Human Resources Management: Impact on Turnover, Productivity, Finances

This report delves into the critical relationship between Human Resource Management (HRM) practices and organizational performance. It explores the impact of HRM on employee turnover, productivity, and corporate financial performance. The introduction highlights the significance of HRM in enhancing organizational success, supported by numerous international studies emphasizing its influence on economic aspects. The literature review examines existing research, including the impact of HRM on individual and collective performance, drawing on Barney's (1991) theory and other works (Wright, McMahan, 1992), which identify key areas for organizational growth. The report analyzes factors like job security, employee compensation, and career growth expectations, as well as the impact of conflict resolution and employee autonomy on productivity and turnover. It also discusses the relationship between HRM practices and financial outcomes, referencing studies by Cascio (1991) and Flamholtz (1985). The report also addresses issues related to organizational performance and strategic HRM, and recruitment strategies. Furthermore, the paper acknowledges the potential limitations of high-performance HRM practices, such as the temporary nature of benefits and the dependence on individual managerial skills. The study references various researchers, including Arnold and Feldman (1982), Cutcher (1991), Weber (1985), Kruse (1990), Becker (1992), States (1997), Russell et al. (1985), Terpstra and Rozell (1993), Berman (1991), Gerhart and Milkovich (1992), Collins (2001), Rioux and Bernthal (1999), Baysinger and Mobley (1983), and Arnold and Feldman (1982) to support its findings.

Human Resources Management
Impact of HRM Practices on Turnover, Productivity, and Corporate Financial Performance

