BUSINESS RESEARCH METHODOLOGY

PRESENTED TO
Prof. Farooq Hussain

PRESENTED BY Adil Pervaze L1F11MBAM1090

Section: C

Abstract

The basic aim of the study is to show the impact organizational culture, organizational learning, innovation and competitive advantage on human resource management. In this study it is shown that how these factors affect the organization and how changes significantly occurred inside the organization. According to hr point of view if hr professional competences are used to manage the effect of these factors then there should be a productive and competitive environment is established. If HRM is applied by competent managers, by proper learning process, by introducing new innovative ideas, by building entrepreneur skills in the employees, by encouraging their individual performance, then there should be positive change in the culture and work performance of employees and organization can achieve good productivity level.

Introduction
The topic of discussion is the impact of organizational culture, organizational learning, innovation, competitive advantage and entrepreneurship on human resource management. As we can see that the whole world is global village and there is a rapid increase in the trends of globalization. By the increase in the advancement of telecommunication media globalization is expanding day by day and information sharing is becoming a common trend through internet and different mass media. According to this topic of discussion, organizational culture effects human resource management by the impact of socio-cultural environment. Both the socio-cultural environment and the work place cultural environment effects the human resource management. In the same way organizational learning effects human resource management by the increase in different learning trends in the organization. Learning of different skills and ideas in organizations affects HRM practices in an organization positively. HRM is also influenced by different innovative ideas, management introduces different kind of innovative ideas to improve their hr practices in order make effective their hr practices. This can be done by making technological changes or by introducing new and innovative ideas. Organizations have to meet competitive advantage in order to compete in the industry in which they are working. For achieving competitive advantage they have to enhance their hr policies and practices. For this they always study their competitors strategies and policies so by this way competitive advantage also effects human resource management. Management also works to build entrepreneurship skills in their employees in order take effective decisions for the progress of their organization. For management enhances their hr department in order to train their employees up to the level of building entrepreneurship skills in their employees All of these factors human resource management in a positive manner. So we can see that organizational culture, organizational learning, innovation, competitive advantage and entrepreneurship skills effects human resource management and they all act as independent variable and human resource management acts as a dependent variable.

If we want to see the practical application of this process we have to see the HRM department of any organization. It totally depends upon the management that how they manage their different skills and abilities to understand, manage, balance and promote different strategies in their organizations. It depends upon management that how that how they manage power and status in the organization.

To promote and make effective human resource management in the organization there certain factors which play important role. These factors are culture and values, economic system, political system and human capital. To make effective human resource management in an organization management firstly have to promote diversity in the culture of the organization. Diversity refers to identify value, recognize, appreciate and utilize the exclusive talents and contributions of all individuals in the organization. The major challenges to promote the diversity in the organization are the mental acceptance of different people from different background. Employees always differentiate their culture with other organizations and if any problem exists in their culture then they cannot be able to give performance. Managers should have to impose friendly culture in organization to make friendly and work performing environment. By adopting good hr policies recruitment can be made according to the needs of the organization. Managers hire talented employees who fit their culture. They made proper hiring through performance appraisal system. Management has to introduce different strategies to make their hr policies and practices effective, for this they have make research according to the global standards. Organizational learning is the first step to introduce global strategies in the organizations effectively. To make changes managers firstly need to adopt them these changes, then these changes are introduced to the entire employees of the organization through proper learning process. This learning process can be implemented through different seminars or by conducting different training and development activities. Companies also send their employees in foreign countries in order to train them and adopt certain changes through proper learning process.

Every organization has its own culture. Culture includes values, norms, ethics, rules and regulations. Globalization effects culture in different ways in different perspectives. The main effect of globalization is in the organizations that have diversified culture. The people who belong to different background are treated equally. The organizations that have a diversified culture are mostly affected positively by the globalization. While the other aspects are to adopt different changes in the rules and regulations, ethics, decision making process, organizational hierarchy etc, by getting inspired from foreign organizations. Every organization has its own culture. Culture includes values, norms, ethics, rules and regulations. Globalization effects culture in different ways in different perspectives. The main effect of globalization is in the organizations that have diversified culture. The people who belong to different background are treated equally. The organizations that have a diversified culture are mostly affected positively by the globalization. While the other aspects are to adopt different changes in the rules and regulations, ethics, decision making process, organizational hierarchy etc, by getting inspired from foreign organizations is effect of globalization. In organizations companies train their employees in such a manner, to build entrepreneurial skills in their employees. They encourage their employees to take risk and also motivate them to give innovative ideas and encourage their participation. By the increase in the trend of globalization management always try to make their human resource management department more effective to meet the competitive advantage in the relevant industry. They impose new policies and strategies adopted by different companies this can also involve technological changes. Different strategies set by the managers to impose these policies, because managers always try to impose better policies by studying other organization inside the country and outside the country.

