Effect of Factors Facilitating Privatization on Human Resource Productivity in Staff of Tejarat Bank

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1 Applied mathematics in Engineering, Management and Technology 3(1) 2015: Effect of Factors Facilitating Privatization on Human Resource Productivity in Staff of Tejarat Bank Neda Nafari 1 *, Mohammad Ali Kargaran Amiri 1 1 Department of Public Administration, Faculty of Management and Social Sciences, North Tehran Branch, Islamic Azad University, Tehran, Iran. *Corresponding Author nedanafari@yahoo.com Abstract Current work was conducted aiming at investigating effect of factors facilitating on human resources in staff of Tejarat It is a correlation type research work using descriptive method. To this end, human resource inventory based on ACHIEVE Model by Hersey and Goldsmith (1980) and Nail s questionnaire (2002) were used. Research statistical population includes experts and directors of Tehran Tejarat Bank s headquarter. Sample size was specified as 259 using Cochran s formula. Following distributing questionnaires, 248 ones were returned to the author. Research findings suggest positive relationship between factors facilitating and human resource in Tejarat Bank s staff. It was found that social attitudes to private benefits, creating an improved economic climate, comprehensive administrative development and support by political leaders among factors have direct positive impact on Tejarat Bank s human resource, while international and local support for peace and stability in the region showed no impact on human resource. Keywords: Factors facilitating, human resource, Tejarat Bank 1.Introduction Human resource in today s competitive world is considered as the generator of the most important organizational asset which can cause change and development in other organizational factors and bring in essential outcomes. If manpower size, modern weapons, strong army, vast territory and extensive groundwater reserves and veto power in international communities were considered as the superiority criteria in the past decades, now power of the countries is dependent on quality of human resource and level of its operation. Human resource operation is not promoted accidentally; rather its necessary organizational and structural prerequisites should be provided and constantly considered by the organization. Attempt for efficient and effective improvement of use of various resources such as labor force, capital, material, energy and information is the aim of all directors in economic organizations and manufacturing industrial units and service institutes (Dimitris, 2008). The main fundamental factor in designing policies of economic development in a country is specifying boundaries and importance of public and private sectors role in process of economic changes. Thus, framework for these areas should be determined and weight of each sector in economic activities should be specified prior to selection of various development policies. Specifying weight of each sector in each activity depends on various internal and external factors including: prevailing ideology and goals considered by the government, global economy and its poles, capacity and abilities of country s public and private sectors, and economic development degree (Arabmazar, 1995). Through and creating competitive environment it is possible to force producer to produce and sell in the minimum price. Benefit of private sector is that it can be forced to produce products in minimum price through competition, not controlling regulations. It is not possible in public structure. Hence, will lead to reduced costs and innovation growth and thus reduced price of products. On the other hand, inflation will be controlled due to cost pressure and the society will be benefited and exports will become possible, because products can be exported which are produced in competitive price (Behkish, 2002). 323

