Effects of Implementing Strategic Human Resource Management on Organizational Success : Case Study of ( Kuwait Finance House-KFH )

This paper, entitled “Effects of Implementing Strategic Human Resource Management on Organizational Success: Case Study of (Kuwait Finance House-KFH)”, revolves around the influence of implementing strategies of Human Resource Managmenet (HRM) in the overall organizational success. The researcher took Kuwait Finance House (KFH) in Kuwait as a case study through distributing a self-built questionnaire on the bank’s employees in order to measure how implementing HRM strategies on the employees’ intention to deliver their organization to the shore of success. The paper took a percentage of 5% of the total KFH employees, 100 employees. The results showed that the management of KFH implements HRM strategies in a way that encourages the employees to present the best of their performance in order to accomplish the organization’s goals and objectives. Indeed, the positive and undeniable numeric results that the questionnaire managed to give showed that there is a healthy implementation of the HRM strategies in KFH which are familiar among the bank’s employees so it is recommended that this experiment should be generalized among other Kuwaiti organizations as a prototype of implementing HRM strategies in order to guarantee organizational success.

The previous paper titled "Effects of Implementing Strategic Human Resource Management in Organizational Success" have gone through the influence of implementing strategic human resource management on the organizational success and how implementing such strategies may have the influence to set the organization to a higher level of success bearing in mind the process of bringing the vision and mission of the organization to reality.However, the ongoing development that have reigned the world during the last few decades specifically technology wise managed to throw its influence on every aspect of life majorly taking into account the importance of the human element in managing and administrating these developments in a way that guarantees the best and most efficient operating of modern technologies.
According to the New York city department of education report in 2008, nowadays, leading organizations and corporations in the world have devoted a major share of its capital, assets and efforts in order to facilitate and aid the human element in the most efficient way, there are departments with separated financial wallet that are devoted for the human elements, these organizations are attracting experts and specialists in the field of human element and many workshop and seminars are held on the critical existence of such an idea worldwide.This study aims at understanding the degree of influence that human resource management strategies may have on the organizational success taking the Kuwaiti Finance House-KFH-as a case study to be studies and analyzed.

Case Study Background
The Kuwaiti Finance House (KFH) is considered to be one of the first and most importance banking establishment in the state of Kuwait.KFH was established back in 1977 as a pioneer banking entity specified in presenting Islamic banking services, it has grown to be a leader in the field of banking industry due to its main goal which insists on employing Islamic standards (Shari'a) in the services that it provides.Islamic Banking is a banking system that is consistent in its nature with the Islamic traditions and Shari'a standards in which the Islamic principles of economy are most prevailed.Based on its location and culture-Middle East (Kuwait)-its Islamic orientations and tendencies were well-received among the population and citizen which increased its popularity and helped its services grow to the optimum.Among the services that KFH provide are (website of KFH, 2013): -Trade with markup or cost plus sale.
-Renting for beneficial use.
KFH seeks through its vision to be take a leading role in the field of the Islamic banking and financial services and to become the most adequate sharia' compliant bank on both local and international levels.In addition to that, KFH hold the responsibility to deliver the best services for stakeholders and customer guaranteed with protected and enhanced interests (website of KFH, 2013).
This study takes KFH as a case study in order to understand to what level does it implement a chosen HRM strategy and how this strategy may have the power to influence the employees' image about their job in terms of loyalty and performance which in its role will impact the process of achieving the mission and vision of the bank.

