On the basis of the above reviewed research studies and theories regarding HR practices, (Pfeffer, 1994; Guest et al,

2004; Delaney et al, 1989; McDuffee, 1995; Way, 2002;), this study has identified five HR practices which are: Recruitment and selection, Training Opportunities, Rewards, Participation in Decision-making, & Growth opportunities. The rationale of selecting only these five HR practices lies in their strategic nature at one end and being universalistic at the other end as been considered by most of the researchers. Besides this, most of the researchers argued that these practices will lead to performance by mediating the relationship with job commitment and satisfaction (see for example, Boseli et al, 1997; Guest, 2001; Malhotra et al, 2007). Now these practices will be discussed briefly:

Dessler, (2005) said It does not just involve placing Ads or calling employment agencies but the recruitment efforts should make sense in terms of companys strategic plans Staffing the employees is considered to be the process of finding the right persons, evaluating them and finally allocating them the tasks to work. Extensiveness of staffing refers to the extent that a firms staffing process uses information gathered from several selection devices (e.g. interviews, tests, work samples, etc.) to evaluate job candidates. Such process creates numerous barriers for job candidates and may result in the selection of individuals that possess superior skills and behaviour scripts (Dessler, 2005; Way and Thacker, 2001). Way (2002) argued that Extensiveness of staffing may enhance the firms ability to gain access to workforce that produce superior employee performance. Research has revealed the unavoidable role and contribution of valid selection tests in the selection of the employees. (Way, 2002; Terpstra & Rozell, 1993; Martell & Caroll, 1995). Since the selection of mismatched candidates hampers in achieving the desired performance

levels (Lado & Wilson, 1994), and, divergently, the existence of the effective and valid selection system brings forth the candidates who matches the required competencies in the organization and that is with minimized costs and reduced needs for training (Fernandez, 1992) therefore effective recruitment and selection process should be there in the organization as Effective selection process not only ensures the compatibility of the candidates by testing their potentials but also minimizes the uncertainty and insecurities at the end of the organization regarding external hires. In addition to this, it is also revealed from the researches that there is the existence of the effective staffing results in higher organizational performance thus having positive correlation (Terpstra & Rozell, 1993). Dessler (2005) describe Training refers to the methods (e.g. on job training, apprenticeship training, job instruction training, lectures etc.) used to give new or present employees the skills they need to perform their jobs. Research shows that training plays important role in enhancing employees skills and abilities which in turn increase employee performance (Guest, 2001; Marchington, 2005). Taking a performance management approach to training means that the training efforts must make sense in terms of what company wants each employee to contribute to achieving the companys goals. However, the training initiatives will produce positive results only if trained employees are then permitted to employ their skills which can promote job satisfaction and feeling of commitment to organization and vice versa (Pfeffer, 1994). Training not only enhances the competencies of the employees to effectively achieve their tasks but also intensifies their satisfaction with the job as well as their organization.

Way (2002) argued that formal training can develop employee skills and behaviors in their work related activities, which may enhance the firms ability to access a workforce that would ensure superior employee output. Burke and Day (1986) indicate that training positively influences the level of performance of managers. Indeed, Bartel (1994) found that investment in training increase productivity. Delaney & Huselid (1996) also argued that training is positively associated with organizational performance. While other findings indicate that training influences organizational commitment, participant knowledge and organization based self-esteem (McEvoy, 1997). Though most of the empirical research (e.g. Arthur, 1994; Mcduffie, 1994; Way, 2000; Tessena and Soeters, 2006; Nikandrou & Papa Lexandris, 2007) suggest that training has positive impact on both employee performance and organizational performance, but Pfeffer (1994) has provided a critical implication by indicating that one mistake many organizations make is to up grade the skills of both manager & workers but not change the structure of work in ways that permit people to do anything different. Under such circumstances, it is little wonder that training provide positive individual & organizational outcomes (Pfeffer, 1994).

Rewards refer to all forms of financial return, tangible services and benefits an employee receives as part of an employment relationship (Bralton and Gold, 1994). Work rewards refer to all the benefits that worker receive from their jobs (Herzberg, 1966; Kelleberg, 1977; Mottaz, 1988), and are important determinants of employee job attitudes such as organisational commitment and job satisfaction (Herzberg, 1966; Steers & Porter, 1991). According to Porter & Lawler (1968) rewards can be

