Based on the Guest 1997 organizational outcome model, this explanatory study examined the effects of five dimensions of practices of HR. i.e. performance evaluation, recruitment & selection, compensation & reward, career opportunities within organization and training & development on proximal business outcomes (Flexibility & Quality of Operations). The study validates components of GUEST model by integrating between HRM dimensions and banking operations, thus strengthens the existing theoretical model of GUEST by improving the comprehensiveness as it provides analytical framework for studying HR. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was utilized in the current study, and tested the study hypotheses by SEM to analyze the proposed conceptual model. It was found that all five chosen HR practices had significant influence on the quality of operations however for flexibility of operations, performance appraisals and career within organization have shown significant role for banking industry of the country, Pakistan. The study contributed to the construction and validation of structural. path and measurement models(MM) of SHRM practices and two selected operational competitive outcomes based on theoretical and empirical foundations, which will help progress the human resource management future researches and important implications for HR mangers, as very little work has been done on interdisciplinary framework of HR and OM specifically within context of South Asian banking Industry.
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