Human Resources Management practices is a form of system in which a set
of but interrelated activities, functions and processes are directed at
attracting, developing and maintaining or disposing firms’ human
resources for. Appelbaum (2001), captures HRM practices as being
basically concerned with the management of people within the internal
environment of organisations, comprising the activities, policies, and
practices involved in planning, obtaining, developing, utilising,
evaluating, maintaining, and retaining the appropriate numbers and skill
mix of employees to achieve the organisation’s objectives. Ahmed &
Schroeder (2003), affirmed that human resources are considered the most
important assets of an organisation, but very few organisations are able
to fully harness its potential.
Employee performance in an organisation context is usually defined as the extent to which an organisation’s member contributes to achieving the goal of the organisation. Employees are primary source of competitive advantage in service oriented organization (Pfeffer,2004). Employee performance is originally what employee does or does not do. Sari (2009), training and development seen as one of the key practices of HRM and it refers to the programs designed to teach the employees about the company specifics, educate them on the general rules of an organisation, to provide them technical knowledge which is considered important to complete the job tasks effectively and to eradicate the probable imperfections at work. Meanwhile,
Rajput (2011) considers motivation as another component of HRM practice and defines it as “individual desire to demonstrate the behavior and reflect willingness to expand effortsâ€. Similarly, Remuneration/ Reward has been found to play motivational role and include but not limited to pay strategies such as performance related pay, production based pay, skill based pay, knowledge based pay and base pay Brown (2001). Performance appraisal as HRM practice in the words of Shahzad et al. (2008) represents “a formalised process for monitoring workers and is intended to be a management tool to improve the performance as well as productivity of workersâ€.Internal communication on the other hand as defined by Salas. (2008) isthe “process through which knowledge and information is shared between team members†and this is also seen as a key HRM practice.
The quality of human resources in an organisation depends on the success in recruiting process largely. the employee selection process, cannot finding sufficient number of candidates, who have competence with the job, may lead not to fill some empty jobs and recruitment of noncompeting employees in the context of the job. It will result with some negative events such as increase in efficiency as well as increase in wage costs, labour force transfer, job accidents, decrease in motivation and thus in job satisfaction, increase in supervision costs of the business that the employee recruited does not bear the qualities of the job in full. If the qualities of the employee. If the candidate's features is not meeting with the qualifications that employees is looking for, then in this situation, it is said to be made wrong employee choice.
Directly related to Human Resources planning is selection and recruitment of right people from internal or external sources. This obviously is another critical issue for HRM as it is directly related to cost and overall performance of the organisation. Chowdhury (2002) emphasizes the importance of a talented workforce as “in an era of competition the growth of any organisation is proportional to the growth of its talent.â€
As important as selection and recruitment is to retain good employees and to encourage them to give of their best. Therefore consistent reward systems are interrelated to objective, defined and consistent performance appraisal systems. Taylor (2009) states that four points are important to make the employee “fall in love†with the organisation: Reward fairly in line with market place, treat well: i.e. focus in recognition of every employee’s contribution, train and improve skills and develop talented people. Human Resources planning in other words, manpower planning is one of the importantfunctions of any organization. Savaş (2006) the objectives of human resources planning are:
1. To make the human resources work more effectively and efficiently
2. To highlight the career development of the employees as well as cover their needs and improve their work condition to make them work highly motivated,
3. To determine the salary norms, to make job appraisals objectively and the wages accordingly,
4. To control the manpower costs which have an important effect on profitability
5. To determine the manpower required according to the development plans of the organisation,
6. To relate manpower supply and organisations manpower demand.