Human Resources Management and Its Effect on Firm Performance
Chapter One
Objective of the study
The objectives of the study are;
- To explore the relationship between HRM practices and firm performance.
- To identify the HRM practices that are most effective in enhancing firm performance.
- To examine the role of HRM in achieving competitive advantage.
- To investigate the impact of HRM on employee satisfaction, commitment, and productivity.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
INTRODUCTION
The GHRM is relative new concepts for academicians, professionals and many other people who are not well aware about this concept. The GHRM was introduced by Wehrmeyer (1996) in his book, where he define GHRM as “Green HRM is the use of HRM policies to promote the sustainable use of resources within organizations and, more generally promotes the causes of environment sustainability” (Marhatta & Adhikari, 2013). The sustainability and environmental issues are becoming the critical factor of HRM practices, but there is less evidence in the form of literature and academic research. The HR practices must be align to environmental and sustainability issues in order to get competitive edge and achieve environmental sustainability of the organization (Ulrich, Brockbank, and Johnson, 2009). Human resource management practices are one of the main factor in achieving green organizational goals and sustainable performance. The overall HRM practices such as, training, selection, recruitment, compensation are aligned to green practices Cherian and Jacob (2012). The green performance can be achieved by ensuring green process in HRM practices from selection of green employees to compensation of green employees, thus organizational green performance can be delivered (Opatha & Arulrajah, 2014). Scholars in the field of research are focusing on Green HRM and green practices (Berrone & GomezMejia, 2009; Jabbour, Santos, & Nagano,2010; Massoud, Daily, & Bishop, 2008; Renwick, 2008; Stringer, 2009). The decisions and behavior of human resource executives is reflecting the green HRM practices and organizational sustainability performance (green signatures; Jackson, Renwick, Jabbour, & Muller-Camen, 2011). Environmental management system (EMS) is necessary for the organizations to design and develop corporate environmental strategies and to achieve the environmental goals (Haden et al.,2009). Researcher believes that human resource management and practices are very effective tool for developing human capital, which can be transformed into organizational development and sustainable performance and give competitive edge in the industry (Boselie, Paauwe, & Jansen, 2001). Renwick 2008 concluded that HRM plays an important role in achieving organizational environmental objectives by involving employees (Renwick, 2008). In order to implement green HRM, employees need technical and management skills (Daily et al., 2007; Unnikrishnan & Hegde, 2007). Some researcher argue that implementation of green HRM requires the development of new tools and techniques related to environmental management, which enhance organizational environmental and sustainable performance and give competitive edge (Hart, 1997; Lin, Jones, & Hsieh, 2001). The framework of green HRM is added up to HRM practices in recruitment (Grolleau, Mzoughi, &Pekovic, 2012), performance management (Jabbour, Govindan, Teixeira, & Freitas, 2013, green culture in organization (Jabbour.et.al., 2013) training and development (Unnikrishnan & Hegde, 2007).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine Human resources management and it’s effect on firm performance. First bank in Lagos state form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Human resources management and it’s effect on firm performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing Human resources management and it’s effect on firm performance
Summary
This study was on human resources management and it’s effect on firm performance. Four objectives were raised which included: To explore the relationship between HRM practices and firm performance, to identify the HRM practices that are most effective in enhancing firm performance, to examine the role of HRM in achieving competitive advantage and to investigate the impact of HRM on employee satisfaction, commitment, and productivity. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected staff of first bank in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Human resource management plays a crucial role in the success of any organization. It is responsible for managing the workforce and ensuring that they are working towards achieving the company’s goals and objectives. By hiring the right people, providing them with the necessary training and development, and creating a positive work environment, HRM can significantly impact a firm’s performance.
One of the primary ways HRM can affect firm performance is through talent acquisition. By hiring skilled and experienced individuals, HRM can ensure that the company has the right people in the right positions, which can lead to increased productivity and better results. Additionally, HRM can ensure that the company has a diverse workforce, which can bring new perspectives and ideas to the organization.
Training and development programs are another way HRM can impact firm performance. By providing employees with the necessary skills and knowledge, HRM can improve the quality of work and reduce errors, which can lead to increased efficiency and better results. Moreover, investing in employees’ growth and development can increase their job satisfaction and motivation, leading to higher retention rates and a better overall work environment.
Creating a positive work environment is another critical factor that can impact firm performance. HRM can foster a positive culture by promoting work-life balance, offering employee benefits, and creating opportunities for employee engagement and recognition. A positive work environment can lead to higher employee morale, reduced turnover rates, and better collaboration among employees, ultimately resulting in improved firm performance.
Recommendation
Recruitment and Selection: Organizations should adopt effective recruitment and selection processes to attract and retain talented employees. This can involve using pre-employment tests and structured interviews to ensure the right fit between the job and the candidate.
Training and Development: Organizations should invest in employee training and development to enhance their skills and knowledge, which can lead to increased productivity and job satisfaction.
Performance Management: Organizations should establish effective performance management systems that provide regular feedback to employees, set clear performance expectations, and link performance to rewards.
Compensation and Benefits: Organizations should develop competitive compensation and benefits packages to attract and retain talented employees. This can include base salary, bonuses, health insurance, and retirement plans.
Employee Engagement: Organizations should create a positive work environment that fosters employee engagement and commitment. This can involve providing opportunities for employee participation in decision-making, creating a supportive work culture, and recognizing and rewarding employee contributions.
References
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