The Effect Of Human Resource Management (HRM) Practices On Organizational Performance

The Effect Of Human Resource Management (HRM) Practices On Organizational Performance

Abstract

A human resource practice is considered the most critical for organizational performance. However, Human Resource Management is described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. This study therefore investigated the the effects of human resource management (HRM) practices on organizational performance.

The study adopted descriptive survey research design. The population was 165 employees of the eco bank plc. Total enumeration method was adopted. The response rate was 93.9% out of 165 copies of the questionnaire administered. The data was analyzed using descriptive (Statistical Package for Social Sciences (SPSS) and Microsoft excel presented the final data in charts and diagrams. The SPSS was used to obtain frequencies and percentages of close ended responses

The study indicate that the analysis between human resource practice and organizational performance is significant. Recruitment and selection practices affect employee effectiveness in Eco bank (Nigeria) Plc. Performance appraisal has positive and significant effect on employee performance in Eco bank (Nigeria) Plc, compensation plan by management has significant influence on employee motivation in Eco bank (Nigeria) Plc with P-value less than 0.05, R-square of 20.7%, Training and development programs affect organizational commitment in Eco bank (Nigeria) Plc. P-value < 0.05, R-square of 14.0%.

The study concludes that human resource management practice has significant effects on organizational performance. It has been found that bank’s performance can be attributed to HRM practices including recruitment and selection, training and development, performance appraisal, and compensation plan. It was recommended that the bank should have an effective recruitment policy to promote scientific selection of prospective employees, training and management development program should be implemented to enhance the capabilities of employees of eco bank Nigeria Plc, Performance appraisal should be guided by the performance management policy, compensation is critical in enhancing performance; hence the eco bank should implement this to motivate those employees who achieve the set targets.

Keywords: Human resource practice, Organizational performance.

Chapter One

Introduction

1.1 Background of the Study

Human Resource Management can be described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. It has a strong conceptual basis drawn from the behavioral sciences and from strategic management, human capital and industrial relations theories. This foundation has been built with the help of a multitude of research projects (Armstrong, 2010).

Human resource management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Many companies refer to HRM as involving people practices. There are several important HRM practices that should support the organization’s business strategy: analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), evaluating their performance (performance management), rewarding employees (compensation), and creating a positive work environment (employee relations). An organization performs best when all of these practices are managed well. At companies with effective HRM, employees and customers tend to be more satisfied, and the companies tend to be more innovative, have greater productivity, and develop a more favorable reputation in the community (Raymond, 2011).

Organizational performance (OP) is an indicator which measures how well an enterprise achieves their objectives (Hamon, 2003). Organizational performance is concerned with product or service quality, product or service innovation, employee attraction, employee retention, customer satisfaction, management/employee relation and employee relation (Delaney and Huselid, 1996). Human resources have been identified to be both valuable and a source of competitive advantage (Legge, 1995). According to Bontis (1999), the human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization. Delery (1998) observed that the methods used by an organization to manage its human resources can have a substantial impact on many organizationally relevant outcomes.

When organizations face challenges such as an economy recession, it depend thoroughly trained professionals who react quickly to changes in the environment and create strategies for success. Human resource management (HRM) is responsible for carefully selecting and training people with the necessary skills to pursue the strategy effectively. Some external factors can be predicted; others, such as the collapse of large banks and insurance companies, can seemingly come out of nowhere (Robbins, 2010).

According to Noe (2011) human resource management is critical to the success of organizations because human capital has certain qualities that make it valuable. In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage (is better than competitors at something and can hold that advantage over a sustained period of time). Therefore, we can conclude that organizations need the kind of resources that will give them such an advantage.

Employees are one of the most important assets of an organization as they contribute to its growth and success (Danish and Usman, 2010). Malik, Nawab, Naeem, and Danish (2010) concluded that in the era characterized by rapid and continuous change, knowledge capital must be retained in order for organizations to be productive and responsive to the needs of their stakeholders. Likewise, banks as fianacial institutions need to attract, retain and develop their employees. Banks need employees who are well trained and motivated so that they are committed to their work of conducting research and training for the development of the nations (Lew, 2009). Research literature has shown that effective application of some human resources management (HRM) practices enables organization employees to be committed to their work for good performance of the bank ( Shahzad, Bashir, & Ramay 2008).

