Impact of HRM Practices on Employee Retention: Qatar F&B Industry

This research project investigates the impact of Human Resource Management (HRM) practices on employee retention within Qatar's food and beverage industry. It addresses the significant issue of high employee turnover in the sector and examines how effective HRM policies can improve retention rates. The study reviews existing literature on employee retention, analyzes factors influencing turnover, and explores the relationship between HRM practices and organizational profitability. A quantitative research methodology is employed, including surveys and statistical analysis, to assess the influence of recruitment, training and development, performance appraisal, and reward systems on employee retention. The findings provide insights into the specific HRM practices that can enhance employee retention in Qatar's food and beverage industry, offering recommendations for organizations to improve their HR strategies and reduce turnover.

Title of research project: Exploring the impact of Human Resource Management
practices on employee’s retention: Evidence from the Food and Beverage industry in
the state of Qatar
By
Shirley Shamen Jayakody
(Student Number: J00046970)
A research project submitted for the Program Title: Master of Strategic Human Resources
Management
The Business School
University of Roehampton London
February, 2019

DECLARATION FORM
The work I have submitted is my own effort. I certify that all the material in this
Research project, which is not my own work, has been identified and acknowledged.
No materials are included for which a degree has been previously conferred upon me.
Signed Date
Shirley Shamen Jayakody 28 February 2019
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The Abstract
The employee retention is the significant human resource practices adopted in the organization.
This paper comprises the case study of the food and beverage industry of Qatar. The employee
turnover is stated as the huge issue for the concerning business organizations in Qatar. The
employee retention have major role in the overall employee turnover of the organization. The
organisations in the food and beverage industry of Qatar try to retain the employees by using
suitable and appropriate human resource policies. The main issue identified in the Qatar is
employee retention. The literature review is done in order to overview the human resource
management practices taken place in the food and beverage industry. The employee retention
along the factors and theories are critically analysed. The human resource practices have been
analysed affecting employee turnover and retention in food and beverage industry of Qatar. The
paper also defines the relationship between employee retention and organizational profitability.
A scientific research is used to conduct research on the employee retention. The strengths and
limitations of the descriptive research design is specified in the paper. The study comprised
sample size and sampling technique along with the data collection and techniques. The face
validity, content validity and construct validity is performed as a part of research. The
quantitative is used as a part of data analysis technique. The ethical issues have been also
identified in the data collection. The data analysis and findings comprised reliability statistics to
build reliable measurement. The frequency statistics comprised several factors for the analysis
like gender, experience with the current organization, factors contributing to happy work
environment, aim to achieve at work, goals and reason for leaving organization. This factor
analysis helped in understanding the influences which causes to reduce retention of employees in
the organization. It can help to the industry in improving the factors which reduces the retention.
Accordingly, the industry can make improvement. The significance is sufficient enough in
implementing changes in the organization concerning employee’s retention. The factor analysis
has been also used as a part of the data analysis. It covered KMO and Bartlett’s test. The
hypothesis testing is also used as a part of HR practices and employee retention in the food and
beverage industry in Qatar. The relationship and association between the HR practices and
employee retention have been clearly defined with the help of hypothesis.
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Table of Contents
The Abstract
3
Chapter 1: Introduction, organisational context, and research objectives 8
1.1 Introduction 8
1.2 Background of the study 8
1.3 Problem Statement (Organizational Issue) 8
1.4 Significance of the study 9
1.5 Research Objectives 9
1.6 Research Questions 9
1.7 Rationale for the chosen research question 9
1.8 Research Hypothesis 10
1.9 Research environment and the demographics 10
1.10 Literature Gap 11
1.11 Academic relevance 11
1.12 Summary of Chapter 12
Chapter 2: Critical Literature Review 13
2.1 Introduction 14
2.2 Overview of Human Resource Management practices conducted in the food and beverage
industry in Qatar 14
2.3 Overview of the concepts of Employee retention, the factors and theories related to it 15
2.4 Human Resource practices affecting upon employee turnover, retention in Food & Beverage
Industry in Qatar 17
2.5 Relationship and establishing a balance between employee retention and organizational
profitability 19
2.6 Gaps in Literature 21
2.7 Summary 21
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Chapter 3: Research Methodology
3.0 Introduction 22
3.1 Research Design 22
3.2 Strengths and limitations of descriptive research design 23
3.3 Population of the study 24
3.4 Sample size and Sampling technique 24
3.5 Data collection tools and techniques 25
3.6 Validity and Reliability analysis 26
3.7 Data analysis technique 27
3.8 Ethical issues involved in data collection 28
3.9 Summary of chapter 28
Chapter 4:
4.1 Data Analysis and findings 29
4.2 Frequency statistics 29
4.3 Factor analysis 36
4.4 Hypotheses Testing 36
Chapter 5:
Conclusion & Recommendation
5.1 Introduction 45
5.2 Conclusions 45
5.3 Implications of findings 46
5.4 Contribution to the knowledge 48
5.5 Recommendations to the organization 49
5.6 Limitations and Suggestions for future studies 51
References: 53
Appendix 1
Research Questionnaire 58
Appendix 2
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Research Hypothesis 59
Appendix 3
Approval Letters 60
Appendix 4
Ethical Approval 61
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Acknowledgements
I would like to take this opportunity to thank my husband, family and friends for the support
extended throughout my years of study and the process of researching and writing this thesis.
