Impact of HR Practices On Employee Turnover and Jo

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Impact of HR Practices on Employee Turnover and Job Satisfaction: Evidence

from Unfavourable Context of Universities in KP Pakistan
Article · September 2020

DOI: 10.30543/9-3(2020)-7
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B www.irmbrjournal.com September 2020
R International Review of Management and Business Research Vol. 9 Issue.3
Impact of HR Practices on Employee Turnover and Job

Satisfaction: Evidence from Unfavourable Context of
Universities in KP Pakistan
Dr. ALI MUHAMMAD

(PhD UK, Postdoc Canada)
Institute of Management Studies,
University of Peshawar, 25000 , Peshawar Pakistan
Email: [email protected]
Prof. Dr. SHAFIQ UR REHMAN

Department of Management Studies, University of Malakand, Pakistan.
Email: [email protected]
Abstract
This research examines the impact of pertinent HR practices/policies upon a person’s job contentment and
turnover in higher educational institutes. A special context of universities of KP is chosen where numerous
employees have developed job dissatisfaction and increased turnover because of unfavorable work
conditions including but not limited to terrorism attacks, civil unrest, widespread diseases and unconducive
working environment. This has ultimately compelled them to leave their jobs and flee to other cities such as
Islamabad and Karachi. More specifically, three HR policies i.e. employee participation, training and
performance appraisal are analysed to affect job satisfaction and turnover. A quantitative survey was
conducted to assess job outcomes of University teachers in areas where living conditions have deteriorated
in the recent past. Respondents were segregated on the basis of age, income per month, designation and
gender basis. The regression results suggest a positive significant relation of employee participation and
performance appraisal with that of job satisfaction while a significant negative relation is found with
turnover ratio. The study concludes that universities should focus on implementing HR policies and
practices effectively in workplace which will help retain employees and keep them motivated. This can be
one of the many effective strategies to retain workforce and discourage brain-drain out of the country. The
study ends with a brief conclusion and while acknowledging limitations.
Keywords: HR Practices, Job satisfaction, Turnover, Performance Appraisal, Employee Participation.
Introduction
Today‟s organisations are generally engaged in seeking more effective ways to increase productivity and to
keep abreast with the enhanced competition to uphold its unique identity in the market. To achieve this
very purpose they try to practically imply various tools and techniques including but not limited to
accounting, financing and human resource decisions. Among all those techniques and practices, the Human
Resource (HR) Practices hold a supreme position that can play a vital role in the overall effectiveness and
efficiency of an organization.
The association between HR practices and Job satisfaction is researched extensively in contemporary
management world. Following other researchers in Europe and America, Belzen (2009) examines this
association in a Dutch sample. Another study put forward by Brown and Hewood (2005) assert that
employees‟ productivity can also be increased rapidly by providing them better opportunities for their
ISSN: 2306-9007 Muhammad & Rehman (2020) 88
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career development. The literature also shows the importance of supervisor in organization in some
emerging economies (Ma et al., 2016; Shaffer et al., 1999) Furthermore, Selmer (2001) state that the role of
a supervisor is like a bridge that links the workers with the upper management of an organization.
The overall progress of the organization is one way or the other, influenced by prevalent HR practices
(Stavrou, 2005). The key to success for an organization is to implement or adopt the ways and means how
to satisfy the current employees. Existing research offers theoretical foundations and frameworks which
can be the bases for bringing more holistic solution to a local personnel problem. (Arumugam and
Mojtahedzadeh, 2011). The personal satisfaction of the employees will lead to a strong commitment
towards organization and eventually will lead to lesser levels of turnover.
The concept of remuneration is vital because according to Aswathappa, (2008) it constrain the employees
to stick to the job that yields more organizational productivity and less turn over. Remuneration is also
another foundation building element that includes all the monetary and non- monetary incentives a worker
receives in return of catering the services to an organization (Gary, 2008, p. 390). It may be concluded that
the organizational endmost success is more or less dependent on the HR practices in use by the firm. The
Human resource management if done effectively can ultimately lead to higher employee contentment and
reduced turnover.
The focal point of research is to examine the impact of various HR practices and policies on job outcome
such as employee turnover and to determine an appropriate mix of strategies that can be put into practice in
order to reduce turnover in organizations. Also, Job satisfaction is a vivid concept and is the foundation of
any organization‟s success and prosperity. An organization flourishes only because of its employees.
Therefore keeping employees satisfied is of prime importance to the success of organisations.
The proposed research inspects the impact of unmatchable complementary HR practices that act as basis to
employee‟s satisfaction and lead to a progressive organizational output. To put the concept into practice the
study takes into account the teacher‟s satisfaction in the context of renowned universities in Khyber
Pakhtunkhwa Pakistan.
Research Objectives
Narrowing the discussion into specific outlines, the research strives to achieve the following objectives.
 To find out an association between the different HR practices, policies and work outcomes such as Job
satisfaction and turnover ratios in higher education institutions (HEI‟s) of Pakistan.
 To examine as to what extent the levels of contentment and turnover ratios are determined by
underlying factors in the human resource policies of training, employee participation and performance
appraisal system.
 To draw suggestive measures to accomplish an enhanced levels of job satisfaction and reduced
turnover ratio amongst university employees in an environment of chaos and conflict, such as the one
in prevalent KP Pakistan.
Review of Literature and Hypotheses