Implementation of appropriate HRM practices for banks employees will promote university performance as Lew (2009) noted that employees play a strategic role in improving ratings in key areas like proper customer financial management. Realizing the importance of promoting banks’ performance, many banks are embarking into strategizing its HRM (Sirat, 2005). For this to materialize, it is significant that the country’s financial institution improve their world class bank ranking by attracting and retaining excellent and experience staff.

One of the sectors which will play an important role is banking sector especially the commercial bank. The nation needs more human resources capable of performing different activities both in public and private sectors. Subsequently, the commercial bank are expected to properly management customers’ money. Malik et al. (2010) training and development of well-qualified human resources will depend on the performance of the bank subjected to effective implementation of different bundles of HRM practices such as selection, compensation, information sharing, participative decision making, job definition, training, career planning and performance management among others.

Little empirical research has been conducted to examine the effects of HRM practices on commercial bank performance in Nigeria. In order to effectively investigate whether human resources are capable of contributing to competitive advantage, it is pragmatic to examine HRM practices in as many settings as possible. Therefore, this study is to examine the impact of HRM practices on organizational performance in Nigeria with a particular focus on a eco bank.

1.2 Statement of the Problem

HRM is extremely important for banks especially because banking is a service industry (Mathivanan, 2013). Banking industry viewed from personnel angle has its peculiarities. It is a labor intensive industry and efficiency of employees has got a bearing on the quality of services offered. This being the case, it should have been natural that professionalization of personnel management should have gained better priority but unfortunately personnel management happened to be the most neglected aspect of banks management (Mathivanan, 2013). However, there are also significant risks which should be carefully managed in the human resource area. These risks include the consequences of recruiting the wrong people; inadequately training and developing them; losing them prematurely; instilling misguided motivation; and failing to consider future human resource capability needs. Therefore, the bank, like most organizations with key dependency on the skills, experience, and judgment of its staff, should maintain structures and policies to identify and manage these risks (Suarez 2009), as this could have significant effect on the organizational performance.

Recruitment and selection practices in the Nigerian banking industry is characterized by internal job posting, where employees are recruited and selected based on who they know in the bank. There is a tendency to prefer recruits who come through known contacts within the system. This doesn’t give room for the best person to be selected for the job. Internal job posting is prevalent in Nigeria. A large number of organizations fill vacancies at middle and senior levels from existing employee pool, significant importance is not attached to the process of succession planning. People not deserving them are given the opportunity, this may be because of family ties, political influence or just merely being the favorite of the boss. The effectiveness of human resource practices, particularly employee recruitment and selection procedures, performance appraisals, compensation management, and employee training and development often have a direct bearing on organizational performance. Contributing to this assertion, Boohene et al (2011) present that, the result of effectively managing human resources is an enhanced ability to attract and retain qualified employees who are motivated to perform. According to them, the benefits of having the right employees motivated to perform include greater efficiency, high service quality, employee commitment, and more rapid acceptance and implementation of corporate strategy. Recruiting unqualified people for the job will definitely have an effect on their effectiveness on the job.

Performance appraisal has attracted a great deal of attention, due to the under-performance of several banks which led to the winding down of some banks. Annual performance appraisals enable management to monitor the standards, to agree on the expectations and objectives, and to delegate the responsibilities and tasks. The effect of the economic recession on the Nigerian economy has pushed banks to find ways to increase its level of employee productivity and maintain competitive advantage in the industry. The performance of a bank is largely dependent on the performance of its employees. And the only way to continually have the best hands on the job is through the implementation of effective performance appraisal systems

Similarly, Remuneration/ Reward has been found to play motivational role and include but not limited to pay strategies such as performance related pay, production based pay, skill based pay, knowledge based pay and base pay Brown (1989). Compensation is a very important aspect of HRM in Nigeria where employees are commonly low paid with little or no fringe benefits, this in turn affects the employee’s motivation to work. Employees are usually not properly motivated to put in their best performance due to the low level of compensation for their effort, poor compensation demotivates employees and they seldom not go beyond the required organizational target or go the extra mile on their job.

