The Impact of Human Resource Management on Organizational Performance

The Impact of Human Resource Management on Organizational Performance

Project / Seminar Material
Reference ID: PS-15249-TM

DEDICATION

This research material titled “The Impact of Human Resource Management on Organizational Performance” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Human Resource Management (HRM), Book Authors and Profound Scholars of existing or related project material on “The Impact of Human Resource Management on Organizational Performance” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    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.

    The Impact of Human Resource Management on Organizational Performance

    CHAPTER ONE

    1.0 Introduction

    1.1 Background of 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.

    1.3 Statement of Problems

    Investigation revealed that 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.

    1.4 Aim and Objectives of Study

    The aim of the study is to examine the impact of HRM practices on employees’ performance in organizations. In achieving this aim, the following specific objectives were laid out as follows:

    1. To establish the extent to which performance would affect the implementation of various HRM practice;
    2. To find out the extent to which employees are being motivated in organizations;
    3. To find out how HRM can affect the employees productivity and performance; and
    4. To know the status of HRM practice a views in an organization.

    1.5 Research Questions

    The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

    • 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 status of HRM practices in organization?
    • What is the extent to which performance would affect the implementation of various HRM practice?

    1.6 Research Hypothesis

    In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

    Hypothesis One

    • H0: There is no significant relationship between reward system and employees’ performance in the achievement of organizational goals
    • H1: There is a significant relationship between reward system and employees’ performance in the achievement of organizational goals

    1.7 Significance of Study

    The findings of this research on the role of human resource management (HRM) and planning in profit-making organizations holds significant importance for several reasons:

    1. Strategic Alignment: Effective HRM ensures that the organization's human capital is aligned with its strategic goals. Understanding how HR planning contributes to this alignment helps in achieving organizational objectives efficiently.
    2. Talent Acquisition and Retention: HRM practices directly impact the recruitment, selection, and retention of employees. Researching this area helps identify best practices for attracting and retaining top talent, which is crucial for the success of profit-making organizations.
    3. Employee Productivity and Engagement: Engaged and motivated employees tend to be more productive, leading to increased profitability. Investigating HRM's role in fostering employee engagement and productivity sheds light on methods to enhance workforce performance.
    4. Cost Optimization: Effective HR planning can help in optimizing costs associated with recruitment, training, and employee turnover. Understanding how HR strategies impact the bottom line aids in developing cost-effective approaches to human resource management.
    5. Adaptability and Innovation: In rapidly changing business environments, organizations need to be agile and innovative. HRM plays a vital role in developing a workforce that is adaptable and innovative. Researching this area helps in identifying strategies to nurture a culture of innovation and flexibility within the organization.
    6. Legal and Ethical Compliance: HRM practices must comply with legal and ethical standards. Studying the role of HRM in ensuring compliance helps in mitigating legal risks and maintaining the organization's reputation.

    Furthermore, studying the role of HRM in ensuring compliance helps in mitigating legal risks and maintaining the organization's reputation. It also provides valuable insights into how human capital can be effectively managed to achieve sustainable profitability and competitive advantage.

    1.8 Scope of the Study

    The scope of the research is focused on the Impact of Human Resource Management on Organizational Performance. 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.

    1.9 Limitations of the Study

    During the course of this study, many things militated against its completion, some of which are:

    1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
    2. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

    1.10 Definition of Terms

    Human Resource Management (HRM):

    HRM refers to the strategic and operational management of an organization's workforce, encompassing activities such as recruitment, selection, training, performance evaluation, and employee relations (Dessler, 2019). HRM aims to maximize employee productivity, engagement, and satisfaction while aligning human capital with organizational goals and objectives.

    Strategic Planning:

    Strategic planning involves the process of setting long-term goals, identifying resources, and developing strategies to achieve organizational objectives (Armstrong, 2017). It entails analyzing internal and external environments, anticipating future trends, and formulating action plans to maintain or enhance the organization's competitive position.

    Profit-Making Organization:

    A profit-making organization is a business entity whose primary objective is to generate financial returns for its shareholders or owners. These organizations operate in various sectors, including manufacturing, services, finance, and technology, with the goal of maximizing profits through revenue generation, cost management, and strategic investments.

    Talent Acquisition:

    Talent acquisition refers to the process of identifying, attracting, and hiring individuals with the skills, qualifications, and attributes necessary to fulfill organizational roles and responsibilities (Boudreau & Ramstad, 2006). It encompasses activities such as job posting, candidate sourcing, interviewing, and on boarding.

    Strategic Alignment:

    Strategic alignment involves ensuring that HRM practices, policies, and initiatives are closely integrated with and supportive of the organization's overall strategic objectives and priorities (Schuler & Jackson, 1987). It requires alignment at both the organizational and individual levels to optimize human capital contributions to organizational success.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

    CHAPTER FIVE

    Summary Of Findings, Conclusion And Recommendation

    5.1 Summary Of Findings

    This summary finding in report of the research work title is as follows:

    1. Human resources management assist to increase employees’ productivity through job analysis
    2. It assist employees to implement business strategies successfully through professional guidance
    3. Trainings are organized to improve cooperation and cordial relations among employees
    4. It provides opportunity for independent thinking and decision making
    5. To determined redeployment due to the acquisition of higher qualification
    6. To determine redundancy level of employees
    7. It provides conducive environment for the employees
    8. Human resources management promotes employees responsiveness and innovation
    9. Recommendation for promotion, upgrading and awards for deserving employees
    10. Human resources management helps in right recruitment of employees in an organization

    5.2 Conclusion

    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.

    5.3 Recommendations

    1. 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.
    2. Appropriate training program for both academicians and support staff should be organized to continuously improve the skills of employees.
    3. Investing in the improvement of the knowledge and skills of employees would enable the University to develop more productive and effective employees.
    4. 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.
    5. 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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