This chapter comprises three parts: the first part is the conclusions of this research study, the second part is the limitations of this research study and the third part is the recommendations for management and future research.
Conclusions
Significant difference in HR effectiveness
The one-way ANOVA test results show that hypothesis 1 is supported, there is indeed a significant difference in HR effectiveness among different companies. This indicates that different companies have different HR practices and policies, which result in the difference of HR effectiveness.
Significant difference in job satisfaction
The one-way ANOVA test results regarding WOPJ show that hypothesis 2-1 is supported.
There is indeed a significant difference in WOPJ among different companies. This indicates that companies of different industries have different types of job design, which result in the difference of perception of satisfaction toward their jobs.
The one-way ANOVA test results regarding pay show that hypothesis 2-2 is supported.
There is indeed a significant difference in pay among different companies. This implies that companies of different industries have different C & B systems and policies, which result in the difference of perception of satisfaction toward their pay.
The one-way ANOVA test results regarding job satisfaction show that hypothesis 2 is supported. There is indeed a significant difference in job satisfaction among different companies. This suggests that companies of different industries have different types of job design and different C & B systems and policies, which result in the difference of perception
80 of job satisfaction.
Influence of HR effectiveness on job satisfaction
For HR effectiveness against WOPJ, the regression analysis results show that hypothesis 3-1 (the higher the HR effectiveness, the more satisfied the employees will feel toward the content of their jobs) is supported. This suggests that HR effectiveness is predictive of employees’ perceptions of their job content and can be used to improve employees’
perceptions of their job content.
For HR effectiveness against pay, the regression analysis results show that hypothesis 3-2 (the higher the HR effectiveness, the more satisfied the employees will feel toward their salaries) is supported. This implies that HR effectiveness is predictive of employees’
perceptions of their pay and can be used to improve employees’ perceptions of their pay.
With the two sub-hypotheses established, hypothesis 3 (the higher the HR effectiveness, the higher the job satisfaction of the employees will become) is therefore supported. This shows that HR effectiveness is predictive of job satisfaction and can be used to improve job satisfaction.
Influence of HR effectiveness on organizational performance
For HR effectiveness against PGR, the regression analysis results show that hypothesis 4-1 (the higher the HR effectiveness, the higher the PGR will become) is supported. This suggests that HR effectiveness is predictive of PGR and can be used to improve PGR.
For HR effectiveness against SGR, the regression analysis results show that hypothesis 4-2 (the higher the HR effectiveness, the higher the SGR will become) is rejected. This implies that HR effectiveness is not predictive of SGR at all.
For HR effectiveness against ROE, the regression analysis results show that hypothesis 4-3 (the higher the HR effectiveness, the higher the ROE will become) is supported. This
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shows that HR effectiveness is predictive of ROE and can be used to improve ROE.
With only two sub-hypotheses established, hypothesis 4 (the higher the HR effectiveness, the better the organizational performance will become) is therefore partially supported, meaning HR effectiveness is partially predictive of organizational performance.
Influence of job satisfaction on organizational performance
For job satisfaction against PGR, the regression analysis results show that hypothesis 5-1 (the higher the job satisfaction of the employees, the higher the PGR will become) is supported. This suggests that job satisfaction is predictive of PGR and can be used to improve PGR.
For job satisfaction against SGR, the regression analysis results show that hypothesis 5-2 (the higher the job satisfaction of the employees, the higher SGR will become) is supported.
This implies that job satisfaction is predictive of SGR and can be used to improve SGR.
For job satisfaction against ROE, the regression analysis results show that hypothesis 5-3 (the higher the job satisfaction, the higher the ROE will become) is supported. This shows that job satisfaction is predictive of ROE and can be used to improve ROE.
With the three sub-hypotheses established, hypothesis 5 (the higher the job satisfaction of the employees, the better the organizational performance will become) is therefore supported, meaning job satisfaction is predictive of organizational performance and can be used to improve organizational performance.
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Recommendations
Recommendations for management
There are some recommendations the researcher would like to address, grounded on research findings and conclusions.
Firstly, higher effectiveness of the HR systems or practices leads to higher job satisfaction of the employees. If a company regards the employees as assets and holds the opinions of the employees as the very basis for developing HR practices, especially practices, such as staffing, compensation, training and development, and employee rights, the HR effectiveness of this company will definitely become higher. It is because the company values the employees’ perceptions of HR effectiveness. Through constantly monitoring what the employees think of the HR practices, HR professionals are able to identify the problems and hence take care of the problems by reviewing staffing policies, compensation systems, training schemes, employee rights, and making necessary and timely changes in order to improve the employees’ perceptions of HR effectiveness. Once the employees have better perceptions of HR effectiveness (staffing, compensation, training and development, and employee rights) in the light of better staffing policies, better pay, better training or more rights, they will become more satisfied toward their jobs, both the content and the pay.
Secondly, higher HR effectiveness leads to better organizational performance in terms of financial indicators such as PGR and ROE. If a company is dedicated to improving the employees’ perceptions of HR effectiveness particularly the practices, including work flows, training and development, employee relations, and international management by facilitating better work flows, reviewing training schemes, bettering the relations between employees and employer, and broadening HR professionals’ sense of internationalization when designing HR activities, the PGR and ROE will be higher. Thus, it is vital for HR professionals to continuously monitor employees’ perceptions of HR effectiveness, to spot the irregular and deal with any problem immediately once arisen. By doing so, it can help the organization to
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attain better financial performance and show the management level a more clear link between HR effectiveness and organizational performance, which could enhance the strategic values of HR functions in the organization.
