The Performance of Companies before and after HR in Saudi Arabia - Research Proposal Example

The Performance of Companies before and after HR in SAUDI ARABIA: By (Insert both names) (Name of class) (Professor’s name) (Institution) (City, State) (Date) Table of Contents…………………………………………………………………page Abstract……………………………………………………………………………….. 1 1. Introduction…………………………………………………………………...……2 2. Literature Review………………………………………………………………….4 2.1Human Resource Planning.........................................................................…...6 2.2Selection and Recruitment…………………………………………………………7 3. Research Design and Methodology…………………………………………………..8 3.1 Dependent Variables………………………………………………..……………….8 4. Discussion and Findings……………………………………………….……………..9 5. Conclusion……………………………………………………………………………10 6. References……………………………………………………….……………………12 The Performance of Companies before and after HR in SAUDI ARABIA: Abstract Organizations are constantly developing their HRM (Human Resource Management) practices so that they can attain sustainable competitive edge and improve their revenues. These actions comprise training, staff engagement, rewards, and compensation among others. The objective of this study is to investigate the performance of organizations before and after HR in Saudi Arabia. Using firms within Saudi Arabia, this research tests the hypothesis that Human Resource practices (such as job design, training, staff motivation, employee skills, staff attitudes among others has an effect on the performance of various investment units in this group. 1. Introduction According to Price (2004) an organization can attain competitive edge and achieve its aims by embracing a well-organized usage of its workforce. The new of organizational management is developing a work environment that motivates, sustains and attracts its workforce. This responsibility lies with the supervisors and managers all each level of the company. Investments should step out of their comfort zones and time-honored roles to invent new ways of working. They must establish a work environment where their staffs take pleasure in what they do, enjoy what they do and sense they have a purpose and can attain their potential. The present workplace is diverse, different and relentlessly changing. The classical employee-employer relationship of aged has been overturned (Khatri 2000). Employees are living a developing financial system and have massive employment opportunities. This collection of elements has established an environment where investment needs its staffs more than the workforce need the business. Sultan and March (1997) affirmed that describing firms’ performance determinants remain to be the most enduring disciplines of research. Since performance remains and stands to be one of the key aims of an organization, a lot of studies have been directed at understanding and explaining the relationship between company performance and HR practices. A lot of works (Hoque 1999, Andrew and Welbourbe, 1996 and Tzafrir 1999) have connected Human Resource practices to various organizational results, for instance quality, productivity, market value, profits, ROI, and turnover. All these issues regarding the relationship between performance and HR practices are justified; organizations with long term goals of sustained competitive edge and high turnovers should improve their workforce capital by strategizing systems and practices as instruments to achieve goals. This work strives to discuss the relationship between the company performance and HR practices and to comprehend how HR decisions impact the performance of organizations. 2. Literature review To respond to the needs and requirements of the customers and forge ahead in their investments, organizations need to manage special skills of their employees since they play a critical role in gaining a competitive advantage (Price 2004). Excelling to motivate, attract and retain a skilled human capital assists organizations to increase their results. Firms are admitted to efficiently manage their various HR functions such as hiring, wellness, recruiting, training, selecting, communication, organizational development and rewarding workforce to make sure that assist constructively in their financial development and meet the shortcomings within the rapidly transforming business environment. A competent and highly committed human capital aids firms excel these strategies and acquire competitive edge provided these policies are communicated and the employees are engaged both in implementation and formulation stages. According to Legge (1989) the HR strategies need to be incorporated with investment planning. Organizations need to consider individuals as assets as oppose to variable costs. They are important and constitute aspect of competitive edge. Strategic HR administration is the system of connecting the human resource utilities with strategic goals of the firm in order to enhance performance. There is a significant discussion in the literature concerning whether the HRM and associated HR policies is a process or an outcome. For certain researchers for instance, (Snell et al. 1996) there HRM strategies is an outcome, they consider HRM practices as an organizational system structured to attain sustainable competitive edge. Whereas some like (Ulrich 1997) it is a process of connecting the HR function to the overall investment strategy. (Batt 2002) investigated the link between HR functions; staff quit rates, and the corporate performance within the service industry. His observations assert that companies focusing on great skill, staff involvement in teams and decision making processes and human capital rewards for instance; job security and relative pay, experience minimal quit rates and greater performance (revenue growth). (Huselid 1995) explored the effect of HRM practices and policies on company performance. He established that these policies have an important effect on the outcome of an employee (productivity and turnover) and on the general organizational performance. Heselid examined the effect of the capabilities of HR managers on the effectiveness of HR and the effect of the latter on organizational performance applying a sample of 265 U.S cooperates. He established that effectiveness was linked with the attributes and capabilities of HR personnel and that there occurs a connection between Human Resource management efficacy and cash flow, market value and productivity (Sisson 1990). The outcomes of these works, an all-embracing literature body on the effect of Human Resource practices on company performance had surfaced as a prominent study issue within the HRM discipline (Sisson 1990). The outcomes of these works affirm the dependency of company on the competence of its staffs and how efficiently they are managed. For the record of this paper, the following propositions have been drawn. 2.1 Human Resource Planning (Gold and Bratton 2007) describes HR development as the course of methodically projecting the future supply and demand for staffs and consumption of their skills with strategic aims of the firm. Planning the human capital needs of any organization is very vital and significant particularly in the fast transformations in the external demands of the market. Hypothesis 1: efficient human capital planning is certainly linked to corporate performance. 