The effect of human resource management on an organisational performance - Dissertation Example

?Chapter one 0 Introduction 1 Introduction of the study In particular, this research study will seek to explore the true effect of human resourcemanagement on an organisational performance; this is to say that the study seeks to measure the true effect of human resource management in improving organisational performance. The research study will employ the use of case study technique and the organisation that has been selected for this study is the Accenture Plc. Therefore, the researcher will focus on measuring the true effect of Accenture’s human resource management on improving the performance of the company. This chapter will begin with a brief background study on the topic of human resource management and then a brief overview of Accenture Plc. Thirdly, this chapter will spell out the research problem and thereafter the objectives of the study as well as the research questions. Lastly, this first chapter will state the significance of the study and the scope that it will cover. 1.2 Background of the study According to Mathis and Jackson (2010), the roots of human resource management can be traced back to the industrial revolution whereby companies started engaging in mass production for commercial purposes. Therefore, there was an urgent need of hiring more employees to the extent that even children were introduced into the work environment without any consideration to their ages. During this particular, the human resources/ workers have proved to be a critical part of an organisation, but there was little known about effective human resource management and this contributed to widespread violation of employees’ rights. This because the labor sector had not been fully formalized and therefore, there was no formal regulatory framework for the sector. Stewart and Brown (2010) stated that the numerous industrial strikes that characterized this era were attributed to the widespread violation of employees’ rights that was going on in nearly all of the manufacturing companies. DeGraff (2010) further added that employees’ plight during this era was denoted by low wages and poor working conditions. According to DeGraff (2010), the industrial strikes led to the emergence of effective human resource management whereby the welfare of the employees received more focus from the management of the companies in order to avoid future strikes, which had proved detrimental to the companies that were affected. Factors that marked the emergence of effective human resource management included the abolishment of child labour, development of labor unions, and strategic recruitment and selection of workers. DeGraff (2010) further added that the studies by Fredrick Taylor on lean manufacturing sparked an interest on the actual contribution of the workforce on an organisation’s productivity and this resulted to workers been acknowledged as a significant part in the productivity of an organisation. In the present world, effective human resource management is a source for organisation’s competitiveness meaning that it directly affects the performance of organisations. 1.3 Accenture Plc Accenture Plc is a multinational company that specializes in outsourcing, technological services, and management consulting. The consultancy services cover five operating groups that include resources, products, health and public services, financial services and communications and high-end technology. The company has employed over two hundred and sixty thousand employees who are based across at its wide branch network. In the United Kingdom, the company has ten office locations of which three are in London (Harmon, 2012). The Company boosts of unrivaled experience, unmatched capabilities wide across all business functions and industries. The business model of Accenture is to collaborate with their clients who include 94% of the fortune global 100 and even a big percentage of the fortune global 500 to ensure they become profitable as well as high performers (Harmon, 2012). Over the past years, the company has been keen on outsourcing some of it key business processes to India’s business processing outsourcing centers and one of the major locations has been Bangalore, which is the capital of the southern state of Karnataka in India (Harmon, 2012). The choice of Accenture Pls as the case study is justified based on its unique operation style whereby most business process have been outsourced. Therefore, it will be interesting to see how a company that has outsourced most of its business process is still able to effectively utilize and manage its human resource in order to gain a competitive advantage in the market. 1.4 Statement of the problem There are numerous studies, which have focused on the impact of human resource management but there is no or very little comprehensive studies that focuses on the relationship between human resource management functions such as selection and training, among others and how such functions directly improve the performance within an organisation. Therefore, this present study will seek to fill this gap or enrich the knowledge that is already available pertaining to the true effect of human resource management in improving the performance of Accenture Plc. 1.5 Research objective To measure the effectiveness of human resource management in improving an organisational performance and in particular, the bottom-line of a business organisation 1.6 Research questions (RQ) RQ1: How does recruitment and selection of employee affect organisational performance? RQ2: How does employee training and development affect organisational performance? RQ3: How do employee retention strategies affect organisational performance? RQ4: What is the impact of human resource management on the bottom-line or profitability of a business organisation? 