islamabad. #he data retrieved from
the survey is 91J reliable and 9J unreliable )100J A 91J L
9J-.
C#se Processing .u''#ry
N %
ases !ali" 303 100#0
$%&lu"e"
a
0 #0
'otal 303 100#0
a# (ist)ise "eletion base" on all variables in t*e
+ro&e"ure#
Re%i#bi%ity .t#tistics
ronba&*,s Al+*a N o- .tems
#/10 24
50
)i#i!a!ions of !'e !ud"
#he results of this study should be viewed with a small
number of limitations in mind this research study has the
following limitationsM
Hue to the small sample size the results of the study do not
properly reflect the factual image of the organizations
functioning in .aistan in conte!t with the impact of
selection system, 7ob definition, career planning, #raining,
8mployee participation, compensation, performance appraisals
system on firm performance in .aistan.
#he method used by us in order to collect the data is very
common as we have used the 2uestionnaire method for this
research study. <ther methods could have been used for this
research study lie group discussions@discussion forum etc.
'vailability of limited information regarding the variables
studied is one of the main limitations we faced while
conducting the study.
#he data is analyzed only for the telecom sector of
Islamabad.
51
CHAPTER 2
CONC)UION AND RECO..ENDATION
Conclusion
#his research has scanned seven H%& practices which have a
positive impact on employees performance. &any factors are
considered during the research, which are related to
training, compensation, career planning, performance
appraisal, 7ob definition, employee participation and
selection on perceived firm performance of telecom sector in
Islamabad.
In this research different 2uestions are ased to employees
related to training. &ost of the employees are satisfied to
training programs. 8mployees of different organizations feel
that training will enhance their performance and bring
confidence. 6hapter B clearly shows that the organizations
giving training to their employees and covering all aspects
of 2uality training programs and this is the reason the
telecom sector is fast growing in .aistan because the
organization understand the importance of training practice
for their employees. 8mployees feel that training really
helps them to finish their 7ob in time. #his is the reasons
most of employees go through for training program every year
and this research shows that more then 30J of employees
feels that training have the positive impact on perceived
firm performance.
#he other H%& practice is compensation which has the highest
impact on employee performance )3GJ-. 'ccording to chapter B
52
the employees of telecom sector are very much satisfied to
companys salary and other bonus pacages because it is very
much compare to maret. #hey feel that the compensation is
directly lined with employees performance, results and
abilities. $o that the compensation motivates employees for
hard wor and get reward to improve his@her performance in
the end it will lead towards firm performance.
'nother important finding of the survey is the performance
appraisal practice. %esearch shows that the appraisal system
in the organization is growth and developed oriented.
&a7ority of the employees responded that they consider it a
very important consideration as well. However, it is very
natural that any policy going into the favor of the
employees always maes the employees to feel satisfied and
survey shows that the appraisals system has a strong
influence on individual and team behavior.
'nother important finding of the survey is the career
planning that the employees in telecom sector has more then
one potential position for promotion. In career planning
more then 30J employees are not satisfied with company
policies related to career development. 8mployees feel that
the organization plans related to career planning are not
satisfactory. #he employees of telecom sector are satisfied
of company policy related to promotion system. 0urther
results shows that the organization ased first to internal
employees whenever vacancy e!ists.
'nother important finding related with employees
participation in decision maing. &ostly employees are not
satisfied with their involvement in decision maing.
53
$imilarly, the findings indicated that the selection system
in the telecom sector is not scientific and rigorous. #he
employees of telecom sector are not satisfied by their
organization selection process.
$o finally we conclude that H%& practices have positive
impact on firm performance especially compensation and
training have a highest positive impact on perceived firm
performance.
54
Reco##enda!ions
#he organization need to focus on compensation practice
because it shows that the compensation will motivate
employees so if compensation is good and according to the
employees e!pectation then the employees will wor hard
and it will automatically the positive sign for firm
performance.
#he organization should set the criteria that each and
every employee will go through for training program in
every year. Five them the ma!imum opportunities to learn
then ased them to present different ideas, so that a
right ind of an environment can develop and it will be
very useful for the organization.
#he performance appraisal system of organization should
be the one on which each employee have faith and the
ob7ective of appraisal system should be clear to all
employees. &ost importantly it should not be biased.
#hen the organization should have a clear career path for
individual. 8ach and every employee should aware of his
career path in the organization.
8mployees are not satisfied by their participation so
organization need to ased them to participate in
decision maing and it will bring confidence and
motivation among employees.
55
0air $election system is very important for good
organization performance. $o the selection system should
be valid and standardized test will used for selection
process.
This research should be extended in telecom sector
throughout Pakistan, so that HR improvements can be made
throughout the telecom sector of Pakistan.
This research should be conducted in other organizations
as well, e.g wapda where employees are not satisfied by
their organization policies and practices. By properly
implementing these variables the firms can remove or
overcome the problems.
56
57
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httpM@@en.wiipedia.org@wii@#raining
httpM@@en.wiipedia.org@wii@6areerPplanning
httpM@@findarticles.com@p@articles@miPhb,;0@isP?P,G@aiPn,9?3
09G1@pgP1
61
A%%endi= B
>ues!ionnaires
I&.'6# <0 H=&'1 %8$<=%68 &'1'F8&81# )H%&- .%'6#I68$ <1
.erceived firm .8%0<%&'168
Age :Please Tick our a!e "roup;
,0A,3 ,GA?0 ?1A?3 ?GAB0 'bove B0
Please Tick a%%licable genderM
&ale 0emale
HU.AN REOURCE :HR; PRACTICE
1oteM ' number of statements dealing with various aspects of
Human %esources in your organization are given below. .lease
indicate the e!tent to which each statement describes your
organization using the following 3Apoint scale.
3 L means it is strongly agree
B L means it is agree
? L means it is neutral
, L means it is disagree
1 L means it is strongly disagree
I1 Training
1. 1ew nowledge and sills are imparted to employees
.eriodically to wor in teams.
1 , ? B 3
,. <ur organization conducts e!tensive training programs
for its employees in all aspects of 2uality.
1 , ? B 3
?. 8mployees in each 7ob will normally go through training
.rograms every year.
1 , ? B 3
B. #raining needs are identified through a formal
performance appraisal mechanism.
62
1 , ? B 3
II1 Perfor#ance A%%raisal
1. .erformance of the employees is measured on the
basis of ob7ective 2uantifiable results.
1 , ? B 3
,. 'ppraisal system in our organization is growth and
development oriented.

