SIGNIFICANCE OF HRM IN EMPLOYEE PERFORMANCE ENHANCEMENT
Theoretical Background 2
Role of individual HR Functions in Enhancing Performance 3
Human Resource Department in an integral part of an organization that includes the dimension of people in the organization; the human element of the organization which includes all the employees from top to bottom level. The HR department has a role in each and every level of the organization and is interlinked with every process in the organization. The employees of an organization are the epicenter of all functions and are the essential cogs in the machinery of the organization. Regardless of the type, sector or size of the organization, HRM is necessary to ensure that the workforce is committed to work and their combined efforts are toward the achievement of organizational goals (Huselid, 1995).
The management of Human resources stands on four essential pillars that are the functions of the HR department. They are recruitment, training, development and motivation. Huge multinational organizations are also developing a clearer perspective about HRM functions as a key to gain an insight about how important employees are in corporate success. HRM functions help in the cultivation of a clear vision for the company. Tapping the resource of employees can be done by extending focus on the core HR functions. As employees of an organization are its biggest assets, there is a grave requirement of HR initiatives in an organization in order to sustain and enhance employee performance (Ali, 2013). To establish a clear link between HRM functions and how they aid in improving the performance of employees, there is a need to explore the existent literature and a detailed analysis of the functions as to how they contribute in improving the performance of employees in an organization.
The impact of employee performance has a profound impact on the achievement of organizational goals which has been known for a while, but the area of HRM functions being the driving force behind the organizational performance is a comparatively untouched area which has been gaining momentum and focus of researchers and scholars over the world. (Qudah, Osman, Halim, & Al-Shatanawi, 2014) have established a clear link between employee performance and achievement of organizational goals while (Caliskan, 2010) has effectively derived the relationship between improvement in HRM practices and organizational performance.
The progressive HRM functions according to (Delaney & Huselid, 1996) are being utilized by large organizations for effectively achieving organizational goals. Utilization of resource based theories to discover the capacity hidden in the human resource platform according to (Barney, 1991) are also a priority among organizations after getting to know the firm level implications of the theory. (Becker, 1964) has emphasized on effective staffing for regulating the quality of hired employees for creating an effective workforce which complements the research conducted by (Bartel, 1994) who recommends sophisticated training programs as post-recruitment measures necessary for achievement of organizational goals. Motivation and cultivation of performance systems is also a widely proclaimed area focused on achievement of organizational goals and increase performance (Gerhart & Milkovich, 1992).
ROLE OF INDIVIDUAL HR FUNCTIONS IN ENHANCING PERFORMANCE
The four pillars of Human Resource Management have a distinct and unique role in increasing employee performance in both direct and indirect ways. These functions can be individually analyzed to gain an insight about how exactly do they impact employee performance. The functions have a specific order in which they are performed in the organization. The first function is staffing or recruitment in which new employees are recruited in the organization. The second is training in which employees get educated regarding their roles in the organization and how to effectively perform these roles. It is followed by the function of development in which the existing employee pool is put through developmental processes for performance enhancement and the last function is motivation which remains to be an everlasting process in the organization (Becker, 1964).
Staffing is the initial stage of the collective HR process which doesn’t necessarily happen once in the lifespan of the firm but whenever an organization requires more employees to fulfill roles. This process is executed by the HR department and is one of the most essential processes. Ideally, the objective behind the recruitment process is to identify the correct individual/group of individuals for the predefined role and being able to pick the most suitable candidate. If this initial process goes wrong, then it can give a series of after-effects and lead to a wastage of the firm’s time and resources.
If line managers are involved in the recruitment process, an ideal candidate can be selected for the job which can ensure that an active member will join the workforce and contribute to the goals of the organization. The involvement of HR department in the process of hiring helps in increasing the intellect of the workforce and in enhancing the skills of the entire workforce selecting an individual who is perfect for the job. Through the active involvement of the HR department in the recruitment process, good communication can be achieved (Tanveer, Shaukat, Alvi, & Munir, 2011).
The process of training is important in shaping the capabilities of an employee and develops him for his role. Through the organizational process of training, an employee gets a feeling that the organization is making efforts to make them better and they should respond back by achieving their organizational goals. Training is an ideal way to ensure that an employee gains the required skills to do the job efficiently. Training can also be recognized as a continuous process which modifies itself along with the changes in the organizational goals. It is very difficult for an employee to work effectively in an organization without any training. Learning on the job is not always the right approach in many jobs and time invested in training can be worth the effort for the organization considering the factor that training increases the knowledge and performance levels of an employee (Khan & Furqan Ahmed Khan, 2011).
Employee Development activities in an organization are not just limited to training oriented development but they extend to initiatives by an organization like providing a good work environment for the employees or building exercise or relaxation equipment for the physical well-being of employees ensuring their long term health. Development programs also help in self-development a self-directed learning in an employee which leads to a substantial increase in employee performance (Hameed & Waheed, 2011).
Motivation is one of the factors directly affecting employee performance. Being an everlasting and essential process present in every level of the organization, it can be considered one of the hidden driving forces of employee performance and achievement of organizational goals which can be efficiently done by the HR department through functions or training and development of the employees and also through quarterly/monthly meetings. Experts in human capital suggest development of motivational systems in organizations for increasing employee performance. Motivation can be done through verbal encouragement, incentives related to pay and leaves as well as through employee promotion. Incentive systems have a huge contribution in the enhancement of employee performance. Verbal motivation through colleagues, trainers and line managers are a proven factor of sustaining employee morale and increasing their productivity if practiced on a regular basis (Oluyinka Solomon & Zohreh B.T. Mehdi, 2012).
Other than these Specific functions and underlying roles, the HR department also helps in resolving employee issues like motivation issues, personal problems and keeps the employees in a good mental health by motivating which might seem miniscule but is a very essential factor closely linked with the aspect of employee performance. Companywide studies and in MNCs as well as SMEs depict a substantial amount of positive impact on employee performance through measures like incentive systems, motivations systems, post training programs, and through employee development initiatives (Paille, Chen, Boiral, & Jin, 2012).
The analysis of core HR functions and how each of the functions contribute in the increase of employee performance. The HR functions at times seem like an activity that can be done by any other person but these activities performed by HR professionals in the organizations work in a smooth manner as the HR employees maintain a strong link of communication with the employees in an organization. Communication is an aspect not specifically pointed out as an HR function, but it remains to be one of the forces which ensure smooth communication between the employees in an organization. HR department manages the functions of performance measurement and performance appraisal which are some of the critical activities in analyzing the performance of the organization workforce and the HR department has the capability to sustain an organization merely on the basis of its willing and able workforce (with the help of regular training programs) (Becker, 1964). The execution of all the four pillars of the HRM system will ensure that employee performance will be sustained and improved. HRM functions are critical in day to day activities and also long term growth of the overall human capital in the organization.
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