“Impact of Human Resource practices in an organization on its employees’ performance”.
1.1 Employee Performance:
Employee performance is the execution of tasks and activities assigned to employees as their jobs and the level of proficiency with which they perform those. Overall performance and attainment of an organization’ goals and objectives are directly related to the employees’ performance. Devotion and passion for work and efficiency in performing the tasks are building pillars for setting employees’ performance standards that are developed in accordance with the organizations goals and objectives. Employees through various formal and informal tools, are trained and motivated to meet such standards of performance. However, performance varies from employee to employee depending upon a number of direct and indirect factors and nature of work. In a call center for instance, performance of customer services representative will be measured against the number of successful calls he or she makes weekly or monthly implying that the performance of the worker will be assessed based on established standards the company for successful calls.
1.2 Human Resource Practices:
It is significant to differentiate between HR practices and HR activities. HR activities, time bound and objective in nature, are subsequent of HR practices that are directive and strategic. An example of such is the activity of training sessions for employees on consistent basis subsequent of HR practice of designed training programs. HR professionals however, tend to incorporate both as a combined approach of HR practices and activities. HR practices are designed to achieve the goals of company associated with human resource performance in an efficient, sound and legal manner that set forth the associated HR activities. HR practices, thence devise activities to train and utilize human resource of an organization in such a way that can help attain the goals and objectives which for organization tend to strive.
1.3 Human Resource Practices and Employee performance:
Employees’ selection, hiring, training, counselling, career development, growth and their performance are general human resource practices of an organization. Through these practices HR professionals tend to develop in human capital devotion and loyalty with the organization and leadership skills that may take reigns of management at prime levels in future and work in the benefit of the business. The practice of motivational programs and well-designed training courses can help development of such skills in employees and designing systems for directing and assisting management in performance appraisals of employees. Paving and constructing the career development path for employees is also a human resources practices that enable employees to grow in their careers relevant to their job nature and field of work. An example for this is the designing of promotion programs that are aligned with the employees’ career goals and ambitions. Human resource practices generate activities which take employees working capabilities to the competent and standardized levels of performance resulting in achievement of organizational objectives.
1.4 Background of Study:
Business today has entered in an arena of economic progression with an increasing competition among businesses and industries. Today’s globalized nature of business environment increasingly demands for competent workforces that may prove as a competitive edge for the respective firm. Businesses are relentlessly coping up with the enhanced international standardization of products and services delivery, ever emerging new market trends, advanced business techniques, increased consumer quality consciousness and communication challenges practices in public and private sector are being executed with a strive to meet goals and objectives of the organizations, much of the need is there to conduct thorough researches on these that can give a supportive material to the HR professionals in the development and implementation of practices more in accordance with the blended requirements of businesses and employees (Paré, G. and Tremblay, M., 2007).
Aim of the present study majorly is to investigate the impact of HR practices in organization on performance of its employees’. Subsequent areas of research are to assess the extent of implementation of integrated HR system in the organization as in how far HR activities are incorporated in HR practices and vice versa. Simultaneously, the study attempts to investigate whether the HR practices are solely responsible for determination of varied employees’ performance. To assess these problems and finding the respective answers to the research questions for generating extended knowledge, survey questionnaires will be constructed and distributed among the employees. The study will require an approximate time period of two to three months for the collection of data and their analyses.
1.5 Problem Identifications
The current working environment in organizations tend to seek in-depth knowledge of factors that are important in the appraisal of employees’ performance. Much of the work has been done in the education sector HR practices whereas there is a great need of investigations in other spheres of services and businesses in the country. It is important to investigate that if there are any other factors involved in variation of employees’ efficiency to work, devotion and loyalty towards organization or HR is the only associated aspect. Organizations striving for success need to adopt new emerging tools and techniques to bring the performance of employees up to the mark for which they need to establish integrated HR practices designed to achieve organizational goals efficiently, legally and soundly. Not a bundles of research information is available on the aspect of implementation of integrated HR practices in organizations.
In depth studies are needed to enhance the existing knowledge in the area of HR practices, activities as factors of impact on employees’ performance in the context of globalized working environment. Employees’ performance and capability of work is typically associated solely with HR practices. HR practices affect the performance of diverse workforce, there is an increased need of investigating that if there are any other factors overruling the HR practices.
