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The impact of human resource management practices on performance: Evidence from a

Public University
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Muslim Amin, Wan Khairuzzaman Wan Ismail, Siti Zaleha Abdul Rasid, Richard Daverson Andrew
Selemani,
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from a Public University", The TQM Journal, Vol. 26 Issue: 2, pp.125-142, https://doi.org/10.1108/
TQM-10-2011-0062
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The impact of
The impact of human resource HRM practices
management practices on
performance
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Evidence from a Public University 125

Muslim Amin Received 21 October 2011
Revised 16 April 2012
Management Department, College of Business Administration, 3 December 2012
King Saud University, Riyadh, Kingdom of Saudi Arabia Accepted 15 April 2013
Wan Khairuzzaman Wan Ismail
Jazan College of Business Administration, Jazan University, Jazan,
Kingdom of Saudi Arabia, and
Siti Zaleha Abdul Rasid and Richard Daverson Andrew Selemani
International Business School, Universiti Teknologi Malaysia (UTM-IBS),
Kuala Lumpur, Malaysia

Abstract
Purpose – The purpose of this paper is to examine the impact of human resource management (HRM)
practices on organizational performance.
Design/methodology/approach – A total of 300 employees from a public university comprising of
both academicians and support staff responded to the survey. The survey questionnaire had 46 items
covering selected HRM practices and university performance.
Findings – The study has found that human resource practices: recruitment, training, performance
appraisal, career planning, employee participation, job definition and compensation have a significant
relationship with university performance.
Research limitations/implications – The results come from a cross-sectional study which was
done at the convenience of the researcher. The results may not be generalized across the country. The
application of the results to other universities must be done with maximum care.
Practical implications – If the university is to increase its performance to higher levels, it should
emphasize more on job definition, training and employee participation. Some improvement needs to be
done on the other HRM practices-recruitment, performance appraisal, career planning and
compensation in order to increase their effectiveness on the university performance.
Originality/value – Most studies on impact of HRM practices on firm performance have focussed on
private sectors in Malaysia. In other countries, the studies have focussed only on academicians as a
sample. This study has attempted to add to the body of knowledge on the impact of HRM practices on
university performance in Malaysia combining both the academicians and administration staff.
Keywords Public sector, Performance management, Malaysia, Human resource practices,
University performance
Paper type Research paper

Introduction
Employees are one of the most important assets of an organization as they contribute
to its growth and success (Danish and Usman, 2010). Malik et al. (2010) concluded
that in the era characterized by rapid and continuous change, knowledge capital must The TQM Journal
Vol. 26 No. 2, 2014
be retained in order for organizations to be productive and responsive to the needs of pp. 125-142
r Emerald Group Publishing Limited
their stakeholders. Likewise, universities as training and research institutions need 1754-2731
to attract, retain and develop their employees. Universities need employees who are DOI 10.1108/TQM-10-2011-0062
 TQM well trained and motivated so that they are committed to their work of conducting
26,2 research and training for the development of the nations (Lew, 2009). Research
literature has shown that effective application of some human resources management
(HRM) practices enables university employees to be committed to their work for good
performance of the universities (Chen et al., 2009; Shahzad et al., 2008).
Implementation of appropriate HRM practices for university employees will
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126 promote university performance as Lew (2009) noted that employees play a strategic
role in improving ratings in key areas like research quality, academic reputation of
faculty, academic program quality, research contribution to society, preparation
of tomorrow’s leaders and quality of graduates. Realizing the importance of promoting
university performance, many universities are embarking into strategizing its
HRM practices and Malaysia universities have jumped on the bandwagon. Even
its government aspires to turn Malaysia into an international hub for world class
education through establishment of top and leading universities (Sirat, 2005). For this to
materialize, it is significant that the country’s universities improve their world class
university ranking by attracting and retaining excellent and experience academicians
and support staff.
In 2010, the Malaysian Government launched its economic transformation
programme (ETP) which is the road map for fast tracking its economic development.
One of the sectors which will play an important role is education especially the higher
learning institutions. The nation needs more human resources capable of performing
different activities both in public and private sectors. Subsequently, the higher learning
institutions are expected to produce high-quality human resources. Training and
development of well-qualified human resources will depend on the performance
of the universities (Malik et al., 2010) subjected to effective implementation of different
bundles of HRM practices such as selection, compensation, information sharing,
participative decision making, job definition, training, career planning and
performance management among others (Delery and Doty, 1996; Smeenk et al., 2006).
Studies on the impact of human resource practices on performance with particular
reference to Malaysia have focussed on the private sector (Osman et al., 2011a;
Abdullah et al., 2009; Lew, 2009). Literature indicates that past studies have also
focussed on the impact of HRM practices on university performance with
academicians as the center of focus (Chen et al., 2009; Malik et al., 2010; Lew, 2009;
Rowley, 1996). Little empirical research has been conducted to examine the effects of
HRM practices on public universities performance in Malaysia. Therefore, this study is
to examine the impact of HRM practices on organizational performance in Malaysia
with a particular focus on a public university. The next section reviews relevant
literature followed by methodology and analyses of the results. Finally, the conclusions
and implications for the study are discussed.