Job satisfaction is a crucial element in general organizational behaviour and its impact on the employee‟s
overall performance is unavoidable. There are many contributors which plays their part actively to achieve
the target including employee contribution, job specification, reimbursement, career management system,
performance appraisements and selection criterion. A comprehensive research model is therefore
formulated which encapsulates the general workforce practices and influence of job satisfaction on the
productivity and outcome of Malaysian industries in particular (Arumugam & Mojtahedzadeh, 2011). Job

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satisfaction has also been extensively used as a mediating variable in promoting HR practices (Kundu &
Gahlawat, 2015).
An investigation conducted by Olusegun, (2013) in South West Nigeria on the university employees
revealed that there is an obvious distinctiveness in the linear combination effect of employee satisfaction
and turnover intents. A research study carried out by Khan et al. (2012) took university instructors and
considered the three distinctive sectors of Pakistan including the government, semi government and private
sectors, revealed a gender bifurcated results. It was observed that female instructors are more likely to get
influenced by the HR practices, whereas male teachers are more interested in their work and usually get
satisfaction out of it.
Another study done by Huselid, (1995) suggested on the bases of sample gathered from around 1000 firms,
exhibiting the significance of economical and statistical impression over transitional employee‟s outgrowth
and the corporate financial growth in both short and long run respectively. The investigation regarding HR
contribution reveals that the employee‟s approach and overall conduct is the outcome of HR practices and
the way workers acknowledge the administration (Nishi, lepak & Schneider, 2008). A constructive
association can be observed in between salary strategies and work enhancement with job
satisfaction/contentment, worker‟s devotion with job improvement strategies and strategies related with
work balancing (Roberto & Jaoquin, 2007).
The research also revealed the inverse relationship between worker‟s commitment and planned turnover.
The influence of HRM practices with respect to HR outcomes targeting the Government banks operating in
Sri Lanka was investigated by Rathanweera (2010). The collection of data was done with the use of
structured questionnaires in which the worker‟s approaches towards HR practices was analyzed. Sample
based on 209 workers was gathered from various departments of two Sri Lankan Government banks. The
conclusion reflected that HR practices are the foreseeing instruments of worker‟s contentment, commitment
and withholding Rathanweera (2010).
Belzen, (2009) also studied the relationship between job satisfaction and HR practices, according to him the
improved HR practices powerfully influence the worker‟s built in relevant job contentment. The research
indicates that the organizations with higher and more advanced HR practices finally yields to greater job
satisfaction. An investigation done by Hussain and Rehman (2013) suggested that the association between
HR practices and job security, training and inductions are strongly participating in the retention process and
influences employees to retain their services with the organization. According to Mahmud and Idrish,
(2011) the job related imbursements and in depth analysis of work are strong indicators predicting the
intention of an employee to quit.
Another study carried out in Bangladesh by Absar, Azim, Balasundaram (2010) revealed a significant
relationship between improved HR strategies and the number of satisfied and dedicated employees. A study
done by Mumtaz, Aslam and Ahmad, (2011) to find out the influence of HR practices on job satisfaction of
University instructors. The findings revealed that the mentioned set of HR practices did not influence the
teacher‟s contentment which thus indicates that the other factors are still to get unveiled impacting
teacher‟s satisfaction in general.
Success of the firm is highly motivated by the effective implementation of HR practices (Stavrou, 2005).
The concept proposed by Locke in 1976 was used by Haque and Taher, (2000) they proposed that job
satisfaction is an optimistic emotional feeling which can be attained from a comprehensive interpretation of
the person‟s work. The major determinants of job satisfaction includes worker‟s necessities and wants,
social affiliations, management practices, job structure and design, reimbursement, long term chances
(Moorhead and Griffin, 2001).

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Huo and Boxall (2018) proposed in their studies that high-progressive work practices yields to lower
turnover rate and high job satisfaction Turnover is generally regarded as the number of employees leaving
the job. HRM practices and policies also increase appraisements, for instance provision of financial
incentives and opportunities of formal trainings enhances organizational output (Brown & Hewood, 2005).
Mobley (1978) suggested that the intentions can fluctuate from the influence of an affiliation between job
satisfaction and turnover. Majority of investigators accepts the fact that turnover intent is the last step of
intentional turnover Mahmud and Idrish (2011).
Theory and Conceptual Framework