broken down into two types: extrinsic rewards and instrinsic rewards. Katz and Van Maanan (1977) have further classified work rewards into three distinct categories of task, social and organizational rewards. Task rewards are intrinsic rewards, while social and organizational rewards are extrinsic rewards. Mottaz,(1998) describe that Extrinsic rewards are those that result from extrinsic- non job related factors. Social rewards (Friendly, helpful and supportive coworkers) are those that are derived from interaction with others on job; while organizational rewards (working conditions, benefits, promotional opportunities) are those that are provided by organization and are aimed at motivating performance .On the other hand, intrinsic rewards are inherent in the content of the job itself. They include job characteristics such as skill diversity autonomy and feedback (Hackman & Oldman, 1976). Individuals at all levels of the organisation recognise the importance of continually upgrading their skills and regard access to training as a key element in the overall reward package (Armstrong, 1993). However, work rewards have attracted considerable research as antecedents to job attitudes such as organizational commitment. Research findings indicate the importance of both extrinsic and intrinsic rewards in determining organizational commitment (see Allen and Meyer, 1990; Loscocco, 1990; Mathieu and Zajac, 1990; Young et al, 1998). However, there are two views prevalent in literature regarding extrinsic and intrinsic rewards. One stream of research supports the view that extrinsic rewards are more powerfully associated with commitment than intrinsic rewards because organisations have more direct control over extrinsic rewards in comparison to intrinsic rewards (Angle and Perry, 1983). Another stream of research supports the view that intrinsic rewards are more powerful determinants of organizational commitment than extrinsic rewards (Brief and Aldag, 1980; Eby et al, 1999).

Similarly, there is a handful of the research literature on the role of the compensation system in organizational performance. Researchers are of the opinion that the effective and upgraded compensation system as being a source of competitive advantage (Gonmez-Mejia & Wellbourne, 1988) enables the organizations to be the employer of choice resulting in appealing the more yet better candidates and also retain the competent employees that ensures the persistence in the organizational performance (Lawler & Jenkin, 1992). Besides this the performance based compensation system brings forth the excellent results (Delaney & Huselid, 1996) just in a way that profit sharing system contributes to the overall productivity and performance by reducing absenteeism as one contributor beside many others (Kaufman, 1992) .Finally, a survey of 1200 experts and practitioners from 12 different countries has also pointed out that rewards and compensation will be of paramount importance for achieving competitive advantage in the twenty-first century (Milkovich & Newman, 1996). Teas,(1983). Employee participation refers to the degree to which frontline employees perceive that they are able to influence decision about their job. However, participation is a process in which influence is shared among individuals who are otherwise hierarchical unequal (Locke, Schweigetr, 1976; Wagner and Gooding, 1987a). Participatory management practices thus balance the involvement of managers and their subordinates in information-processing, decision-making or problem solving endeavors (Wagner, 1994). Participation in decision making can be defined in words that the extent to which an employee, as being active participant (Vroom & Jogo, 1988), is able to influence the organizational decisions concerning varied subjects in multiple dimensions (Verma,1995). Wanger (1994) reports that many managers, union leaders and writers in the business press share the belief

that participatory management practices have substantial positive effect on performance and satisfaction at work (Bernstein, 1993; Bluestone & Bluestone, 1992; Katzenbach and Smith, 1993). However, other researchers have raised questions about participations ability to effect performance and satisfaction in the workplace (Ferris & Wagner, 1985; Lock & Schweiger, 1979). Some reviewers have suggested that research on participations efficacy provides only mixed support (Schweiger & Leana, 1986; Yukl, 1989). Other has concluded that research has failed to detect a strong relationship of any sort (Wagner & Gooding, 1987a). Cotton and his colleagues (1985) divided the forms of participation into sub-groups: consultative participation, that involves consistent contributions by the employees like the concept of quality circles in which employee opinions are sought as

managers engage in decision making; short term participation, involving brief but formal exercise in participatory decision making about job issues; Informal participation in which managers and subordinates engage in informal influence sharing organizational programs. Comparison among these subgroups led Cotton and his colleague to suggest that participation in work decisions, informal participation and employee ownership each exert positive effect on performance and that informal participation and employee ownership enhance satisfaction. Cotton and his colleagues (1990) concluded that some forms of participation are more able than others to improve performance and satisfaction at work. Although, empirical evidence with respect to three component models is limited, participation is seen as an indirect means of communicating managerial expectations of work behavior and is found to have significant influence on the organizational commitment of frontline employees (Boshoff and Mels, 1995; Meyer and Allen, 1991). Outcomes of many Researches show that employee participation contributes positively to the

performance of employees (Verma, 1995;Wagner, 1994), by enhancing employee satisfaction at one end and improving the level of employee productivity on the other end (Pfeffer, 1994). Whereas, Wagner (1994) in his meta-analytical analysis reported that research has produced evidence of statistically significant but small relationship between participation and performance but if participation in decision making is combined with profit-sharing programs it results in more positive results as a whole (Blinder, 1990). Consequently we can say that employee participative work systems enhance employee motivation as well as their ability to influence the quality and flow of work.

