final project brm

7/29/2019 Final Project BRM

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BUSINESS RESEARCH METHODOLOGY

PRESENTED TO

Prof. Farooq Hussain

PRESENTED BY

Adil Pervaze

L1F11MBAM1090

Section: C
http://www.ucp.edu.pk/


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Abstract

The basic aim of the study is to show the impact organizational culture, organizational

learning, innovation and competitive advantage on human resource management. In this

study it is shown that how these factors affect the organization and how changes

significantly occurred inside the organization. According to hr point of view if hr

professional competences are used to manage the effect of these factors then there should

be a productive and competitive environment is established. If HRM is applied by

competent managers, by proper learning process, by introducing new innovative ideas, by

building entrepreneur skills in the employees, by encouraging their individual

performance, then there should be positive change in the culture and work performance of

employees and organization can achieve good productivity level.


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Introduction

The topic of discussion is the impact of organizational culture, organizational learning,

innovation, competitive advantage and entrepreneurship on human resource management. As we

can see that the whole world is global village and there is a rapid increase in the trends of

globalization. By the increase in the advancement of telecommunication media globalization is

expanding day by day and information sharing is becoming a common trend through internet and

different mass media.

According to this topic of discussion, organizational culture effects human resource management

by the impact of socio-cultural environment. Both the socio-cultural environment and the work

place cultural environment effects the human resource management. In the same way

organizational learning effects human resource management by the increase in different learning

trends in the organization. Learning of different skills and ideas in organizations affects HRM

practices in an organization positively.

HRM is also influenced by different innovative ideas, management introduces different kind of

innovative ideas to improve their hr practices in order make effective their hr practices. This can

be done by making technological changes or by introducing new and innovative ideas.

Organizations have to meet competitive advantage in order to compete in the industry in which

they are working. For achieving competitive advantage they have to enhance their hr policies and

practices. For this they always study their competitors strategies and policies so by this way

competitive advantage also effects human resource management.

Management also works to build entrepreneurship skills in their employees in order take

effective decisions for the progress of their organization. For management enhances their hr

department in order to train their employees up to the level of building entrepreneurship skills in

their employees

All of these factors human resource management in a positive manner. So we can see that

organizational culture, organizational learning, innovation, competitive advantage and

entrepreneurship skills effects human resource management and they all act as independent

variable and human resource management acts as a dependent variable.


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If we want to see the practical application of this process we have to see the HRM department of

any organization. It totally depends upon the management that how they manage their different

skills and abilities to understand, manage, balance and promote different strategies in their

organizations. It depends upon management that how that how they manage power and status in

the organization.

To promote and make effective human resource management in the organization there certain

factors which play important role. These factors are culture and values, economic system,

political system and human capital. To make effective human resource management in an

organization management firstly have to promote diversity in the culture of the organization.

Diversity refers to identify value, recognize, appreciate and utilize the exclusive talents and

contributions of all individuals in the organization. The major challenges to promote the diversity

in the organization are the mental acceptance of different people from different background.

Employees always differentiate their culture with other organizations and if any problem exists

in their culture then they cannot be able to give performance. Managers should have to impose

friendly culture in organization to make friendly and work performing environment.

By adopting good hr policies recruitment can be made according to the needs of the organization.

Managers hire talented employees who fit their culture. They made proper hiring through

performance appraisal system. Management has to introduce different strategies to make their hr

policies and practices effective, for this they have make research according to the global

standards.

Organizational learning is the first step to introduce global strategies in the organizations

effectively. To make changes managers firstly need to adopt them these changes, then these

changes are introduced to the entire employees of the organization through proper learning

process. This learning process can be implemented through different seminars or by conducting

different training and development activities. Companies also send their employees in foreign

countries in order to train them and adopt certain changes through proper learning process.


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Every organization has its own culture. Culture includes values, norms, ethics, rules and

regulations. Globalization effects culture in different ways in different perspectives. The main

effect of globalization is in the organizations that have diversified culture. The people who

belong to different background are treated equally. The organizations that have a diversified

culture are mostly affected positively by the globalization. While the other aspects are to adopt

different changes in the rules and regulations, ethics, decision making process, organizational

hierarchy etc, by getting inspired from foreign organizations.

