Academic journal article International Journal of Business and Society

Hr Professionals' Effectiveness and Competencies: A Perceptual Study in the Banking Sector of Pakistan

Academic journal article International Journal of Business and Society

Hr Professionals' Effectiveness and Competencies: A Perceptual Study in the Banking Sector of Pakistan

Article excerpt

ABSTRACT

This study examines the human resource (HR) Professionals' Effectiveness through the lens of HR Professionals' Competencies and HR Professionals' Willingness. The Human Resource Competency Study model is used in this research, which is modified to include 'Willingness' as an important competency. Impact of HR Professionals' Social (HRSC), HR Professionals' Technical Competencies (HRTC) and HR Professionals' Willingness (HRPW) on HR Professionals' Effectiveness is measured. The study is undertaken using data drawn from the line managers of the largest bank among the privatized banks of Pakistan. It is hypothesized that all HR Professionals' Competencies are equally and strongly related to HR Professionals' Effectiveness which is theoretically associated with organizational performance. The analysis reveals that the HR Professionals' Competencies have a significant high correlation with HR Professionals' Effectiveness. However, this relationship is stronger for HRSC than HRTC or HRPW and within the sub constructs 'Credible Activist' has the stronger relationship contrary to our expectations. It is also concluded that the HR professionals' of the bank are lacking the competencies and hence have a negative impact on their effectiveness in the banking sector of Pakistan. Keeping in mind the relationship between HR Professionals' Effectiveness and organizational performance, the need to enhance HR Professionals' Competencies is highlighted.

Keywords: HR Professionals' Competencies; HR Professionals' Effectiveness; Willingness; Bank.

1. INTRODUCTION

As economies shift from agriculture, to industrial to service and now to knowledge base, there is also a desirable need to shift the human resource management (HRM) functions to keep pace with the changes taking place. The shift in HRM functions intuitively argues for a shift in the managerial roles and competencies of the human resource (HR) Professionals' (Lemmergaard, 2009). In the past, HRM function were more oriented to operational aspects of managing the employees, thus necessitating to follow and implement rules and regulation governing employee and organization relationships (Beatty, Huselid, & Schneier, 2003; Bal, 2011). But now the primary role for HR Professionals' is debatably focused on strategically managing the human resources. Wright and McMahan (1992, pp, 298) define strategic HRM as "the pattern of planned resource deployment and activities intended to enable an organization to achieve its goals". The requirement presented by these authors has extended this statement to include 'influencing the, mind set' as prior to deploying the resources. Therefore, we propose that "strategic human resource management (SHRM) is a planned deployment of human resources and activities by influencing the mindset of the workforce to facilitate the efficient and effective achievement of organizational goals". This role of the HRM of the organization extends to cover the alignment of the HR skill set and behaviors with the strategic needs of the organization, thus making the role of HR professionals central to the organizational competitiveness. In line with this argument, a number of authors have posited that the HR, which an organization possesses, is a key source of the organization (Inyang, 2010). This new view implies a paradigm shift from the HR being an expense to a profit generating resource (Oxman, 2002) especially in a fast changing environment. Ulrich, Allen, Brockbank, Younger, & Nyman (2009) for example have posited that there is a growing demand for highly skilled and adaptable workforce in the organization. This demand is predicated on the changing business environment with threats of higher levels of competitive rivalry centered on changes in information and communication technology, which has caused an unfavorable dynamics shift in the industry environment (Porter, 2008). This dynamism is occurring in an environment where products, markets and services are highly globalized (Ulrich, Allen, Brockbank, Younger & Nyman, 2009) therefore, giving a major impetus to the need to bring about changes in the required skill and capabilities set of the organization's HR. …

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