Analysis of Performance Appraisal System and its Linkage with Employee's Commitment, Job Satisfaction, and Organizational Performance: A Case Study of National Bank of Pakistan
This thesis aims at exploring the various performance appraisal purposes, awareness level of employees about performance appraisal system, effectiveness of current performance appraisal system, and detriments to the effective performance appraisal system in the National Bank of Pakistan (NBP). The thesis also examines the impact of performance appraisal purposes on job satisfaction, employees' commitment, and organizational performance including both financial and non-financial performance, while taking job satisfaction and employees' organizational commitment as mediators. The sample size of this study is 391 employees, which is calculated by applying Yamane'sformula, and convenient sampling method is used for survey because it is not easy to access all the population and all population is not relevant 400000000.
The questionnaire is developed for data collection based on five point Likert scale after critically reviewing literature, specifically, the studies including: Nyaoga et al. (2010); Ali et al. (2010); and Moulder, (2001). A pilot study was conducted to check the validity and reliability of the instrument. Structural equations modeling analysis through AMOS version 21 is applied to examine the impact of performance appraisal purposes on job satisfaction, employees'organizational commitment, and organizational performance, and impact of job satisfaction and employees' organizational commitment on organizational performance. Path analysis through AMOS version 21 is used to explore the mediation effect of job satisfaction and employees' organizational commitment between performance appraisal purposes and organizational performance.
The study concludes that: (a) Employees at NBP ranked performance appraisal as a necessary tool for promotion, renewal of service contract, training, finding suitable employee for new assignment, counseling and redevelopment of employees, rewards, discipline, motivation, and transfer of employees; (b) Employees at NBP ranked awareness of performance appraisal system as aware-off with goals of performance appraisal system, aware-off with linkages of performance appraisal system with objectives of organization, and aware-off with purposes of performance appraisal system; (c) Employees at NBP ranked effectiveness criteria of performance appraisal system as employee's contribution is properly assessed, assessment matches with employee's expectation, transparency is maintained, and performance appraisal system is according to the employee's satisfaction level; (d) Employee at NBP ranked detriments to effective performance appraisal system as organizational politics, emotional distress, reluctance of raters to offer feedback, inconsistencies in setting and applying appraisal criteria, rewards on non-performance, performance of targeted employees, and subjectivity of performance appraisal system; (e) Performance appraisal purposes have highly significant positive impact on job satisfaction, employees' organizational commitment, financial performance, and non-financial performance; (f) Job satisfaction of employees has highly significant positive impact on financial performance, and non-financial performance; (g) Employees organizational commitment has insignificant negative impact on financial performance, and non-financial performance; and (h) Financial performance will go up by 0.046 while mediating job satisfaction between performance appraisal purposes and financial performance, financial performance will go up by 0.021 while mediating employees' organizational commitment between performance appraisal purposes and financial performance, non-financial performance will go up by 0.068 while mediating job satisfaction between performance appraisal purposes and non-financial performance, and non-financial performance will go up by 0.035 while mediating employees' organizational commitment between performance appraisal purposes and non-financial performance of National Bank of Pakistan.
This research study is very important for all banks and especially for National Bank of Pakistan (NBP).
Impact of Employee Relations on Employee Performance in the Hospitality Industry of Pakistan
This study is an attempt and aimed to find the impact of a set of six famous Employee Relations Practices on Employee Performance in the Hospitality Industry of Pakistan. These Employee Relation Practices are Conflict handling, Unions, Discipline, Participative Leadership, Benefits and Training. The changing role of Employee Relation Managers in current corporate cenario, change management and the significant impact of a set of employee relation practices on performance of employees are focused in this research.
Data has been collected through questionnaire sent to 3 star, 4 star and 5 star hotels located in the different regions of Pakistan. The results proved that a set of six famous Employee Relations Practices impact positively and significantly through Motivation on Performance of Employees working in hospitality industry of Pakistan.
A Study of Factors Affecting Dividend Yield and Dividend Payout Ratio of Oil and Gas Sector of Pakistan
The purpose of this study is to determine the factors which effect dividend yield and dividend payout ratio by taking 27 oil and gas companies which are listed on Karachi Stock Exchange (KSE) and Lahore Stock Exchange (LSE). This study provides empirical analysis of the effect of factors (earning per share, profitability, stock prices, firm size, lagged value of dividend, market to book value and financial leverage) on dividend yields, dividend payout ratio.
The results from this analysis provide strong support that factors market to book value and financial leverage has negative relationship with dividend yield and dividend payout ratio. The results also demonstrate that profitability, earning per share, firm size, stock price and lagged value of dividend have positive relationship with dividend yield and dividend payout ratio. A major part of these results reveal that stock price, profitability and firm size have great effect on dividend yield and dividend payout ratio.