1.6 Problem Statement:
Human resource department is an indispensable and integral part of every organization these days. The major responsibility of the HR practices to ensure a qualified workforce for the organization with highest possible productivity. However, the productivity level of employees is not always the same rather it is highly varied. HR practices are devised to make the level of productivity at a desired point where the operations of the business can ensure the attainment of profit and other goals of the company. Qualified and motivated employees are the biggest contributors to the success of the business and if the workforce is demotivated and or poorly motivated, the company will have to face a higher turnover rate and higher cost. HR practices are supposed to retain the employees and keep them motivated.
A number of studies have been conducted on the relationship of human resource practices and employees’ performance however, the level of impact of HR practices has scarcely been measured and there is greater need to assess that how human resource practices impact each employee differently. Employees’ performance and motivation level is not influenced by the HR practices only, a number of other factors are involved in the phenomenon (Becker & Gerhart, 1996). Traditionally, businesses believe that extrinsic rewards and money only can motivate the employees’ performance to rise. Though the monetary rewards are truly motivators but there are many other factors that cause the performance of employees fluctuate (Amabile, 1993). The present study intends to investigate the level of impact that HR Practices have on performance of the employees in the firm. The researcher attempts to dig out if the level of human resource practices are same on every employee or not and to what extent the activities are integrated into HR practices. Moreover, a look into the implementation level of integrated human resource system in the firm i.e. HR practices and associated activities and see if human resource practices are sole factor impacting on performance of employees.
1.7 Objectives of the study:
- A comprehensive assessment of implementation of integrated approach of HR practices and HR activities in a given organization.
- Assessment of varied employees’ performance against respective HR practices
- A relationship study of human resource practices and employees’ performance
1.8 Research Questions:
To what extent HR practices in a given organization impact employees’ performance such as efficiency, meeting deadlines and accuracy?
If an integrated approach towards HR practices and activities is implemented in the organization.
HR practices are solely responsible for varied employees’ performance levels or not?
Human resource is as significant to the businesses as the financial assets and technologies. Businesses are increasingly in demand of diversified workforce as human capital to cope up with global business environment. The retention of employees in an organization is related to the HR practices and activities such as healthier working environment, career growth, incentives and rewards etc.(Porter, W., and Steers, M., 1973).
In 2006, Malik and Khan indicated that good performance was associated with on-the-job training programs and facilitates the individual workers as well and so is the hypothesized in the present study, “relationship between employees’ performance and the On-job Training Programs”. Olaniyan and Ojo (2008) found a positive and signiﬁcant association between the employees’ performance and training programs design, the lack of well- designed training programs does not allow enhancement of employees’ learning. HR practices of Planning and Monitoring are also found to affect the performance of employees. (Lai, R., 2011)
The association between workers’ efficiency of doing tasks and activities at workplace and organization’s HR practices has been attempted to investigate in research studies. A positive and direct relationship has been found between performance of individuals and HR practices. A number of investigations have reported that HR practices such as facilitations provided to the employees, promotion, compensation and practices of incentive schemes are prime influencers for performance of workers individually. In 2008, Shazad, Bashir and Ramay hypothesized promotion practices, compensation practices, and performance evaluation practices as influencing variables for perceived performance. The researchers found a significant positive and direct association between promotion and compensation practices and employees’ perceived performance whereas the practice of performance evaluation were not found significantly correlated with perceived performance of employees.
Organizations take their employees as an asset that are of strategic importance to the firms. A fully motivated workforce can prove to be a competitive edge for the business, realizing this the companies are investing more attention and resources to the development and training of workforce with strategic perspective ( Danish & Usman, 2010).
In 2009, Lew posited that workforce has strategic importance and role in increasing the overall performance of the firm and defining its position in the market, quality of its products and reputation in the community (Chen et al., 2009). For the development of workforce in an organization the human resource practices are vital (Paul & Anantharaman, 2003).
“You can buy a person’s hand, but you can’t buy his heart” said Covey in 2013. According to Covey employees’ heart lays with his enthusiasm, his back can be bought but not his brain and brain is where he has hi creativity, resourcefulness and ingenuity (Covey, 2013).
The ultimate goal of the human resource management’s practices is to achieve the enthusiasm of employees at work and this has become super critical in today’s fast paced and diversified business environment. The role of human resource management id to buy the hearts of the employees to achieve their enthusiasm, engagement, motivation and creativity in the work related activities (Covey, 2013).
