Atanu Talukdar, Research Scholar, Pacific University, Udaipur, Rajasthan(India)

Transcription

1 IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: Impact of Human Resource Practices on Organizational Culture in Indian Private Universities of Rajasthan Atanu Talukdar, Research Scholar, Pacific University, Udaipur, Rajasthan(India) Abstract Success and failure of an organization heavily depends on its culture and good HR policy. Today market for private universities is very competitive so organizational culture and HR policy of the private university has a great importance. In developing countries like China & USA lot of research has been conducted on organizational culture. But it is still neglected in developing countries like India & Pakistan. So it is urgent to know existing HR policy and culture of private universities at the same time it is important to know the ideal policy and And at the end what HR policy should be adopted to improve organizational culture and organizational effectiveness of private universities. Here we are examining the effect of human resource policies on organizational culture in private universities of India. Data was collected through survey method from faculties of private universities of Rajasthan. Statistical analysis shows that there is a strong correlation between human resource policies and Keyword : Organizational Culture, HR Policy, Private University I. INTRODUCTION Now-a-days human resource has gained a lot of importance in any university. Previously human resource was very neglected factor in the university. But now it is the most important input. If human resource is used effectively and efficiently remarkable change in organizational effectiveness of the university happens. From this perspective, human resource is superior to other tangible and intangible assets. So, universities have formed people-oriented departments to manage human resources in the best way. This results in improved employee performance which leads to better organizational performance. Good human resource policies in private universities attract brilliant and passionate faculties. They join the university. Faculties are glued together and form highly performing teams due to cohesive organizational culture of the university. Good universities have meaningful and achievable mission and vision statement. They are value oriented and ethical. Through strategic human resource policies, mission and vision of the university percolate down the organization. It translates organizational mission and vision statement to lot of mission and vision statement of each small team of the university. They get motivated due to performance based human resource policy existing in the University. HR policies and organizational culture have a significant place in the organizational effectiveness of a university. Academic leaders should utilize these two jointly and create a synergy. Through this synergy, mission and vision of the university become easier to achieve. One of the problems we can overcome in the university is low organizational effectiveness. In this study HR policy and organizational culture are referred as a remedy for low organizational effectiveness. In the following sections, the concepts of HR policy, organizational culture and link between them will be explained, followed by the research method and measure and validation. We then analyze and interpret our findings. The present study examines the impact of Orientation and Training and Development, Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working Environment on Organizational Culture. II. LITERATURE REVIEW AND HYPOTHESIS Moderated or interactive relationship model is used to find the impact of HR policies on This model further analysed the impact of HR policies on organization culture. This model implies that moderation or interaction could be said to exist if returns from one practice(e.g. HR policy) varied across the other practice (e.g. organizational culture) at all levels. This means, Hierarchy Culture is determined by the interaction of the predictor (e.g. HR policy). The presence of interaction is established if the cross product coefficient differs significantly from zero. A. HR Policies and Organizational Culture Singh (2009) in his research focused on the positive significant relationship between HRM practices and organizational culture in private sector organizations of India. He found that HRM practices (namely planning, recruitment, selection, training and development, performance evaluation, career management, and rewards) have significant positive relation with organizational culture (self-realization, status enhancement, inventive values and socio-economic support). Singh (2009) attempted to examine the impact of HRD practices namely planning, recruitment, selection, 164

