The XI.Regions Conference, 13th October 2017, kaposvár University, Hungary The Role of Human Resource Development on Organizational Effectiveness Considering the Mediating Role of Internal Marketing Mohanad Ali Kareem1, Dr.Mezei Cecília2 1Ph.D. Sholar at kaposvár University, Faculty of Economic ,Doctoral School of Management and Organizational Sciences, kaposvár ,Hungary, (mohannadali25@gmail.com). 2Kaposvár University, Faculty of Economic Sciences, Kaposvár, Hungary, (mezeic@rkk.hu).

Introduction The world is rapidly moving from just organizational to global business thus creating the diversity in the business as well as the employees for this reason the organizations must do the internal marketing to recruit, educate, motivate and align the employees of the organization for the required organizational effectiveness(Malama& Hyder,2015). Internal marketing represents one of modern marketing concepts that are related to the human resource directly, which is provide appropriate work environment for the employees that enhance them to achieve superior marketing performance, the success of internal marketing is a reflecting of the success of external marketing.

Human resource development strategies are set of systematic and planned activities designed by an organization to provide its members induvial and group with the necessary skills, knowledge, and capabilities to meet current and future job demands, in order to enable them to provide better services and create good relations with customers and customer satisfaction (Adhikari, 2010). The HRD practices positively impact organizational performance through employee satisfaction and customer loyalty and satisfied internal customers are conducive to increasing the productivity (Molina and Ortega,2003). The alignment between internal marketing practices and HRD strategies impact positively on the outputs of employee’s performance and organizational effectiveness as well (Asfaw & Argaw,2015).

Human Resource Development A set of systematic and planned activities designed by an organization or HR department to provide its members with the necessary skills to meet current and future job demands (Ratha,2016). Functions of HRD: Training and development (T&D) Organizational development Career development

Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task. – Employee orientation – Skills & technical training – Coaching Development– Preparing for future responsibilities, while increasing the capacity to perform at a current job – Management training – Supervisor development Organizational development : is process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science. – Focuses on both macro- and micro-levels – HRD plays the role of a change agent Career development is ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement. – Career planning – Career management

Internal Marketing The internal marketing is training and motivating of employees to find a clever marketer working in external marketing, make employees unable to provide excellent services through encouraging them to work as a team to serve customers (Kotler& Armstrong, 2006). Organization Internal Marketing Employees External Marketing Integration Marketing Customers Fig.(1)The dimensions of modern marketing

How Internal Marketing Works ? Employee Commitment Customer Satisfaction IM Profitability Employee Satisfaction Customer loyalty Retention Brand Promotion Employee Attraction Performance Fig.(2) IM process

Linkage of HRD, IM, and OE HRD positively influences organizational effectiveness and the relationship between internal customer satisfaction and organizational effectiveness has been supported in multiple empirical studies(Molina and Ortega,2003). The organizations which are want to improve their performance then it’s their foremost responsibility to treat their employees as the internal customers this will give empowerment and courage to the employees to provide their best service to the external customers(Tsai and Tang ,2008). The impact of internal marketing on organizational performance is not direct. It is however through HRD practices .Internal marketing can lead to a better and enhanced organizational culture that would ultimately lead to enhanced organizational performance (Ullah, Ahmad,2017).

Employees involvement and participation Attitude toward service mindedness Treating employee as customer Employee satisfaction Service quality Customer satisfaction Jobs as products Application of marketing techniques internally Attraction and retention of customer conscious employees Competitive advantage Fig.(3) Model of IM Source:(Ahmed,Rafiq,2002)

Cefriel G.L. Gore Elica Cisco System Coca Cola Microsoft 13 6 5 4 3 2 Ranking GPWI 2009 Formalized Refer to: HR Manager Formalized Refer to:Mktg& Communication Manager Formalized Refer to:Mktg& Communication Manager Formalized Refer to: Mktg Manager Formalized Refer to: Mktg& Communication Director IM approach They represent the firm in the two Fundamental and Essential company’s assets are: the social capital and The relationships the primary thing the pivot and the core of the corporate culture partner in achieving the business goals. The resources that allow Cisco to achieve the business goals the password is “fun”, they are called to do their work as serene as possible, combining lightness with great professionalism and innovation Each employee is covered, a witness and spokesman of the mission of The employees are…. Incentives ,Education, Training, Health care Incentives,Education, Training, Health care &Social facilities IM tools & methods Internal talks and meetings Performance& Development index for job satisfaction; Survey for employees satisfaction Internal talks and meetings Pulse survey The annual International survey Questionnaires Internal talks and Microsoft Poll The Annual International Job & employee Employee satisfaction Increased sense of belonging to the company; greater capacity in problem solving Employees’ satisfaction, employee motivation, significant Improvement of economics and of Corporate image. Corporate performance, reducing turnover, Employees’ satisfaction Employees’ satisfaction, employee motivation, reducing turnover Employee motivation, employee loyalty, greater Commitment, productivity Benefits obtained since IM adoption Source: Great Place to Work Institute

Proposed Conceptual Model Internal Marketing Organizational Development HRD Empowerment Training & Development Motivation Organizational Effectiveness Career Development

Discussion On the basis of the review of literature, this study has proposed a conceptual framework which aims to provide insights to managers to enhance positive employee attitudes and behaviors through internal marketing and help in exploring how HRD practices effect on organizational effectiveness with mediating of internal marketing initiatives that can help foster an organizational effectiveness and leads to improvement in organizational performance. The proposed model will help in improving the dimensions of human resource development practices by suggesting new ways of human and service development through culture improvement thus enhancing the performance.

Employee satisfaction creates customer satisfaction and Customer dissatisfaction reduces employee satisfaction this is a two-way effect. One important point is to look into the mechanism of integration between HRD practices and internal marketing which through organizational culture to improve the organizational performance. The most actual perspective IM identify a particular kind of strategies and policies aimed to attract, motivate, develop and make skilled the best human resources of an organization - in order to pursue the business goals and objectives.

References Adhikari, D. R. (2010). Human resource development(HRD) for performance management: The case of Nepalese organizations. International Journal of Productivity and Performance Management, Vol. 59 No. 4. Kotler, P., & Armstrong, G. (2006). Marketing: An Introduction. E:8. Tsai, Y. &. (2008). How to improve service quality: Internal marketing as a determining factor. Total Quality Management, 19(11),1117-1126. Ullah, M., & Ahmad, H. M. (2017). The Impact of Internal Marketing on the Organizational Performance through Organizational culture Mediation. Abasyn Journal of Social Sciences, Vol (10), Issue (1). Fregidou-Malama, M., & Hyder, A. S. (2015). Impact of culture on marketing of health services–Elekta in Brazil. International Business Review, 24(3), 530-540. Ahmed,P.K.,&Rafiq,M..,2002,Internal Marketing :Tools and concepts foe customer-focused management ,Oxford : Butterworth-Heinemann.

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