It is evident in organizations today that managers focus more on output rather than developing and training their employees with skills so as to be more productive and satisfied (Gazioglu & Tansel, 2006; Barrows & Wesson, 2000). With this development in the sector, staff that lacks proper training in the evolving competitive landscape are redundant with their old knowledge and skill being obsolete. (Osibanjo, Kehinde & Abiodun, 2012). Obsolete skills and knowledge needs to be brushed up through proper training and development. The most important concern of the employers is to make the employees to contribute their very best toward the organizational objectives attainment. Training though accepted as a vital part of any administrative functions is still carried out in an ad-hoc way which wastes a considerable proportion of money without identifying the need for such exercise. Many companies do not regard Human resources development as a professional activity and in many cases training officers are employees sent to colleges without any serious thought being given to the real training needs of a company. (Akujuru & Enyioko, 2015). Dessler (2003) sums up how training and development influences organization performance by arguing that developing human capital through continuing training may increase the productive output from each employee either through improvement in skill level or through improvement in morale and job satisfaction. An employee properly trained with the right skills for the job will be more committed to the job being trained for, this in the long run improves the organizational performance.

The effect of Human Resource Management (HRM) practices on organizational performance has been a widely researched area. Result of studies, from developed countries to developing countries; have been time and again showing that HR practices have significant effect on organizational performance. But unluckily, very insufficient numbers of studies have been conducted to check the effectiveness of existing and currently implemented HRM practices in Nigerian banks. The main aim of this study is to fill this existing gap by exploring the effect of HRM practices on organizational performance of Eco bank (Nigeria) Plc. as well as examining whether there is a positive or negative effect of HRM practices on organizational performance.

1.3 Objectives of the Study

The main objective of this study is to examine the effect of human resource management (HRM) practices on organizational performance of Eco bank (Nigeria) plc.

The specific objectives are to:

determine how Recruitment and selection practices affects employee effectiveness in Eco bank (Nigeria) Plc.
assess the effect of performance appraisal on employee performance in Eco bank (Nigeria) plc.
evaluate the influence of compensation plan on Employee Motivation in Eco bank Nigeria Plc.
investigate how training and development programs affects organizational commitment in Eco bank (Nigeria) plc.

1.4 Research Questions

The research question focus on soliciting information on the HRM practices adopted by Eco bank of Nigeria Plc, designed for effective and efficient management of the company’s human and material resources towards achieving organization performance.

The questions include:

1. How does recruitment and selection practices affects employee effectiveness in Eco bank (Nigeria) Plc?
2. What are the effects of performance appraisal on employee performance in Eco bank (Nigeria) plc?
3. How does compensation plan influence employee motivation in Eco bank Nigeria Plc?
4. How do training and development programs affect organizational commitment in Eco bank (Nigeria) plc?

1.5 Research Hypotheses

The following hypotheses were set out to guide the study at 0.05 level of significant.

H0: Recruitment and Selection practices does not affect employee effectiveness in Eco bank (Nigeria) Plc.

H0: Performance appraisal has no significant effect on employee performance in Eco bank (Nigeria) Plc.

H0: Compensation plan by management has no significant influence on employee motivation in in Eco bank (Nigeria) Plc.

H0: Training and development programs does not affect organizational commitment in Eco bank (Nigeria) Plc.

1.6 Operationalization of the Variables

The independent variable (X) = Human Resource Management practices (HRMp)

The dependent variable (Y) = Organizational performance (OP)

The proxies used to measure the independent variable (HRMp) were Recruitment and Selection (RS), Performance Appraisal (PA), Compensation Plan (CP) and Training and Development (TD). While the dependent variable was measured with Employee Effectiveness (EE), Employee Performance (EP), Employee Motivation (EM) and Organizational Commitment (OC).