Executive Summary
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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Literature Review............................................................................................................................7
Research Design and Methodology...............................................................................................11
Results, Analysis and Evaluation of Findings...............................................................................24
Conclusions and Recommendations..............................................................................................36
References......................................................................................................................................40
Appendix........................................................................................................................................45
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Introduction
The paper has tried to understand the relationship between the HR and the way an
organization is performing. The relationship is an important aspect of the organization that has
been largely discussed around the academic community. Numerous researches on the
international ground have been conducted. Most of them have utilized the survey method which
has reflected that the practices in the organization in relation to this topic have brought in high
impact on the economic aspects of the organization.
The progress in HRM is related to the improvement of the firm considering various
important plans of the organization. The conceptual or theoretical study of most of the papers has
helped in understanding that the good practices in HRM generally leads to the maintenance of
better organizational progress and advantage over the other companies on competitive front.
There have been researches that have widely discussed the way the performance of an
individual can impact the organizational performance. Moreover, along with the individual
impact on the organizational performance, the impact of the collective effort cannot be denied.
Observation of the theory developed by Barney (1991) can reflect that the four major areas of the
organization are important for the growth of the organization. The studies ahead in this paper has
considered discussing these areas in detail.
Various works have identified the role of Human resource management in increasing the
company’s profitability and one of the works by (Wright, McMahan, 1992) showcase the
importance of HRM in the advantages which are firm-specific. HRM is majorly an underutilized
resource by various firms and they remain ignorant about its positive impact. Mainer times the
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employees unknowingly work much below than their potential and the organizations donor have
accurate plans to motivate these employees and get the most out of them and for such tasks HRM
has the best solution. Some of these solutions include praising the works of the employees and
linking these good works with an incentive in the salary and internal promotions which are on
the basis of work merit of the employees and many other tasks can be done which help in
bringing the aims of the individual and the shareholders on the same line of interest.
Mentioned below are the areas that have been elaborated further:
a. Turnover
b. Productivity
c. Financial performance (corporate)
Considering the research conducted by Arnold and Feldman (1982), one can state that the
employees need various elements from an organization prior to giving their full effort to perform
within the organization. Some of them are like secure jobs, affiliated employee union, being
compensated well, time period at the company, minor elements such as age, level of education.
These factors in general contribute to the improvement in the organizational growth and
reduction in the employee turnover. From here, one can state that the impact of human resource
management is embedded in the individuals working within the organization. There are also
other employee related factors that contribute in reduced turnover of the employees such as the
expectations of the employees’ career growth within the organization.
It has been found that the human resource management practices impact the overall
productivity of the organization in several ways. The study conducted by Cutcher (1991) states
that the companies that allowed existence of less conflict among the employees and the
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organization and those helped the companies work cooperatively in the company has witnessed
appreciable growth in the past few decades and there has been fewer turnover within the
company. Moreover, the employees who faced less strict human resource policies and that
allowed autonomy to some extent became the most productive employees of the firm. Weber
(1985) asserted that the companies where there exist less aristocratic policies and the policies are
liberal, then it can be stated that the employees will be more productive and the organization will
grow further. If the employees are in the good relationship with the colleagues and the
environment within the organization is appreciable, then it can be stated that the entire
individuals within the organization will benefit along with the organization itself. Moreover, the
reduction in the employee turnover has found to have appreciable impact on the overall
organizational growth. From the study conducted by Kruse (1990), it has been found that the
companies that have good compensation provision for the employees have witnessed appreciable
productivity for the overall organization.
The relationship among the human resource practices and the financial aspects of the
company have been amply studied by numerous academicians. The study conducted by Cascio
(1991) and Flamholtz (1985) have found out that the good financial returns within the
organization can be associated with the way the policies within the organization is being molded
to handle the employees. The consideration of the facts within the study can state that the fourty
percent increase in the salary of the employees is in direct coordination with the growth of the
SD.
A study conducted by Becker (1992) on the employee salary and the standard deviation
states that the employees’ growth in the salary by forty percent can be equivalent to the standard
deviation. Numerous researchers have found out that if the employees are recruited with the right
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method and proper training is provided to the employees then it can be stated that there is
somewhat chance of better organizational performance (States, 1997).
Mentioned below are some of the areas those need to be considered after the studies for this
research:
i. The issues and solutions related to the organizational performance and strategic human
resource management.
ii. Human Resource Practices which can give the advantage to the company from the
competition.
iii. Understanding the way recruitment can help the organization achieve the goals and
objectives
It is peculiar to note that all the benefits of these high performance human resource management
practises seem to be beneficial for the firms but then these benefits are temporary. It is said so
because as more and more companies will start following this practises and the companies which
are right now ignorant about these practise at a point of time will become aware and take steps
accordingly. At that point of time, the benefits from these practises will soon move towards
equilibrium and the effect will get nullified sooner or later.
Secondly these surveys and studies have been mostly done in labs and ideal conditions so
the benefit which the companies will be able to acquire would be dependent a lot on the
individual experiences and talent of the managers and shareholders of various companies and
imitating them as a textbook trick will not be easy and one would have to be more and more
creative as use of Harm becomes a common practise.
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Literature Review
The purpose of the study is to reach certain conclusion in relation to the research topic,
“The Impact of Human Resource Management Practices on Turnover, Productivity, and
Corporate Financial Performance”, and studies that are concerned with the subject being
studied. The topic will lead the whole study further and act as guide. The study will try to
consider the areas that have not been studied by the researchers.
Recent theories have stated Human Resource Management as the primary strategy to
consider while preparing the organization for competitive strategy (Barney, 1986). Moreover, the
productivity of the organization is supposed to increase if the human resource of the organization
is motivated and their goals and objectives align with that of the organization. It has been
asserted by the various researchers that the policies concerning the management of human
resource of the organization has huge impact on the overall psychology of the firm and the
industry (Boudreu, 1991; Jones and Wright, 1992; Keliner, 1990).
There are numerous studies that suggest that focusing on the internal talent for filling the
vacancies improves the chances of growth of the organization. The major factor behind such
change is the increase in the motivation level of the employees sighting the chances of growth in
the company. This also reduces the rate of turnover. Moreover, a study conducted by Kelly-
Radford (2001) found that companies face 34 percent chances of failure if a senior executive is
hired from outside, on the other hand, if the same executive post is filled from the inside of the
organization, then it reduces the chances of failure to 24 percent.
The practices of HRM affirmatively impact the growth of the organization eventually the
financial front of the organization if handled effectively and efficiently. According to Russell et
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al. (1985), there exists a relationship between organization’s financial growth and training
programs. According to Terpstra and Rozell (1993) the existence of a significant relationship
among the organizational profits and the test validation, usage of formal selection procedures,
and extensive training are poised to support the organization in various way. Studies conducted
by some of the researchers have found out that the relationship between the appraisals for the
performing employees and appropriate employee compensation has appreciable relationship with
the organizational performance (Berman, 1991; Gerhart and Milkovich, 1992).
According to a study of 11 companies – whose performance rose to great heights during a
certain period – done by Collins (2001) found out that only five percent CEOs were considered
outsiders in the list of successful companies. Most of the organizations consider hiring external
candidates for the new perspectives and ideas, however, it negatively impacts the organization if
the senior management fails to grasp the culture and the human resource orientation of the
organization. According to Rioux and Bernthal (1999), in spite of internal candidates’ trait to
stay longer in the organization and ability to succeed, most organizations hire external candidates
13 percent above average often.
Most of the organizations have witnessed that the existence of a union, job security
perceptions, the level at which the employees are compensated and the time they have spent with
the organization reflects whether the employees will stay in the organization or they will move
out (Baysinger and Mobley, 1983). Moreover, the age and orientation towards the company,
individual’s expected return from the job they are doing and their planning to leave the job in the
near future or the time they want to spend in the company (Arnold and Feldman, 1982). As per
the productivity of the employees are concerned, the companies which considers changing the
relationship of the labor within the organization and focus on improving the challenges lead to
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appreciable outputs – increase in output, reduction in costs, and scrap – in comparison to the
companies that are utilizing conventional methods of labor relation methodologies (Cutcher-
Gershenfeld, 1991).
The previous studies have asserted that the use of proper HRM methodologies improve
the performance of the companies. The important factors under this study are appraisals of the
employees on periodic basis, assessing the attitude of the employees, and the processes of
selecting and recruiting the candidate. It has been found that most of the organizations have the