In this study, growth opportunities refer to employee development. Employee development refers to the long-term personal and professional growth of individuals (London, 1989). Jacob (2003) described employee development as an integrated set of planed programs, provided over a period of time, to help assure that all individuals have the competence necessary to perform their fullest potential in support of the organizational goals. It falls under the umbrella of Human Resource development; which refers to organized learning experiences provided by an employer to enhance performance and personal growth (Nadler and Nadler, 1989). Employee development can play an important role in helping and maintaining employee effectiveness (Performance) in an organization. Some organizations refer to their employee development programs as career development programs because they keep employees develop skills that are necessary to move to other jobs (Promotion) in the organization (Tanskey & Cohen, 2001). Similarly, Jacobs (2003) have argued that the overall intent of employee development program is to provide a

systematic path for increasing the employees competence, regardless whether that increased competence would be used for doing present or future work. Considerable research has been conducted on organizational commitment, satisfaction, and coaching and employee development as individual & organizational outcome. Very little research has been done on the relationship between organizational commitment employee development and satisfaction with employee development (Tanskey & Cohen, 2001). In fact, Noe and Ford (1992) argued that additional research into training is needed on perceptual information such as supportiveness of the organizational climate for personal developmental skills and technical skill upgrading. Organizations may offer opportunities for internal movement (internal labour opportunities), continual growth, increased skills and abilities and personal & professional development (i.e. employee or career development opportunities). In return, organizations may expect certain employee attitudes including commitment & satisfaction (Tanskey & Cohen, 2001). It has also been argued that organizational employee development initiatives are essential for maintaining employee morale and satisfaction (Jackson and Vitberg, 1987; Tyler, 1987). As individuals consider their career in an organization, it is possible that their perceptions of their career prospects in the organization (for example, promotion, employment security, continual growth) will have an impact on organizational commitment (Jans, 1989). However, managers may become satisfied with employee development, leading to increased levels of commitment to the organization because they believe they have the opportunities to keep themselves current. Thus employee development might be viewed as a social exchange. It is based on the implicit obligations that require trust. It offers opportunities and benefits. In return, for these opportunities and benefits

employees may feel obligated to reciprocate and may become more committed to the organization (Blau, 1964, Goulder, 1960, Meyer and Allen,1991). Although the relationship between employee development and organizational performance has wide acceptance, in fact relatively little is known beyond the basic principle. Most of the studies have attempted to estimate the effect of employee development investment on organizational outcomes (Harold, 2000). McDonald and Smith (1995) reported that firms without employee development programs tend to under-perform relative to industry financial averages, while those with performance management practices tend to perform above industry averages. However, it has also been argued that intra-organization rotations of employees, both horizontally or vertically, is also a source of increased organizational performance, this mobility has dual contribution to the performance, one is the direct contribution in which it causes increase in knowledge, diversity of experience and enhanced satisfaction; secondly, on the other hand, it contributes by minimizing the costs occurred on new hiring as well as their training (Milkovich & Boudreau, 1994). Internal career opportunities by hiring from within the organization, has positive correlation with the organizational performance as well as it is also a source of better employee outcomes (e.g. employee commitment, satisfaction and motivation) (Delaney & Huselid, 1996; Blackwell, Brickley and Weisbach, 1994; Delery and Dotty, 1996). In summary, the literature generally confirms positive relationship between employee

growth/development and organizational performance.

Impact of HRM practices has become very popular in the recent years (Ichniowski et al, 1994, Wanger, 1994 and Huselid, 1995). In spite of the assumption that HRM practices were linked to firm performance, earlier researcher found the relationship to be limited (Ulrich, 1997). In more recent years, however, researcher have used improved techniques to demonstrate the link between HRM and organizational performance do indeed exist (Huselid, 1995, Ulrich, 1997; Becker & Huselid, 1998; Gedaliahu & Tzafrir, 1999; Gerhart, et al, 2000b; Wright et al, 2001; Wright et al, 2003). Number of conceptual and theoretical frameworks are been suggested by different scholars from different fields that gives forth the ideas regarding mutual relationships between HR practices and performance that generally converge on the importance of HRM practices in determination of both employee and firm level outcomes (Delaney & Huselid, 1996). Academic research conducted at the organizational level suggests that Human Resource Practices affect organizational outcomes by shaping employee behaviours and attitudes (Arthur, 1994; Huselid, 1995; Wood & De Menezes, 1998). Conceptually, these practices can be classified in terms of their impact on employee skills and ability, motivation and the way that work is structured (Arthur, 1994; Huseid, 1995; Ichniowski et, al, 1994). Turning to HRM-performance link two developments are worth nothing, First economist after clear theory based on human capital to suggest why specific type of investment in human resource should pay off. Second, there is a growing consensus that a variant on Expectation Theory can provide one possible route to an explanation of how HRM practices have an impact on performance (Guest, 1997, 2001; Becker et al, 2001). A number of studies linking HRM and performance have been published; they are mostly, but not exclusively, cross sectional. The studies vary in quality, particularly with response to their measurement of HRM policy and