2.2 Selection and Recruitment According to (Gold and Bratton 2007), recruitment is described as the system of developing a pool of able individuals to deploy to a corporate for employment while selection is the procedure through which managers and the rest apply meticulous tools to prefer from a pool of applicants the individual(s) potential for job/s, given legal requirements and management objectives. Firms applying an appropriate selectivity in the process of hiring ensure obtaining the right qualified and skilled person/s for the corresponding job. The kind of relationship that exists between Human Resource selection and recruitment verses productivity of labor is positive. Hypothesis 2: proper selectivity in the process of hiring is positively linked to performance of firm. 3.3 Development and training Firms determined to achieve sustained competitive notch need to assist their staffs improve their skills by getting constant training in order to learn fresh ideas to enhance development of the products and services of the organization. 3. Research design and Methodology: This project investigates whether there is a connection between HR systems and practices and company performance in Saudi Arabia. The statistics applied in this study was gathered largely from a questionnaire established from the earlier literature that is (materials on strategic Human Resource efficacy) and secondary statistics materials (parameters of performance). The research by (Khatri 2000) was the major origin of the questionnaire materials. The questionnaire was provided in English to persons with fundamental management tasks. They were requested to suggest the level to which their organization applied the following Human Resource actions: selection and recruitment, and development and training. In total 70 surveys were gathered. 3.1 Dependent variable In this research, 2 kinds of performance indicators were gathered (Price 2004). The first kind comprises the view of the respondents regarding the rate of firms’ performance over the last 3 years in relation to other firms’ performance in a similar sector. The second one was the profit and sales growth. The elements of the questionnaire were established on the foundation of the literature review and analyzing certain former questionnaires. A 5 point kind of scale was applied, with dedicated parameters ranging from 5 as “strongly agree” to 1 “strongly disagree”. The subject of the elements (Human Resource Practices) was not exposed to the respondents. The elements of the questionnaire are classified into 4 Human Resource Practices are below: Human Resource Planning: comprises 8 statements from 1 to 8. It reflects the significance of HR planning in the organization. The scale indicated a reliability coefficient. .935: Cronbach Alpha Selection and Recruitment: comprises 3 statements from 9 to 11. It reflects the intensity of the process of selection. The scale indicated a reliability coefficient. . 610. Cronbach Alpha. Development and Training: comprises 5 statements from 12 to 16. It reflects the significance of workforce training, its evaluation and needs of its efficacy. The scale indicated reliability coefficient: .922; Cronbach Alpha. 4. Discussion and Finding: Table 1 Fundamental components element structure of HRM practices: Planning Factor leading HR department is a critical component of the firms strategic planning system .852 The implementation and formulation of HR functions are in line with the general organizational strategy .886 The HRM operation is offered a significant responsibility in the firm .817 The HR department has an overt statement of its goals and mission. .860 Recruitment Job applicants in the organization conduct a formal exams before they are hired .782 The job applicants undertake structured interview .838 When there is a vacancy for the position of management, the firm usually does fill the position with the inside staff as oppose to outside recruitment. .651 Training The organization confers a great deal of significance on training .689 Managers evaluate the staff training needs . 799 The firm conducts cost benefit analysis to evaluate the efficacy of the training initiatives .672 Table 1: shows the means and inter-correlations among the determinant reflecting the various Human Resource functions and practices, including; recruitment and selection, planning and development and training. It is apparent that the workforce is supportive that these functions are well developed in the various investment units of the organization. This outcome may be considered as a positive sign that various policies and practices are conveyed throughout the firm and appreciated by various managerial positions. 5. Conclusion: It’s exciting to establish that Human Resource Management practices in the surveyed organizations have a straightforward fundamental rapport to the performance attained by interviewing the various top managements concerning their view of the 9 parameters. This may be observed as an important finding in the strategic Human Resource Management study, particularly in the Saudi Arabian situation where, to my understanding no past study has ever been carried out. This finding is in consistency with the former studies (Huselid 1995, Youndt et al. 2004; Pfeffer, 2005). It takes that these firms need to carry on with the improvement of their human capital to achieve great performance objectives. Therefore, it is imperative to affirm that the Human Resource tasks performs it full responsibility of motivating, attracting, retaining and improvement of the human resources in accordance to the group and personal needs, that may assist the organization to use efficiently its workforce to sustain and improve a competitive edge, as individuals remain the distinctive matchless resource in the organizations. In spite of the projected positive outcomes derived from the data analysis, the challenge of this project could be either empirical as well as theoretical. Hypothetically, although in a number of research the preference of Human Resource plan, the resource founded view purport that organizations will decide the desirable investment plans in accordance to the available HR instruments. Thus, the link between the HRM plans and the investment is vibrant and should be reviewed regularly. Practically, the causality impact between performance and HR practices is not obvious since big corporate with great performance normally implement HR practices of long-standing perspective. References: Armstrong, M. and Baron, A. (2002) Strategic HRM: the route to improved business performance, CIPD, London. Armstrong, M. and Murlis, H. (2007) Reward Management (5th edition). London: Kogan Arthur, J.B. (1994) Effects of human resource systems on manufacturing performance and turnover, Academy of Management Journal, 37(7), 670-687. Becker, B., & Huselid, M. (2006) Strategic human resource management: where do we go from here? Journal of Management , 32, 898-925. Khatri, N. (2000) Managing human resource for competitive advantage: a study of companies in Singapore, International Journal of human Resource Management, 11 (2), 336-365. Price, A. (2004) Human Resource Management in a Business Context. London, Thomson Learning. Sing, K. (2003) Strategic HR orientation and firm performance in India, International Journal of Human Resource Management, 14(4), 530-543. Sisson, K. (1990) Introducing the human resource management journal, Human Resource Management Journal, 1(1), 1-11. Read More