Literature review and hypotheses development

Previous studies have found that HRM practices have an effect on employee
performance and competitive advantage of an organization (Guest, 2002; Wright
et al., 2003; Balochi et al., 2010; Qureshi et al., 2010; Khan, 2010). Pfeffer (1994)
identified 16 practices which can enhance a firm’s competitive advantage such as
employment security, selectivity in recruiting, information sharing, participation
and empowerment, training and skill development, incentives, high wages,
promotion among others. Meanwhile, Guest (2002) argued that the impact of
HRM practices on organizational performance depends on the response of workers
 to HRM practices. If employees have a negative perception, organizational The impact of
performance will be low and vice versa. Furthermore, Ekaterini (2010) reaffirmed HRM practices
the findings of Wright et al. (1994) that the nature of organization’s human capital
and the way it is managed can have an impact on employees and firm performance.
Similarly, Huselid (1995) established that the effectiveness of employees largely
depends on the impact of HRM practices on employees’ behavior.
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Meanwhile, Delaney and Huselid (1996) identified recruitment and selection, 127
training and development, participation and reward as HR practices. Lee and Lee
(2007) identified training and development, team work, performance appraisal,
compensation/incentives, human resources planning and employment security help
improve performance including increased employee productivity, product quality and
firm’s flexibility. On the other hand, Qureshi et al. (2010) categorize HRM practices into
selection system, training, job definition, performance appraisal system, compensation
system, career planning system and employee participation. Therefore, for the
purpose of this study, the following HRM practices are considered: recruitment,
training, performance appraisal, career planning, job definition, employee
participation and compensation.

HR practices and university performance

Organizations are implementing HRM practices and systems to take advantage of
the potential strength of the employees to sustain competitive advantage ( Jackson and
Schuler, 2000; McDuffie, 1995 cited in Khan, 2010). It has also been established that
there is a positive and significant relationship between HRM practices and
organizational performance (Becker and Huselid, 1998; Ahmed and Schroeder, 2003;
Tessema and Soeter, 2006; Rizov and Croucher, 2009; Lee et al., 2010; Khan, 2010).
Meanwhile, Abdullah et al. (2009) highlighted that training and development, team
work, performance appraisal and human resources planning have direct effect on
business performance. Green et al. (2006) and Khan (2010) found that integrated
approach to HRM practices will increase employee satisfaction and commitment which
consequently lead to remarkable individual and team performance.
Previous studies on the relationship between HR practices and firm performance
have used balanced score card (BSC) or key performance indicators (KPI) across
industries (Chand and Katou, 2007; Rizov and Croucher, 2009; Abdullah et al., 2009;
Khan, 2010; Osman et al., 2011b). However, there is lack of literature supporting
application of BSC or KPI in education sector (Stavrakakis et al., 2010; Nistor, 2009;
Jonen and Simgen, 2006; Karathanos and Karathanos, 2005). Currently there is no
consensus on BSC or KPIs for assessing university performance. This
notwithstanding, the choice of the BSC elements tend to revolve around KPIs related
to teaching, learning and growth, research, finance, customer service, student
experience, management and governance among others. The following discussion
will focus on hypotheses development.

