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A CRITICAL ANALYSIS OF HUMAN RESOURCE MANAGEMENT
PRACTICES INFLUENCING PERFORMANCE IN PRIVATE
UNIVERSITIES (CASE OF PRIVATE UNIVERSITIES IN
RAJASTHAN)
Atanu Talukdar Research Scholar,
Pacific University, Udaipur, Rajasthan (India)
Abstract-Organizations have to put more stress on good human resource policies which
influences employee’s motivation and this results in exceptional performance of the
University. Now-a-days the internal and external business environment is changing rapidly
.To cope up with this, Universities give lot of importance to HR policies. Good Human
resource policy attracts talented people to join the groups. It also motivates people to
perform. And as a result of their exceptional performance University excels. The Study was
confined within the private universities of Rajasthan. Data was collected through survey
method from faculties of private universities of Rajasthan. SPSS was used to generate the
statistical outputs. The study found that orientation, training & development and working
environment affect the effectiveness of private universities.
Keywords- HR Policy; organizational performance; private universities.
I. INTRODUCTION
Over the past decade, there has been an increasing emphasis by researchers and practitioners
alike on the importance of human resources as one of the key ways of gaining a competitive
advantage for a firm (Muduli, 2015). Consequently, numerous research has been conducted
on human resource management within the context of organizational effectiveness (Bird &
Beechler, 1995; Huselid, 1995; Ghebregiorgis & Karsten, 2007). However, it is found that
while most of the research on effectiveness of HRM has been conducted in business
organization context, very little research has been conducted in the field of higher education.
More specifically, when it comes to private universities in India very few research has been
conducted.
The evolution of human resources (HR) in higher education has been a relatively recent
phenomenon considering the tenure of most colleges and universities. Authors like Triplett &
Jarjoura (1997) reported that personnel administration is one of the last specialty areas to
emerge in higher education. It is found that, in most the universities HR functions (especially
those related to faculty) continued to be handled by deans and department chairpersons. It
International Journal Of Advancement In Engineering Technology, Management and Applied
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was only after the 1990s that personnel administration functions began to be referred to as
HR and emerging corporate HR paradigms examined for relevance to higher education
(Kemper, 2001).
With the above background, the present study examines the impact of human resource
policy viz. orientation & training and development, performance appraisal, compensation &
benefit, recruitment & selection and working environment on the organization effectiveness.
The researcher has studied private universities of Rajasthan to understand the role of HR
policies on the effectiveness in Indian context.
II. LITERATURE REVIEW AND HYPOTHESIS
Moderated or interactive relationship model is used to find the impact of HR policies
on organizational effectiveness. This model further analysed the impact of HR policies on
organization effectiveness. This model implies that moderation or interaction could be said to
exist if returns from one practice (e.g. HR policy) varied across the other practice (e.g.
organizational effectiveness) at all levels. This means, Satisfaction Effectiveness is
determined by the interaction of the predictor (e.g. HR policy). The presence of interaction is
established if the cross product coefficient differs significantly from zero.
a) HR Policies and Organizational Effectiveness
The relationship between HR Policies and Organizational Effectiveness has been noticed in
the extant literature. In the following paragraph, attempt has been made to capture the related
literature.
Richard (2001) found whether strategic human resource practices effect
organizational level outcome. Strategic human resource management significantly reduces
employee turnover and increase overall market performance assessment. When strategic
human resource management is moderated by capital intensity then firm productivity and
return on equity is affected.
Pounder (2002) attempted to produce an objective assessment criteria through the
development of an organizational self‐assessment scales for public funded Universities of
Hong Kong. The result of the study highlighted HRM issues that are relevant for
Organizational effectiveness in Hong Kong higher education.
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Perk et al. (2003) examined the impact of human resource practices on performance
of Japanese multinational company’s subsidiaries operating in US and Russia. The results
support that employee skill, attitude and motivation play a mediating role between HR
systems and firm outcomes in multinational organizations.
Lopez et al. (2005) investigated the relationship between high performance human
resource practices, organizational learning and business performance of Spanish universities.
It was found that high performance human resource practices have a positive effect on
organizational learning, which in turn has a positive influence on business performance. It
was also found that the human resource practice has no direct effect on business performance.
