ROLE OF HR IN LEADERSHIP DEVELOPMENT TO DRIVE ORGANIZATIONAL SUCCESS

ROLE OF HR IN LEADERSHIP DEVELOPMENT TO DRIVE ORGANIZATIONAL SUCCESS

1. Introduction

HR is one of the important departments which plays a very important role in any successful organization. Leadership involves a process that is complex whereby a person influences other people to achieve a given objective or task and gives a direction an organization has to move to in a cohesive way. So, the implication of HR is to conduct, direct, and guide to attaining organizational objectives or goals (Nzotta, 2010). In the past years, there has been an increased focus on training on leadership skills and development in both public and private sectors around the world. Many of these nowadays do offer leadership based programs which are focusing on developing leaders because there is a body of research which indicates the positive impact on leadership development across a variety of setting and outcomes (Hasson, Schwarz, Holmstrom, Karanika-Murray, & Tafvelin, 2016).

Purpose of study:

To meet high viable and fluctuating demands in the business environment, where there is a constant need for the organization’s change to success as per its future trends and the concerns of technology. These demands call for development and competent leadership for organizations to recognize and evaluate the present desires of their businesses and improve helpful methods of transformation using their manager’s vision and implementation by it changing innovative approaches to vision success (Kotter, 1990).

Significance of the study

Competent leadership is required in the formulating and implementation of suitable organizational changes by understanding the kind of knowledge, skill, competencies, and talent expected from a leader in order to bring forth a successful change in the organization. It is an important one to know what is the relationship of organizational success change to leadership competency. Many authors agree that organizational success is a process that is desirable and/or the suitable future way an organization will be perceived and decided on the new organizational shape. Therefore, human resource development with a vision of innovative approaches is key to making a change to organizational success (Gesell, 2010).   Therefore, the dream of being a psychological or conceptual future image that is desirable; it is very vital to note that the future of the organization is professed correctly (Bennis&Nanus, 1985). Many scholars have highlighted the leaders with innovative approaches that can increase the chances of the organization (Bass, 1990).

Research Objective

The objective of this study is to examine the relationship between the role of human resource development and organizational success to the attainment of goals.

Specific Objectives

1. To determine the impact of performance appraisal to leadership success.
2. To analyze the relationship between HR development and leadership success
3. To determine the importance of the reward program to leadership success.

Statement of the problem

The concept of human resource development has been discussed by many researchers in recent years to getting understanding its significance to leadership success. The practices of human resource development are all about addressing issues of conditions and influences of human development. At the same time, leadership success has been of discussion in the recent literature. Those studies examined human resource development helps employees in attaining performance results, which enables them to accomplish their objectives and goals. Development and acquisition of new knowledge and skills in relation to internal and external stimulation to a more or less permanent and better change behavior enhancing organizational success.  However, there is a need for developing a holistic perspective in which human resource development relates to leadership success. Many researchers have highlighted a mix of studies that shows the benefits as well as a lack of leadership development in order to have positive impact effectiveness of a leader (Kragt&Guenter, 2018). There is a lack of studies that discovers human resource development role focusing on training employee leadership skills are faced with challenges of identifying right leaders within the organization (Elmuti, Minnis&Abebe, 2005). Lack of complete conception model which examines the relationship and their related outcomes. Therefore, this research is out to review the role human resource development has in developing effective leaders and their impact on the performance and success of the organization and the valuable contribution.

Research Question

Is a relationship between the role of human resource development and organizational success?

Specific Research Questions

1. What impact does performance appraisal has to leadership success?
2. Why do we need for leadership success to take place?
3. What is the importance of the reward program for leadership success?

2. Literature Review

Employee management is a very crucial and significant attribute in human resource development. Deliverables of these employees do design a responsive layout for smooth organizational success. The current research literature explores the finding of the above research questions. To answer this, research material is utilized within the scope of the study.

Performance Appraisal

The foremost obligation of the human resource team undertaking designing the appraisal steps. It was discovered that 58% of the cases have a strong alignment that is established between the goals of the organization and the objectives (Aguenza, &Som, 2018). These allow obtained performance results by these employees calculated to reflect employee effectiveness and contribution towards the success of the organization. Ongoing training and reliable program advancement that are directed to the employee to enhance performance appraisal conducted gracefully and in supporting manner in 53% of cases.

Projected perceptions from employees’ end pertaining to performance appraisal, which sometimes entails time wasting as well as an undesiring process within the framework of the organization (Sanders & Yang, 2016). These kinds of mental set get altered naturally depending on the appraisal plan applied with realistic and determined expectations in the attainment of organizational success (Oliver, 1996). It has been evidenced that 63.4% of the cases have greater employee performance, which is associated with a high salary scheme.