Every organization has its own culture. Culture includes values, norms, ethics, rules and

regulations. Globalization effects culture in different ways in different perspectives. The main

effect of globalization is in the organizations that have diversified culture. The people who

belong to different background are treated equally. The organizations that have a diversified

culture are mostly affected positively by the globalization. While the other aspects are to adopt

different changes in the rules and regulations, ethics, decision making process, organizational

hierarchy etc, by getting inspired from foreign organizations is effect of globalization.

In organizations companies train their employees in such a manner, to build entrepreneurial skills

in their employees. They encourage their employees to take risk and also motivate them to give

innovative ideas and encourage their participation.

By the increase in the trend of globalization management always try to make their human

resource management department more effective to meet the competitive advantage in the

relevant industry. They impose new policies and strategies adopted by different companies this

can also involve technological changes. Different strategies set by the managers to impose these

policies, because managers always try to impose better policies by studying other organization

inside the country and outside the country.


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Literature Review

Thus, the manner inwhich HRM changes are . . . introduced, mediated and handled can lead todifferent outcomes, so even convergence at the global level in terms of economic forces and

technologies . . . may result in divergence at the national and international level, as these forces

are mediated by different institutions with their own traditions and cultures said by (Bamber &

Lansbury, 1998).

In short, despite globalization, varied national HRM systems remain as distinctive political,

economic, institutional, and cultural frameworks and features restrict transference and so

convergence in HRM. A further issue is that convergence and contingency approaches may

operate at different levels of HRM systems, said by (Becker & Gerhart, 1996).

Conclusion

HRM is affected by different factors in the organization. This effect comes from the intervention

of external forces and their influence in the organization. At organizational level HRM is mostly

affected by opening of foreign multinational companies in the country.

The change in hr policies results to the change in organizational culture and organizational

learning. If hr policies are imposed positively and in an effective manner in the organization

there should be positive change in the environment.

Levels can be distinguished (Becker & Gerhart, 1996) as: one, System Architecture (guiding

principles and basic assumptions); two, Policy Alternatives (mix consistent with one and

internal/external fit); and three, Practice Process (techniques given appropriate decisions at

one). Implementation of best practices may occur at level three, but its effects are contingent

upon levels two and one. However, the universal effects on firm performance may be expected at

level one, said by (Becker & Gerhart, 1996).


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Conclusion

The human resource management at national level is effected by the effect of external forces.

Changes occur at different level by different ways. These different ways include adopting new

innovative changes making new practices related to culture, innovation and developing skills in

employees.

For management an implication is that there were universal truths, including in HRM, that

could be applied everywhere. A central proposition is that because of political, economic, social

and technological forces, now including globalization, there is a worldwide tendency for

countries, and within them HRM, to become similar as the copying and transfer of practices,

sometimes taken as best practices and linked to benchmarking, was encouraged. In short, HRM

systems would converge, said by (Peters & Waterman, 1982)

Conclusion

Changes in HR policies and practices now a day are very fast because study the strategies of

other and try to adopt them and this is very rapid process. Management easily adopts the changes

and copies the strategies and applies these strategies to their organization.

The main source of completive advantage is the development of firm-specific resources that

generate knowledge, quality (of products, services and processes), innovation and flexibility,

with bundles and packages of consistent, integrated HRM practices and linked to business

strategy said by (Dmitrovic & Zupan, 2001). More recently, (Faugoo, 2009) provides cases of

organizations (French, German and Indian) employing a resource based view for managing their

workforce with employees at the core of organizations. A useful summary of some of the

literature in the area of the relationship between HRM and competitive advantage is given in

(Vokic & Vidovic, 2001). Thus, the resource-based view suggests HR systems can contribute to

competitive advantage by facilitating the development of competencies that are firm-specific and

embedded said by (Vokic & Vidovic, 2001).


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Conclusion

To adopt different hr policies the organization should have availability of human capital. Human

capital includes skilled labor, skillful employees. This can only be done by standardizing the

recruitment system of the organization and set certain standards for different types of

qualification.

For now a day for meeting competitive advantage and make some enhancements in the

organizations human resource management and human resource development become a very

important factor. By managing and developing human resource, companies or organizations can

move on the change policy or adoption of technological changes.

