IMPACT OF HUMAN RESOURCE PRACTICES ON EMPLOYEE’S PERFORMANCE: AN EMPIRICAL STUDY OF ENGINEERING FIRMS IN ISLAMABAD AND RAWALPINDI

Abstract

Human resource practices have been regarded as a significant tool to increase employee performance. The relationship between human resource practices and employee performance is developed by many researchers but little research has been devoted to discover the interconnection between human resource practices and employee performance in engineering firms of Pakistan. The main endeavor of this study is to develop the impact of human resource practices on employee’s performance in engineering firms of Pakistan specifically electrical and electronic manufacturing companies of Islamabad and Rawalpindi. Four broad categories of HR practices: training and development, compensation and reward, performance appraisal and employee empowerment, have been taken as independent variables and their impact was analyzed on employee’s performance: dependent variable. A total of 250 employees responded to the survey based questionnaire. The questionnaire comprised of 30-items which were evaluated using five point Likert scale and statistical analysis was carried out by using SPSS. For data collection non-probability convenience sampling was used. Findings revealed the extent to which these human resource practices were correlated with employee’s performance. It is recommended that adoption of human resource practices should be enhanced to improve the working conditions and to attain high employee performance.