2 performance evaluation, training and development, career management and rewards on the organization culture viz. selfrealization, status enhancement, sulphitic values and socioeconomic support in private and public sector organizations in India. The study revealed that the human resource development practices are a strong predictor of organizational culture both in private sector and public sector organizations in India. Ehtesham, Muhammad, & Muhammad, (2011) empirically tested the relationship between organizational culture and performance management practices in COMST Institute of Information Technology. Each dimension of the organizational cultural trait namely involvement, consistency, adaptability and mission are strongly and positively correlated with performance management practices. Adewale, & Anthonia (2013) examined the impact of organizational culture on the human resource development programme of selected Nigerian Private Universities. He found that there is a close relationship exist between organization culture and recruitment, training, performance management, performance of employees, pay structure and compensation. Chaturvedi (2013) in her research focused on positive relationship between HRM practices and organizational culture in few private sector organizations. It was found that there is a positive and significant relationship exist between HRM practices and variables of organizational culture is operationalized in terms of self-realization, status enhancement, inventive values and social economic support. From the review of literature it was found that HR policy, organizational culture & organizational effectiveness / efficiency are strongly correlated. But most of the studies were done on industrial organization. Very few studies were done on HEIs. And on Indian context there was not a single one. So the objective of the study would be to find out the relation between all the three variables (HR policy, Organizational Culture & Organizational Effectiveness) in reference to Indian private Universities of Rajasthan. For the achievement of the objective the following alternative hypothesis have been formulated. H1: Human Resource policies are positively& significantly correlated with H1a: Orientation and Training and Development as a Human Resource policy is positively& significantly correlated with H1b: Performance Appraisal as a Human Resource policy is positively &significantly correlated with H1c: Compensation and Benefit as a Human Resource policy is positively& significantly correlated with H1d: Recruitment and Selection as a Human Resource policy is positively &significantly correlated with IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: H1e: Working Environment as a Human Resource policy is positively and significantly correlated with H2 : HR policy positively & significantly effects Organizational Culture. H2a: Orientation, Training and Development positively & significantly H2b: Performance Appraisal positively & significantly H2c: Compensation and benefit positively & significantly H2d: Recruitment and Selection positively & significantly H2e: Working Environment positively & significantly III. RESEARCH METHODOLOGY A. Sample Type of Industry plays an important role in determining the desired mode of human resource practices in an organization. It was determined by Jackson, Schuler, & Rivero (1989).As a result of liberalization and deregulation lot of new private universities have cropped up. As on July 2016 out of 759 Universities in India 239 are private Universities. There is very tough competition amongst them. All Indian private universities, are trying their best to improve their performance and preparing to compete in the emerging global market. Survey says growth of Education is best in Rajasthan. This is the logic behind selection of private universities of Rajasthan. A total 600 questionnaires were administered to permanent faculties (Assistant Professor and above rank) working in selected private universities of Rajasthan, India. All were done through personal visits to the organizations. The overall response rate was 45% which is considered as a poor response rate. B. Measures The survey instrument consists of HR policy (30 items) and Organizational Culture (23 items). Human Resource Management Practices It was developed from Human Resource Best Practice Scale (HR-BPS) developed by Ahmed Abbas & Akhtar (2011). It measures Orientation, Training and Development, Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working Environment. All thirty items were measured on a Likert-type scale ranging from (5) highly satisfied to (1) very dissatisfied. Organizational Culture 165

3 IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: It was developed from a scale developed by Paula In table III, the beta coefficient are listed in the Kwan and Allan Walker (2004). It measures Value Culture, column headed Standardized Coefficient. The beta value Authoritarian Culture, Student Culture and Hierarchy Culture. indicates relative influence of the entered variables i.e., OTD All twenty nine items were measured on a Likert-type scale has the greatest influence on Organizational Culture (Beta= ranging from (5) highly satisfied to (1) very dissatisfied ) followed by PA (Beta=0.223), WE (Beta=0.113), RS (Beta=0.108) and CB(Beta=-0.012). C. Validity and Reliability The researcher applied Cronbach s Alpha test (Table I) to the research variable HR policy and OC to judge the reliability. The test result shows that Cronbach s Alpha for HR policy and OC are and respectively. This indicates data reliability as