Y = f(X) where;

Y = (y1, y2, y3, y4)

X = (x1, x2, x3, x4)

Y = Organizational performance (OP)

X = Human Resource Management practices (HRMp)

OP = f (HRMp) ……. µ

Measuring the proxies of Human Resource Management practices (HRMp) and Organizational performance (OP)

OP = f (EE, EP, EM, OC) …… i

HRMp = f (RS, PA, CP, TD) ….. ii

Where; y1 is (EE) Employee Effectiveness

y2 is (EP) Employee Performance

y3 is (EM) Employee Motivation

y4 is (OC) Organizational Commitment

Where; x1 is (RS) Recruitment and Selection

x2 is (PA) Performance Appraisal

x3 is (CP) Compensation Plan

x4 is (TD) Training and Development

Functional relationship

EE = f (RS) ……. i

EP = f (PA) ……. ii

EM = f (CP) ……… iii

OC = f (TD) ……… iv

1.7 Scope of the Study

This study focuses on the effect of Human Resource Management (HRM) practices on organizational performance. Examining the effectiveness of these practices on the bank employees. For the purpose of this study we will adopt the descriptive survey research design method and primary data will be collected so as to carry out our analysis. The study will be carried out at Eco bank (Nigeria) Plc. The bank branches where the survey will be carried out are located at Ikorodu, Ikeja, Ikoyi, Ibadan, and Victoria Island, Lagos.

1.8 Limitation of the study

The first limitation of this study is the limited extent to which the findings of the study can be generalized to wider geographical locations and/or sectors of the economy because the study covered Eco bank Plc only. As such, the findings cannot be generalized to companies in other sectors. The study is further limited to four factors which were the independent variables in this study; recruitment and selection, training and development, performance appraisal and compensation and the dependent variable was organization performance.

Secondly, the limited time within which the research work is required to be completed also serve as limitation of the study. It was due to this factor that the study could not cover many firms.

Finally, inadequate finance was also a major limitation of this study and as a result the researcher could not be able to cover wider geographical area and/or industries but limited to Eco bank Nigeria Plc.

1.9 Significance of the Study

This study will contributes to the literature by critically examining the effectiveness of existing Human Resource Management (HRM) practices that are currently in place at Eco bank (Nigeria) Plc. such as recruitment and selection, performance appraisal, compensation plan and training and development, and what effects they have on the employee, as this will ultimately determine the bank’s performance.

The management of financial institutions especially the banking sector will definitely find the recommendations and findings of this work relevant and useful in charting a new course for improved organizational performance, through the utilization of HR tools for human resources management and development.

The study will be relevant to the government in terms of formulating and implementation of policies concerning the banking sectors of Nigeria.

The study will be useful to those who will carry out studies in related areas in future. It will serve as a reference material to them. Even, the findings can provide the bases for further studies.

1.10 Operational Definitions of Terms

Performance appraisal (PA):

Also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal is the method by which the job performance of an employee is documented and evaluated.

Employee compensation plan:

Collectively refers to all the components in addition to the manner in which the compensation is paid and for what purpose employees receive case bonuses, salary increases and incentives.

Recruitment:

This is the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization.

Selection:

This consists of the processes involved in choosing from applicants a suitable candidate to fill a position.

Training and development:

This is a function concerned with organizational activity aimed at bettering the job performance of individuals and groups in organizational settings.

Job Security:

This is an assurance that an individual will keep his or her job without the risk of becoming unemployed. He/she will have continuity in employment and it may be from the terms of a contract of employment, collective bargaining agreement, or labor legislation that prevents arbitrary termination.

Effectiveness:

The degree to which objectives are achieved and the extent to which targeted problems are solved. In contrast to efficiency, effectiveness is determined without reference to costs.

Efficiency:

This is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste.

Performance:

The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed.

Human Resource:

This is a single person or employee within your organization. Human Resources is also the organizational function that deals with the people and issues related to people such as compensation, hiring, performance management, and training.

Personnel management:

This is an administrative function of an organization that exists to provide the personnel needed for organizational activities and to manage the general employee-employer relationship.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary of findings of the Study

The findings from this study can be summarize as below

1. Recruitment and selection practices affect employee effectiveness in Eco bank (Nigeria) Plc.
2. Performance appraisal has positive and significant effect on employee performance in Eco bank (Nigeria) Plc.
3. Compensation plan by management has significant influence on employee motivation in Eco bank (Nigeria) Plc with P-value less than 0.05, R-square of 20.7%.
4. Training and development programs affect organizational commitment in Eco bank (Nigeria) Plc. P-value < 0.05, R-square of 14.0%.