Recruitment and selection and organizational performance

Recruitment is defined as the process by which organizations locate and attract
individuals to fill job vacancies (Fisher et al., 1999). It can also be defined as any
practice or activity carried on by organization with the primary purpose of identifying
and attracting potential employees (Noe et al., 2008). According to Bohlander and Snell
(2007) selection is the process of reducing the number and choosing from among those
individuals who have the relevant qualifications. Unless suitable people are assessed
 TQM and selected, the organization will fail to achieve its objectives and will run
26,2 into a variety of personnel problems: high turnover, low productivity, high rates of
absenteeism and employee stress (Storey, 2007). Therefore, to maximize competitive
advantage a company should choose the recruitment method that produces the best pool
of candidates efficiently and effectively (Kleiman, 2000).
Recruitment is one of the major functions of HRM and it helps managers attract
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128 and select best candidates which in turn leads to improved organization performance
(Rehman, 2012). Formal recruitment methods include newspaper classified
advertisements, network bulletins, posters and human resource banks, while
informal methods include personal connections and introductions through teachers
and other staffs (Chen and Cheng, 2012). The effectiveness of different recruitment
sources for new employees has been the topic of speculation and research for over
50 years and this effectiveness has primarily been assessed by examining job survival
rates and job performance (Breaugh, 2008; Rehman, 2012; Zottoli and Wanous, 2000).
In addition, Ferris et al. (2002) found that effectiveness of recruitment practices
has an impact on organizational effectiveness. Similarly, many researchers agreed
that effective recruitment and selection will lead to competitive advantage and high
performance of organization (Pfeffer, 1994; Storey, 2007; Zheng et al., 2006; Werther and
Davis, 1996). Therefore, we suggest the following hypothesis:

H1. Recruitment and selection has significant relationship with organizational

performance.

Training and organizational performance

Training refers to the methods used to give new or present employees the skills,
knowledge behaviors and other abilities they need to perform their jobs
(DeNisi and Griffin, 2001). Training is intended to modify individuals skills or
attitudes (Herold and Fedor, 2003). Training also contributes to the development
of positive dispositions toward growth and change as enacted by individuals as
well as groups and teams (Paul, 2009a). Given the increasing complexity of the tasks
and skills needed in modern society, developing effective training strategies is of
tremendous practical importance, i.e., training that improves performance of both
trained and untrained tasks would be highly efficient (Barzegar and Farjad, 2011;
Lee et al., 2012; Tung-Chun, 2001). Training enhances employees’ capabilities which
is instrumental in improving overall organizational performance (Mackelprang et al.,
2012; Millar and Stevens, 2012). Previous studies reveal that there is a positive
relationship between training and organizational performance (Qureshi et al., 2010;
Khan, 2010; Abdullah et al., 2009; Katou and Budhwar, 2006; Chang and Chen,
2002; Huselid, 1995; Singh, 2004). For example, Khan (2010), Katou (2008) and
Qureshi et al. (2010) concluded that HRM practices have profound effect on
organizational performance. HRM practices such as selection and training
and development enhances employee performance by providing relevant skills.
Similarly, Paul (2009b) revealed that employee training is also significant for
organizational performance as it is a mean through which organizational culture
and employee behavior can be aligned to outcomes. Thus, the following hypothesis
is suggested:

H2. Training has significant relationship with organizational performance.

 Performance appraisal and organizational performance The impact of
Performance appraisal can be defined as the process of determining and HRM practices
communicating to an employee how well he or she is performing on the job and
ideally establishing a plan of improvement (Byars and Rue, 2004; Young et al., 1995).
Appraisal comprises an objective evaluation of an employee’s performance combined
with an outline of measures to be taken for improvement and counter-signed by both
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employee and manager (Osman et al., 2011b). The term “performance appraisal” has 129
generally meant the annual interview that takes place between the manager and the
employee to discuss the individual’s job performance during the previous 12 months
and the compilation of action plans to encourage improved performance ( John and
Steven, 2000).
Literature indicates that there is a significant relationship between performance
appraisal and organizational performance (Khan, 2010; Qureshi et al., 2010; Abdullah
et al., 2009; Lee and Lee, 2007; Chang and Chen, 2002). For example, Brown and
Heywood (2005) argued that complementary HRM practices, i.e., formal training
and incentive pay enhance performance appraisal leading to a greater influence of
productivity. Managing performance of employees forms an integral part of an
organization and reflects how they manage their human capital (Meyer and Kirsten,
2005). Moreover, ineffective appraisal practices can lead to many undesirable problems
including low morale, decreased employee productivity and low enthusiasm to support
organizations, hence decrease organizational performance (Osman et al., 2011b).
In fact, an effective performance appraisal should encompass an overall framework or
context that enables the entire process to operate at an optimal level of performance
(Giles et al., 1997). Therefore, the following hypothesis is suggested:

H3. Performance appraisal has significant relationship with organizational

performance.