they meet the minimum acceptable level ranging from 0.80 to 0.90 (Salanova & Schaufeli, 2008). Taken together, the results showed that the measures in this study possessed adequate reliability and validity. IV. STATISTICAL ANALYSIS For the purpose of analysis of data descriptive analysis, correlation analysis and multiple regression analysis were used on a standardized data set using SPSS version Table II shows Means, Standard deviations, and Zero order correlations. Correlation analysis was done to investigate the relationship between HR policies and Organizational Culture. As shown in the Table II, Orientation, Training and Development (OTD), has positive and marked degree of correlation with Organizational Culture (r = 0.734, p < 0.01), Performance Appraisal (PA) has positive moderate degree of correlation with Organizational Culture (r= 0.509, p<0.01), Compensation and Benefit (CB) has positive but low degree of correlation with Organizational Culture (r= 0.350, p < 0.01) Recruitment and Selection(RS) has positive moderate degree of correlation with Organizational Culture (r= 0.515, p < 0.01), Working Environment (WE) has positive and moderate degree of correlation with Organizational Culture (r = 0.441, p < 0.01). Thus overall it was found HR policies are significantly correlated with Organizational Culture. With this the proposed hypothesis that Orientation, Training and Development, Performance Appraisal, Compensation and Benefit, Recruitment and Selection and Working Environment is positively related to Organizational Culture is accepted. This means if HR policy is improved definitely there will be significant positive impact on Organizational Culture. Multiple regression was done to investigate the individual contribution of Orientation, Training and Development (OTD), Performance Appraisal (PA),Compensation and Benefit (CB), Recruitment and Selection(RS),Working Environment (WE) on Organizational culture(hypothesis H2 a to H2e). Table III summarizes the result of multiple linear regression analysis and provide the regression equation that could be used for forecast purpose. Cofficient of variable OTD was 0.371, while coefficient of PA was 0.157, coefficient of CB was , coefficient of RS was 0.105, coefficient of WE was R² was equal to This means sixty six percent variance in the dependable variable could be attributed to changes in independent variables (HR policy). F-statistic was found to be , at a significance level of It is concluded that the set of independent variables (OTD, PA, CB, RS and WE) as a whole was contributing to the variance in the dependent variable (Organizational Culture). As shown in the section labeled coefficients, significant levels for coefficients of OTD, PA, RS were found to be significant at 0.01 and for coefficients of CB, WE were not significant (p > 0.05). V. DISCUSSION In the global competitive business scenario, higher education sector has been facing many changing challenges caused by globalization, liberalization, technological advancements and changing customer s technological driven expectations. These challenges have called for extensive search for suitable strategies for the growth and survival of the higher education sector in the changing and turbulent marketplace. In this context, the role of human resource management practices on organizational culture has been studied in the current research paper. The study result proved that Orientation training and development contributes to good organizational culture in the universities (Beta=0.609). In other word, Orientation training and development contributes to the university culture in form of student culture, value culture, authoritarian culture and hierarchy culture. The finding also finds support from the existing practices in the private universities. The researcher, being a faculty member has often experienced that in reputed universities, faculties are introduced to all important functional head of the department first, followed by the different functional head of the university, and lastly to all colleagues. In few other universities, the organization rarely takes faculty Orientation seriously. Often, it is noticed that the faculty members orient themselves slowly with the university people and process, often with their own initiatives. Such kind of system has been instrumental to inefficiency of the faculty members as many times the faculty may not have clarity about the university system and processes. Further, it has been noticed that where as Reputed universities invest substantial time and amount on faculty training and development (e.g. providing Faculty development allowance, sponsoring for FDPs, workshops, conferences, seminars etc.), others neither provide nor encourage faculty members for such kind of training and development programme. Interestingly, it is found that the former category of universities creates a positive organizational culture than the later one. On the basis the above 166