Literature Review

Thus, the manner in which HRM changes are . . . introduced, mediated and handled can lead to different outcomes, so even convergence at the global level in terms of economic forces and technologies . . . may result in divergence at the national and international level, as these forces are mediated by different institutions with their own traditions and cultures said by (Bamber & Lansbury, 1998). In short, despite globalization, varied national HRM systems remain as distinctive political, economic, institutional, and cultural frameworks and features restrict transference and so convergence in HRM. A further issue is that convergence and contingency approaches may operate at different levels of HRM systems, said by (Becker & Gerhart, 1996). Conclusion HRM is affected by different factors in the organization. This effect comes from the intervention of external forces and their influence in the organization. At organizational level HRM is mostly affected by opening of foreign multinational companies in the country. The change in hr policies results to the change in organizational culture and organizational learning. If hr policies are imposed positively and in an effective manner in the organization there should be positive change in the environment. Levels can be distinguished (Becker & Gerhart, 1996) as: one, System Architecture (guiding principles and basic assumptions); two, Policy Alternatives (mix consistent with one and internal/external fit); and three, Practice Process (techniques given appropriate decisions at one). Implementation of best practices may occur at level three, but its effects are contingent upon levels two and one. However, the universal effects on firm performance may be expected at level one, said by (Becker & Gerhart, 1996).

Conclusion The human resource management at national level is effected by the effect of external forces. Changes occur at different level by different ways. These different ways include adopting new innovative changes making new practices related to culture, innovation and developing skills in employees. For management an implication is that there were universal truths, including in HRM, that could be applied everywhere. A central proposition is that because of political, economic, social and technological forces, now including globalization, there is a worldwide tendency for countries, and within them HRM, to become similar as the copying and transfer of practices, sometimes taken as best practices and linked to benchmarking, was encouraged. In short, HRM systems would converge, said by (Peters & Waterman, 1982) Conclusion Changes in HR policies and practices now a day are very fast because study the strategies of other and try to adopt them and this is very rapid process. Management easily adopts the changes and copies the strategies and applies these strategies to their organization. The main source of completive advantage is the development of firm-specific resources that generate knowledge, quality (of products, services and processes), innovation and flexibility, with bundles and packages of consistent, integrated HRM practices and linked to business strategy said by (Dmitrovic & Zupan, 2001). More recently, (Faugoo, 2009) provides cases of organizations (French, German and Indian) employing a resource based view for managing their workforce with employees at the core of organizations. A useful summary of some of the literature in the area of the relationship between HRM and competitive advantage is given in (Vokic & Vidovic, 2001). Thus, the resource-based view suggests HR systems can contribute to competitive advantage by facilitating the development of competencies that are firm-specific and embedded said by (Vokic & Vidovic, 2001).

Conclusion To adopt different hr policies the organization should have availability of human capital. Human capital includes skilled labor, skillful employees. This can only be done by standardizing the recruitment system of the organization and set certain standards for different types of qualification. For now a day for meeting competitive advantage and make some enhancements in the organizations human resource management and human resource development become a very important factor. By managing and developing human resource, companies or organizations can move on the change policy or adoption of technological changes. Both international and product diversification play key roles in the strategic behavior of large firms said by (Hitt, Hoskisson, & Ireland, 1994). Building on the seminal work of Hymer (1960) and Vernon (1966), international management scholars have explored the competitive and performance implications of international diversification said by (Ghoshal, 1987). International diversification may be defined as expansion across the borders of global regions and countries into different geographic locations, or markets, thus, a firm's level of international diversification is reflected by the number of different markets in which it operates and their importance to the firm (as measured, for instance, by the percentage of total sales represented by each market), international business scholars have argued that international diversification is important because it is based on exploiting foreign market opportunities and imperfections through internalization (Rugman, 1981). Conclusion For promoting HRM in organization the first step is to promote diversity in the organization. The culture of the organization should be diversified so that any kind of cultural barrier cannot affect the organization performance and hr practices should be improved. As the globalization of markets increases, managerial interest in understanding adoption processes across countries has led to calls for more academic research on international diffusion (Douglas, 1992).

