final hrm

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Chapter 1: INTRODUCTION Every organization performs its task with the help of resources as men, machine, materials and money. Except manpower other resources are non-living but manpower is a live and generating resource. Manpower utilizes other resources and gives output. If manpower is not available then other resources are useless and cannot produce anything. Out of all the factors of production manpower has the highest priority and is the most significant factor of production and plays a pivotal role in areas of productivity and quality. In case, lack of attention to the other factors those are non-living may result in reduction of profitability to some extent. But ignoring the human resource can prove to be disastrous. In a country where human resource is abundant, it is a pity that they remain under-utilized. In wording of Oliver Sheldon “No industry can be rendered efficient so long as the basic fact remains unrecognized that is human.” The people at work comprise a large number of individuals of different sex, age, socio-religious group and different educational or literacy standards. These individuals in the work place exhibit not only similar behaviour patterns and characteristics to a certain degree but also they show much dissimilarity. Technology alone, however, cannot bring about desired change in economic performance of the country unless human potential is fully utilized for production. The management must therefore be aware not only organization but also employees and their needs. 1 | Page

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Human Resource Management

Transcript of final hrm

Chapter 1: INTRODUCTIONEvery organization performs its task with the help of resources as men, machine, materials and money. Except manpower other resources are non-living but manpower is a live and generating resource. Manpower utilizes other resources and gives output. If manpower is not available then other resources are useless and cannot produce anything. Out of all the factors of production manpower has the highest priority and is the most significant factor of production and plays a pivotal role in areas of productivity and quality. In case, lack of attention to the other factors those are non-living may result in reduction of profitability to some extent. But ignoring the human resource can prove to be disastrous. In a country where human resource is abundant, it is a pity that they remain under-utilized. In wording of Oliver Sheldon No industry can be rendered efficient so long as the basic fact remains unrecognized that is human. The people at work comprise a large number of individuals of different sex, age, socio-religious group and different educational or literacy standards. These individuals in the work place exhibit not only similar behaviour patterns and characteristics to a certain degree but also they show much dissimilarity. Technology alone, however, cannot bring about desired change in economic performance of the country unless human potential is fully utilized for production. The management must therefore be aware not only organization but also employees and their needs.Performance is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a philosophy which values and encourages employee development through a style of management which provides frequent feedback and fosters teamwork. It emphasizes communication and focuses on adding value to the organization by promoting improved job performance and encouraging skill development. Performance involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee. An organization that fosters high employee job satisfaction is also more capable of retaining and attracting employees which contributes to employees better performance. Training and development is very crucial to the employees, the organization and their effectiveness. Training holds the key to unlock the potential growth and development opportunities to achieve a competitive edge. In this context, organizations train and develop their employees to the fullest advantage in order to enhance their effectiveness. Performance of an employee is a dependent factor on variables like knowledge, skill and abilities. Training and development provides employees required knowledge, skills and abilities to do a job. Training is a tool to fill the gap and the firms should use it wisely to improve employee productivity. The employees feel motivated and accountable for their performance and strive to achieve/exceed the targets set for them. The only thing that pleases the managers and leadership is higher achievements and performance delivery. Employees at grass root level take self-initiatives to improve their individual and team performance and are often engaged in a die-hard competition with their peers; and raise the performance bars on a regular basis unless they have reached or exceeded the industry bench-mark.The main objectives behind this research were to find out relationship between various factors which affects individual performance. This is an exploratory research based solely on insights drawn from the analysis of the existing literature of different studies, reports, periodicals and books related to the topic of study in order to investigate the relationships between the various factors which determine performance and how an employee perform.The results of the study helped the researchers to know about the factors like motivation, personal traits, training and development programs, organizational culture which directly affects ones performance.

Chapter 2: Related Literature ReviewAccording to the research done by Sageer, A. et al., employee attitudes typically reflect the moral of the company. In areas of customer service and sales, happy employees are extremely important because they represent the company to the public. So, every organization should develop strategies that strengthen the work environment and increase the employee morale and employee satisfaction to enhance employee performance and productivity, which ultimately results in high profits, customer satisfaction as well as customer retention.

The study done by Tiwari, P. (2012) provided the knowledge that the organizations which implements HRM practices with dedication, remains ahead of their competitors because such practices affects other variables such as competitive advantage, job satisfaction, financial performance, employee turnover, service quality, employee commitment etc. in a positive manner and leads to overall corporate performance. While designing and implementing such practices, one important thing is to be kept in mind that the HRM practices should be analysed from time to time and it should be updated accordingly.

