Human resource development and organisational performance: Evidence from Pakistan

Abstract

Purpose: This study is an endeavour to find the effect of human resource development on organisational performance. Human resource development is essential for better organisational productivity and effectiveness. Research purpose: This study specifically investigates the impact of organisational context, resourcing, training and development, skills, attitude and behaviour on organisational performance. Design/Methodology/Approach: This research study focuses on manufacturing companies in Islamabad and Rawalpindi, Pakistan. A standardised questionnaire with a response rate of 85% was used to gather data from a random sample of 50 manufacturing companies. The structural equation modelling technique was used for data analysis. Findings: Organisational performance has a positive association with all the independent factors studied in this article: resourcing, training and development, employees’ abilities, employee attitudes, employee behaviour and the organisational context. In addition, the outcomes of this research support the idea that human resource development methods might have a favourable influence on manufacturing business performance. There is no direct correlation between resourcing and organisational performance, although training and development activities are favourably connected with it. Contribution: For the first time, this research aims to evaluate how human resource management (HRM) influences organisational performance in Pakistan by examining theoretically created pathways between key exogenous and endogenous factors.

Keywords

• human resource development
• organisational performance
• manufacturing companies
• pakistan
• structural equation modelling