practices, although they share a tendency to display some statistical sophistication. While some range widely across industry, others concentrate on particular sectors (Guest, 1997). Each of the study will be discussed in brief. Arthur (1994) concluded in his cross-sectional, industry based study conducted on thirty US steel mini-mills that labour efficiency and scrap rate is dependent on

bundle of HR practices/HR system. Arthur argues that using high commitment HR practices are essentially endeavouring to develop committed employees who can be trusted to use their discretion of carry out job tasks in a ways that are consistent with organizationals goals. McDuffie (1995) also conducted cross sectional study on sixty two automotive assembly plants using survey method to test the hypothesis that there is no individual affect of HR practices on performance rather the practices have combined effect on the performance as a major contributor. He explored the contribution of innovative HR practices to economic performance using hierarchical regression analysis. The results provide the strongest statistical evidence to date of a positive relationship performance. Similarly, Huselid (1995) conducted extensive research into the effects of systems of HRM practices on firm performance. Huselid drew his firm performance data from large data base of publicly held U.S. firms with 100 or more employees. Information about HRM practices on firm performance was obtained through a survey mailed to senior HR professionals in each firm. His approach combined individual practice such as training or selection into sets that he called High Performance Work Practices (HPWP). He reports that those organizations that link HRM practices to between innovative Human resource practices and economic

strategy report higher financial performance outcomes. Huseild (1995) and McDuffie (1995) have argued that it makes sense to assess systems of HRM practices rather than focus on individual practices. The logic behind this proposition is that firm performance will be enhanced by system of practices that support each other and that have mutually re-enforcing effect on employee contribution to company performance. For example, the effectiveness of a comprehensive training program may be increased when combined with appraisals to assess employee performance (Patterson et al, 1997). Whereas, Delery and Dotty (1996) identified seven practices consistently considered to be Strategic in nature. His study was also cross-sectional drawing data of 114 banks. Practices identified were internal career opportunities, formal training systems, appraisals, measures, profit sharing, employment security, voice mechanism and job definitions. These practices were utilized in several analyses to test the soundness of three dominant theoretical perspectives in HRM firm performance literature: The Universalistic, Contingency and Configurational

perspectives. Results of the analyses provided some support for each of three perspectives. Delery and Doty identified three ways in which researchers have examined the extent of internal fit in order to enhance HR-performance. Icheniowski et al (1997) 89investigate the productivity effect of innovative employment practices using data from 36 steel forty seven production lines. The productivity sample was based on a panel sample of up to 2,594 monthly observations. The data collected are of both a qualitative and quantitative nature. The productivity regression demonstrated that lines using a set of innovative work practices, which include incentive pay, teams, flexible job assignments, employment

security and training. Result indicates that relationship between HR practices and performance do exist. However, in their study Harel and Tzafrir (1999) investigated the influence of seven HR practices at organizational level performance. Out of the data collected from a nation-wide sample of both private and public sector organizations in Israel he concluded that HR practices significantly impact the organizational performance. Mainly they found that more emphasis on the training develops human capital thus creating satisfaction at individual level that results in improved performance as a whole not only at organizational level but also at market level. Fey et al (2000) conducted cross sectional research in 21101 foreign owned firms in Russia investigating the effect of HRM on performance. They develop and test the model including HR outcomes (Motivation, retention development) as mediating variable between HRM practices and firm performance. The study provides some support for the use of HRM outcomes as a mediating variable between HR practices and performance. The findings suggest that non-technical training will have a positive impact on HR outcomes for managers while job security is the most important predictor of HR outcome for employees. Richard and Johnson (2001) test the effect of strategic HRM effectiveness on organizational outcomes. They employed resource based view of the firm to examine the effective use of human capital on organizational performance. The study result shows that HRM effectiveness significantly reduces employee turnover and increase overall performance. Way (2002) have provided empirical evidence that indicates that within the US small business sector high performance work systems (HPSWS) are associated with outcomes that are key to the success of small firms. This study utilize the broad categories of HRM practices such as Staffing, Compensation, Flexible job

assignments, Team work, Training, Communication and other practices/policies based on the empirical studies of Arthur, (1994); Becker & Huselid, (1998); Guthrie, (2001); Ichniowski et al (1997) and McDuffie (1995). The results indicate that HPWS enhance the ability of small firms to select, develop, retain and motivate workforce that produces superior employee output, which may be the source of firms competitive advantage. However, results also indicate that HPWS do not necessarily produce outcomes that exceed that exceed the labour cost associated with the use of these systems. Wright et al (2003) examine the impact of HR practices and commitment on the operating performance and profitability of the business units of large food service corporation. Their study utilized four HR practices: Selection and staffing, Training, Pay for performance and participation. This study reveals that both organizational commitment and HR practices are significantly related to organizational performance & profitability. A result of the study was consistent with the previous study (e.g. Becker & Huselid, 1998). The results also revealed that HR practices were strongly related to organizational commitment. Finally, HR practices and employee commitment were strongly significantly related to operating Expenses and profitability. Paul and Anantharaman (2003) also examined the impact of people management practices on organizational performance. Their study was based on Indian software companies and attempted to develop and test a causal model linking HRM with organizational performance through an intervening process. HRM practices include, Training, Job design, Compensation, Work environment and incentives directly effect organizational performance viz; employee retention & employee productivity.