While there are several theories relating Job satisfaction and HR practices, we chose Human Capital theory
and Efficiency Wage theory. Human capital theory (Blaug, 1976) suggests that organizations invest in
human capital to retain talented employees. They develop internal resources to justify employee skills for
future productivity. Employments opportunities can be internalized or externalized accordingly based on
the HR practices operating to achieve better productivity. Therefore important practices such as training,
and employee participation may affect job satisfaction and turnover ratios.
In line with this, Efficiency wage theory (Akerlof, 1984) suggests that turnover ratio may be strongly
related to pay practices and performance appraisal system in order to maintain efficiency in organizations.
Based on the literature, our research framework is shown in figure 1. The model depicts a relationship
between HRM practices, turnover and job satisfaction. The HRM practices acts as an independent variable
(IDV) whereas turnover and job satisfaction reflects dependency on HRM practices. Hence they are
dependent variables (DV).
Personnel Practices (Ind. Variables) Dependent Variables
EMPLOYEE
PARTICIPATION
JOB SATISFACTION
TRAINING
TURNOVER
PERFORMANCE
APPRAISAL SYSTEM
Figure 1: An association of HRM practices, Job satisfaction and Turnover
The variables that are considered in this research include HRM practices (performance appraisal system,
training and employee participation), job satisfaction and turnover.
Hypothesis
On the bases of the above literature the following hypothesis are developed for investigation.
H1: There will be a compelling association between employee participation and turnover.

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H2: There will be a compelling association between training and turnover.

H3: There will be a significant association between Performance appraisal system and turnover.
H4: There will be a compelling relationship between employee participation and job satisfaction.
H5: There will be a significant relationship between training and job satisfaction.
H6: There will be a compelling relationship between performance appraisal system and job satisfaction.
Research Methodology
Sample and Data Collection
The research is based on taking into account all major sector universities operating in the province of KP.
Hence all universities are taken as the universe of study. There were 2 participant private and 4 public
sector universities namely Sarhad University, Iqra National University (INU), Peshawar University,
Malakand University, Kohat University and Bannu University. These universities were selected to
constitute a relatively representative sample of cities where there were increased incidences of terrorism
and unrest in the recent past. Other universities such as IMSciences could not be surveyed because of time
and scope limitations as private ones are already represented by the two leading KP universities.
The sample consisted of 125 teachers of the above mentioned reputable institutions. Each university was
represented by about 20 participant faculty members. Effort was ensured to survey both social science
departments (such as Sociology, Management Studies dept) as well as technical subjects (such as Computer
Sci. department).
The instrument used was a Questionnaire designed on the basis of existing scales and constructs. This
questionnaire was distributed through physically administered survey in each participating university. The
process of data collection was performed with the support of colleagues in sister universities which ensured
maximum returned and filled questionnaires.
Statistical Model and Conceptual Framework
The representation is on the basis of ratios and percentages because the variables used were of subjective
nature. The statistical package for Social Sciences (SPSS) has been used for interpretation of the collected
data. For establishment of relativity in between defined variables which include employee participation,
performance appraisal system, job satisfaction, training and turnover, the statistical techniques of
correlation and regression are used. Regression analysis incorporates methods for modelling and analysing
different dependent and independent variables. It can mathematically be expressed as
Y=Bo + B1X +...................+e
The equation showing relationship between job satisfaction, employee participation, training and
performance appraisal.
Job satisfaction= Bo +B1(EP) +B2(T) + B3(PA)+........................e
Where,
EP represents Employee Participation
T represents training
PA represents Performance Appraisal
E represents the error term
And B1 , B2 and B3 represents the coefficients of regression.

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The equation defining the relationship between turnover, employee participation, training and performance
appraisal.
Turnover= Bo +B1(EP) +B2(T) + B3(PA)+........................e
EP represents employee participation

T represents training
PA represents performance appraisal
E represents the error term
And B1 , B2 and B3 represents the coefficients of regression
Constructs and Measures
All of related constructs along with their measuring techniques are discussed below:
HR Practices
The HRM practices reflect a positive relationship between organizational innovation, product innovation,
process innovation and administrative innovation. HRM practices were measured using 5-items Likert scale
ranging from 1 to 5 and representing two extreme ends of „strongly agree‟ and „strongly disagree‟
respectively.
Job Satisfaction
Job satisfaction is an integral part of HR practices as it influences and motivates employee to contribute to
the fullest in the productivity and effectiveness of an organization. Job satisfaction was measured on 6-item
scale formulated by Agho, Price and Mueller (1992). Each individual component was measured on 5-item
Likert scale ranging from 1 (Strongly agree) to 5 (Strongly disagree).
Employee turnover:
The term refers to the ratio of workers left and replaced by the new workers. This construct has been
measured by a 3-items scale invented by Vigoda in 1990. The scale ranging from 1 (Strongly disagree) to 5
(Strongly agree) has been used.
Analysis and Results

Correlation analysis between HRM practices, job satisfaction and turnover
Table 1:- Pearson correlation with respect to age,

designation, job experience and income
Gender. Age. Design. Experience. Income.
Gender. 1.
Age. O.O52 1
Design. O.O44 O.495** 1.