1.7 Significance of the research study This study is significant because it will clearly identify how the functions inscribed in human resource management affect the performance of an organization and in particular, the Accenture Plc. Secondly, the findings of this research study will help in enriching the researcher’s knowledge as well as the current available body of knowledge that focus on human resource management. 1.8 Scope of the research study Since the research study will focus on the Accenture Plc, the researcher will select two offices of the company that are located in London, which can be easily accessed and where the management and the staff will be willing to participate in the research process. Therefore, the findings will directly show the effect of human resource management on Accenture’s performance. 1.9 Motivation of the study Upon the completion of this dissertation, the new knowledge and insights gained would be useful to me in the following ways: a) I will be able to know effective human resource management practices that can positively affect a business organization. b) I will be able to know the insights involved in the effective management of human resources in a multinational company that operates in diverse areas. c) The knowledge and insights gathered from this dissertation equips to handle the role of a human resource manager possibly in a small or medium-sized company. 1.20 Organization of the dissertation Chapter 1 – Introduction It defines what the research area is and the aims and objectives of the research project. This chapter gives the reader an overview of this report. Chapter 2 – Literature Review This chapter contains critical discussion of relevant literature that has a direct association with the research objective in particular. This section will provide readers with a better understanding on the fundamental issues surrounding human resource functions. Chapter 3 – Research Methodology Here, insight will be provided into the actual methods chosen for data collection and analysis. The methods chosen are supported with relevant literature. Chapter 4 – Analysis and Discussion It is a critical analysis of the results obtained after collecting the primary data. The findings will then be examined and evaluated, and any links to aspects of the literature review will be mentioned. Chapter 5 – Conclusion This chapter will provide a clear and comprehensive overview of all the above chapters. The information gathered will be scrutinised to provide a further overview of the project. Chapter Two 2.0 Literature review This second chapter of the dissertation presents the secondary findings of the research study, which are in line with the objectives of the study. 2.1 Definition From a layman perspective, one can simply refer to human resource as the employees in an organisation; but Swanson, (2001) gave a more comprehensive definition of the term by referring to it as “the function of an organisation that’s mandated with the duty of implementing policies and strategies that relate to management of personnel within the business organisation” (p. 299). 2.2 Key roles and functions of the human resource department 2.2.1 Selection and recruitment According to Swanson (2001), the selection and recruitment process is one of the key functions that are performed by the human resource department of an organization. Swanson (2001) wrote that the selection and recruitment function is a process whereby an organization gets to hire the best and most qualified employees who are capable of driving the organization to prosperity or in the achievement of short-term and medium-term goals. Through this process, the organization aims at picking the most suitable employee from a wide pool of employees that are available in the market. Noe et al. (2009) stated that the recruitment process could either be an internal or external process depending on the organizations’ current requirement for their human capital. Accenture Plc recruits and selects its employees by first making advertisements encouraging interested applicants to send their application letters and testimonials. After this, the Accenture’s HR department evaluates the applications that have been received using an established guideline that stipulates the minimum requirements that the desired candidate should have. Candidates who pass the minimum requirements are called for interviews and the HR managers then assess their personal attributes such as fluency, and grooming. Based on the interview responses the HR manager will select the best candidate whom he/ she believe is suitable to work for the company. 