The Effect of Investing in Hiring, Human Resource Planning, and Employee Development on Labor Productivity: Case of Lebanon

By Fahed-Sreih, Josiane | Journal of International Business Research, January 1, 2012 | Go to article overview

The Effect of Investing in Hiring, Human Resource Planning, and Employee Development on Labor Productivity: Case of Lebanon


Fahed-Sreih, Josiane, Journal of International Business Research


ABSTRACT

Purpose: This paper examines the factors that contribute towards enhancing Labor productivity. The importance of this study is that is covers a significant number of Lebanese Economic sectors with multiple explanatory variables.

Design/Methodology/Approach: Three main areas are studied, namely investing in human resources hiring, human resource planning, and employee development. Responses were received from 527 human resource managers or small businesses managers.

Findings: Results showed that there is a positive relationship between formal HR planning, formal evaluation of hiring policies, succession plans and labor productivity. However, results showed a negative relationship between formal planning, career path and labor productivity. On the other hand, there seems be a negative relationship between skills selection test and aptitude selection test with labor productivity. Moreover, the number of candidates interviewed in a hiring process, is the most significant variable, whereas search firms are the least significant. The study found a positive relationship between promotion from within and labor productivity. On the other hand, there seems to be a negative relationship between training of employees and labor productivity. Moreover, the only significant result among the above three variables is promotion from within. After testing for each variable alone, testing for the overall significance proved that there is a positive relationship between some of the independent variables in the model with labor productivity.

Research Limitations/Implications: This is an exploratory study, and some of the Lebanese Economic sectors were poorly represented in the sample.

Practical Implications: This study helps Human resource managers make the right decisions in their businesses, because this study helps them know the factors that affect labor productivity.

Keywords: Labor Productivity, Human Resources, Hiring, Planning, Employee Development, Capital Intensity, Lebanon

Research type: Research paper.

INTRODUCTION

The organizational factor that is most likely to provide potential competitive advantage is human resources and how these resources are managed. The most effective organizations find unique ways to attract retain and motivate employees, a strategy that is hard to imitate. The success of an organization comes from managing people effectively and providing them with a safe working environment, the best opportunities and paths to advance. Human resource management is the utilization of individuals to achieve organizational objectives. Consequently, managers at every level must be concerned with human resource management. Five functional areas are associated with effective human resource management: Staffing, human resource development, compensation and benefits, safety and health, and employee and labor relations.

Staffing is the process through which an organization insures that it always has the proper number of employees with appropriate skills in the right jobs at the right time to achieve the organization's objectives. Staffing involves job analysis, human resource planning, recruitment and selection. All areas of staffing would be haphazard if the recruiter did not know the qualifications needed to perform the various jobs. Lacking up-to-date job descriptions and specifications, a firm would have to recruit and select employees for jobs without having clear guidelines; this practice could have disastrous consequences. Job analysis is conducted after the job has been designed, the worker has been trained and the job is being performed. Human resource planning involves matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time. Because conditions in the external and internal environments can change quickly, the human resource planning process must be continuous. Changing conditions could affect the entire organization, thereby requiring extensive modification of forecasts. …

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