Bowen and Ostroff (2004) in their study introduced the construct Strength of the HRM system and described the meta-features of an HRM system that result in a strong climate in which individual share common interpretation of what behaviours are expected and rewarded. The strength of HRM system can help explain how individual employee attributes accumulate to effect organizational effectiveness. They augured that climate is a mediator of HRM-Firm performance relationship. Guest, Conway and Dewe (2004) analyzed the data gathered as part of a separate study of 1308 senior personnel managers; provide a useful contribution to the debate. They have for example identified fourteen HR practices that can help contribute to workforce competence as well as employee motivation, participation and commitment which together make up the high performance. Their analysis identified that how the HR practices are related to four key organizational outcomes: Employee performance, employee innovation, employee relations and intention to leave. Interestingly, one half of the HR practices studies showed a significant effect on organizational outcomes. Results showed that team working, performance appraisal and job design emerged as the most significant in explaining the outcomes investigated, with 68employee involvement, training and development, provision of information and equal opportunities being less important. Tessema & Soeters

(2006) examined how, when and what extent HR practices affect performance at employee level. In their study, they used HR outcomes as mediating factors between HR practices and employee performance. They collected data from civil servants in Eritrea, Africas youngest and poorest country. The authors argued that the economic and political environment within which HR practices operate has not been conducive in maximizing the impact of HR practices and performance. These findings highlight the situation of most developing countries

(Khilji, 1999, 2003, 2004). Despite that result demonstrated a strong HRM performance link in Eritrean civil services. As such this finding aligns to a large degree with other studies on HRM performance link in western countries. Staffing, Replacement, Training, performance evaluation, compensation, promotion & Transfer, Grievance procedure & pension programs were the HR practices that they used in their study. Nikandrou and Papalexandris (2007) examine the 5practices that successful companies with acquisition experience, adapt when managing their personnel. They examine the impact of strategic HR practices on organizational effectiveness. Their model includes strategic HRM such as 5centrality of HRM in Strategy, Selection, Training and Development, Incentive schemes & Line Management development. The results explored that Top performance 5seem to handle more effectively than non-top performance the strategic position of HRM, the degree of formalization of HR practices, Training Development issues, participation of Line Managers in managing people and internal labour market opportunities. The companies involved in M& A both the strategic position of HRM and Formalization of HR practices are statistically significant in terms of productivity & innovation. Finally, Bashir and Khattak (2008), evaluate the impact of HR practices on perceived employee performance 32in the public sector of Pakistan. This study examines the relationship between three key Human Resource (HR) practices i.e. compensation practices, performance evaluation practices, promotion practices and perceived employee performance. A questionnaire was distributed to supervisors and lower level employees in the public sector organizations of Pakistan. The results indicate that performance of public sector employees is affected by compensation practices, and promotion practices

Therefore, the above empirical studies provide the evidence of HR performance link at organizational level. Very few studies have examined the performance at individual level; rather, I have been able to find a single study with reference to Pakistan which has been conducted in public sector. Understandably, Pakistan in general has been described as an under-researched country by Aycan et al (2000). Since major 49research has been conducted in private sector with the impact of HR practices on organisation wide performance, no study has examined their applicability in educational sector, especially the teachers performance (Individual perspective). The teachers views are particularly important because GOP, National Educational Policy (1998-2010) states that the teacher is considered the most crucial factor in implementing educational reforms at grass root levels Thus the present study will be unique to evaluate the impact of HR practices on teachers performance for which no earlier research could be found addressing the HR issues under consideration. Furthermore, all studies used Quantitative Techniques to explore the causal relationship neither of the study employed Qualitative Techniques. 10However, there is a great need to examine the impact of HR practices on employees performance as well as to explore the nature of HR practices in developing countries like Pakistan, using Qualitative Methods, where these concepts of HR practices may not be very popular among teachers. Though organizations are converging HR practices from multinationals (Khilji, 2003), HR practices differ in different societal contexts and there are no practices, which can be applied universally. Each organization has to define the desired performance levels of its employees as Khatri (2000) argues that 49HR practices vary a great deal according to the performance measures. So, one can say that there is not a universal set of HR practices that can be successful everywhere as it depends on a