The Impact of Strategic Human Resource Planning on Organizational Performance
Human resource is undoubtedly the most precious asset of an organization. In the modern era, this business function is bringing ever increasing returns to the firms. Among the hot pursuits of reaching the International standards, human resource management is at the top priority.
The purpose of this research is to analyze the importance of strategic human resource planning in ISO certified companies of the paper and board manufacturing industry of Pakistan. Among all the organizations, two are found to be worthwhile for this study.
It is a descriptive research that turns out the impact of strategic human resource planning on performance indicators such as sales, production, material consumed, gross profit margin, employee remuneration and paid-up capital. The data of the companies was taken from their annual reports.
The findings suggest that there exists a strong association between the two variables i.e. strategic human resource planning brings a positive impact on organizational performance. Companies have been seen to improve performance in the analysis of past five years. Human resource planning is being embedded as a core competency in the extravaganzas of the organizations. It is forecast that if the entire economic sector utilizes the human resource optimally, the improvement in the performance shall be much more superior in the coming years.
This research will be helpful in giving the chance on the debate of strategic human resource planning in the stated economic sector.
Investigating, The Role of Securities& Exchange Commission of Pakistan from Investor’s Perspective in Stock Markets.
SECP was created to succeed the Corporate Law Authority, which was an attached Department of the Ministry of Finance. The process of restructuring the Authority was initiated in 1997 under the Capital Market Development Plan of the Asian Development Bank (ADB). Securities and Exchange Commission of Pakistan Act was passed by the Parliament and promulgated in Dec. 1997. In pursuance of this Act, the Securities and Exchange Commission of Pakistan, having autonomous status, became operational on Jan. 1 1999. The Act gave the organization the administrative authority and financial independence to carry out the reform program of Pakistan's capital market with the assistance of the ADB. Powers of the Commission have been delegated to the individual Commissioners and Appellate Benches, as envisaged in the Act.
There is great work done on performance of stock markets around the globe and also some work done on regularity impact but there is no concrete work done in Pakistan to investigate the role of SECP from investors' perspective in stock markets. There is also no methodology to check the performance of regulator except IOSCO methodology in which by using qualitative approach stake holders' opinion through questionnaires and interviews can be ascertained. So the researcher got the stake holders' opinion/view through questionnaires and discussion while getting the questionnaire filled. There were 40 questions and all questions were close ended to investigate the role of Securities & Exchange Commission of Pakistan from investors' perspective in Stock Market.
These questionnaires were got filled from all four stake holders to know the point of view of investor, broker, agent and regulator as well. Every question was analyzed in depth, every question was analyzed stake holder wise, city wise and answer wise along with percentage of every section.
The research found that SECP is playing very positive role in stock market not only from investors' perspective but also from government point of view. Since the SECP came into action there is remarkable time decrease in registration of company, it was very good feeling to know that 100% of all stake holders replied that SECP officials never asked them for any type of gift/bribe or any other favor. SECP has open door policy and any complainant can come and can lodge complaint against any person. SECP has a number of qualified individuals on its payroll who are being paid market based salaries and are fully equipped to monitor stock markets on daily basis.
During discussion with people while getting the questionnaire filled it was found that most of the investors don't know their rights and duties as an investor and that is the major cause of their loss if any in stock markets. Investors don't inquire completely before investing in a particular stock/security. Most of the people have never seen the audited financial statements of the company in which they are going to invest, they simply try their luck and want to make hay while the sun shines.
Effect of Structure and Risk Management of Commercial Banks on Profitability and Socio-Economic Development: A Comparative Study of China and Pakistan.
Commercial banks operate in an environment of risk and asymmetric information. It is the structure and risk management of commercial banks that impact profitability of commercial banks. Structure is a term used to describe the number of banks and size whereas risk management involves managing non-performing loans, capital adequacy ratios and liquidity of banks. Data on a sample of 30 Chinese commercial banks and 26 Pakistan commercial banks is collected for the period of 2004 to 2010 to investigate the impact on commercial banks' profitability of the two independent variables i.e. structure and risk management between China and Pakistan. We use SPSS to estimate the models and compare the results of the two countries.
The empirical results suggest that structure and risk management influence the profitability of banks. This research is useful for policy making and knowledge sharing between the two countries finance researchers.
Service Quality and Behavioral Intentions: with Mediating Role of Customer Trust and Customer Satisfaction of Study of Restaurants of Faisalabad City.
This research work focuses on full service restaurants, to understand the role and influence of service quality on behavioral intentions i.e. loyalty and repurchase intentions of customers, Meanwhile, examining customers' satisfaction and customers' trust role in this relationship as well. Increasing number of restaurants is a basic reason of immense competition in this industry, so importance of keeping customers loyal and having their favorable intentions cannot be denied. As it is always costly to acquire new customers than keeping the existing ones loyal that are willing to make repurchases.