tendency to choose dazzling, celebrity leaders and disregards the presence of potential Level 5
executive leaders within the organization (Collins, 2001). These dazzling celebrities fail to
understand the existing procedures of the organization and find themselves on toes while
understanding and bringing the culture, which is consider as the major driver to the reduce
turnover, increase productivity and financial performance of the organization.
During filling of the leadership positions, organizations are independent enough for the
selection of the employees from within the organization or considering the employees from
outside the company. It is obvious that these hires offer different profits to the companies. But, if
above studies is taken into consideration, employees within the organization are appreciable
choices. Usually, the internal employees are used to the organization’s way of doing things and
already know various people within the organization. Only a good motivational fit and
requirement of extensive orientation can be the two enough criteria to see their fitness to the next
position. Also, internal promotions can make accurate decisions because of availability of more
information to them compared to external hires. Along with that, internal candidates’ previous
work might help the company in gathering ample data to understand his future orientation.
Organizations don’t have to guesstimate the candidates’ past experiences. As the development is
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concerned, internal candidates can also be brought into multiple customized development
experiences that will guide them into future positions.
Moreover, as per the research conducted by Ovidiu-Illiuta Dobre (2013), the empowered
staffs within the organization and the recognition of these employees when they perform, help
them feel motivated. The increased motivational level helps them accomplish various
organizational goals. Employee dissatisfaction, which is caused by boring and regular jobs and
stress from the customers results into the failed growth of the organization. This may also
increase the absence of the employees within the organization and the employees might start
consider leaving the organization in the long run.
Motivation is strong technique that can be used to reinforce the way someone behave and
also to influence employees to keep working with the organization. It is an internal drive that
induces the pulse to satisfy an unsatisfied need and move toward achieving a specific goal
(Bartol and Martin, 1988). Motivated employees align their goal to the goals and objectives of
the organization and make efforts to help the organization grow further. Along with that, those
organizations whose staffs make continued effort towards the organizational growth are more
successful than other organizations (Kallimullah, 2001). The human resources are frequently
underutilized. The reason behind is, staffs in the organization generally make lesser effort then
they could and if discretionary effort are made by employees then it can be stated that it can
provide increased return for any cost incurred (Bailey, 1993). Discretionary effort of the
employees can be affected by HRM practices which influence employees’ skills and motivation,
along with an organizational model that helps staff control the way they are performing at the
company.
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A better HRM practice can help the employees stay motivated at the work and make
better efforts. HR practices like using performance appraisals and then linking it with incentive
compensation systems will be building block for motivation. Also, using the methods to promote
the employees from within the organization value employees’ smart work and monetary
incentives that help the staffs and the shareholders align the interests like ESOPS will have
significant effect on employees’ motivation. HRM policies that help the employee engagement
and give them the freedom to perform their job, also leads to positive firm performance and
eventually to better corporate financial.
Few of the researches have concluded that if a job is structured and within a set premise,
then it limits the highly skilled and motivated workforce to utilize their full potential, who
presumably is better achiever for a concerned job. They don’t get chance to utilize the abilities in
designing different methods to perform the tasks. Therefore, bringing more autonomy to the
work environment can help in improvement in the way the organization functions, and
eventually will impact the factors.
However, understanding the effect of HR practices on the organizational productivity and
financial condition of the company have not been looked upon specifically and in combined way.
This paper will try to fill these gaps through conjugated study of all these elements.
Research Design and Methodology
The primary and secondary research has been chosen for studying over the topic. The
primary research is concerned with the collection of data through survey and the data are then
analyzed to reach certain conclusion. On the other hand, the secondary research method has been
identified as the most important method for the analysis of the topic of this paper. It has been the
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obvious methods for most of the studies that helps in reaching the solutions to the problems or
the research questions without spending on the field studies. However, it can be stated that the
complete dependence on the secondary study might not be apt and, therefore, the consideration
of primary research becomes important. The topic that has been selected for the research is the
effect of HRM practices on the performances of the companies. The studies that have already
been done by the various researchers can be used to understand the various perspectives of the
research question. For instance, the research question, “Filling internal vacancies is helpful as
compared to outside hire”. One can state various thoughts to this research question. Some of the
research papers have come up with the conclusion that hiring the employees from within the
organization is more beneficial than hiring from outside. This keeps staffs stay motivated as it
help them with a reason to stay in the organization and work for something. However, there
exists different orientation for the same concept that states that if the employees are hired from
the outside then it will be beneficial for the company as it will help the company get new
perspective from the outside.
In brief, it can be stated that the secondary research which has been conducted with the
study is the hiring that is done from within the organization and the one that is done from the
outside of the organization. Moreover, the secondary research will help in establishing successful
relationship or comparison among the two perspectives. The next method that is important for
this study is primary research that is the collection of data from the field study. The second
method will be used in understanding the topic from the practical aspects and then analyzing the
result in comparison with the secondary research.
Prior to moving ahead with the methodologies that have been selected for the study, it is
important that one properly understands the differences among the terms clearly and with
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complete clarity. The methodology helps the researchers in understanding the way research has
been conducted and the way the objectives of the research will be met, and the methods that need
to be employed to understand the various elements. The methodology helps in understanding the
methods that has been used in the research. The method, in a research, relates to the statistical or
non-statistical techniques applied to reach certain result or conclusion, such as, surveys and
interviews.
There are two methods that have been applied while moving ahead with the research. They are:
1. Primary research
2. Secondary research
The secondary research relates to the consultation with the previous research papers and then
reaching certain understanding of the topic.
Mentioned below are the benefits one can garner from studying the previous papers:
 The previous information helps the researcher develop background
 The primary studies above leads to the fundamental development
 The various elements retrieved from the study will help in developing the methods that
can be utilized in the further studies.
However, the method that has been selected for the study has some limitations that need to be
considered prior to moving ahead with the study. It has been found from the study that the almost
all the papers have vaguely touched the topic that need to be studied in this paper. Moreover, it
can be stated that the emergence of employees of contemporary time might not find the similar
orientation from the previous studies and the new employees’ behaviour or attitude does not
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conform to the past studies. From here it can be stated that one can doubt the universality of the
research studies.
The secondary research conducted is likely to help in the further study of the paper when the
primary research will be brought in the picture. The findings from the secondary research seem
insufficient and, therefore, it has been realized that the conduction of the primary research is
imperative for the study.
Survey Design: It has been decided that the survey for this study will be cross-sectional. The
data has been collected is cross-sectional which is poised to represent the larger set of
population. The cross-sectional study will help in understanding the data from the all over the
world.
Survey Model: The survey model that has been decided for the study has considered seven
factors. The seven factors that are important for the survey are:
● Population: The population that has been selected for the discussion is
substantial. None of the industries has been taken as in particular and the population for
the survey is distributed throughout the world.
● Types of Question: There are multiple choice questions that have been selected
from the research questionnaire as it consume less time in responding. These
questionnaires will be sent to the respondents.
● Question Topic: The topic for the questionnaire that has been developed has been
in accordance with the research topic.
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● Response rate: The research questionnaire will be sent not before assessing the
response rate of the majority of the respondent cluster. Based on the understanding, the
right set of the respondents will be selected from where the increased rate of response is
expected for the study.
● Cost Incurred: The cost associated with this study is meager as the whole
questionnaire delivery and receipt will be conducted through the emails of all the
respondents. The use of emails will help in saving the maximum amount of time and
money of the whole research. Moreover, the respondents will have personal freedom on
whether they want to answer particular question and when they want to fill the form.
● Time: The time spent on the data collection will be at least two weak as there
must be various respondents who will respond to the survey after multiple reminder.
Therefore, having enough time at hand is appreciable.
Data Collection Method:
The Survey Design Methodology can utilize different methods for the collection of the data. The
two major methods have been selected for the collection of the data that is email and the web
based online system. The other methods such as PI and calling have not been considered sighting
the limitations in terms of associated costs and less freedom on the part of respondents.
Mentioned below are the reasons that suggest why the use of mails and online form filling has
been selected as the preferred method:
● The method utilizes less investment on the data collection part
● The data collection does not require any effort from the research team and
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● It helps the researchers in getting access to the population that could not have
been possible physically.
● It allows the respondents to answer the questions on their own and at their own
will.
● It leads to the reduction in implementation of the research methodologies
● The web based surveys will help the researchers in forming surveys based on skip
patterns.
However there are limitations to these methods that need to be considered:
● It is important that the sample is good as it dictates the research finding which
generally cannot be identified with the above two methods
● To motivate the employees, the incentives has to be given which might eat away
some budget
