Abstract

The study assessed Human Resource Management's (HRM) impact on Pakistan International Airlines' (PIA) performance, exploring its contribution to financial success and the role of employee engagement. 371 valid responses were collected from 400 distributed questionnaires, achieving an 86% response rate, with 35% female and 65% male respondents. Data analysis employed SPSS for descriptive analysis and Cronbach's Alpha for reliability. The study's main goals were to evaluate PIA's HRM practices, revealing a positive HRM effect on performance through SPSS regression analysis. Governance and HRM practices were identified as root challenges. Recommendations included VIP protocol elimination, increased employee development investment, monitored flights by senior staff, and strong HRM implementation to promote efficiency, productivity, and growth. The study stresses a dedicated HR department's importance for competitive advantage, providing insights for PIA's strategic decisions and performance enhancement.

Key Words

Performance Management System, Employment Security, Training & Development, Employee Engagement, Organizational Performance

Introduction

In recent years, the importance of people-centric strategies for gaining a competitive edge has become paramount in organizational administration. Previously, the HR function was viewed as the domain of "Personnel Managers" who mainly handled recruitment and other tasks that seemed duplicable across managers. The notion of dedicated HR management wasn't seen as essential, as any manager could perform these duties. Little attention was given to the impact of HRM on company performance. HR practices are crucial in determining organizational performance. Amidst global competition and changing landscapes, efficient resource utilization is imperative for an organization's sustenance and satisfaction. HRM practices make organizations more efficient and reliable than rivals. They focus on recruitment, training, and development, fostering cooperation within available resources. Effective HRM practices create historical value and competitive advantages, emphasizing the strategic importance of human resources. Aligning HRM strategies with business strategies is crucial for success. Despite technological advancements, human resources remain vital for organizational success.

The evolution of HRM theories has been significant. The mid-20th century saw human relations and motivational theories shaping management thinking. HRM evolved from mere administration to combining human resource and human capital management in the 1960s. The philosophy shifted to employee motivation, commitment, and building trust in the 1970s. The late 20th century witnessed research on turnover's impact on HR systems, productivity, and organizational performance. HRM's present state is more employee-centred, considering employee needs and concerns.

Globalization led to the integration of universal and situational HRM approaches. Developing countries have faced barriers in adopting international best practices, while the situational approach, adapting to local conditions, is more effective. Organizations transitioned from viewing employees as financial obligations to strategic allies. Organizational performance is crucial, with committed employees being more dynamic and cost-effective. In Pakistan, the performance of government institutions is hindered by managerial issues. Effective managers are integral for revenue generation.

Pakistan International Airlines (PIA) has faced numerous challenges, including governance problems, mismanagement, HRM issues, and financial turmoil. The airline's reputation suffered due to these issues, impacting its identity and national pride. The case study's main objective is to analyze the impact of HRM practices on PIA's financial performance and the role of employee engagement as a mediator. Established in 1946 as Orient Airways, PIA played a significant role in global aviation. However, it has faced decline and numerous issues since the 1990s, negatively affecting its reputation and national image. The study aims to shed light on the HRM aspects contributing to PIA's performance and suggest potential solutions. PIA's role in establishing world-class airlines is noteworthy, but its current challenges highlight the need for effective HRM strategies to regain its former stature.




 

Aircraft type	In-service	Parked	Total
ATR 42/72	7	2	9
Airbus A-320	12		12
Boeing-777	12		12

 




PIA's fleet comprises 33 aircraft, serving 25 local routes and 29 foreign destinations. Flourishing in the 1960s-70s, PIA's performance faltered in the 1990s due to political instability, poor governance, and inadequate HR management. Amid financial woes, PIA transformed into a limited company, PIACL, in 2015, aiming for privatization. Accumulated losses totaled RS 416 billion by May 2019. The core issue lies in poor administration and performance hampering service quality. Financial remedies aren't sufficient; efficient management is pivotal. PIA, with 13,200 technicians, operates with limited aircraft globally. Mismanagement, nepotism, and losses plague the airline, necessitating a comprehensive plan for recovery and reputation restoration. Structural flaws and mismanagement turned a state-owned company into a national liability.




Literature Review

Organizational Performance and Employee Engagement

Andrew Ross 1994 has researched the field of organizational behaviour and suggested that employee engagement and organizational performance are likely to derive significant benefits to the individuals and the organization as a whole. Andrew's research report of that time is an empirical study that examines employee engagement as a mediator. The results of his research indicate that the given high levels of employee engagement by the use of budget-constrained reduce the job-related tension and increase job performance. 

The researcher focused that HRM strategies have been a source of sustained ability and competitive advantage because they are not easy to imitate and are a way of dependency. The system of Human Resource Management is an invisible asset that enhances the value of organizational performance and employee engagement in the organization (Becker & Gerhart, 1996). Ambrose et al 2003, elaborated in their studies that organizational performance and employee engagement are recognized as important parts of the organization framework that plays impartial insights. Still limited studies thoroughly examine the contextual variables. He suggests in his study that under the different structural conditions, reciprocal justice can play distinctive important roles in defining the quality of organizational social interchange (as shown by apparent organizational support [POS]). 

