The effect of human resource management practices on employees performance in Hadassah Foundation in Buea Southwest region
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This piece of work is structured into five chapters which proceed as follows. Chapter one deals with introduction, background of the study, statement of the problem, research question, research objective, hypothesis, and scope of study, significance of the study and operational definition of terms. Chapter two is concern with literature review which focused on conceptual, theoretical and empirical review and also the research gap and contributions. Chapter three is concern with research design, area of study, population, sampling size and sampling procedures, instruments, data collection, method of data analyses. Chapter four is concern with data analyses and presentation of data. Chapter five is concern with discussion, conclusion and recommendation.
1.1 Background to the Study
Organizations nowadays are looking forward to have a competitive advantage against the threats present in globalization. Due to the high competency requirements, most organization aim to generate the kind of performance that can bring more profit. In order to do that, the employees are required to perform well and improve their performance (Osman, 2013). To comply with this, the organization needs to align organizational performance with human resource management practices, which would be shown by organizational output of financial variables (sales growth, goal achievement, good services, productivity) (Chand and Katou, 2015; ) and non-financial variables (management quality, long-term orientation, continuous improvement, workforce quality) (De Waal and Frijns, 2011; Dimba, 2010) and also other outcomes as commitment, quality and flexibility Guest, (Bulla and Scott,2013).
Once a business entity has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals (Kaplan and Norton, 2015).
Since the 1980s, human resource management (HRM) strategy has become an important topic for the management area. Human resource management strategy has achieved its prominence because it provides competitiveness and promotes managerial efficiency in the business area. The rise of human resource management in the 1980s brought managerial scholars to the link between the management of people and performance. A number of attempts were made to put empirical facts with the theoretical bones of the knowledge based firms and the specific HRM views concerning how the systems on Human Resource practices, which can make an increment on the organizational performance. The approach that focuses on individual Human Resource practices and the link with the performance continued since early 1990s (Hendry and Pettigrew, 2012).
In a global context, human resource practices are such as recruitment, selection, and appraisal; it directs partially constrain development of specific practices; and overarching philosophies, which specify the values that inform an organization’s policies and practices (Gilley et.al, 2012). According to (Bulla and Scott, 1994), human resource planning is the process of ensuring that human resource requirements of an organization are identified and plans are made for satisfying those requirements. This view suggests several specific, interrelated activities that together constitute Human Resources planning which includes personnel inventory, human resource process, action plan, control and evaluation. An organization needs to adopt specific HR policies and practices for different strategies. Thus, it can elicit employee behaviors that are consistent with an organization‟s strategy (Rose and Kumar, 2014).
Human Resource management practices should be an important part of the strategy of any large corporation Gilley et.al.,(2012).
Yet researchers basing their views on a behavioral psychology perspective have argued that human resource management practices could contribute to competitive advantage as long as they reinforce the skills, attitudes and behaviors that result in lowering costs and enhancing product differentiation. Therefore, the important role of human resources practices in contributing to a firm‟s competitive advantage overlaps with the concept of efficiency as a human resources strategy for effective performance (Ozcelik and Ferman, 2016). Human resource planning is surrounded by three basic level practices which can increase the organizational performance: To increase the knowledge, skills and abilities among employees, to enhance their empowerment like giving them employment security and organize some participation programs for employees and to give them motivation through both incentive means like giving them compensation and benefits, and also through internal promotion like promoting them with their job status. (Yongme et al.2015). Employee performance can be measured through financial stability and productivity, but when we have to relate human resource planning with the employee‟s performance, and then we consider some of other variables like efficiency and effectiveness, employee motivation, job satisfaction, trust on employees (Cho et al., 2015). To comply with this, the organization needs to align employee performance with human resource management practices, which would be shown by organizational output of financial variables (sales growth, goal achievement, good services, productivity) Osman et al., 2013; Chand and Katou, 2015) and nonfinancial variables management quality, long-term orientation, continuous improvement, workforce quality. Compensation and reward system must be taken seriously to achieve a competitive advantage. Compensation is mostly in terms of monetary terms after a specified period or after a completion of a task. In addition, compensation is the output and benefit that employee receive in form of pay, that is salary, bonus wages among other to increase performance.
A reward is award given to an individual employee or employees for their exceptional performance or when an organization attains its target or goals. The rewards exist as tangible and intangible financial benefits and services given to employees for playing their part in an organization. According to Gcabo (2007), organizational rewards significantly influence employee performance in an organization. Compensation and reward system is an instrument used to increase employees‟ performance in any organization. The rationale behind the use of compensation and rewards in enhancing employee performance is that when the needs and wants of employees are met (both financial and otherwise), their job satisfaction improves and so does their morale. As a result, they are inspired to perform better. It was observed that employee commitment is affected by various aspects of remuneration.” Katru (2006) asserts that compensation and reward system is an important tool of employee performance management as it enhances the motivation and job satisfaction levels of employees. The compensation and reward system ensures that both intrinsic and extrinsic needs of employees at all levels are adequately provided for it develops organizational integrity, policy, procedures and practices capable of improving organizational performance. Compensation and reward system is concerned with employee and organizational performance development through which better results can be achieved (Baker et. al. 2008).”
Employee performance refers to the conduct of the duties of the organization with regard to the policies and the rules of the firm. Employee performance is one of the main important aspects of the organization to attain the organizational goals. When the goals of the organization are met then the organization can continue in the operations of the firm but in case the goals are not met the firm can easily close down. Employee performance is normally compensated through salaries and wages or any other form of reward which is lawful like the benefits (Kamau, 2013).”
