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HRM AND ORGANIZATION PERFORMANCE
Biljana Dordevic (2004) also agrees that constant efficiency improvement depends on the organization’s human resource (the skills, knowledge, competencies and attitudes that reside in the individual employee of the enterprise) and its social capital (faith and self-assurance, communication, cooperative working dynamics and contact, partnership, shared values, collaboration, etc.).
Fulfilling the needs of internal customers (employees), the organizations will strengthen their human capital and will be improved to be situated in meeting the needs of their external customers (Berry, 1981). These shows how important are the employees to the organizations. Lings (2002) states employee should be treated as the customers of the organization and the jobs of the employees should be treated as the products
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Engaged employees will benefit the organization by accelerating the productivity, profitability and customer royalty. So, it is clearly indicated the employee engagement is closely related with the organizational performance. Organizations with highly engaged employees will be able to reduce turnover rates, retain outstanding employees, produce profit and get customer satisfaction. On the other hand, organizations that earn less commitment and engagement from the employees will have high turnover rates, less productivity, operation margins and profit margins.
The importance of job satisfaction also discussed in this literature review and the practices of HRM such as training, selection, performance appraisals, compensation and rewards are closely related with the employee job satisfaction. Employee satisfaction is often collided by compensation packages, career growth, job designs and management styles, and thus HRM practices should be implemented according to sustain an outstanding work force for the
Workers feeling, which includes competitive compensation and reward strategies, professional growth and development, career paths and succession plans and the organizations leadership and culture are contributing factors of employee engagement
A study conducted by BlessingWhite (2013) highlights five levels of employee engagement. The first level is the “engaged”. The engaged employee exhibits high contribution and high satisfaction, these employees find great satisfaction in their work, they are strongly committed to the organizations mission and goals, and have a positive impact on employee morale. The second level of employee engagement is the “almost engaged” having a medium level of job satisfaction and contribution. These employees are genuinely satisfied with their job and are considered top performers within the organization. The third level are considered “honeymooners and hamsters” these employees exhibit a high job satisfaction but low contribution levels. Honeymooners are considered newer employees and are seeking their role with the organization, while also seeking ways to contribute to the mission. Hamsters, on the other hand, are sincerely hard workers, however they routinely work non-value added task, therefore contributing little to the organization. Level four consist “crash and burners”. The “crash and burners” have a high contribution level but also exhibit a low level of job satisfaction. The “crash and burners” often complain about decisions made by upper level management as well as complain about
SHRM Foundation Executive Briefing (2012). Employee Engagement: Your Competitive Advantage. Retrieved December 4, 2013, from http://www.shrm.org/about/foundation/products/Documents/Engagement%20Briefing-FINAL.pdf
All the more, essentially each employee wants to feel as if they are apart of something bigger that brings about promotion for someone or something greater than themselves. Therefore, that is why is it is pivotal for employers to cultivate high employee engagement.
The study of employee engagement has been a steady increase over the last ten years, due to the fact that employee engagement has a significant factor in an organization 's success and competitive advantages (Saks & Gurman, 2014). Employee engagement is defined as employees who are engaged “for the best interest of the organization, and it is associated with meaningfulness, safety, and ability” (Abu-Shamaa, Al-Rabayah & Khasawneh 2015). This results in employees being dedicated, focus and willing to do what it takes to get the tasks done. Similarly, having the effectiveness of value and pride towards their work. In contrast, employee burnout is the opposite of employee engagement. Burnout is a “syndrome of weariness with work
Syed, N and Lin, X (2012). Impact of High Performance Human Resource Management Practices on Employee Job Satisfaction: Empirical Analysis. Interdisciplinary Journal of Contemporary Research in Business. 4 (2), 318-342.
MacLeod, D. and Clarke, N. (2009), Engaging for success: enhancing performance through employee engagement, London: Department for Business, Innovation and Skills
As we know, the term ‘human resource management’ underlines a belief that people really make the difference, only people among other resources have the capacity to generate value. However, the human resource management is considered as the ‘Cinderella’ in the organization as its importance has not been discovered by the senior managers, in addition, it has to share responsibilities with line managers, sometimes it takes more work than it is expected. Actions should be taken to help the Cinderella find her glass shoes.
It is a well-established reality that organisations in the world today can no longer survive without focusing on their employees. If they have to be at the competitive edge, they have to invest in human resources, and placing their employees on top priority. This notion has led to the strategies that, most organisations are pursuing through employee management. To achieve the optimum performance of employees, organisations must motivate their employees, and engage them in activities that will benefit and help employees in achieving their predetermined goals and objectives. In order to achieve this, it is imperative for managers to set in motion work conditions that will help employees to achieve satisfaction of their job, low turnover and absenteeism rate and promote the environment that promotes the organizational commitments and organizational citizenship behavior.
Employee engagement, a term devised by Gallup research group, is viewed as an important management tool for any company who wants to be an effective and productive organization. Researches have shown that employee can contribute positively to the organization vision and goal when a company engage them effectively. The employee will also feel more passionate about their work and have a sense of belonging.
Human Resource Management (HRM) is build from numerous sectors within allowing better efficiency levels to be reached my organisations. Some believe that certain topics such as performance management and rewards are the most crucial topics in HRM. In this essay these areas of HRM will be critically analysed to see why they are the most significant in running a successful operation of HRM in organisations. Performance management is the scheme through which organisations lay down work goals, establish performance standards, allocate and assess work, offer performance reviews, decide upon training and development needs and issue rewards (Briscoe and Claus, 2008). Performance management is a vital tool used in HRM to ensure a similar vision is
The frontline employees play a crucial role in delivering process (Congram &Fridman, 1991), in obtaining and responding to customer feedback (Munro & Ogston, 2008), provide value-added service through successful interaction with customers (Edvardsson, et al.1997), receiver and provider of services (Schneider & Bowen, 1985).Qualified and satisfied employees as a main factor of internal marketing bring profitability for organization through delivering sufficient outcome to customers (Schneider & Bowen, 1985).IM help employee to understand organizational goals and its importance .Accordingly ,IM make value to employee then customer though meet the internal and external customer’s expectation by promises made and value proposition and ultimately
Improving employee job satisfaction brings along additional benefits such as a direct impact on increase customers’ satisfaction and employees’ work performance. Satisfied employees tend to add extra effort to job performance, then work harder and better. Hence the organizational success totally depends on human capabilities, highly satisfied work force is completely essential for an organization.
The purpose of this report is to brief the management on the importance of employee satisfaction in achieving the competitive goals of the organization through increasing the retention of the employees.
Here are some figures that display how Employee engagement practices have bolstered up the efficiency and productivity of the employees and in return have augmented the profits of the companies. According to a new meta-analysis that was conducted by the Gallup organisation amongst 1.4 million employees, the organisations that focus on employee engagement practices to a large extent have reported 22% increase in productivity. These practices even impr...