The Impact of HRM on Employee Performance: A Comprehensive Review

This literature review examines the role of Human Resource Management (HRM) in managing and improving employee performance. It analyzes four articles, focusing on the implementation of performance management systems, the impact of HRM practices, and the role of training in enhancing employee skills. The review highlights the importance of strategic planning, effective communication, and employee engagement in achieving organizational goals. It also discusses the challenges and consequences associated with the failure of performance management systems. The analysis emphasizes the need for HRM to understand employee needs, provide adequate resources, and foster a supportive work environment to drive high-quality performance and contribute to organizational success. This document is available on Desklib, a platform offering a wide range of study resources for students.

Running head: HUMAN RESOURCE MANAGEMENT
Role of Human Resource Management in managing Employees’ Performance
Name of the Student:
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Table of Contents
Introduction......................................................................................................................................2
Article 1...........................................................................................................................................2
Article 2...........................................................................................................................................4
Article 3...........................................................................................................................................6
Article 4...........................................................................................................................................9
Analysis of the Articles.................................................................................................................11
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
Human resource management plays the most significant role within an organisation.
Starting from recruiting and selecting the right people, human resource department develops the
cohesive work performance within an organisation. According to Jackson, Schuler and Jiang
(2014), the effective human resource management contributes towards the establishment of the
high performance attributes among the employees. The strategic HRM even identifies the future
opportunities for the better positioning of the organisational and helps in strategic decision
making process. The direct observation of the human resource department towards the
performance parameter of the employees develops the high quality working scenario within an
organisation.
The study would concentrate on the effectiveness of the human resource management on
employee performance management. The study would present the structured review of four
different articles that will be demonstrating the organisational functions in different departments
based on the employee performance management. The comparisons between the articles will
also be discussed in this study.
Article 1
Francis Noronha, S., Aquinas,, P. & Doreen Manezes, A. (2016). Implementing Employee
Performance Management System: A Scoping Review. International Journal of
Management and Applied Science, 2(5), pp.85-88.
The article Implementing Employee Performance Management System: A Scoping
Review is widely concentrating on developing the insightful knowledge regarding the

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performance process. The article defines that the implementation of any system demands the
structured and meticulous planning at the initial stage. The synchronized and systematic planning
is not the only criteria for implementing any particular system management within an
organisation. The careful execution of the entire planning in a systematic way determines the
improvement of the performance within the organization. The article investigates the area of
performance management as a whole. It is thus defined that when the human resource involves in
the execution process of any system management, the task becomes quite challenging. A skilled
and systematic performance management system (PMS) requires scheduling various parameters.
The study is thus identifying those parameters and the role of the human resource management in
achieving the entire initiatives.
According to Francis Noronha, Aquinas and Doreen Manezes, (2016), a well executed
performance management system is much beneficial in establishing the higher employee
engagement. Moreover, it ensures a more committed workforce that is adaptive to change and
quite flexible towards accomplishing the business goals. Employee engagement has the clear
impact on the employee performance level and improvement in the business practices (Shen &
Benson, 2016). On the other hand, the study also describes the consequences faced due to the
failure of PMS. It is noticeable that the failure of the performance management system is mostly
visible during the implementation phase. It is assumed that the primary reason for this failure is
the lack of systematic planning. The extensive research on this context indicates that almost 70%
of the performance management system fails during the implementation stage. However, it is
also noticed that the failure rate has been decreased with time due to the advancements brought
to the business functionalities. The failure rate is expected to be decreased up to 56%, which is
highlighted in the recent studies.

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The study is developed by observing the previous literature study and utilizing the
method of scoping review. The scoping review of the literature is established to identify the
underlying issues that lead towards the failure of the performance management system
implementation. It even aims to identify the consequences faced by the organisations due to the
failures. The collection of the literature based information helped in understanding the major role
of the human resource management in order to develop a systematic performance management
process. The obtained idea from this research ensures that the practitioners often face the
considerable challenges to implement the performance management system due to the lack of a
synchronized planning and insufficient resources. It is suggested that the human resource
management requires understanding the needs and the requirements prior to develop any
planning (Sheehan, 2014). In addition to this, it is also necessary to review the necessary
resources for executing the plan. Establishment of the transparent communication would be
much helpful in such context. The high level of communication would help the employees in
understanding the necessity of implementing the performance management system and it would
engage them to perform the organisational functionalities in a significant way (Chadwick, ,Super
& Kwon, 2015). The further study would concentrate on the diverse aspect of the performance
management and would present the clear ideas about the roles and responsibilities of the human
resource management.
Article 2
Hassan, S. (2016). Impact of HRM Practices on Employee’s Performance. Int J Acad Res
Account, Financ Manag Sci, 6, 15-22.