5.2 Conclusion

The study revealed that a HRM practice has significant effects on organizational performance. It has been found that bank’s performance can be attributed to HRM practices including recruitment and selection, training and development, performance appraisal, and compensation plan. Based on the results, the researcher concluded that the effectiveness of implementing HR practices in the bank does indeed have a major effects towards the bank’s performance. Thus, this form of analysis could help organizations to realize and be more aware of the importance of human resource practices and the need to integrate and align HR into the bank’s strategic plan.

5.3 Contribution to Knowledge

The primary aim of the researcher in this study is to relook at the effect of human resources management effective on a new perspective.

This study will contributes to the literature by critically examining the effectiveness of existing human resource management (HRM) practices that are currently in place at Eco bank (Nigeria) Plc. such as recruitment and selection, performance appraisal, compensation plan and training and development, and what effects they have on the employee, as this will ultimately determine the bank’s performance.

The management of financial institutions especially the banking sector will definitely find the recommendations and findings of this work relevant and useful in charting a new course for improved organizational performance, through the utilization of HR tools for human resources management and development.

5.4 Recommendation

Base on the findings of this study, the following recommendation were made:

1. The bank need to have an effective recruitment policy to promote scientific selection of prospective employees. The departments should participate in selection process as they have different preferences in the candidates. Candidates need to be selected based on requisite skills knowledge, attitude and qualification using appropriate selection techniques.
2. A training and management development program should be implemented to enhance the capabilities of employees of eco bank Nigeria Plc. Investing in the improvement of the knowledge and skills of employees would enable the bank to develop more productive and effective employees.
3. Performance appraisal should be guided by the performance management policy. Employee’s performance should be assessed based on quantifiable standards and feedback be given to employees on their performance. The appraisal system should be explicitly described specific purpose of the appraisal.
4. Compensation is critical in enhancing performance; hence the eco bank should implement this to motivate those employees who achieve the set targets.

5.5 Implementation of Findings

The stages of the implementation of the researcher, including qualitative methodology, was accurately reported. By reporting on the implementation, a clear picture was given of the research task and of the process through which the researcher sought to reach the goal of the research. Based on his module of the research implementation, the supervisor, students and respondents was able to judge the validity of the research.

The study presents the purpose of the research, theories of the research, approach to the research, the data collection methods etc. It defines the subject of the research and assesses the reliability of the findings. Any potential ethical statements were expressed along with their justifications.

Outcomes of the Research

The most important part of the study is the presentation of outcomes. Results and findings are not in the same way, but both of them strive to present solutions to the research task. The outcomes can be analysed in many ways; for example, according to the research problem. The format of the research and the type of study undertaken work together to determine how the outcomes are presented. When presenting outcomes, the goal of the research must always be considered.

The outcomes must be presented so that it is easily apparent to the supervisor, students and respondents which of the research outcomes are of the most importance. The outcomes should be divided logically into groups, with particular attention given to those having the most relevance to the problems. Transparency is extremely important in the presentation of research outcomes. All questions raised must be duly addressed, regardless of whether or not an answer was found. The presentation of outcomes should be truthful, logical, and clear. Conclusions based on findings can be presented in connection with the results.

5.5.1 Relevance of the study

Firstly, the study will be relevant to the government in terms of formulating and implementation of policies concerning the banking sectors of Nigeria.

5.6 Limitation of Study

The first limitation in the study is limiting the research work to human resource management (HRM) practices alone, research should also cover effect of other department on employees.
Secondly, the study was grounded on two theories within, this did not really make the research work quote out many scholars, more theories can be used from more scholars, and this will enable confidence on the research topic.

Thirdly, the limitation of this study is the limited extent to which the findings of the study can be generalized to wider geographical locations and/or sectors of the economy because the study covered Eco bank Plc only. As such, the findings cannot be generalized to companies in other sectors.

Fourthly, the data collection was confined to only four branches in Ikorodu, Ikeja, Ikoyi, and Victoria Island, of Lagos since constraints were faced during data collection. The replication of the study at different branches in Eco bank Nigeria would enable better generalizability of the findings of the study. At the same time data collection during real survey experience could have elicited better responses improving findings.

Lastly, the sample for the present study comprised of 165 employees of eco bank. This sample is only a very small proportion of the entire population of employees in Eco bank Nigeria Plc. Therefore, research studies with much larger sample size would be required to ensure appropriate generalization of the findings of the study.

