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PROJECT ID: MBAMHR Project Title: The impact of human resource management practices Research Method (Section L) Program: MBA 2010-14
Project Leader Name: Muhammad Waqas Farooq, Email: waqas105@ucp.edu.pk , Mobile No: 0324-4745334,

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Status

Introduction:
Significance:
Human assets are recognized the most imperative holding of a conglomeration. A set of dissimilar yet interrelated activities, roles, and methodologies that are guided at luring, improving, and keeping up immovable human resources. Administration of this framework has expanded more consideration from utility conglomerations than from assembling

conglomerations. Innovations and imaginative manufacturing practices apart from everyone else can do next to no to improve operational exhibition unless the imperative human asset administration (HRM) practices are in place to structure a constant socio- specialized framework.

Research questions: 1. How organization performance will be related to the seven HR practices? 2. How the degree of dissimilarity between an organizations existing HRM system related to the organization performance? 3. How the ideal type HRM system will be related to the organization performance?

Introduction of company
Nishat Mills Limited(NML)
Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern, which was converted into private Limited company in 1959. Nishat Mills Limited (Nishat) is the single largest textile company in Pakistan and also is public limited company, listed on all three Pakistani stock exchanges. The Group's perform the activities is to manufacture spins, combs, weaves, bleaches, dyes, prints, stitches, buys and sells textiles. It deals in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fibre and cloth and generate, accumulate, distribute and supply electricity. The Group's plants are located at Faisalabad,

Sheikhupura, Lahore and Feroze Watwan. 9000 employees of the company and also ISO 9001 certified and recently achieved by SA 8000 certificate.

Company profile:
Nishat is playing a significant role in the private sector by adding value to cotton and the cotton based economy, Nishat Group ranks among the top five business houses in Pakistan in terms of sales and assets. . Today, Nishat is considered to be at par with multinationals operating locally in terms of its quality products and management skills. The company Annual turnover is 17 billion Rupees, company earn 14 billion rupees for textile and also pay tax of 2,080 million Rupees annually. We are focus on the Nishat Chunain Power LTD.it is a part of NML.

Data finding and conclusion:

Given at the time of conducting or solving the questionnaire.

Literature review: Definition of variables with relationship

HUMAN RESOURCE MANAGEMENT PRACTICES:
Researcher (Legare, 1998) said that recent trends toward globalization and mergers and acquisitions in the business world make the study of HRM practices in the context of country and industry a necessity.

1.

Manufacturing and human resources fit:

According to Bratton et al (2001), Staffing refers to find the people with suitable skills abilities, knowledge and experience to fill jobs in the work Organization. (Cappelli and Singh 1993; Kogut and Zander 1992; Pfeffer 1994) stated that the argument is consistent with recent work asserting that human resources can be a

primary source of sustainable competitive advantage for a firm.Cronbachs alpha for the measure for this sample was 0.80. H1: Manufacturing and human resources fit is positively related with organizational performance.

2.

Behavior and attitude:

Mullin (1996) stated that "treat the selection as you would when conducting due diligence during a planned acquisition." HR practices affect performance in part by affecting employee perceptions, attitudes, and behaviors (Ostroff and Bowen 2000; Wright etal. 2001).Cronbachs alpha for the measure for this sample was 0.89.

H2: Behavior and attitude is positively related with organizational performance.

3.

Team activities:
(Kaplan & Norton, 2006 and 2007) explains teamwork as with the creation of work teams to solve problems or develop opportunities. (Dweck and Leggett, 1988; Eliott and Dweck, 1988; VandeWalle et al., 1999) stated that taking a developmental, problem solving perspective, rather than a judgmental one can help individuals learn from their experience and improve their organizational performance. Cronbachs alpha for the measure for this sample was 0.91.

H3: Team activities have positive effect on organization performance.

4.

Interaction facilitation:
We are surprised by this observation since Germany, under a national industrial and educational policy, offers apprenticeship training to secondary school students to facilitate the school-to-work transition (MacDuffie and Kochan, 1995). The level of trust and type of relationship between superior and subordinate may determine whether or not an incentive will be perceived as controlling by the subordinate (Kohn, 1993; Taylor, 1989).Cronbachs alpha for the measure for this sample was 0.89.

H4: Interaction facilitation has positive effect on organization performance.

5.

Incentives to meet objectives:

Snell and Dean (1992) further stress that a firm invests in employees to strengthen its human capital, but the firm does not actually own this human capital. Brand's (1998) research with 3M suggests that senior management must have a long-term commitment with regard to their employees' careers.Cronbachs alpha for the measure for this sample was 0.92. H5: Incentives to meet objectives increase the organization performance.