number of contingency factors. Khatri (2000) further suggest that 49HR managers should not copy HR practices from other companies blindly. Effective HRM would be contingent mainly upon countrys economic and political condition (Tessema & Soeters, 2006). Therefore, the qualitative phase of the present study will greatly help to explore the nature of HR practices in developing countries in general and specifically to explore the meanings and perceptions of teachers about HR practices as contributing factor to their performance Human Resources (HR) is an essential component of successful start ups and businesses. HR practices have the capacity to align with business objectives and to positively impact employee satisfaction and, ultimately, their work capacity. The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance states an increasing body of work contains the argument that the use of High Performance and Work Practices, procedures, including incentive

comprehensive

employee

recruitment

selection

compensation and performance management systems, and extensive employee involvement and training, can improve the knowledge, skills and abilities of a firm's current and potential employees, increase their motivation, reduce shirking and enhance retention of quality employees..." (Huselid, 1995, p . 104) It can be concluded from this statement that appropriate HR practices do have positive effects, such as increased knowledge, skills and abilities that would lead to increased productivity.

Additionally, HR has the capacity to augment the overall company performance. The last quote demonstrates how HR practices contribute to increased employee performance and, as a result, how proper HR practices can also lead to increased

business and financial performance. Companies are always looking to take advantage of the latest innovations in technology and by implementing strategic HR from the beginning, start ups can gain a competitive edge through small business innovation. The article by Husselid states, "In both this largely theoretical literature and the emerging conventional wisdom among human resource professionals there is a growing consensus that organizational human resource policies can, if properly configured, provide a direct and economically significant contribution to firm performance." (Huselid, 1995, p. 104) While this statement is theoretical, I believe the only reason it hasn't been proved with concrete data is because the effects of HR practices are often very difficult to measure. One thing is certain, recruitment is a central HR practice and recruiting and retaining the best employees is sure to have a positive effect on overall employee performance, as well as the company's financial performance. Consider the emphasis that start up companies like Facebook, JetBlue Airways and many other companies put on recruiting and retaining the right employees from the beginning. It is obvious that this HR strategy is crucial to a successful business. In support of this argument, the article "Building Competitive Advantage Through People" states, "...skilled and motivated people are central to the operations of any company that wishes to flourish in the new age." (Bartlett, Ghoshall, 2002, p. 34) This statement further states the importance of HR practices, especially recruiting, retaining and maintaining employee engagement.

In the top firms, there is an apparent link between HR and organization strategy. This link, known as -"Strategic HR," states that everything in a company communicates, including compensation, benefits, recruitment, and policies. HR makes sure that all of these different areas link back to the overall values of the

company and the business strategy. Getting the right employees on-board, training them, and guiding them on a career path to success is central to strategic HR. The Bartlett and Ghoshal article mentioned before states, "In short, people are the key strategic resource, and strategy must be built on human-resource foundation." (Bartlett, Ghoshal, 2002, p. 35) In terms of the value of people, this same article has a great GE example. It states, "When it [the stock market] values a mature, capitalintensive company like GE at 10 times its book value, it is seeing something of greater worth than the physical assets recorded in financial account." (Bartlett, Ghoshal, 2002, p. 35) GE is valued much higher than its financial assets due to its great people and processes, as well as its ability to take advantage of the latest innovations in technology and human resources.

Training and development are other HR practices that tie closely to the organizational strategy. Most start ups aspire to grow and to have sustained success through generations. A large part of creating and maintaining this success is due to developing employees into the future leaders of the business. The article, "Delivering Strategic Human Resource Management" quotes several influential experts in describing the value of the employees by stating, "Access to machinery and equipment is not what differentiates companies from one another. The ability to use it effectively is... A company that lost all of its equipment, but kept the skills and knowledge of its workforce could be back in business relatively quickly. A company that has lost its workforce, while keeping its equipment, will never recover." (Groysberg, McLean, Reavis, 2006, p. 3)

In conclusion, the prior examples clearly define the key objectives of HR and demonstrate that there is a defined method behind everything that HR does. According to "Building Competitive Advantage Through People," which states that a major barrier to success in today's environment is the managers' outdated comprehension of strategy: "At the heart of the problem is a failure to recognize that although the past three decades have brought dramatic changes in both external strategic imperative and internal strategic imperative, many companies continue to have outmoded strategic perspectives." (Bartlett, Ghoshal, 2002, p. 34)

Entrepreneurs that implement proper HR practices when starting their business will likely gain a competitive edge over their competitors.

In the organizations or firms, human resource management (HRM) practices as a mediator between HRM strategy and HRM outcome. Sheppeck and Militello (2000) focus HRM strategy into four groups: 1 employment skill and work policies, 2 supportive environment, 3 performance measurement and 4 reinforcement and market organization whereby Guest (1997) divides in to three categories: differentiated on innovation, 1 focus on quality and 2 cost-reduction.

