st mgt paper jan 2013

7/28/2019 St Mgt Paper Jan 2013

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SHRM PRACTICES AND EMPLOYEES MOTIVATION

The impact of strategic human resource management

(SHRM) practices on employee motivation

Col. Zaigham Khan

Scholar MS- Supply Chain Management

Riphah International University, Islamabad, Pakistan

Wing Comd (R) Saqib Naveed

Scholar MS- Finance


Farrukh Saleem

Scholar MS- Finance


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Abstract

(To be inserted later)

Introduction

Various scholars from different disciplines have conducted research on the direct relationship

between SHRM practices and performance of the firm. Dorty & Delery (1997) are of the opinion that

Strategic HRM practices influence performance of organizations by sustaining skillful, motivated and

empower workforce. However, little efforts have been focused on establishing some of intermediary

links like motivation, staffing, training and development, skills & abilities, job security and work place

environment, etc.

The idea of this research stalks from literature on HRM and organizational performance which

establishes link between the two however; the basic aim of this study is restricted to unveil only the

extents of effects of SHRM practices directly on employee motivation rather than employee

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performance. The knowledge generated can help the future researchers to conduct conceptual studies

on mediating influence of motivation on relationship between SHRM practices and performance.

A thorough study of past literature has helped to determine the gaps in prior studies. Sufficient

work has been undertaken to establish relationship between practices relating to HRM and employee /

firms performance. A few others, but comparatively less in number, have also focused on existing

linkages between SHRM practices and their impact on firm and employee performance. However, the

effects of some of the intermediary factors have been rather deliberated inadequately. In fact the

scarcity of past research on the mediating linkages was one of the demanding aspects of this research,

however, fortunately rare references, to the effects of SHRM practices which influence motivation

(usually taken as intermediary factor), have been found (Dimba, KObonyo, & Kiraka, 2008; Doty &

Delery, 1997 ; Glen, 1997; Glen, 1994; Huselid, 1995; Ichniowski & Prennushi; Kramar, 1992).

Problem Statement

This study seeks to explore and investigate only the extents of effects of SHRM practices

directly on employee motivation.

Knowledge Gap

The literature review has helped us determine the gaps in previous studies. Sufficient research

has been carried out to establish a link between SHRM/ HRM practices and organizational/

employees performance. There appears to be a need for some research to identify a correlation

between SHRM/ HRM trends followed by organizations and motivation of their employees, as this

aspect has been more or less neglected in the past.

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Literature Review

Following relevant /partially relevant punch-lines have been identified and need a mention:

Human Resource Management (HRM)

Jackson & Schuler (1995) have mentioned that various theories have been applied to establish

the role of human resource to determine the organizational performance. Whereas, the previously

conducted research work mostly focuses on significance of HRM practices and

employee/organizational performance.

The HRM practices can be grouped in terms of their effect on skills and abilities of employee

motivation and the manner in which the work has been structure (Arhter, 1994; Bailey, 1993; Huselid,

1995; Ichniowski et al., 1994; Kochan & Osterman, 1994).

Delaney and Huselid have quoted the references from literature, organizations can adopt

various HRM practices to enhance employee skills. First, effort can focus on improving the quality of

the individual hired or on raising the skills and abilities of current employees, or on both. Employees

can be hired via sophisticated selection procedures designed to screen out all but the very best

potential employees. Indeed, research indicates that selectivity in staffing is positively related to firm

performance (Becker & Huseli, 1992; Schmidt, Hunter, McKenzie & Muldrow, 1979). Second,

organizations can improve the quality of current employee by providing comprehensive training and

development activities after selection. Considerable evidence suggests that investments in training are

beneficial to organizational outcomes (Bartel, 1994; Knoke & Kalleberg, 1994; Russerll, Terborg,

Powers, 1985).

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Strategic Human Resource Management (SHRM)

Abdulkadir and Adedoyin (2011) define Strategic HRM practices as set of proactive HR

practices, strategies or policies which will ensure that an organization's human capital contributes to

the attainment of its corporate objectives.

Adoption of proper grievance procedures may also motivate employees of a firm to work with

more enthusiasm as they expect their endeavors to be fairly rewarded (Ichniowski, 1986; Ichniowski et

al,1994). Ensuring merit based promotions rather than seniority based may also enhance motivation

and retention of employees (Guest, 1997). Huselid (1995) highlighted that motivation based high

performance work system decreased turnover and increased productivity and sales. The performance

oriented practices link rewards to performance so that employees are encouraged to engage in

behaviors aligned with the organizational interests.

SHRM as cited from Dima, K'Obonyo, & Kiraka, 2008, strategic human resource

management involves the development of a consistent aligned collection of practices, programs

(strategies), and policies to facilitate the achievement of the organization's strategic objectives (Mello,

2002).

SHRM Practices

SHRM practices is defined by Dimba, K'Obonyo, & Kiraka, 2008 and cited as such, SHRM

practices also known as high performance work practices or best practices, are those decisions and

actions which concern the management of employees at all levels in the business, and which are

related to the implementation of strategies directed towards sustaining competitive advantage

( Kramar, 1992). Examples of these practices are alignment of business and HR strategies,

formulation of clear strategic mission, refined grievances handling, information sharing program, job

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analysis, performance evaluation, refined recruitment procedures, profit sharing through bonuses,

monitoring of employee attitude, skill based compensation, skill development and training etc.

