Chapter 1: Introduction

1.1 Background

According to Becker and Husield (1998) human resource is one of the sources of competitive
advantage for any business. Values, attitudes, opinion and behavior which form these resources,
have impact on employee performance. The current paper investigates if HR Practices are good
for employees and how does it affect them. The Human Resources field evolved first in 18th
century Europe from a simple idea by Robert Owen and Charles Babbage during the industrial
revolution. These men knew that people were crucial to the success of an organization. They
expressed that the wellbeing of employees led to perfect work. Without healthy workers, the
organization would not survive. HR later emerged as a specific field in the early 20th century,
influenced by Frederick Winslow Taylor (1856-1915). Taylor explored what he termed
“scientific management” others later referred to "Taylorism", striving to improve economic
efficiency in manufacturing jobs. He eventually keyed in on one of the principal inputs into the
manufacturing process—labor—sparking inquiry into workforce productivity.
Human Resources Management (HRM) is the management of human resources. It is a function
in organizations designed to maximize employee performance in service of an employer’s
strategic objectives. HR is primarily concerned with the management of people within
organizations, focusing on policies and on systems. HR departments and units in organizations
typically undertake a number of activities, including employee benefits design, employee
recruitment, “training and development", performance appraisal, and rewarding (e.g.,
managing pay and benefit systems). HR also concerns itself with organizational change and
industrial relations, that is, the balancing of organizational practices with requirements arising
from collective bargaining and from governmental laws.
A review of the literature demonstrates five common practices that have been consistently
associated with innovation, encompassing performance appraisal, career management, reward
system, training, and recruitment (Gupta & Singhal, 1993; Jiménez-Jiménez & Sanz-Valle, 2005;
Kydd & Oppenheim, 1990; Laursen & Foss, 2003; Shipton, Fay, West, Patterson & Birdi,
2005).
According to the theory and practice of management, the career planning process focuses
particularly on individual skills, abilities, needs or aspirations. Given all this, the individual will
create a basic information necessary to ensure preparedness for a possible promotion. Individual
career planning (Zlate, 2004) can be defined as all actions of self-assessment, exploration of
opportunities, establishing goals etc., designed to help the individual to make informed choices
and changes about career. It is a complex action that requires systematic and careful thinking in
formulating short and long term objectives.
Career planning is based, therefore, on the evaluation of individual skills, interests and
Motivation, on the analysis of organizational opportunities, setting goals for their careers and
develop a strategy to achieve those goals. Individual career planning ((Zlate, 2004)) can browse
through five steps:
1. Self-assessment is the collection of information about yourself (values, interests, and skills),
continuous assessment and reporting to others;
2. Exploring opportunities involves gathering information about existing opportunities within but
also outside organizations (training and other development methods);
3. Making decisions and setting goals on short and long term for training requirements, change
of job / department etc.
4. Planning consists of determining ways and means of achieving goals, ordering their actions to
achieve them, considering its consequences, setting deadlines and resource requirements
5. Pursuit of achievement goals, action by the individual accounts for his successes and failures
and make decisions to retain or change career course.
Employees who are the most efficient are like to be they are motivate to perform (medina 2002)
this relationship mean that rewards and employee performance is expecting theory which
means that employee are most to be motivated performance is more performance to receive
the rewards and bonus. The rewards may be cash, recognition both to be acceptable that to
achieve the forgets they are performance is well suesi (2002) rewards is the key motive to
increase the employee performance to expected well. Give the monthly rewards also increase the
performance Osterloh and Frey (2012).

1.3 Problem Statement

The major dilemma is lack of strategies, future direction and lack of career planning. Employees
has no opportunities to get financial support and mostly emplyees do not go ahead. It is big
matter in organization for all employees.
Research Question

What is Impact of Human Resource Management Practices on Employee’s Performance?

How is the e impact of career planning on employees’ performance?
How career planning is implemented in the organization?
How compensation and career planning are effected on employee’s performance?
 Chapter 2 Literature Review

Human resource is considered lifeblood for any organization because it keeps them alive and
helps to flourish. According to Becker and Husield (1998) human resource is one of the sources
of competitive advantage for any business. Values, attitudes, opinion and behavior which form
these resources, have impact on employee performance. The current paper investigates if HR
Practices are good for employees and how does it affect them.