Both international and product diversification play key roles in the strategic behavior of large

firms said by (Hitt, Hoskisson, & Ireland, 1994). Building on the seminal work of Hymer (1960)

and Vernon (1966), international management scholars have explored the competitive and

performance implications of international diversification said by (Ghoshal, 1987). International

diversification may be defined as expansion across the borders of global regions and countries

into different geographic locations, or markets, thus, a firm's level of international diversification

is reflected by the number of different markets in which it operates and their importance to the

firm (as measured, for instance, by the percentage of total sales represented by each market),

international business scholars have argued that international diversification is important because

it is based on exploiting foreign market opportunities and imperfections through internalization

(Rugman, 1981).

Conclusion

For promoting HRM in organization the first step is to promote diversity in the organization. The

culture of the organization should be diversified so that any kind of cultural barrier cannot affect

the organization performance and hr practices should be improved.

As the globalization of markets increases, managerial interest in understanding adoption

processes across countries has led to calls for more academic research on international diffusion

(Douglas, 1992).


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We argue that global adoption comprises two stages as defined by (Rogers, 1983), which are

conceptually different (but related) measures of innovativeness across countries:

*the time between an innovation's first availability in the world and its first appearance in a

country, that is, the implementation stage, and

*the time between the innovation's initial trial in a country and its full adoption or substitution,

that is, the confirmation stage.

Conclusion

Different companies adopt different ways to adopt new trends of globalization; especially

managers of organization adopt new procedures to make innovative ideas in order to meet the

competitive advantage in the market. They firstly implement these ideas then they make

confirmation of these ideas.

The meaning of the term "international entrepreneurship" has evolved over the last decade,

during which academic interest in the topic has grown. An early definition focused on the

international activities of new ventures to the exclusion of established firms (Douglas, 1992). A

task force on international issues within the Entrepreneurship Division of the Academy of

Management formed during the early 1990s urged that the domain of international

entrepreneurship be broad, partly because the topics of relevant inquiry were perceived to be

rapidly evolving at the time (Giamartino & Bird, 1993)

By the mid-1990s, the international part of international entrepreneurship was becoming more

refined. (Wright & Ricks, 1994) said it is firm-level business activity that crosses national

borders and that such activity focuses on the relation between businesses and the international

environments in which they operate. Therefore, academic work in international business includes

the study of business activity that crosses national borders and comparisons of domestic business

activity in multiple countries.


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Conclusion

People are coming with new innovative ideas; they ring new ideas from different cultures and

introduce new products in their country. They bring different things from different cultures to

make new trend in the market in order to attract the customer, or they introduce their domestic

product in the other countries in order change the trend of that particular place and this is the

effect of globalization.

Different models have been used to analyze globalization in the realm of culture (Crane, 2002):

the world-system theory (Wallerstein, 2004) based on the coreperiphery model, the network

flows analysis, the reception approach, and cultural policy strategies. Though all of them have

proven adequate to describe different aspects of globalization, these models propose different

views of the consequences of globalization: the coreperiphery model emphasizes its

homogenizing effect, while the network flows analysis lays stress on hybridization and

indigenization, and the reception approach reveals patterns of appropriation, negotiation and

resistance; the analysis in terms of cultural policy strategies sheds light on the competition

between cultural industries and other actors involved in the process (Crane, 2002).

As we move into the age of globalization, organizational learning is attracting widespread

attention as a critical imperative for global strategic effectiveness (Doz & Williamson., 2001). In

the early stage of globalization, organizations need to learn about foreign markets in order todevelop globalization strategies. Research shows that organizations which learn efficiently from

experiences in foreign markets are able to expand overseas faster with fewer mistakes (Harrigan,

1988). However, organizations often find this type of learning difficult and frustrating (Parkhe,

1991).

Conclusion

Organizational culture is the main thing which effects hr practices; the managers adopt different

strategies to implement new things in the organization to modify the culture of organization. This

whole is done through proper learning process. Managers adopt different ways to make learn

their employees through making seminars, by conducting indoor and outdoor training sessions

and by sending their employees to other countries for advance training. This whole process is

now a day has become a common trend among organizations which clearly shows the effect on

the performance of the hr department.


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Theoretical Frame Work

Type of Research & Scale

The type of my research is quantitative, from secondary data and the scales which are used in

research are likert and dichotomous scales.