HRM vs SHRM

In order to clearly differentiate between HRM and SHRM practices an effort has been made to

develop a matrix ( http://www.differencebetween.net/business/difference-between-hrm-and-strategic-

hrm/ ).

Matrix HRM & SHRM Practices

Matrix HRM & SHRM Practices

HRM SHRM

Uses approaches to the management of

employees

Uses approaches to the management of the

organization

Traditional methods are followed (selection or

recruitment process and imparting training)

Sophisticated methods are used (for

improving overall employee motivation and

productivity)

Uses orthodox tools Uses systematic tools

Deals with individual employee performance Deals with organizational performance and

systems of practices

Involves the process of employing people,

developing their skills and utilizing their

services.

Affects how employees are treated, affect

security of employment and the nature of

employment. It reaches into the deepest tiers

of individuals relationships

No specific rules for different areas like There are specific rules specified for

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recruitment, training and utilizing the services. specialized fields.

No separate people for different areas. Same

persons will handle recruitment, training, and

employee appraisal

Different people for different areas who are

skilled in specific areas

Focuses mainly on employee relations Focuses on partnerships with internal and

external customers

Short term goals Long term goals

Has staff specialists Has line managers

Table-1: Difference Matrix HRM & SHRM Practices

Intermediary factors between SHRM practices and firm performance

The researchers have proposed to consider studying intermediate linkages between SHRM

practices and organizational performance in order to address theoretical developments (Ferris et al

1998).

Most of the researchers are of the view that SHRM practices do not directly affect firms

performance; instead they influence resources of the firm like human resource in terms of their

behavior, skills and potential etc, which finally lead to performance (Wright et al 1994; Delery 1998).

Some believe in existence of mediating variables between HRM practices and firms performance and

few have measured these variables and highlighted their significance (Huselid 1995; Fey et al 2000;

Guest 2001; Boselie et al 2001; Paul and Anantharaman 2003).

Abdulkadir and Adedoyin (2011) suggested that with a view to gain a competitive advantage

the firms should endeavor to recruit, train, motivate and sustain an enthusiastic workforce as per their

goals and vision.

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Motivation

Motivation is one of the intermediary factors HRM practices and firms performance, which

will be studied as one of the variables. Literature is interspersed with various concepts of motivation

like mentioned in ensuing paragraphs.

Corporate cultures are developed over time by the influential groups in a firm which results in

deep set of beliefs among the employees about how things should be done, for example the practices

of rewarding, monitoring and controlling manpower, the methods of exercising authority, the degree

of formalization required, the extent of forward planning, attitudes to work hours and dress code are

all part of the culture of an organization. This variety of cultures, norms and behavioral patterns are

embedded in value systems and vary from organizations to organization (Handy 1985). Some of these

systems (e.g reward system) are created to motivate the employees.

Motivation at work can be divided into two main categories: Intrinsic and extrinsic

motivators (Armstrong & Murlis 1996). Intrinsic motivation is self generated and can take form as

satisfaction when a problem has been solved. Extrinsic motivation is what is done to and for people to

motivate them (e.g. performance related pay) (Armstrong & Murlis 1996).

Motivational Theories

There are a number of motivational theories, which attempt to explain motivation. Normally to

understand motivational theories it is important to have an understanding of internal cognitive process-

that is, what people feel and how they think (Mullins, 2002).

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Process theories explain how a particular behavior starts, develops over time and sustains itself.

The process theories deal with relationship of different variables along with their influence on

behaviors (Analoui, 2000).

Cognitive theories of motivation deal with two different approaches: content theories and

process theories. Content theories elucidate as to how people are motivated while at work. The need,

incentives and the work itself are considered as important factors in these theories and in turn

contribute towards job satisfaction (Tosi and Gomez-Mejia, 1994).

Explaining the process approach theories, Analoui (2000) is of the opinion that this approach

provide a basis for better understanding of the interactions involved and provide an insight into what

they do at work.

Maslow's Hierarchy of Needs Theory of (1954) pointed out that individuals have five sets of

needs that may be arranged in a hierarchy. Motivation is held to rise from striving to satisfy these

needs and only when the lower-level needs are satisfied are individuals motivated by striving to satisfy

higher needs (Molander and Winterton, 1994). Basic idea of Maslows theory was that people want

more and what they want dependents on what they already possess.

Reward Management

Reward management contributes toward motivation. Gunnigle et al (1997), considers reward

management as a critical factor of HRM strategies, while attracting, developing and sustaining the

workforce and also influencing performance and behavior at work.

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Reward is referred to as all forms of financial returns and tangible services and benefits

employees receive as part of an employment relationship (Bratton and Gold, 1999:p 239). Pennings

(1991) also has the same view about the reward systems: The beneficiaries of strategic aspect have a

substantial impact on the long term results of their firm. Reward management can be used to motivate

employees if the rewards are as per the wishes of employees.

Traditionally managers are responsible for the rewards in an organization for attracting,

retaining and motivating people in the desired direction (Mckenna, 2000: 555). Spitzer (1996)

highlights that Power Reward is more efficient because it recognizes the limitations of money, and

supplements it with other, more cost effective forms of rewards.

Direct Relationship of SHRM with Motivation

There exists scarcity of literature on direct relationship between SHRM practices with

motivation, however, some literature on SHRM practices with influence on motivation have been

found and referred to in the ensuing paragraphs.