● Data collection reduces the overall time period
● “While representative samples get difficult to focus on web surveys, however as
our research sample is broad, this limitation will not be a constraint”
Mentioned below are the reasons that states why the calling option and the PI has been denied as
the method for the data collection:
Interview:
- The cost associated with individual interviews tend to be costly
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- The collection of the data will take unnecessarily long time as the interviews’
length might not be fixed
- The interview expert has to be selected who are not biased (this will also hamper
the budget constraint).
Telephonic interview:
- The respondents whose mobile numbers are not available or they are ready for
the long duration call might be left out for the data collection.
- The respondents would not be ready to answer the questions that are lengthy or
too technical due to various reasons.
The questionnaire that has been prepared for the study has been from Qualtrics (a research
company).
Statistical Tools:
The statistical tools and techniques that have been used for the research are correlation and
regression. It will help in understanding the correlation among the various elements and factors.
Moreover, the data set in the descriptive form will help in getting the snapshot of the whole data
and analyzing the overall orientation of the data. The software package that will be used for the
analyses is SPSS from IBM. The SPSS 16.0 has been used for the analysis due to the non-
availability of the recent versions of the software.
Alternative Methods:
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There exist numerous methods that have not been considered for the study. Mentioned ahead are
the reasons for not selecting some of the most sought after methods this study:
Case Study Method: The case study method can be used for this research study. However, there
are some limitations that held the researchers back while moving ahead with the study. They are:
- The case studies are generally limited to any specific set of population and,
therefore, proving the universalities of findings would be difficult.
- The on-ground or field studies are generally lacking in the studies and therefore
it becomes difficult to reach any concrete decision
- There are case studies that have been person dependent or industry dependent
and therefore, it is difficult to state that the result is unbiased.
- The case studies, however, help in understanding the reliable reasons behind the
conduction of any event under controlled variables.
Observation Method: This method calls for the researchers to observe particular incident and
collect the data for the research. However, there are some of the limitations that can hamper the
study:
- Observers can be biased while observing the respondents
- The past behaviors of the individuals being observed might not be assessed
impromptu
- There rarely occurs any situation when the incident and observer are at the same
time and place.
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In the end, the methodology has been decided that can lead to the completion of the study.
Strengths and Weakness of Methodologies
The methodologies that have been selected for the study have various limitations. The initiation
of the study took place with the secondary research that is entirely dependent on the previous
developed hypotheses or studies. Moreover, it can be seen that there are multiple methodologies
in the studies that are used and the results have been reached that are of various types. However,
it can be stated that the time has changed a lot and there are various things within the
organization that has changed manifold.
Leaving the secondary research away, if the primary research methods are considered then it can
be stated that the primary research that includes survey method has also some limitations such as
anonymity of the respondents. Most of the respondents seek anonymity that sometimes makes
the research difficult to conduct. Moreover, the behaviour of the top management generally
deems to be different than the lower strata and thus the research result may vary if the researcher
is unaware about who the respondents were.
If the relevancy of the methods that has been chosen for in this study is considered then it can be
stated that these methods are of greater importance to this study. Moreover, it can be expected
that the survey questions might bring in more responses than expected. The primary data will
help the research is getting bigger picture on quantitative front.
Data Collection
The collection of the qualitative data has been done keeping in purview the various past studies
related to the HR management and the concerning areas of the studies. The hypotheses that have
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been developed will be analyzed using the collected data and from the previous studies of the
researchers. The survey will help in the collection of the primary data. The development of the
survey model will be considered to follow through the design of the questionnaire.
The use of emails and the online surveys seem to be the apt method to complete the collection of
the data. Moreover, the initial respondents to be interviewed will be from the researchers’ own
company as they are easily accessible, after that, the farther researchers will be reached to
conduct the studies. The employees who are working in the below hierarchy in the organization
will be consulted through the emails and online surveys.
Data Collection Method for Turnover
The data related to turnover will be collected from the respective HR department of the various
organizations during data collection phase. The past ten years data will be collected which is
likely to give the trend in the turnover the organizations combined.
Measurement of Turnover
The turnover rate of the organizations will be measured using three metrics. They are:
resignation rate of the employees per year, stability rate (the employee will be stated stable if one
stays in the organization for at least one year), and the third is the survival rate of the employees
which considers the previous two rates to reach the stated conclusion. These methods will be
applied on the data collected as mentioned earlier.
Measurement of Productivity
The current method the paper will use to measure the productivity of the organization will be in
terms of the total input and the output. The input will be calculated as the total of all the
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resources that has been brought in the organization to reach certain output. These calculations
will in the monetary terms. The paper will conduct comparisons from the past ten years of the
same company in terms of productivity to gauge the trend in the productivity. This trend will be
compared with the changes in the HR practices of the organization and the way various practices
and changes in the policy has impacted the productivity. Similar will be done for the turnover
within the selected organizations.
Measurement of Corporate Financial Performance
Corporate Financial Performance of the organization will be conducted through various ratio
analyses. The paper will use below mentioned ratio analysis to conduct the performance
analyses. The paper will do the same analysis for the past ten years of the company and then the
trend will be studied in comparison to the HR practices.
HR Practices Measurement
The paper will be using the logical steps to analyze the trend and impact of the HR Practices on
the three variables mentioned above. The measurement of the above three variables will help in
preparing a trend graph of the past ten years. Then, the researcher will then the defined the
movement of the graph between three areas, that are high, medium and low. The high trend of
any variable in any year of an organization will be identified. Then the organization will be
consulted to understand whether any changes were brought in the HR Practices in that year or
month. The similar activity will be conducted throughout the selected organizations to
understand whether any deviation in HR Practices impacts these three variables. Moreover, all
the HR Practices will be identified as having two orientations, one is towards the organization
and other is towards the employees. For instance, increase in salary will be identified as
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employee oriented changes and implementation of rules that presses employees to work for long
hours will be identified as company oriented.
Ethical Consideration related to the Study
There are numerous ethical issues that need to be considered while moving ahead with this
research paper. The secondary research particularly has some ethical issues that is, the biasness
of the researcher while moving ahead with the secondary research. Some time it becomes
difficult for the researcher to assess whether the biasness has crept in the study. This situation
arises particularly when the researcher has predefined notion about the research result. There is
also the possibility that the researcher has the collection of data that reflects biasness. The biased
data tend to provide wrong result in the study. If proper focus is kept while making the study,
then the biasness can be avoided. Being a researcher, I will be assessing the data for different
biasness and only then I will move ahead with the study. It can be stated that considering
secondary papers that contrast the study being conducted helps find the biased elements from the
study. The balance in the study is necessary for the right result and, therefore, considering the
various papers is imperative.
Data Analysis
The analysis of the data will consider the general processes for the overall responses taken from
the questionnaire. The methods that have been used for the analysis are widely used and can be
applied to huge range of data sets that are brought in taking various objectives under
consideration. The methods that have been applied will ensure that the analyses stay at the below
medium statistical level.
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The initial phase of the data collection relates to the sorting of the data based on the various
aspects such as the variables available for the study. Moreover, the analyses might be brought in
on almost different parameters such as the exploration of the data, the analyses of the data, and
then archiving the data for the future references. The objective of the study will be compared
with the data that has been collected and based on the authenticity of the data, the further action
will be taken. The method might consider the cross-tabulation for the study and the correlation
analysis. The regression model might be considered for some variables.
Issues that might occur while interpreting the collected data sets:
Researcher’ Perspective: The orientation of the researcher will have major impact on the way
researcher can consider the result of the paper or the action the researcher will take in reaching
certain conclusion within the study. Therefore it becomes important that the researchers stay
neutral while being under research to keep things and results under balance. (Fan, Han, and Liu).
Researchers: It is important to understand that from where the research hails that is the
educational background of the researcher and the personal motivation of the researcher toward
the subject being studied. The educational background and the personal motivation (as reflected
earlier) have significant impact on the consideration of the researchers’ result (Bailey and
Jackson).
Relation of Theory and Data: It can be situation where the theory that has been studied in the
beginning becomes useless when the data is collected for the study using primary methods.
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Results, Analysis and Evaluation of Findings
The total number of respondents surveyed for this research was fifty. The descriptive statistics in
the Appendix shows total valid data analyzed through the SPSS and the standard deviation of all
the data.
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Number of years served in
compnay
50 1 5 2.46 1.328
Satisfied with the job 50 1 5 3.26 1.440
Taking part in companiess
activity other than main job
50 1 2 1.36 .485
Suggesting others to join the
company
50 1 2 1.44 .501
Current Job Position 50 1 6 3.08 1.794
Employee feel encouraged 50 1 5 2.62 1.276
Employee Feel
accomplished
50 1 5 2.68 1.186
Resources available with
employee
50 1 5 2.52 1.446
Goals are clearly defined for
the employees
50 1 5 2.70 1.418
Company informs employees
of all happening
50 1 5 2.56 1.459
Appreciating Diversification 50 1 5 2.40 1.325
24