Laura Innocenti, 2010 Adopted the approach that was known as the Structural Equation Modeling approach and he identified by testing the role of mediation by using seven HR practices. For this purpose, he used a sample of 9000 employees from different Italian organizations. He assessed the relationship between three ‘packages’ of applies, one of them was concerned with enhancing the skill, another was enthusiasm and the third was the prospect. He describes that HRM has to pass certain practices that are selection, Job equality, job delineation, training, performance evaluation, reimbursement, career formation, and their impact on employee engagement on organizational performance. 

Laura Innocenti 2010, contributes to the deliberations of HRM literature by exploring the role of mediating employee engagement in organizational performance. In his study, he describes that the concern in measuring the connection on a system of HRM practices varies according to the specific ‘packages’ of applies. Shahzad, Hussain, Chishti and Nasir (2011) describe that strategic human resource management approaches have three perspectives i.e. universalistic perspective, the contingency perspective, and the third one is configuration perspective which describes the association between employee commitment and organizational enactment.

Moideenkutty et al. (2011) defined HRM practices as staffing, training, empowerment and performance management. He categorizes HR practices as the high involvement in organizational performance and establishing a positive relationship with employee engagement (Ortiz-De-Urbina-Criado, Dabic & Romero-Martinez, 2011) explains HRM as the combination of activities that could be allied with the organization of people to form their authorities to their duties with high level of organizational performance. Alfesa et al (2012) contribute to the understanding that HRM practices either mediating or moderating have been linked with behavioral outcomes. He developed a mediating model to test the perceived HRM practices to organizational performance. Quresh, Akbar, Khan, Sheikh & Hijazi (2012) explain that it's an improvement, knowledge an individual that leads to their development and self-realization which enables them to pay attention towards employee engagement and organizational performance. 

Onder and Gogen (2013) argue that human resource practices play a decisive role in organizational performance by restructuring and without reducing the salary expenses of valuable employees, they act without violating the faith and the devotion of employees and motivate in any critical situation. They describe the association of eight HRM applies with employee engagement. It describes the significant positive relationship of three practices which are performance management system, employment security, Training & development with organizational performance. Rahman, Alias, Shahid, Hameed and Alam (2013) look at HRM as the process of income passing, which are association, progress, inspiration and care of human beings in any organization, which are united with the organizational purposes and its strategies. Onder and Dogan (2013) define three HRM strategies reducing resources, and increasing the identification of an organization. This is the best strategy because it is proactive and very positive in nature. (Hussain& Ur Rehman, (2013) author revised the impact of the different six articles in their distinct matter on the progress of theory and evidence on employee engagement. The author also acme those series where added research was needed to answer important questions.  He also introduced the emerging fields that link employee engagement with organizational performance (Catherine Truss, 2013). 

HRM practices that were measured by Ismail, Amin, Rashid and Selemani (2014) are staffing, training, concert, assessment, employee participation, job definition and career planning. Quresh al Hussain ur Rehman (2015) described the engagement of each practice with organizational performance and then valued the significant employee's enthusiasm, risk-taking, and confidence. According to Razimi et al. (2015), employee engagement was the strong mediator. According to Al-Qudah, Osman, AbHalim and Al-Shatanaw (2016), SHRM is about corresponding human resources according to the business needs of the future. This usually emphasises two aspects which are progress and upgrading of the core competencies and the combination of HRM strategies with the organizational strategy. It has three slants which are high concert, high obligation and high contribution. Julian Gould-Williams, 2017 described in his studies about employee engagement and HR practices which have a vital role in the development of employee engagement among workers, their job contentment, assurance, determination and perceived organizational performance. He has developed an academic model which was tested by data collection by a mail survey from the local government employees of the UK and as a result, he supported the hypothesis that HRM applies are authoritative predictors of employee engagement and organizational presentation. 

Gaurav Davea et al. (2018) have engaged participants in outlining factors of employee engagement in public educational research corporations preparing a structure for measuring employee engagement. Muhammad Farhan Bashir 2019 investigated brand employee engagement as a prime objective in research which is going to investigate the relationship between customer satisfaction and brand equity under the influence of brand employee engagement. The hierarchical regression analysis was used in his study to find the said relationship and his findings of the study illustrate a connection between organizational performance, and employee engagement is optimistic.




Organizational Performance and Employment Security

The studies of Delery & Doty (1996); we see in their studies they have highlighted the important correlation between employment security and organizational performance. Pfeffer (1996) also describes with full confidence the profits of employment safety, apart from workers' free engrossment with understanding and their struggles to improve efficiency; it also boosts people to take a prolonged insight on their jobs and organizational accomplishments. Evidence from many academics shows that security maintained over time helps to develop trust between individuals and their employers. 