It is a known fact that in order to seek optimum efficiency of the employees there will always

be a requirement to take concrete steps for motivating these individuals for performance of their job;

otherwise a partial efficiency is likely to be experienced. Well structured SHRM practices in the

organizations can affect the employee motivation in different ways, like; alignment of business and

HR strategies, formulation of clear strategic mission, refined grievances handling, information sharing

program, job analysis, performance evaluation, refined recruitment procedures, profit sharing through

bonuses, monitoring and development of attitude, skill based compensation, incentive pays, skill

development and training etc. (Osterman, 1987; Ichniowski, 1986; Gerhart & Milkovinch, 1992;

Ichniowski et al, 1994; Wagner, 1994; Levine, 1995; Delaney and Huselid, 1996).

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Theoretical Framework

Model

SHRM Practices have been taken as independent variable whereas Employee Motivation is a

dependant variable in the model. The model aims to explore and investigate the effect of between

SHRM practices on employee motivation.

Figure: 1 Model

Hypothesis

Ho: SHRM practices have insignificant impact on employee motivation.

H1: SHRM practices have significant impact on employee motivation.

Methodology

Methodologyused to accomplish this research work is as follows:

Sampling Type

11

SHRM

PracticesEmployeeMotivation

DVIV


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Convenience sampling We are likely to draw sampling frame from Pakistan

Association of Manufacturers Directory.

Modus-Operandi

o Establishment of own SHRM Model with focus on both performance and motivation in

term of their relationship with SHRM Practices

o Survey in industrial triangular area Kahuta Road targeting majority of firm with 100 or

more employees.

Descriptive Survey Design

o Adopted instrument of Questionnaire using appropriate scales at Annex A

o Refinement of the questionnaire through pilot study, if required Validity test

o Cross-sectional data.

Measurement of Variables

To measure the relationship between SHRM practices and employee motivation we have

adopted two instruments from the study of Mark A Huselid (1995) and combined both the

questionnaires to make them relevant to our study.

The first questionnaire adopted was used by Huselid for a survey in 1994 consisting of three

factors: HR Strategies; Employee Motivation and Selection & Development with 0.75, 0.75 & 0.45

values of cronbach alpha, respectively. The second questionnaire used was also for a survey by

Huselid in 1992 which had two factors: Employee skills and Organizational structure; with nine items

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scoring 0.67 for cronbach alpha and the second factor was Employee Motivation which had four

items and cronbach Alpha as 0.66.

After consulting the expert opinions two above mentioned questionnaires were merged and

selected items were slightly improved to configure it and bring it in conformity with the requirements

of this study. Mr Huselid was contacted through email and his guidance was sought before adopting

and improving the original instruments. With a view to ensure reliability and validity, the original

context of each item was maintained while improving the items of the questionnaires.

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SHRM

Practice

s

HR

Strategies

Selection

&

Developm

ent

Employe

eMotivati

on

Performance evaluationInternal adjustment for non entrylevel jobsRefined Recruitment proceduresSharing of Profits (Bonuses)Monitoring of employee AttitudeSkill based CompensationSkill developmentFrequency of Training

Performance Appraisal

Performance based

incentives

Merit based promotions

Performance base

compensation

Strat Planning ProcessAlignment of business and HR stratsClear Strat Mission & its communicationGrievances handling / Complaint resolutionSystem

Information Sharing Program

Job Analysis

Incentives


Operationalization of the variables

Figure 2 operationalises and exhibits the factors and their sub-factors which will determine the

relationship between the variables from the collected data used for regression through SPSS.

Figure:2 Factors and their sub-factors to measure relationship between the variables

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Pilot Study

Prior to actual research study a pilot testing of the research questionnaire was carried out on 60

respondents of various production firms, in order to determine the validity and reliability of research

instrument. The questionnaire was distributed to 9 first line managers, 35 Middle level managers, and

16 members of top level management of 5 industries. On the basis of feedback received from

respondents, the researchers modified the instrument. The study confirmed its validity by showing

encouraging results. The pilot study was conducted in twin cities industrial triangular area near Kahuta

Islamabad.

Data Analysis

Keeping in view the objectives of the study, the data obtained through questionnaire was

compiled, evaluated, analyzed and interpreted. In order to analyze results researchers sought assistance

of SPSS software. The scoring procedure for likert scale was used and rating was as under

1 = Strongly Agree, 2 = Agree, 3 = Neutral 4 = Disagree, 5 = Strongly Disagree

Reliability Test. While testing the reliability of the instrument with 23 items, the initial results

showed value of .355 cronbach alpha which was inappropriate. Therefore, first iteration of the data

was conducted removing the item relating to age from demographic part which resulted in a very

heartening value ofcronbach alpha as .711 with 22 items. Results of reliability are at Annex B.

Factor Analysis. Separate factor analysis was carried out for both the variables.

Results for SHRM Practices. The initial results of factor analysis of 14 items relating to SHRM

practices are shown in the table.

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Variabl

es

No

of

item

s

Correlati

on

KM

O-

Tabl

e

Barllet

's Test

of

Spher

e

Anti-

image

correlati

on

(Diagonal

Values)

Communalit

ies Initials

Communalit

ies

Extraction

Total

Varianc

e

Explain

ed

SHRM-

Practic

es

14 1.00 0.54

9

.002 All >.5

except;

HRS2

(.452) &

HRS5

(.306)

= 1.00 All >.5 65.99%

Iteration 2 was performed deleting two items i.e. HRS2 & HRS5. The results showed improvement as

under:

Variabl

es

No

of

item

s

Correlati

on

KM

O-

Tabl

e

Barllet

's Test

of

Spher

e

Anti-

image

correlati

on

(Diagonal

Values)

Communalit

ies Initials

Communalit

ies

Extraction

Total

Varianc

e

Explain

ed

SHRM-

Practic

es

12 1.00 0.58

4

.000

Sig

All >.5 = 1.00 All >.5

except HRS4

(0.497)

65.60%

Since these results did not show any significant error and it was a pilot study therefore further iteration

was avoided.