Career planning and organizational performance

Career planning is the deliberate process through which someone becomes aware of his
or her personal skills, interests, knowledge, motivations and other characteristics;
acquires information about opportunities and choices; identifies career-related goals;
and establishes action plans to attain specific goals (Abdulkadir et al., 2012). It aligns
strategy with future human resources needs (Werther and Davis, 1996) and is integral
to the career development process (Rogers and Creed, 2011).
Many researchers agree that career planning influences performance of both
employees and organization (Osman et al., 2011b; Qureshi et al., 2010; Katou and
Budhwar, 2006; DeNisi and Griffin, 2001). Planning for a career and exploring potential
career options are actions designed to implement one’s goals to progress vocational
development (Rogers et al., 2008). Its help in balancing the preferences and abilities of
the employees and the requests of the organization. In other words, career planning
and development as a process, aligns the interests and skills of the employees with
the needs of the organization (Nwuche and Awa, 2011) which in turn leads to enhanced
organizational performance. The discussion therefore, suggests the following
hypothesis:

H4. Career planning has significant relationship with organizational

performance.
 TQM Job definition and organizational performance
26,2 A job description can best be thought of as a blue print of the position. It outlines the
essential duties and responsibilities that are expected of the employee and the basic
purpose of the work the employee is expected to perform (Marie and Brian, 2005).
Thus, the job description has life; it is a living, viable document that dictates success
or, conversely in its absence, allows a climate of confusion, shoddy work practices,
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130 vague and subjective performance evaluations, and organizational disharmony

(Manning et al., 2012).
The majority of hiring mistakes made could be prevented if the people
responsible for the hiring simply did a more effective job of determining exactly
what they were looking for before they started to look for the candidate (Erica and
Brian, 2002). Proper job description and specification which originate from job
analysis clearly outline the duties, responsibilities, working conditions and expected
skills of an individual in performing a job (Manning et al., 2012). As Ruwan (2007)
argued that conducting job analysis and subsequently providing employees with
job description prevents the situation in which employees do not know what is
expected of them.
There is a direct relationship between the strength and effectiveness of an
organization and the quality of job descriptions (Manning et al., 2012). With the
information gathered during the job analysis step, a manager will be able to improve
the job description as needed (Bob, 2008). A precise job description would lead
to company effectiveness (Bozena, 2002; Chi Ming and Brian, 2002). Thus, the following
hypothesis is proposed:

H5. Job description has significant relationship with organizational performance.

Employee participation and organizational performance

Participation is the mechanism of work dialog among workers, which gives them the
opportunity to exchange information and ideas (Adel Mohammad, 2010). It is an
arrangement that ensure that employees are given the opportunity to influence
management decisions and to contribute to the improvement of organizational
performance (Abdulkadir et al., 2012). Participation is about employees playing a
greater role in the decision-making process and would lead to company performance
effectiveness (Antonio et al., 2000; David et al., 2006; Denton, 1994).
There is evidence to suggest that employee participation enhances the performance
of firms (Osman et al., 2011b; Khan, 2010; Qureshi et al., 2010; Katou and
Budhwar, 2006; Zheng et al., 2006; Rizov and Croucher, 2009; George, 1999). For
example, David et al. (2006) consider manufacturing excellence, competitiveness
and a company’s ability to continuous innovation to be dependent among others on the
participation and involvement of employees at different levels. Further, TQM
organizations, for example, use a participative approach in decision making because
doing so offers a number of benefits ( Jan Kees and Michiel, 2002). At the same time,
indirect means of participation, such as works councils, can have a useful role to play
this may be of much less significance to employees than the direct involvement that
line managers can create (Rees and Christine, 1998).The following hypothesis is
proposed:

H6. Participation has significant relationship with organizational performance.

