How the Practices of HRM Influence the Employees Performance in an Organization

How the Practices of Human Resource Management Influence the Employees Performance in an Organization

  • LITERATURE REVIEW
    • Introduction

This chapter discusses the literature on the practices of the human resource management, both empirical and theoretical by reviewing the connection of the employees’ performance to the practices of HRM. Over the years, the manner in which individuals are developed and managed at work has turned to be known as one of the critical factors in facilitating the improvement of organization performances (Paillé et..al, 2014,p. 94). Such ideology is highlighted through idioms like ‘people are the most valuable assets.’ In the review of the literature review, it is evident that organizations that are successful will share an essential philosophy of investing and valuing of their employees.

1.2 Theoretical Framework

A relevant research body has presented specific practices of the HRM which are expected to promote unique features in human resources that can assist an organization to gain a competitive advantage and promote its performance. Studies have suggested that all the practices that account for vast performance are regarded as ‘best HRM practices,’ high-performance work practices, high investment works and high product quality and productivity techniques.

1.2.1 Resource-Based Theory (By Porters)

According to Porter, this theory has a significant impact on the management of the human resource since it has explained on a new perspective the success of a firm. Based on resources, the success of an enterprise is attributed to shared resources, the capabilities of the business and how it makes itself incomparable from its competitors. The capabilities and knowledge include the human resource, skills, talent, know-how and the significant feature of experience (Armstrong & Taylor, 2014, p. 102). Such resources and capabilities can act as the link of competitive advantage. From this point, it is worth to understand that the practices of the HRM drive towards strengthening the relevant capabilities and knowledge.

The resource-based view offers a new paradigm for the human resource management of a firm. The enterprise will develop and execute new strategies in areas of career development, compensation, training, recruitment and selection among others. On training and career development, a firm will train its employees with the aim of maximizing productivity (Paillé et..al, 2014,p. 96). It is because of this that a business will seek on training employees in skills and abilities that are relevant to upgrading and making faster tasks. The theory of resource-based has enabled to present the significance of the human resource in a firm as it ensures the creation of competitive advantage.

1.2.2 Needs Hierarchy Theory

The most substantial needs determine the condition of a person in a particular situation. According to psychologists, needs have one specific priority because when there is the satisfaction of the most basic needs, an individual will strive to meet the higher efforts to satisfy the higher requirements (Epstein and Buhovac, 2014, p. 70). According to Maslow, there is a hierarchy in which the human needs are arranged and this is demonstrated in the model below.

Figure 1: Maslow’s need hierarchy

The physiological requirements will have a high strength to the point whereby they are reasonably satisfied. Up to the point whereby the needs of an individual are satisfied to the expected degree of efficient operation, many of an individual’s activities will mainly remain at this level and other phases will offer the little motivation. The needs for safety refers to the being free of physical harm or self-preservation. In the workplace, safety needs have a significance in the situation of the employees’ relationship being dependent on that of the employers. As stated by one scholar, the needs of safety can serve as motivators in cases like the arbitrary actions of management, behavior that breeds uncertainty by the unknown policy administration and continued unemployment (Armstrong & Taylor, 2014, p. 122). The social needs will be significant after the first two needs are satisfied. At this moment, an individual will make efforts to create meaningful relations with other people. When the opportunity for associating with other people is minimized, people will employ vigorous actions to the obstacles of social intercourses.

1.2.2.1 Application of Needs Hierarchy Theory on HRM Practices

The benefits of an organization can have a significant role in the satisfaction and performance of employees. Some companies will give bonuses and extra benefits to those employees that make an effort to improve their duties and this is actuated by an efficient system of reward (Epstein and Buhovac, 2014, p. 59). This will comprise tuition performances and allocations to engage in specialized conferences. Such kinds of ancillary benefits have the potential to stimulate the employees to venture on new opportunities to improve their work and in turn escalates the performance of their positions. It also ensures their career path is in a proper direction that will enhance growth and promotion.