5.7 Suggestion for Further Studies

Future study should also consider moderating variables such as banks’ culture, organization climate, labor market, legal, motivation factor and regulatory environment.

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Frequently Asked Questions

Does strategic human resource management improve organizational performance?

The interest in strategic human resource management (HRM) has spawned a number of empirical research studies that investigated the impact of HRM practices on organizational performance.

What are the HRM practices and processes?

HRM practices and processes are part of the management of the human resource in the organization. There are several HRM practices which have potential to improve and sustain the organizational performance. The concept of human resource developed from the workers in the USA in 1960s and 1970s.

Does Human Resources Management affect employee commitment to work?

Research literature has shown that effective application of some human resources management (HRM) practices enables organization employees to be committed to their work for good performance of the bank ( Shahzad, Bashir, & Ramay 2008).

Do HRM practices affect organization’s output in literature review?

It is attention-grabbing to found the effect of HRM practices on organization’s output in research and provides its shortcoming and further developing countries. This study will act as a small directions. contribution in the field of HRM, by emphasizing the effect of HR management practices on organization’s Literature Review: performance.

What are the benefits of strategic human resource management?

The greatest benefit of strategic human resource management is also its purpose: to improve organizational performance by integrating and aligning with business strategy. “Strategic human resource management is certainly a competitive advantage. In manufacturing firms, quality processes depend on stable HR systems.

How has organizational performance changed through strategic management of human resources?

In short, organizational performance has changed through strategic management of human resources management. This makes possible the achievement of organizational performance objectives. It also enables the organization to be competitive. SHRM is a very important tool that ensures the continuity of the organization.

What is the meaning of strategic HRM?

Strategic HRM: can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that brings up innovation, flexibility and competitive advantage. Strategic HRM involves setting employment standards and policies.

How can a company develop a competitive advantage through strategic HRM?

A company can develop a competitive advantage through the skills and competencies of its people. So to be successful more value must be given to people. Strategic human resource management is the proactive management of people to the desired value to them.

Why are there so many laws relating to HRM practices?

Why are there so many laws relating to HRM practices? Which are the most important laws in your opinion? Protects employees; Age discrimination in employment act, old people deserve jobs too. Civil rights act; women and black people needs jobs too. Identify and describe the basic management functions:

How do human resource management practices affect organizational performance?

Employee satisfaction Human resource management practices directly affect employee’s emotions and satisfaction, thereby affecting the attitudes and behavior of employee, thus affecting the organizational performance (Ahuja, 2012).

Does job involvement affect employee satisfaction and organizational commitment?

In the proposed model, job involvement partially mediates the effect of job satisfaction on organizational commitment. Job satisfaction in Serbia is affected by work characteristics but, contrary to many studies conducted in developed economies, organizational policies and procedures do not seem significantly affect employee satisfaction. 1.

How can HR contribute to the development of positive work environments?

By encouraging employees and managers to create appreciative work atmospheres, HR can contribute to the development of positive environments. From our research we know that when appreciative work environments are created, there is a higher chance that engagement and commitment will grow.

What can HR do to increase engagement and commitment in 2015?

Effectory International believe that either by addressing one of the 8 above or by taking the lead in the two mentioned influencers, HR can have a big impact on engagement and commitment in 2015. In doing so, HR can show stakeholders both their contribution to business performance, as well as their added value as business partners.

What is the impact of HRM practices on organizational performance?

HRM practices influence immaterial satisfaction, which, in turn, positively impacts the performance of the organization. However, the impact of the different HRM practices is not the same. HRM practices leads to enhancement in the employees’ commitment which in turn has a positive influence on the organizational performance.

What is the review of literature on HRM practices?

A review of literature on HRM practices has been made with a view to understand the research work that has been done so far in the field of HRM for last few years.

Does efficient use of human resources matter for Organisational Performance?

Ulrich’s (1997) review summarised that the empirical studies were based on the assumption that efficient use of human resources through best HR practices would lead to successful organisational performance.

Does human resources management practice influence customer satisfaction?

Purpose: Human Resources Management (HRM) practice displays a key function in customer satisfaction in the cognitive of service quality in selected insurance companies in Northwestern Nigeria.