An important aspect of career planning is to establish the extent to which the two parties
(individuals and organizations) are responsible in this process. On one hand, the individual is
responsible for its development along the stages of his life and, secondly, the organization
involved in planning and development of career helps to improve the organizational environment
and enhance employee satisfaction at work.
The rewards may be cash, recognition both to be acceptable that to achieve the forgets they are
performance is well suesi (2002) rewards is the key motive to increase the employee
performance to expected well. Give the monthly rewards also increase the performance Osterloh
and Frey (2012). Employees are extremely motivated to monthly rewards. The Goal is to satisfy
the social exchange process they contribute the efforts Kanfell (1990). Entiwistal (1987) is of
the view that 96 employee perform feel them. Organizational rewards result motivated employee.
Career planning is the deliberate process through which someone becomes aware of his or her
personal skills, interests, knowledge, motivations, and other characteristics; acquires information
about opportunities and choices; identifies career-related goals; and establishes action plans to
attain specific goals (Dessler, 2008). A well-functioning career planning system may encourage
employees to take more responsibility for their own development, including the development of
the skills viewed as critical in the company (Doyle, 1997). A well-planned career development
system along with internal advancement opportunities based on merit, results in high motivation
among employees, which has an impact on firm performance (Milkovich & Boudreau, 1998).
The career planning system contribute to increased employees professional satisfaction because
it helps them to identify and take positions consistent with their objectives and plans. From the
perspective of the company, career planning system reduces the needed time to fill the
vacancies, help succession planning (preparing employees for filling positions that became
vacant following staff turnover or retirement),identify employees with management potential
and ensure to all employees the opportunity to identify career goals and develop plans to
achieve them. Some other views that recognition in pleasanter the organization favorable works
environment motivated the employee Freedman (1978) as cited in Rizwan and Ali
(2010).Employee are the important part of any organization increasing the performance they can
be motivated through financial and non-financial benefits they can designing that you can says
that composition is reward which is receiving by the employee to show their performance.
Employee concentrated pay or wages and similar to non-monetary exchange for the employee
performance(Holt,1993).Good organization are maintain to design and enable the organizations
to attract the highly skilled and qualified employee retain and motivation towards objective and
goals achieve and most employee getting is pay (Decenzo and Robbins,1999). If the employee
free that they have not getting good salary they cooking for better employee dissatisfaction
with the compensation towards goal attainment towards goals done to be lower .Dissatisfied
employee increasing the turnover, Absents am and poor metal health (Welthel and
Davis,1996).The main objective of compensation is that employee attracted to work and
motivated good job for employee Davis(1996). Career planning is process of setting career goals
and identifies the ways to attain them. Career planning is a process of planning individual’s life
work.

Career planning is a tool used to motivate employees to work for the development of the
organization (Wright and Snell, 1998). The career planning focused on motivating the employees
to achieve a desired match between personal goals and organizational goals. A process of
developing human resources to increase organizational performance is referred as career
planning (Leibowitz et al., 1986). Career development process is useful in identifying
employee’s skills and experience and assigning them tasks accordingly. Individuals prefer to join
those organizations where they get enough opportunities to pursue their career goals and exploit
their potential fully (Gardener et al., 2011).
Career planning serves as a tool to motivate employees to work effectively and efficiently in
order to achieve the goals of the organization. Career planning is a deliberate process of
providing opportunities for successful development (Snell, 1992). The kind of compensation that
will motivate employee to give their best to influence performance positively will depend on
how much it addresses their need for status, security, and their survival need as postulated by
Maslow (1943, 1954) in his hierarchy of needs. Beer et al. (1984) and Baron (1983) have stated
that motivation is a set of processes concerned with the force that energizes behavior and directs
it towards attaining some goal. Kreitner and Kinicki (1992) also postulated that motivation
represents those psychological processes that cause the arousal, direction and repeated
production of voluntary actions that are goal directed.