 Compensation and organizational performance The impact of
Compensation is a reward system that a company provide to individuals in turn for HRM practices
their willingness to perform various jobs and tasks within organizations (DeNisi and
Griffin, 2001). Appropriate and equitable rewards need to be provided to the employees
so that they feel valued and the reward matches with their skills, abilities and
contribution to the firm (Fisher et al., 1999).
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It has been found that there is a significant relationship between compensation and 131
employee and organizational performance (Giorgio and Arman, 2008; Shin-Rong and
Chin-Wei, 2012; Danish and Usman, 2010; Khan, 2010; Qureshi et al., 2010; Tessema
and Soeter, 2006; Katou and Budhwar, 2006; Chang and Chen, 2002). For example,
Mayson and Barret (2006) found that a firm’s ability to attract, motivate and retain
employees by offering competitive salaries and appropriate rewards is linked to firm
performance and growth. On the other hand, Inés and Pedro (2011) found that the
compensation system used for the salespeople has significant effects on individual
salesperson performance and sales organization effectiveness. Therefore, in an ever
competitive business environment, many companies today are attempting to identify
innovative compensation strategies that are directly linked to improving
organizational performance (Steven and Loring, 1996; Denis and Michel, 2011). The
following hypothesis is proposed:

H7. Compensation has significant relationship with organizational performance.

Methodology
As has been mentioned earlier, education sector plays a vital role toward the success of
a nation’s economic plan and universities are expected to produce high-quality
graduates. For this to be realized, it is significant that universities attract and retain
excellent and experience academicians as well as support staff. Attracting and
retaining excellent staff will require a sound HRM practices. In addition, an employee’s
belief about HRM practices may differ from one person to another (Chen et al., 2009;
Nasurdin et al., 2008). For this reason, a study on the employees’ evaluation of the
impact of HRM practices on organizational performance with particular reference to
Malaysia is justified.
Recently an effort was made by the Ministry of Higher Education to develop
KPI for governance of public universities in Malaysia (Hazadiah and Faizah, 2006).
The five main KPIs resulted from the study were research, publication,
internationalization/networking and linkage, teaching, supervision and leadership
which are also reflected in the KPIs of the selected university in this study. It was the
first technical university to be granted a “research university” status in 2010. It has
established its own KPI since 2009 consisting of reputable international ranking,
globally marketable and outstanding graduates, large amount of funding in research
and development, adequate infrastructure and facilities, good reputation to attract
students, relevant curriculum for academic and professional development programs,
high number of postgraduate students, accredited academic programs, scholarly
publications and citations, good marketing and branding capabilities and good
national and international linkages.
The selected university has approximately 2,300 academic and 2,400 supporting
staff. A non-probability sampling with a convenience sampling techniques was used in
this study. A total of 1,000 questionnaires were distributed equally to academic and
support staff at all faculties and administration offices.
 TQM The questionnaire instruments were adapted from Singh (2004), Qureshi et al. (2010)
26,2 and Shahzad et al. (2008). The instrument was divided into three parts: Human
Resource Practices, University Performance and Demographics. The first part consists
of 35 items measuring the degree to which HRM practices construct including
recruitment and selection, training, performance appraisal, career planning, job
definition, employee participation, compensation are being applied in the chosen
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132 university. The participants were asked to rate the 35 elements based on five-point
Likert scale ranging from 1 ¼ strongly disagree, 2 ¼ disagree, 3 ¼ neutral, 4 ¼ agree
and 5 ¼ strongly agree.
The second part measures university performance through 11 items. The
participants were asked to rate their perceived university performance against other
universities based on five-point Likert scale ranging from 1 ¼ strongly disagree,
2 ¼ disagree, 3 ¼ neutral, 4 ¼ agree and 5 ¼ strongly agree. The third part covers
demographic questions. It includes items such as age, gender, staff category, location,
department/school/faculty, work experience and academic qualification.

Findings
Out of 1,000 questionnaires distributed to the university staff, 329 questionnaires were
collected. In total, 29 incomplete questionnaires were excluded from the analysis.
Table I shows profile of the respondents. Out of the 300 participants, 111 were below
30 years, 98 were within the range of 30-40 years, 53 were within the range of
41-50 years and 38 were above 50 years. Majority of the respondents were below 40
years. Out of 300 participants, 33.7 and 66.3 percent were male and females,
respectively. Academic and support staff represent 30.3 and 69.7 percent of the
respondents, respectively.
Table II shows the factor analysis results. The principal component factor
analysis with varimax rotation approach were used, and resulted in eight factors with
factor loading ranging from 0.766 to 0.3915 indicating that each item loaded
significantly in the corresponding factor. In addition, Cronbach a for each factor
ranging from 0.704 to 0.922 for selection and recruitment, job definition, employee
participation, training, career planning, performance appraisal, compensation
and UTM performance.
Table III indicates the results of correlation analysis where all variables have
positive relationship and statistically significant at po0.01. The results are in line with
the findings of Qureshi et al. (2010) where it was found that the variables are correlated.
Career planning and performance appraisal have the highest correlation of 0.704 while
job definition and training has the lowest correlation of 0.434.