2 2.Theoretical Framework Applied mathematics in Engineering, Management and Technology 2015 Productivity is the factor which guarantees survival and stability of the organizations in current competitive world. Prevailing culture causes optimal use of all material and spiritual possibilities of the organizations and leads to blossoming potential abilities, talents and capabilities of the organization (Sahi, 2005). Productivity improvement is dependent on smart and aware working and it is not dependent on harder work and more use of production factors (Wichian et al., 2009). Many factors influence development of human resource one of which is. Considering the fact the limited resources and facilities are available for the organization and most resources are nonrenewable or their reformation requires many years or some resources are scares, providing these resources needs high cost, and population growth and thus increased consumption and production increase limitation of resources. Therefore, fulfillment of infinite needs with reliance on such resources and possibilities is not possible. Thus, the only logical and feasible way is acquiring maximum efficiency and minimum use of resources. It is implicit in and paying attention to it can be in favor of the organization and the respective communities (Mirnejad, 2003). In order to provide organizational and structural perquisites and human resource promotion in the organization, the role of organizational improvement and excellence should be fully recognized. Inefficiency of some current systems in most Iranian organizations not only does not lead to organizational improvement; rather they worsen performance indexes, satisfaction and thus staff. According to the experts, one of the main indexes in the banks is related to their ownership structure (Nakane et al., 2005). In process, all or part of the ownership and control is relegated to the private sector. Privatization of banks is one of the greatest challenges faced by most governments in the world. The governments resist against exit of banks and credit systems and reduction of their involvement. On the other hand, public banking system is dangerous almost in every country where public ownership of banks is prevalent. However, if the aim of the government is creating more efficient and market-oriented economy, reduction of government impact on credit allocation decisions is very important (Megginson, 2005). Results of the previous works suggest the fact that has positive impact on human resource of the banks. Findings by Lisi (2013) indicate accurate job security regulation has positive impact on labor force. Also, specifically in a study it was shown that the workers with higher job security attempt more for production and it leads to increased. Findings by Ho et al. (2011) indicate has three impacts including negation of more ownership of the great stakeholders, rewarding plans more sensitive to performance and reduction of consumption benefits of directors and staffs in such a way that they slowly increase with sale growth and they are rapidly decreased in sale reduction. Such change in motives helps explaining performance improvement in previously public corporations in the post- era. Also, findings by Schmitz and Teixeira (2008) show when Brazil relegated its public corporations in iron ore industry to the private sector it caused higher. That is, following, iron ore corporations observed significant increase in labor force. Results of the work by Amess and Roberts (2007) indicate that there is positive relationship between of cooperatives and. In addition, their findings suggest that is decreased if the government s interference is higher in cooperatives, and causes higher competition in cooperatives and thus more. Findings by Nakane and Weintraub (2005) show Brazilian banking industry witnessed deep and great changes over last two decades including of public banks, ownership and integration and closing problematic banks, entrance of foreign banks and etc. main findings of this research indicate public banks have lower functioning compared to their private counterparts and is improved if is increased. Considering is a function of many factors and these factors vary by the organizations in terms of the nature, mission, activity, operation etc. impact and importance of these factors on is different in different organizations. Thus, it is not possible for the organizations to enter all influential areas and aspects. On the other hand, banks are essential due to their key role in the economy. According to Levine s theory (1997), ownership structure of banks and their fundamental role in national economy is a vital variable in financial development and economic growth process. The main function of banking sector is guaranteeing the fact that financial resources and credits are directed toward projects with higher and efficiency so that the future growth is helped. Promotion of human resource in Tejarat Bank, which is considered as one of the main sub-sets of economic system in national development, can guarantee more service growth in this bank specifically, and in banking system, generally. Current research study aims at investigating impact of factors facilitating and increased human resource in Tehran Tejarat Bank with emphasis on as an important factors affecting human resource. 324

3 3.Research Hypotheses Applied mathematics in Engineering, Management and Technology 2015 H1: Factors facilitating significantly influence human resource in Tejarat H2: Social attitudes to benefits significantly influence human resource in Tejarat H3: Creating an improved economic climate significantly influences human resource in Tejarat H4: Comprehensive administrative development significantly influences human resource in Tejarat H5: Support by political leaders significantly influences human resource in Tejarat H6: International and local support significantly influences human resource in Tejarat 4.Methodology 4.1.Population, Sample and Sampling Method Statistical population includes experts and directors in Tehran Tejarat Bank s headquarter (n = 798). 259 staffs were selected as the sample using Cochran sampling formula and research tool were conducted among them using simple random sampling. 5.Research Tools Human Resource Productivity Inventory: Human resource inventory was provided based on Achieve Model by Hersey and Goldsmith (1980). This inventory with 26 items explores seven aspects of human resource (ability, job recognition, organizational support, motivation, performance feedback, credibility and environmental compatibility) based on Likert scale. Five-point Likert scale was used in this inventory (Moghimi, 2008). Privatization Questionnaire: Nail s questionnaire (2002) was used considering factors facilitating (including support by political leaders, social attitudes toward benefits, creating improved economic climate for, comprehensive administrative development and international and local support for peace and stability in the region). Reliability of research questionnaires was calculated using SPSS software 20 and Cronbach s coefficient, as observed in Table 1. Table 1: Cronbach s alpha for research questionnaires Questionnaire Cronbach s alpha Human Resource Productivity Inventory Privatization Questionnaire Research Findings - Numerical Indexes of Research s Optimal numerical index is reported in Table 2. In discussion on normality of research variables by Momeni (2007), standard error of skewness measure and standard error of elongation coefficient larger than -2 and smaller than +2 suggest normality of research variables distribution. Byrne (2001) considers optimal range for skewness and elongation statistics based on critical value for skewness and elongation. Considering views of Byrne (2001) and Momeni (2007), exploring skewness, elongation standard error of skewness measure, and standard error of elongation coefficient and investigating distribution of variables in the diagram, results suggest normality of research variables distribution. In addition, investigation of mean and standard deviation statistics indicate optimal distribution of scores. 325