4 findings, we suggest that Faculties should be given a proper orientation programme where rules and regulation of the university will be properly communicated. There should be scope for training and development of the faculties eg. Soft skill training, FDP, training on excel, SPSS should be there in the university. The University should develop an app. It should be properly shared by faculties. There faculties should upload their CV and their current activity. They should express their views and remedies of the current situation. For orientation faculties should be taken to some hill station. Once in a year there should be party where all faculties and staff and their family members should participate. Secondly, the study result proved that Performance appraisal contributes to good organizational culture in the universities (Beta=0.221). In other word, Performance Appraisal contributes to the university culture in form of student culture, value culture, authoritarian culture and hierarchy culture. The finding also finds support from the existing practices in the private universities. The researcher, being a faculty member has often experienced that reputed universities have clear policy for identification of Key Performance Areas(KPA) by allocation of duty at the beginning of the academic year. Often they allow two types of duties-academic and administrative. Faculties are allowed to choose where they want to excel. Performance parameters are clearly defined and justified in both the fields. Faculties are communicated these also after every quarter. At the end of the academic year they are rewarded according to their performance. Research grants from UGC, ICSSR, ICAR and other bodies have a good amount of wieightage in performance appraisal. Paper publication in reputed journals, no of citation, book review has a lot of weightage. His feedback of teaching also plays an important role. Other universities do not follow any such rule. They do not have the concept of area of specialization even. Anybody is teaching any area. Responsibilities are shared on day to day basis. At the end of the academic year it becomes tough to judge who is promoted or demoted for what reason. Thirdly, the result of the study also proved that good Recruitment and selection policy results in good organizational culture in the universities (Beta=0.108). In other word, good recruitment policy contributes to the university culture in form of student culture, value culture, authoritarian culture and hierarchy culture. The result of the study is evident from the facts that in Reputed universities, the vacancy of the concerned post is advertised in two to three national dailies. Applicants are asked to send the CV in a designed format. They have also to send their experience certificates, educational certificates and latest payslip. The applicants are also asked to give reference whom the university can contact if they require. The eligible faculties are called for interview. The concerned faculty has to give presentation on a topic in the area where he/she has applied. During presentation all faculties and interviewees sit.after the presentation in OHP question answer session starts. If the applicant qualifies he goes for the next HR round. In HR round applicants organizational fit is checked. IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: Universities declare the result within three months. The selected applicants are sent appointment letter.but other universities take lowly qualified, teaching oriented faculties who do not have positive attitude and are not habituated to work in professional team. Other universities sometimes advertise and sometimes go through personal link of faculty or staff to find the candidate. Otherwise they go for walk in. It is also found that they club all types of vacancies in the same advertisement. There is hardly any check of knowledge. Universities are mostly concerned in negotiating package. Many a time they do not give appoint letter. Universities generally give them offer letter where term and conditions, package and any other employment related things are not properly clarified. Further, the study result also proved that Compensation and benefits as well as working environment doesn t contribute to the Organizational culture of the private universities of Rajasthan. The result is quite surprising as most of the study has proved that Compensation and benefits as well as working environment plays a critical role in establishing a good We feel that the probable reason for the insignificant contribution are adoption of adhoc and sub standard practices by the private universities of the sample area. For example, when it comes to Salary, most of the universities are lagging behind the benchmarked match salary level, i.e. UGC Pay. Further, the lower contribution of Compensation and benefits can be attributed to the Indian national culture too (Muduli, 2011). For example, it has been proved that Individual based performance pay is not relevant to a highly collectivist culture like India. VI. LIMITATION AND POINTS FOR FUTURE RESEARCH Limitations are part and parcel of any kind of research work. So, the present study is assumed to be not free from limitations. Although adequate precautionary measures have been taken, the study suffers from some limitations. First limitation that could potentially affect the result of the study is the sample size. A total six hundred questionnaires were