Kaya (2006) examined the role of HRM practices and corporate entrepreneurship on
firm performance. HRM plays a mediating role. HRM practices (which emphasize behavior
and attitude, extensive training, training on the job skills, written constructions and
procedures, team activities, training in multiple functions, incentive to meet objectives,
communication of strategy, interaction facilitates, feedback on performance) are important
for enhancing firm performance.
Tessema & Soeters (2006) had examined how, when and at what extent human
resource practices affect performance of the university system. They have studied eight
human resource management elements such as: recruitment and selection practices,
placement, training, compensation, employee performance evaluation, promotion, grievance
procedure and pension programmes, to see their performance optimization outcomes based
on competenceies, motivation, role clarity and retention.
Venhala et al. (2006) tried to evaluate chances of human resource policies and
practices impact on company performance. It is found that HR practices is a good predictor of
company performance.
Akhtar et al. (2008) examined factorial validity of strategic human resource
management practices and their effects on performance of Chinese enterprises. HR policies
(training, participation, results-oriented appraisals, and internal career opportunities) affect
both product/service performance and financial performance. Employment security and job
descriptions contribute uniquely to product/service performance, whereas profit sharing
contributes uniquely to financial performance
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Abdullah et al. (2009) have studied the effect of training and development, Team
Work, Compensation, HR planning, Performance appraisal and employees security on
business performance on Malasian’s private business. Results show that training and
development, team work, HR planning and performance appraisal have positive and
significant influence on business performance.
Caliscan (2010) in his paper first did an extensive literature review on human resource
management as a competitive advantage, the strategic role of human resource management
and then how strategic human resource management impacts organizational performance.
The finding is that the way an organization manages its human resources has a significant
relationship with the organization’s performance.
Kahn (2010) measured recruitment and selection, training and development,
performance appraisal, compensation and reward, employee relations to see their impact on
performance optimization of oil and gas industry of Nigeria. A positive and statistically
significant association of these practices with performance optimizations is established.
Khalid & Rehman (2010) investigated the impact of human resource management
practices on performance optimizations of two telecommunication companies. Training,
employee participation, job definition, compensation and selections are positively associated
with the overall performance optimization.
Kim (2010) in his study addressed the question whether public sector can increase
productivity through competition in spite of inherent limitations by examining the impact of
four factors (rewards for merit such as salary and benefits, opportunities, organizational rules,
and the capacity to deal with risks as perceived by employees) that contribute to employees
expectations regarding competitive work environments on organizational performance in
terms of overall quality of work and client satisfaction.. It was found that salary and benefits
were positively related to employees perception of organizational performance. Moreover,
employees perceptions of organizational performance tended to increase when they felt that
organizational rules were oriented toward performance plus organizational members and top
leaders exhibited greater risk-taking behaviors.
Qureshi et al. (2010) have selected human resource management practices such as
selection, training, performance appraisal system, compensation, employee participation to
see their impact on financial performance of banks in Nigeria. All variables ha ve a positive
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relationship and impact on financial performance of banks. It was found that performance
appraisal system is the least contributor to performance of banks.
Mukhtar et al. (2011) investigated the role of HRM in managing the organizational
conflict in public sector Universities of Pakistan. It is found that functional conflict has a
positive relationship with organizational effectiveness. HRM practices (namely recruitment
and selection, training and development, performance appraisal and role of Union) can
transform dysfunctional conflict into functional conflict and have significant relationship with
the organizational effectiveness.
Oladipo et al. (2011) examined what is its impact of strategic HRM on organizational
performance. Management development, innovative recruitment and selection system,
regular training and development of personnel, equity based compensation system,
performance appraisal system, effective career planning system and strong employee
participation in organizations decisions and actions are the key strategic human resource
practices that influence organizational performance in Nigerian manufacturing sector.
Moghli (2012) tested the effect of recruitment and selection on institutional
excellence on private schools of Ammam, capital of Jordan. It was found that there is
statistically significant effect of recruitment and selection on organizational excellence.
Bourne et al. (2012) investigated the contribution of business performance
measurement (PM) and human resource management (HRM) practices to business
performance in thirteen UK companies including private and not for profit organization. It is
found that neither HRM nor PM practices alone are responsible for generating organizaitonal
performance. But it is their interaction that determines the process of generating
organizational performance. An organizational social climate is generated due to interaction
between Business performance Management and Human Resource policy which stimulates
the employee efforts which are subsequently channeled towards strategic priorities by goal-
setting, communication and control practices of Business performance management.
