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The Impact Of Human Resource Management On Organizational Performance
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
management of people within the organisation has become an increasingly
recognized important focus for researchers and practitioner over the
past 20 years. Organisations are becoming more aware of important role
human resource play in the success of their organisations to achieve
financial performance. As a result, organisations are becoming more
employee-centric by focusing on enhancing employees’ engagement and
organisational commitment
It is important for organisation to adopt
human resources management (HRM) system that optimizes workforce as it
enables organisation 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 peopleto 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 organisation. It creates value
when embedded in the operational system that enhances organisational
performance and ability to deal with turbulent environment. Effective
HRM assists in developing human resources into high quality and
efficient workforce thus enabling the organisation to obtain a
competitive advantage through their people. In contrast, inefficient
workforce can increase labour cost and decrease organisation
productivity. However, in order to remain competitive, grow and
diversify, an organisation 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).
Training is a flexible way to develop an
employee as it consists of both formal and informal ways to enhance the
effectiveness and efficiency of employees (Ellstrom, 2011). Job security
increases employees’ honesty, keeps employees committed to the
organization and provides security to valuable information as well (Raji
and Jackson, 2011). Reward system is imposed on organization to
evaluate reward and organization reward employees on the basis to get
value by elaborating what they have spent and what they have got
(Armstrong, 2011). Employee performance can be evaluated by the
evaluation of task and reward system. Employee performance is one that
is affected by the knowledge transfer that helps employee to develop
their understanding of networking as well as focusing on the
organizational performance.
Organizational performance is related to
organizational justice which allows employees to get committed to task
assigned to him or her. HRM dimensions greatly influences the employees
attitude which in turn affects employees’ performance. If HRM system
works effectively, then increase in the organizational performance will
be seen (Snape and Redman, 2010). Competitive advantage is viewed as a
source of competitive advantage is a must for any organization and
employees are always viewed as source of competitive advantage for any
organization (Barney, 1991; Pfeffer, 1994). So, human resource
management must be made in such a way that can utilize employees in the
best possible way to increase performance of organizations.
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ABSRACT - [ Total Page(s): 1 ]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 ... Continue reading---