However, there are many definitions in previously researches on HRM strategy, but all strategies used to achieve the same organizational goal through HRM practices. Sivasubramanian and Kroeck (1995) verify the various perspective of human

resource management as the concept of fit or integration. Based on Guest (1997) suggests the various types of human resource management can be classify in two dimensions as internal and external fit. External fit explain HRM as strategic integration whereby internal fit as an ideal of practices. Several of researches try to examine which fit is appropriately. Youndt et al., (1996) who observe the external fit, their result shows more particular fit between high performance HRM practices and quality strategy. Stavrou-Costea (2005) also argued that the effective human resource management can be the main factor for the success of a firm. As supported by Lee and Lee (2007) HRM practices on business performance, namely training and development, teamwork,

compensation/incentive, HR planning, performance appraisal, and employee security help improve firms business performance including employees productivity, product quality and firms flexibility.Ruwan (2007) empirically evaluated six human resource (HR) practices (realistic job, information, job analysis, work family balance, career development, compensation and supervisor support) and their likely impact on the Marketing Executive Turnover. Results of regression showed that the HR practices on job analysis are strong predictors of Marketing Executive Turnover. A long the same line, Abang, MayChiun and Maw (2009) two components of human resource (HR) practices namely, training and information technology have direct impact on organizational performance. In addition, Zaini, Nilufar and

Syed (2009) four HRM practices showed that training and development, team work, HR planning, and performance appraisal have positive and significant influence on business performance The study suggests that incentive plans based on rewards, bonuses, salaries enhancement, and performance appraisal reports could be useful strategies to be reconsidered in the surveyed. This paper utilizes HRM practices in specific internal fit as an ideal set of practices which identify three variables; supervision, job training, and pay practices believed to influence job satisfaction and toward turnover of the employees, as some of the practices of high the performance working system organizational psychologists should advise their clients to appoint the "right person" for a supervisory position. Be aware that good employees do not always make good supervisors. The role of supervisor is extremely difficult. It requires leadership skills and the ability to treat all employees fairly. Moreover, the supervisors suppose to have a positive feedback whenever possible and should establish a set means of employee evaluation and feedback so that no one feels singled out or turnover In HRM practices the

Job satisfaction played an important role to employees turnover because it would lead employee resigned when their job satisfaction is low. Theresults indicate HRM practice a positively and significantly correlated with job satisfaction. On the other hand HRM practice and job satisfaction are negatively and significantly correlated

with turnover. However, the results of HRM practice and job satisfaction are strong predictors of turnover. There are plentiful of job satisfaction research that often in two different types of variable which effect on job satisfaction Human Resource Management (HRM) emphasis on the high performance working system practices on job satisfaction as hence employee performance and contributed the organization performance. Job satisfaction is one of the most widely studies work-related attitudes in the fields of industrial and organizational psychology, and organizational behavior.Many researchers identify in several ways in definition of job satisfaction. Greenberg and Baron (1997) define job satisfaction as an individuals cognitive, affective, and evaluative reactions towards his or her job. Locke (1976) provides more specific definition on job satisfaction as the state where ones needs and ones outcomes match well. According to Cranny, Smith and Stone (1992) job satisfaction is a combination of cognitive and affective reactions to the differential perceptions of what an employee wants to receive compared to what he or she actually receives. Job satisfaction is a factor that would induce the employee to work in the long term position. Regardless of job satisfaction the organization or firm would confront with the cost of recruitment caused by turnover. For this reason, the organization should pay attention to employees job satisfaction as well. Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their work. Job satisfaction can be influenced by a variety of factors, for example pay practice, quality of one's relationship with their supervisor, quality of the physical environment in which they work whereby turnover refers to the characteristic of a

given company or industry, relative to rate at which an employergains and loses staff. For example, if an employer is said to have a high turnover, it means that employees of that company have a shorter tenure than those of other companies in that same industry. Job satisfaction and turnover are basically related by which job satisfaction has directly effect on the turnover. Vast literatures exist on the relationships between two variables as mentionedjob satisfaction is generally believed a higher job satisfaction is associated with increased productivity, lower absenteeism, and lower employee turnover (Hackman & Oldham, 1975). Wong (1989) explores the impact of job satisfaction on intention to change jobs among secondary school teachers in Hong Kong. His study affirms that low in teachers job satisfaction tend to have low level of commitment and productivity. Moreover, teachers respond prepared to leave teaching if a job alternative of offering a higher salary became available. In other word, lower in teachers job satisfaction significant predictors of teachers' intention to leave the teaching profession. There is a longstanding interest in the relationship between job satisfaction and turnover, Griffeth, Hom and Gaertner (2000) give precisely a negative association between job satisfaction and stuff turnover. In addition, Glance, Hogg and Huberman (1997) mentioned the relationship between turnover and productivity asserted that the lower turnover is positively correlated with productivity. Amah (2009) stressed that job satisfaction was found to have a direct negative relationship with turnover intention. These results indicate that the effect of job satisfaction on turnover can be enhanced in two ways; namely, when employees find congruence between their job and their self identity, and when involvement in such jobs enhances their overall life satisfaction.There are various interpretations of the term supervision, but typically is a management activity and supervisors have a

