IMPACT OF HRM PRACTICES ON PERFORMANCE OF PROJECT

BASED ORGANIZATION (PBO)

INTRODUCTION

HRM include human resource practise that combine recruitment, determination, profession
opportunity, organize and development, employment fulfilment, work encouragement and
implementing evaluation. It formalizes human resource approaches to manage and compel
the development of human resource practise. For the productive development of any
organization, human practices is one of the necessary resources.(Anne Keegan 2011; Hayton,
2005) articulated that for the future accomplishment of any organization, practices of human
resource management are fundamental.

(Haunschild 2009) stated that human resource management have changed the rules,
regulation, procedure and policies of the organisation. For Project based organisations they
require open discussion and open way to communicate with each others. Specific challenges
have been created for human resource management. And these challenges have not been
encountered in the projected management literature. (Martina Huemann 2007).

Every project based organisation has its own requirement to complete a specific project.
Project based organizations work according to the demands of projects. Projecte Based
organisations have created the capabilities in their selves so that organisation can take action
to their customers need and wants efficiently and effectively. To adapt to project dangers and
instability and incorporating diverse learning and aptitudes it works successfully (Hobday,
2000). (Anne Keegan 2011; Huemann, 2010; TURNER, 2000) expressed that energetic
hierarchical environment will be made when there is a quick response to clients request and
work efficiently because resource are scare for each organisation. It is the requirement of an
organization that organisations should bring sharp strategies to stay in the competitive market
environment. For this reason working by project is utilized for overseeing such circumstance.

Human resource management is different between public and private organisations. Because
their nature of work is different from each other. On the executive level it’s their
responsibility to encourage individuals and enhance the organisational performance. On the
middle management level it’s their responsibilities to identify the potential pool of the
candidates and motivate them. Recruitment of potential pool of candidate will help an
organisation to create new innovative ideas and can uplift the performance of an organisation.
Human resource management in project based organisation is extremely appropriate for
micro and macro environment. Employee in project based organisation is enthusiastic to their
work and they are internally satisfied. In this way project based organisation requires no
expenditures (Lina Girdauskienė 2012).

Working in a hard and stressful environment employee remains under work pressure due to
the stressfulness employee may or may not pay attention to their work if the employee or an
individual will not treated well (Hutchinson, 2007).

IDENTIFICATION OF GAP:

There are number of researches conduct on HRM practices of traditional based

Organizations. This Research primary focused on HRM practices of Project based
organizations where HRM practices are very crucial, this study include key HRM practices of
project based organizations, work motivation, job satisfaction, training & development and
career opportunities impact on performance of project based organization.

PROBLEM STATEMENT

Human resource management practices in project oriented organization have not been
explicitly explained in Human resource management literature as well as in project
management literature. The way Human resource management recruit and use human
resources for performing operations; it should be a core process for all traditional
organizations as well as for project oriented organizations. PBO has adopted the environment
where work is of temporary nature. This imposed additional work load due to uncertain
requirements and multiple demands. This creates dynamic environment. Due to dynamic
work environment in project oriented organization, employees are under pressure. This
pressure can influence performance of employee. As the project work is practical in nature so
the project worker may have developed broad general skills. It is stressful to retain personnel
because the skilled project workers are transferable between the companies. In project
oriented organization there is conflicts of interest and ambiguity about the distribution of
responsibilities between the project workers. These issues are closely associated with the
HRM division in project oriented organization (Youker 1977).

This research has to examine whether HRM practices influence PBO’s performance.
(Sijbrandij, 2012) stated that the determination of exact change in employee’s behaviour,
attitudes and organizational performance is under explored topic. Further research in this
field might be of great value because it will embody the relationship between the HRM
practices and Project oriented organizational performance. In this research we will examine
the relationship of HRM practices and PBO’s performance.

Research Questions

 What is the relationship between work motivations and performance?

 What is the relationship between Job Satisfaction and performance?
 What is the relationship between work Career Opportunities and performance?
 What is the relationship between Training and development and performance?

Significance of the Study:

Nowadays, companies are facing competition on global level in order to retain in the
marketplace. In order to compete in global market, companies require HR practices that can
achieve quality of work, productivity and profit. The importances of HRM practices cannot
be denied as it modify an individual to become a valuable resource for organization. An
effective HRM strategy creates an environment of problem solving and adapting change
whether it occurs due to external factors or internal factors.

Human resource management considered as directly proportional to job satisfaction and

employee motivation. It can be assumed that motivated employee influences the project
based organization performance. In the result, an improved organizational performance will
lead to achieve organizational goals. The goodwill of a company can be maximized when it
will achieve targets on time. The efficiency of an organization is considered as its
competitive advantage. The project based organization needs to meet the deadlines which in
turn influence the performance of an employee and he will feel secure about his job.
LITERATURE REVIEW

Peoples are the most valuable assets of any organization. It’s a current war to retain
competitive employee. Wealthy Employee individually and collectively focuses on their goal
and tries to accomplish together. Employee fined their interest in their jobs. (Asta Stulgienė,
2012).

