Sys Rev Pharm 2020; 11(2): 621 630

A multifaceted review journal in the field of pharmacy

E-ISSN 0976-2779 P-ISSN 0975-8453

Impact of Effective Implementation of HR Practices on

Employee Performance in Pharmacy Business in
Thailand
Bundit Pungnirund
Faculty of Management Science, Suan Sunandha Rajabhat University, Bangkok, Thailand
E-Mail: [email protected]

Article History: Submitted: 10.12.2019 Revised: 10.02.2020 Accepted: 05.03.2020

ABSTRACT
The study was about the examination of the association between career opportunities encourage the employee to perform better and
practices of Human Resource (development and training, fair procedures to help them in their job satisfaction and job motivation.
organizational justice and rewards and compensation) and The recommendation for this was to include more relevant variables
performance of employees. The chosen methodology for assessing such as performance appraisal and data analysis method should be
this relationship was quantitative data analysis and data was collected based on both quantitative and qualitative methods.
through primary resources. The instrument used for data collection Keywords: HR Practices, Employee Performance, Pharmacy Business
was a questionnaire, and questionnaires filled from 217 respondents Correspondence:
(HR manager, sales manager, supervisors, and labor). At the end of the Bundit Pungnirund
study, it was concluded that the most impactful variable is rewards and Faculty of Management Science, Suan Sunandha Rajabhat University,
compensation. The physical existence of these variables attracts Bangkok, Thailand
employees’ more attention in comparison to other relevant variables. E-mail: [email protected]
Employees’ development and training and organizational justice were DOI: 10.5530/srp.2020.2.90
also shown a noteworthy relationship. It was summed up that equal @Advanced Scientific Research. All rights reserved

INTRODUCTION employees has a noteworthy influence on HR practices.

Development of human resource is very important for Solkhe and Chaudhary (2011), concluded in their study
improving performance of the organization significantly. that policies and practices of encouraging learning capacity
Moreover, recruitment/selection are very important of employees through learning-based interventions involve
management actions and decisions towards human
this improves organizational performance overall resource development (Agqu & Ogiriki, 2014).
(Siriattakul, Sawasdee, Kalawong, & Jermsittiparsert, 2019; The key objective of presenting paper is evaluation of the
Kerdpitak & Jermsittiparsert, 2020; Saengchai, noteworthy correlation between performance of employees
Joemsittiprasert, & Jermsittiparsert, 2020). Human and practices of Human resource in any organization.
resource development is important to motivate, satisfy and Numerous factors are comprised of the list of HR practices
encourage employees through different skills development, but in the study discussed factors are organizational justice,
training sessions, and knowledge enhancement otherwise development and training, and compensation and rewards.
human resources of a company may become rustic and In the end, data analysis and discussion of results will help
obsolete (Whawo, 2015). The nature and size of the to conclude that improvement in HR strategies and

imperative.
performance.
For achieving organizational objectives successfully as Objectives of the Study
elopment  Evaluation of the importance of main Practices of
play an imperative role? In addition to this, HR practices human resource for Developing Performance of
the employees
achieving organizational objectives. These HR strategies  Assessment of the significant influence of Rewards
and practices comprise of performance appraisal, and Compensation on Performance of the
recruitment and selection, development and training, employees
rewards and compensation. ,  Evaluation of the noteworthy influence of Training
environment of business and Development Performance of employees
demands acknowledgment of Human resource practices.  Estimation of the noteworthy influence of
Moreover, Bowra, Sharif, Saeed, and Niazi (2012) added Organizational Justice on Performance of
that a competitive advantage can be achieved by employees
undertaking effective HR practices because performance of

