Association of HR Practices with Employee Performance

The objective of the report is to analyse the association of human resource (HR) practices with employee performance though comparing the HR practices followed in two selected organizations like Westpac Bank and NAB Bank in Australia.

Running head: ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
Analysing Association of HR Practices with Employee Performance
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1ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
Executive Summary
The objective of the report is to analyse the association of human resource (HR) practices with
employee performance though comparing the HR practices followed in two selected
organizations like Westpac Bank and NAB Bank in Australia. The report revealed that the
factors related with HRM practices can have a significant impact on the employee performance
of the organisations, which is evidenced by certain existing theories and models on employee
performance. As the banking institution believes in attracting, training and motivating all the
employees, it has encouraged the workforce to contribute to positive annual performance of the
NAB. Moreover, implementing effective talent management HR practices ate also
recommended to Westpac in dealing with issues related with its high employee turnover rate and
poor performance of employees in attaining organisational goals.

2ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Theories and Models on Employee Performance........................................................................3
Impact of HR Practices on Employee Performance....................................................................6
Factors of HR Practices Impacting Employee Performance.......................................................7
Part B...............................................................................................................................................7
Level of Employee Performance in Each Organisations.............................................................7
HR Practices Used by Organizations...........................................................................................9
Comparison of HR Practices that Each Organization Uses.......................................................10
Analysing Effects of HR Practices on Employee Performance in Each Organization..............12
Part C.............................................................................................................................................13
Recommendations for Dealing with Poor Employee Performance...........................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
Introduction
Human resource practices have a significant role in enhancing employee performance for
ensuring successful attainment of organizational goals. Westpac Banking Corporation is an
established Australian financial service provider that offers a wide range of consumer, business
and banking and wealth management services. NAB (National Australia Bank) is positioned as
an established business bank in Australia that offers personal and business banking services
(Nab.com.au. 2019). The objective of the report is to analyse the association of human resource
(HR) practices with employee performance though comparing the HR practices followed in two
selected organizations like Westpac Bank and NAB Bank in Australia.
Part A
Theories and Models on Employee Performance
The factors related with HRM practices can have a significant impact on the employee
performance of the organisations, which is evidenced by certain existing theories and models on
employee performance. Considering the same, Campbells Determinants of Job Performance
Model and Maslow Hierarchy of Needs Theory has been explained with reference to case
organisations like Westpac Bank and NAB Bank in Australia (Albrech et al. 2015).
Campbell’s Determinants of Job Performance Model
The job performance determinants based on the model is analysed for Westpac and NAB
Australia for comparing the ways in which various job determinants impacts employee
performance in both the organisations.

4ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
Figure 1: Campbell’s Determinants of Job Performance Model
(Source: Bakotić 2016)
 Declarative Knowledge: In Westpac Bank existence of declarative knowledge regarding
the facts and things along with attaining a detailed understanding on the provided task
requirements is observed to positively impact employee performance. On the other hand,
in NAB Bank attaining declarative knowledge associated with facts, principles, goals and
self knowledge aligned with organizational tasks are observed to improve employee
performance.
 Procedural Knowledge and Skills: In both the Westpac Bank and NAB Bank it is
ensued by HR practices that employees attain necessary knowledge regarding job tasks
assigned to them. This is ensured by these organizations through analysing existence of
cognitive, psychomotor, physical, self-management and interpersonal skills that is
deemed to improve employee performance (Cohen 2017).
 Motivation: From application of motivational elements indicated by this theory in
Westpac and NAB Bank it has been gathered that these organisations provide the

5ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
employees with choice to perform along with encouraging level and persistence of effort
for motivating employees towards attaining common organisational goals.
Maslow Hierarchy of Needs Theory
This theory indicates certain factors related with five basic needs of employees that
enhances employee performance (Gabriel et al. 2016). Application of this theory facilitates in
analysing the ways in which such factors incorporated in the HR practices implemented in
Westpac and NAB bank for enhancing employee performance.
Figure 2: Maslow Hierarchy of Needs Theory
(Source: Hassan 2016)
 Psychological: As per this factor in the theory it is observed that employees in Westpac
and NAB Banks attain their basic psychological needs for survival that motivates them to

6ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
perform better in the organisations. The bank provides them with good compensation
structure in addressing their basis needs such as food, clothing and shelter (Heffernan and
Dundon 2016).
 Safety: Westpac and NAB Bank ensues that it offers necessary safety and security needs
of their employees in encouraging their better performance in workplace that includes job
security, physical security and old age provisions.
 Belonging: Westpac and NAB Bank has developed effective HR practices that such as
maintaining communication among employees and the company regarding grievances
faced by them and have also maintained employee recognition programs to encourage
them in performing better in the workplace (Huang et al. 2016).
 Esteem: Addressing egoistic needs is deemed to enhance employee performance in
workplace. Considering same, Westpac and NAB Bank has developed effective
performance appraisal policies, non-financial rewards and appreciation in motivating
exceptional employee performance.
 Self Actualization: Westpac and NAB Bank as developed effective HR practices related
with carer development programs in the workplace that enhances their potentialities
along with developing skills of contiguous development and creativity for ensuring better
performance (Latorre et al. 2016).
Impact of HR Practices on Employee Performance
HR practices implemented in the banking organizations are deemed to enhance employee
performance through improving their productivity. Certain HR practices such as encouraging
high performance work practices, boosting compensation and deliverance, employee training and
participation and better knowledge management programs can improve employee motivation

7ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
along with retaining them (Liu et al. 2017). Moreover, HR practices of training and development
along with recruiting skilled and talented employees is also considered to positively influence
performance of employees in the banking organisations. This is for the reason that such HR
practices results in improvement and retention of exceptionally skilled workforce that can bring
in higher productivity, innovation and proper fit the corporate culture ensuring exceptional
performance.
Factors of HR Practices Impacting Employee Performance
Certain major factors that positively impacts employee performance in the banking sector
includes salary or rewards, career development opportunity, leadership style, training and
development, leadership style, employee selection, leave facilities flexible working hours, family
friendly policies along with organization health safety programs. It is also evidenced by
Maheshwari and Vohra (2015) that these identified HR practices and system develops conditions
to encourage employees in attaining organizational goals. Moreover, these factors related with
major HR practices facilitates developing HR policies encouraging in correcting skills sets,
investing in employee development along with employing suitable talent in the organizations.
Part B
Level of Employee Performance in Each Organisations
It is evidenced that there is medium level of employee performance in Westpac Bank as
the banking institution has developed effective HR policies n practices in ensuring maintain ace
of work life balance for employees. Performance of employees in the company is enhanced as it
has implemented several employee engagement strategies along with developing flexible work
arrangements (Marler and Boudreau 2017). However, it has been observed that Westpac Bank is

8ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
facing issues related with increasing employee turnover because of certain identified issues faced
by employees such as workplace flexibility and less career growth opportunities. Considering
same, the financial institution has developed effective HR policies so that the employees perform
flexibly along with offering them autonomy and freedom required for adapting employees within
workplace culture. Moreover, for motivating the employees in the workplace surrounding
Westpac implements several HR practices related with increased pension contribution that can
ensure high employee retainment.
On the other hand, in NAB it is observed that the employees’ level of performance in this
financial institution is high despite of drastic organizational changes taking place in the
organisation (Mostafa, Gould‐Williams and Bottomley 2015). Such exceptional employee
performance has developed the business and has positioned the financial institution as process-
driven and bureaucratic company attaining high success in banking industry. Moreover, NAV
Bank employees are contact kept updated to the changing organizational policies and workplace
activities through implementation of new training programs. The HR practices of the bank also
maintains an effective conflict and performance management systems for employees through
developing cooperative workplace environment, equal division of workload along with
maintaining effective appreciation of professional achievements. Such HR practices have
enhanced workplace performance of employees in the banking organization (Muduli 2015).
Effective reputation management HR practice of NAB Bank has facilitated in maintaining
effective verbal and symbolic communication among the employees that has encouraged them in
contributing enthusiastically towards organisational success.

