Measuring the Impact of Human Resource Practices on Organization Performance: Scale Validation Based on Pilot Study
DOI:
https://doi.org/10.52633/jemi.v5i5.330Keywords:
Human Resource Practices, Organization Performance, Validity, ReliabilityAbstract
Validity and reliability are crucial when interpreting scores derived from psychometric instruments like questionnaires, symptom scales, educational tests, and observer ratings. These instruments find application in clinical practice, research, education, and administration. The traditional concepts of face, content, and criterion validity are being replaced by the unified concept of "construct validity," which pertains to the extent to which a score accurately represents the intended underlying construct. Validity can be envisioned as a meticulously structured argument, where evidence is compiled to either support or challenge proposed interpretations of findings. While reproducible (reliable) outcomes are essential, they alone do not suffice to form valid conclusions. This research aims to develop a scale to determine the impact of HRPs on an organization’s performance. The principal component factor analysis results reveal that the scale encompasses six distinct dimensions, each comprising four to five items. To establish the validity and reliability of the scale, various statistical analyses were conducted, including Cronbach Alpha, Average Variance Extracted, HTMT, and Fornell & Larker. This piece offers a concise introduction to the concepts of validity and reliability concerning the overall effectiveness of test instruments. It outlines the essence and understanding of content, face, criteria, and construct validity, and highlights various methods for gauging and enhancing reliability. The use of PLS-SEM in conjunction with SPSS allowed thorough analysis. When an item fails to reach the statistical testing threshold level, it is reviewed and possibly revised. Although some things were not deemed valuable at first, they were later considered useful in gathering sufficient data to complete the primary study. This study identified key errors in its chosen instrument based on preliminary testing with suggestions to review or revisit particular item/s that may impact results while undertaking subsequent data analyses.
References
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411.
Arıcak, O. T., & Ilgaz, G. (2007). The investigation of construct validity of the biology course attitude scale with exploratory and confirmatory factor analysis. Eurasian Journal of Educational Research, 28, 1-8.
Barpanda, S., & Bontis, N. (2021). Human resource practices and performance in microfinance organizations: Do intellectual capital components matter?. Knowledge and Process Management, 28(3), 209-222.
Budhwar, P. S., & Sparrow, P. R. (2002). An integrative framework for understanding cross-national human resource management practices. Human Resource Management Review, 12(3), 377-403.
Budhwar, P.S., & Mellahi, K. (2007). Introduction: human resource management in the Middle East. The International Journal of Human Resource Management, 18(1), 2-10.
Chang, E., Chin, H., & Lee, J. W. (2022). Pre‐crisis commitment human resource management and employees' attitudes in a global pandemic: The role of trust in the government. Human Resource Management, 61(3), 373-387.
Costello, A. B., & Osborne, J. (2005). Best practices in exploratory factor analysis: Four recommendations for getting the most from your analysis. Practical assessment, research, and evaluation, 10(1), 7.
D’Angelo, C., Gazzaroli, D., Corvino, C., & Gozzoli, C. (2022). Changes and challenges in human resources management: An analysis of human resources roles in a bank context (after COVID-19). Sustainability, 14(8), 4847.
De Cieri, H., Sanders, K., & Lin, C. (2022). International and comparative human resource management: an Asia‐Pacific perspective. Asia Pacific Journal of Human Resources, 60(1), 116-145.
Demo, G., Neiva, E. R., Nunes, I., & Rozzett, K. (2012). Human resources management policies and practices scale (HRMPPS): Exploratory and confirmatory factor analysis. BAR-Brazilian Administration Review, 9, 395-420.
Ekinci, F., Bektaş, O., Karaca, M., & Yiğit, K. N. (2023). The flipped learning perception scale: A validity and reliability study. Education and Information Technologies, 1-28.
Faisal, S., & Naushad, M. (2021). The empirical evidence on negating turnover intentions among academicians. Problems and Perspectives in Management, 19(4), 270-282.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics.
Foster, S. L., & Cone, J. D. (1995). Validity issues in clinical assessment. Psychological assessment, 7(3), 248.
Garg, N. (2019). High performance work practices and organizational performance-mediation analysis of explanatory theories. International Journal of Productivity and Performance Management, 68(4), 797-816.
Guest, D. E., Michie, J., Conway, N., & Sheehan, M. (2003). Human resource management and corporate performance in the UK. British journal of industrial relations, 41(2), 291-314.
Guthrie, J. P. (2001). High-involvement work practices, turnover, and productivity: Evidence from New Zealand. Academy of Management Journal, 44(1), 180-190.
Hanaysha, J. (2016). Testing the effects of employee engagement, work environment, and organizational learning on organizational commitment. Procedia-Social and Behavioral Sciences, 229, 289-297.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135.