Development of Human Resource Management
According to Vosburgh, Resots and Mirage (2008), the idea of training, reforming, and refining the human element in an organization is considered to be of a great importance in the field of economic reformation and bringing any organization's goals and objectives into reality.The authors argue that having a functional HRM have reached a crossroad with the concept of organizational competitiveness and transformation.Recently, and during the last decades, most of the organizations have responded to the external changes and pressures and transformed its orientation away from the idea of "Personnel Department" towards the concept of "Human Resource Management" which throws more emphasis on the idea of training, qualifying and refining its employees' skills more than the paper and managerial works that the personnel department used to hold (Aliaga & Swanson, 2002).
Many ideas and notions have emerged over the last few decades on the definitions of HRD, among the most popular; Harbison and Myers (1964) have defined HRD as the series of developments that takes place on the idea of increasing the knowledge, capabilities, skills, efficiencies and effectiveness of individuals in the society.From Nadler's point of view (1970) HRD is a group of systematic activities in a certain time and place that are devoted to result a change in the behavior.Craig (1976) sees HRD as a process that develops the human race potentials.Jones (1981) defined the HRD as a spread of peoples' abilities that are related to work in its nature so as to reach personal and work goals, while Chalofsky and Lincoln (1983) defined HRD as a process of close examining human behavior in groups within an organization through learning and training.Many definitions have appeared during the last few years and one of the latest definitions was presented by Konan (2010) in which the author summarized HRD as the needed potentials, skill, capabilities and competencies that people need in order to do their job in the right way, these conditions can be attained through the deep influence that the HR department has in the organization (Haslinda, 2009;McGuire, 2010).Lee (2001) describes the emergence of HRM and development as a method of keeping up with the human change in terms of the work, social and business structure.The ongoing change and development in the economic sector has thrown a huge change on the market which is resembled by the huge change in the market tendencies, customers' needs and competitive advantages.In order to be able to compete with such a change in a successful way the organization has to develop its performance on regular bases including the cost reduction, improved quality and innovative products in terms of speed and quality.The element that has the ability to reach the optimum of all what was mentioned earlier-Human Recourses-is seen to be of great importance that is eligible and empowered enough if managed well delivering the organization to the shore of success and achieving its previously set goals and objectives.From that point, it is seen that understanding the issue of the human resources and adopting the most suitable strategies in order to obtain the beneficiary skills and qualifications that are motivated enough to accomplish the goals of the organization (Kaliscan, 2010)

Human Resource Management Strategy Practices
It is widely known that achieving a goal and reaching the needed objective of a certain project which involve a human intervention must be one way or another attributed to a certain level of motivation and vision.The use of strategic human resource management is considered to be a sort of logic-based analysis that can help in drawing the map to reaching the optimum level of performance among employees in an organization which ends up in the needed accomplishment of success.
Gathering between human resources management and a clear set of strategic planning help employees reach the optimum level of performance and hence deliver the organization to the success level of achieving its mission bearing in mind that the strategic orientation of the HRM focuses of the future tense, in another meaning "What should be done?" Among the most apparent HRM strategic planning practices in the field of HRM are: -Performance-Base Compensation.
This study will chose a form of the previously mentioned HRM strategic practices in order to be implanted on the chosen case study of the current research (Kuwait Finance House) and analyze the influence of such a strategy on the overall success opportunities of the organization.
Performance-based compensation is a strategy that focuses on the concept of retaining, attract, motivate and support the employees in an organization through a studied system of compensations and rewards in a way that serves the organization's mission and vision to the point of success.
Employee participation refers to the concept of (employee's vis-à-vis the organization itself) which refers to the interest in the employee's voice (opinion) regarding the organization's decision-making process, products and services that are presented in accordance with the socio-political values and traditions (Stone, 2005).
Result-oriented appraisal referring to the process of the result-based appraisal that takes place when a promotion or an incentive is about to take place in an employee's file.The process of result-based appraisal aids the decision making process in terms of measuring the degree of promotion, incentive, pay and transfer or even retention.It can also be of great help in the field of training and determining the training needs of the employee based on their result readings.
Broadly Defined Jobs which refers to the status of setting a clear and vivid job standards that an employee has to accomplish based on a previously set criteria, in that case the management has to stick to those standards in order for the work to be done in the optimum way possible.
Employment Security, enforcing a well-built employee security system is the keystone towards guaranteeing the best performance of the staff which will eventually deliver the organization the shore of the success.The most important security standard that may attract the employees into achieving the best possible performance is that employees are entitled to the best human dignity a human can receive.Following this standard is the social security, health insurance, family expenses not to mention the promotions, incentives and rewards.
Internal Career Ladder, which is in internal system in an organization built in order to systemize the processes of promotions through focusing on the individuals' qualifications, skills, attributes and attentions.This system does have the power to influence the employees' loyalty and commitment to their organization based on their feeling of justice and fair.
Training System which comes as a complement for the previously mentioned strategic HR practices.It is widely known that there is no possible way an employee can be hired in an organization with all the needed requisites and skills for the position.A new employee has to be formally and adequately adapted in an organizational internal structure so as be able to accomplish the job requirements, that is when the training takes place as a step towards increasing the employee's qualifications and at the same time guarantees the best and most suitable results of him in the organization.