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SPSS WORK

Frequencies

Age

This table shows the age scale percentage. In the

sample size of 150 out of 100 percent 41.3 percent

are 21-30, 46.7 percent are 31-40, 10.7 percent are

41-50 and 0.7 percent is 51-60.

Gender

The table shows the gender scale. According to this

research in the sampling of 150 male are 84.7 percent

and female are 15.3 percent.

Experience

This table shows the experience scale of the people

who have filled the questionnaire. This table shows that

out of 150 30 percent is 1-5 years, 34 percent is 6-10

years, 20 percent is 11-15 years, 10.7 percent is 16-20

years and 5.3 percent is 21-25 years.


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Correlations

HRM.MEAM C.A.MEAN INN.MEAN O.C.MEAN O.L.MEAN ENTP.MEAN

HRM.MEAM Pearson Correlation 1 .328**

.255**

.277**

.281**

.191*

Sig. (2-tailed) .000 .002 .001 .001 .019

N 150 150 150 150 150 150

C.A.MEAN Pearson Correlation .328**

1 .176*

.207*

.237**

.181*

Sig. (2-tailed) .000 .031 .011 .003 .027

N 150 150 150 150 150 150

INN.MEAN Pearson Correlation .255**

.176*

1 .666**

.648**

.643**

Sig. (2-tailed) .002 .031 .000 .000 .000

N 150 150 150 150 150 150

O.C.MEAN Pearson Correlation .277** .207* .666** 1 .693** .716**

Sig. (2-tailed) .001 .011 .000 .000 .000

N 150 150 150 150 150 150

O.L.MEAN Pearson Correlation .281**

.237**

.648**

.693**

1 .702**

Sig. (2-tailed) .001 .003 .000 .000 .000

N 150 150 150 150 150 150

ENTP.MEAN Pearson Correlation .191*

.181*

.643**

.716**

.702**

1

Sig. (2-tailed) .019 .027 .000 .000 .000

N 150 150 150 150 150 150

CORRELATION

Competitive Advantage: For C.A, HRM contributes at 0.328 with the correlation significance at

0.00. This shows the positive relationship of C.A and HRM.

Innovation: For INN, HRM contributes at 0.255 with the correlation significance at 0.002. This

shows the positive relationship of Innovation and HRM.

Organizational Culture: For O.C, HRM contributes at 0.277 with the correlation significance at

0.001. This shows the positive relationship of Organizational Culture and HRM.

Organizational Learning: For O.L, HRM contributes at 0.281 with the correlation significance at

0.281. This shows the positive relationship of Organizational Culture and HRM.

Entrepreneurship: For ENTP, HRM contributes at 0.191 with the correlation significance at 0.19.

This shows the positive relationship of Entrepreneurship and HRM.


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ConclusionAll variables show the positive relationship with HRM with the different significance levels. The

significance is less than one but it is positive which shows the positive effect of all variables on

HRM. This shows that variables functioning accurately and will be more appropriate with more

analysis.

Linear Regression

Competitive Advantage and HRM

Variables Entered/Removedb

Model Variables Entered Variables Removed Method

1 C.A.MEANa

. Enter

a. All requested variables entered.

b. Dependent Variable: HRM.MEAM

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 1.060 1 1.060 17.817 .000a

Residual 8.807 148 .060

Total 9.868 149

a. Predictors: (Constant), C.A.MEAN


Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .328a

.107 .101 .24395

a. Predictors: (Constant), C.A.MEAN

Coefficientsa

Model

Unstandardized CoefficientsStandardizedCoefficients

t Sig.B Std. Error Beta

1 (Constant) .762 .101 7.515 .000

C.A.MEAN .358 .085 .328 4.221 .000

a. Dependent Variable: HRM.MEAM


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This model gives the value of regression which is 0.328. The R square is 0.107 which is not

closer to 1 which shows that independent variable has less effect on dependent variable, but the

difference between R square and adjusted R square is very less, which shows that independent

variables have positive effect on HRM. Whereas R square is 0.107 and adjusted R square is

0.101 and the significance is 0.00.