My current work place for supporting me and providing me time-off to gather my data
collection.
A special thank goes to my thesis advisor Dr. Olawumi Awolusi for encouraging me, steering me
in the right direction to complete the project and also guiding me and providing valuable
comments on this thesis. This accomplishment would not have been possible without all of these
people’s support.
Thank you.
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CHAPTER 1
INTRODUCTION, ORGANISATIONAL CONTEXT, AND RESEARCH OBJECTIVES
1.1 Introduction
The following course of writing provides descriptive information regarding the background of
the study. The problem statement for which that works is provided and the objectives to guide
the research work. The research questions and the significance of the research work are also
provided for extra descriptive and concise work.
1.2 Background of the Study
The fact of employee retention is largely met and satisfied by the kind of Human Resource
practices and policies that are adopted in an organization. In this project, the cases from the food
and beverage industry in Qatar shall be taken into consideration. It can be said that a good human
resource management helps in the accurate amount and kind of employee retention in an
organization as well as in the whole of the food and beverage industry. This amount of employee
retention also affects the overall employee turnover in an organization. Employee turnover can
be stated to be huge issue for any business organization related to this industry in Qatar (Bratton
and Gold, 2017). The organization try their utmost to manage and retain employees by making
use of suitable and effective human resource policies and practices in order to make the
maximum out of the people working in their respective concerns. The issue of low employee
retention has been seen in this specific industry operating in the country of Qatar. In order to see
through the facts of the problem and sort out effective remedies, the study has been taken into
account and specific topic of study has been chosen.
1.3 Problem Statement (Organizational issues)
Employee retention is one of the major concerns for the food and beverage industry operating in
the country of Qatar. It can be said that each year, more than around 100% of the previously
working individuals leave the industry. These results due to high level of competition among the
staffs and lower level of payments and incentives offered to them. The industry has been plagued
with high level of employee turnover, which overall damages and weakens the financial stability
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and capability of the organization and the hospitality concerns associated with the particular
industry in the state of Qatar (Dzeno Poljac et al. 2017). Thus, it is very important to understand
the fact that how HR practices affect the employee retention in the industry. The understanding
of this statement can be said to be the main issue to be covered in this whole assignment.
It can be said that the proper human resource practices has to be brought into action. It is seen
that most of the concerns and institutes in this industry fail to frame up and adopt the right kind
of human resource practices and measures. This leads to rise of dissatisfaction and less amount
of job satisfaction among the staffs and employees (Elbanna. and Kamel, 2015). Thus, they do
not feel interested in working in the same place. This results in mass job shifts, resignations and
absenteeism. This crops up to be a huge issue for the smooth operation of the whole food and
beverage industry operation in the country.
1.4 Significance of the study
This study has a huge scope and significance. In the context of the high level of employee
turnover which can be seen in the food and beverage industry in the land of Qatar. The use of
ineffective human resource policies by the food and beverage industry has been a huge problem
for the retention of employees (Baumann-Pauly and Nolan, 2016). Many a times, it is seen that
due to poor management, high level of competition, lower payments and unsuitable work
environment leads to discern among the employees they take up decisions to leave their jobs
frequently. The right job schedules and long hours of work also catalyses the whole situation of
employee turnover. The right choice of the kind of human resource is very important in order to
make sure that the employee turnover rate remains low. In order to understand the basic of the
right kind of human resource policy, the study can be said to be having a great significance
(Hollis, 2017). The ways by which human resource can help in the retention of employees can be
pointed out after carrying on with this study. The food and beverage industry offer an unsuitable
working space and poor leadership and performance appraisal, which leads to huge amount of
employees being less satisfied with their job profiles. This brings in the decision for them to
leave their work. This becomes a huge matter of concern for the different of the business
organization functioning in this particular industry (Lasrado, 2018). The lack of consistency
among the staffs and the employees also turns out to be less rewarding for them and this
phenomenon is catalysed by the acute lack of proper knowledge among them (Aktaş and
Yeasmin, 2015). Thus, the study of proper HRM practices and their overall impact on the
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employee retention has a greater significance keeping in mind the different issues that crop up
with the increase of employee turnover and fall in the rate of employee retention.