Giving hundred percent to
the company
50 1 5 2.70 1.515
Senior Managers are good 50 1 5 2.50 1.502
Learn new things on job 50 1 5 2.52 1.446
Senior managers are happy
with the employee
50 1 5 2.92 1.550
Employee know what need
to be done
50 1 5 2.54 1.417
Valid N (listwise) 50
The table above gives detailed insights to the variables and pairwise relationships for every
single consistent variable in the model. The various statistical tools have been utilized for the
investigation. This was done to understand any essential impacts of industry, size, age and the
other control variables. A critical impact of the organizational variable in this study would give
understanding about the HRM particularly productivity and company performance. These factors
were emphatically identified with the different levels of execution. With the control variables
and the HRM framework variable set up, this model helped replicate the past HR studies for
executing this research study, yet with regards to little organizations. The result has shown huge
impact on the employees of the internal environment. It has also been found that the HRM
contributed to the different levels of execution above than motivating the employees towards
their work.
Correl
ations
25

Num
ber
of
year
s
serv
ed in
com
pnay
Sati
sfie
d
with
the
job
Takin
g part
in
comp
anies
s
activit
y
other
than
main
job
Cur
rent
Job
Pos
ition
Sugg
esting
other
s to
join
the
comp
any
Emplo
yee
Feel
accom
plished
Emplo
yee
feel
encou
raged
Reso
urces
avail
able
with
empl
oyee
Goals
are
clearl
y
defin
ed for
the
empl
ouee
s
Com
pany
infor
ms
empl
oyee
s of
all
happ
ening
Apprec
iating
Diversif
ication
Givin
g
hund
ered
pere
nt to
the
com
pany
Seni
or
Man
ager
s are
good
Le
arn
ne
w
thi
ng
s
on
job
Seni
or
man
ager
s are
happ
y
with
the
empl
oyee
Empl
oyee
know
what
need
to be
done
Numbe
r of
years
served
in
compn
ay
Pears
on
Corre
lation
1
.70
4**
.371**
.61
8**
-.64
7**
-.216 -.605** .160 -.001 -.167 .067 -.031 .107
-.0
10
.048 .310*
Sig.
(2-
tailed
)
.000 .008
.00
0
.000 .133 .000 .268 .994 .246 .642 .828 .458
.94
4
.741 .029
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Satisfie
d with
the job
Pears
on
Corre
lation
.70
4**
1 .331*
.40
3**
-.55
7**
-.285* -.500** .159 -.051 -.022 .073 -.141 .099
.10
0
-.018 .190
Sig.
(2-
tailed
)
.000 .019 .00
4
.000 .045 .000 .270 .725 .879 .616 .328 .494 .48
8
.902 .187
26