Study was conducted on restaurants in city of Faisalabad and the target population was individual customers of restaurants. By using well structured, self-administrated questionnaire primary data was collected from 250 individual customers of different restaurants in Faisalabad. For data analysis SPSS 16 version was used. Different tests or tools that were used for analysis include Descriptive statistics, One-way ANOVA, Correlation Analysis, Multiple Regression Analysis and Cronbach's Alpha.
Findings of the study indicate that service quality is an important predictor of behavioral intentions, having direct statistically significant relationship with customers' loyalty and customers' repurchase intentions. Customer satisfaction and customer trust are failed to prove as mediators in relation of service quality and behavioral intentions for restaurants but yet indirect influence of service quality through customer satisfaction and customer trust is stronger.
This study has made contributions in better understanding of service quality influences. And thus will help restaurants' management in taking profitable decisions, by making, quality improvement efforts financially accountable.
Impact of Organizational Culture and Social Influence on Organizational Citizenship Behavior with Mediating Effect of Interactional Justice
Amalgamation of organizational processes and human interactions has given rise to phenomenon known as organizational behavior which enfolds multifaceted dimensions and paths to be explored. This study attempts to investigate a few of these directional paths in order to identify the behavioral patterns and prototypes that exist in organizations. Objective of the study is to investigate a vital employee performance pattern "organizational citizenship behavior" (OCB) by analyzing the impact of organizational culture and social influence alongwith mediational effect of interactional justice.
This study aims to explore how organizations may develop the phenomena of "extra effort" among its employees and how it can be beneficial for organizational prosperity and growth. Data of 550 respondents from various banks was collected by using self-administered questionnaire. Data was analysed through rigorous statistical technique to explore the nature of relationship among variables by examining construct validity and normality. To identify the extent of effects variables cast upon each other, the technique of Structural Equation Modeling (SEM) is applied through AMOS 20 yielding interesting insights about association among variables.
The research findings have provided support to conceptual framework showing both direct and indirect relationships among the variables thus endowing with quantitative model and insights. The study carries both academic and managerial implications, future direction and recommendations that can provide base for future studies.
The Effects of Mergers and Acquisitions on Risk Reduction, Profitability, Efficiency and Growth of Banking Sector of Pakistan
This specific study has been conducted with the aim to highlight and describe the effects of mergers and acquisitions on risk reductions, profitability, efficiency and growth of banking sector of Pakistan. Ten banks operating in Pakistan having observed merger or acquisition transaction including Faysal Bank, United Bank Limited, JS Bank, Standard Chartered Bank, NIB Bank, KASB Bank, MCB Bank, Habib Metropolitan Bank, Habib Bank and Bank Alfalah have been taken as a sample.
The financial analysis has been made with the help of financial ratios before and after merger or acquisition transaction to analyze the effects of the M&A activities. The paired sample T-test has been employed to verify the difference of performance of merging and acquiring banks before and after M&A transactions.
It has been found out from the results of this study that merger and acquisition transactions have no significant effects upon risk reduction, profitability, efficiency and growth of banking sector of Pakistan which is consistent to the several prevailing studies.
Impact of Service Quality on Brand Equity and Brand Loyalty: A Study Based on Café Industry of Islamabad
The competitive world today requires a very high brand equity and brand loyalty which can be attained through improved service quality (tangibility, responsiveness, reliability, assurance and empathy). In lieu of the investments in the service quality of cafés, the café industry has bloomed to a large scale and proved to be reliable in terms of huge profit and success. The purpose of this study is to examine the connection between the effect of tangibility, responsiveness, reliability, assurance and empathy on brand loyalty and brand equity.
This study endeavors to find out how the enrichment in service quality enhances the consumer's commitment to repurchase the product, to continue using the same brand, or to increase the commercial value of the café brand that is derived from the customer perception of the brand. The data for the present research study were gathered through structures questionnaires from the café consumers of Islamabad. Response from 300 café consumers was collected and analyzed. Particularly café industry of Islamabad was selected due to its emerging growth in the metropolis. Multiple regression and t-tests were applied for the analysis of data.
Findings of this research study show that there is a significant positive relationship of all the dimensions of service quality on brand equity and brand loyalty. Less developed nature of the industry and lack of previous researches limits this study. However, the geographical area can be spread all over Pakistan for the research in future. Besides, other variables can also be added that might contribute towards brand loyalty and brand equity
Impact of Organizational Culture and Locus of Control on Turn over Intention with Mediating Role of Job Satisfaction
Turnover intention has gained substantial consideration from last few years and has been extensively studied because of its profound implications towards organizations. Retention of key employees has always remained a critical matter for organizations. Turnover intention's literature advocates many other factors which may influence the employee's decision to leave the organization. However, the factors that influence turnover intentions have been ignored in work stream. This attempts to investigate turnover intentions with three factors including locus of control, organizational culture, and job satisfaction. Initially, a deep understanding of the topic is developed after studying number of articles, books and other literature.