We argue that global adoption comprises two stages as defined by (Rogers, 1983), which are conceptually different (but related) measures of innovativeness across countries: *the time between an innovation's first availability in the world and its first appearance in a country, that is, the implementation stage, and *the time between the innovation's initial trial in a country and its full adoption or substitution, that is, the confirmation stage. Conclusion Different companies adopt different ways to adopt new trends of globalization; especially managers of organization adopt new procedures to make innovative ideas in order to meet the competitive advantage in the market. They firstly implement these ideas then they make confirmation of these ideas. The meaning of the term "international entrepreneurship" has evolved over the last decade, during which academic interest in the topic has grown. An early definition focused on the international activities of new ventures to the exclusion of established firms (Douglas, 1992). A task force on international issues within the Entrepreneurship Division of the Academy of Management formed during the early 1990s urged that the domain of international entrepreneurship be broad, partly because the topics of relevant inquiry were perceived to be rapidly evolving at the time (Giamartino & Bird, 1993) By the mid-1990s, the international part of international entrepreneurship was becoming more refined. (Wright & Ricks, 1994) said it is firm-level business activity that crosses national borders and that such activity focuses on the relation between businesses and the international environments in which they operate. Therefore, academic work in international business includes the study of business activity that crosses national borders and comparisons of domestic business activity in multiple countries.

Conclusion People are coming with new innovative ideas; they ring new ideas from different cultures and introduce new products in their country. They bring different things from different cultures to make new trend in the market in order to attract the customer, or they introduce their domestic product in the other countries in order change the trend of that particular place and this is the effect of globalization. Different models have been used to analyze globalization in the realm of culture (Crane, 2002): the world-system theory (Wallerstein, 2004) based on the coreperiphery model, the network flows analysis, the reception approach, and cultural policy strategies. Though all of them have proven adequate to describe different aspects of globalization, these models propose different views of the consequences of globalization: the coreperiphery model emphasizes its homogenizing effect, while the network flows analysis lays stress on hybridization and indigenization, and the reception approach reveals patterns of appropriation, negotiation and resistance; the analysis in terms of cultural policy strategies sheds light on the competition between cultural industries and other actors involved in the process (Crane, 2002). As we move into the age of globalization, organizational learning is attracting widespread attention as a critical imperative for global strategic effectiveness (Doz & Williamson., 2001). In the early stage of globalization, organizations need to learn about foreign markets in order to develop globalization strategies. Research shows that organizations which learn efficiently from experiences in foreign markets are able to expand overseas faster with fewer mistakes (Harrigan, 1988). However, organizations often find this type of learning difficult and frustrating (Parkhe, 1991). Conclusion Organizational culture is the main thing which effects hr practices; the managers adopt different strategies to implement new things in the organization to modify the culture of organization. This whole is done through proper learning process. Managers adopt different ways to make learn their employees through making seminars, by conducting indoor and outdoor training sessions and by sending their employees to other countries for advance training. This whole process is now a day has become a common trend among organizations which clearly shows the effect on the performance of the hr department.

Theoretical Frame Work

Type of Research & Scale

The type of my research is quantitative, from secondary data and the scales which are used in research are likert and dichotomous scales.

SPSS WORK
Frequencies Age This table shows the age scale percentage. In the sample size of 150 out of 100 percent 41.3 percent are 21-30, 46.7 percent are 31-40, 10.7 percent are 41-50 and 0.7 percent is 51-60.

Gender The table shows the gender scale. According to this research in the sampling of 150 male are 84.7 percent and female are 15.3 percent.

Experience This table shows the experience scale of the people who have filled the questionnaire. This table shows that out of 150 30 percent is 1-5 years, 34 percent is 6-10 years, 20 percent is 11-15 years, 10.7 percent is 16-20 years and 5.3 percent is 21-25 years.

Correlations
HRM.MEAM C.A.MEAN INN.MEAN HRM.MEAM Pearson Correlation Sig. (2-tailed) N C.A.MEAN Pearson Correlation Sig. (2-tailed) N INN.MEAN Pearson Correlation Sig. (2-tailed) N O.C.MEAN Pearson Correlation Sig. (2-tailed) N O.L.MEAN Pearson Correlation Sig. (2-tailed) N ENTP.MEAN Pearson Correlation Sig. (2-tailed) N 150 .328
**

