112 International Journal of Economics and Management Sciences Vol. 1, No. 4, 2011, pp. 112-117 MANAGEMENT JOURNALS managementjournals.org THE WAY HUMAN RESOURCE MANAGEMENT (HRM) PRACTICES EFFECT EMPLOYEES PERFORMANCE: A CASE OF TEXTILE SECTOR Yasir Tanveer* 1 , Muhammad Zeeshan Shaukat 2 , Sheraz Ahmed Alvi 3 and Aysha Munir 4 1 Research Scholar, Superior University, Lahore, Pakistan E-mail: ysrtnvr@gmail.com 2 Lecturer, Hailey College of Commerce, University of the Punjab, Pakistan E-mail: mzeeshan.shaukat@gmail.com 3 Research Scholar, Superior University, Lahore, Pakistan E-mail: sheraz.jawad@yahoo.com 4 Research Scholar, Superior University, Lahore, Pakistan E-mail: aysha_m_kh@yahoo.com ABSTRACT This study comprehensively evaluated the impact and links between human resource practices and employees performance of the textile sector of Pakistan. This is achieved by developing and testing the model based on human resource practices including recruitment and selection, training and performance appraisal as independent variables on the employee’s performance as a dependent variable. This study also helps us to understand the significance of human resource practices on the employee’s performance. Questionnaires along with cover letter were sent to the different textile mills and used for the study purpose. Research findings prove significant relationship of Human Resource Management practices and employees performance. Keywords: Employee’s performance, recruitment and selection, training, performance appraisal, human resource management practices, Pakistan, textile sector. INTRODUCTION Today textile industry of Pakistan is facing few problems regarding power supplies and major of all is the Yarn supply and prices. Our industry is prevailing in highly competitive environment with other export oriented countries like China and India but putting everything behind our industry has a competitive edge on all other competitor due to the quality of our product. APTMA, (2007) In 2006 Pakistan contributed 32.8% and 8.1% to the total world exports in cotton yarn and cotton cloth respectively. GDP contribution of textile industry was 8.5%. Textile industry employs 38% of the total labor of Pakistan. These values show that there is huge number of human capital involved in this industry. Reason for the best in the market is our labor. On the other hand there is a horrible fact that they don’t have sufficient salaries and rewards that’s why top quality performers (employees) of Pakistan market have been moved to other countries especially to the Bangladesh market. So here comes the role of human resource practices. Implementation of human resource practices can only be applicable to the organization that is learning and knowledge organization. Keeping in view the competitiveness of the textile market one must have such practices so that the employees could be retained and satisfied. There is not a significant work in this industry in context of human resource management and reason is that top management never realizes the needs and demands of their employees. There are few textile mills that are practicing the human resource management in its full strength and they are getting maximum benefits from it and it is fact that they are the leaders. So to develop a better understanding a research is carried to know the benefits to practice the human resource and evaluating the losses if don’t. LITERATURE REVIEW Guest (2002) has demonstrated that the Impact of HRM on performance depends upon response of worker towards HRM practices, so the impact will move in direction of the perception of employees by practicing