The Impact Of Human Resource Management On Organizational Performance
This study examines the impact of human resource management on organizational performance. Generally, this study was made on the management, staffs and the customers of Airtel Telecommunication, Asaba metropolis in Oshimili South local government area of Delta state, Nigeria. Primary and secondary data were sources of data collection for this study. Structured questionnaire were used to elicit data from the respondents. One hundred (100) respondents were selected for this study but seventy (70) were eventually used.
A survey research design was employed and a simple random sampling technique was adopted. Simple percentage method and regression statistical tool was employed as the major analytical tool. The findings revealed that recruitment and selection has a significant relationship on employee’s turnover. Also, the findings led to the conclusion that reward system has a positive effect on job satisfaction and performance appraisal can directly determine employee’s productivity. The study therefore recommended that training and development contribute to the profitability of the organisation.
Table Of Content
- Title page i
- Certification page ii
- Dedication iii
- Acknowledgement iv
- Abstract v
- Table of content
- 1.1 Background to the Study
- 1.2 Statement of the Problem
- 1.3 Purpose of the Study
- 1.4 Research Questions
- 1.5 Research Hypotheses
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 2.1 Conceptual Framework
- 2.2 Theoretical Review
- 2.3 Empirical Review
- 3.0 Introduction
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size and Sampling Techniques
- 3.4 Research Instrument for Data Collection
- 3.5 Method of Data Collection and Distribution
- 3.6 Data Analysis Technique
- 3.7 Decision Rules
Data Presentation And Analysis
- 4.0 Introduction
- 4.1 Analysis of Demographic Characteristics of Respondents
- 4.2 Analysis of Research Questions
- 4.3 Testing of Hypothesis
- 4.4 Discussion of Findings
Summary Of Finding, Conclusion And Recommendation
- 5.1 Summary of Finding
- 5.2 Conclusion
- 5.3 Recommendations
- 5.4 Limitations of the Study
1.1 Background To The Study
The management of people within the organization has become an increasingly recognized important focus for researchers and practitioner over the past 20 years. Organizations are becoming more aware of important role human resource play in the success of their organizations to achieve financial performance. As a result, organizations are becoming more employee-centric by focusing on enhancing employees’ engagement and organizational commitment
It is important for organization to adopt human resources management (HRM) system that optimizes workforce as it enables organization to achieve competitive advantage in today’s global market economy that provides wider access to technology, finance and other resources. Pfeffer (1994) stated that firms have increasingly recognized the potential for their people to be a source of competitive advantage. Creating competitive advantage through people requires careful attention to the practices that best leverage these assets. According to Nishii, (2008) scholars generally agree that appropriately designed, Human resources management practices can enhance organizational performance. Related theories suggesting and supporting assumption holds that the practices of Human Resources Management influences employees’ attitudes and behaviours.
Human Resource Management is an invisible asset in an organization. It creates value when embedded in the operational system that enhances organizational performance and ability to deal with turbulent environment. Effective HRM assists in developing human resources into high quality and efficient workforce thus enabling the organization to obtain a competitive advantage through their people. In contrast, inefficient workforce can increase labour cost and decrease organization productivity. However, in order to remain competitive, grow and diversify, an organization must ensure that its employees are qualified, placed in appropriate position, properly trained, managed effectively and committed to the firm’s success. The goal of HRM is to maximize employees contribution in order to achieve optimal productivity and effectiveness while simultaneously attaining individual objective (such as having a challenging job) and obtaining recognition) and societal objectives (such as legal compliance and demonstrating social responsibility).
Human resource dimensions or practices (training, recruitment, reward system performance appraisal etc) have considerable impact on the performance of organizations and these contribute to the affirmative link between human resource management and organizational performance (Osman, 2012).
Human resources are considered the most valuable assets of any organization but very few organizations are able to fully harness its potential. While human resources refer to individuals who make up the workforce of an organization, Human Resources Management is defined as a very critical and imperative function that operates within an organization. This function classified into recruitment, compensation, development related to the organization, safety, motivation of employee, benefit wellness, communication and training, performance management and all other activities that are associated with goal achievement of the organization (Ayesh, 2012).
Neo (2007) defines human resource management as composed of policies, practices and system that influence employees’ behavior, attitude and performance. Oladipo (2011) opines that having the right personnel at the right place and at the right time is utmost important to survival and success of any organization.
The Human Resource department is tasked with reviewing the organizations, HR practices and recommending policy changes, where necessary. As a part of review, academic qualifications of the staff were harmonized without further discrimination between Degree holders and Higher National Diploma, Certificate holder, training programs were organized for all categories of staff. Employee who lacked basic skills and qualifications could not be retained were laid off, whilst a rigorous recruitment process was instituted to attract skilled personnel for the various department.
