Asian Research Thesis Index

Abstract

This study is conducted to evaluate the affects of employee selection and employee development on
organizational performance. Both employee selection and employee development are important issues for
organizations. These two variables have the potential to boost up the organizational performance. The Study
shows that selection of right person is more critical than development of employee. A little mistake at the time
of selection of employee will badly affect the organizational performance. Selections tools used in most of the
organizations are out dated. Government organizations do not pay much attention on the development of
employees.
The study is based on data collected through questionnaire survey from three government and three private
organizations located in Islamabad and Rawalpindi. The results indicate that both these variables are positively
correlated with organizational performance in government and private organizations but there intensities vary
across organization. In government organizations employee selection is positively and significantly correlated
with organizational performance, whereas employee development is weakly correlated but not statistically
significant. In private organizations both employee selection and employee development are positively and
significantly correlated to organizational performance. In government organizations, organizational
performance is only 20.7% explained by these two variables while in private organizations it is 56.6%, so this
difference clearly depicts that employee selection and employee development are main constituents of
organizational performance.

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