The Way People Are Managed Is Vital for the Performance of Any Organization - Literature review Example

Name Lecturer Task Date “The way people are managed is vital for the performance of any organization” Human resource management has been continuously changing in the recent past and this has called for further research in this realm. Research studies on this field ought to focus on establishing the effects of human resource practices on employee commitment (Zaitouni etal., 2011: 108). Many scholars have argued in support of the proposition that human resource policies and practices have a considerable effect on the performance of an organization. Information from their scholarly works have argued that progressive human resource management practices and policies have a positive impact on organizational performance (U.S. Department of Labor et al, 1993:3). Whitener (2001) being one of the scholars for example argued that human resource practices have an effect on relationship between perceived organizational support and commitment, and his arguments were based on research conducted on credit unions. However, it is quite crucial to note that not all human resource practices will have the same effect when used. Godard (2009) found out that various human resource practices have dissimilar effects and these implications vary with environment. It is for this reason that the proposition that ‘The way people are managed is vital for the performance of any organization’ emerged. It is also worth noting that not all scholars support the ideology of human resource practices having a direct relationship with organizational performance in the same dimension. For example, Mohamad (2009) disagrees with the idea that all human resource practices having the same impact on organizational performance. He argues that, different human resource practices would give the best results due to direct relationship existing between them and organizational performance. Training and information technology have a direct correlation to organizational performance but the relationship is indirect. In essence, they moderate the relationship between human resource practices and organizational performance (Mohamad, 2009: 236). The overall turnover of an organization does not entirely depend on the number of employees it has but also on how they are managed. Researching on this ideology helps in the achievement of good understanding on how best human resource managers can manage their employees. Perhaps, the best way to initiate this discussion is by first defining crucial terms; human resource practices and policies, and organizational performance. Godard (2010) defines human resource practices as ‘the way in which worker, as resource inputs to this process are managed’. Human resource practices circle around activities such as training, appraisal and selection. In simple terms, human resource practices are those management activities aimed at improving organizational performance. Human resource policies are predefined guidelines forming a good foundation for effective management. Organizational performance on the other hand refers to end result of an organization in terms of economic output. These three terms are interrelated in some way, with one factor being dependent on the other. Smith, (2007) argues that a human resource system which is inclusive of both human resource policies and practices have proved to have substantial effects on the attitudes and behaviors of employees particularly on the side of turnover. However, little has been done on the side of attitudes and therefore, it is limited in terms of empirical and theoretical evidence. Much has also been done with regards to employee commitment. Employee commitment can be simply defined as worker’s ability to establish a long term relationship with the organization. Many scholars have defined this term using different words but they all center on the same idea of long term relationship. Zaitouni et al. (2011) have defined it as employees’ long term relationship and the intent of staying in a job along with a firm belief in the goals and the objectives of his or her organization. This usually accompanied by the devoted effort to attain organization’s goals. Commitment can defined in three dimensions; affective, continuance and normative. Affective domain entails the psychological feeling and attachment that an employee has to a certain job and his or her willingness to stay there socially (Zaitouni, Sawalha & Elsharif, 2011: 109). Continuance is the type of commitment that an employee devotes to a job after a cost-benefit analysis. Normative commitment entails the disposition to remain on a job for a longer period due to moral factors (Zaitouni, Sawalha & Elsharif, 2011). The extent of commitment portrayed by an employee is dependent on how satisfied he or she is while on a job. Job satisfaction can be enhanced through motivation. Human resource practices such as training and job security are more likely to increase worker commitment. Committed employees are critical in uplifting economic performance of an organization (Imran & Ahmed, 2012: 82). According to Godard (2010), contemporary human resource practices aim at developing a high commitment culture among the employees. Much has also been done with regards to the effects of some factors on the three domains of commitment. For example, the results of research study conducted indicated that some factors such as compensation, perceived organizational support, work life policies, training and development, and career opportunities had positive correlation with affective domain of commitment (Imran & Ahmed, 2012: 84). Currently, much focus has been directed towards reforming human resource practices to those which are related to high performance. Godard (2001) points out the fact that currently, much focus has been directed towards alternative work practices or workplace reforms related to high-performance human resource systems. Reforms are being directed towards developing flexible human resource systems resulting to high commitment. Human resource is an important factor for any organization. It is therefore imperative that they be treated more than any other resource in the organization. The success of an organization