The Reality of HRM in Kuwait
In a study launched by AbdulJader ( 2012) which aimed at examining the level of HRM modern standards implementation in the Kuwaiti insurance sector, the population of the study consisted of HR managers from 33 Kuwaiti insurance companies in which a questionnaire was distributed to answered by them.The study results revealed that there is an accepted level of awareness concerning modern HRM modern rules among the chosen sample of the managers but this awareness appeared in different level attributed to the manager's experience years and company age, however, the study results showed that there is no impact of the managers' qualifications on the degree of awareness of the HRM modern rules, this was attributed to the level of experience, age of the company, the internal training system and the career ladder that is held inside the company, which may have the ability to influence such an awareness level based on how the manager is evaluated from the head management and hoe the flaws are being handled.However, there are no direct and vivid empirical studies that addressed the nature and reality of HRM in Kuwait, but it is widely seen through the literature that Kuwait pays a pretty much good attention to the idea of Human Resource Management among employees and tries to provide an intensive series of integrated training courses and workshops for employees of the leading business in the region with the help of GCC countries.According to Woerd (2009) recently there is much attention to the field of HRM in Kuwait due to the fact that Kuwait in its nature is different from GCC countries and other Middle Eastern countries, this difference comes from the following characteristics that are found within the Kuwaiti infrastructure: -Massive exposure to new and modern ideas which opened the gate for competition, baptism and gamesmanship.
-The massive oil revenue rendered that Kuwaiti workforce as inadequate.
-The existence of foreign labor (Expatriates).
-The need for a sponsor for the foreign workforce.
Ali and Al-Kazemi ( 2006) pointed out in their study that there is no question that the Kuwaiti government has (SPOILED) its citizens over the last few decades with the oil revenue which ended up with no hard work, efficiency and qualifications.The dependence on the oil revenue helped in redeeming the Kuwaiti citizens as lacking technical competencies and career qualifications which urged the Kuwaiti government to rely on the expatriate force to manage the internal operations of the countries.During the 90s the government started to realize the negative influence of expatriates and launched a (Kuwaitization Campaign) as a 10 years plan reaching to the status of full Kuwaiti citizen operating the internal operations of the countries.Nowadays most of the labor forces in Kuwait are Kuwaiti citizen which draw the government attention towards taking extreme procedures to take better care of employees in order to guarantee the best and most adequate results.

Research Design
In this study, the researcher will examine the degree of understanding of HRM strategies in Kuwait and to what extent these strategies are implemented in the chosen case study and how it may influence its success.The researcher will build a questionnaire for that reason and distribute it on the sample of the study which consists of HRD employees in Kuwaiti Finance House.The questionnaire will be analyzed through SPSS and the results will be translated into paragraph which clears the connection between implementing the HRM strategies and the organizational success.The following strategies will be taken into account: -Performance-Based Compensation.

Method
The questionnaire will consist of two sections, the first is the demographic variables and the second is HRM strategies implementation level.It will follow 5-Likert scale (Strongly Agree-Agree-Neutral-Disagree-Strongly Disagree) and the employees will be asked to tick the most appropriate choice.
Include in these subsections the information essential to comprehend and replicate the study.Insufficient detail leaves the reader with questions; too much detail burdens the reader with irrelevant information.Consider using appendices and/or a supplemental website for more detailed information.

Participant (Subject) Characteristics
A number of 135 questionnaires have been distributed among the sample members, but only 108 questionnaires were retrieved, which is equivalent to a percentage of 80% of the total sample.The questionnaire contained two sections; the first was related to the demographic variables of the sample chosen.Analyzing demographic data shows that a number of 75 participants were males and the rest 33 participants were females; in other words, males formed 69.4% of the sample referring to it as the largest portion.
From the distribution of the sample according to age, the participants were divided into four categories: 22-28 years old, 29-35 years old, 36-42 years old, and above 43 years old.Most of participants were from the category of ages between 22 and 28 years old with a percentage of 57.4%, followed by the category from 29 to 35 years old with a percentage of 26.9%.The least category was from participants above 43 years old with a percentage of 4.6%.
In regards to the nationality of participants in this study, the emphasis was to find out whether the participant is Kuwaiti or non-Kuwaiti, and the results shows that a number of 79 participants out of 108 were Kuwaiti citizens who have the Kuwaiti nationality bearing in mind that the bank's policy doesn't mind having a non Kuwaiti employees within its internal structure but with more emphasis on hiring Kuwaiti citizens for the sake of "Kuwaitization".
In reference to the scientific qualifications, it is shown within the analysis of the questionnaire that most of held Diploma degree, a number of 5 participants held the Masters degree, and a number of 5 participants were held PhD degree.
As for the marital status of the participants, a number of 46 participants were married and have kids.In addition, a number of 34 participants were single and a number of 22 participants were married but do not have kids.The rest of participants were divided equivalently to two categories: divorced or widowed.
Taking a look at the monthly income part of the demographic variables, it was seen that 6 participants preferred not to answer this question, the rest of participants were divided as the followings: 26 participants have monthly income range between 150 and 250 Kuwaiti Dinar, 59 participants have monthly income range between 250 and 500 Kuwaiti Dinar, and 17 participants have monthly income above 500 Kuwaiti Dinar.