The strategies employed by the organization for evaluation and performance reviews can impact on the performance of employees. When companies fail to review the performance of employees or award the jobs that are well done, in the future it will disgruntle employees (Paillé et..al, 2014,p. 99). Nevertheless, firms that stringently inspect the work of employees but fail to give them the opportunity to provide feedback can also result in non-motivated employees. There have to be performance reviews such as regular, periodic and honest feedback to ensure the employees are motivated and are performing well (Armstrong & Taylor, 2014, p. 126). By facilitating open communication in all directions will ensure more satisfaction of the employees with their performance reviews and the compensation levels awarded based on their work will make them happier.

1.3 Conceptual Framework

This refers to the organized form of thinking concerning the carrying out of a project and the manner in which people will understand the activities. For this study, the conceptual framework will include independent variables which include recruitment and selection, human resource planning, training and development while the dependent variable is the performance of employees.

1.3.1 Recruitment and Selection

The organization’s recruitment strategies have to be connected to a specific position that needs to be filled. Within the modern global environment, these approaches comprise of advertisements in print and electronic media, professional association, agencies and services, colleges and schools forum. According to studies, most organizations will use the behavior-based interview when they conduct recruitment and this method can be used to better predict the successive performance of employees as compared to situational interviews (Armstrong & Taylor, 2014, p. 130). Under the typical situation, the increase of applicant for a job will boost the opportunity for the employer in choosing the best and qualified individuals for the job.

Recruitment is critical to the process of management and if it fails, it increases the challenges for any enterprise including the adverse effect on profits and inappropriate skills and staffing. The selection can be theorized in aspects of selecting the ‘fit’ applicants or rejecting the candidates or even the use of both. The process of selection assumes that there are more candidates than the available job vacancies (Epstein and Buhovac, 2014, p. 87). The concept of the selection process is to obtain all the possible information about the candidate to know if they are suitable for employment. Through the theories of HRM it offers an understanding of the best methods to recruitment but organizations have to involve their management skills to use generic approaches in the context of specific organizations.

1.3.2 Training and Development

Training is an integral part of the human resource development and learning theories have discussed on the significance of strategic leadership to communicate the vision and mission of the organization to ensure the employees are conversant with the objectives for optimum performance. Employees training portrays a strong commitment that the employer has to their staff. It also shows the value that the employer has to their employees (Paillé et..al, 2014,p. 104). According to research on the association of workplace training and the entire work performance, it states that the elements of job training and time used in training will determine the performance of the employees in their job. The quality of training has a big effect on performance as the employees’ work output depends on the level of experience that the employees have acquired (Armstrong & Taylor, 2014, p. 132). The training will influence the performance as it determines whether an employee will keep their job or they will lose it if not carried out as expected. Therefore, training and development have to be considered as an integral part of maintaining the human resource base of a company and has to be taken as the core organizational strategy.

1.3.3 Human Resource Planning

According to studies, a demanding plan of the human resource will connect people management to the goals, vision, mission and objectives of the organization. In essence, planning will link the people of the organization to the budgetary resources and strategic plan. The primary goal of the planning of organization is to locate the right individuals with the right skills, competencies and experience of the right job. Such a strategy has to be carried out at the right time and with the appropriate expenses to avoid employing the wrong individuals for unsuitable jobs that will adversely impact the performance of the firm (Epstein and Buhovac, 2014, p. 78).

There has to be a good connection between strategic planning and business planning to make the employees perform up to the future standards in the plan of the organization. Employees who can complete the designed jobs will assist the body to attain its primary goals and focus on core duties that can improve the performance of employees. The future trend of the planning of the human resource will entail the use of virtual and contingent employees that will keep increasing the types of some employees while reducing others and this will influence on the performance of other employees. The human resource practitioners have big tasks of maintaining the pace with the changes occurring in the organization and ensuring that the right stakeholders are available to the firm at the recommended time.

1.4 Conclusion

The principal emphasis of the organization is its practicability to support itself in the competitive market and its efficiency. For efficient functioning of the organization, it is tied to the manner in which the employees carry out their duties at a level that is satisfactory of proficiency. The provision of opportunities for the continued development and training of the staff has to be for developing them for their jobs and others that they may consider in future.

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