Experience. O.OO3 O.667** O.443** 1.
Income. O.O56 O.557** O.548** O.396** 1.

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Table 2:- Pearson correlation with respect to dependent and independent variables
Employee Training& Performance Job Employee
Contribution Induction Appraisal Satisfaction Turnover
System
Employee 1
Contribution
Training& O.496** 1
Induction
Per. app system O.6O4** O.6O1** 1
Work O.713** O.554** O.679** 1

satisfaction
Emp. turnover -O.422** -O.218* -0.412** -O.526** 1
* Significance at O.O5 level (two-tailed)
**Significance at O.O1 level (two-tailed)
Pearson Coefficient is a statistical tool for measuring the linear correlation between two variables X and Y,
giving a value between +1 and −1 inclusive, where 1 is total positive correlation, 0 is no correlation, and −1
is total negative correlation. Table 1 and 2 demonstrates the Pearson Correlation Coefficient for the
researched variables and is utilized to compare the mean in accordance with the designated demographic
variables and all the other key factors with the confidence interval of (p<0.01). The assumptions made
about the variables correlation were stand significant having value less than 0.01 except one counted as –
0.218*. The negative sign is an indication of diminished turnover if the worker is provided with significant
appraisal system, is cooperative, well equipped with his skills and is happy with the working environment.
In the research paper the stark on the figure symbolizes the significance of correlation w.r.t the achieved
confidence interval which in our case is (P<0.05).
Inspecting Reliability
To understanding the reliability factor of this investigation, we performed reliability analysis technique
using SPSS. Table. 3 presents the results of each dependent/independent variable. The interpretation
considers five distinguished variables including Employee contribution, Training& Induction, Performance
appraisal criteria, Job satisfaction and employee‟s turnover in accordance to a cut-off value of Cronbach‟s
alpha of 0.7 as suggested by Week (2000), and Cronbach (1951).
Table 3: Results of reliability analysis of variables

Variable Cronbach‟s alpha Remarks
Worker‟s Contribution O.794 Reliable
Training & Induction O.839 Reliable
Performance Appraisal System O.822 Reliable
Job Satisfaction O.811 Reliable
Turnover O.854 Reliable
From above depicted table it is clear that employee participation is interpreted as the least reliable variable
by possessing the Cronbach‟s alpha of 0.794. Whereas all the other consecutive variables including
training, performance appraisal system, job satisfaction and employee turnover possess reliability in the
order of 0.839, O.822, 0.811 and O.854 respectively. Thus all variables qualify in the acceptable range of
Cronbach‟s alpha which makes the authenticity of data quite reliable and assures provision of exhibitive
and helpful framework.

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Distributing respondents with respect to employee contribution, training, performance appraisal, job
satisfaction and turnover.
The respondents are distributed with respect to the factors including employee contribution, training,
performance appraisal system, job contentment/satisfaction and turnover. All of them are studied
individually along with the tabular analysis to get a clearer picture.
Table 4: distribution of respondents with respect to employee contribution

S. Item Employee Perception MAS
No 1. 2. 3. 4. 5.
1 You are a good contributor in your 6. 5. 17. 66. 31. 3.8881
institution‟s affairs (4.9) (4.1) (13.7) (52.9) (24.9)
2 You are zealous regarding employment 1 10 28 62 24 3.7840
at your present institution. (0.8) (8.0) (22.4) (49.6) (19.2)
3 You show concern in making 26 49 18 25 7 2.5040
decisions/policies at your institution. (20.8) (39.2) (14.4) (20.0) (5.6)
4 Your institution provides you an 30 34 17 38 6 2.6480
opportunity to contribute in the (24.0) (27.2) (13.6) (30.4) (4.8)
formulation of academic policy.
5 Your University gives you an 27 35 29 23 11 2.6480
opportunity to practice leadership (21.6) (28.0) (23.2) (18.4) (8.8)
skills.
6 Your university work place supports 11 18 25 56 15 3.3680
team oriented working practices. (8.8) (14.4) (20.0) (44.8) (12.0)
7 Your institution welcomes creative 27 34 24 31 9 2.6880
feedback and suggestions of (21.6) (27.2) (19.2) (24.8) (7.2)
instructors.
Aggregate Mean 3.0755
1 = strongly Disagree, 2 = Disagree, 3 = neutral, 4 = Agree, 5 = strongly Agree; MAS = mean average
score
Table 4 shows that majority of the respondents lie in the 4 th part of the Likert Scale. The result directs that
the respondents from the universities of KP are in favour of employee contribution. The perception reflects
a positive behaviour of employees which can finally be seen in the self-fulfilment and turnover. These
findings are based on MAS (mean average scores) calculated by taking statistical averages of all items
involved.
On the other hand a substantial number of respondents with neutral perception can also be seen along with
some having negative perceptions. The evaluation of items 2, 6 and 1 reflects the approval of the relevant
perception as the MAS for that particular category is greater than 3. However items 3, 4, 5, and 7 with
MAS<3 reflects a negative perception indicating a disagreement of employees about positive employee‟s
participation. The greatest MAS (3.8881) have been observed for item stating respondents‟ contribution
towards their job which results in greater satisfaction and diminished employee turnover.
Item 2 on the other hand depicts MAS (3.7840) which enlightens the zeal of employees towards their
workplace resulting in greater satisfaction and fewer intentions to leave the job. Followed by the category 6
with MAS (3.3680) which demonstrates the agreeableness of respondents towards their work and working
environment in general. MAS (2.6880), MAS (2.5040), MAS (2.6480) highlights the idea of innovative
feedback acceptance, involvement in strategic decision making, chance to show leadership qualities and