This might lead to more cooperation, accumulation and rearranging of salaries and a better organizational core to reach the greatest degree of organizational performance. According to Bookman and Fey (1996), the impression of employment safety in no way aims that association hold those workers who accomplish or effort capably, he said The presentation for the organization of those employees also matters. We see Becker & Gerhart, (1996) say that real performance outcomes are based on the normal performance, efficiency, income, value of products or services and the survival of the organization. According to them, employment safety is essential for the execution of best further pumped-up supervision applies viz careful recruitment, broad education, intelligence distribution within the organization. 

Delaney & Huselid (1996) say that the perception of the performance of an organization embodies the quality of the product, the satisfaction level of its customers and the development of its new product, while the perception of the performance of the market embraces the profitability and market share. Youndt, Snell, Dean & Lepak, (1997) called human assets the crucial factor of organizational performance. They also focused on the importance of HRM practices saying that organizations can improve their management by increasing the number of HRM applications or at least by enhancing their choice making those more inclusive with employment security. They all deliberated that the two prime perceptions are commonly applied to tie HRM with organizational accomplishments; worldwide and incident accesses. The prior covers the weight of worldwide greatest applies allied to HRM on organizational production and the next enlightens the bearing of employment security with structural performance. It aids both current and futuristic purposes of an organization and finally adds concerning organizational accomplishments. After the long-term activities of their studies, they reached on conclusion by saying that organizational performance and employment security are more closely linked with the HRM. 

Triple Bottom Line (TBL), in 1997, also concentrated on a new instrument for gauging organizational performance that was with a backdrop that both the service and product-oriented organizations were accountable for more than just creating employment safety. Rogirs and Wrighte (1998) elaborate four most significant extents of assessment for the performance of any organization. 1- HR (employee exit workflow, absence, and employment security). 2- Organizational (production, superiority and facility). 3- Monetary (ROE, sales and productivity, ROA). 4- Wealth market (stock value, progress, and profit). In the same way, they suggest an accomplishment information system with four accomplishment information markets. 1-Capital market. 2- Employment market, 3- Buyer market, 4- Political and Communal market and they suggest that there is a great relationship between organizational performance and employment security. The employee's understanding of the success of the organization's reward practices, as well as his or her intent to leave the organization, were found allied to institutional employee engagement.(Rober D. Costigan, 2003). 

Financial narration pointers used by Lee and Yu for industrial businesses in 2004, were trade income, profit on possessions, and net viability. They usually estimate only financial procedures in the knowledge of the achievements of an organization, while the Balanced Scorecard method, offered at the beginning of the 90s by Robrt Kaplen and David Norton of Harvard Business School, compromises a broad understanding of achievement by considering central aspects of an organisation and peripheral aspects, which upset its achievement and performance. (Chavan, 2009). 2009. BSC was designed mainly for internal monitoring and regulators, but it obviously includes a gauge of monetary achievement, customer outcomes, innovation and internal processes (Richard et al., 2009). Wisdom and expansion approaches include valuation, whether an organization is achieving its performance, preserving its current position and cultivating employees’ competencies, information system capabilities, employee enthusiasm and employment safety. Rechrd, Deviney, Yep, & Johnson (2009) discussed that organizational accomplishment includes monetary accomplishment (profits, ROI etc.), market accomplishment (sales, market share, etc.), and investor profit (total shareholder profit, profitable value etc.). 

Amen al. (2011) also offered constructive and momentous connections between HRM applies and administrative accomplishment. This raises the level of employee satisfaction and commitment. Moidenkuty al Anaa-Marea, Floricae, & Catalena (2011) they express organizational accomplishment as a maintainable place of existence attained over efficacy and production and declare that an acting organization is competent, inexpensive and productive. According to BSC technique is founded on the idea of enhanced accomplishment is a normal and rational result of actual and properly associated transitional phases (Noled II, 2012). In present providence, the outmoded recital gaging relies on real possessions that persist imperfect as those realize 25% of the entire firm worth (Noold II, 2012). Vane Di Verde et al (2012) intricate opposing standpoints of the impression of HRM on organizational accomplishments called as ‘dual achievements’ and ‘incompatible results’. The joint perspective is reinforced by the 'AMO concept’ weighted on HRM actions escalate employees’ competencies and encouragement and offer chances to add which ultimately definitely touches the organizational accomplishment. 




Organizational Performance and Training & Development

The dimensions of strategic management and HR management have been paying better attention to the mechanisms by which HRM inspiration employees' behaviours and eventually the performance of the organizations. A significant stream in the current literature puts the focus on the concept of capital, namely on its human and social aspects. Moreover, numerous scholars have argued that the HR system and the corresponding HRM applies like training & development play a dire role in organizational performance. Workers’ education is an advantage for future advances thus learning and talent levels of staff are improved. It confirms the readiness of an extra prolific and devoted workforce. Such staff provide improved accomplishment and consecutive rise in efficiency of the organization. By improved productivity, the association is capable of bestowing extra energy and capital towards preparation; thus, an extremely prolific and synergetic sequence originates. 