is dependent on skills and abilities of organization’s employees (Boohene, 2011: 266). Organizations which value and use its scarce resources are bound to succeed. Human resource is among these scarce resources and the success of an organization depends on how it has chosen the right human resource practices to use on them. It is therefore a responsibility of human resource managers to deploy suitable human resource practices to ensure achievement of organization’s objectives. According to Boohene (2011), human resource management research has shown that the ability of an organization’s human resource has a great effect on its success. Their abilities are dependent on how they are managed. Collins & Druten (2003) support this argument by saying that researchers have proved this proposition by giving convincing evidences. Their arguments are based on research studies conducted on human resource practices such as; performance appraisals, reward schemes, training and selection. These practices have shown a direct correlation with organizational performance. However, other scholars disagree with the idea of all these practices having the same magnitude of impact when used. According to Boohene (2011), recruitment, selection and appraisal practices had a significant effect on the financial performance of Graphic Communications Group Limited (GCGL) while training and development had minimal impact. Despite the insufficient evidence on training practice, it was quite evident that such practices require strategic planning (Boohene, 2011: 271). Human resource practices ought to be chosen carefully to correspond with environment and job type. As earlier stated, these practices aim at making employees committed in their jobs. Additionally, human resource policies formulated ought to instill humanity in workplace and the employees feel they are part of the organization. At the same time, policies should help in guaranteeing good health to the employees. Cooper (1999) highlights the fact that human resources can be nurtured through the provision of good health and social needs to employees. In conclusion, despite the fact that not much has been done in regards to research studies conducted to establish the relationship between human resource systems and performance of an organization, considerable psychological studies indicate the effects of human resource practices and policies on behavior and attitude of employees. Considerable amount of evidences have shown that there exists a positive correlation between human resource systems (practices and policies) and organizational performance. Additionally, human resource systems have considerable effect on employee behavior and attitude. Needless to say, employee behavior and attitude will dictate the kind of effort in their jobs within the organization. It is therefore the sole duty of human resource managers to ensure that human resource practices and policies used are appropriate. Having in mind Godard’s (2001) argument, that there exists a non-linear effect of human resource practices, managers ought to choose the right combinations of human resource practices that can have desirable effects. Adopting modern human resource practices is also an important factor. Similar to what Godard (2001) states, employers should adopt complementary human resource practices aimed at generating positive work orientations. They should implement human resource practices that motivate employees thus encouraging higher levels of performance (Smith, 2007: 26). Formulating good policies and using appropriate human resource practices in an organization is the best way of managing employees. The overall output of an organization entirely depends on employees and how they are managed. Generally, a good human resource system can make an organization to be more effective at the same time attain competitive advantage. Human resources being an important facet for any organization must be tapped through formulation of policies promoting high level commitment. Therefore; it is critical for managers to formulate human resource policies that can help in building a suitable culture within an organization. References Boohene, R. 2011. The effect of Human Resource Management Practices on Corporate Performance: A Study of Graphic Communications Group Limited. International Business Research, 4(1): 266-272. Collins, R. & Druten, K. V. 2003. Human Resource Management Practices. 15th April 2013. Retrieved from Cooper, C. L. 1999. Can we Live with the Changing Nature of Work? Journal of Managerial Psychology, 14(7/8): 569-572. Godard, J. 2001. Beyond the High-Performance Paradigm? An Analysis of Variation in Canadian Programme Effectiveness. British Journal of Industrial Relations, 39(1): 25-52. Godard, J. 2009. Institutional Environments, Work and Human resource Practices, and Unions: Canada vs. England. Industrial and Labor Relations Review, 62(2): 173-199. Godard, J. 2010. What is best for Workers? The Implications of Workplace and Human Resource Management practices Revisited. Industrial Relations, 49(3): 466-488. Imran, A. & Ahmed, M. 2012. Impact of Human Resource Practices on Organizational Commitment: A Study among service Sector Employees in Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 4(2): 81-90. Mohamad, A. A. 2009. Human Resource Practices and Organizational Performance. Incentives as Moderator, Journal of Academic Research in Economics, 1(2): 229-244. Smith, L B. 2007. Organization-level Human Resource Policies, Culture, and Managerial Practices: What Can Consistency between Barney's Inimitable Characteristics Tell Us about Employee Attitudes and Behaviors? Michigan: ProQuest. U.S. Department of Labor, Bureau of Labor-Management Relations & Cooperative Programs. Human Resource Policies and Practices in American Firms. Darby, PA: DIANE Publishing. Whitener, E. M. 2001. Do "high commitment" human resource practices affect employee commitment? A cross-level analysis using hierarchical linear modeling. Journal of Management, 27(5): 515-535. Zaitouni, M., Sawalha, N. N. & Elsharif, A. 2011. The Impact of Human Resource Management Practices on Organizational Commitment in the Banking sector in Kuwait. International Journal of Business and Management, 6(6): 108-123. Read More