Results for Employee Motivation. The initial results of factor analysis of 5 items relating to

employee motivation are shown in the table.

Variabl

es

No

of

item

s

Correlati

on

KM

O-

Tabl

e

Barllet

's Test

of

Spher

e

Anti-

image

correlati

on

(Diagonal

Communalit

ies Initials

Communalit

ies

Extraction

Total

Varianc

e

Explain

ed

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Values)

SHRM-

Practic

es

5 1.00 0.53

1

.000 All >.5

except;

EM18

(.471)

= 1.00 All >.5

except

EM15

(0,447)

&EM19

(0,456)

60.87%

Since these results did not show any significant error and it was a pilot study therefore iteration was

avoided.

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Annex A

QUESTIONNAIRE

SHRM PRACTICES AND EMPLOYEE MOTIVATION SURVEY

Please spare a few minutes to respond to following questions. We assure you of complete anonymity. No needto mention names.

Part1

Part 2

Please check the appropriate box while attempting following questions:

Question Statement 1 2 3 4 5

STRATEGIC HRM PRACTICES

HR Strategies

1 The HR department of your firm is involved in your firm's strategic planning

process.

2. The business and HR strategies of your firm are aligned.

3. Your firm has a clear strategic mission that is well communicated and understood

at every level throughout the firm.

4. The workforce in your firm has access to a formal grievance procedure and /orcomplaint resolution system.

5. The workforce in your firm is included in a formal information sharing program

(e.g., newsletters etc).

6. The job ofworkforce in your firm is subjected to a formaljob

analysis.

Demographics

Age: Gender: Male .. Female ..

Marital Status: Single:, Married:....,Widowed:, Divorced..,

Designation: First Line Manager..

Middle manager...

Top Management.

22

1 = Strongly Disagree, 2 = Disagree, 3 = Neutral 4 = Agree, 5 = Strongly Agree


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Selection and Development

7. The workforce in your firm is eligible for cash bonuses based on individual

performance or company-wide productivity or profitability.

8. Non-entry level jobs were filled from within the firm in recent years.

9. The workforce is administered an aptitude, skill or work sample test prior to

employment.

10. The firm regularly sharesprofits with the employees in shape of bonuses in your

firm.

11. The workforce in your firm is regularly administered through attitude surveys.

12. The workforce compensation or its any part is determined by a skill-based

compensation plan in your firm.

13. Training efforts in your firm are devoted to skill enhancement.

14. How many hours of training per year are typically received

by an experienced employee? Please check either of the following

1) ) More than72 hours, 2) Up to 72 hours, 3) Up to 48 hours 4) Up to

24 hours, 5) Not imparted at all.

EMPLOYEE MOTIVATION

15. The workforce has access to company incentive plans, profit-sharing plans, and/or

gain-sharing plans.

16. Formal performance appraisal oftheemployees is conducted in your firm.

17. The workforce merit increase orother incentive pay is determined by a

performance appraisal.

18. The workforce promotion is based primarily on merit.

19. As a result of a performance review in your firm, a lower performer expects a

change in total compensation.