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HR Practices Used by Organizations
HR practices employed by Westpac Bank and NAB Bank is focussed on the necessary
factors such as salary or rewards, career development opportunity, leadership style, training and
development, leadership style, employee selection, leave facilities flexible working hours, family
friendly policies along with organization health safety programs that can positively influence
employee performance. HR practices that are followed by Westpac Bank facilitates in recruiting
and retaining skilled workforce in the banking institution and sustaining leading position in
Australian banking industry (Nankervis et al. 2016). These HR practices include evidence based
and targeted workforce development strategies such as recruitment, retention and job re-
designing along with introducing training programs in developing new skills and capabilities
among employees. Job re-designing HR practice followed by Westpac Bank is focussed on
encouraging employee workplace skill and career development through restructuring tasks,
duties and responsibilities to make the assigned job more interesting, encouraging and inspiring
for employees.
On the other hand, NAB Bank follows new and improved HR practices in encouraging
employee performance through offering them exceptional opportunities of career growth. The
HR practices that are followed in this banking institution include employment equality policy,
training, recruitment and performance management approaches along with placement and
promotion activities (Nyberg, Pieper and Trevor 2016). The HR practices followed in the
banking inspiriting for encouraging better employee career development in the workplace
encompass competitive compensation structure that motivates the employees to perform at their
best towards attaining organisational goals. The bank also has highly effective task distribution
based HR practice that encourages increased employee participation in improving their

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contributions irrespective of their diverse culture. Such employee involvement schemes followed
by NAB in improving employee performance include joint consultation, suggestion schemes and
quality circles (Saratun 2016).
Comparison of HR Practices that Each Organization Uses
The HR practices followed by Westpac Bank based on certain important human resource
management factors are indicated below:
 Rewards and Compensation: Rewards and recognition HR policies of Westpac includes
improving employment conditions by maintaining 4% fixed salary increase, disablement
insurances. However, the incentive scheme of the bank is not observed to be motivating
for employees (Van De Voorde and Beijer 2015).
 Carer Development Opportunity: Career development programs offered by Westpac
include employee growth through the bank’s career pathways along with offering
assessment and learning resources.
 Training and Development: These programs of Westpac includes financial services
training, mainstream leadership training for women and career development training.
 Leadership Style: The conscious leadership style followed in Westpac is focussed on
organizational culture of being more collaborative and generous spirited
(Westpac.com.au. 2019).
 Employee Selection: Employee selection process in Westpac follows seven steps such as
search, apply and upload, screening application, online testing, interview, reference and
background checks, offering job and before employees start.

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 Leave Facilities: In Westpac there are up to 12 additional leave each year and the
company also allows employee to take 12 weeks paid leave in a year and 1 weeks of
flexible lifestyle leave.
 Flexible Working Hours: The HR practice followed in Westpac is focussed on offing
increased flexibility to employees with their working hours through providing options of
selecting varying start and finish times (Zhong, Wayne and Liden 2016).
 Family Friendly Policies: These HR policies of Westpac include employee family
benefits in the form of childcare assistance and vacation policies.
 OHS (Occupational Health Safety): This HR policy focuses on offering a workplace
environment that can enrich health, safety and wellbeing of employees.
The HR practices followed by Westpac Bank based on certain important human resource
management factors are indicated below:
 Rewards and Compensation: NAB follows quick and easy manner of recognising
performing employees through offering service awards and non-cash benefits like
vehicle, superannuation contributions, car parking and childcare (Zhong, Wayne and
Liden 2016).
 Carer Development Opportunity: Career development programs offered by NAB are
self-assessments, templates for developing personal career snapshots and preparing
Individual Development Plan (IDP).
 Training and Development: Employee training and development programs followed in
NAB are include Individual Development Plan, induction training for new employees and
online training and coaching courses.

12ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
 Leadership Style: People leadership HR practice is followed in NAB where team relies
on leaders those are responsible in keeping employees engaged, challenged, high
performing and motivating.
 Employee Selection: NAB follows 7 step employee selection processes for ensuring
hiring of skilled talent that is application, phone interview, formal interview, assessment,
work reference check, probity checking and offer (Marler and Boudreau 2017).
 Leave Facilities: Several types of leave policies are available such as defense leave,
disaster leave, lifestyle leave, leave of absence, parental leave, pre-natal leave, religious
leave, special leave, sporting activities leave and volunteer leaves.
 Flexible Working Hours: NAB has strict workplace flexibility HR practices such as
flexi desking, shared workplace setting, workplace adjustments and transfer along with
employee relocation support that is devoid of rigid work routines (Marler and Boudreau
2017).
 Family Friendly Policies: This HR practise of NAB includes childcare along with
mothers and wellbeing rooms policies in which the bank gives importance to work/life
balance along with shared room facilities offered to mothers for short term rest or
medication.
 OHS (Occupational Health Safety): Personal wellbeing policies include a range of
tools, services, resources and programs in assisting physical health and mental wellbeing
of employees.
Analysing Effects of HR Practices on Employee Performance in Each Organization
Implementation of the explained HR practices in Westpac has contributed to decrease in
the employee turnover rate of the bank from 20% in 2014 to 25% in 2017 (Marler and Boudreau

13ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
2017). However the existing HR practices of the bank requires to be improved as lack of suitable
induction training is affecting performance of new employees along with improvement n the
financial services offered to consumers. Introducing induction training programs and increasing
employee engagement ensures successful attainment of their assigned jobs.
On the other hand, implementation of constantly developing HR practices in NAB Bank
has attained performance awards in the banking industry of Australia. As the banking institution
believes in attracting, training and motivating all the employees, it has encouraged the workforce
to contribute to positive annual performance of the bank (Albrech et al. 2015). Exceptional
employee benefits offered by NAB Bank have offered an easy way in acknowledging all
employees in the workplace. Moreover, effective employee recognition programs has
encouraged employees to work creatively and in an engaged manner in deriving exceptional
organizational performance that has positioned NAB among the leading responsible and high
performing banks in Australia.
Part C
Recommendations for Dealing with Poor Employee Performance
From analysing the factors related with HR practices and its effectiveness in both the
selected organizations, it has been observed that Westpac Bank is dealing with issues related to
its HR practices that are resulting in poor employee performance in the organization. For
addressing such concerns, certain effective recommendations are provided to the company
below:

14ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
 Westpac must consider implementing innovative recruitment approach in ensuring better
employee experience and positioning the talent acquisition that can further facilitate the
organisation in improving employee performance.
 Implementing effective talent management HR practices ate also recommended to
Westpac in dealing with issues related with its high employee turnover rate and poor
performance of employees in attaining organisational goals. Considering the same, the
bank is recommended to implement “Aggressive Consumer Training Program” for
safeguarding employee wellbeing along with developing skills among them for dealing
with aggressive consumers along with decreasing emotional cost to employees.
Conclusion
The objective of the report was to analyse the association of human resource (HR)
practices with employee performance though comparing the HR practices followed in two
selected organizations like Westpac Bank and NAB Bank in Australia. It was gathered from the
report that Implementation of the explained HR practices in Westpac has contributed to decrease
in the employee turnover rate. However the existing HR practices of the bank requires to be
improved as lack of suitable induction training is affecting performance of new employees along
with improvement in the financial services offered to consumers. On the other hand,
implementation of constantly developing HR practices in NAB Bank has attained performance
awards in the banking industry of Australia. Westpac must consider implementing innovative
recruitment approach in ensuring better employee experience and positioning the talent
acquisition that can further facilitate the organisation in improving employee performance.

15ASSOCIATION OF HR PRACTICES WITH EMPLOYEE PERFORMANCE
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