Islam spreads unqualified impartiality deprived of seeing any company or belief excluding on the basis of information about humans can illustrious and classified excellent. Pursue understanding is needed for all Muslims regardless of their gender, form, or faith. Firms are advised to guarantee the delivery of sufficient probabilities for information and talent improvement to their workers. Hamedulah (1995) acmes the position of tutoring by asserting main exposes the Holy Prophet's (PBUH) direction to pursue awareness. In his narrations, he views the Holy Quran as having frequent directions related to the significance of awareness and learning. The Holy Prophet (PBUH) presented much significance on learning and preparation to a level that the public, which employed as administrators in several countries, got directions to confirm community learning in their authority. The Holy Quran states wisdom as an obligatory bustle of its devotee. 

The Holy Prophet (PBUH) was a close planner of spiritual along world-wise understanding. It is definite that nowadays facilities demand a level of high presentation from the people who are contributing to it. Poor performance of the workers is not only a problem in Pakistan but there are sufficient pieces of evidence that are available in the articles and reports which signifying the performance of employees. Including JLI, 2004, Human Resources (HR) is constantly considered as the focusing point in the current century. After World War II, HR was measured as the success point of economics and it has been presented to East countries as a progression aspect which has stirring results (Mirsepasi, 2005). Rowe et al, 2005; Chawla & Gracia-Prado, (2006). Human resource management is delineated as the identification, assortment, appointment, training and development of human resources to meet organizational objectives (Saadat, 2007).

Yip, Johnson, Richard, & Devinney (2009) maintain that organizational accomplishment includes monetary accomplishment (incomes, ROA, ROI, etc.), arcade accomplishment (deals, market segment, etc.), stockholder profit, cost-effective value-added, etc.). Conventionally, they are used to be only financial portion which could assess the performance of the organization, whereas the balance (BSC) method, announced in first 90s by Robilt Kaplain and Devid Noreten from Harvord business college, state an inclusive opinion of the accomplishment by containing the core and the peripheral dynamic of an organization which shakes the accomplishment of the organization in the false lead (Chawane, 2009).

Prime BSC deliberate in core administration and mechanism, after that it included the count of monetary accomplishment, novelty, client results and inner procedures (Richerd al, 2009). Brenine & Polared (2010) describes motivating outstanding performance as a constant force to work harder and improve the quality of their goods and services via the development of new knowledge and abilities. Finance for training workers is reimbursed indirectly after the company hires people in positions that are more competent and competent (Bonavia & Marin-Garcia, 2011). An organization may be called a learning organization if it deliberately uses its people resources for improvement. This is a prolonged activity and such an attempt to learn will provide a company with obligatory advantages that will excel in the future (Akhtar & Khan, 2011).

The company's organizational achievement as a tolerable market presence is clarified by Ana-Maria, Catalina, &Florica (2011), which is deemed competent, prolific and highly competitive. In modern economics, the traditional achievement measure is based on tangible assets, which are 25 per cent of the entire worth of the company (No ld III, 2012). Training and development have a positive effect on corporate obligations and staff who are trained are less inclined to quit the company (Mohyin et al., 2012). Teaching and development actions include training new workers, enhancing current employees' abilities and developing people for upward mobility (Salleh, 2012). Johnson D&Shaw 2012 repeals the emphasis on accumulations of human capital in the literature on resources, the writers address the problem of loss of human capital and organization. They thought that loss of human capital obviously reduced initially the inimitability of human capital stores, but that the poor items were weakened as losses of human capital increased.

 They further argued that these impacts are more pronounced when human resources management (HR) budgets are large. Study 1 demonstrates, as predicted, that the link between human capital losses (self-imposed sales rates) and labour performance takes the shape of a reduced negative relationship when HR investments are large. Study 2 indicates a strong curvilinear impact on personal efficiency and financial performance of self-imposed turnover rates under these circumstances. Resource-based theory and strategic HR implications are discussed. Hussain and UR Rehman (2013) described training and development as programmed to educate workers about the specifics of the company to improve employee performance. They argued that the turnover of employees is contrary to the training program carried out in a company.

Bashir, Ghazanfar, Dar & Abrar (2014) propose the finest HRM for appropriate training that pays substantially for achieving corporate goals and justifying competitive advantages. Training expenses should thus be viewed as investments rather than expenditures. The analysis of multilevel regression supported our hypothesis that employee commitment serves as the mediator of the connection between the perceived learning environment and this behaviour. In addition, engagement offers a more complete explanation than work pleasure or job contribution (LiatEldor, 2015).

The training and development designed as funding the full self of an individual, which was developed by Bruce Louis Rich et al 2017, offers a more comprehensive explanation of connections with enactment than well-known notions which represent smaller elements of the person's own self. As a result of a research of 245 firemen and their supervisors, training and development have favourable connections to organizational success and the two dimensions: work performance and citizen behaviour (Brue Lious Rich, 2017).

Conceptual Model

The conceptual model for this study develops in light of the previous talks as shown below. Major HRM practices such as the performance management system, occupational security, training and development were included in this model as dependent variables. Organizational success was considered as a dependent variable and the commitment of the employee as a mediating variable.  



Hypotheses

Building upon the literature reviewed above, the following hypotheses have been formulated:

H1: Performance Management system Influences organizational performance. 