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Annex B

Reliability & Factor Analysis

RELIABILITY ANALYSIS

Reliability Statistics

Cronbach'sAlpha N of Items

.355 23

Item-Total Statistics

Scale Mean

if ItemDeleted

ScaleVariance if

ItemDeleted

Corrected

Item-TotalCorrelation

Cronbach'sAlpha if

ItemDeleted

Gender 110.1000 157.549 -.246 .366Age 79.6333 86.846 -.039 .711

Desig 109.1667 151.463 .217 .341

MariStat

109.3500 154.469 .056 .353

HRS1 107.3000 150.349 .130 .342

HRS2 107.1833 147.169 .241 .327HRS3 107.5500 144.997 .295 .317

HRS4 107.3500 150.096 .119 .342

HRS5 107.6167 151.698 .063 .350HRS6 106.7333 151.148 .195 .340

HRS7 107.2500 140.903 .472 .295

SHRS8 107.0833 144.145 .447 .309

SHRS9 107.5833 150.145 .112 .343SHRS1

0107.4000 149.498 .152 .338

SHRS11

107.2667 149.555 .152 .339

SHRS1

2107.3833 150.918 .099 .346

SHRS13

107.9667 153.321 .005 .359

SHRS1

4107.1500 143.282 .398 .307

EM15 107.6667 147.311 .169 .333

EM16 107.5833 148.213 .178 .334

EM17 107.2000 144.671 .352 .314EM18 107.3667 148.846 .149 .338

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Item-Total Statistics

78.4500 87.167 -.065 .716

77.5167 86.220 .018 .715

77.7000 87.366 -.086 .717

75.6500 80.570 .242 .704

75.5333 80.321 .249 .703

75.9000 79.515 .264 .702

75.7000 78.620 .302 .698

75.9667 83.389 .079 .719

75.0833 81.671 .342 .699

75.6000 75.431 .498 .681

75.4333 80.928 .292 .700

75.9333 76.572 .386 .690

75.7500 81.377 .191 .708

75.6167 77.291 .397 .690

75.7333 81.046 .201 .707

76.3167 80.695 .179 .711

75.5000 77.712 .396 .690

76.0167 77.881 .271 .702

75.9333 78.572 .297 .699

75.5500 79.472 .311 .69875.7167 75.766 .412 .687

75.7000 77.231 .391 .690

Gender

Desig

MariStat

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

EM15

EM16

EM17EM18

EM19

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Reliability Statistics

.711 22

Cronbach's

Alpha N of Items


EM19 107.3500 147.113 .234 .327

After Iteration 1

25


26/42


Factor Analysis

Descriptive Statistics

3.9833 1.14228 60

4.1000 1.16007 60

3.7333 1.23325 60

3.9333 1.24692 60

3.6667 1.27115 60

4.5500 .74618 60

4.0333 1.16396 60

4.2000 .95314 60

3.7000 1.27957 60

3.8833 1.18023 60

4.0167 1.17158 60

3.9000 1.20310 60

3.3167 1.34658 60

4.1333 1.12697 60

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

Mean Std. Deviation Analysis N

Correlation Matrix

1.000 .129 .261 -.025 -.039 .110 .064 -.028 .298 .200 .228 -.125 .081

.129 1.000 .019 -.007 -.011 .131 .136 .304 .226 -.053 .061 .056 .012 -

.261 .019 1.000 .176 .072 -.022 .113 .032 .110 .200 .156 .153 .052

-.025 -.007 .176 1.000 .050 .350 .282 .197 .104 .294 .163 .233 .033

-.039 -.011 .072 .050 1.000 .125 .076 -.028 -.063 .019 .106 .033 -.116 -

.110 .131 -.022 .350 .125 1.000 .115 .319 .229 .074 .222 .157 .009

.064 .136 .113 .282 .076 .115 1.000 .376 .109 .287 .223 .317 .069

-.028 .304 .032 .197 -.028 .319 .376 1.000 -.047 -.039 .027 .151 .055

.298 .226 .110 .104 -.063 .229 .109 -.047 1.000 .055 .196 -.130 .312

.200 -.053 .200 .294 .019 .074 .287 -.039 .055 1.000 .259 .207 .013

.228 .061 .156 .163 .106 .222 .223 .027 .196 .259 1.000 .338 .190

-.125 .056 .153 .233 .033 .157 .317 .151 -.130 .207 .338 1.000 -.043

.081 .012 .052 .033 -.116 .009 .069 .055 .312 .013 .190 -.043 1.000

.081 -.023 .294 .320 -.063 .052 .449 .259 .240 .063 .165 .010 .128 1

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

CorrelationHRS1 HRS2 HRS3 HRS4 HRS5 HRS6 HRS7 SHRS8 SHRS9 SHRS10 SHRS11 SHRS12 SHRS13 SHR

KMO and Bartlett's Test

.549

134.941

91

.002

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

Approx. Chi-Square

df

Sig.

