The Impact of Contractual Hiring on The Performance of Project Based Organizations.

Abstract

The concept of contractual hiring is gradually increasing with the latest innovations as now days the trend of Project-based organization is dominant and people are hired on contractual basis. The project-based structured organizations are known as „Projectification‟ and these are considered as the gateway to the innovation. Human resource management and traditional trends of hiring the permanent employees is different for contractual hiring. Similarly, the temporary employees have different concerns at their workplace in contrast to the permanent employees. Due to which, the organizational commitment is affected. The employees hired on the contractual terms face different set of challenges related to work-life balance, job security and morale. These factors influence the productivity levels of the project targets. In lieu of considered condition, it is observed that employees hired on the temporary basis are less committed to the project deliverable which leads to unscheduled turnovers of the employees. These turnovers have an impact on the organizational performance. In order to sustain the growing market challenges, the organizations need to lower the turnover rate of the employees and need to work on the low morale and other associated factors. For statistical analysis, data is gathered from the Pakistan‟s largest IT industry as Pakistan is one of the leading exporters of software industry. The IT industry in developing country hires employees on the contractual basis. In order to collect data, a questionnaire is formatted and data from IT industry employees of the Pakistan is target population. A quantitative data collection technique is used to collect data and AMOS is used for the data analysis