Rawashdeh (2012) studied the impact of human resource practices on corporate
performance of Jordanian commercial banks. Result showed a positive and significant
positive relationship between recruitment and selection, compensation and reward with
corporate performance and a negative association between training and development and
corporate performance.
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Shah et al. (2012) in their research focused on important HR dimensions and HR
outcome leading to organizational performance of telecom companies of Pakistan. It was
found that employee development and performance should be main focus of HR department
to increase employee’s commitment to tasks and achieve organizational performance.
Waiganjo et al. (2012) examined that to what extent strategic human resource
management influences firm performance from various critical perspectives. They developed
a conceptual framework that tells that strategic human resource management (resourcing,
training and development ,teams and decentralization, sharing information, incentives on
performance) have a positive impact on firm performance. Competitive strategies (cost led
HR strategy, quality led HR strategy and innovation led HR strategy) work as a moderating
variable.
Amin et al. (2013) in their paper examined the effect of human resource management
practices on organizational performance of public universities of Malaysia. It was found that
recruitment, training, performance appraisal, career planning, employee participation, job
definition and compensation have a significant positive impact on university performance.
Ullah et al (2013) tried to find out impact of human resource management on internal
customer satisfaction and organizational effectiveness in banking sector of Pakistan. It was
found that some HRM practices (a recruitment and selection, training and development,
performance appraisal, compensation and rewards, and employee participation) are linked
with internal customer satisfaction and organizational effectiveness.
Aftab et al. (2014) used this cross sectional study to find out the mediating role of
employee motivation between human resource practices and organizational per formance in
Islamic Banks operating in Pakistan. Training and development, performance evaluation
system, career development system, extrinsic reward, intrinsic reward have a positive
association of perceived organizational performance in Islamic Banks operating in Pakistan.
Post selection human resource practices have a positive impact on perceived organizational
performance and employee motivation plays a mediator role.
Agusioma (2014) critically analyzed the HRM practices effect on organizational
performance of public Universities in Kenya with a focus on Nairobi. The study found that
recruitment and selection, training and development, reward management and employee
relations affect organization performance.
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Arshad et al. (2014) in their conceptual paper has given typical example of different
HRM practices and found out best fit HRM model for implementing the effectiveness of
HRM practices to give rise to best organizational performance in local conditions of
developing countries. This paper has presented a trust oriented HRM model that has taken
care of Pakistani mindset. This framework will help HR specialist to create and sustain
network and connections with people in a more trusted environment.
Burma (2014) did extensive literature review on human resource management, scope
and affecting factors on human resource management, human resource management
functions and relationship between organizational effectiveness and human resources. Human
resource management has evolved from personnel management and then to strategic human
resource management. The human resources are the companies’ most important assets, and
effective management of these resources will contribute to the sustainable competitive
advantage of firms.
Luftim (2014) focused on the impact of the strategic management of human resource
in achieving organizational performance. Strategic management of human resource practices
has improved organizational performance.
Tehsildari (2015) in his research tried to find a framework for improving
organizational effectiveness in Malaysian government universities. The findings reveal that
employee participation, training, performance appraisal and job description have significant
effect on organizational effectiveness.
For the achievement of the objective the following alternative hypothesis have been
formulated.
Hypothesis 1
H1: Human Resource Management practices are positively related with organizational
effectiveness.
H1a: Orientation ,Training and Development as a Human Resource Management practices
is positively related with organizational effectiveness.
H1b: Performance Appraisal as a Human Resource Management practices is positively
related with organizational effectiveness.
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H1c: Compensation and Benefit as a Human Resource Management practices is positively
related with organizational effectiveness.
H1d: Recruitment and Selection as a Human Resource Management practices is positively
related with organizational effectiveness.
H1e: Working Environment as a Human Resource Management practices is positively
related with organizational effectiveness.