Employees’ need to have good work and beyond work life and there is a greater need of understanding this desire of employees. Human resource management working on traditional patterns is not enough to critically assess and align the needs of the employees with the needs of the organizations. HR practices are required by the businesses to enhance the commitment of employees (Du Plessis, 2006).
3.1 Research Design
Research design is plan of procedures that are involved in a study. It serves a number of purposes and objectives to the researcher. For instance, it suggests the researcher to go through the necessary readings and make observations that can help to address the problem to be studied or investigated. It also indicates the technical tools to be used for the best analysis of the data collected. The dependent and independent variables as in quantitative research design are defined in the research design document. A typical research plan or design incorporate the four major features for establishing the purpose of the study in scientific manner; comparison, control, manipulation and ability of generalizing the results of the study (Nachmias & Nachmias, 2000).
Each research problem and research question is unique in its purpose and nature requiring a research design that can best address those. Following consideration are taken into account while developing or choosing between the research designs; firstly, the researcher needs to see what type of investigation is to be carried out, a number of research types are there to choose such as exploratory, experimental, quasi-experimental, survey, content analysis, literature studies and so on. Secondly, what is the purpose of the research and whom it is going to serve the information? Thirdly, what sort and amount of resources the researcher has to execute the research? Fourthly, assess the validity required for the research because there are certain designs that offer external validity while the others serve more internal validity.
Last but not the least, ethical issues are to be taken into account that potentially can encounter during the execution of research. The present study intends to investigate the level of impact that HR Practices have on performance of the employees in the firm. The researcher attempts to dig out if the level of human resource practices are same on every employee or not and to what extent the activities are integrated into HR practices. Moreover, a look into the implementation level of integrated human resource system in the firm i.e. HR practices and associated activities and see if human resource practices are sole factor impacting on performance of employees.
The Present study is designed as a survey research study to meet the nature and requirements of the present study, as in an investigation of impact of HR practices on employees’ performance. The investigation was determined through the following research question;
3.2 Major Research Question
Whether HR practices impact the performance of employees, if yes, to what extent?
3.3.1 Main Hypothesis
HR practices in an organization have direct impact on employees’ performance.
3.4 Sub Hypothesis:
- In the sample organization HR activities incorporate an integrated system.
- For varied level of employees’ performance, HR practices are solely responsible.
3.5.1 Independent Variables
- Human Resource practices
- Level of integration of HR practices
3.5.2 Dependent Variables
Performance scale of employees
3.6 Key Concepts and Operational Definitions:
3.6.1 Human Resource Practices
The researcher expresses HR practices as Training and development practice, promotion practice, working environment and compensation practice.
Scale at performance evaluation in terms of efficiency, meeting deadlines, attendance regularity.
Employees of the selected organization.
Ideally the researcher was interested to collect data from larger population but due to time limitations, finally a total sample size of 50 employees of the selected organization will be selected.
3.9 Sampling Method
To meet the requirement of this study, stratified random method of sampling was adopted. To generate stratification, population was specified into following strata and subgroups.
3.10 Research Instrument:
Keeping in view the requirement of the study, a questionnaire comprising 30 questions will constructed in English language to get primary data. Research Instrument
The development of research instrument for the present investigation included the utilization of three scales of estimation for the inquiries.
An obvious estimation scale empowering researchers to apportion the example into particular orders and get-togethers. A case for this is to isolate the respondents as per sex as in male and female respondents. Such division of respondents makes it simple to assign the cells with coding 1 and 2 serving the helpful and straightforward marking as classifications. That is dispensing reactions to classification one and two expressly without covering and any inborn esteem.
The classes are commonly comprehensive as well. That implies as indicated by Theodre (2002) that there will be no extra or third class permitting the assignment of reactions ordinarily. Accordingly there is no third arrangement into which respondents would regularly fall (Theodore, 2002). Subsequently apparent levels of estimations characterize individuals or people into absolutely random and all things considered extensively isolate groupings. The utilization of nominal scale in the present investigation will enable researcher to separate the information in reactions from guys and females respondents. Survey contains just a single nominal scale question used as a piece of this audit for requesting the sex of the example subjects. Foreordained classifications of decision in this inquiry are portraying Gender (1) Female and (2) Male being referred to.