In recent decades it has been researched that organisations are fighting into blue ocean
strategy. Every organisation has their competitors which creates challenges. To jump out
from the competition zone an organisation should focus on efficiency and effectiveness and
they should change their strategy, process management according to project demand (Gareis,
2004). Articulated” ‘’ due to the increasing complexity and dynamics in the environment of
organization, changes are required more frequently’’

Current organisations are using project management as a tool for the implementation of
strategic goals. Conventional organisations have strategy to ensure that either their projects
are working efficiently and effectively or not .conventional organisations measure the
accuracy of projects by allowing integrating them. Organisation is usually divided into
subunits, which is also known as department. Purpose of dividing organisation into
departments is to control and monitor the projects very well. It’s become harder for the
organisations to survive in the competitive era without project management based activity.
(Asta Stulgienė, 2012)

There is a difference between project based organization and conventional organizations.

Both organisation work under the different culture and they have their own value and norms.
It has been researched that project management culture with a preparation of merits and
standards recognized with project management. It is create that settle project in the interior
lasting organizational structures is the most well-known type of supervision task in order
organizations in spite of the fact that the organizations distinction in the work and the amount
of actions they complete.(Huemann, 2010; TURNER, 2000). There are specific tools and
techniques have been used to critically analyse and manage the situations. (Gareis, 2004).
This research will identify that how human resource management perform task under such
environment. It works sufficiently or faces distinct issues. Similarly this research will identify
that how human resource management have feel problems and which practices can be used to
manage temporary work process.
As earlier has been mentioned that people are the most valuable assets of an organisation.
Therefore for an organisation it is important that organisation should involve their employee
because human resource influences the effectiveness and success of the organisation.
(BREDIN, 2006; Hobday, 2000) said that human resource management has been changed
because organisations are moving toward the project based organisation. Project based
organisation has created a new environment the employee to enhance their skill development
by trainings, competence development, commitment, motivation and empowerment. It’s
become the new way to hire the staff on a contract basis.

(Packendorff, 2002) expressed that project managers should consider the work load on
employee. When there are many projects initiated at a onetime then employee remain under
pressure. The reason for keeping employee busy in their task is to create more output.
Indulging employee in a project will create the interdependency among the employee and
create a good interpersonal communication (Martina Huemann 2007).

Training and development

In project based organisation training and development of an employee is low. Because

individuals are selected on a temporary basis. Due to the temporary work nature organisations
cannot arrange trainings for their employees (Hobday 2000, BREDIN 2006). In project based
organisation time is very short and arranging a training and development is very difficult for
the project workers (Martina Huemann 2007).

H1= Training and development has significant and positively correlated with PBO’s
performance

Career opportunities

(Rodney Turner) said that it’s not a easy to build good career in project based organisation
because projects are temporary so therefore there are very few chances to build career
opportunities. If there are many project working under the projected based organisations ,
then there are a possibilities that employee can move from one project to another project and
in this way employee can may take growth in career.
H2= Career opportunities has significant and positively correlated with PBO’s
performance.
Motivation

(BREDIN 2006) said that involvement of individuals in a new project is very essential. To
create employee intresrt in new projects it is important to identify that what are those factor
which can motivate the employee to participate in new projects. Motivation can be
complicated if the needs of an individuals can be perceived.

H3= Motivation has significant and positively correlated with PBO’s performance

PBO’s PERFORMANCE

Job satisfaction

Job satisfaction is a process in which intrinsic and extrinsic rewards matter a lot. If an
organisation provides incentive to the employee, then employee have positive attitude toward
the job. And if organisation does not provide the incentives then employee attitude and
behaviour will be negative (luthans 1985). Most of the research stated that if individuals are
satisfied with their job they will perform better to achieve organisational goals.

H4 = Job satisfaction has significant and positively correlated with PBO’s performance

• PBO’s PERFORMANCE

(WAMBUA, 2009) said that it’s a difficult task for the project based organisation to measure
performance appraisal in term of profitability, employee satisfaction, work motivation,
growth and responsibility to adapt competitive environment. To calculate the performance it
is suggested that by using multiple items it can reduce the effect of random errors.

Human resource management is being considered as the back bone of the traditional
organisation and project based organisation as well. If the human resource management used
efficiently and effectively it can create success for the project based organisation. Project
based organisation can be unsuccessful if the human resource management cannot be utilised
in an efficient way.

H5 = Job satisfaction, motivation, career opportunities and training & development has
an impact on PBO’s performance.
THEORETICAL FRAMEWORK

Independent variables Dependent variable

Work motivation

Career opportunities
PBO’s performance

Job satisfaction

Training & Development

METHODOLOGY

 Research design

This study is based on case study of a number of project based organizations. The
methodology for this study will be based on descriptive research. Descriptive research is best
method for data collection that explains the relationship under current condition. The study
will be based on respondent’s narrative about HR practice

 Sampling method

Focused population will be a number of project based organizations in Pakistan. The sample
consists of randomly selected 20 respondents from these different project based
organizations.
  Data collection instrument

This research contains both primary and secondary information gathering methods. The
important data will be gathered from the respondents in PBO through questionnaire. The
study will be created in a way that it secured all the elements of study and familiar to the
main objectives of the study. Secondary information include of literature review from
existing published journals of PBO and HRM.

 Data examination

Data examination will be done on both, primary data as well as secondary data.
Questionnaire once received will be checked for correctness. This will do by checking
whether the respondents answer all the questions and whether they are reliable.
Questionnaires will be then examined through SPSS by rules entering into the computer.
Descriptive statistics of percentages and mean will be calculated to interpret the properties of
data.
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