Results & Disscussion
The second section of the questionnaire took into account the influence of a group of chose HRM strategies and its influence on their organization's success in terms of motivating them to perform better and try to accomplish the mission and reach the vision of their job.In that sense, T-test has been used for each variable as it is shown in the next two tables.According to the previous tables, it appears that the Sig.value was 0.000 for all the study variables which is less than the significance level of (0.05).These results mean that all the three factors in this study have a significant influence on the organizational success.
To present a clearer analysis, the following discussion takes into account the analysis of every field of the questionnaire in reference to the organizational success.
In terms of the performance-base compensation, as it can be seen through the questionnaire in addition to the analysis that there is an undeniable influence of the performance-Based compensation on the employees' motivation towards their job which encourages them to present better efforts and hence lead the organization to success.Note Table 3.The previous table shows clearly that building a kind of performance-based appraisal (compensation) helps in deliver the employees to the status of full intention towards reaching the goals and objectives of the organization.
Having the HRM following such a strategy may lead to a better employee's performance which deeply influences their attitude and image about their job up to a better level.On the same idea, Greene (2012) stated that presenting a fair compensating system for employees based on their efforts in the job may help in increasing concentration on their job tasks and hence delivering the organizational foals to the shore of success.In addition to that, Khalid and others (2013) discussed the same issue in their paper arguing that the idea of retention of essential employees through a fair and just compensation system have the power and the well to maximize the organization's profitability which logically leads to success hence achieving a great profit means that the organization is successful.
As for the concept of employee security as an HRM strategy, it is with no questioning that this concept can deeply influence the organizational success through having all the impact on the (psyche) of the employee.In another word, we all know the influence of the word "Security" on the psychological reactions of the human, and having a strategic planning that guarantees a well-built atmosphere in order to make the dream of any organization come true.
The following Table 4 shows the responses of the sample members on the employment security paragraph that was presented in the questionnaire.In terms of the employment security, the respondents made it clear that there is an impact of how secure they feel in their job on their performance leading to either success of failure of the organization.According to Ali and others (2010), the social role that an organization plays among its employees is pretty much a sensitive arena that may lead them into the status of maximum performance which also can deeply influence the overall performance of the organization itself.Having a clear and vivid strategy in terms of how and when can employees participate in the decision making process is very essential in determining the level of success that an organization may reach to.The table shows that the sample members responses on the Employees' Participation strategy is highly influential which encourages them to up lift their performance and accomplish the set goal of the organization.On that idea many researches were presented including Emamgholizadeh (2004); Singh (2009) and Kuye & Sulaimon (2011); who stated in their study that the shortest way to clarify the importance of achieving the organizational goals among employees is empower them which comes through involving them in the decision making process.Having a team of empowered employees may increase the level of loyalty and support their intention to deliver their organization to success through well-built performance leading up to success.From another perspective Singh and Dixit (2011) presented the idea of employee involvement as an approach to organizational development and change in a positive shadow that leads to permanent success.The authors argued that the concept of employee participation should not be looked at as a temporary strategy but it should be an internal culture and a way of leading business bearing in mind that the employees hold the future of the organization in their hands and they have the power to change and elevate their business status into a higher level.

Discussion
Going through the literal section of the paper that was previously mentioned and going deeply inside the analysis of the questionnaire implementation on the Kuwaiti Finance House (KFH).The paper came to the following recommendations: 1-The positive and undeniable numeric results that the questionnaire managed to give showed that there is a healthy implementation of the HRM strategies in KFH which are familiar among the bank's employees so this experiment should be generalized among other Kuwaiti organizations as a prototype of implementing HRM strategies in order to guarantee organizational success.
2-Most of the HRM strategy works on the psychological level of the employees which draws the attention towards the fact that psyche and subconscious of employees are essentials in the process of development and success 3-HRM should play a clearer role in the internal structure of any organization regardless of its industry and orientation.
4-Supplying employees with the needed tools and equipments in their job is an important fact but also empowering them gives them the feeling that they are essential employees and hence will present better performance and guarantee success to their organization 5-High profile organizations consider healthy HRM strategies as a daily practice and a main point in its goals and objectives.

Figure 2 .
Figure 2. Organizationa social involvement and employees security sence influence on organizational success

Table 1 .
Number of participants, mean, standard deviation and standard error mean for the study variables *df: degree of freedom.**Sig.: Significance level.

Table 3 .
Means and standard deviations of performance-based compensation

Table 4 .
Means and standard deviations of employee security

Table 5
however shows the sample members responses in regards to the third strategy which is Employees Participation, referring the fact that.

Table 5 .
Means and standard deviations of employee participation