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involvement in general policy formulation. All of them are responsible for noticeable employee satisfaction
and turnover. Items 7, 3, 4 and 5 however represents negative recording of perception.
The overall MAS value (3.075) though represents a positive feedback given by respondents in accordance
with their participation, satisfaction and turnover. In addition, generally it is observed that greater
empowerment, and involvement usually acts as motivational factors. A person will show greater
enthusiasm towards work or will act more participative if he will get a chance to think good/bad for the
organizations and a free hand to make decisions accordingly.
With respect to Training
Training plays a crucial part in employee‟s growth and satisfaction as it opens uncountable doors of success
and polish work with unmatchable skills. Table 5 illustrates the distribution criteria w.r.t training.
Table 5: Distribution of respondents with respect to training

S.No Item Employee Perception MAS
1. 2. 3. 4. 5.
1 You can avail before-service 43 41 18 17 6 2.2160
assistance at your University (34.4) (32.8) (14.4) (13.6) (4.8)
2 Lecturers can benefit from 38 46 16 16 9 2.2960
innovative training at your (30.4) (36.8) (12.8) (12.8) (7.2)
University
3 Fresh Lecturers can benefit from 26 39 19 25 16 2.7280
on-job training at your University (20.8) (31.2) (15.2) (20.0) (12.8)
4 Your University gives Inter- 36 52 16 19 2 2.1920
personal improvement assistance (28.8) (41.6) (12.8) (15.2) (1.6)
for instructors.
5 Your University provides 41 50 12 19 3 2.1440
imperative guidance to the (32.8) (40.0) (9.6) (15.2) (2.4)
Instructors.
score
The findings inferred in table 5 indicate respondents‟ perception w.r.t Training whereby most of the asked
queries regarding Training lie in the second category of Likert Scale. The conclusions depicts that the
teachers from the selected Universities are against the process of giving training by their relevant
organizations. This negative perception will ultimately affect employees overall satisfaction and turnover.
In the same way, there are employees with positive perception towards the concept too while teachers with
neutral perception may also be seen. If we analyze in detail, it is obvious that item 4 having maximum
percentage of 41.6% lies within second category of Likert scale representing majority of teachers taking up
the inter-personal guidance at their relevant universities. Item 5 again with 40% reveals the absence of
strategic training at their working place. On the other hand items 2, 3 and 4 indicates negative perception
regarding pre-service, innovative and on-job training. The aggregate MAS reflect negativity in perception
regarding training and guidance manuals of the educational institutions. The negative perception thus
reflects disappointment in teacher‟s behavior with regard to provision of training methodologies. In short
the lack of training opportunities will raise the feeling of discouragement and demotivation amongst
employees. They will see no ways via which they can enhance their current skills. The final impact can be
seen in their job satisfaction feedback which for sure will reflect this lacking and increased employee
turnover.

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With respect to Performance Appraisal System
It is associated with human nature that he/she must be influenced by the encouragement and compensation
they receive in return of services they offer. The perceptions may differ though. Some prefer monetary
appraisals while some shows more attraction if provided with non-monetary benefits including promotions
and more working empowerment.
From Table 6, the negative perception regarding appraisals can be seen. The feedback from the second
category of Likert Scale apparently reveals that the average number of universities operating in KP is not
efficient enough with their employee compensation plans. The impact can be observed by job satisfaction
and employee‟s turnover criterion. Item number 4 though indicates an exception with percentage yield of
36.0 and shows positive perception as it is within the fourth category of Likert Scale. The maximum
percentage is the proof that evaluation is thoroughly done in all the institutes of KPS. Surprisingly the
second highest figure 32.8 with items 2 and 5 indicates negative perception and lies in the second category
of Likert Scale. This percentage asserts the investigated institutions seem productive in their response and
appraisals given to the lecturers. The percentages 32.0 and 30.5 are in particular for items 1 and 3 which
again assert lacking in reward and promotion systems. Hence the aggregate MAS relative to the figure
2.7964 confirm the absence of proactive appraisal systems based on merit and concrete performance.
Conclusively, in order to attain reduction in turnover and to enhance teacher‟s output it is mandatory to
remunerate them according to their skills and performance.
Table 6: Distribution of respondents with respect to performance appraisal