O.C.MEAN .277
**

O.L.MEAN ENTP.MEAN .281

**

.328

**

.255

**

.191

.000 150 1

.002 150 .176

*

.001 150 .207

*

.001 150 .237

**

.019 150 .181

*

.000 150 .255

**

.031 150 .176

*

.011 150 .666

**

.003 150 .648

**

.027 150 .643

**

150 1

.002 150 .277

**

.031 150 .207

*

.000 150 .666

**

.000 150 .693

**

.000 150 .716

**

150 1

.001 150 .281

**

.011 150 .237

**

.000 150 .648

**

.000 150 .693

**

.000 150 .702

**

150 1

.001 150 .191

*

.003 150 .181

*

.000 150 .643

**

.000 150 .716

**

.000 150 .702

**

150 1

.019 150

.027 150

.000 150

.000 150

.000 150 150

CORRELATION
Competitive Advantage: For C.A, HRM contributes at 0.328 with the correlation significance at 0.00. This shows the positive relationship of C.A and HRM. Innovation: For INN, HRM contributes at 0.255 with the correlation significance at 0.002. This shows the positive relationship of Innovation and HRM. Organizational Culture: For O.C, HRM contributes at 0.277 with the correlation significance at 0.001. This shows the positive relationship of Organizational Culture and HRM. Organizational Learning: For O.L, HRM contributes at 0.281 with the correlation significance at 0.281. This shows the positive relationship of Organizational Culture and HRM. Entrepreneurship: For ENTP, HRM contributes at 0.191 with the correlation significance at 0.19. This shows the positive relationship of Entrepreneurship and HRM.

Conclusion
All variables show the positive relationship with HRM with the different significance levels. The significance is less than one but it is positive which shows the positive effect of all variables on HRM. This shows that variables functioning accurately and will be more appropriate with more analysis.

Linear Regression
Competitive Advantage and HRM
Variables Entered/Removed Model 1 Variables Entered C.A.MEAN
a b

Variables Removed

Method . Enter

a. All requested variables entered. b. Dependent Variable: HRM.MEAM

Model Summary Adjusted R Model 1 R .328

a

Std. Error of the Estimate

R Square .107

Square .101

.24395

a. Predictors: (Constant), C.A.MEAN ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), C.A.MEAN b. Dependent Variable: HRM.MEAM Sum of Squares 1.060 8.807 9.868 df 1 148 149
b

Mean Square 1.060 .060

F 17.817

Sig. .000
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) C.A.MEAN B .762 .358 Std. Error .101 .085 .328 Coefficients Beta t 7.515 4.221 Sig. .000 .000

a. Dependent Variable: HRM.MEAM

This model gives the value of regression which is 0.328. The R square is 0.107 which is not closer to 1 which shows that independent variable has less effect on dependent variable, but the difference between R square and adjusted R square is very less, which shows that independent variables have positive effect on HRM. Whereas R square is 0.107 and adjusted R square is 0.101 and the significance is 0.00.

Innovation and HRM

Variables Entered/Removed Variables Model 1 Entered INN.MEAN

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: HRM.MEAM

Model Summary Adjusted R Model 1 R .255

a

Std. Error of the Estimate

R Square .065

Square .059

.24967

a. Predictors: (Constant), INN.MEAN

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), INN.MEAN b. Dependent Variable: HRM.MEAM Sum of Squares .642 9.226 9.868 Df

Mean Square 1 148 149 .642 .062

F 10.296

Sig. .002
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) INN.MEAN B 1.038 .065 Std. Error .049 .020 .255 Coefficients Beta t 21.186 3.209 Sig. .000 .002

a. Dependent Variable: HRM.MEAM

In this model we can see that the value of regression which is 0.255. The R square is 0.065 which is not closer to 1 which shows that independent variable has less effect on dependent variable, but the difference between R square and adjusted R square is very less, which shows that independent variables have positive effect on HRM. Whereas R square is 0.065 and adjusted R square is 0.059 and the significance is 0.02.

Organizational Culture and HRM

b

Variables Entered/Removed Variables Model 1 Entered O.C.MEAN

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: HRM.MEAM

Model Summary Adjusted R Model 1 R .277

a

Std. Error of the Estimate

R Square .077

Square .070

.24813

a. Predictors: (Constant), O.C.MEAN

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), O.C.MEAN b. Dependent Variable: HRM.MEAM Sum of Squares .755 9.112 9.868 Df

Mean Square 1 148 149 .755 .062

F 12.268

Sig. .001
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) O.C.MEAN B .982 .086 Std. Error .060 .025 .277 Coefficients Beta t 16.242 3.503 Sig. .000 .001

a. Dependent Variable: HRM.MEAM

In this model we can see that the value of regression which is 0.277. The R square is 0.077 which is not closer to 1 which shows that independent variable has less effect on dependent variable, but the difference between R square and adjusted R square is very less, which shows that independent variables have positive effect on HRM. Whereas R square is 0.077 and adjusted R square is 0.070 and the significance is 0.01.