4 Table 2: Single-variate normality test for research variables Mean SD Skewness Standard error of skewness elongation Standard error of elongation HR Social attitudes to benefits Creating an improved economic climate Comprehensive administrative development Support by political leaders International and local support H1: Factors facilitating significantly influence human resource in Tejarat Pearson correlation method was used in order to explore relationship between factors facilitating and human resource in Tejarat Bank, results of which are shown in Table 3. Table 3: correlation between factors facilitating and human resource factors facilitating Correlation Sig. Value Test Result human resource Significant As observed in Table 3, there is positive direct relationship between factors facilitating and human resource (r = 0.440), which is significant at level In other words, presence of factors facilitating leads to human resource. H2: Social attitudes to benefits significantly influence human resource in Tejarat Table 4: Correlation between component of social attitudes to benefits and human resource Correlation Correlation Square of R Square of Correlation Type Level (R) 2 adjusted R Direction social attitudes to benefits and human resource Pearson Positive As observed in Table 4, there is positive direct relationship between social attitudes to benefits and human resource (r = 0.383), which is significant at level In other words, social attitudes to benefits lead to human resource. Also, calculated coefficient of determination indicates component of social attitudes to benefits describes percent of HR variable variance. In addition, in order to determine contribution of components in prediction of 326

5 human resource based on regression coefficient (Beta) it can be said contribution of social attitudes to benefits component is (Table 5). Table 5: Regression coefficient of social attitudes to benefits component on human resource social attitudes to benefits H3: Creating an improved economic climate significantly influences human resource in Tejarat Table 6: Correlation between component of creating an improved economic climate and human resource Correlation Correlation Square of R Square of Correlation Type Level (R) 2 adjusted R Direction creating an improved economic climate and human resource Pearson Positive As observed in Table 6, there is positive direct relationship between creating an improved economic climate and human resource (r = 0.456), which is significant at level In other words, creating an improved economic climate leads to human resource. Also, calculated coefficient of determination indicates component of creating an improved economic climate describes percent of HR variable variance. In addition, in order to determine contribution of components in prediction of human resource based on regression coefficient (Beta) it can be said contribution of creating an improved economic climate component is (Table 7). Table 7: Regression coefficient of creating improved economic climate for and human resource creating improved economic climate for H4: Comprehensive administrative development significantly influences human resource in Tejarat 327

6 Table 8: Correlation between component of comprehensive administrative development and human resource Correlation Correlation Square of Square of Correlation Type Level R (R) 2 adjusted R Direction Comprehensive administrative development with HR Pearson Positive As observed in Table 8, there is positive direct relationship between comprehensive administrative development and human resource (r = 0.406), which is significant at level In other words, comprehensive administrative development leads to human resource. Also, calculated coefficient of determination indicates component of comprehensive administrative development describes percent of HR variable variance. In addition, in order to determine contribution of components in prediction of human resource based on regression coefficient (Beta) it can be said contribution of comprehensive administrative development component is (Table 9). Table 9: Regression coefficient of comprehensive administrative development component and human resource Comprehensive administrative development H5: Support by political leaders significantly influences human resource in Tejarat Table 10: Correlation between component of support by political leaders and human resource Correlation Correlation Square of Square of Correlation Type Level R (R) 2 adjusted R Direction Support by political leaders and human resource Pearson Positive As observed in Table 10, there is positive direct relationship between support by political leaders and human resource (r = 0.329), which is significant at level In other words, support by political leaders leads to human resource. Also, calculated coefficient of determination indicates component of support by political leaders describes percent of HR variable variance. In addition, in order to determine contribution of components in prediction of human resource based on regression coefficient (Beta) it can be said contribution of support by political leaders component is (Table 11). 328