H2: Employment Security influences organizational performance. 

H3: Training and development influence organization performance. 

H4: Employee engagement mediates the relationship between performance management systems and organizational performance.

H5: Employee engagement mediates the relationship between employment security and organizational performance.

H6: Employee engagement mediates the relationship between training & development and organizational performance.

Research Methodology

Institutions’ Information

Data from Dera Ghazi Khan, Karachi, Islamabad, Multan, Bahawalpur, Lahore and Rahim Yar Khan were gathered for the current research. A survey questionnaire included closely organized questions, which were designed to collect the necessary information from the respondents and ultimately to get more exact results. The questionnaire has 41 questions, for each variable various questions were asked to answer five variables. The first two questions were aimed at learning about PIA employee experience in regard to the specified variable, and the final question was posed to get data on PIA employee performance in relation to the same variable. The data obtained for this research have been examined using SPSS (Statistical Social Science Package), descriptive analysis and Cronbach Alpha.400 questionnaires have been given to the staff of the above-stated offices for the purposes of data collection. Out of 400 questionnaires 378 were received, nine were incomplete and discarded, thus part of this research is not considered, and 371 were legitimate surveys. The response rate was 86%, 35% of which were female and 65% of the respondents were male. There are various types of employees in the sample of responses from lower-level workers to senior management. The names of the PIA staff involved were obtained from the HR offices of the various international airline stations in Pakistan.




Participants’ Information

The necessary information was gathered via the administration of a questionnaire. The sample includes individuals who were subject to various offices of the PIA. Four hundred forty questionnaires were provided for the purpose of data collection; the questionnaires were given to workers associated with the PIA offices listed above. Out of 400 questionnaires, 378 were received, nine of which were incomplete and were discarded, and the remaining 371 were valid, resulting in a total of 378 valid questionnaires and nine invalid questionnaires. The response rate was 86 per cent, with 35 per cent of the respondents being female and 65 per cent being male, according to the results. In the sample of respondents, there are a variety of various types of employees ranging from lower-level employees to upper-level management. The names of the concerned PIA workers were obtained from the human resources departments of the airline's various hubs throughout the country.




Sample Size

Establishing an appropriate sample size is a

critical aspect of research, as it ensures the trustworthiness and validity of the sample, making it representative of the population for meaningful data analysis. This process hinges on two key requirements: precision and confidence, as outlined by Sekaran and Bougie (2010). Precision refers to the closeness of our estimate to the true population characteristics, while confidence relates to the degree to which the researcher's estimation holds true for the entire population. These two concepts are distinct, and as the sample size increases, both precision and confidence proportionally improve. However, it's important to note that a larger sample size can escalate data collection costs. Bryman (2008) emphasizes that there is no fixed or universal sample size requirement, as it depends on various factors like time constraints, available funding, and the need for accuracy. Nevertheless, larger sample sizes tend to offer greater accuracy and reduce sampling errors compared to smaller ones.

Given the extensive workforce of Pakistan International Airlines (PIA) scattered across the country, collecting data from the entire network is logistically challenging due to limitations in time, access, and financial resources. Consequently, this research focuses on specific locations including Karachi, the headquarters, along with Multan, Lahore, Peshawar, and Islamabad stations, which were selected based on their accessibility. The study employs proportionate random sampling, categorizing the population into subgroups and then conducting random sampling within each subgroup. To calculate the sample size for this study, the formula proposed by T. Yamane (1967) will be utilized.

There are 25 respondents drawn from D-G-Khan, 75 drawn from Karachi, and 50 drawn from Islamabad. There are 100 drawn from Multan, 30 from Bahawalpur, 70 from Lahore, and 50 drawn from Rahim Yar Khan, according to the sample distribution. A questionnaire that was created to conduct the survey included structured close-ended questions that were designed to collect the necessary information from the respondents and to provide more precise results at the end of the survey's execution. Each variable was asked a separate question for each of the 41 questions on the questionnaire, which resulted in answers on 5 variables from the participants. When asked the first two questions, the respondents were asked about their actual experience working for PIA in relation to the specific variable, and the third question was asked to gather information about the organization's performance in relation to the specific variable, as well as the employees' intentions working for the organization in relation to the same variable. Analysis of the data gathered for this research will be carried out utilizing statistical methods of association. 

Data Collection Process

The field study took place between July and mid-December of last year and lasted more than six months. The simple convenience sampling technique was used for data collection, and approximately 50 questionnaires were distributed among the various types of employees of Pakistan International Airlines, also known as PIA, prior to the start of the study. After the pilot testing was completed, the results of the study were published. Later on, about 400 questionnaires were distributed for the purpose of data collection; the questionnaires were given to the workers who were involved in the research at the time they were delivered.

378 questionnaires were returned from a total of 400 questionnaires, with nine of them being rejected because they were not complete and thus not included in this research. The response rate was 86 per cent, with 35 per cent of the respondents being female and 65 per cent being male in the sample. In the sample of respondents, there are a variety of various types of employees ranging from lower-level employees to upper-level management. The names of the concerned PIA workers were obtained from the human resources departments of the airline's various hubs throughout the country.