Organizational Learning and HRM

Variables Entered/Removed Variables Model 1 Entered O.L.MEAN
a b

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: HRM.MEAM

Model Summary Adjusted R Model 1 R .281

a

Std. Error of the Estimate

R Square .079

Square .073

.24783

a. Predictors: (Constant), O.L.MEAN

ANOVA Model 1 Regression Residual Total a. Predictors: (Constant), O.L.MEAN b. Dependent Variable: HRM.MEAM Sum of Squares .778 9.090 9.868 Df

Mean Square 1 148 149 .778 .061

F 12.660

Sig. .001
a

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) O.L.MEAN B .991 .084 Std. Error .057 .024 .281 Coefficients Beta t 17.371 3.558 Sig. .000 .001

a. Dependent Variable: HRM.MEAM

In this model we can see that the value of regression which is 0.281. The R square is 0.079 which is not closer to 1 which shows that independent variable has less effect on dependent variable, but the difference between R square and adjusted R square is very less, which shows that independent variables have positive effect on HRM. Whereas R square is 0.079 and adjusted R square is 0.0073 and the significance is 0.01.

Entrepreneurship and HRM

Variables Entered/Removed Variables Model 1 Entered ENTP.MEAN
a b

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: HRM.MEAM

Model Summary Adjusted R Model 1 R .191

a

Std. Error of the Estimate

R Square .037

Square .030

.25345

a. Predictors: (Constant), ENTP.MEAN

ANOVA Model 1 Regression Residual Total Sum of Squares .360 9.507 9.868 Df

Mean Square 1 148 149 .360 .064

F 5.609

Sig. .019
a

a. Predictors: (Constant), ENTP.MEAN b. Dependent Variable: HRM.MEAM

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) ENTP.MEAN a. Dependent Variable: HRM.MEAM B 1.042 .063 Std. Error .062 .027 .191 Coefficients Beta t 16.676 2.368 Sig. .000 .019

In this model we can see that the value of regression which is 0.191. The R square is 0.037 which is not closer to 1 which shows that independent variable has less effect on dependent variable, but the difference between R square and adjusted R square is very less, which shows that independent variables have positive effect on HRM. Whereas R square is 0.037 and adjusted R square is 0.030 and the significance is 0.019.

Combine effect of all Independent Variables on HRM.

Variables Entered/Removed Variables Model 1 Entered ENTP.MEAN, C.A.MEAN, INN.MEAN, O.L.MEAN, O.C.MEAN
a

Variables Removed Method . Enter

a. All requested variables entered.

Model Summary Adjusted R Model 1 R .412

a

Std. Error of the Estimate

R Square .170

Square .141

.23856

a. Predictors: (Constant), ENTP.MEAN, C.A.MEAN, INN.MEAN, O.L.MEAN, O.C.MEAN

ANOVA Model 1 Regression Residual Total Sum of Squares 1.673 8.195 9.868 Df

Mean Square 5 144 149 .335 .057

F 5.878

Sig. .000
a

a. Predictors: (Constant), ENTP.MEAN, C.A.MEAN, INN.MEAN, O.L.MEAN, O.C.MEAN b. Dependent Variable: HRM.MEAM

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) C.A.MEAN INN.MEAN O.C.MEAN O.L.MEAN ENTP.MEAN a. Dependent Variable: HRM.MEAM B .672 .294 .026 .046 .041 -.041 Std. Error .107 .085 .028 .038 .036 .040 .270 .100 .149 .135 -.124 Coefficients Beta t 6.274 3.441 .904 1.210 1.128 -1.015 Sig. .000 .001 .368 .228 .261 .312

The combined effect in this table shows the value of regression 0.412. The value of R square is 0.170 which is little bit closer to 1 according to all previous observations, this shows all combine effect the HRM in a positive way. The R square is 0.170 and adjusted R square is 0.141, which shows that there is very less difference and all independent variables affect dependent variable positively with the significance of 0.00. This shows that by the on unit change in independent variable the dependent variable is also affected but positively.

Conclusion
As far it is discussed the type of my research is quantitative from the secondary data resources. So according to the whole research process we can see all these variables have positive effect on human resource management and their combine effect is also positive. The whole research shows that by 1 percent change in independent variable dependent variable effects.

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