2.2.2 Formulation of an organization’s benefit and compensation scheme Sims (2006) wrote that another mandate of an organization’s HR department is to design the benefit and compensation scheme for workers in relation to various aspects like education qualification, experience and even the labor laws that state what the minimum salaries for workers should be. After the recruitment and selection process at Accenture, the HR manager sets the compensation as well as the benefits that the new employee will earn based on his/ her education qualification, work experience, and how the employee negotiated. 2.2.3 Workforce retention According to Sims (2006), workforce retention is a process through which an organization aims at avoiding the loss of its employees or their departure from the organization, especially for those employees who play a critical role in the organization, since this could have a negative impact on the organization. Cotton and Tuttle (2006) stated that the workforce retention is mainly emphasized in order to reduce cost of continually hiring new workers and to ensure there is continuity in the organization. Sims (2006) was of the view that an organization, which has a high turnover of employees, is not financially sound or the management and in particular, the HR department is performing poorly. Therefore, the strategic HR department at Accenture Plc is required to employ appropriate strategies to ensure that employees are comfortable in the work place and every aspect of the company favors them, in order to make them feel encouraged to continue working for the organization. 2.2.4 Adherence to labor laws According to Sims (2006), the HR department is also charged with responsibility of observing labor laws that have been set by the government as well as international bodies to protect the employees against exploitation, unfair treatment, and non-conducive working environment. This function is based on the theory that HRM should aim at employing the best practices while handling its workforce and issues that affect them. In this regard, it should be noted that a business organization such as Accenture Plc clearly stipulates to the HR department that employees’ working terms and environment should conform to those stipulated by the law. It is important for the Accenture’s HR department to perform this task in order to ensure that it does not violate any law that could attract lawsuits. Secondly, Accenture’s HR department ensure adherence to labor laws in order to maintain its public image, and thirdly, the adherence to the labor laws is utilized as a workforce retention strategy at Accenture Plc, because no employee would wish to work in an environment where this is no regard to labor laws. 2.2. 5 Promotion of peaceful co-existence within the organization Cotton and Tuttle (2006) stated that with increased globalization, organization’s workforce have increasingly been made up of people from different ethnic and cultural background. Therefore, because of the interaction of people from different background and organization is likely to witness regular disagreements that could be these differences. In this regard, business organizations that operate in a multi-cultural set up such as Accenture Plc require their HR department to implement strategies that will ensure employees do not have a conflict because of cultural differences. This could be achieved standard communication procedure that shall be used in the office and even banning of certain signs or words that are violate the culture other people with the organization. 2.2.6 Human resource development According to Sahinidis and Bouris (2007), human resource development is relatively a new theory and it has gone to become one of the most critical functions of the modern human resource department. In theory, human resource development is referred to as learning management, which mainly aims at ensuring employees always have relevant skills that are capable of driving an organization to prosperity. One of the principal objectives of human resource development is to develop the employee’s skills and competence level, through education and training with the main aim of making them adapt to technological changes and advancements that are currently taking place within the work environment. Secondly, HRD is aimed at making the current workforce relevant to an organization even in the future when the organization’s goals and objective are likely to change or become broad in perspective (Wofford, 2002). Thirdly, Sahinidis and Bouris (2007) stated that HRD is aimed at enhancing employees’ career growth and personal development by the additional training and education the employees get. This at the end tends to favor the employee, as their resume would have a competitive advantage over those employees who have not received any additional training from their employer. An organization such as Accenture needs to have a forecast on their present and future requirements in terms of skills and technical abilities and the level of competence it requires from its workforce to help it attain its long term goals and objectives. According to Hame (2007), this would only be achieved if an organization has a human resource development program that would educate and train employees in order to upgrade their skills and competence level so that they can drive future organizational goals. According to Harmon (2012), because of the fact that Accenture outsource most of its services it needs to have a well-elaborate employees’ development program, which will ensure that even the foreign employees in the outsourced centers are able to drive its