An ordinal scale is a level of estimation that empowers the marking of reactions to separate cells in view of positions. The utilization of ordinal scales in the present investigation will help evaluating the shoppers’ discernments, assessments, relative mentalities towards performance. Various four ordinal estimation questions have been incorporated into the survey.
Interim level of estimation scale, in which there is an equivalent separation/interim natural for the estimation of reactions, and there is a flat out zero does not implies the absene of the question (Tracy, 2006). Interim scale of estimation joins the ordinal level and empowers researcher to recognize the qualification between the representatives. Three inquiries utilizing the interim scale level of estimation are incorporated into the poll to look for information of assortment however much as could reasonably be expected.
Before gathering the undeniable information from the agent test a pilot-test was directed to ensure an unmistakable perception of the request. Pre-test people will center around authorities’ friends and family.
The techniques for examination in a research program are imperative all the while and the most critical component of a research design is choosing the agent test out of the populace under investigation. Testing is the procedure that makes the researchers to choose a suitable part of populace to direct the examination generalizable in general populace (Larson, 2008). At the point when the research issue is recognized and it is chosen that what kind of oinformation will be best noting the research addresses the way toward examining comes in front. Besides the examination design (exploratory, expressive or causal) will be use is developed, the scales and estimation had been resolved, and the survey arrangement had been close after pre-test.
Basically, inspecting is finished by one of the two examining systems that are described into likelihood test and non-likelihood method. Accommodation inspecting, portion examining, judgment testing, and snowball testing are fused in non-likelihood system. Non-likelihood method of testing is a framework that will be simple and agreeable and intensely depends on investigative judgment. It doesn’t use risk decision technique and is more suited for investigate like on existing customer of a specific phenomenal thing (Isidro, 2004). While likelihood examining, fuses basic arbitrary testing, stratified inspecting, orderly examining, group examining and is a procedure that gives each person from the populace a settled shot of being been illustrative. This methodology required summary of test edge of people to have the ability to absolutely available before every person from the masses had an identical shot of being picked. The present examination has picked the likelihood inspecting method.
3.11 Data Collection
The questionnaires will be launched by personal visit to the selected organization. Secondary data also called auxiliary data was also used to develop review of literature and deriving the research questions based on that review. secondary information generally speaking are credible and starting at now gathered. No passageway is required to subject respondents or individuals from test. Regularly there are four fundamental central focuses in using optional information. In the first place, quickly it can be gained, rather than social affair fundamental data that may require a while from beginning till wrapping up. It is sensibly modest, furthermore, when diverged from get-together essential data. At third place, it is advantageously open. What’s more, fourthly, it enhances existing essential information. Since authority researchers use discretionary information does not infer that they won’t assemble essential information. All things considered, for each situation moderately, the investigator’s task of essential information amassing is upheld by first assembling optional information. An optional information request can adapt the investigation with the business, including its arrangements and advantage designs, genuine contenders, and the basic issues going up against the business. Also, optional information chase can perceive thoughts, information, and expressing that may be useful in coordinating the fundamental research.
3.12 Use of Computer Applications
The computer applications such as MS Word, Excel for the descriptions and analysis will be used.
In depth studies are needed to enhance the existing knowledge in the area of HR practices, activities as factors of impact on employees’ performance in the context of globalized working environment. Employees’ performance and capability of work is typically associated solely with HR practices. HR practices affect the performance of diverse workforce, there is an increased need of investigating that if there are any other factors overruling the HR practices. The association between workers’ efficiency of doing tasks and activities at workplace and organization’s HR practices has been attempted to investigate in research studies. A positive and direct relationship has been found between performance of individuals and HR practices. A number of investigations have reported that HR practices such as facilitations provided to the employees, promotion, compensation and practices of incentive schemes are prime influencers for performance of workers individually.
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Paré, G. and Tremblay, M., 2007. The influence of high-involvement human resources practices, procedural justice, organizational commitment, and citizenship behaviors on information technology professionals’ turnover intentions. Group & Organization Management, 32(3), pp.326-357.
Porter, L.W. and Steers, R.M., 1973. Organizational, work, and personal factors in employee turnover and absenteeism. Psychological bulletin, 80(2), p.151.
Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal, 39(4), 779-801.
Amabile, T. M. (1993). Motivational synergy: Toward new conceptualizations of intrinsic and extrinsic motivation in the workplace. Human resource management review, 3(3), 185-201.