Innovation and HRM

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .255a

.065 .059 .24967

a. Predictors: (Constant), INN.MEAN

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression .642 1 .642 10.296 .002

a

Residual 9.226 148 .062

Total 9.868 149

a. Predictors: (Constant), INN.MEAN



ModelVariablesEntered

VariablesRemoved Method

1 INN.MEANa

. Enter




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Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients


1 (Constant) 1.038 .049 21.186 .000

INN.MEAN .065 .020 .255 3.209 .002


In this model we can see that the value of regression which is 0.255. The R square is 0.065 which

is not closer to 1 which shows that independent variable has less effect on dependent variable,

but the difference between R square and adjusted R square is very less, which shows that

independent variables have positive effect on HRM. Whereas R square is 0.065 and adjusted R

square is 0.059 and the significance is 0.02.

Organizational Culture and HRM


Model

Variables

Entered

Variables

Removed Method

1 O.C.MEANa

. Enter



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .277a

.077 .070 .24813

a. Predictors: (Constant), O.C.MEAN


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ANOVAb


1 Regression .755 1 .755 12.268 .001a

Residual 9.112 148 .062

Total 9.868 149

a. Predictors: (Constant), O.C.MEAN


Coefficientsa

Model


Standardized

Coefficients


1 (Constant) .982 .060 16.242 .000

O.C.MEAN .086 .025 .277 3.503 .001


In this model we can see that the value of regression which is 0.277. The R square is 0.077 whichis not closer to 1 which shows that independent variable has less effect on dependent variable,





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Organizational Learning and HRM


Model

Variables

Entered

Variables

Removed Method

1 O.L.MEANa

. Enter



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .281a .079 .073 .24783

a. Predictors: (Constant), O.L.MEAN

ANOVAb


1 Regression .778 1 .778 12.660 .001a

Residual 9.090 148 .061

Total 9.868 149

a. Predictors: (Constant), O.L.MEAN


Coefficientsa

Model


Standardized

Coefficients


1 (Constant) .991 .057 17.371 .000

O.L.MEAN .084 .024 .281 3.558 .001



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Entrepreneurship and HRM


Model

Variables

Entered

Variables

Removed Method

1 ENTP.MEANa . Enter



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .191a

.037 .030 .25345

a. Predictors: (Constant), ENTP.MEAN

ANOVAb


1 Regression .360 1 .360 5.609 .019a

Residual 9.507 148 .064

Total 9.868 149

a. Predictors: (Constant), ENTP.MEAN



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Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 1.042 .062 16.676 .000

ENTP.MEAN .063 .027 .191 2.368 .019





independent variables have positive effect on HRM. Whereas R square is 0.037 and adjusted Rsquare is 0.030 and the significance is 0.019.

Combine effect of all Independent Variables on HRM.

Variables Entered/Removed

Model

Variables

Entered

Variables

Removed Method

1 ENTP.MEAN,

C.A.MEAN,

INN.MEAN,

O.L.MEAN,

O.C.MEANa

. Enter


Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .412a

.170 .141 .23856

a. Predictors: (Constant), ENTP.MEAN, C.A.MEAN, INN.MEAN,

O.L.MEAN, O.C.MEAN


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ANOVAb


1 Regression 1.673 5 .335 5.878 .000a

Residual 8.195 144 .057

Total 9.868 149

a. Predictors: (Constant), ENTP.MEAN, C.A.MEAN, INN.MEAN, O.L.MEAN, O.C.MEAN


Coefficientsa

Model


Standardized

Coefficients


1 (Constant) .672 .107 6.274 .000

C.A.MEAN .294 .085 .270 3.441 .001

INN.MEAN .026 .028 .100 .904 .368

O.C.MEAN .046 .038 .149 1.210 .228

O.L.MEAN .041 .036 .135 1.128 .261

ENTP.MEAN -.041 .040 -.124 -1.015 .312


The combined effect in this table shows the value of regression 0.412. The value of R square is

0.170 which is little bit closer to 1 according to all previous observations, this shows all combine

effect the HRM in a positive way. The R square is 0.170 and adjusted R square is 0.141, which

shows that there is very less difference and all independent variables affect dependent variable

positively with the significance of 0.00. This shows that by the on unit change in independent

variable the dependent variable is also affected but positively.


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Conclusion

As far it is discussed the type of my research is quantitative from the secondary data resources.

So according to the whole research process we can see all these variables have positive effect on

human resource management and their combine effect is also positive. The whole research shows

that by 1 percent change in independent variable dependent variable effects.


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Bibliography

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Vokic, W., & Vidovic, M. (2001). HRM as a significant factor for achieving competitiveness through

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