HRM Practices and Employee Satisfaction

The provided report is a project on HRM practices and their effects on employee satisfaction. It concludes that HRM plays a significant role in job satisfaction, regardless of employees' activities. The report discusses various HRM practices such as human resource management, employees' performance, organizational commitment, and their impact on employees' satisfaction and productivity. It also recommends effective HRM practices like goal transparency.

Case study on HRM
organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Ways by which Signmart recruits and inducts new staff.............................................................1
CONCLUSION................................................................................................................................3

INTRODUCTION
HRM or human resource management is a concept of managing all the employees of an
organisation. The main aim of this project report is to build an understanding about nature and
practice of HRM across Australia and globally. In this project report, an organisation is selected
that is Signmart Australia. This report is classified into two parts, first section is related with
ways by which employees are recruited in an organisation. In this section, staff performance and
management of human resources is discussed. In the second section of this project report,
literature support of various articles has been taken in order to suggest ways that how an
organisation can improve their performance (Bakker and Demerouti, 2014).
MAIN BODY
Ways by which Signmart recruits and inducts new staff
Recruitment is a process of appointing employees and providing them relevant training in
order to ensure their efficiency and productivity. The process of recruitment is a wider concept
than selection. As it does not only involves selecting suitable candidates but also involves
providing them training and education. There are three methods of recruitment named as direct
method, indirect method and third party methods. An explanation about all these methods are
mentioned below:
Direct method – Under this method, employer of Signmart sent their potential human resource
executives to educational and training institutes in order to interview their students. This method
is considered as most useful method of recruitment as it allows an organisation to acquire fresh
and talented candidates which has little and no experience but has ample of theoretical
knowledge. This method enables employers to directly contact and interview candidates due to
which they can ascertain which of the qualifications of candidate and their skills and make an
informative decision about which candidate should be selected (Bratton and Gold, 2017).
Indirect method – Indirect method is considered as most cost effective method of recruitment as
it does not involve any direct contact between employer and candidates. Under this method,
advertisements in newspapers, journals, radio and televisions are sent in order to attract
candidates. This method is used by Signmart when they do not find any suitable candidates to
promote to higher posts. Another reason for selecting this method is that when management of
this company wants to appoint candidates of vast territory. When organisation is required to fill
1

any scientific, professional or technical posts, this method is considered as most effective as it
helps in approaching vast number of candidates (Brewster and Hegewisch, 2017).
Third party methods – Under this method, candidates are not personally interviewed.
Instead of this, a contractor is engaged to which appoints employees on companies’ behalf.
Signmart company uses this method to recruit labours. Examples of third party methods can be
contract labour, employment agencies and management consultants. Main aim behind selecting
this method by Signmart company is to reduce the stress of selecting and provide training to
employees.
By these methods which are mentioned above, Signmart company recruits and inducts
their new staff. Apart from recruitment, human resource management also includes measuring
performance of employees and identifying high performing employees. Managing all the affairs
about employees is a crucial task to perform. In order to manage all these issues, practices which
should be followed by the company are mentioned below:
Conflict resolution – Under this technique, Signmart resolves all the issues of their
employees by adopting the approach of conflict resolution. In this approach, all the problems of
employees are listened and ways are identified which helps in resolving all the issues.
Clear direction – In this method, a clear direction is provided to all employees in order to bring
the clear of objectivity which states what is required to be done by which employee. This
technique helps in enhancing performance of an organisation and provides direction to
employees (Chelladurai and Kerwin, 2017).
Consistent – This technique is related with acquiring trust of employees in which
consistency is obtained in the operations of an organisation. For example: Employees of
Signmart are consistently reviewed in order to measure their performance. With the help of this
method, highest performing employees are ascertained and also problematic areas are identified
due to which productivity of an organisation gets affected.
Rewards – This is considered as most suitable technique of employee handling but at the
same time this method has high cost involvement. Under this method, employees with high
performance are rewarded in order to encourage and motivate other employees to gain high
performance. For example: In Signmart, rewards such as bonus and incentives are provided to
salesman of the month in order to motivate other employees to perform the same.
2

Transparency – This method helps in enhancing performance and attaining satisfaction of
employees. Transparency is a term which is used for firms which provides transparency in plans,
salaries for the employees by which trust of employees can be gained and their high level of
satisfaction can be acquired. For example; In Signmart, all the employees are aware of salaries of
their colleagues due to which conflicts reduces and performance rate increases.
Focus on goal clarity – Under this method, employer provides goal clarity to their
employees in order to improve their performance. Goals are referred to organisational objectives
on which employers focuses in order to ensure that goals can be ascertained.
Performance of employees can be enhanced by providing them a safe environment. It is
important to provide a safe environment to employees. Organisations are legally responsible for
establishing and maintaining a working environment where employees are able to work safely,
without risk to their physical and psychological health and welfare. Likewise, employees are
obliged to: comply with any legislative requirements and organisational policies and procedures;
work in accordance with agreed safe work practices; and use all means provided to protect their
health and safety. Employer and employee health and safety responsibilities are often prescribed
in legislation and supported by regulations, codes of practice and standards. These provide a
foundation for guidelines on workplace safety, compensation and rehabilitation (Daley, 2012).
Practices of HRM
According to the article is by Saira hassan in January 2016, the HRM practices boost the
employees will to perform better in order to increase the performance of organisation. The
practices used in this study are described as follows:
 Compensation- It is the values which are provided to employees for their work. It can be
used to hire skilled workers, reward the employees or encouraging company's loyalty.
 Career planning- It is the process of planning of work for an individual. It is a tool used
for motivating employees to perform better for the development of company.
 Training- It is the process of attaining necessary skills in order to achieve company's
objectives efficiently.
There is a significant effect of HRM practices on employee’s performance of Signmart.
Performance of an employee is linked with performance of a company. HRM practices is
considered as a important factor that directly influence the employee’s performance. Signmart
should hire skilled and capable employees to become successful. Actual HR practices are applied
3