1. 2. 3. 4. 5.
1 Your university provides planned 27 40 25 28 5 2.5520
returns to you. (21.6) (32.0) (20.0) (22.4) (4.0)
2 The management uplifts you on 21 41 28 31 4 2.6460
achieving the set targets and rewards (16.8) (32.8) (22.4) (24.8) (3.2)
you accordingly.
3 Promotions are given on pure merit. 20 38 30 30 7 2.7280
(16.0) (30.4) (24.0) (24.0) (5.6)
4 Performance evaluation is the regular 9 17 33 45 21
3.4160
part of the process. (7.2) (13.6) (26.4) (36.0) (16.8)
5 Lecturers are given appraisals 27 41 21 22 14
2.6400
according to their output. (21.6) (32.8) (16.8) (17.6) (11.2)
score
With respect to Job Satisfaction
Job satisfaction plays a crucial role in employee‟s satisfaction, productivity and employees turnover. A
worker satisfied with his/her working conditions, satisfied with the received financial/non-financial
appraisals and the overall response of an organization towards his/her work will impact strongly on the
outcome of an organization.
Table 7 demonstrates the affirmative feedback of respondents in accordance of their job contentment. The
maximum percentage (55.2%) is observed for third number item which is visible in Likert scale‟s fourth
category, this elaborates that the relational aspect of an employee towards other subordinates is satisfactory.
46.4 is the second highest percentage observed which is for number 1 item, visible in the Likert scale‟s
fourth category that indicates that majority of respondents are actually contented with their organization.

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The aggregate MAS (3.18) depicts a positive feedback of workers which shows that they are happy with
their working environment and the reimbursements. Other relevant queries including interpersonal
relations, overall contentment and work opportunities also reflected the efficiency of management towards
their goals. Hence, if dealt with consistency and wisdom, the motive of increased satisfaction and reduced
turnover can be successfully attained.
Table 7: Distribution of respondents with respect to job satisfaction

1. 2. 3. 4. 5.
1 You are contented with your work at your 6 20 22 58 19 3.5120
workplace. (4.8) (16.0) (17.6) (46.4) (15.2)
2 You are contented with your Management. 14 35 25 40 11 2.9920
(11.2) (28.0) (20.0) (32.0) (8.8)
3 You are contented with your affiliation with 4 6 12 69 3.984034
your subordinates at your workplace. (3.2) (4.8) (9.6) (55.2) (27.2)
4 You are contented with remuneration at 21 34 26 34 2.824010
University. (16.8) (27.2) (20.8) (27.2) (8.0)
5 You are contented with the available career 20 48 17 34 2.6640 6
development opportunities at your (16.0) (38.4) (13.6) (27.2) (4.8)
workplace.
6 All-inclusive there is contentment on your 15 24 28 46 12 3.1280
part at University. (12.0) (19.2) (22.4) (36.8) (9.6)
score
With respect of Turnover
Turnover also plays an important role in organization‟s overall success and productivity. A firm showing
rising trend towards turnover reflects inefficient HR practices. Table 8 demonstrates the concept with
respect of the study taken into account.
Table 8: Distribution of respondents with respect to turnover

1. 2. 3. 4. 5.
1. You often consider leaving current job. 8. 31. 31. 32. 23. 3.2481
(6.5) (24.9) (24.9) (25.7.) (18.5)
2. Next year you will join some other place to 9 19 26 45 26 3.4800
work. (7.2) (15.2) (20.8) (36.0) (20.8)
3. Recently, you are interested in various job 11 20 20 39 35 3.5360
offers in newspapers. (8.8) (16.0) (16.0) (31.2) (28.0)
score
Table 8 again demonstrates positive feedback of respondents with respect to the turnover. The maximum
percentage can be seen for item number 2 which is 36.0% and visible in Likert scale‟s fourth category,
indicates that workers are looking for new opportunities around them. The second highest percentage seen
so far is 31.2% representing item number 3 and lies in the fourth category of Likert scale indicating that
workers are referring to the newspapers to search the new opportunities. 25.6% represents item number 1
and can be seen in the fourth category of Likert scale indicating the increased willingness of employees to

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change their workplace. In general the analysis depicts the positive perception and intention of employees
to leave/change their current jobs with MAS of 3.421.
The aggregate MAS of turnover though illustrated the positive feedback, but the negativity in responses
indicates that instructors would love to change their jobs if they get a chance. The organizations thus need
to revise their HR policies which are influencing their employees to get motivated towards other more
attractive offerings. In short if universities make sure to take an initiative of improvement and tries to retain
their teachers with more rewards/promotions, , there would be fewer chances that instructors will change
their workplaces.
Overall MASS of Variables
Table 9 demonstrates aggregate MAS of HR practices including employee participation, training and
induction and appraisal system along with employee turnover and job satisfaction. As mentioned above,
some of the asked queries were replied negatively.
MAS reflecting these queries thus represents the „strongly agree‟ or „strongly disagree‟ approaches of
employees. The overall MAS as can be seen are slightly below 3. The overall perception of respondents
was quite satisfactory except for two variables i.e. Performance appraisal systems and training and
induction.
Table 9: MAS of variables