1.5 Research Objectives
Main Objective:
● To examine the influence of the Human Resource Management on employee’s retention
in the food and beverage industry of Qatar.
Specific Objectives:
● To find out the effect of recruitment on employee’s retention in the food and beverage
industry in Qatar
● To examine the training and development on employee’s retention in the food and
beverage industry in Qatar
● To find out the influence of performance appraisal on employee’s retention in the food
and beverage industry in Qatar.
● To find out the effect of reward system on employee’s retention in the food and beverage
industry in Qatar.
1.6 Research Questions
● What is the relationship between recruitments and employee’s retention in the food and
beverage industry in Qatar?
● Is there any relationships between training and development and employee’s retention in
the food and beverage industry in Qatar?
● What is the influence of performance appraisal on employee’s retention in the food and
beverage industry in Qatar?
● To what extent is the relationship between reward system and employee’s retention in the
food and beverage industry in Qatar?
1.7 Rationale for the chosen research questions
It has to be deduced upon the fact that employee retention diuretics affect the profitability of an
organization. The food and beverage industry since the last five years has suffered a high setback
due to huge amount of employee turnover and failure in the retention technique taken up by the
various institutions. It can be pointed out that the high rate of employee turnover takes place due
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to poor rewarding schemes and performance appraisal. Poor working environment and
conditions, high level of competition, lack of interest in work, long and weary working hours,
lack of concerns and capability seen in the leaders and managers and widespread gender and
racial discrimination has led to huge dissatisfaction and demotivation among the workers of the
industry (Davis. and Luiz, 2015). These all factors have thus contributed to the huge amount of
employee turnover seen in this particular industry in Qatar. Thus based on the issues and
problems, the different set of research questions have been designed in order to enquire about the
issue and take steps and alternatives to get rid of the serious problems and their fatal aftermath
on the profitability of the food and beverage industry (Moayeri, 2014). The first question has
been designed in order to know about how and in what manner the HRM practices and
management in the industry affects and influences the phenomenon of employee retention. The
second question has been interrogated in order to know about the several factors, which affects
the employee retention. This shall help in improving the facts so that employee can be easily
retained, and turnover of employees can be decreased. The next question has been designed in
order to know about the different negatives aftermaths that are brought by poor employee
retention in context of the food and beverage industry. The fourth question has been made in
order to know about things, which can be acted upon in order to bring an atmosphere of balance
between employee retention and organizational profitability (Peng, 2016). Last but not the least,
the last question has been asked in order to enquire about the various HRM policies and practices
which can be taken and considered in order to bring forth high employee retention and low
employee turnover (Manalili, 2017).
1.8 Research Hypothesis
HO1: HR Recruitment policy significantly affects employee retention in the food and beverage
industry in Qatar.
HO2: Training and development program significantly affects employee retention in the food and
beverage industry in Qatar.
HO3: Performance appraisal system has significant impact on employee retention in the food and
beverage industry in Qatar
HO4: Reward system in organisations has a positive impact on employee retention in the food
and beverage industry in Qatar.
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1.9 Research environment and the demographics
The research on this particular topic can be said to be much of a new and uncommon one. The
research on the topic of Human Resource practice and its impact on employee retention and
employee turnover has taken place, however, it has been conducted based on other sets of the
industries or other organizations of different industries (such as retail, manufacturing, tourism
etc.). Such kind of research in food and beverage industry has been not much conducted and not
has been conducted by the researchers. However, by looking at the statistics of the last five
years, it has been seen that the employee turnover has been highest in the food and beverage
industry in the state of Qatar (Parsa and Kwanzaa, 2014). Thus, the topic has been chosen and
brought into light of the research and presentation. Considering the need and demand of the topic
and the scope of research offered by it, the research objectives have been setup and on basis of
that, the research questions have been made. The study shall align with the objectives and
questions and in order to find detailed information and analyze them, the right kind of data and
methodology has been considered for this study (Arkalgud, 2017). It can be also declared that I
could easily perform with this research and I did not have to encounter any such kind of
problems while carrying on with my research work. Further, I got enough help from the other
researchers and my guides who have helped me by providing me with an encouraging
environment. All these factors have helped to choose this topic and carry on with an extensive
study on this topic. In order to understand the problem from a universal standpoint, different
articles and research materials by other researchers have been mentioned and critiques in the
literature review part designed in this whole study.
1.10 Literature Gap
The biggest gap in this study is that it is based only on the food and beverage industry. The
context of employee retention and factors affecting it in this industry is somewhat different from
employee turnover and their causes in the other industries (Chen et al. 2014). Thus, this study
cannot be applied to the paradigms of other industries. Further, this study is limited to only the
country of Qatar. Thus, the student the perceptions arising from it are restricted only to that
country. The study has been conducted based on primary and secondary data. Primary data is a
first-hand data and is more authentic than secondary data (Van der Wagen and White, 2014).
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