organizational mission and objectives. References Cascio, W. (2003). Managing Human Resources: Productivity, Quality of Work Life, Profits. New York: McGraw-Hill Education. Cummings, T. G. and Worley, C. G. (2002). Organizational Development & Change. Mason, Ohio: Thomson Learning. Cotton, J. L., & Tuttle, J. M. (2006). Employee Turnover: A Meta-Analysis and Review with implications for Research. Academy of Management Review, 11(January), 55-70. DeGraff, J. (2010). "The Changing Environment of Professional HR Associations". Cornell HR Review. Hame, G. (2007). The Future of Management. Harvard Business School Press Harmon, R. (2012). Accenture's Manufacturing Guru: A Common Man, An Uncommon Life. U.S: WingSpan Press Mathis, R. and Jackson, J. (2010). Human Resource Management (13th Edition). U.S. South- Western Cengage Learning Noe, R. Hollenbeck, J. Gerhart, B. and Wright, P. (2009), Human Resource Management. New York: McGraw-Hill/Irwin Sahinidis, A. G., and Bouris, J., (2007). “Employee perceived training effectiveness relationship to employee attitudes.” Journal of European Industrial Training. 32 (1), 63-76 Sims, R. (2006). Human Resource Management: Contemporary Issues, Challenges, and Opportunities. U.S: IAP Publications Stewart, G. and Brown, K. (2010). Human Resource Management. (2nd edition). U.S: Wiley Publishers Swanson, R. A. (2001). HRD and its underlying theory. Human Resource Development International, 4 (3), 299–312. Wofford, T. (2002). Competitive Advantage: Strategy & Human Resources. Journal of Applied Management & Entrepreneurship, 7(1), 135-14 Appendices Questionnaire for employees Dear employee, My name is XXXXX, and I am an undergraduate student studying at the XXXX University. As part of the fulfillment requirement for my course, I am currently conducting a research on the effectiveness of human resource management in improving organizational performance at Accenture Plc. I would therefore appreciate if you could at least spare some of your time and fill out the questions below. Section A Personal particulars 1. Name: 2. Email address: 3. What is your current job position? ..................................................................................................................................................... 4. Which duration have you worked at Accenture? (Kindly tick the appropriate answer) a) Less than 1 years b) 1 to 2 years c) 3 to 5 years d) More than 5 years 3. What kind of training have you received from the company ever since you joined? a) Training on company’s operations and my roles b) Training on how to use new technologies that have been introduced into the company c) Training on new legal requirements, and company policies d) Training for career advancement or for simple improvement of personal skills 4. Do the recruitment and selection strategy of the company improves its performance? (Kindly tick on the appropriate answer) a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree 5. Do employee training and development at the company improve its performance? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree 6. Do the retention strategies applied by the company improve the performance of the company? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree 7. Do human resource management at the company positively impact its bottom line? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly Disagree Questionnaire for a manager at Accenture Plc Dear manager My name is XXXXX, and I am an undergraduate student studying at the XXXX University. As part of the fulfillment requirement for my course, I am currently conducting a research on the effectiveness of human resource management in improving organizational performance at Accenture Plc. I would therefore appreciate if you could at least spare some of your time and fill out the questions below. 1. Kindly tick on the most significant factors that you consider for a potential employee during the recruitment process a) Education qualification b) Work experience c) Physical appearance d) Previous employment recommendation 2. Kindly tick on the type (s) of trainings that you offer to the employees a) Training on company’s operations and my roles b) Training on how to use new technologies that have been introduced into the company c) Training on new legal requirements, and company policies d) Training for career advancement or for simple improvement of personal skills 3. Kindly tick on the appropriate strategies that employee in a bid to retain your skilled staffs. a) Offer financial rewards or incentives to best performing employees b) Promote well performing employees c) Improve their working condition d) Engage them in additional roles to increase their commitment to the company 4. Do the recruitment and selection strategy of the company improves its performance? (Kindly tick on the appropriate answer) f) Strongly agree g) Agree h) Neutral i) Disagree j) Strongly Disagree 5. Do employee training and development at the company improve its performance? f) Strongly agree g) Agree h) Neutral i) Disagree j) Strongly Disagree 6. Do the retention strategies applied by the company improve its performance? f) Strongly agree g) Agree h) Neutral i) Disagree j) Strongly Disagree 7. Do human resource management at the company positively impact its bottom line? f) Strongly agree g) Agree h) Neutral i) Disagree j) Strongly Disagree Read More