N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Taking
part in
compa
niess
activity
other
than
main
job
Pears
on
Corre
lation
.37
1**
.33
1*
1
.24
8
-.329* .204 -.434** .193 .012 .171 -.038 .067 -.140
-.0
40
.093 -.051
Sig.
(2-
tailed
)
.008 .019
.08
3
.020 .154 .002 .179 .935 .236 .793 .646 .332
.78
5
.519 .725
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Current
Job
Positio
n
Pears
on
Corre
lation
.61
8**
.40
3**
.248 1
-.49
4**
-.266 -.370** .031 -.039 -.025 -.014 -.119 -.205
.19
6
.054 .159
Sig.
(2-
tailed
)
.000 .004 .083 .000 .062 .008 .832 .791 .862 .925 .412 .154
.17
2
.711 .269
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Sugge
sting
others
to join
the
compa
ny
Pears
on
Corre
lation
-.64
7**
-.55
7**
-.329*
-.49
4**
1 .242 .330* -.041 .132 -.009 .098 .124 -.027
-.1
25
.125 -.025
Sig.
(2-
tailed
)
.000 .000 .020
.00
0
.091 .019 .780 .361 .951 .497 .393 .852
.38
7
.387 .862
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
27

Employ
ee Feel
accom
plished
Pears
on
Corre
lation
-.21
6
-.28
5*
.204
-.26
6
.242 1 -.311* .004 .015 .047 -.268 -.032 -.023
-.1
99
-.125 -.114
Sig.
(2-
tailed
)
.133 .045 .154
.06
2
.091 .028 .979 .920 .747 .060 .826 .874
.16
7
.386 .432
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Employ
ee feel
encour
aged
Pears
on
Corre
lation
-.60
5**
-.50
0**
-.434**
-.37
0**
.330* -.311* 1 -.178 -.064 .062 .200 -.028 -.016
.14
2
.067 -.144
Sig.
(2-
tailed
)
.000 .000 .002
.00
8
.019 .028 .215 .657 .670 .163 .844 .912
.32
4
.644 .319
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Resour
ces
availab
le with
employ
ee
Pears
on
Corre
lation
.160 .159 .193
.03
1
-.041 .004 -.178 1 .217 -.112 -.036 .045 -.019
-.1
71
.237 -.010
Sig.
(2-
tailed
)
.268 .270 .179
.83
2
.780 .979 .215 .130 .440 .803 .758 .897
.23
5
.097 .943
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
28

Goals
are
clearly
defined
for the
emplou
ees
Pears
on
Corre
lation
-.00
1
-.05
1
.012
-.03
9
.132 .015 -.064 .217 1 -.144 -.076 -.014 -.034
-.0
82
.249 -.192
Sig.
(2-
tailed
)
.994 .725 .935
.79
1
.361 .920 .657 .130 .318 .600 .922 .817
.57
3
.081 .182
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Compa
ny
informs
employ
ees of
all
happen
ing
Pears
on
Corre
lation
-.16
7
-.02
2
.171
-.02
5
-.009 .047 .062 -.112 -.144 1 -.160 -.162 -.168
.01
4
-.016 -.120
Sig.
(2-
tailed
)
.246 .879 .236
.86
2
.951 .747 .670 .440 .318 .266 .260 .245
.92
4
.913 .408
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Apprec
iating
Diversif
ication
Pears
on
Corre
lation
.067 .073 -.038
-.01
4
.098 -.268 .200 -.036 -.076 -.160 1 .010 .062
.02
8
.274 .143
Sig.
(2-
tailed
)
.642 .616 .793
.92
5
.497 .060 .163 .803 .600 .266 .944 .671
.84
9
.054 .320
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
29

Giving
hunder
ed
perent
to the
compa
ny
Pears
on
Corre
lation
-.03
1
-.14
1
.067
-.11
9
.124 -.032 -.028 .045 -.014 -.162 .010 1 -.067
-.2
81*
-.045 -.047
Sig.
(2-
tailed
)
.828 .328 .646
.41
2
.393 .826 .844 .758 .922 .260 .944 .643
.04
8
.755 .748
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Senior
Manag
ers are
good
Pears
on
Corre
lation
.107 .099 -.140
-.20
5
-.027 -.023 -.016 -.019 -.034 -.168 .062 -.067 1
.21
6
.035 .177
Sig.
(2-
tailed
)
.458 .494 .332
.15
4
.852 .874 .912 .897 .817 .245 .671 .643
.13
2
.809 .218
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Learn
new
things
on job
Pears
on
Corre
lation
-.01
0
.100 -.040
.19
6
-.125 -.199 .142 -.171 -.082 .014 .028
-.28
1*
.216 1 -.027 .179
Sig.
(2-
tailed
)
.944 .488 .785
.17
2
.387 .167 .324 .235 .573 .924 .849 .048 .132 .855 .214
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
30

Senior
manag
ers are
happy
with
the
employ
ee
Pears
on
Corre
lation
.048
-.01
8
.093
.05
4
.125 -.125 .067 .237 .249 -.016 .274 -.045 .035
-.0
27
1 .011
Sig.
(2-
tailed
)
.741 .902 .519
.71
1
.387 .386 .644 .097 .081 .913 .054 .755 .809
.85
5
.941
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Employ
ee
know
what
need to
be
done
Pears
on
Corre
lation
.310* .190 -.051
.15
9
-.025 -.114 -.144 -.010 -.192 -.120 .143 -.047 .177
.17
9
.011 1
Sig.
(2-
tailed
)
.029 .187 .725
.26
9
.862 .432 .319 .943 .182 .408 .320 .748 .218
.21
4
.941
N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
**. Correlation is
significant at the
0.01 level (2-tailed).
*. Correlation is
significant at the
0.05 level (2-tailed).
31

Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .896a .802 .715 .709
a. Predictors: (Constant), Employee know what need to be done,
Resources available with employee, Suggesting others to join the
company, Giving hundered perent to the company, Appreciating
Diversification , Senior Managers are good, Company informs
employees of all happening, Goals are clearly defined for the
emplouees, Employee Feel accomplished, Learn new things on job,
Senior managers are happy with the employee, Taking part in
companiess activity other than main job, Current Job Position,
Satisfied with the job, Employee feel encouraged
32

ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 69.308 15 4.621 9.180 .000a
Residual 17.112 34 .503
Total 86.420 49
a. Predictors: (Constant), Employee know what need to be done, Resources available with
employee, Suggesting others to join the company, Giving hundered perent to the company,
Appreciating Diversification , Senior Managers are good, Company informs employees of all
happening, Goals are clearly defined for the emplouees, Employee Feel accomplished, Learn
new things on job, Senior managers are happy with the employee, Taking part in companiess
activity other than main job, Current Job Position, Satisfied with the job, Employee feel
encouraged
b. Dependent Variable: Number of years served in compnay
The major impact of the HRM policies and the actions of senior managers were the essential
control variables set up to influence the employee behaviour. Moreover, it was essentially
identified with the employees’ voluntary turnover (∆R2 > .05, ∆F = 12.72, p < .01). This gives
support for the understanding that the utilization of better work environment with in the
organizations would be emphatically identified with company level measures of execution. The
nearness of the environmental and motivational variable was essentially identified with both
measures of operational execution; orientation of the managers towards the employees (∆R2
= .10, ∆F = 42.53, p < .01) and employees perception about the supporting nature of the
managers (∆R2 = .02, ∆F = 6.68, p < .05). This help in the understanding that the utilization of
33

better work environment and the managerial attitude in organizations would help in improving
the motivational level of the employees.
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 2.237 1.261 1.773 .085
Satisfied with the job .218 .110 .236 1.983 .056
Taking part in companiess
activity other than main job
.205 .270 .075 .760 .453
Suggesting others to join the
company
-.756 .283 -.286 -2.674 .011
Current Job Position .212 .079 .287 2.690 .011
Employee feel encouraged -.245 .130 -.236 -1.888 .068
Employee Feel
accomplished
-.084 .126 -.075 -.664 .511
Resources available with
employee
-.003 .077 -.004 -.043 .966
Goals are clearly defined for
the emplouees
.052 .080 .055 .645 .523
Company informs employees
of all happening
-.079 .077 -.087 -1.024 .313
Appreciating Diversification .066 .088 .066 .749 .459
34

Giving hundered perent to
the company
.016 .075 .018 .211 .834
Senior Managers are good .112 .077 .126 1.447 .157
Learn new things on job -.140 .082 -.152 -1.714 .096
Senior managers are happy
with the employee
.026 .075 .030 .342 .734
Employee know what need
to be done
.159 .079 .170 2.002 .053
a. Dependent Variable: Number of years served in compnay
With the control variables set up, the closeness of the number of years spent on the job and the
level of satisfaction was essentially identified with the study. It has been found that the number
of years spent on the job almost matches with the satisfaction level of the employee within the
company (∆R2 = .06, ∆F = 41.22, p < .01). Moreover, the other variable such as the assessment
of the candidate on periodic basis and allowing them the path for improvement within the
company has been the major factor behind their level of satisfaction and retention within the
organization. This supports the understanding that the utilization of growth path within the
organizations would be emphatically identified with firm level goals and its execution. The other
important variables included the option of executing the right drivers of human capital, business
level methodology and nature. Moreover, the utilization of growth path would stay critical even
within the sight of the other drivers of employee motivation. While not a particular theory, it
ought to be noticed that the employee motivation factors which incorporates the various
environmental drivers is a huge indicator of productivity for each situation with the exception in
the voluntary turnover and business credit.
35

The general understanding of the business variables that improve the working environment of the
company were essentially identified with analyzing the related data (∆R2 = .08, ∆F = 14.42, p
> .01). Along with that the employees’ perception of working at the company environment (∆R2
= .06, ∆F = 13.24, p < .01) and their contribution to the extra-curricular activities of the company
(∆R2 = .09, ∆F = 13.71, p < .01). These analyses suggest that the employees are in belief that the
company is executing its business favorably for the employees in conjunction with the drivers
utilized and their impact on execution. It has been discovered through the analyses that the
importance of other factors, such as availability of resources at the company and the utilization
of these resources for the benefit of the employees with its positive association (p < .01). Within
the consideration of the other factors contributing to the employee motivation in the business, the
factors such as communication and clear goal setting stayed noteworthy in its positive
association with perception of the employees in motivation (p < .01). Moreover, as per the
surveyed employees, the noteworthy thing was that the positive orientation towards the other
employees has profound impact on the employees working with motivation within the
organization (p < 05).
Moreover, the key factors for improving the turnover rate, productivity and corporate financial
performance of the company came out are the motivation, the work environment and the way the
relationship has been built among the employees in the company. The utilization of
aforementioned factors remained noteworthy in its positive association with perception of the
employees’ performance within the company (p < .01). It has also been found that the
employees’ performance directly impacts the overall performance of the company on the
financial front.
36

The motivation behind the study was to see the utility of HRM in adding to the successful
execution of functions in various types of organizations, and supporting the employees to act
positively within the organization. The study has led to the understanding that the human
resource management does play vital role in motivating the employees to perform far better.
Moreover, the study reached to the conclusion that the connection of organizations’ managers to
the employees help consider important measures of control variables for the employees that are
not regularly utilized as a part of usual activities within the HR. The study of the activities within
the organization gave a more grounded result to the effect. Utilization the organizational
resources to accumulate significant control variables to help the employees work in
collaborations with those control variables found to be the imperative area of organizational
growth. Please refer the Appendix for the detailed analyses of the various variables under the
study.
The analyses of the data and study so far has led to the understanding of the various areas related
to the research questions being pursued. Mentioned below are the findings in reference to the
research questions identified in the beginning of the research:
i. The issues and solutions related to the organizational performance and strategic human
resource management
The paper has identified that lack of motivation of the employees within the organization
becomes a considerable issue in improving the performance of the organization. Therefore, it can
be stated that if the employees stay motivated towards their tasks, then it can lead to successful
organizational progress. The motivation of the employees can be improved with the help of
various extrinsic and intrinsic motivational factors. The extrinsic motivational factors includes
37