Background information Range Frequency %

Age Below 30 111 37.0

30-40 98 32.7
41-50 53 17.7
Above 50 38 12.6
Gender Male 101 33.7
Female 199 66.3
Table I. Staff category Academicians 91 30.3
Profile of respondents Support staff 209 69.7
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Factor loading
Factor Factor Factor Factor Factor Factor Factor Factor
1 2 3 4 5 6 7 8

Organizational performance (a ¼ 0.922)

Strong national and international linkages 0.766
Strong marketing and branding capabilities 0.736
Produces scholarly publications and citations 0.725
Invest a lot funds in research and development 0.703
Adequate and best infrastructure and facilities compared to
the competitors 0.699
Good reputation to attract students 0.694
Programs are accredited by professional bodies 0.693
Introduces new executive and professional development
programs 0.669
Produces globally marketable and outstanding graduates
compared to other universities 0.663
Reputable international ranking among universities 0.628
International Postgraduate students than its local
competitors 0.488
Training (a ¼ 0.844)
Training needs are identified through a formal performance
appraisal mechanism 0.729
New knowledge and skills are imparted to me to work in
teams 0.677
There are formal training programs to teach new employees
the skills they need to perform their jobs 0.651
Attending training programs every year 0.644
Training needs identified are realistic, useful and based on
business strategy 0.609
Extensive training programs for its employees in all aspects
of quality 0.598
Compensation (a ¼ 0.877)
(continued)
HRM practices

analysis
analysis and reliability
133

Exploratory factor
Table II.
The impact of
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26,2

134
TQM

Table II.
Factor loading
Factor Factor Factor Factor Factor Factor Factor Factor
1 2 3 4 5 6 7 8

Compensation is decided on the basis of competence or

ability of employee 0.794
The compensation is directly linked to my performance 0.761
Attractive compensation system 0.712
Salary reflects the standard of living 0.694
Salary comparable to the market 0.683
Job performance is an important factor in determining the
incentives and compensation of employees 0.451
Job definition (a ¼ 0.819)
The duties of my job are clearly defined 0.782
My job has an up to date job description 0.757
I know very well what is expected of me from my job 0.724
The actual job duties are shaped more by myself than the
formal job description 0.715
The job description for my job contains all the duties
performed by me 0.757
Employee participation (a ¼ 0.829)
Allowed to make decisions related to cost and quality
matters 0.611
Participation in operations related to decisions 0.703
Opportunity to suggest improvements in way things are
done here 0.692
Information is shared 0.676
Selection and recruitment (a ¼ 0.704)
Head of departments and Assistant Registrars participate
in selection process 0.623
The selection system is highly scientific and rigorous 0.587
Valid and standardized test are used when required in the
selection process 0.559
(continued)
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Factor loading
Factor Factor Factor Factor Factor Factor Factor Factor
1 2 3 4 5 6 7 8

Selection employees having desired knowledge, skills and

attitude 0.556
Performance appraisal (a ¼ 0.868)
Performance based feedback and counseling 0.518
Performance appraisal system 0.438
Appraisal system has a strong influence on my behavior
and team behavior 0.471
Has written and operational performance appraisal system 0.463
Appraisal system is based on growth and development
oriented 0.461
Performance evaluation is considered important task by my
supervisor 0.493
My performance is measured on the basis of objective and
quantifiable results 0.391
Career planning (a ¼ 0.856)
Prefers an internal employee when vacancy occurs 0.432
Plans for career and development for me as an employee 0.593
I am aware of my career path 0.581
I have clear career paths 0.566
My personal and organizational growth needs are matched 0.543
Promotion is done based on merit 0.535
My career aspirations are known by my immediate
supervisor 0.463
I have more than one potential position for promotion 0.458
KMO ¼ 0.947
Total Eigenvalues 19.362 3.084 2.179 1.91 1.563 1.494 1.326 1.185
% of variance explained 37.965 6.048 4.272 3.744 3.064 2.928 2.6 2.324
HRM practices

135

Table II.
The impact of
 TQM R&S T PA CP EP JD EC UP
26,2
(R&S) 1
(T) 0.592** 1
0.000
(PA) 0.612** 0.665** 1
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136 0.000 0.000