According to Fort& Voltero (2004), there are a number of factors that may be affecting the employees performance. Each employee may have a different impact from different things at the workplace; clear goals and job expectations, suitable repertoire, immediate feedback, skills to perform, knowledge of the organizational structure, functional feedback system, sound metal models, sufficient motivation through self-satisfaction and incentives.

According to Valleet (2000).Effective training is beneficial for the firm in variety of ways, such as, it plays a vital role in building and maintaining capabilities, both on individual and organizational level, and thus participates in the process of organizational change.

Table 2.1 Important findings of Literature reviewAuthor, YearImportant findings

Michael Armstrong(2006)Performance means both behaviour and result. Behaviour emanates from the performer and transforms performance from abstraction into action. Not just a means to an end, the behaviour is also an outcome in itself, the product of mental and physical effort applied to the task, which can be judged apart from the result

Pankaj Tiwari (2012)Effective HRM practices affects variables such as competitive advantage, job satisfaction ,financial performance, employee turnover, service quality etc.

Nickols (2003) and Fort& Voltero (2004)

Knowledge of the organizational structure, functional feedback system, sounds metal models, sufficient motivation through self-satisfaction and incentives has a positive impact on employees performance.

Alam Sageer, Dr. Sameena Rafat, & Ms. Puja AgarwalEmployee attitudes typically reflect the moral of the company and the organizational culture is one of the main determinates of employee attitude.

Mohammad Salim & Nimalathasan Balasundaram(2011)The garment industries cannot ignore employees individual factors to achieve satisfactory performance.

Source: Literature Review

Variables IdentifiedTable 2.2 Independent and dependent variablesIndependent VariableDependent Variable

Attitude & MoralOrganizations Culture

Individual performanceMotivation, Knowledge, Training and Development.

Personal TraitBehaviour, Job satisfaction

Source: Literature Review

Chapter 3: Research MethodologyThis is an exploratory research based solely on insights drawn from the analysis of the existing literature of different studies, reports, periodicals and books related to the topic of study in order to investigate the relationships between the various factors which determine performance and how an employee perform. This research work will serves as a means to help acquire useful information or knowledge about the subject area. By drawing on the existing literature, not only topic under consideration is theorize, but also formulates and discusses the proposition that will help illuminate and discuss some ways for the firms to understand the effect of training on employees performance.

Reasoning:The study primarily concentrates on the evidences gathered on the basis of secondary data and interpretations are done based on the data and findings of the secondary source. The final conclusion is drawn using the discussion carried out relating to the variables that are found in the review of the literature, which makes the study inductive.Conceptual Framework:

Figure:3.1 Conceptual FrameworkLIMITATIONS:1. The study is done purely based on the secondary data.2. The study is not eligible to make a generalization on the compensation standards of the organization.

Chapter 4: DISCUSSION4.1: Effect of Motivational Factors on PerformanceEmployees are highly motivated with good working conditions as they provide a feeling of safety, comfort and motivation. On contrary, poor working condition brings out a fear of bad health in employees. The more comfortable the working environment is more productive will be the employees. Fallowing these points come under this category: Feeling safe and comfort in working environment. Tools and equipment. Working methods. Security guards and parking facility. Well ventilated with good light fans and air- conditioning. Neat and clean office place, rest area and washrooms.Source: Sageer, Alam et al., Identification of Variables Affecting Employee Satisfaction and Their Impact on the Organization.Figure 4.1: Various Motivational FactorsAccording to a research done by Kiruja, E.K., Mukuru. E., on Effect of Motivation on Employee Performance In Public Middle Level Technical Training Institutions In Kenya, which was based on two content theories that explain the specific factors that motivate people and two process theories which are concerned about the psychological and behavioural processes that motivate an individual. The study was showed that Individual needs and goals are some factors that motivate people and they expect suitable rewards based on their performance.The study was based on motivation factors given by Herzberg who gave few dimensions which directly or indirectly motivates employee. The dimensions are as follows:

Achievement Recognition Work itself Advancement Possibility of GrowthThe following are the hygiene factors, which work in the same way with positive or negative attributes. However, these factors can only have an effect on the dissatisfaction one feels

Personal or Working Relationships Working conditions Salary Personal Life Feeling a Job Security

AnalysisKiruja, E.K., Mukuru. E., prepared questionnaires based on the factors taken from the content theories. The population for their study was concentrated on administrators, heads of department, teaching staff and non-teaching staff. From 315 respondents, 287 replied. They also intervied administrators and heads of department. The idea was to find out the effect of motivation on employee performance in public middle level technical training institutions in Kenya.The researchers used Correlation analysis to determine the effect of motivation on employee performance. There was a weak positive correlation between motivation and employee performance which was statistically significant,r(285)=.205, p