For an organization to be able to effectively manage compensation to have a positive

influence on the performance of its employees, it must understand the various aspects of
compensation as the driving force that motivates the employees and direct their behavior
towards achieving the organizational objectives .
According to Maslow’s hierarchy of needs (1943, 1954) people in achieving organizational
objectives are motivated to do so by trying to achieve certain individual needs. These needs are
what are spelt out in the 5 level hierarchy of need he postulated in the 5 staged model which is
well known in the field today. It therefore beholds on the management of an organization to take
into consideration the various needs or need levels of its employees in designing compensation
packages that will motivate them to influence performance positively.

Employee Performance Management is a process for establishing a shared workforce

understanding about what is to be achieved at an organization level. It is about aligning the
organizational objectives with the employees’ agreed measures, skills, competency requirements,
development plans and the delivery of results. The job related activities expected of a worker and
how well those activities were executed. Many business personnel directors assess the employee
performance of each staff member on an annual or quarterly basis in order to help them identify
suggested areas for improvement.

Chapter 3: Research Methodology

In order to accomplish the aim of the study based on the information which was obtained from
the background of the study, questionnaire was designed with structured questions and given to
different employees of public sectors. The aim of the research was discussed with the supervisor
before the finalizing of the questions.
3.2 Population of The Study
The all members is known as population and the population of this study is public sectors
organizations.

3.3 Sampling Techniques

The sampling techniques will be used for data collection. Fifteen questions was designed and
given to the selected population area of experts and managers. The quantitative data based on
questions which will be based on experience of the respondents.
3.4 Sampling Size
In the present study sample size is included large. The selecting sample size large will be carried
out for clear findings.
3.5 Research Tools/Instrument
In the present study, the researchers can collect information for desired objectives of the study
through questionnaire survey. The respondents will be provided their feedback that will be
helpful for researcher to turn out major factors of different public departments.
3.6 Data Collection
The data will be collected through questionnaire survey as per discussions with the supervisor.
The data sheet will be compiled through statistical package social science software (SPSS).
7 Data Analysis
The data will be analyzed on the respondent’s response in the questionnaire. The data will be
collected and managed in order to analyze on SPSS.

References

1. Aycan, Z., Kanungo, R., Mendonca, M., Yu, K., Deller, J., Stahl, G., Kurshid, A. (2000).
Impact of culture on human resources management practices: A 10‐country comparison.
Applied Psychology, 49(1), 192-221.
2. Ahmad, S., Schroeder, R.G. (2003). The impact of human resource management practices on
operational performance: recognizing country and industry differences. Journal of operations
Management, 21(1), 19-43.
3. Arthur, J.B. (1994). Effects of human resource systems on manufacturing performance and
turnover. Academy of Management journal, 37(3), 670-687.
4. Armstrong, M., (2006). A Handbook of Human Resource Management Practice (10th edition),
London & Philadelphia, Kogan Page Ltd.
5. Boselie, P., Dietz, G., Boon, C. (2005). Commonalities and contradictions in HRM and
performance research. Human Resource Management Journal, 15(3), 67-94.
6. Brown, P.B. (2005). The evolving role of Strategic Management Development, Journal of
Management Development, 24, 209–222.
7. Brown, M.P., Sturman, M.C., Simmering, M.J. (2003). Compensation policy and
organizational performance: The efficiency, operational, and financial implications of pay levels
and pay structure. Academy of Management Journal, 46(6), 752-762.
8. Collins, C. J., Clark, K.D. (2003). Strategic human resource practices, top management team
social networks, and firm performance: The role of human resource practices in creating
organizational competitive advantage. Academy of management Journal, 46(6), 740-751.
9. Cook, C.W., Hunsaker, P.L. (2001). Management and organizational behavior.
McGrawHill/Irwin.
10. Delery, J.E., Doty, D.H. (1996). Modes of theorizing in strategic human resource
management: Tests of universalistic, contingency, and configurational performance predictions.
Academy of management Journal, 39(4), 802-835.
11. Dessler, G. (2008). Human Resource Management (11th edition), New Delhi, Prentice Hall,
of India Private Ltd.
12. Dobson, P.C., Tosh, M. (1998). Creating a learning organization: Training and development
in British Steel's universal beam mill. Total Quality Management, 9(4-5), 66-70.
13. Frye, M.B. (2004). Equity‐based compensation for employees: firm performance and
determinants. Journal of Financial Research.