performance driven rewards, allowing the employees to participate within the organizational goal
formation, improving the behaviour of the middle managers, and providing appreciable working
environment. The intrinsic motivation can be the by-product of all these changes.
ii. Human Resource Practices which can give the advantage to the company from the
competition.
The research has realized that if the employees are working with complete dedication then it
eventually improves the productivity of the organization. This improved productivity provides
competitive advantage to the organization. The human resource are the most unique resource
within the organization and if the human resources are motivated and are highly positive towards
the organization, then it becomes difficult for the competition to mimic this strategy.
iii. Understanding the way recruitment can help the organization achieve the goals and
objectives
The paper has also realized that if the employees are selected effectively from the day one with
complete care then it helps the company in saving waste of unnecessary resources behind
training the untrained employees. Moreover, the selection of employees who are already
motivated towards their personal goals, contribute positively to the organization. Therefore, it
can be stated that the recruitment plays a vital role in the achievement of the goals and objectives
of the organization.
Conclusions and Recommendations
From the above study it can be stated that the effect of Human Resource Development has seen
greater influence throughout the firm, bringing about better efficiency, and benefit. Producing
38

goods and revenue generation are without a doubt the greater aspect that should be accomplished
by the combined endeavors of the considerable number of assets. The employees act as
important asset for the company and the HR is significant as no one but they can initiate different
assets. Therefore, it can be recommended that the strategies of the company must focus on the
advancement of human recourses. The parameter of advancement is work efficiency that relies
upon perception of the employees towards the organization, the relationship with the senior
manager, relationship with the colleagues, and the social conviction quality and individual
attitudinal, motivational and behavioral components. Moreover, the levels of understanding and
productivity with respect to the company goals and objectives along with that of the senior
managers contribute to internal environment. The administrative authority and the adequacy of
staff supervisors and others in enlisting, preparing, speaking with, and persuading workers with
the help of monetary help can work to some extent.
There should be commitment within the proponents of strong human resource management to
understand what is expected by the employees and the variables the employees are being
presented with. Understanding these variables grow past conventional human resource
management research practices into the critical aspect of the organizations. While very little is
known about HRM in the organizations and the way employees are handled, they make up a
noteworthy piece of our economy both from a work and a business point of view. By showing
the presence of a relationship amongst HRM and the handling the employees this study gave an
establishment whereupon future human resource studies can be worked upon in relation to better
comprehend its functioning. One conceivable reason that can be neglected to discover a
relationship between the utilization of employee performance in the business rating is that ratings
are not a successful measure of firm execution. To begin with, the relationship between the
39

company’s employees and the various variables can be identified with their performance. While
it may be troublesome for a company that the employees are not performing inadequately to
meet the commitments brings about a lower financial performance and the reverse is not as a
matter of-course genuine. Companies performing extremely well, need to meet their
commitments to employees and bring high financial reward for them. Companies for reasons
other than employee performance may pay late or generally not meet commitments to provide
appreciable environment for the people. Second, the study above demonstrate that the financial
performance of the company for the reasons said above on the other hand different reasons
obscure is not an important measure of execution. In breaking down the variables incorporated
into the distinctive areas of the progressive investigation, it is fascinating to note that businesses
are not essentially identified with whatever other known driver of firm execution or HRM. Even
size and age of the employee groups which ought to be altogether identified with the
performance can bring truth that can draw out life and a bigger performance improvements ought
to help the company to meet its commitments are imperceptibly noteworthy in the best case
scenario.
This leads to presume that regardless of the past attempts to locate a more target and
performance oriented employees, business improvements are not an important measure of
execution for organizations. While the reason for this study was not to analyze the impacts of
HRM in the organizations it is imperative to note that study that has been made contrasted
positively with earlier research. With a specific end goal to pick up a fundamental
comprehension of how the examination fit in with past studies, it has been analyzed that the
different studies utilizing turnover and perception of the employees about the variables brought
significant result. The reason for this activity was not to authoritatively see how the study
40

contrasted with others, but instead to look at the difference disclosed to show that this study was
clarifying a comparative sum of difference when contrasted with past work. It can be seen that
the variables incorporated in the organization are to some degree bring down the past
examination while the variables were in accordance with past research. Similarly, as impact sizes
for the certain variable increases more it impacts the overall employee performance and their
orientation about the organization.
41

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46

Appendix
Questionnaire
Take your own time and please tick the following questions as it fits you.
Strongly
Agree
Somewhat
Agree
Neither
Agree
Nor
Disagree
Somewhat
Disagree
Strongly
Disagree
I am encouraged to innovate better
ways to do things
I feel accomplished when I do my
work
I have all the necessary resources to
conduct my duty
My goals are clearly defined for the
job.
Company informs me about all the
necessary information that are
related to the employees
I help dissatisfied customers in
correcting their problem
I feel blessed that diversity is valued
in my company
47

I use all skills and abilities
effectively to do the job.
My manager is committed to the
quality of work and project.
Management of my company are
dedicated towards the quality results
Are you happy with the information
that are given to you regarding the
know-how of the daily activities in
the organization?
I learn new things on my job and
improve my skills. It makes me feel
happy.
I get the opportunity to provide
suggestions to upper level
I am supported by my manager to
perform at my level.
Management is happy with my work
quality
I regularly interact with various
employees in my organization on
informally and formally.
I know what I need to do at my job
48

Que: Do you have any suggestions to improve your company?
Ans:
Que: What are the other issues you would like to share that are not mentioned here?
Ans:
Que: What motivates to keep producing quality result at your job?
Ans:
Que: Is there anything that can help you to be more effective at your job?
Ans:
Que: Tick the department you work in currently?
(i) Customer Service
(ii) Finance/Accounting
(iii) MIS
(iv) Sales/marketing
(v) Corporate marketing
(vi) Human resources
Que: At what position you are in the company?
(i) Clerical
49