Employee performance is also referred to as the art of working towards a common goal for the monetary benefit. The art of working is guided by the general principles and the laid down rules, which can be changed from time to time. Employees are motivated by the monetary compensation or any other benefits which makes them work harder to earn more (Muraya, 2012). Baker et. al. (2008) proposes that employee compensation seeks to attract and retain suitable employees, encourages good management of employee relationship and commitment and minimizes tension and conflict as it deals with all forms of final returns, tangible service and mechanism for good relationship.”
Wide array of literature suggests that positive work-related behavior and attitudes largely depends on employee perceptions of their employer such as whether the employer values their contribution or even cares about their wellbeing (Ali, 2012). The world economy has become highly competitive. A strategic response from an organizational perspective requires a critical evaluation of organizational performance in all aspects. Employees are an organization’s most reliable source of competitive advantage. The performance of an organization boils down to enhancing the individual performance of employees across the board. This requires motivation of all employees. Motivation is only achievable through better HRM practices in the area of managing compensation and rewards, which entails creating a perception of fairness through competitive wages and benefits (Ali, 2012).”
Regionally, Africa is said to be a continent on the move. However, this move is being constrained by many factors, chief among them being human resources. The region is grappling with the challenge of shortage of skilled manpower particularly in the public sector. One of the reasons behind this situation is unfavorable working environment particularly with regard to remuneration (Katru, 2006). In East Africa, Kenyan organizations have been leading in developing employee compensation and reward systems in enhancing employee performance in public sectors (Baker et al, 2008).
However, the country continues to face real challenges as evidenced by numerous industrial strikes that are witnessed so often on grounds of poor pay. The most recent is the doctors and nurses strike that lasted for quite some time and the university teaching and non-teaching staff who severally boycotted their duties over unmet needs with regard to remuneration.
Bhartia (2009) observed that the best African countries to work in are Morocco, Libya and Namibia. This is because the countries have some of the most rewarding remuneration packages in both public and private sectors. HF being our area of study was established on 1st July 1995 by an Act of Parliament Cap 469 for the purpose of enhancing the mobilization of Government revenue while providing effective tax administration and sustainability of revenue collection. Presently the authority runs on a resource base of about 4600 staff working in fifty-nine (59) stations across the country on a permanent basis. In an effort to monitor the performance, the authority employs a number of tools, one of them being the formulation of development blueprints commonly known as Corporate Strategic Plans, (Kenya Revenue Authority, 2015). Human resource planning from its origin enables workforce planning, or personnel planning, that anticipates and makes the provision of the movement of people into, within and out of the work group. Its primary purpose is to enable the work group maximize the utilization of its human resources by making sure that the right number of people, of the right capabilities, is available to do the task in correspondingly right job positions at the right time. Human resource planning helps work groups to implement their short and long- term organization plans. Due to the vital role of human resource to the performance of the company, human resources planning is very important part of the strategic plan of any work group (Gupta, 2009).
Such planning also includes specifying who is going to do what, when, where, how and with what resources for what population group or individuals, so that the knowledge and skills important for adequate performance can be made available according to predetermined policies and time schedules. This planning must be ongoing and not a sporadic process and it needs progressive monitoring and evaluation.
1.2 Statement of the Problem
In current economy, employee performance is one of the significant factors of organizations for gaining competitive edge in the business world. The human resource of any organizations is the key to get better performance of the employees and it can be enhanced by implementing the human resource management in the organizations (Kerdpitak & Jermsittiparsert, 2019, 2020). Previously, organizations are not following the policies of human resource and are not aware about the entry and exit of employee‟s policies (Noe, Hollenbeck, Gerhart, & Wright, 2017). But now due to globalization, it is necessary for the organizations to scale up the performance of employees by implementing human resource management practices. Training and development improves the performance of employees by providing on job and off job trainings. Also training give employees the ability to boost up their skills according to the updated knowledge.
Mutahi (2015) in a budgetary review pointed out the need to improve compensation and reward systems in organizations as he observed that some employees in public sector were not adequately compensated and as a result the sector continued to post unsatisfactory outcomes with respect to their key performance indicators.
Human resources planning being one of the growing areas of academic study, various organizations regard their human resource as their core competency because it would lead to wards its better performance. Human resource planning normally gives reflection to the performance of a particular Institution all of which depends on its efficiency. Inefficient and ineffective human resource planning both have become a major problem in most group works performance despite of various reforms taking place in different periods by the government). Despite a wealth of empirical works on the subject, still effect of human resources management practices on employee‟s performance remain one of the greatest challenges that many organization faces. This has been the case of the Hadassah Foundation in Buea. Nevertheless, at most all studies have been done beyond Cameroonian boundaries creating a geographical and cultural gap this study sought to fill. The Hadassah Foundation and training system in Cameroon focuses on providing skills to the labour force in order to enable it to enter, reenter skills training retrain with a view of acquiring and maintaining decent employment and employability.
1.3 Research Questions
Main Research Questions
The main research question of this study is; How does human resources management practices affect on employees performance in Hadassah Foundation? Beside the main research question, the following are specific research questions;
Specific Research Questions
- How does human resource planning influence employees performance at Hadassah foundation?
- How does training & development influence employees performance in Hadassah foundation?
- How does compensation influence employees performance in Hadassah foundation?