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THEORETICAL FRAMEWORK

Organization
Justice

Training and Rewards and

Development Compensation

Employee
Performance

LITERATURE REVIEW of the organization. According to the author, job rotation

Development and Training enables the employees to understand different positions of
According to one study, the good practices of Human the organization. It helps in enhancing the experience of
resource will put in the best skills and quality traits of the the employees and provides an opportunity for career
employees to the organization. The study also entails the development.
importance of training in complementing the selection
process which ultimately ends in the progression of the Organizational Justice
organization. Cooke (2000) added up in this that efficiency Organization justice is a new and very different concept
and effectiveness are key factors in to select suitable which is fetching attention day by day in the studies of
employees for any organization. Training plays as one of organizational behavior. The researchers are also making
the important features which increases the knowledge and pace in human psychology and human resource
ability of the workers, and in return culminates the management. The employee pays very close attention to
efficiency and effectiveness of work at the workplace (Haq, justice. Their concept of taking and giving justice to build
Nawaz, Mahtab, & Cheema, 2012). In addition to that, the pillars for commitment and job satisfaction are very
another very important study highlights the usefulness of effective. According to the study, the organization
compensation in the progress and development of a firm. injustices negatively shape the attitudes of the employees
Singh (2017) observes that paying higher compensation to (Ali, 2016).
the employees leads towards better satisfaction and The employees need to know that they are being provided
commitment of the employees. an equal share of rights and organization top management
Major studies on management of human resource by Falola is doing just with their all levels of employees. This concept
et.al, (2014) states that the development and training of is also known as distributive justice which aims to provide
employees is the most vital thing which in return benefits an equal share of rights to every individual working for the
more than any other practice. The research clearly states firm. On the other hand, there is another form of
that spending more on the development of the employees organizational justice which is acknowledged as justice of
through training will return more incentives to the procedures. Procedural justice is meant by the hierarchy of
organization as a whole (Nawaz, Afzal, & Shehzadi, 2013). the firm. Based on which the organizational outcomes are
There is existence of a strong correlation between the divided on every level of the organization (Choi, 2011).
development and training and the positive performance of According to the researchers, procedural justice is divided
the workforce. into two forms formal procedure, and fair outcomes. This
With respect to the training perspective, there are multiple is a concept on which employees perceive to get equal
views of the researchers. One study depicts the concept of justice in every process to get fair outcomes.
training during job routine that is to be more valuable for One last form of justice is interactional justice. Employees
the employees. They can focus on work and training seek justice when they are communicating with other
altogether. On the flip side of this view, there is another managers. As discussed by Al-Zu'bi (2010), Interactional
researcher claims that off duty training is better for the justice comprises of communication between peers
employees because in this way they can focus only on their regarding the concept of justice. The concept makes sure
training rather than a job. Job enrichment is a wide concept that every employee gets complete information about
to enhance the abilities of employees. It also maximizes the organization decisions. This is how the company will get
opportunities of employees, enhancing productivity among complete benefit from the employees and they will produce
the employees and leaves a positive impression on the maximum outcomes.
organizational environment.
Nawaz, Azam, and Bhatti (2019) states that the concept of efforts, education, cognitive assessment and time. In
job rotation also has a direct relation with the improvement response to these factors, employees assess fair treatment or
unfair treatment by mainly focusing on outputs they