 

Reliability and Validity

To ensure the quality of research, three

fundamental questions must be addressed: dependability, reproducibility, and validity, as outlined by Bryman (2008). Dependable research should yield consistent and replicable results, whether the study is repeated in different locations or at different times. This concept, known as replication capability, is technically referred to as "consistency of measurements" (Bryman, 2008). One method to assess this is by using Cronbach's alpha, which also serves to verify the internal consistency of data. Reliability, a crucial aspect, indicates the extent to which data is free from random errors. Measures like test-retest reliability and internal consistency are employed to assess the dependability of a scale (Pallant and Tennant, 2007). Test-retest reliability involves administering a survey to the same individuals at two separate times and determining the correlation between their responses. A stronger correlation indicates higher reliability, and in the case of surveys covering relatively stable household profiles, this correlation is expected to be substantial.

Internal consistency, on the other hand, gauges whether the items within a scale truly measure the same underlying attribute. It reflects how well the items "hang together," and as recommended by Bryman, a Cronbach's coefficient alpha exceeding 0.7 is generally considered adequate (Pallant and Tennant, 2007). Ensuring validity is another critical aspect of research. In this study, the researcher carefully selected the language used in survey questions and relied on empirical data from prior research. The incorporation of variables and scales from previous relevant studies was aimed at enhancing measurement and content validity.

In conclusion, addressing questions of dependability, reproducibility, and validity is essential for conducting high-quality research, and the methods mentioned here serve as valuable tools in this pursuit.

IBM SPSS extracts the means and standard deviation as follows:




 

Table 1

Data Analysis

Descriptive Statistics
Variables	N	Mean	Std. Deviation
MPS	367	4.4436	.27945
MTD	367	4.2711	.38678
MES	367	4.4029	.27872
MOP	367	4.2884	.32809
MEE	367	4.3172	.41287
Valid N (listwise)	367

 




As per human resources practices, organizational practices and commitment of workers, this demonstrates a good approach towards the employees of Pakistan International Airlines. They think that the beneficial effect of HR policies requires strong employee commitment.

 

Reliability Analysis

Using SPSS, the internal consistency and

 

reliability were analyzed, and the results of Cronbach's Coefficient Alpha for internal consistency and reliability were estimated to be above the minimum standard of .7 points in order to provide good estimations and keep the items, as stated by Nunnally and Bernstein (1994). ? =0.850




 

Table 2

Reliability analysis

Variables	No of items	Cronbach’s ?
Performance Management System (IV)	.774	10
Employment Security (IV)	.703	8
Training & Development (IV)	.784	10
Organizational Performance (DV)	.771	6
Employee’s Engagement (MV)	.839	7

Data Analysis & Interpretation

Measures& Results

The Impact of Human Resource Management practices on Organizational performance through the moderating role of Employee engagement.

 

Table 3

Analysis of HRP (performance management system, training & development system and employment security) 28 items

Item No.	Performance Management System	Means	Standard Deviation
01	The organization will fairly reward you for the amount of effort you have put into your job?	4.2861	.45256
02	Your immediate boss/supervisor supports you in getting the job done?	4.3379	.47363
03	Management looks after your best efforts which are in the interest of the organization?	4.3706	.48362
04	Do you think Key Performance Indicators are kept about your career development?	4.4877	.50053
05	You feel proud to tell people who it is, you work for.	4.4087	.49227
06	Your contribution to the overall performance of the organization motivates you to do more?	4.3896	.48834
07	Do you feel you can perform well when you are under pressure?	4.5123	.50053
08	Employees are satisfied with the salary and other benefits	4.4223	.49461
09	Do you think the system of job evaluation in your organization is satisfactory?	4.5940	.49175
10	Performance appraisal system in your organization helps to identify the strengths and weaknesses of the employees?	4.6267	.48434
11	Do you think that your organization has a proper training and development Plan?	4.3706	.68871
12	Do you think that your organization is providing sufficient opportunities for training and development?	4.2343	.66499
13	Your organization has a complete assessment procedure to dig out what training is compulsory at different levels?	4.2098	.62909
14	Your organization supports you to know about the latest technologies.	4.6512	.67621
15	Management is making sincere efforts to develop organizational skills in all respects	4.0082	.68348
16	Training programs formulated by the organization are in tune with the needs and requirements of employees	4.1553	.61437
17	Organization helps us in all positive ways to know our abilities and capabilities	4.6512	.67621
18	Top management provides each and every employee a chance to suggest his/her opinion on how to develop the organization.	4.1662	.66296
19	Do you think after getting proper training, you would have gained the most or the least from a specific training program?	4.0654	.67838
20	Do you think there must be a system to evaluate the failure and effectiveness of training and development programs after the provision of training for all participants?	4.1989	.66217
21	Do you think your job is secure?	4.4578	.49889
22	The offer of more money from another employer would make you think of changing your job?	4.4469	.49785
23	Would you recommend your close friend to join this organization?	4.4278	.49543
24	You perform work with intensity during your duty hours	4.4251	.49503
25	Do you think that the perception of job insecurity affects the performance of a person?	4.3324	.47173
26	Do you feel you could lose your job at any stage with further explanation?	4.3243	.46873
27	Do you think your duty timings and duty schedule can be changed at any stage without your consent?	4.3896	.48834
28	Do you think that you cannot be fired unless there is a strong cause?	4.4196	.49417