H2 : HR practices positively & significantly effects Organizational Effectiveness
H2a: Orientation, Training and Development positively & significantly effects
Organizational Effectiveness
H2b: Performance Appraisal positively & significantly effects Organizational Effectiveness
H2c: Compensation and benefit positively & significantly effects Organizational
Effectiveness
H2d: Recruitment and Selection positively & significantly effects Organizational
Effectiveness
H2e: Working Environment positively & significantly effects Organizational Effectiveness
III. RESEARCH METHODOLOGY
a) Sample
Type of Industry plays an important role in determining the desired mode of human
resource practices in an organization. It was determined by Jackson, Schuler, & Rivero
(1989). As a result of liberalization and deregulation lot of new private universities have
cropped up. As on July 2016 out of 759 Universities in India 239 are private Universities.
There is very tough competition amongst them. All Indian private universities, are trying
their best to improve their performance and preparing to compete in the emerging global
market (Sumathy, 2007). Survey says growth of Education is best in Rajasthan. This is the
logic behind selection of private universities of Rajasthan.
A total 600 questionnaires were administered to permanent faculties (Assistant
Professor and above rank) working in selected private universities of Rajasthan, India. All
were done through personal visits to the organizations. The overall response rate was 45%
which is considered as a poor response rate.
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b) Measures
The survey instrument consists of HR policy (30 items) and Organizational
Effectiveness (29 items).
I. Human Resource Management Practices
It was developed from “Human Resource Best Practice Scale (HR-BPS)”developed
by Ahmed Abbas & Akhtar (2011). It measures Orientation, Training and Development,
Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working
Environment .All thirty items were measured on a Likert-type scale ranging from (5) highly
satisfied to (1) very dissatisfied.
II. Organizational Effectiveness
It was developed from questionnaire designed by Authors Kim Cameron in his article
Measuring Organizational Effectiveness in Institution of Higher Education, Source :
Administrative Science Quarterly Vol. 23, No. 4 (Dec.1978) pp. 604-632. It contains twenty
nine items. They measured External Environment Response Effectiveness, Satisfaction
Effectiveness, Student Career Development Effectiveness. External Funding Effectiveness &
Student Academic Development Effectiveness. All twenty nine items were measured on a
Likert-type scale ranging from (5) highly satisfied to (1) very dissatisfied.
c) Purification of the Measurement Variables
I. Human Resource Management Practices and Organisational Effectiveness
It is developed from “Human Resource Best Practice Scale (HR-BPS)”developed by
Ahmed Abbas & Akhtar (2011) .It measured Orientation, Training and Development
,Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working
Environment. All thirty items were measured on a Likert-type scale ranging from (5) highly
satisfied to (1) very dissatisfied. The table I present the results of factor loading for
measurement of HR policy. The table shows that a total of 30 items (except 7, 14, 15, 23)
having significantly high loading scores have clubbed in five groups. The table II present the
results of factor loading for measurement of OE. The table shows that a total of 29 items
(except 18) having significantly high loading scores have clubbed in five groups.
Table I: Factor Analysis of HR Policy
S.No. Factor Labels and Variables Factor
Loadings
F1 Orientation and Training and Development
OTD_7 The staff development activities organized by the university improved
my teaching performance.
0.914
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S.No. Factor Labels and Variables Factor
Loadings
OTD_8 Teachers training organized by the university is directly linked with the
university goals and objectives
0.885
OTD_6 The university encourages me to undertake relevant professional
training courses
0.884
OTD_2 I was comprehensively briefed about all the university goals and
objectives during the orientation session.
0.876
OTD_1 The university mission statement was clearly communicated to me
during the time of joining.
0.871
OTD_5 After joining this university , I was clearly communicated the criteria on
which my performance will be evaluated
0.859
OTD_9 After teachers training course the university asked me about formal
feedback about the effectiveness of the training course.
0.854
OTD_4 I was comprehensively briefed about the university structure (
administrative hierarchy) after joining.
0.750
OTD_3 I was formally introduced to all colleagues of the department when I
joined the university.