Reward Program

So, it’s the responsibility of HR to ensure that the company has the right people that are performing the right job at all levels by focusing on different areas. Recognition for success in one area which ensures that those at managerial positions are being recognized for their contribution and human resource has to implement a rewarding system to encourage good work (Davenport, 2015). The researcher highlights that rewarding leaders publicly will be more rewarding and more beneficial to the organization’s output. This is due to the reason that leaders are viewed to be facilitators of success through their employees who form a foundation for the leaders’ success. Visible and effective leaders who lead by example, do inspire other employees to build their leadership qualities for themselves (Maheshwari&Yadav, 2019). Therefore, work recognition, the progression of careers, and opportunities make new leaders emerge from employees who were asked ways human resources may promote leadership development (Maheshwari&Yadav, 2019).

Training and Education

Knowledge development consists of five steps. One is the preparation of learning in order to ensure effective learning; organizations need to have adequate preparation for new knowledge acquisition (Hiemstra, 1991). Secondly, the exchange of information allows employees to obtain the contents that are necessary to improve their skills, behavior as well as knowledge. The learning environment has to support this exchange of feelings and ideas freely (Merriam, 1988). Thirdly, knowledge acquisition occurs when an individual has to transpose certain activities on new ones that finally changes his behavior and puts it into practice. Fourthly, is where an organization fails to help employees integrate and transferring skills to their jobs, then the organization finds it very difficult to change. Lastly, most individuals need to be held accountable for their training and efforts and improvement.

Empirical studies have evidenced that overall positive effect helps our understanding of why and when training of leadership results to greater leader’s effectiveness remains insufficient (Kragt&Guenter, 2018).  This appearance provides top quality training for leaders in developing them better to and applies the skills (Gilpin-Jackson &Bushe, 2007). This achieved through education support using practical approaches such as mentoring and on-job training (Elmuti, Minnis&Abebe, 2005). While studies revealed that improving and/or imparting knowledge on leadership training skills will definitely drive organizations to success, however, limited studies continue to exist on determining whether human resource role on effective training and educational approaches be applied in developing leaders (Fiedler, 1996). Therefore, the research tends to fill the gap in the literature by examining and as well as identifying what role the human resource plays in developing leaders through training in order to drive organizational success.

Leadership Success

The effectiveness of any organization is measured by success. This is a perception that is widely spread that training fails to have a significant impact due to the failure to transfer or is lost with time (Gilpin-Jackson &Bushe, 2007). However, recent research evidence showed that intervention of leadership does have a positive effect on behavioral and performance outcomes (Kragt&Guenter, 2018). So, the connection between training and performance of the organization may sometimes be due effect and identified potential effect of a leader, and by attending such training help to improve employee work harder and become motivated (Allio, 2005), Thus, this shows that the act attending training positively affect leadership and motivates individuals to work hard and enhance performance.

From existing research, the training of leaders has an impact on their actions and awareness. However, developing leadership capabilities can be an actual perceived improvement. So, the individual can develop key skills that enable them to be effective. The studies revealed that effective leaders have a positive influence on the success of the organization, whether by employee commitments or its financial performance (Nanus, 1992). While studies revealed that improving leadership training skills drives organizations’ success, limited studies continue to exist on determining the human resource role on effective training and educational approaches to be applied in developing leaders. Therefore, the research tends to fill the gap in the literature by examining and as well as identifying what role the human resource plays in the development of leaders in order to drive the organization to its success.

Theoretical Framework

The theory of contingency seeks to explain leadership success based on contingencies (Performance appraisal and reward program) through education and training. We see that leadership success is strongly affected by this situation and believes that leaders are products of these situations if they get proper education (Borrow, 1977). This approach tries to explain the interaction that exists between human resources development and leadership success. The framework points out further that projects performed have a close relationship with leadership success despite the group norms, external threats, and culture as well. These situational factors do enhance human resources effectively.

3. Research Methodology

The study took various ways and approaches to collect data. This study was primarily both quantitative and qualitative based. The reason for selecting this strategy was exploratory in nature. This was due to the quality of flexibility, which allows researchers to use many data collection methods (Golafshani, 2003). The study was collected from various organization entities in Abu Dhabi by employing a random sampling technique whereby senior management was selected, making 103 respondents. We called the respondents by phone and requested them to provide us their emails if they are different from those provided on their company websites. Then we sent out questionnaires by email to all our 103 participants to fill them up and return the same by email.