Bartlett's Test of

Sphericity

26


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Anti-image Matrices

.745 -.062 -.201 .094 .076 -.076 -.039 .021 -.112 -.118 -.141 .166 .034 .035

-.062 .792 -.017 .022 .005 .038 -.046 -.226 -.201 .066 -.021 -.030 .077 .126

-.201 -.017 .768 -.057 -.117 .098 .103 -.014 -.015 -.092 .023 -.150 -.017 -.189

.094 .022 -.057 .686 -.011 -.213 -.016 -.008 -.006 -.181 .030 -.073 -.007 -.153

.076 .005 -.117 -.011 .906 -.112 -.113 .068 .054 .049 -.106 .087 .094 .093

-.076 .038 .098 -.213 -.112 .669 .069 -.225 -.178 .021 -.095 -.062 .076 .073

-.039 -.046 .103 -.016 -.113 .069 .567 -.166 -.040 -.173 .000 -.176 -.008 -.226

.021 -.226 -.014 -.008 .068 -.225 -.166 .623 .176 .080 .063 -.002 -.085 -.104

-.112 -.201 -.015 -.006 .054 -.178 -.040 .176 .650 .012 -.039 .104 -.214 -.122

-.118 .066 -.092 -.181 .049 .021 -.173 .080 .012 .743 -.102 -.020 .025 .112

-.141 -.021 .023 .030 -.106 -.095 .000 .063 -.039 -.102 .703 -.233 -.144 -.088

.166 -.030 -.150 -.073 .087 -.062 -.176 -.002 .104 -.020 -.233 .667 .048 .130

.034 .077 -.017 -.007 .094 .076 -.008 -.085 -.214 .025 -.144 .048 .844 .019

.035 .126 -.189 -.153 .093 .073 -.226 -.104 -.122 .112 -.088 .130 .019 .582

.539a -.081 -.266 .132 .093 -.108 -.059 .030 -.161 -.158 -.195 .235 .042 .054

-.081 .452a -.022 .030 .005 .052 -.069 -.322 -.280 .086 -.028 -.042 .095 .185

-.266 -.022 .522a -.079 -.141 .136 .157 -.020 -.021 -.122 .031 -.210 -.021 -.283

.132 .030 -.079 .681a -.014 -.315 -.026 -.013 -.009 -.253 .044 -.108 -.010 -.242

.093 .005 -.141 -.014 .306a -.144 -.157 .090 .071 .059 -.132 .112 .108 .128

-.108 .052 .136 -.315 -.144 .503a .112 -.348 -.270 .030 -.139 -.093 .101 .117

-.059 -.069 .157 -.026 -.157 .112 .611a -.280 -.067 -.266 .000 -.286 -.012 -.394

.030 -.322 -.020 -.013 .090 -.348 -.280 .510a .277 .118 .095 -.002 -.118 -.172

-.161 -.280 -.021 -.009 .071 -.270 -.067 .277 .518a .017 -.057 .158 -.288 -.199

-.158 .086 -.122 -.253 .059 .030 -.266 .118 .017 .599a -.141 -.028 .031 .170

-.195 -.028 .031 .044 -.132 -.139 .000 .095 -.057 -.141 .641a -.340 -.187 -.137

.235 -.042 -.210 -.108 .112 -.093 -.286 -.002 .158 -.028 -.340 .510a .064 .209

.042 .095 -.021 -.010 .108 .101 -.012 -.118 -.288 .031 -.187 .064 .518a .027

.054 .185 -.283 -.242 .128 .117 -.394 -.172 -.199 .170 -.137 .209 .027 .524

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

Anti-image Covariance

Anti-image Correlation

HRS1 HRS2 HRS3 HRS4 HRS5 HRS6 HRS7 SHRS8 SHRS9 SHRS10 SHRS11 SHRS12 SHRS13 SHRS14

Measures of Sampling Adequacy(MSA)a.

27


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Communalities

1.000 .673

1.000 .749

1.000 .596

1.000 .629

1.000 .530

1.000 .756

1.000 .619

1.000 .719

1.000 .688

1.000 .511

1.000 .624

1.000 .737

1.000 .635

1.000 .773

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

Initial Extraction

Extraction Method: Principal Component Analysis.

Total Variance Explained

2.788 19.912 19.912 2.788 19.912 19.912 1.844 13.169 13

1.642 11.731 31.643 1.642 11.731 31.643 1.694 12.099 25

1.452 10.370 42.013 1.452 10.370 42.013 1.520 10.856 36

1.253 8.951 50.964 1.253 8.951 50.964 1.416 10.113 46

1.066 7.614 58.577 1.066 7.614 58.577 1.398 9.983 56

1.039 7.419 65.996 1.039 7.419 65.996 1.369 9.776 65

.936 6.682 72.678

.809 5.779 78.457

.723 5.162 83.619

.697 4.976 88.596

.519 3.706 92.302

.456 3.256 95.558

.321 2.292 97.850

.301 2.150 100.000

Component

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulativ

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loading


28


29/42


Component Matrixa

.308 .590 -.171 .239 .371 -.077

.248 .121 .552 .336 .329 -.385

.414 .173 -.375 -.194 .466 -.002

.594 -.260 -.064 -.091 -.169 .409

.076 -.247 -.178 .409 .275 .435

.470 -.111 .296 .496 -.182 .396

.671 -.239 .084 -.267 .089 -.160

.448 -.307 .620 -.101 .146 -.088

.391 .666 .175 .118 -.138 .165

.453 -.051 -.533 .069 -.015 -.117

.558 .097 -.292 .323 -.257 -.219

.425 -.517 -.209 .152 -.185 -.433

.237 .473 .104 -.165 -.551 -.117

.569 .099 .086 -.608 .114 .222

HRS1

HRS2

HRS3

HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

1 2 3 4 5 6

Component


6 components extracted.a.

Rotated Component Matrixa

-.059 .047 .792 .143 .134 .043

-.084 .011 .203 .040 .835 .039

.397 .170 .601 -.167 -.089 -.114

.542 .245 -.076 .028 -.150 .496

-.068 .022 .162 -.470 -.107 .516

.059 .113 -.045 .114 .235 .819

.632 .378 .017 .008 .275 .013

.470 .015 -.219 -.035 .651 .157

.076 -.120 .434 .616 .106 .298

.158 .591 .294 -.033 -.214 .052

-.019 .658 .243 .283 .022 .227

.098 .799 -.218 -.127 .159 .006

.075 .077 -.005 .787 -.050 -.035

.841 -.072 .162 .183 -.024 -.002

HRS1

HRS2

HRS3HRS4

HRS5

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

1 2 3 4 5 6

Component


Rotation Method: Varimax with Kaiser Normalization.

Rotation converged in 7 iterations.a.

29


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Component Transformation Matrix