by line managers on a daily basis that positively impact employee’s perception about HRM
practices applied to them. Skills of the managers are directly proportional to success and failures
of the company.
According to the article by Mercy Gacheri Munjuri in 2011, It has been observed that by
Recruiting high potential employees, It is not necessary that they will perform better. Employees
who don't know what to do or how to do can't perform better even if they wanted to. Therefore
the company should provide them necessary training and equip them with required skills so that
they know what to do and how to do. Training is a essential and expensive task, so Signmart
should ensure that the employees should enhance productivity by the given knowledge.
Company should use performance based pay for those employees who meets the required targets.
Taking suggestions from employees makes them feel like they are important part of the company
and gives them a sense of commitment in doing the task. The practices used for this are :
 Training- It is the process of improving skills of employees for doing work efficiently
and effectively which helps the individuals to get the required skills for execution of a
task.
 Performance related pay- Pay increases depend upon the performance of employees in
acquiring the desired target in predetermined time. High level of performance is rewarded
by money or incentives which helps in growth of interests of employees in order to
generate good results.
 Employee empowerment- it increases job involvement, job enrichment, participation in
suggestions policies etc. The main force of empowerment is through having greater
liberty of ‘how’ jobs are done, With huge potential in order to improve productivity.
The training opportunities are mainly provided to middle-level employees. However many
employees won't receive the rewards after achieving their targets. Also due to contract based
work, Job security is not guaranteed. Employees who received rewards feels that they stay
motivated to improve their performance due to these rewards.
According to the article by AA Jouda in 2016, It has been observed that HRM practices
are necessary for perfect integration for success in a business. Challenges and trends for such
practices has been revolutionised over the years. These practices are required to implement
successful HR policies to achieve the organisational goals. Such practices are stated below:
4

 Recruitment, Selection and Employee Performance- It is the process of finding and
appointing the right skilled candidates whose skills are required in the company.
 Training and Development with Employee Performance- It is a essential HRM practice to
get the maximum from their employees by providing adequate skills that are required for
successful execution of task.
 Compensation, Rewards, Incentives and Employee Performance- These are given based
on the performance of employees who achieved their targets in a predetermined time.
 HRM Practices described above are positively related to performance of employees in the
Signmart. These practices are the necessary factors to predict performance of employee’s.
Organisations retains the talented, well trained and enthusiastic employees who are
committed to their work.
According to the article of NA AlShaikhly in 2017, it has been concluded that human
resource management (HRM) practices had formally started with historic period, the very fact is
that the origins of HRM lies deep inside the past. Just as the employees who shared the tasks that
ought to be wiped out trendy organizations, humans in ancient societies additionally, divided
work among themselves. Therefore it are often same that division of labor has been practiced
since prehistoric times. Tasks were allotted in line with skills like the flexibility to search out
food or plants, track animals or cook however the most important contribution to the event of the
HRM systems is provided by historic period within the 1800’s. The practices includes:
 Planning and recruitment- It is the link between strategy and role of HR department. It
allows the HR department to recruit train the employees in order to improve their
efficiency.
 Compensation- is often called variable pay and incentives pay which is given on
accomplishing a specific task in a fixed period of time. Incentives are paid for better
performance in a task in order to motivate employees.
 Training programs- This process is defined as process through which behaviour and
feelings of employees are changed in order to improve efficiency of performance.
This article revealed that the effect of HRM practices on satisfaction of employees is either
separately or collectively. HRM practices plays a important role in job satisfaction of employees
regardless of their activities. These factors together can lead to better productivity and
performance of employees.
5

According to the article of EMA Tabouli in 2016, it has been concluded that Organisation
having long term goal usually re-examine their human resource. The effects of human resource
practices on organizational performance and employees’ attitudes is a interesting research area
especially in the context of developed countries. Following practices are used for this:
 Human resource management- Proper use of human resources is a major problem for a
company. Efficient human resource distribution improves costs and performance of
employees.
 Employees performances- Employees performance is directly associated to performance
of organisation. Motivated employees tends to work extra so that they get incentives.
 Organisational commitment- It is defined as the tendency of employees to take part in
organisational activities . It is the fear of loosing the jobs if their performance is not good.
CONCLUSION
From the above project report, it has been concluded that human resource management is a
concept which manages all the human resource of a company. Signmart is an organization,
which used to identify ways by which an organization recruits their employees. Several
recommendations are provided which are identified by following several literature reviews. This
project report is has identified effective hrm practices such as direct of goal and transparency
from which it is concluded that every practice or technique of HRM helps in attining full
satisfaction of employees and lead towards effective organization.
6

REFERENCES
Books and Journals
Bakker, A. B. and Demerouti, E., 2014. Job demands–resources theory. Wellbeing: A complete
reference guide. pp.1-28.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Kim, S., 2012. The impact of human resource management on state government IT employee
turnover intentions. Public Personnel Management. 41(2). pp.257-279.
Marchington, M., and et. al., 2016. Human resource management at work. Kogan Page
Publishers.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
7