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The Influence of Human Resource Practices on Internal Customer Satisfaction and Organizational Effectiveness

Author

Listed:
  • ULLAH, IRFAN

    (Iqra University, Islamabad, Pakistan)

  • YASMIN, ROBINA

    (Professor, Management Sciences, Iqra University, Islamabad, Pakistan.)

Abstract

It is generally believed that the impact of Human Resource Practices on internal customer satisfaction can create comparative advantage for the organizational performance. The main objective of this study was to find out the impact of Human Resource Practices on internal customer satisfaction and organizational effectiveness. The impact of human resource practices on the overall performance of organizations has been a leading subject of research and the results have been encouraging, indicative of positive relationship between Human Resource practices and organizational effectiveness. Data was collected through personally administered questionnaire-based survey from 290 banking personnel of Pakistan. Structural equation modeling was used to examine the anticipated model. The results showed that some Human Resource Practices appear to be linked to internal customer satisfaction and organizational effectiveness. The implications for practitioners were to modify and emphasize certain human resource practices, and to emphasize the role of internal customers for organizational effectiveness enhancement. These findings revealed the importance of internal customers in enhancing employee morale, organizational commitment, employee productivity, turnover rate and the organization’s ability to attract talent.

Suggested Citation

  • Ullah, Irfan & Yasmin, Robina, 2013. "The Influence of Human Resource Practices on Internal Customer Satisfaction and Organizational Effectiveness," Journal of Internet Banking and Commerce, , vol. 18(2), pages 01-28, August.
  • Handle: RePEc:ris:joibac:0298
    as

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    More about this item

    Keywords

    Human resource practices; internal customer satisfaction; organizational effectiveness.;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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