 

Table 4

Analysis of item no. 29-35 (07-items on employee’s engagement)

Item No.	Detail of Item from item 29-35 Employee’s Engagement (Mediating Variable)	Mean	Standard Deviation
29	Employee Engagement has a key role in HR practices	4.2834	.54954
30	Do you think the implementation of Employee Engagement in HR practices increases organizational performance?	4.3488	.58055
31	Do you think that without Employee Engagement, HR Practices have low response	4.2834	.54954
32	Do you agree that Employee Engagement strengthen HR practices to be more effective in organizational performance	4.2507	.62493
33	Do you think that Employee Engagement increase the confidence and satisfaction of employees	4.4142	.57509
34	Do you think the actions of management deliver in HR practices and increase Employee Engagement employees	4.3052	.67714
35	Do you think Employee Engagement has made your management more ethical and honest toward HR practices?	4.3351	.47269

 

Table 5

Analysis of items no. 36-41 (07-items on organizational performance)

Item No.	Organizational Performance (DV)	Means	Standard Deviation
36	Do you think change in the Performance System can increase organizational performance?	3.9210	.27014
37	Do you agree employee engagement toward HR practices has a big role in the increment of organizational performance?	4.3488	.47723
38	Do you think Employment Security increase organizational performance?	4.3569	.47975
39	Do you think skilled base training can result in good performance of the employee as well as the organisation?	4.2943	.61007
40	Do you think that time implementation of the Performance Management System motivates the employee to continue good efforts in the interest of the organization?	4.4278	.49543
41	Do you think contractual employment is the demotivating factor to work hard and increase organizational performance?	4.3815	.48641

 




Correlation Analysis

The correlation coefficient is also known as the product-moment correlation or linear correlation, by using Pearson correlation a positive and significant relationship between the independent variable HR practices and the dependent variable organizational performance (Pakistan International Airlines) was extracted which is shown in the given below table that covers Means, SD and Correlation. 




 

Table 6

Correlation analysis

Correlations
		MPS	MTD	MES	MOP	MEE
MPS	Pearson Correlation	1	-.002	.010	.683**	.716**
	Sig. (2-tailed)		.962	.852	.000	.000
MTD	Pearson Correlation		1	.261**	-.008	-.012
	Sig. (2-tailed)			.000	.882	.824
MES	Pearson Correlation			1	-.001	-.022
	Sig. (2-tailed)				.982	.679
MOP	Pearson Correlation				1	.859**
	Sig. (2-tailed)					.000
MEE	Pearson Correlation					1
	Sig. (2-tailed)
**. Correlation is significant at the 0.01 level (2-tailed).

 




Regression Analysis (Bivariate Analysis Step 1)

In order to assess the impact of Performance Management Systems, Training and development, and Employment Security on Organizational Performance, this study employed Bivariate and Multivariate Regression analysis while controlling for demographic variables such as qualification, Gender, and Age. Regression analysis was applied step by step to ensure the robustness of the results. Additionally, mediation analysis, following the guidelines proposed by Barren and Kenny (1986), was conducted to investigate the mediating effect of Employee Engagement on Organizational Performance.

The study's findings and interpretations are succinctly presented in the table below. The results indicate a statistically significant regression of predictor variables, as demonstrated by the analysis of variance.




 

Table 7

Interpretation of data (regression analysis)

Predictors	Organizational Performance (Criterion)
	?	R²	?R²	F	T	Sign.
Performance Management System	.803	.467	.463	106.122	.803	.000
Employment Security	-.008				-.169	.866
Training & Development	-.004				-.108	.914

 




Human Resource Practices (Performance Management System, Employment Security and Training & Development) = Independent Variable

Organizational Performance = Dependent Variable

According to regression analysis, there are significant and insignificant relationships/influences of independent variables and dependent variables.




                   

Mediation Analysis (Bivariate Analysis Step 2)

Table 8

Interpretation of data (regression analysis)

Predictors	Organizational Performance (Criterion)
	?	R²	?R²	F	T	Sign.
Performance Management System	1.058	.513	.509	127.504	19.548	.000
Employment Security	-.41				-737	.461
Training & Development	-.003				-.068	.946

HRM Practices (Performance Management System, Employment Security and Training and development) = Independent Variable

Employee Engagement= Dependent Variable

 

Results of Mediation Regression Analysis

Table 9

Mediation effect with performance management system

Predictors	Organizational Performance (Criterion)
	?	R²	?R²	F	T	Sign
Mediation Analysis
Management Performance System	.165	.748	.746	539.302	3.733	.000
Employee’s Engagement	.603				20.116	.000

 

Mediation effect: Human Resources Practices (Performance Management System + Employee Engagement)