0.677
F2 Performance Appraisal
PA_3 Appraisal is completed by the persons who are completely familiar with
my work performance. 0.684
PA_2 The university gives me formal feedback after appraising my
performance. 0.626
PA_4 The university adopts standard procedure for appraising my teaching
performance. 0.588
PA_1 My performance is regularly evaluated by the university after each
session/semester. 0.533
F3 Compensation and Benefit
CB_3 I am paid appropriate salary according to my responsibilities 0.836
CB_1 I am fairly paid according to my qualification 0.817
CB_4 I am reasonably remunerated for all the effort I put in. 0.800
CB_2 I am appropriately compensated according to my experience. 0.788
CB_5 I am fairly rewarded for the stress and strains of my job. 0.778
F4 Recruitment and Selection
RS_2 Before the selection of my present post I knew complete Job
requirements 0.824
RS_4 The interview panel adequately tested my skills for the required post 0.790
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S.No. Factor Labels and Variables Factor
Loadings
before selection.
RS_3 Before my selection, the interview panel thoroughly assessed my
knowledge for the required post.
0.773
RS_5 Discrimination of any kind is not involved in the selection process in
my university.
0.593
RS_6 In my university internal politics plays an important role in teachers’
selection process.
0.555
RS_1 Vacancies for teachers are properly advertised in my university. 0.511
F5 Working Environment
WE_3 My health has not suffered due to my job at this university. 0.787
WE_4 I feel no difficulty in balancing my work and personal life in the
university 0.709
WE_5 The university is actively involved in handling my safety complaints. 0.671
WE_2 My employment is completely secured with this university 0.575
WE_6 Complaints of the workplace violence are investigated by the university
adequately. 0.561
WE_1 Working environment is very pleasant in my university 0.491
Table II: Factor Analysis of O rganizational Effectiveness
S.No. Factor Labels and Variables Factor
Loadings
F1 EXTERNAL ENVIRONMENT RESPONSE EFFECTIVENESS
26
Maintains a good link with industry and other higher education
Institutes 0.758
24 Emphasis on meeting the needs of employers 0.740
23 Faculties are active in various community services 0.689
28 Can attract and retain good quality staff 0.676
27 Can attract the best student applicants 0.676
25 Faculties enjoy a good reputation with the general public 0.675
20 Faculties have the best qualifications among all local universities 0.597
22 My university encourages and supports staff development 0.591
19
My university ranks highest in research and publication among all local
universities in my field 0.584
21 Faculties are held in high esteem in local academic circles 0.577
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F2 SATISFACTION EFFECTIVENESS
2 Students maintain a good relationship with faculties 0.716
1 Students enjoy their school life 0.698
15 Faculties enjoy teaching 0.678
14 Show high respect for teachers 0.610
16 Faculties enjoy conducting research 0.586
3 Students are highly satisfied with their program of study 0.574
17 Satisfied with their working environment 0.574
13 Active in extracurricular activities 0.548
5 Students achieve a high level of academic attainment 0.533
12 Students are very civic minded 0.334
F3 STUDENT CAREER DEVELOPMENT EFFECTIVENESS
9 Employed in their relevant fields of study 0.767
10 Highly commended by their employers 0.692
11
Get good salaries in comparison to graduates from the same discipline
in other local Universities 0.689
8 Graduates able to secure employment shortly after they graduate 0.674
F4 EXTERNAL FUNDING EFFECTIVENESS
30
Outperforms other local universities in securing financial sponsorships
from industry 0.779
29 Outperforms other local universities in securing research funds 0.703
F5 STUDENT ACADEMIC DEVELOPMENT EFFECTIVENESS
4 There is a high student dropout rate 0.795
6
Students only aim to get an academic qualification but not acquire
knowledge 0.717
7 Students are self-directed learners -0.527
d) Validity and Reliability
The content validity of the questionnaire has been ensured through expert comments
from industry and academia. Experts in the relevant field were identified and the
questionnaire was submitted requesting them to provide comments related to HR policy and
OE. A pilot study was conducted to test for any construct weaknesses, and for weaknesses in
the research design (Collis& Hussey, 2003). Pilot study was conducted in a private university
of Rajasthan on sample size of 100 (60-Assistant Professor,30-Associate Professor,10-
Professor). The response was 100 % and all questions were considered for analysis. The
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convergent validity was measured through correlation matrix and factor analysis (Park
Robertson, & Wu, 2006; Parasuraman, Berry, & Zeithaml, 1991).Factor analysis was
performed on all items of HR policy and organizational culture. As the Table I shows, a total
of 30 variables (except 7,14,15,23 )having significantly high loading scores clubbed in five
groups which were later on named as OTD, PA, CB, RS and WE. Further result of correlation
matrix found all the statement are correlated with each other. As the Table II shows, a total of
29 items(except 18 )having significantly high loading scores clubbed in five groups which
were later on named as EERE ,SE, SCDE, EFE & SADE. Further result of correlation matrix
found all the statements are correlated with each other
Further result of correlation matrix found all the statement correlated with each other.