1 , ? B 3
?. 'ppraisal system has a strong influence on individual
and team behavior.
1 , ? B 3
III1 Career Planning
1. 8mployees in our organization have more than one
potential position for promotion.

1 , ? B 3
,. <ur organization plans for the career and development
of employees.
1 , ? B 3
?. <ur organization prefers an internal employee whenever
a vacancy e!ists.
1 , ? B 3
I,1 E#%lo"ee Par!ici%a!ion
1. 8mployees in this organization are allowed to mae
decisions related to cost and 2uality matters.
1 , ? B 3
,. 8mployees in this organization are ased by their
superiors to participate in operations @ production
related decisions.
63
1 , ? B 3
,1 $ob Defini!ion
1. #he duties of every 7ob are clearly defined in our
organization.
1 , ? B 3
,. #he 7ob description for each 7ob contains all the
duties performed by individual employee.
1 , ? B 3
?. #he actual 7ob duties are shaped more by the
employee than by the formal 7ob description.
1 , ? B 3
,I1 Co#%ensa!ion
1. In our organization, salary and other benefits are
6omparable to the maret.
1 , ? B 3
,. In our organization, compensation is decided on the
basis of competence or ability of the employee.
1 , ? B 3
?. #he compensation for all employees is directly lined
to his@her performance.
1 , ? B 3
B. In our organization, profit sharing is used as a
mechanism to reward higher performance.
1 , ? B 3
,II1 elec!ion
1. #he selection systems followed in our organization
are highly scientific and rigorous.
64
1 , ? B 3
,. In our organization, line managers and H% managers
.articipate in selection.
1 , ? B 3
?. Oalid and standardized tests are used when re2uired
in the selection process.
1 , ? B 3
65
EA8 RATER REPORT

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