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obtained and outcomes what they desired. This are intrinsic rewards. Extrinsic rewards are those rewards
comparison is based on internal organizational procedures which have tangible properties, they can be touched and
as well as external organizational procedures to treat felt. They are also categorized as extrinsic because they are
employees. At the end, the comparison gives a specific level outside the employees' control and job environment. It
of equality or inequality between employees of the includes pay, promotion, bonus and other fringe benefits of
organization. When employees believe that they did not get the employees (Finkelstien, 2009).
what is expected in comparison to other employees they There are also two kinds of payments that are directly
minimize their efforts to performance better and their linked with job satisfaction. There are skill-based payment
behaviors and attitudes may change towards their job and employee-based payment (Lai, 2011). Some factors of
(Kalay, 2016). demographics have a precise influence on satisfaction of
employees. The key objective of the study is assessment of
Rewards and Compensation connection between the compensation and reward systems
According to research, it is known that reparation is always with employee satisfaction. Hence the study on job
tolerable to employees whether it can be in any shape. satisfaction has evidence from real firms that the
Reparation is a prime factor to increase employee compensation plans for the employees are influenced by
gratification in their work. It can also contribute to
enhancing one's work efficiency. In the void of related to performance of employees and it is evident that
compensation, the employees will lose interest in their the rewards are awarded due to the good performance of
work and it would create a problem for the organization. employees only (Nawab & Bhatti, 2011).
Wardoyo (2016), believes that reparation is a reward for an According to the new researchers of the industry, the
employee for his devotion to the organization. It is compensation consists of many colors which are
considered as an award to the people in service.
Wright, Gardner, and Moynihan (2003), mentioned that may include payment, recognition, promotional
workforce of an organization will infuse an un-restricted opportunities. All these multiple facets are included in the
try if the performance management system and the physician satisfaction of an employee of an organization.
compensation systems are working with the same pace. In Firms providing meaningful work also makes a valuable
simple words, job is defined as the amalgamation of the contribution to physician satisfaction (Lai, 2011). Others
description of job and stipulations of the job. It highlights who are not providing meaningful work are making their
the duties and polished skills of a person hired on job employees dissatisfied with their workplaces. Different
(Qureshi, Ramay, & Marwat, 2006). It was also rendered studies suggest that the government should increase
that the system of HR practices has a great influence on compensation plans to increase the satisfaction level among
performance of employees. It has confirmed a notable employees. The government should form certain
connection between practices of HR and Employee committees regarding compensation management. They
outcomes (Sels et al., 2006). should act in a radical way to provide promotion,
The list for compensation comprises for gratuity, a prize compensation, and feedback related to physician
that incorporates financial or non-financial things (Wright satisfaction (Güngör, 2011).
et al., 2003). The most critical and disputable procedure is Several theories proposed an influential correlation
the wage in most of the companies because it has to be done between practices of compensation and performance of
in accordance to one's capabilities. New plans and strategies employees. In addition to Shahzad, Bashir, and Ramay
are made during a reward system (Njoroge & Kwasira, (2008), concluded in their study that the relationship
2015).
The reward management systems are only apprehended practices of university management is directly correlated.
with the design and durability reward systems in-return for This could be an assumption that resulted in a theoretical
the betterment of organizations and individuals. In study that performance of employees and practices of
contrast to the Performance management, this believes that compensation are directly correlated (Rahman &
improvement in performance of organization is imperative .
to evolve the performance of team and individual forces
(Armstrong and brown, 2006). He further pointed out that HR P
improved results can be achieved by planning and There is huge data of research on the association between
frameworks. Reward system, leadership, and training were practices of HR t of the
considered as tools for better performances. However, the studies show an influencing linkage between practices of
tools used must be adequate to achieve target goals. It was Human resource and Human resource performance.
also said that performance management must work under E
agreement rather than command. Thus, there comes a need increase individual as well as organizational productivity
for a researcher who considers the reward system as an (Peretomode, 1991). According to Wright et al. (2003), the
aspiration for individuals to work hard. The rewards are methods
believed to be the most controversial as well as a prime part skills through training, compensation, rewards, and
of an organization (Zainalipour, Fini, & Mirkamali, 2010). performance evaluation impact the attitude of employees
Rewards are categorized further into two types. One is in terms of satisfaction, motivation, and commitment.
known as extrinsic rewards and on contrary to that there These attitudes are based on organizational HR practices.

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et al. (2006)was in support of practices of human resource

enhance their performance towards organizational goals, as benefiting performance of employees in the organization.
concluded by a large body of research in this field (Darma
& Supriyanto, 2017). METHODOLOGY
There are a lot of studies that represent the reasons behind The selected methodology for this study is based on
collecting data through primary sources.. The primary
satisfaction, motivation, and commitment influence the sources of data collection are used to impart the factor of
(Teclemichael Tessema & Soeters, generalizability and collect a huge volume of data for
2006). The concept reveals that most of the employees who reliable results. For this purpose, a questionnaire survey
feel motivated and satisfied are likely to work for the method is chosen. The questionnaire is easy to use the
organization for a longer period (Fields, Pang, & Chiu, instrument for gathering data (McLafferty, 2003). In this
2000). According to the researcher Singh (2004), says that study, a Likert scale-based questionnaire is distributed to
willing respondents, which involves five best possible
interrelated to each other. Employee satisfaction leads to answers to given questions. This questionnaire helps to
the commitment and motivation of the employees. Many save time during the responses collecting process. The
authors have the view that employee satisfaction is the open-ended questionnaire is not selected due to time
result of high motivation. They feel committed to their limitations and openly given answers are not easily
organization only when they are satisfied. Schmidt (2007), measurable. This study is quantitative data-based study and
also concluded that job satisfaction is also earned when quantitative data analysis techniques are used to conclude
employees have a massive number of opportunities. results and gauge the influence of effective practices of HR
One more significant and most vital part of bringing up
satisfaction is the development and training of the The population of this study is not purpose-based due to
workforce. The researchers suggest that Human resource which randomly selected organizations are visited to collect
development must take certain initiatives for the questionnaires. Moreover, the sample size is also not
development and training of the employees (Bartlett 2001). defined that
These factors also contribute to the positive behavior of the which are sales managers, human resource managers,
employees towards the organization. Training is one of the supervisors and randomly selected employees of the
mainstreams which saves the employees from absenteeism organizations. They were asked to fill questionnaires with
and turnover. According to the study by Lee and Bruvold their free consent. Their names and personal information
(2003), training activities increase the chances of are kept confidential due to a matter of secrecy. In the end,
productivity and reduces the chances of leaving the the cross-sectional period is entertained it is due to period
organization. According to the research study of Collin of data collection is same for the whole data rather than a
(2005), practices of human resource are highly effective in series of the time period which is a longitudinal time
period.
small organization. A similar study conducted by Qureshi