Dependent Variable: Organizational Performance

 

Table 10

Mediation effect with training & development 

Predictors	Organizational Performance (Criterion)
	?	R²	?R²	F	T	Sign
Mediation Analysis
Training & Development	.002	.859	.738	512.726	.084	.993
Employee’s Engagement	.683				32.021	.000

 

Mediation effect: Human Resources Practices (Training & Development + Employee’s Engagement)

Dependent Variable: Organizational Performance

 

Table 11

Mediation effect on employment security

Predictors	Organizational Performance (Criterion)
	?	R²	?R²	F	T	Sign
Mediation Analysis
Employment Security	.021	.738	.737	513.520	.651	.516
Employee’s Engagement	.683				32.047	.000

Mediation effect:

Human Resources Practices (Employment Security + Employee’s Engagement)

Dependent Variable: Organizational Performance




 

This mediation analysis demonstrates the pivotal role of Employee Engagement in the context of Human Resource Practices and its influence on Organizational Performance. The analysis, while controlling for demographic variables such as Gender and Age in the initial step, applied regression analysis. The results of the interaction terms between HRM Practices and Employee Engagement (? = 1.528, R² = 0.450, ?R² = 0.447, F = 149.157, T = 8.149, Significance = 0.000) unequivocally indicate a significant and positive relationship between HRM Practices and Employee Engagement, affirming the presence of mediation.

Consequently, Hypothesis H1, which suggested no relationship, has been decisively rejected. On the other hand, Hypothesis H2, which posited a significant contribution of Employee Engagement as a mediating factor and HR Practices as an Independent Variable on Organizational Performance as the dependent variable, has been firmly validated by the interpretation of these results. 

Conclusion

The performance of an organization is highly correlated with the performance of an employee as the statistics of this research show significant and positive results. However, training & development, and employment security they are not playing their role in organizational performance. Results proved that in PIA there is an insignificant relationship between the performance of an employee and the performance of the organization. However, the mediation role of employee engagement with performance management has changed the attitude and it’s concluded that without engagement of the employees and their commitments towards organization performance neither we can bring change in their attitude nor in the organizational performance. Training and development of employees is totally failed and it has no results if employee’s commitment is not aligned with organizational performance. Even employment security is not threatening them that without a job their livelihood will suffer. Their values with organizational performance will only be aligned when they engage themselves with organizational performance. Hence the mediating role of employee engagement is deemed necessary in PIA. If we carefully probe the concerns actually faced by PIA, we find those embedded in its corrupt supremacy and HRM. Nevertheless, considering the accomplishments of PIA is determined that abolishing VIP protocols, increasing the development of employees, monitoring flights by senior officials and by sound HRM can escalate presentation, boost superiors and offer a milieu to exploit operative effectiveness, production and evolution of the company.

Recommendations

All the employees should undertake suitable enduring computer safety consciousness programs to comprehend probable extortions to PIA. New employees should have acknowledged (in writing) to the HR department that they have read and understood the policies of the organization. Employee problems regarding new technology must be considered during the performance evaluation process. Appropriate training courses must be scheduled for all types of employees to enable them to understand the use of their software efficiently and effectively. All the sectional heads must ensure that their staff is adequately trained in their respective system. All the software must be protected from the unauthorized persons in the organization. It must be ensured that incompatible duties are not assigned to any individuals. It must be ensured that passing the normal controls due to emergency situations does not affect the integrity of the organization. User profile, passwords should not be disclosed to anybody other than the profile holder.

All the employees must not use the internet for purposes that are illegal, unethical, harmful and non-productive for the organization. The employees who fail to comply with the policies should be subject to disciplinary action. Everybody should be responsible for the content of all text audio and videos that they place over the internet. There should be a trial of all electronic communication and they must be reviewed by the respective department for audit purposes to ensure the security of the organization. All the administrators and management system operators must be held accountable for their actions. All the required software for supporting business functions should be provided by the organization. Only the software that complies with organizational standards should be included in the organization-approved software. All the organizational information/data should be backed up on a regular basis. There should be a contingency plan and that should be restored on a timely basis in the event of disaster.

Limitations

This dissertation is constructed on major data gathered from Pakistan International Airline employees and its application and proof are completely established on this institute as there is variation of data of diverse administrations. The present dissertation shelters the aspect of only three HRM practices (employment security, Training and Development and performance Management System). The impact of HRM Practices strengthened by employee engagement with & without employee engagement both considered in this study. This study is conducted through SPSS furthermore to prove it more statistically Structural Equation Modeling (SEM) can be used.

Bits of Advice for Future Exploration

Certain recommendations for imminent exploration are given under:

It could be beneficial to explore the effect of other HRM Practices with respect to organizational performance in any other travelling airline. The investigation is necessary that strong HRM Practices and commitments of the employees to follow the rules can enhance organizational performance. It is worthwhile to explore the personal references that are violating and damaging the HRM Practices and poor performance of workers hired or recruited without following HRM practices. This study is conducted in the scenario of Pakistan it also can be conducted in the other developing nations.

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