1.2 Statement Of The Problem
Organizations are expected to motivate their workers in order to increase their performance so as to be profitable. Some organizations take workers for granted by not providing adequate training and compensations for hard work as human elements in the achievement of the organizational goals.
This has in some cases affected the productivities of workers and in turn the profitability of such organizations. The study therefore finds out how workers can be managed to enhance their productivity and at the same time increases the profitability of the organizations.
1.3 Purpose Of The Study
The broad purpose of this study is to examine the impact of HRM practices on employees’ performance in organizations. Other purposes include:
- To find out how HRM can affect the employees productivity and performance
- To find out the extent to which employees are being motivated in organizations
- Establish the extent to which performance would affect the implementation of various HRM practice
- To know the status of HRM practice a views in an organization.
1.4 Significance Of The Study
This study will help to achieve effective Human Resources Management and identify tools for developing the employees’ performance with a view to effect workable programs for the organization.
1.5 Research Questions
- What is the impact of HRM practices on employees’ performance in organizations?
- How can HRM affect the employees’ productivity and performance?
- How are employees being motivated in organization?
- What is the extent to which performance would affect the implementation of various HRM practice?
- What is the status of HRM practices in organization?
1.6 Research Hypothesis
Ho: There is no significant relationship between reward system and employees’ performance in the achievement of organizational goals
1.7 Scope Of The Study
Since no single research can validly cover all areas of the topic the researcher tends that thrust of this project will be limited within the scope of study of the impact of HRM on employees’ performance in Airtel Telecommunication.
1.8 Limitation To The Study
Insufficient fund which led to the researcher’s not being able to cover a wider area needed for the research. Insufficient time to carry the study to a logical end due to one year time frame approved for the study.
Summary Of Findings, Conclusion And Recommendation
5.1 Summary Of Findings
This summary finding in report of the research work title is as follows:
- Human resources management assist to increase employees’ productivity through job analysis
- It assist employees to implement business strategies successfully through professional guidance
- Trainings are organized to improve cooperation and cordial relations among employees
- It provides opportunity for independent thinking and decision making
- To determined redeployment due to the acquisition of higher qualification
- To determine redundancy level of employees
- It provides conducive environment for the employees
- Human resources management promotes employees responsiveness and innovation
- Recommendation for promotion, upgrading and awards for deserving employees
- Human resources management helps in right recruitment of employees in an organization
Employees are one of the critical strategic assets for any organization. Likewise, should strive to attract the talent, well trained and enthusiastic employees and improve their performance. Successful and good effective implementation of HRM empowers employees and improves their performance positively. Employees have an important and strategic role in enhancing positioning in significant fields such as quality of research, academic reputation, and improving the quality of the organizational programs. Therefore, best practices of HRM stimulate employee’s performance which in turn improves performance. So, organization must realize the importance of stimulating employee’s performance; many organizations are giving more attention from the top management of HRM. Hence, it is vital that the organization should develop their HRM to enhance all employees in their organization. To increase organization employee’s performance, the management should implement the HRM includes (selection, training and development, compensation, teamwork, cooperation and rewards, performance appraisal) in order to increase their efficiency on the performance.
- Organization 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 appropiate selection techniques.
- Appropriate training program for both academicians and support staff should be organized to continuously improve the skills of employees.
- Investing in the improvement of the knowledge and skills of employees would enable the University to develop more productive and effective employees.
- 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. Organizations that clearly state the purpose for the appraisal reduce the confusion and ambiguity of the process. The goal should be that everyone knows why to conduct appraisals.
- Meaningful and accurate evaluation and feedback requires clear goals be established beforehand. Therefore a large part of the process should be devoted to determining what actions need to be taken in the future. It is harder to correct the results of poor planning than it is to plan correctly at the beginning.
5.4 Limitation Of The Study
There is timeframe within which the project at which it must be submitted. There is also financial constraint to move round the State, so only Oshimili, Delta state was covered in the State and few small scale enterprises owners were selected for the research.
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Frequently Asked Questions
Do human resources management practices influence organizational performance?
Organizational performance (Dependent variable). The study revealed that human resourc e management practices have a significant impact on organizational performance ( Amin, Ismail, 2014).
What is the importance of Human Resource Management in an organization?
The human resource practices create satisfied employees who are motivated, skilled, and committed, who approach their duties positively and this is, in turn, reflected on improved organizational performance.
Is HRM capable of generating competitive advantage of the organization?
Academic research shows that HR practices are capable to generate competitive advantage of the organization. But much of efforts are not yet been made from the end of organization. Organisation still feels doubtful to invest on their human resources. Also not much of evidence is available about the successful implementation of approaches of HRM.
Do human resource management practices affect employees’ intention to leave?
The results of the research show that perceived human resource management practices have a significant effect on the intention to leave and on the work engagement. In addition, it has been found that work engagement assumes a full mediator role between human resource practices and intent to leave.