Data Analysis
Table 1: Gender
Frequency Percent Valid Percent Cumulative Percent

2 107 49.3 49.3 49.3

Valid
1 110 50.7 50.7 100.0
Total 217 100.0 100.0

For this study, male and female genders are selected. The and women's workplace insecurities are directly related to
total number of participants is 127, out of which 107 are (Hussain,
male and 110 are female participants. Gender is a very Mosa, & Omran, 2017). By keeping in focus this aspect
important factor in analyzing the level of organizational female participants are equally included in the data
justice between both genders. The factor of discrimination collection process.

Table 2: Age
Frequency Percent Valid Percent Cumulative Percent
2 86 39.6 39.6 39.6
3 86 39.6 39.6 79.3
Valid 4 36 16.6 16.6 95.9
1 9 4.1 4.1 100.0
Total 217 100.0 100.0

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The age of the participants ranges from 25 to 60 years. The enthusiastically. Their concerns are high for their career
most senior person in the organization is 60 years old. Out development and opportunities. It is seen from various
of 217 participants mostly are of age range 25-40. At this studies that most of the people in this age are high
age when employees learn new skills and abilities performers as compared above than this or lower than this.

Table 3: Income
Frequency Percent Valid Percent Cumulative Percent

5 85 39.2 39.2 39.2

3 43 19.8 19.8 59.0

4 81 37.3 37.3 96.3

Valid
below 30000 8 3.7 3.7 100.0

Total 217 100.0 100.0

organizational HR practices. They are willing to improve

motivation towards their job, due to which different their performance. From the collected data most of the
income level positions are included in the data collection people get 50000 to 75000 pay, which makes them
process. According to results, it can be seen that people who optimistic about future opportunities, provided by the
have high incomes show a positive attitude towards organization.

Table 4: Designation
Frequency Percent Valid Percent Cumulative Percent
4 8 3.7 3.7 3.7
2 84 38.7 38.7 42.4
Valid 1 81 37.3 37.3 79.7
3 44 20.3 20.3 100.0
Total 217 100.0 100.0

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In this study, four main designations of the participants are supervisors with 3, HR managers with 2 and sales managers
considered, sales managers, HR managers, supervisors, and with 1 and a large number of participants.
employees. The employees are symbolized with number 4,

Reliability Tests of Independent Variables

Organizational Justice
Table 5: Reliability Statistics
Cronbach's Alpha No. of Items

.670 5

Organizational justice is of three types, procedural,

interactional and distributive as discussed in the literature shows the level of reliability of any variable for including in
review. From theoretical studies, it is evaluated that there is
a direct link between the fairness of affairs in any firm and Alpha assessment which is 0.670, this variable is highly
the performance of employees in that organization. The
reliability test of any variable can be described through a result of organizational justice.

Compensation and Reward

Table 6: Reliability Statistics
Cronbach's Alpha No. of Items
.738 5

There is a huge volume of data to calculate the reliability of organization. Organizational justice is the most suitable
reward and compensation for getting the high performance variable which impacts the performers of any organization
of the employees in the organization. For assurance, this positively or negatively, as compared to other variables
statistical result shows that compensation and reward have such as training and development and organizational
justice.
are more concerned with this part of HR practices in an

Training and Development

Table 7: Reliability Statistics
Cronbach's Alpha No. of Items
.686 5

Training and development are career-oriented factors that development and training procedures of the specific firm.
encouraged employees to improve their professional as well The value of reliability test for this specific variable is 0.686,
as personal skills and abilities. Satisfaction related to job
and job motivation, two key performance, as per defined by statistical tool chosen in this
factors are directly linked with training and development. study for evaluating the reliability of variables.
Due to this reason, respondents are concerned about the

Reliability test of dependent variable

Employee Performance
Table 8: Reliability Statistics
Cronbach's Alpha No. of Items

.700 5

In any organization, employees are the real asset to boost response to these practices, employees perform their jobs
their growth at the according to the level of acceptance or rejection of those
development are directly considered as organizational
growth and development. Organizations always try to evaluate the effectiveness or ineffectiveness of HR practices
retain their employees with powerful strategies and in any organization. This measuring tool also gives 0.700
practices. These practices are practices of human resource .
that are developed for Human Resource development. In

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TABLE 9: Correlation Analysis

TD OJ CR EP
** **
Pearson Correlation 1 .866 .934 .981**
TD Sig. (2-tailed) .000 .000 .000
N 217 217 217 217
** **
Pearson Correlation .866 1 .828 .884**
OJ Sig. (2-tailed) .000 .000 .000
N 217 217 217 217
** **
Pearson Correlation .934 .828 1 .933**
CR Sig. (2-tailed) .000 .000 .000
N 217 217 217 217
** ** **
Pearson Correlation .981 .884 .933 1
EP Sig. (2-tailed) .000 .000 .000
N 217 217 217 217
**. Correlation is significant at the 0.01 level (2-tailed).