Attributes. Mean Average Score (MAS)
Worker‟s contribution. 3.O754
Training & Induction. 2.3153
Performance appraisal system. 2.7965
Work contentment. 3.1841
Turnover. 3.4214
Regression Results and Discussion

The software of regression analysis SPSS v. 20 was used for assessment of causal regression between
dependent and independent variables. In particular, the influences of HR practices such as employee
contribution, job contentment and turnover were thoroughly analyzed. It is perceptible as data investigated
was largely cross sectional in nature therefore the value of coefficient is anticipated to come low. Due to
this reason the basic dependency is on f-value, and p-value.
Table 10. Regression Analysis between Dependent and Independent Variables

Ind. Variables Dependent Variables
Job satisfaction Turnover intention
β R² ΔR² F β R² ΔR² F
Emp. contribution .713*** .507** .407 49.56* -.422** .178*** .124 6.33**
Training & C. dev. .553** .305** .417 54.04*** -.219*** .048** .033 6.168*
Per. Appraisal 104.9** -.412** .168* .094 24.9*
.679** .461* .382
system
* p < .05
**p<.01
***p<.001

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Table 10 shows regression analysis for the effects of employee contribution, training & development, and
performance appraisal system upon Job satisfaction and Turnover intention. Hypotheses were tested by
employing standard multiple regression using SPSS version 20. This research did not take demographics as
control variables in our study as they have not proven to substantially affect the selected dependent
variables. The regression measures the degree of variation in dependent variable brought about by
independent variable.
The result for the first independent variable i.e. employee contribution shows that the β value for Jobs
satisfaction is .713 while the total variance in job satisfaction explained by employee contribution is 50 %,
F (4, 125) = 49.56. On the other hand, employee contribution showed an inverse relation with job turnover.
In this case, the β value is -.422 while the total variance in Turnover intention explained by employee
contribution is 17 %, F (4, 125) = 26.42. These calculations provide sufficient evidence regarding
employee contribution that has significant negative causation toward turnover. This implies that if workers
are empowered to contribute in university affairs, they will be more satisfied and would least look at other
options such as to quit.. In other words, lesser employee participation will encourage employees to quit
their jobs and turnover ratio might increase drastically.
This evaluation clearly illustrates that the employee participation is a key contributor in enhancement of
workers satisfaction. Contribution of workers increases workers motivation and faithfulness, which
ultimately influences organization to achieve its goals successfully (khan et al., 2012). In similar vein,
Scott, Bishop and Chen (2003) also assert that work satisfaction plays the role of intermediary between the
ingredients of contributory and conducive working environment and worker‟s initiative to work
professionally with other colleagues.
The second set of independent variable i.e. Training & career development shows that the β value for Jobs
satisfaction is .553 while the total variance in job satisfaction explained by employee contribution is 30%,
F (4, 125) = 54.04. The affiliation between employee‟s satisfaction and training were discussed several
times in previous researches too. Bradley, Petrescu and Simmons (2004) assert that training and induction
has quite significant influences on overall HR practices. Their investigation also reveals that training
enhances working abilities of an individual that ultimately affect the overall productivity of an
organization.
Similarly, our analysis finds an inverse relation of Training & development with Turnover intention. The β
value is -.219 while the total variance in Turnover intetnion explained by employee contribution is 4%, F
(4, 125) = 6.16. The R- square for turnover is 0.48 that indicates a very less training impact on turnover
intention. The inferences drawn thus depict that if provided with progressive career development options
and trainings, employees will intent less to leave their current jobs. In a similar vein, Batt and Valcour
(2003) investigated that high-participative practices including collaboration, anatomy and training and
inductions would lead to less turnover and increased output.
The third independent variable is Performance appraisal system. Table 10 shows that the β value for Jobs
satisfaction is .679 while the total variance in job satisfaction explained by employee contribution is 46%,
F (4, 125) = 104.9. This high yield of percentage depicts that if workers are provided with a rigorous
appraisal system, they will be expected to display greater motivation and job satisfaction levels. This
finding is in line with contemporary research where for instance, Karimi et al. (2011) examined affiliation
of worker‟s performance appraisal with satisfaction of employees and found a positive affiliation between
the two.
Lastly, Performance appraisal system shows an inverse relation with that of Turnover intention. The
corresponding figure shows that the β value for Turnover intention is -.412 while the total variance in
Turnover intention explained by employee contribution is 16%, F (4, 125) = 24.9. From the above
interpreted calculations, sufficient base is allocated to performance appraisal directing employee turnover