.621 .521 .301 .226 .251 .371

-.179 -.334 .650 .646 -.052 -.116

.103 -.485 -.353 .221 .746 .157

-.701 .250 .183 -.124 .262 .573

.158 -.263 .573 -.673 .313 -.163

.234 -.500 .012 -.120 -.460 .685

Component1

2

3

4

5

6

1 2 3 4 5 6



After Iteration 2

Variable: SHRM Practices


3.9833 1.14228 60

3.7333 1.23325 60

3.9333 1.24692 60

4.5500 .74618 60

4.0333 1.16396 60

4.2000 .95314 60

3.7000 1.27957 60

3.8833 1.18023 60

4.0167 1.17158 60

3.9000 1.20310 60

3.3167 1.34658 60

4.1333 1.12697 60

HRS1

HRS3

HRS4

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14


Correlation Matrix

1.000 .261 -.025 .110 .064 -.028 .298 .200 .228 -.125 .081 .081

.261 1.000 .176 -.022 .113 .032 .110 .200 .156 .153 .052 .294

-.025 .176 1.000 .350 .282 .197 .104 .294 .163 .233 .033 .320

.110 -.022 .350 1.000 .115 .319 .229 .074 .222 .157 .009 .052

.064 .113 .282 .115 1.000 .376 .109 .287 .223 .317 .069 .449

-.028 .032 .197 .319 .376 1.000 -.047 -.039 .027 .151 .055 .259

.298 .110 .104 .229 .109 -.047 1.000 .055 .196 -.130 .312 .240

.200 .200 .294 .074 .287 -.039 .055 1.000 .259 .207 .013 .063

.228 .156 .163 .222 .223 .027 .196 .259 1.000 .338 .190 .165

-.125 .153 .233 .157 .317 .151 -.130 .207 .338 1.000 -.043 .010

.081 .052 .033 .009 .069 .055 .312 .013 .190 -.043 1.000 .128

.081 .294 .320 .052 .449 .259 .240 .063 .165 .010 .128 1.000

HRS1

HRS3

HRS4

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

Correlation

HRS1 HRS3 HRS4 HRS6 HRS7 SHRS8 SHRS9 SHRS10 SHRS11 SHRS12 SHRS13 SHRS14

30


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.584

118.665

66

.000


Adequacy.

Approx. Chi-Square

df

Sig.