administered to faculties working in private universities of a Rajasthan. As such, the findings may not be generalized to all Indian Private Universities. Future research may take a broad sample on the basis of which the result can be more generalized. Secondly, in the current research HR policy and OC is measured through a set of questionnaire where faculties were asked to provide operational performance data. However, HR policy can be measured through perceptual performance measures as observed by Combs, Liu, Hall & Ketchen (2006) because good HR policy increase employee KSAs, empower employees to leverage their KSAs, and motivate them to do so, they influence employee discretionary effort, creativity, and productivity (Becker & Gerhart, 1996) which in turn increase operating performance measures such as employee turnover 167

5 and job satisfaction further leading to increased accounting returns and market value (Becker et al., 1996; Huselid, 1995).Therefore, future research may measure HR policy through perceptual performance measures such as financial measures such as profit, productivity, or market returns. Finally, the current study focused on organizational culture of the private higher education sector of India without examining the economic, social and political context. As Delbridge & Keenoy, (2010, p. 801) argue, management practices can only be properly explained in the context of the wider socialeconomic, political and cultural factors. They shape those practices. Thus, future research can be conducted considering the specific economic, social and political context. Table I: RELIABILITY THROUGH CRONBACH'S ALPHA Constructs Cronbach's Alpha Human Resource Management (30) Organizational Culture(23) Variables TABLE III : REGRESSION OF HR POLICY AND ORGANIZATION CULTURE Unstandardized Coefficients B Std. Error Standardized Coefficients Beta Constant ** OTD ** PA ** CB NS RS * WE NS R = R2 = F = ** *p<0.05, ** p < A. a. Dependent Variable : Organizational Culture REFERENCES 1. Abbas., F., & Shehzad, A. (2011). A Developing a Human Resource-Best Practices Scale for Pakistani General Public Sector, Proceedings of 2nd International Conference on Business Management 2. Adewale, O. O., & Anthonia, A. A. (2013). Impact of Organizational Culture on Human Resource Practices: A Study of Selected Nigerian Private Universities. Journal of Competitiveness, 5, 4, Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: performance: Progress and prospects. Academy of management journal, 39(4), Chaturvedi, R. (2013). HRM Practices & Organizational Culture Have Positive Impact: A Study of Few Selected Organizations. International Journal of English Language, Literature and Humanities. 5. Collis, J., Hussey, R., Crowther, D., Lancaster, G., Saunders, M., Lewis, P., & Johnson, P. (2003). Business Research Methods 6. Combs, J., Liu, Y., Hall, S., & Kitchen, D. (2006). How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology, 59, Delbridge, R., & Keenoy, T. (2010). Beyond managerialism? International Journal of Human Resource Management, 21, Ehtesham U. M., Muhammad, T. M., & Muhammad, S. A. (2011). Relationship between Organizational Culture and Performance Management Practices: A Case of University in Pakistan, Journal of Competitiveness, Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of t Sig. management journal, 38(3), Jackson, S. E., Schuler, R. S., & Rivero, J. C. (1989). Organizational characteristics as predictors of personnel practices. Personnel Psychology, 42(4), Kwan, P., & Walker, A. (2004). Validating the competing values model as a representation of organizational culture through inter-institutional comparisons. Organizational Analysis, 12(1), Muduli, A. (2011). Performance Based Reward and National Culture: An Empirical Evidence from Indian Culture. Synergy: Journal of Management, 9,1, Parasuraman, A, Leonard L. B, & Valarie A. Zeithaml. Refinement and reassessment of the SERVQUAL scale. Journal of Retailing 67.4 (1991): Park, J. W., Robertson, R., & Wu, C. L. (2006). Modelling the impact of airline service quality and marketing variables on passengers future behavioural intentions. Transportation Planning and Technology, 29(5), Salanova, M., & Schaufeli, W. B. (2008). A crossnational study of work engagement as a mediator between job resources and proactive behaviour. The International Journal of Human Resource Management, 19(1), Singh, A. K. (2009). HRD Practices and Organization Culture in India. The Indian Journal of Industrial Relations, 5, 2, Singh, A. K. (2009). A study on HRM practices and organizational culture in selected private sector organizations in India, Tenth International Conference 168

6 IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: on UN Millennium Development Goals: Challenges and Perspectives held in Godollo, Hungary, TABLE II: CORRELATION BETWEEN HR POLICIES AND ORGANIZATIONAL CULTURE Mean SD OC OTD PA CB RS WE VC AC SC OC OTD ** PA ** ** CB ** ** ** RS ** ** ** ** WE ** ** ** ** ** VC ** ** ** ** ** ** AC ** ** ** NS ** ** ** SC ** ** ** ** ** ** ** * HC ** ** ** NS NS NS ** ** ** *Correlation is significant at 0.05 level, **Correlation is significant at 0.01 level,***correlation is significant at level 169