(CP) 0.544** 0.589** 0.704** 1
0.000 0.000 0.000
(EP) 0.457** 0.453** 0.620** 0.628** 1
0.000 0.000 0.000 0.000
( JD) 0.485** 0.434** 0.578** 0.558** 0.547** 1
0.000 0.000 0.000 0.000 0.000
(EC) 0.482** 0.470** 0.549** 0.582** 0.548** 0.480** 1
0.000 0.000 0.000 0.000 0.000 0.000
(UP) 0.507** 0.497** 0.529** 0.536* 0.491** 0.504** 0.532** 1
0.000 0.000 0.000 0.000 0.000 0.000 0.000
Notes: R&S, recruitment and selection; T, training; PA, performance appraisal; CP, career planning;
Table III. EP, employee participation; JD, job definition; EC, employee compensation and UP, university
Correlation matrix performance. **Correlation is significant at the 0.00 level (one-tailed)

Table IV shows that there are significant relationship between recruitment, training,
performance appraisal, career planning, employee participation, job definition,
compensation and university performance, thus, H1-H7 were supported.

Discussion and conclusions

The objective of the study is to examine the impact of HRM practices on organizational
performance. The study revealed that HRM practices have significant impact on
organizational performance. It has been found that university performance can be
attributed to HRM practices including recruitment, training, performance appraisal,
career planning, employee participation, job definition and compensation. This study
is consistent with Qureshi et al. (2010), Chen et al., 2009, Khan (2010), Huselid (1995),
Rizov and Croucher (2009), Chang and Chen (2002).
Universities need to have an effective recruitment policy to promote scientific selection
of prospective employees. The heads of department and assistant registrars should
participate in selection process as they have different preferences in the candidates.

Variables Proposed effect R2 b-coefficient F change Significance level

Recruitment þ 0.257 0.507 103.286 0.000

Training þ 0.247 0.497 97.89 0.000
Performance appraisal þ 0.28 0.529 115.796 0.000
Career planning þ 0.288 0.536 120.269 0.000
Employee participation þ 0.241 0.491 94.554 0.000
Job definition þ 0.254 0.504 101.444 0.000
Compensation þ 0.283 0.532 117.53 0.000
Table IV. Overall þ 0.437 32.439 0.000
Regression analysis
results Notes: n ¼ 300. Significance level po0.05
 Candidates need to be selected based on requisite skills knowledge, attitude and The impact of
qualification using appropriate selection techniques. Besides, appropriate training HRM practices
program for both academicians and support staff should be organized to continuously
improve the skills of employees. Furthermore, performance appraisal should be
guided by the performance management policy. Employee’s performance should
be assessed based on quantifiable standards and feedback be given to employees on
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their performance. 137

It was found that career planning contributes the most to university performance
(b ¼ 0.536). The managers should understand employees’ career plans so that they
match the career aspirations of employees and the needs of the university. Similarly, it
implies that increasing employee involvement and participation in decision making
regarding their career plans will greatly enhance university performance. In this sense,
Chen et al. (2009) proposed an integrated performance measurement system for
universities. Learning and growth is one of the dimensions which include progression
of staff to move up the career ladder hence the importance of career planning for
performance improvement. Since HRM practices have a significant impact on
organizational performance, managers need to implement them in an integrated and
coherent manner (Chen et al., 2009; Wickramasinghe and Gamage, 2011).
Organization including universities need to attract and retain talents and leverage
them for competitive advantage (Khan, 2010). Candidates need to be selected based
on requisite skills knowledge, attitude and qualification using appropriate selection
techniques. Furthermore, appropriate training program for academicians and support
staff should be organized to continuously improve their skills in line with the
developments needs of the university and employees. Consequently, management
and the supervisors should allow the employees to participate on decision making on
issues which affect the employees. Open communication or information sharing
promote fast decision making. This will influence commitment and job satisfaction
among employees (Katou, 2008).
One of the major limitations of this study is the small sample size thus the findings
are not generalizable. Future research should include more universities both public and
private. In addition, future researchers should also consider moderating variables
such as university culture, organization climate, the labor market, legal and regulatory
environment.

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Further reading
Robbins, S.P. (2001), Organizational Behaviour, 9th ed., Prentice-Hall Inc. New York, NY.

Corresponding author
Dr Muslim Amin can be contacted at: tengkumuslim@yahoo.com

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