Bartlett's Test ofSphericity

Anti-image Matrices

.757 -.200 .098 -.066 -.034 -.003 -.147 -.120 -.139 .160 .033 .0

-.200 .784 -.059 .088 .092 -.012 -.013 -.087 .009 -.144 -.003 -.1

.098 -.059 .687 -.221 -.017 -.001 .001 -.184 .030 -.072 -.009 -.1

-.066 .088 -.221 .685 .061 -.237 -.181 .025 -.112 -.052 .088 .0

-.034 .092 -.017 .061 .584 -.198 -.051 -.170 -.015 -.175 .008 -.2

-.003 -.012 -.001 -.237 -.198 .702 .141 .109 .074 -.019 -.081 -.0

-.147 -.013 .001 -.181 -.051 .141 .709 .028 -.042 .101 -.222 -.1

-.120 -.087 -.184 .025 -.170 .109 .028 .752 -.098 -.023 .014 .1

-.139 .009 .030 -.112 -.015 .074 -.042 -.098 .716 -.231 -.136 -.0

.160 -.144 -.072 -.052 -.175 -.019 .101 -.023 -.231 .677 .044 .1

.033 -.003 -.009 .088 .008 -.081 -.222 .014 -.136 .044 .862 -.0

.040 -.188 -.164 .085 -.225 -.089 -.110 .103 -.079 .135 -.003 .6

.538a -.260 .136 -.092 -.051 -.005 -.200 -.159 -.188 .224 .041 .0

-.260 .565a -.081 .120 .136 -.016 -.017 -.113 .012 -.198 -.004 -.2

.136 -.081 .670a -.322 -.026 -.002 .001 -.256 .043 -.106 -.011 -.2

-.092 .120 -.322 .502a .096 -.342 -.259 .034 -.159 -.076 .114 .1

-.051 .136 -.026 .096 .626a -.310 -.079 -.256 -.023 -.278 .012 -.3

-.005 -.016 -.002 -.342 -.310 .547a .200 .150 .105 -.028 -.104 -.1

-.200 -.017 .001 -.259 -.079 .200 .575a .039 -.058 .146 -.285 -.1

-.159 -.113 -.256 .034 -.256 .150 .039 .611a -.133 -.032 .017 .1

-.188 .012 .043 -.159 -.023 .105 -.058 -.133 .660a -.332 -.173 -.1

.224 -.198 -.106 -.076 -.278 -.028 .146 -.032 -.332 .534a .057 .2

.041 -.004 -.011 .114 .012 -.104 -.285 .017 -.173 .057 .548a -.0

.059 -.271 -.253 .130 -.376 -.135 -.167 .152 -.120 .210 -.004 .5

HRS1

HRS3

HRS4

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

HRS1

HRS3

HRS4

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14



HRS1 HRS3 HRS4 HRS6 HRS7 SHRS8 SHRS9 SHRS10 SHRS11 SHRS12 SHRS13 SHRS1


31


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Communalities

1.000 .637

1.000 .573

1.000 .497

1.000 .849

1.000 .627

1.000 .621

1.000 .664

1.000 .551

1.000 .654

1.000 .719

1.000 .735

1.000 .745

HRS1

HRS3

HRS4

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

Initial Extraction



2.745 22.875 22.875 2.745 22.875 22.875 1.874 15.614 15.614

1.618 13.482 36.357 1.618 13.482 36.357 1.662 13.846 29.461

1.326 11.047 47.404 1.326 11.047 47.404 1.538 12.815 42.276

1.173 9.776 57.181 1.173 9.776 57.181 1.412 11.767 54.043

1.011 8.422 65.603 1.011 8.422 65.603 1.387 11.560 65.603

.877 7.305 72.908

.819 6.822 79.730

.708 5.901 85.630

.569 4.744 90.375

.460 3.831 94.205

.368 3.064 97.269

.328 2.731 100.000

Component

1

2

3

4

5

6

7

8

9

10

11

12

Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings


32


33/42


Component Matrixa

.301 .615 -.183 .044 -.363

.424 .229 -.296 -.459 -.207

.610 -.247 .036 .069 -.241

.455 -.118 .259 .664 -.348

.669 -.260 .104 -.275 .159

.419 -.412 .518 -.011 -.084

.375 .639 .278 .193 .012

.475 .019 -.561 -.002 -.104

.562 .156 -.323 .312 .334

.430 -.496 -.405 .154 .317

.244 .438 .275 .083 .633

.587 .065 .348 -.524 -.006

HRS1

HRS3

HRS4

HRS6

HRS7

SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

1 2 3 4 5

Component




-.084 -.051 .751 .194 .159

.348 .153 .616 -.077 -.207

.430 .284 .158 -.116 .439

.043 .111 .031 .073 .910

.704 .350 .008 .077 .055

.605 -.038 -.272 -.032 .422

.067 -.149 .385 .645 .270

.061 .566 .461 -.116 .035

.001 .650 .195 .413 .150

.154 .801 -.194 -.107 .066

.107 .067 -.087 .835 -.115

.808 -.077 .224 .183 -.047

HRS1

HRS3

HRS4

HRS6

HRS7SHRS8

SHRS9

SHRS10

SHRS11

SHRS12

SHRS13

SHRS14

1 2 3 4 5

Component




33


34/42



.638 .505 .360 .259 .376

-.277 -.316 .635 .630 -.150

.421 -.665 -.398 .332 .332

-.582 .227 -.203 .233 .717

.008 .388 -.516 .609 -.461

Component1

2

3

4

5

1 2 3 4 5



Variable: Employee Motivation

Factor Analysis


3.6167 1.43906 60

3.7000 1.26625 60

4.0833 1.10916 60

3.9167 1.30568 60

3.9333 1.19131 60

EM15

EM16

EM17

EM18

EM19


Correlation Matrix

1.000 .168 .339 .073 .163

.168 1.000 .187 .436 .099

.339 .187 1.000 .017 .376

.073 .436 .017 1.000 .203

.163 .099 .376 .203 1.000

EM15

EM16

EM17

EM18

EM19

Correlation EM15 EM16 EM17 EM18 EM19


.531

33.463

10

.000


Adequacy.

Approx. Chi-Square

df

Sig.

Bartlett's Test of

Sphericity

34


35/42


Anti-image Matrices

.872 -.077 -.230 -.013 -.028

-.077 .767 -.133 -.338 .058

-.230 -.133 .750 .114 -.282

-.013 -.338 .114 .766 -.175

-.028 .058 -.282 -.175 .815

.657a -.094 -.285 -.016 -.033

-.094 .524a -.175 -.441 .074

-.285 -.175 .524a .150 -.361

-.016 -.441 .150 .471a -.221

-.033 .074 -.361 -.221 .541a

EM15

EM16

EM17

EM18

EM19

EM15

EM16

EM17

EM18

EM19



EM15 EM16 EM17 EM18 EM19


Communalities

1.000 .447

1.000 .680

1.000 .701

1.000 .759

1.000 .456

EM15

EM16

EM17

EM18

EM19

Initial Extraction



1.830 36.594 36.594 1.830 36.594 36.594 1.601 32.028 32.028

1.214 24.282 60.876 1.214 24.282 60.876 1.442 28.848 60.876

.868 17.353 78.229

.641 12.813 91.042

.448 8.958 100.000

Component1

2

3

4

5

Total % o f Var iance Cumula tive % Total % o f Var iance Cumula tive % Total % o f Var iance Cumula tive %

Ini tial E igenva lues Ext ract ion Sums o f Squared Loadings Rotat ion Sums o f Squared Loadings

Extraction Method: Principal Componen t Analysis.

35


36/42


Component Matrixa

.567 -.355

.624 .539

.664 -.510

.542 .682

.620 -.269

EM15

EM16

EM17

EM18

EM19

1 2

Component




.666 .064

.166 .808

.837 8.74E-005

.015 .871

.655 .164

EM15EM16

EM17

EM18

EM19

1 2

Component





.793 .609

-.609 .793

Component

1

2

1 2



---------END--------

36


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SHRM PRACTICES AND EMPLOYEES MOTIVATION 37


38/42



39/42



40/42


References

40


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ABDULKADIR, D. S., & ADEDOYIN, S. I. INFLUENCES OF FIRM SIZE, AGE ANDORGANIZATIONAL CLIMATE ON THE ADOPTION OF STRATEGIC HUMANRESOURCE MANAGEMENT PRACTICES.

Analoui, F., & Karami, A. (2002). How chief executives perception of theenvironment impacts on company performance.Journal of ManagementDevelopment, 21(4), 290-305.

Becker, B. E., & Huselid, M. A. (1992). The incentive effects of tournamentcompensation systems.Administrative Science Quarterly, 336-350.

Bratton, J. (1999). The human resource management phenomenon.J. Bratton &

J. Gold. Human Resource Management-Theory and Practice, 4-36.Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource

management practices on perceptions of organizational performance.Academy of management journal, 39(4), 949-969.

Delery, J. E. (1998). Issues of fit in strategic human resource management:Implications for research. Human resource management review.

Dimba, B., KObonyo, P., & Kiraka, R. (2008). THE EFFECT OF STRATEGICHUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONALPERFORMANCE OF MANUFACTURING MULTINATIONAL COMPANIES INKENYA: THE MEDIATING ROLE OF EMPLOYEE MOTIVATION: StrathmoreUniversity, Faculty of Commerce.

Gerhart, B., & Milkovich, G. T. (1992). Employee compensation: Research and

practice: Consulting Psychologists Press.Glen, J. D. (1994).An introduction to the microstructure of emerging markets:

World Bank Publications.Guest, D. E. (1997). Human resource management and performance: a review

and research agenda. International Journal of Human ResourceManagement, 8(3), 263-276.

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