management role in the organization. Supervision has essential to the organizations and firms since the supervisors have extensive knowledge of job requirements and also adequate opportunity to observe their employee. Normally, supervisors define as manager. Moreover, supervisors have something to gain from the employees high performance and something to lose from low performance in order to have high productivity. There are some studies explained the relationships among supervision, and job satisfaction According to Cumbey and Alexander (1998), verify the relationships between job satisfaction and effective supervisoryIn their results affirm that the effective supervisory on employee (registered nurse) is positively effect on job satisfaction. Bradley, Petrescu and Simmons (2004) investigate the impact of human resource management practices related to job satisfaction. They employ the supervision as independent variable and job satisfaction as dependent variable. The result gives the idea about the supervision, the workers are prefer to have closed supervision of work since they enjoy some visual assessment of their performance, suggesting that monitoring is desirable. Therefore, in their study reaffirms that there is positively associated between supervision and job satisfaction. Furthermore, Thobega (2007), measures the extent to which supervision experienced by agricultural education teachers in Iowa is related to job satisfaction and intention to remain in the teaching profession. They select the components of supervision included observation, preobservation conferencing, postobservation conferencing, supervisor support, and supervisor guidance. The results demonstrate the supervision provide the positively correlated with job satisfaction. However, overall components are not useful predictors of agriculture teachers job satisfaction of their intentions to remain in

teaching. training is refer to a planed effort facilitate the learning of job-related knowledge, skill, and behavior by employee (Noe et al., 2006). In HRM practice, training is an important factor for productivity, higher productivity observed in firms that report providing training (e.g. Tan & Batra, 1995; Aw & Tan, (1995). Schaffner (2001) on his study assert the relationship between job training and productivity, however job training tends to be lose value when the workers change job, therefore the organization or firm increase the cost of keeping trained position filled. The relationship between job satisfaction and training has be addressed in some previously studies, Bradley, Petrescu and Simmons(2004) explain that creating ongoing learning as well as training in workplace has a highly significant effect on job satisfaction, in addition on their study indicates that training increases the probability of work being either completely or very satisfied that enhance employee motivation and commitment. In other word, on-going learning or training has positive associated with job satisfaction. Likewise, Doeringer, Evans-Klock and Terkla (1998) find that by providing the education and training to adopting employee or recruitment preferred to continuous on-the-job instruction to off-the-job training than only provisional on education and training (Bradley, Petrescu & Simmons, 2004). Conti (2005); Dearden, Reed and van Reenen (2006); Ballot, Fakhfakh and Taymaz (2006) past

researchers have found evidence on the impact of training on productivity and where employees and employers were able to share the benefits from training. Pay practice is one of human resources management practice which normally refers to pay, wage, salary and benefit etc. The pay has an important role in implementation strategies. First, a high level of pay and/or benefits relative to that of

competitors can ensure that the company attract and retains highquality employee, but this might have a negative impact on the companys overall labor costs. Second, by tying pay to performance, the company can elicit specific activities and level of performance from employee (Noe et al., 2006). Generally, pay practice is very significant for the

organizations and firms which can attract employees to apply for the job as recruitment. On the other hand, the employees have to retain the high performance of work in order to show their quality of work otherwise will lose their work. Pay practice has some correlation with job satisfaction as well. A long the same line, the relationship between pay practice and job satisfaction is useful to influence motivation of employees work then achieved higher productivity. According to the efficiency wage theories affirm that paying higher wage can sometimes increase works productivity. These theories address three main channels by which wages can raise productivity (Katz, 1987).The first place assumes hat the harder workers work the higher is the cost of being caught shirking and the higher is the probability of being caught shirking. A higher wage increases worker effort due to the greater cost to workers of losing the job (meaning workers want to reduce the chances that they are caught shirking). In other word, the wage or pay practice is influenced employees work and turnover as well. Second, a higher wage increases effort by increasing workers' loyalty to the firm (Akerlof, 1984). The relationship between pay practices and job satisfaction is ambiguous in the efficiency wage theories. However, there are some distinct studies such as Steijin (2002) examine the overall job satisfaction of Dutch public workers with respect to

their pay. The results show that there is positive effect of the existence of HRM practice which refers to pay practice on the job satisfaction. Likewise, Bradley, Petrescu and Simmons (2004) observe the impact of human resource management practices and pay inequality on workers job satisfaction. On their study employ many HRM practices such as work organization, recruitment and pay practice as independent variables and job satisfaction as dependent variable. The results show that the pay practice is positively associated with the job satisfaction.