Human Resource Management Practices and Organizational Performance in Pharmaceutical Companies of Nepal

This book entitled: "Human Resource Management Practices and Organizational Performance in Pharmaceutical Companies of Nepal" is an outcome of research in the field of human resource management in the Nepalese context. The purpose of this book is to present the realities of human resource management practices in pharmaceutical companies and the organizational performance of these companies. This book is useful for industry practitioners and students of management discipline. This research aims to examine the HRM practices (human resource planning selection, training, performance appraisal, and career planning, compensation, and employee participation) of pharmaceutical companies of Nepal and to what extent do these practices contribute to organizational performance. This research also intends to assess whether knowledge management and learning organizational play a moderating role in between best HRM practices and organizational performance in the Nepalese context or not.

To achieve the research objectives, a set of research questions were developed for collecting opinions and the research hypotheses were made to explore the opinions of employees of the pharmaceutical industries. The self-administered questionnaires had been distributed to employees working in different pharmaceutical industries. The study had followed a quantitative research method. For the study purpose, a descriptive research design was used. Descriptive statistical tools such as frequencies, mean, standard deviation were used to assess the perception of organizational performance and employee work outcomes. Similarly, correlation coefficient and regression were used as statistical tools. To prove the assumptions of the regression model, the Kolmogorov Smirnov test is used for normality test and multicollinearity is tested using collinearity statistics (VIF). Factor analysis and some of the inferential statistics such as Analysis of Variance (ANOVA), were used to analyze the data. A purposive sampling technique was followed to gather the perceptions of the respondents. This study had covered 47 pharmaceutical industries. The total sample size of respondents was 576.

The findings indicate that high levels of Human Resource Planning practices are accompanied by HR selection, employee engagement, compensation, performance appraisal, and career planning, as calculated by the mean value. The lowest mean of training, on the other hand, reveals a low standard of training practices among Nepalese employees. The results show that the perception of the employees in terms of financial performance and non-financial performance in terms of quality and customer satisfaction is higher than financial performance among Nepalese pharmaceutical companies. The knowledge management practice and learning organization perspectives were an average level in all surveyed companies.

The study found that there was a significant correlation between all indicators of HRM practices with financial and non-financial performance, knowledge management (KM) with the organizational performance, learning organization (LO) with the organizational performance. The KM and LO could play a moderating role in the relationship between the HRM practices and organizational performance. In this situation, the LO had a more effective role than KM.

Finally, the study found that there was a moderate level of HRP practices as well as organizational performance in the selected pharmaceutical companies of Nepal. The very less effect and contribution of HRM practices, KM and LO were observed from the study. The result is moderately satisfactory so it strongly recommends improving all the indicators of human resource management practices, knowledge management, and learning organization for the betterment of organizational performance.