6.

Training on job skills:

Coff (1997) stated that the human capital theory recognizes employee skills, experience, and knowledge as assets with the potential to generate economic rent. According to (Karen 2004), increased awareness and further experience will help the early adopters better understand the issue around outsourcing and avoid the pitfalls so that they can take better advantage of the benefits.Cronbachs alpha for the measure for this sample was 0.78.

H6: Training on job skills has positive impact on organization performance.

7.

Training in multi functions:

Carmichael and MacLeod (1993) show how training workers in multiple skills will also make an employment security pledge more credible. Crossley & Hiscock, 1992; Korteling, 1991; McDowd & Craik, 1988) stated that some studies have found larger age-related differences in performance in less rather than more complex tasks.Cronbachs alpha for the measure for this sample was 0.85.

H7: Training in multi functions improve the organization performance.

8.

Communication of strategy:
According to (Tzafrir etal. 2004) involving the development of formal systems for the contribution of ideas and suggestions and of plans for organizational communication. Koufteros Vonderemb and Jayara, (2005) stated that supplier integration reduces the internal complexity of projects and improves the coordination of communications and information exchange with external human and technological resources.Cronbachs alpha for the measure for this sample was 0.92.

H9: Organization commitment has positive effect on organization performance.

9.

Feedback on performance:
(March & Simon, 1958; Thompson, 1967) stated that Continuous employee feedback and developmental performance appraisal would likely be of great value to manufacturers pursuing flexibility strategies because unpredictable environments require mutual adjustment for coordination.Cronbachs alpha for the measure for this sample was 0.88.

H9: Feedback is negatively related to organization performance.

10.

Organizational commitment (Mediating variable):

Huselid et al (1997) attest that there is broad agreement in the literature that strategic HRM . . . involves designing and implementing a set of internally consistent policies and practices that ensure a firms human capital contributes to the achievement of its business objectives.Anderson etal. (1994) stated that an employee with strong organizational commitment will be highly motivated to expend energy on organizational tasks.Cronbachs alpha for the measure for this sample was 0.89.

11.

Organizational performance:
An increasing body of research has addressed the implications of fit within HRM function for organizational performance (Ichniowski, Shaw and Prennushi 1997; Ichniowski and Shaw 1999, 2003). Much of the previous research on the relationship between HRM practices and organizational performance has concentrated on a single HR practice, such as compensation, selection, etc. (Gerhart and Milkovich, 1990).

Theory:
We take Pfeffer (1998), seven HRM practices as a proposed theory. We will be testing the HRM theory at the plant or operations level of the organization.

Theoretical framework:
Dependent variable is organization performance, which is the variable of primary interest. We attempt to explain the variance in the dependent variable by the nine independent variables of (1) Manufacturing and human resources fit, (2) Behavior and attitude,(3)Team activities,(4) Interaction facilitation,(5) Incentives to meet objectives,(6)Training on job skills,(7) Training in multi functions,(8) Communication of strategy,(9) Feedback on performance. Organization commitment is the mediating variable and its between the dependent and independent variables.

Schematic diagram:

Independent variables

Mediating variable

Dependent variable

(Greer, Youngblood, & Gray, 1993-2005) (Bardhan, Whitaker, & Mithas, 2006) (Mehmood, Zaidi, Sajid, & Herani, 2011) (Azmi, 2011) (Grau & Ripoll, 2010)

Bibliography
Ahmad, S., & Schroeder, R. G. (2003). The impact of human resource management practices. Journal of Operations Management, 21, 1943. Azmi, F. T. (2011). Strategic human resource management and its linkage with HRM. The International Journal of Human Resource Management, 22(18), 38883912. Bardhan, I., Whitaker, J., & Mithas, S. (2006). Information Technology, Production Process Outsourcing, and Manufacturing Plant. Journal of Management Information System, 23(2), 13-40. Grau, J. B., & Ripoll, C. G. (2010). STRATEGIC HUMAN RESOURCES MANAGEMENT AS AN ANTECEDENT TO THE BALANCED SCORECARD. Psychology in Spain, 14(1), 64-73. Greer, C. R., Youngblood, S. A., & Gray, D. A. (1993-2005). Human Resource Management Outsourcing: The Make or Buy Decision. The Academy of Management Executive, 13(3), 85-96. Mehmood, R. T., Zaidi, S. Q., Sajid, M., & Herani, G. M. (2011). The Impact of Human Capital Outsourcing on Human Capital Management Practices in Karachi. Indus Journal of Management & SocialSciences, 5(2), 81-99.