Thirdly, higher job satisfaction leads to better organizational performance in terms of financial indicators, such as PGR, SGR and ROE. If a company focuses on ameliorating employees’ perceptions of the job content and the pay, it will yield higher PGR, SGR and ROE. For improving the employees’ perceptions of job content, HR professionals can make the job content more pleasant, more useful and more satisfying by redesigning the job content from individual level through means of job enlargement, job enrichment or job rotation. They can also do this from group level by forming integrated or autonomous work teams depending on what the business environment calls for. As for improving employees’ perceptions of their salaries, it is really a dilemma for the company especially in a time like this. The everlasting global financial crisis leaves the employers no choice but cutting down all kinds of costs as much as possible for the survival of the business, and leaves the employees no room for bargaining. The message is clear: there is barely any room for any form of salary advancement. Hence, it’s very difficult for employees not to feel underpaid in a time like this.
The best the employers can do at this point, is to make sure every employee can be compensated the same way as agreed and contracted by both parties in the beginning, and employees should also be informed of any change to be made to the contracts by the employers, so the rights of employees will not be violated unnoticed. In addition, employees’
benefits should be kept as intact as before. It is extremely important for HR professionals to pay extra attention to the compensation and benefit policies because it directly matters to the output of both the employees and the organization.
84 Recommendations for future research
There are some recommendations the researcher would like to address for future research.
Firstly, data should be collected from various sources instead of one to avoid Common Method Variance (CMV).
Secondly, the sample size should as large as possible. By the law of large numbers, the more observations you make, the more coherent your observation results (e.g. the percentage of a particular event to occur) will become with the entire population. This indicates that the more samples you have, the more likely you can predict the parameter of the population from the statistics of the sample. Nevertheless, the law of large numbers does not apply to all kinds of research studies because of the difference between hypothetical situation and actual situation, and the high heterogeneity among populations. Thus, apart from sample size, sampling technique is also critical to the success of a research study because if the researcher does not adopt the proper sampling technique by the nature of research (e.g. descriptive research, correlational research or casual-comparative research), even the sample size is very large, the results could still seriously lack of representation.
Thirdly, the researcher recommends future researchers to always run a pilot test to ensure the reliability and validity of your questionnaire before administering the official questionnaire. If not, the quality and accuracy of your research work may be compromised to certain degrees. The reality is, the researcher of this research study failed to recognize the variance of cultural difference, meaning the questionnaire with considerably high reliability and validity in one place does not necessarily mean that it applies to another place. Hence, future researchers must be aware when it comes to the confirmation of the reliability and validity of your questionnaire.
Fourthly, the researcher strongly recommends future researchers to evaluate HR effectiveness from the organizational perspective in their studies and do a comparison on the
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results between individual perception and organizational perception of HR effectiveness, to see how much the results differ or resemble. It has never been done before, so the results should be very interesting.
Fifthly, the researcher encourages future researchers to identify other variables besides job satisfaction and examine the moderate effect of those variables along with job satisfaction on the relationship between HR effectiveness and organizational performance, to see how it turns out. The researcher had attempted to examine whether job satisfaction could moderate the relationship between HR effectiveness and organizational performance, but the results showed that the influence of HR effectiveness ( value =.267, p<0.01) on organizational performance was very significant and the influence of job satisfaction ( value =-.051,-.072, p>0.05) on organizational performance was insignificant (when running regression analysis with the two sub-variables, WOPJ and Pay, merged into one variable tagged as Job Satisfaction), therefore it would be pointless to examine the moderate effect of job satisfaction on HR effectiveness and organizational performance.
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APPENDIX
0960249627 shuliken@hotmail.com
: :
2009 2
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1. (Work Flows)
2. (Staffing)
3. (Employee Separations) 4. (Performance Appraisal)
5. (Training and Development)
6. (Compensation)
7. (Employee Relations)
8. (Employee Rights)
9. (International Management)
(Work on Present Job)
1. (Fascinating)--- 2. (Routine)--- 3. (Satisfying)--- 4. (Boring)--- 5. (Good)--- 6. (Creative)--- 7. (Respected)---
8. (Uncomfortable)---
9. (Pleasant)--- 10. (Useful)---
11. (Dull)---
HR Effectiveness)
(Job Satisfaction)
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25 26-30 31-35 36-40 41-45 45
0-2 3-5 6-10 11-15 16
12. (Can see results)--- 13. (Challenging)--- 14. (Uses my abilities)--- 15. (Uninteresting)--- 16. (Simple)--- 17. (Repetitive)---
18. (Gives sense of accomplishment)----
(Pay)
1. (Income adequate for normal
expenses)--- 2. (Fair)--- 3. (Barely live on income)--- 4. (Bad)---
5. (Income provides luxuries)---
6. (Insecure)--- 7. (Less than I deserve)--- 8. (Well-paid)--- 9. (Underpaid)---