Hong, E. N. C., Hao, L. Z., Kumar, R., Ramendran, C., & Kadiresan, V. (2012). An effectiveness of human resource management practices on employee retention in the institute of higher learning: A regression analysis. International journal of business research and management, 3(2), 60-79.
Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resources management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171-188.
Ibeogu, P. H., & Ozturen, A. (2015). Perception of justice in performance appraisal and effect on satisfaction: Empirical findings from Northern Cyprus Banks. Procedia Economics and Finance, 23, 964-969.
Ishaq Bhatti, M., Awan, H. M., & Razaq, Z. (2014). The key performance indicators (KPIs) and their impact on overall organizational performance. Quality & Quantity, 48, 3127-3143.
Jean, K. N., Ngui, T. K., & Robert, A. (2017). Effect of compensation strategies on employee performance: A Case Study of Mombasa Cement Limited. The International Journal of Innovative Social Sciences & Humanities Research, 5(3), 25-42.
Junejo, D., & Kalhoro, S. S. M. (2020). The Emerging Concept of Entrepreneurial University: A Case Study of Public Sector Universities in Pakistan.
Kuruppu, C. L., Kavirathne, C. S., & Karunarathna, N. (2021). The impact of training on employee performance in a selected apparel sector organization in Sri Lanka. Global Journal of Management and Business Research: A administration and management, 21(2), 5-12.
Mahesar, H. A., Cao, G., & Clark, J. (2015). The Impact of Selected Human Resource Management Practices on Frontline Bank Managers’ Commitment. Paper accepted for presentation at: The Clute Institute, (7-8 June 2015), London, UK.
Malokani, D. K. A. K., Junejo, D., Makhdoom, T. R., Mumtaz, S. N., Qazi, N., & Darazi, M. A. (2024). Impact of Organizational Culture on Entrepreneurial Orientation: Role of Organizational Commitment. Migration Letters, 21(S7), 1048-1057.
Milkovich, G. T., Newman, J. M., & Milkovich, C. (2014). Compensation. New York, NY: McGraw-Hill/Irwin.
Mondy, R. W., & Martocchio, J. J. (2016). Human Resource Management 14th Global ed.
Mugizi, W., Rwothumio, J., & Amwine, C. M. (2021). Compensation management and employee wellbeing of academic staff in Ugandan private universities during COVID-19 lockdown. Interdisciplinary Journal of Education Research, 3(1), 1-12.
Nasar, N., Ray, S., Umer, S., & Mohan Pandey, H. (2021). Design and data analytics of electronic human resource management activities through the Internet of Things in an organization. Software: Practice and Experience, 51(12), 2411-2427.
Noe, R. A., Hollenbeck, J. R., Gerhart, B. A., & Wright, P. M. (2016). Fundamentals of human resource management (p. 608). New York, NY: McGraw-Hill Education.
Odiba, O. (2018). A model for effective quality management practices in construction organizations: the case of Nigeria (Doctoral dissertation, Loughborough University).
Otoo, F. N. K. (2019). Human resource management (HRM) practices and organizational performance: The mediating role of employee competencies. Employee Relations: The International Journal, 41(5), 949-970.
Rurkkhum, S. (2023). A bundle of human resource practices and employee resilience: the role of employee well-being. Asia-Pacific Journal of Business Administration.
Schuler, R. S., Budhwar, P. S., & Florkowski, G. W. (2002). International Human Resource Management: review and critique. International Journal of Management Reviews, 4(1), 41-70.
Schuler, R. S., & Jackson, S. E. (2005). A quarter-century review of human resource management in the US: The growth in importance of the international perspective. Management Revue, 11-35.
Sekiguchi, T., Jintae Froese, F., & Iguchi, C. (2016). International human resource management of Japanese multinational corporations: Challenges and future directions. Asian Business & Management, 15, 83-109.
Shiu, Y. S., Chang, S. Y., Wu, H. C., Huang, S. C. H., & Chen, H. H. (2011). Physical layer security in wireless networks: A tutorial. IEEE Wireless Communications, 18(2), 66-74.
Shrivastava, A., & Purang, P. (2011). Employee perceptions of performance appraisals: a comparative study of Indian banks. The International Journal of Human Resource Management, 22(03), 632-647.
Storey, J., Ulrich, D., & Wright, P. M. (2019). Strategic human resource management: A research overview. Routledge.
Sumirah, S., Jamrizal, J., Surraya, E., Huda, S., & Fitri, A. (2021). Human Resource Management at Integrated Islamic Junior High School. Al-Ishlah: Jurnal Pendidikan, 13(3), 3004-3012.
Tukey, J. W. (1970). Some further inputs. In Geostatistics: A Colloquium (pp. 163-174). Boston, MA: Springer US.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Dahshilla Junejo, Javed Ahmed Chandio, Imamuddin Khoso (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.