The researcher applied Cranach’s Alpha test (Table III) to the research variable HR policy
and OE to judge the reliability. The test result shows that Cranach’s Alpha for HR policy and
OE are 0.932 and 0.953 respectively. This indicates data reliability as they meet the minimum
acceptable level ranging from .80 to .90 (Salanova & Schaufeli, 2008). Taken toge ther, the
results showed that the measures in this study possessed adequate reliability and validity.
Table III: Reliability through Cronbach's Alpha
Constructs Cronbach's Alpha
Human Resource Management (34) 0.932
Oranizational Effectiveness (29) 0.953
Statistical Analysis
For the purpose of analysis of data, descriptive analysis, correlation analysis and
multiple regression analysis were used on a standardized data set using SPSS version 17.0.
Table IV shows Mean, Standard deviations, and Zero order correlations. Correlation analysis
was done to investigate the relationship between HR Policy and Organizational Effectiveness.
As shown in the Table IV Orientation, Training and Development (OTD), has positive and
marked degree of correlation with Organizational Effectiveness (r = 0.709, p < 0.01),
Performance Appraisal (PA) has positive & moderate degree of correlation with
Organizational Effectiveness (r = 0.401, p < 0.01), Compensation and Benefit (CB), has
positive and low degree of correlation with Organizational Effectiveness (r = 0.321, p < 0.01)
Recruitment and Selection(RS) has positive & moderate degree of correlation with
Organizational Effectiveness (r = 0.452, p < 0.01), Working Environment (WE) has positive
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& moderate degree of correlation with Organizational Effectiveness (r = 0.425, p < 0.01).
Thus overall it was found HR policy is significantly correlated with Organizational
Effectiveness. With this the proposed hypothesis that Orientation, Training and Development,
Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working
Environment would be positively related to Organizational Effectiveness is accepted. This
means if HR policy is improved definitely there will be significant positive impact on
Organizational Effectiveness .
Multiple regression was done to find the individual contribution of Orientation,
Training & Development (OTD), Performance Appraisal (PA), Compensation & Benefit
(CB), Recruitment & Selection (RS) and Working Environment(WE) on Organizational
Effectiveness (Hypothesis H2a to H2e) Table V summarizes the results of multiple linear
regression analysis and illustrates that values of unstandardized coefficients (see the section
headed “coefficients”) provide the regression equation that could be used for forecast
purpose. From the column labeled “unstandardized coefficients,” the constant term was
1.075. Coefficient of variable OTD was found to be 0.418, while coefficient of PA was
0.011, coefficient of CB was 0.017, coefficient of RS was 0.076, coefficient of WE was
0.186. If there is one unit change in OTD there will be 41.8% change in OE. If there is one
unit change in PA there will be 1.1% change in OE. If there is one unit change in CB there
will be 1.7% change in OE. If there is one unit change in RS there will be 7.6% change in
OE. If there is one unit change in WE there will be 18.6% change in OE.
In Table V, the beta coefficients are listed in the column headed “standardized
coefficients.”The Beta value indicates the relative influence of the entered variables, that is,
OTD (Orientation, Training and Development) has the greatest influence on Organizational
Effectiveness (Beta = 0.623) followed by WE (Work Environment) (Beta=0.235), RS
(Recruitment and Selection) (Beta = 0.071), CB (Compensation and Benefit) (Beta=0.027)
then PA (Performance Appraisal) (Beta = 0.015)
R2 was equal to 0.588. This means that 59 percent of the variance in the dependent
variable (Organizational Effectiveness) could be attributed to changes in the independent
variables (HR policy). F-statistic was found to be 74.57, at a significance level of 0.01. It is
concluded that the set of independent variables (OTD, PA, CB, RS and WE) as a whole was
contributing to the variance in the dependent variable (Organizational Effectiveness).
As shown in the section labeled “coefficients,” significant levels for coefficients of
OTD and WE were found to be significant at 0.01, and PA, CB and RS were non-significant
(p > 0.05).