The correlation table demonstrates the correlation and In the above-given table, Pearson's value for the
linkage between dependent and independent predictors.
According to correlation analysis, there are two types of compensation and rewards is 0.903, which shows the high
values which give values of significance and intensity of the intensity of the relationship. On the other hand, the p-value
relationship. The intensity of correlation can be analyzed is 0.00 which shows the most significant relationship
by Pearson value and the value of significance can be
measured by p-value. The more the Pearson value shows performance. The same results are discussed by Ajila and
the high intensity of the relationship and in opposition to Abiola (2004).
this the lower than 0.05 value of p-value shows a more In the above-given table, Pearson's assessment for the
significant relationship. connection between performance of employees and
In the above-given table, Pearson's significance for the organizational justice is 0.884, which illustrates the high
correlation between performance of employees and intensity of the correlation. It shows that if organizational
development and training is 0.981, which shows the highest
intensity of the relationship. On the other hand, the be increased by 88.4% which is a very good ratio. On the
significance/p-value is 0.00 which illustrates the most other hand, the significance/p-value is 0.00 which depicts
significant connection between development and training the most impactful association between Organizational
This relationship is also e. This relationship also
proved by Khan (2012). discussed and proved positively related by the results of
Ang, Van Dyne, and Begley (2003) study.
Regression Analysis
Table 10: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .985a .969 .969 .13001
Predictors: (Constant), CR, OJ, TD
Regression investigation is a statistical tool to study the in an organization. The given table depicts that the adjusted
impact of independent variables on the dependent variable. R square is 0.969 which means all variables in this study are
The dependent variable varies with the varying value of the 96.9% significantly important for the study to inspect the
independent variable. In this study, the dependent variable impact of the independent variable on dependent variables.
is performance of employees and independent variables are There are only 4% importance of some other predictors
practices of HR including development and training, which are not incorporated in the study to analyze the
rewards and compensation and organizational justice, used impact.

Table 11: ANOVA

Model Sum of Squares df Mean Square F Sig.
Regression 113.642 3 37.881 2240.996 .000b
1 Residual 3.600 213 .017
Total 117.242 216
Dependent Variable: EP
Predictors: (Constant), CR, OJ, TD

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ANOVA is a model to show the significance of the impact

of HR Practices (independent variables) on performance of significance value is 0.000. The value shows 100% result of
employees (dependent variable). It tells how impactful
change development and training, reward and positive or negative, depends on their perception regarding
compensation, and organizational justice can bring specific HR practices.

Table 12: Coefficients

Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -.042 .050 -.830 .407
TD .778 .038 .771 20.342 .000
1
OJ .123 .023 .127 5.237 .000
CR .108 .034 .108 3.206 .002
Dependent Variable: EP

This given table also illustrates the significance of the review. From theoretical studies, it is evaluated that there is
impact on the dependent variable. According to given beta a direct link between the fairness of affairs in the
values development and training have a 77.1% viable organization and the performance of employees (Ali, 2016).
It is recommended by analyzing concluded results that
organizations should focus on compensation and rewards
and compensation and rewards have a 10.8% significant in comparison to other two variables (training and
development and organizational justice). From results, it is
significance measure, it is analyzed that training and seen that compensation and rewards are most desired
development is the most impactful variable to improve practices by employees of the organization. Organizations
should develop variety of reward systems to encourage high
development opportunities. Training and development can performers of the organization. Performance and
be done before the job started to prevent those losses which compensation both are interrelated variables.
are caused by inefficiency. On the job training and Compensation procedures increase performance and high
development is the most suitable method of human performance drives compensational procedures.
resource development by saving time as well as cost.
participation in decision making process in order to value
CONCLUSION their ideas and opinions. With respect to research related
The concluded results show that practices of human recommendation, qualitative data and open-ended
resource (development and training, rewards and questions should be added to enhance the variability of
compensation and organizational justice) have directly factors and examine more concerned variables.
correlated with the employee performance, which means
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