7 Table 11: Regression coefficient of support by political leaders component and human resource support by political leaders H6: International and local support for peace and stability in the region significantly influences human resource in Tejarat Table 12: Correlation between component of international and local support for peace and stability in the region and human resource Correlation Correlation Square of Square of Correlation Type Level R (R) 2 adjusted R Direction International and local support for peace and stability in the region and human resource Pearson Positive As observed in Table 12, there is positive direct relationship between international and local support for peace and stability in the region and human resource (r = 0.054), which is not significant at level Table 13: Regression coefficient of international and local support for peace and stability in the region component and human resource International and local support for peace and stability in the region In addition, in order to determine contribution of components in prediction of human resource based on regression coefficient (Beta) it can be said contribution of international and local support for peace and stability in the region component has no significant contribution (Table 13). 7.Discussion and Conclusion Current work aims at investigating effects of factors facilitating on human resource in Tejarat The main research hypothesis states that factors facilitating significantly influence human resource in Tejarat According to research findings, it can be stated there is positive relationship between factors facilitating and human resource in Tejarat Policy of relegating public economic activities to private sector and confining public sector and government s action range has been considerably prevalent over past two decades, and it is under conduction in widespread areas 329

8 both in developed and developing countries. Changes in Eastern Europe have provided optimal ground for promotion of emphasis on relegating economic activities to private sector (Kim, 2001). According to research findings, it can be stated social attitudes to benefits have impact on human resource which is a direct and positive impact. Thus, first research hypothesis is supported and it can be concluded social attitude to benefits influences human resource in Tejarat Also, according to findings from regression analysis it can be found that social attitude to benefits is able to predict human resource in Tejarat Structures such as public corporations rarely become innovative because they want internal direction and do not pay much attention to encouragement and support for new ideas for improvement of products and processes. In addition, they are generally reluctant to change, which is an obstacle for innovation. Innovation is not a priority for these corporations, since their owners do not have any demand for it, and they do not attempt for generating new ideas for better service delivery to the customers, because they do not feel need for compatibility to competitive conditions in the market for profitability. On the other hand, these corporations are obliged to be accountable to their stakeholders and stabilize competitive situation in the market following, thus movement toward innovation and human resource promotion is expected following (Mahdavi Adeli and Rafei, 2006). According to research findings it can be said the factor of improved economic climate for has positive direct impact on human resource in Tejarat Thus, second research hypothesis is supported and it can be concluded creating improved economic climate for influences human resource in Tejarat In addition, according to findings from regression analysis it can be found that creating improved economic climate for is able to predict human resource in Tejarat Research findings suggest that the factor of comprehensive administrative development has positive direct impact on human resource in Tejarat Thus, third research hypothesis is supported and it can be concluded comprehensive administrative development influences human resource in Tejarat In addition, according to findings from regression analysis it can be found that comprehensive administrative development factor is able to predict human resource in Tejarat It helps improvement of management decisions on the way of using assets and investment in more generative assets. Since previously public corporations were supported by the government before and they had high capability in asset making regardless of management efficiency, importance of management skills for increasing human resource may be increased by entrance to the competitive market (Henry, 2010). Research findings are consistent with existing findings (Gul et al., 2011). According to research findings it can be stated that factor of support by political leaders has positive direct impact on human resource in Tejarat Thus, fourth research hypothesis is supported and it can be concluded support by political leaders influences human resource in Tejarat In addition, according to findings from regression analysis it can be found that support by political leaders factor is able to predict human resource in Tejarat Based on findings in the research it can be said internal and local support factor has no influence on human resource in Tejarat Thus, fifth research hypothesis is not supported and it can be concluded international and local support for peace and stability in the region has no impact on human resource in Tejarat References Amess, K., & Roberts, B. M. (2007). The effects of : The case of Polish cooperatives. International Review of Financial Analysis, 16(4), doi: /j.irfa Arabmazar, A.A. (1995). Privatization and its impact on employment, Journal of Economy and Management, pp Behkish, M.M. (2002). Iran s economy on the way of globalization, Tehran, Ney Publication. Dimitris, M., (2008), "An evaluation of employee motivation in the extended public sector in Greece", Employee Relations,Vol. 30, No. 1,pp Gul sajid, Muhammad sajid,nasir Razzaq, Farman Afzal. (2011)." Agency cost, corporate governance and ownership structure : the case of pakistan",international journal of business and social science,vol3(9),pp Henry Darren.(2010)."agency costs,ownership structure and corporate governance compliance: A private contracting perspective", Pacific-Basin Finance Journal, Volume 18, Issue 1, PP Ho Joanna L. Y, Xiongsheng Yang, and Xiang Li.(2011). "Control Privatization, Corporate Governance, and Firm Performance: Evidence from China",. Journal of International Accounting Research: Fall 2011, Vol. 10, No. 2, pp

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