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IV. DISCUSSION
In the global competitive business scenario, higher education sector has been facing
many changing challenges caused by globalization, liberalization, technological
advancements and changing customer’s technological–driven expectations. These challenges
have called for extensive search for suitable strategies for the growth and survival of the
higher education sector in the changing and turbulent marketplace. In this context, the role of
human resource management practices in enhancing the university performance has been
studied in the current research paper.
The study result proved that Orientation training and development contributes to good
organizational effectiveness in the universities (Beta=0.623). In other word, Orientation,
training and development contributes to the university effectiveness in form of External
Environment Response Effectiveness, Satisfaction Effectiveness, Student Career
Development Effectiveness, External Funding Effectiveness’ and Student Academic
Development Effectiveness. Agreeing with the previous research, the study proved that the
universities’ focus on OTD can enhance the universities effectiveness. The finding also finds
support from the existing practices in the private universities. The researcher, being a faculty
member has often experienced that in reputed universities, faculties are introduced to all
important functional head of the department first, followed by the different functional head of
the university, and lastly to all colleagues. In few other universities, the organization rarely
takes faculty Orientation seriously. Often, it is noticed that the faculty members orient
themselves slowly with the university people and process, often with their own initiatives.
Such kind of system has been instrumental to inefficiency of the faculty members as many
times the faculty may not have clarity about the university system and processes. Further, it
has been noticed that where as Reputed universities invest substantial time and amount on
faculty training and development (e.g. providing Faculty development allowance, sponsoring
for FDPs, workshops, conferences, seminars etc.), others neither provide nor encourage
faculty members for such kind of training and development programme. Interestingly, it is
found that the former category of universities are always better ranked than the later one in
terms of their effectiveness. On the basis the above findings, we suggest that Faculties should
be given a proper orientation programme where rules and regulation of the university will be
properly communicated. There should be scope for training and development of the faculties
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eg. Soft skill training, FDP, training on excel, SPSS should be there in the university . The
University should develop an app. It should be properly shared by faculties. There faculties
should upload their CV and their current activity. They should express their views and
remedies of the current situation. For orientation faculties should be taken to some hill station
. Once in a year there should be party where all faculties and staff and their family members
should participate.
The study result proved that Working Environment contributes to good organizational
effectiveness in the universities (Beta=0.235). In other word, Working Environment
contributes to the university effectiveness in form of External Environment Response
Effectiveness, Satisfaction Effectiveness, Student Career Development Effectiveness,
External Funding Effectiveness and Student Academic Development Effectiveness. The
finding has found support in the private university practices experienced by the researcher. It
is often found that in Reputed universities, faculties are very happy. Being in the campus,
they feel free and secured. They feel at home. Anytime they need they enter in the cabin and
complete the task. Before head of the department tells them anything, they feel an inner call
to resolve the issues. Whereas, in other universities faculties are always tensed since at any
moment they can loose their job. Their health suffers a lot due to tension. They feel unsafe
and insecured. They rush to their office at the eleventh hour. Faculties consume all leaves.
Faculties avoid office as much as possible. Interestingly, it is found that the former category
of universities are always better ranked than the later one in terms of their effectiveness. On
the basis the above findings, we suggest that Faculties should be given a proper working
environment consisting of medical facilities, indoor and outdoor games, flexibility of
movement inside and outside the campus, women cell etc.
Further, the research could not prove the contribution of Performance Appraisal
(t=0.228), Compensation and Benefits (t=0.452) and Recruitment and Selection (t=1.448).
The result surprises us as successive research has proved the relevance of these HR policies
on Organizational effectiveness. This may attribute to either the contextual factors or to the
implementation challenges of the specific practices in the private universities. For example,
Muduli, (2008) commented that HR practices capable of enhancing organizational
effectiveness may not equally true in Indian context. In the context of Compensation and
Benefits, Muduli, (2010) proved that reward system (e.g. Individualistic Performance based
Reward) relevant in western context are not relevant in a highly collectivist Indian culture.