Data collected through an electronic survey using a structured questionnaire. They were sent to the company’s senior management through email requesting them to fill up and return them. Then they were followed up by telephone to make sure they have filled them up. 103 questionnaires were issued, filled, and all were returned. The study used a quantitative method of data collection in order to improve evaluation using the limitations of one type by balancing the strength of another (Yin, 1989). All the data we collected, we saved them carefully and confirmed now and again by cross-checking them to ensure they are OK comparing the information available on the internet in order to increase the creditability of the work. To ensure proper and credible results, it must be reliable. We employed different channels of data collection, and the researcher towards the same was considered.

Data were analyzed using descriptive tools of statistics. Statistical tools were used in analyzing the demographic features of respondents, while the coefficient of correlation use also used to test the significant relationship between human resource development and leadership success. The significance of the results was found to be positive (Oliver, 1996). We employed a content approach analysis to identify the constructs that we identified in the literature and their relationship with leadership success. Also, we did in-depth and cross analysis to identify the constructs in the literature to ensure the relationships with organizational success match. We reviewed different researchers’ literature to build our model, which was our primary objective.

4. Results

Table 1.1: Social -Economic characteristics of respondents

1.2 Questionnaire Responses

Table 1.3

Table 1.4

F > F critical

p-Value < α (=0.05)

Reject Ho

Reject H0 (Accept H1)                  H1 :μH ≠ μM ≠ μL

We are 95% confident (1-α) that performance appraisal does not impact leadership success.

Since only one means must be different from rejecting H0, we cannot say which mean(s) is/are different.

Table 1.5

t stat | < t critical

0.26| < 2.35

Do Not Reject Ho

Do Not Reject H0                            H0 :μH = μL

We are 95% (1- α) confident that means performance appraisal impact leadership success

Table 2: Analysis of the relationship between leadership and HR development

Table 2.1

Table 2.2

Table 3: Empirical results binary logistics regression Model

Table 3.1

r = 0.94

Strong Positive Relationship

A strong positive correlation indicates that the reward program impacts leadership success.

Table 3.2

25% measure leadership success

F-Test

F                      Significance F

0.99                             0.39

Significance F is more than α (= 0.05)

The Linear Regression Model is Invalid

Field Survey work January 2020

5. Discussion

Characteristics of respondents:

Table 1 indicates that 66% of respondents according to sex were female, whereas 37% were male, and therefore female opinions dominated our responses. The table also indicates that 3.9% of the respondents were aged between 18-24 years bracket, 44.7% aged between 25-34 years, 42.7% aged between 35-44 years, and 8.7% aged 45 and above years. This indicates that the age bracket of 25-34 years dominated the responses and therefore are within the productive age. The table indicates that in terms of marital status, 27.2% of respondents were single, while 72.8% were married, and the married respondents dominated the results(Davenport, 2015). The table further indicates that 3.9% of respondents were high school, 55.3% were bachelors, 39.8% were masters, and 1% were Doctorate holders. Therefore, the bachelors dominated the responses, and therefore leadership success can easily adapt (Nzotta, 2010) and (Borrow, 1977).

Table 2 test correlation indicates that performance appraisals of r = 1.53, reward programs r = 1.50, and training and education r = 2.22 relate to leadership success significantly. The results of table 4 indicate that regression analysis shows performance appraisal, reward program, training, and education and leadership success are the significant factors that managers need to exhibit their organizations in order to achieve success (Davenport, 2015). The table also indicates that 58.895 is significant at the 0.05 level, meaning that a 95% confidence level of independent variables significantly contributes to the development of human resources in these organizations. Test of R=0.94 reveals that 94% of probability variation of the development of human resources variables are strongly minded by good leadership using the regression method. The result implication is that no performance appraisal results-oriented valued reward program without good leadership success (Oliver, 1996). These initiates and coordinates the training development towards organizational success. At the same time, it is only good leadership in the organization that will champion the management of employees and ensuring their safety and health as well. Therefore, education and training are a key function of leadership success in the organization. Likewise, good leadership in the organization champions the course of jovial employees.

6. Conclusion and Recommendation

From the findings of this study, we find that leadership success is all about coordination and is affected in a positive way through human resource development. Therefore, leadership success is must be standardized in order to meet organizational performance, hence human resource development being demonstrated by employees of those organizations. On recommendation, leadership should need to endeavor in carrying its followers, and the principle of leadership on other people’s opinions is respected. We find that leaders in positions need to lead their employees by example if they desire to achieve the loyalty of their employees. Also, when they exhibit good leadership, they will ensure their followers reach maximum potential and move beyond their personal limitations. Even though the study was limited to online surveys only, which may not be accurate, more studies can prove beneficial to the work and results were sufficiently helpful to increase the leadership success as well as innovation. This study may have been very accurate if it could have been done using the qualitative method. There is a debate that is nowadays that leaders are born or made. Many researchers have different views on the matter of how leaders are visionary who may don’t have analytical skills but have a great ability to remark the desire of organizations’ success.

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