A competing quantitative model is then developed where job satisfaction is considered as a mediating variable. Data was collected from a sample of 462 employees of telecom and pesticide industry. The proposed model was then tested using Structural Equation Modelling (SEM). AMOS was used to identify best fit. As reported in this thesis, the proposed model has been modified according to fit indices.
The results of the model illustrate that locus of control has significant impact whereas organizational culture does not have any significant impact on the turnover intentions.
Mediating Role of Employees Performance on the Relationship of Organizational Performance and Culture
Organizational culture has a definite impact on organizational performance and employee’s performance to become important within the system. This study shows the dimensions of culture (power distance, masculinity & femininity) and evaluates its impact on perceived organizational performance.
A sample of 200 respondents working in 10 different organizations was selected. Questionnaires sent directly to the target population had four parts. In the first part there were 5 questions related to personal profile , 4 questions were there in second part related to power distance , 5 questions related to masculinity & femininity ,10 questions related to perceived organizational performance , and 8 questions pertaining to employees performance which was use as mediating variable.
The study shows that cultural dimensions like power distance has —ve impact and masculinity & femininity has +ve impact on employee’s performance as well as perceived organizational performance. Mediation regression analysis proved mediation between culture and perceived organizational performance.
Understanding the Impact of CRM on Customer Loyalty: The Mediating Role of Customer Satisfaction and Trust (A Study of Banking Sector in Faisalabad).
Main objectives of this research study are to investigate the mediating role of customer satisfaction and customer trust between (perceived) customer relationship management (CRM) and customer loyalty and to investigate the inter-relationship between CRM, customer satisfaction, customer trust and customer loyalty. In this study banking sector was selected as a sample, banks which offer their services to general public at large were considered such as private banks, Islamic banks and foreign banks branches located in Faisalabad region. Sample of study was consisted of 250 individual customers of banks which were selected by convenient sampling technique.
A self-administrative questionnaire was used for collecting data from selected sample which was adapted- from previous literature. Statistical techniques such as descriptive statistic, cronbach alpha, correlation analysis, ANOVA and Regression analysis were applied on data by using (Statistical Package for the Social Sciences) SPPS .16.0.
Results indicated that there are statistically significant positive linear relationships among all study variables, the level of significance for all study variables were significant at (p < 0.01) level 2 tailed. Results also revealed that CRM have significant and positive influence and relationship with customer satisfaction, customer trust and customer loyalty. On other hand customer satisfaction and trust also have significant and positive influence and relationship with customer loyalty. The exclusive and essential findings of this study are that Customer satisfaction and customer trust partially mediate the relationship between CRM and customer loyalty.
This study also enhance management's knowledge and provide managerially relevant (actionable) results that by improving CRM system and strategies in banks, they can get more customer's satisfaction and customer's trust which ultimately strengthen favourable behavioural intensions such as customer's loyalty. Furthermore, there is no study previously done in Pakistan especially in specific region (Faisalabad) that has found mediating effect of customer satisfaction and trust between CRM and customer loyalty. This study is a distinguished but limited contribution in literature.
The overall findings and recommendations of this study contributes towards improvement of existing CRM strategies and applications of banks that also helps them to overcome their weaknesses by and achieve competitive advantage in form of loyal customers.
Impact of Spiritual Leadership Style on Employees Commitment & Motivation in Petroleum Industry.
The organizations which have shown reluctance to adopt the spiritual style of leadership are facing dearth of commitment in their employees which in turn leads to low level of productivity. Therefore, to get higher efficiency level from employees this is necessary to create connotation in their work and this would also possible through spiritual style of leadership. The need for spiritual well-being must be contented in organizations. Therefore, this descriptive study applies a quantitative inquiry to find the relationship of spiritual style of leadership and organizational commitment with the mediating effect of motivation of workers working in petroleum industry. Data were collected from a sample of 300 employees using convenient sampling technique. SPSS 16.0 registered version was used for the statistical analysis of the data collected through adopted self-administrative questionnaire.
This study found the positive relationship between spiritual leadership and organizational commitment. The results also signpost that employee's motivation has considerable mediating role among spiritual style of leadership and organization commitment. Hence, the organizations whose leaders practicing spiritual style of leadership are experiencing added motivation and committed on part of their workers. It is more beneficial for the organizations that they recruit the managers who are more familiar with spiritual style of leadership, and they can practice the same more effectively in the teamwork. Moreover, organizations can also provide trainings to the leaders of the teams regarding the spirituality for the betterment of the organization.