HRM, Article Review

[Type the document title]
JOURNAL ARTICLE CRITICAL REVIEW ON “The Effects of Human Resource Capability

and Internal Customer Satisfaction on Organizational Effectiveness”
1. Introduction
Human resources capacity building as the development of knowledge, skills and attitudes in
individuals and groups of people relevant in design, development, management and maintenance
of institutional and operational infrastructures and processes that are locally meaningful. And it
can be used to increase the performance of an organization.
The author used a process - oriented approach to develop an integrated method for estimating all
of the relevant variables of human resource capabilities and organizational effectiveness.
Moreover, the author has carried out an experimental investigation considering a state-owned
Company-A as an illustration in the article.
The purpose of the article was to offer an integrated model that effectively demarcates the
process variables of HR competence and organizational effectiveness, investigate personnel'
subjective views of HR competency and job satisfaction, as well as their effect on factors related
to organizational performance, to confirm the nature of the relationship between organizational
commitment and service quality, understand the current subjective recognitions of Company-A
workers on the factors significant to HR capability and organizational performance, affirm the
factors important to HR capability and organizational viability and compare the results of
utilizing Company-A as the ponder subjects with the findings of past inquire about and prescribe
procedures that can successfully improve the organizational effectiveness of Company-A.
The general aspect of the article and the author research is to help Company A in achieving its
organizational objective by assessing the problems facing in sustaining its effectiveness due to
privatization of the company.
The author tries to analyze different variables which has direct relationship with organizational
effectiveness and tries to develop different hypothesis from previous studies and looks them
from company-A conditions.
2. Discussion
The article tries to cover different literature reviews and hypothesizes them in to different
researchable titles as follows; under Internal Customer Satisfaction and Human Resource
Capability the author developed a hypothesis as H1-1: HR capability significantly positively
influences internal customer satisfaction. Under Organizational Commitment and Human
Resource makes three hypothesis as H2-1: HR capability significantly positively influences
employee’s affective commitment. H2-2: HR capability significantly positively influences
employee’s normative commitment. H2-3: HR capability significantly negatively influences
employee’s continuance commitment Capability. Under Organizational Commitment and
Internal Customer Satisfaction. H3-1: Internal customer satisfaction significantly positively
influences affective commitment. H3-2: Internal customer satisfaction significantly positively
influences normative commitment. H3-3: Internal customer satisfaction significantly negatively

influences continuance commitment. Under Service Quality and Internal Customer Satisfaction.
H4: Internal customer satisfaction significantly positively affects service quality. Under Service
Quality and Organizational Commitment H5-1: Affective commitment significantly positively
affects service quality. H5-2: Normative commitment significantly positively affects service
quality. H5-3: Continuance commitment significantly negatively affects service quality. Under
Organizational Effectiveness and Human Resource Capability H6: HR capability significantly
positively influences organizational effectiveness. Under Organizational Effectiveness and
Internal Customer Satisfaction. H7: Internal customer satisfaction significantly positively
influences organizational effectiveness. And Under Organizational Effectiveness and Service
Quality H8: Service quality significantly positively influences organizational effectiveness.
Finally the author puts all the hypothesis and the study areas in a diagrammatical form so to
understand the relation of each hypothesis with their respective responsible variables’
The researcher (author) collects data through distributed questionaries’ among the worker f
company-A and The questionnaire of the study comprised five sections that are demographic
data, items pertinent to HR capability, organizational commitment, service quality, and
organizational effectiveness. The researcher prepares a 7-point Likers scales where a score of 1
represents strongly disagree and 7 denotes strongly agree.
The researcher adopts Smart PLS 2.0 software, with employed the partial least square (PLS)
method to test the measurement model and the structural model of the study data measurement
model analysis.
According to the researcher analysis, the AVE and factor loading of all the variables ranged
between 0.54 and 0.94 and between 0.58 and 0.97, respectively, suggesting that the constructs
used in the study’s model have satisfactory convergent validity.
In the article, the minimum square root of the AVE is 0.87, which is greater than the maximum
correlation coefficient. Which shows that the items of the variables in the measurement model
are distinct; thus, all constructs have satisfactory discriminant validity.
3. Conclusion
The Researcher found out that the research results reveal the internal customer satisfaction,
which is highly valued in internal marketing, was primarily influenced by team orientation,
affective commitment, and normative commitment. However, the effects of training, pay for
performance, and continuance commitment were not as strong as expected.
Strength of the article
 The researcher covers the important variables and the relation among all the variables
were analyzed and discussed effectively.
 The researcher tries to make the questioners well understandable by the research groups
through conducting a preliminary survey on the words that he has used on the questioner.
 The author has localized all the general concepts to the company-A condition and tries to
describe the company well.
Weakness of the article
 The research only deals with the current condition of the company. But as the research
anticipates the company will be privatized in the future. Which means the research on the
presented article doesn’t hold true for the future sustainability of the company’s
competitiveness and effectiveness.
Future research questions
 During the future privatization of the company how the significant organizational
effectiveness variables will relate and how to sustain the competitiveness of the company
through all the changes.
The reviewed article were done by
Huan-Ming Chuang,1 Mao-Jen Liu,1 and You-Shyang Chen2
1Department of Information Management, National Yunlin University of Science and Technology, 123 University Road,
Section 3, Douliou, Yunlin 640, Taiwan
2Department of Information Management, Hwa Hsia University of Technology, 111 Gong Jhuan Road, Chung Ho District,
New Taipei City 235, Taiwan

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JOURNAL ARTICLE CRITICAL REVIEW ON “The Effects of Human Resource Capability

influences normative commitment. H3-3: Internal customer satisfaction significantly negatively

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