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V. LIMITATION AND POINTS FOR FUTURE RESEARCH
Limitations are part and parcel of any kind of research work. So, the present study is
assumed to be not free from limitations. Although adequate precautionary measures have
been taken, the study suffers from some limitations. First limitation that could potentially
affect the result of the study is the sample size. A total six hundred questionnaires were
administered to faculties working in private universities of a Rajasthan. As such, the findings
may not be generalized to all Indian Private Universities. Future research may take a broad
sample on the basis of which the result can be more generalized. Secondly, in the current
research HR policy and OC is measured through a set of questionnaire where faculties were
asked to provide operational performance data. However, HR policy can be measured
through perceptual performance measures also as observed by Combs, Liu, Hall & Ketchen
(2006) because good HR policy increase employee KSAs, empower employees to leverage
their KSAs, and motivate them to do so, they influence employee discretionary effort,
creativity, and productivity (Becker & Gerhart, 1996) which in turn increase operating
performance measures such as employee turnover and job sat isfaction further leading to
increased accounting returns and market value (Becker & Gerhart, 1996; Huselid,
1995).Therefore, future research may measure HR policy through perceptual performance
measures such as financial measures such as profit, productivity, or market returns. Finally,
the current study focused on organizational culture of the private higher education sector of
India without examining the economic, social and political context. As Delbridge & Keenoy,
(2010) & Muduli, Verma & Dutta, (2016) argued, management practices can only be
properly explained in the context of the wider social-economic, political and cultural factors.
They shape those practices. Thus, future research can be conducted considering the specific
economic, social and political context.
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Table IV: Correlations HR Practice and Organization Effective
Mea
n
SD
Org
aniz
atio
n
Eff
ectiven
ess
(OE
)
Ori
enta
tion,
Tra
inin
g &
D
evel
opm
ent
Per
form
ance
Appra
isal
Com
pen
sation &
Ben
efits
Rec
ruitm
ent
& S
elec
tion
Work
ing E
nvir
onm
ent
Exte
rnal
Envir
onm
ent
Res
ponse
Eff
ectiven
ess
Sat
isfa
ctio
n
Eff
ectiven
ess
Stu
den
t C
aree
r
Dev
elopm
ent
Exte
rnal
Fundin
g
Eff
ectiven
ess
Organization
Effectiveness 3.829 0.619
Orientation, T & D 3.764 0.923 0.709 **
Performance
Appraisal 4.185 0.797 0.401 ** 0.264 **
Compensation &
Benefits 3.696 0.975 0.321 ** 0.162 ** 0.681 **
Recruitment &
Selection 4.175 0.579 0.452 ** 0.413 ** 0.481 ** 0.315 **
Working
Environment 4.040 0.781 0.425 ** 0.206 ** 0.723 ** 0.688 ** 0.462 **
External
Environment
Response
Effectiveness
3.933 0.736 0.935 ** 0.662 ** 0.290 ** 0.258 ** 0.421 ** 0.335 **
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Satisfaction
Effectiveness 3.931 0.685 0.936 ** 0.672 ** 0.419 ** 0.317 ** 0.409 ** 0.446 ** 0.796 **
Student Career
Development 3.763 0.714 0.791 ** 0.560 ** 0.348 ** 0.343 ** 0.304 ** 0.350 ** 0.677 ** 0.707 **
External Funding
Effectiveness 3.745 0.834 0.706 ** 0.510 ** 0.359 ** 0.271 ** 0.238 ** 0.353 ** 0.632 ** 0.629 ** 0.519 **
Student Academic
Dev. 3.285 0.722 0.560 ** 0.369 ** 0.276 ** 0.122 * 0.440 ** 0.236 ** 0.455 ** 0.475 ** 0.301 ** 0.256 **
**Correlation is significant at 0.01 level; *Correlation is significant at 0.05 level
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141
Table V. HR Policy and Organizational Effectiveness
Variables
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
Constant 1.075 0.189 0.000 5.674 **
OTD 0.418 0.029 0.623 14.227 **
PA 0.011 0.050 0.015 0.228 NS
CB 0.017 0.038 0.027 0.452 NS
RS 0.076 0.053 0.071 1.448 NS
WE 0.186 0.051 0.235 3.677 **
R = 0.767
R2 = 0.588
F = 74.57 **
a. Dependent Variable : Organizational Effectiveness
b. Independent Variable: Orientation, Training and Development(OTD, Performance
Appraisal(PA), Compensation and Benefit(CB), Recruitment and Selection(RS) and Working
Environment-(WE)