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that is negative and significant. The calculated R- square is 0.168 which shows that there is around 17%
change brought about by appraisal system in employee‟s turnover. This result infers that a stronger
appraisal system will tend to lower the turnover rates among University employees. It should be noted here
that these findings are based on presumption of fair, nepotism-free appraisal system which is expected to
enhance employee‟s productivity and overall satisfaction.
Implications, Limitations and Conclusion

In line with previous research on job satisfaction, this research too finds existence of significant
relationship between employees‟ job satisfaction and employee turnover with that of several HRM
practices. Nevertheless, this relationship is found in a unique context of KP where a number of factors such
as terrorism, disasters, and deadly diseases have worsened security conditions thus exacerbating
employees‟ satisfaction among universities in general. The results revealed that an average of 70% increase
in job satisfaction and turnover is brought about by selected HR strategies like employee contribution, skill
refinement, and performance appraisement system. This on the other hand confirmed the dependability of
the data collection. The conclusion drawn after the statistical analysis of facts and figures is that there is an
affirmative strong relation between HR strategies and contentment of employees in Pakistan (Ahmed et al.,
2017) yet an adverse effect of HR strategies was found over the financial yield of professors of private and
public sector universities of Peshawar and neighbouring cities.
The results reveal that the professors of Universities of KP are passionate and enthusiastic to contribute in
the university at their level best. They would only be able to contribute strongly if the prevalent HR
practices are favourable and employee-friendly. Nevertheless in practice, most universities fail to provide
proper skills refinement, opportunities and performance appraisal system to the teaching community.
This kind of misconduct from the university side is bearing a negative impact on contentment of their
employees and consequently, they are being pushed towards quitting the jobs or alternate job opportunities.
It is observed that several foreign qualified professors of universities in KP have tried to move to national
institutions in Islamabad, Lahore and Karachi. In order to achieve optimum performance, universities must
adopt specific HR strategies adequately and competently. It is also concluded from the figures that to make
your employees contented and devoted towards universities, performance appraisal and HR strategies (such
as employee contribution and employee training) must be applied efficiently and effectively. This is in line
with Kampkotter (2017).
The current research therefore bears widespread implications for HR strategies and policies in a special and
troublesome context of higher educational institutions of KP. First, the KP universities should make best
possible use of HRM strategies and policies in order to derive maximum performance and retain employee
turnover. Second, the stakeholders should focus on enhancing job satisfaction and reducing turnover to
combat the negative perceptions in prevailing situations of terrorism and chaos in KP. It has been observed
that faculty members in KP and Pakistan in general try to settle in any possible foreign universities in
middle-east, Europe and North-America in an escape from terrorism and insecurity. This research offers a
viable strategy, amongst many other effective ones to overcome the problem of brain-drain from important
academic positions in the region. Third, the theoretical association of HR practices and job outcomes has
shown diverging results to those of prior research.
Finally, this study has had several limitations too which are to be overcome by future researchers. For
instance, the sample size needs to be increased manifold so that wider generalizations can be offered. It will
be better to include non-teaching staff to examine their levels of satisfaction and turnover. Other important
variables relating to HR practices might need be incorporated in future. Finally, future research may also
consider comparing the results across other cities of Pakistan and international borders.

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Impact of HR Practices on Employee Turnover and Job Satisfaction: Evidence

Article · September 2020

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R International Review of Management and Business Research Vol. 9 Issue.3

Impact of HR Practices on Employee Turnover and Job

Dr. ALI MUHAMMAD

Prof. Dr. SHAFIQ UR REHMAN

Keywords: HR Practices, Job satisfaction, Turnover, Performance Appraisal, Employee Participation.

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Review of Literature and Hypotheses

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Theory and Conceptual Framework

Personnel Practices (Ind. Variables) Dependent Variables

Figure 1: An association of HRM practices, Job satisfaction and Turnover

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H2: There will be a compelling association between training and turnover.

Statistical Model and Conceptual Framework

Y=Bo + B1X +...................+e

Job satisfaction= Bo +B1(EP) +B2(T) + B3(PA)+........................e

EP represents Employee Participation

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Turnover= Bo +B1(EP) +B2(T) + B3(PA)+........................e

EP represents employee participation

Constructs and Measures

Analysis and Results

Table 1:- Pearson correlation with respect to age,

Design. O.O44 O.495** 1.

Income. O.O56 O.557** O.548** O.396** 1.

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Per. app system O.6O4** O.6O1** 1

Work O.713** O.554** O.679** 1

Table 3: Results of reliability analysis of variables

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Table 4: distribution of respondents with respect to employee contribution

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With respect to Training

Table 5: Distribution of respondents with respect to training

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With respect to Performance Appraisal System

Table 6: Distribution of respondents with respect to performance appraisal

With respect to Job Satisfaction

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Table 7: Distribution of respondents with respect to job satisfaction

With respect of Turnover

Table 8: Distribution of respondents with respect to turnover

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Overall MASS of Variables

Income. O.O56 O.557 O.548 O.396** 1.

Per. app system O.6O4 O.6O1 1

Work O.713 O.554 O.679** 1