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The article Impact of HRM practices on Employees’ Performance presents the
considerable ideas regarding the effectiveness of the human resource departments in order to
improve the employee performance parameter. With the special reference to the textile industry,
it represents the idea of the human resource practices that motivate the workforce to establish the
high standardized performance within an organisation. In describing the role of the human
resource management, Hassan (2016) described that there is the keen linking between the human
resource management and the employee performance parameter. It is notified that textile
industry requires much attention from the human resource department in order to increase the
performance parameter. The research conducted in this article provides the insightful ideas about
the active practices undertaken by the human resource management in order to develop the high
quality performance level within an organisation. The research aims to identify the diverse
human resource practices that create the considerable impacts on the employees’ performance.
On the other hand, the role of the human resource management in monitoring the employees’
performance is also observed in this article.
The article develops the random sampling techniques to collect the quantitative data in
this research process. This data collection process helps in checking the association between the
employees’ performance parameter and the role of the human resource management. The use of
the statistical data helps in understanding the necessary practices undertaken by the human
resource department to develop the necessary practices that contribute towards the development
of the employees’ performance parameter. The literature study develops the considerable ideas
theoretical underpinning regarding the HRM practices that provide the insightful ideas about the
method of improving the employees and motivate to improve the quality of their work.

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The obtained ideas from the quantitative data collection method suggest that the human
resource management requires concentrating on the effective factors that contribute to the
improvement of the employees’ performance level. It is noticeable that the factors such as
compensation, training, performance appraisal, and employee involvement are contributing to
the improvement of the employees’ performance. The human resource management deals much
efficiently with these factors and provides the considerable benefits to improve the performance.
The human resource department monitors the performance and understands the requirement to
improve their performance level. Accordingly, it helps in providing the considerable benefits,
both monetary and non-monetary and engaging the workforce to complete the organisational
functionalities. The relationship between the human resource management and the employees’
performance is properly formulated. In fact, the ideas derived from the study also explain that the
strategic HRM practices can influence the professional skills as well as the perceptions of
working with more integrity. The information acknowledged in this article are presenting the
very theme of the study. It depicts the right practices that are needed to be undertaken to
motivate the workforce and develop the appropriate performance schedule that is contributing to
the organisational success. The influences are even created on the perceptive values of the
employees to understand the state of mind while dealing with the organisational practices.
Accordingly, the benefits are necessary to provide in order to influence their conscience and
engaging them towards the necessary activities.
Article 3
Aboyassin, N. A., & Sultan, M. A. (2017). The Role of Human Resources Training in
Improving the Employee's Performance: Applied Study in the Five Stars Hotels in Jordan.
International Journal of Business Administration, 8(5), 46.

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In this very specific article the author has provided in-depth portraiture about the role of
human resource training in order to enhance performance level of the employees. The success of
a business organization is immensely dependent on employee performance. With the dynamic
growth of business industries the needs and demands of customers are changing gradually.
Employees with the rhythmic progress of globalization and customers’ dynamic demand have to
face immense challenges in meeting their desires due to lack of training and competency
(Aboyassin & Sultan, 2017). Therefore, the author in this very specific article has stated that
human resource managers of various organizations should provide effective training and career
development session with the help of which employees can enhance their professional
competency.
The author has depicted that training is highly needed for improving their ability to
compete in the market and to achieve their goals in survival and growth. With the rapid progress
of globalization the rate of competition is getting high day by day. The article has focused to
present an in-depth overview on how the hotel industries all over the World are improving their
customer service systems. People from various geographical backgrounds and attitudes are
associated with the business process of hotel industries. The article has focused to highlight on
how an effective training session can help to improve the professional skill of an individual
employee.
As per the recruitment policy of human resource managers especially in the hospitality
industry employees are judged as per skill and competency level rather than focusing on their
cultural backgrounds. After being associated with the people of various cultural backgrounds and
attitudes the organization have to face numerous barriers such as cultural barrier, language
barrier and psychological barriers and so on. Due to language barrier employees working within

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the business process fail to maintain effective communication with each other. As a result, they
cannot share their views and necessary information at the workplace. After identifying this very
specific issue the human resource managers have decided to implement training and
development session for enhancing the communication skills of employees.
As a result, business managers do not have to face challenges in maintaining group
communication. Managers can make effective collective decision by involving participations of
employees. On the other hand, the author has focused to provide an effective training and
development session on technological skill as well. With the emergence of new technology the
organizations tend to implement advanced technology within business services. It has been
observed that employees associated with the organization may not be well accustomed with the
advancement of technology. As a result, customers have to wait for a long time in using services.
On the other hand, business experts fail to maintain systematic data regarding customer service,
business profitability and operational process due to the lack of technological skill and
competency.
In this situation, the author has suggested that human resource managers of various
organizations should take effective initiative in providing training on technology to the
employees. As a result, both employees and employers would get equal benefits and facilities.
The author has opined that human resource managers while arranging a particular training
session should follow several methods that include analyzing the training needs by making a
survey for collecting response from the employees, designing training program, setting time
duration of the training. With the help of making questionnaires the author has made effective
primary data collection technique in order to involve the employees from hotel industries. The
author has collected direct feedback from the employees about the importance of attending

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training and development session. The author has stated that effective training session is highly
needed for enhancing the performance level of employees. After gathering feedback from
employees associated with the hotel industry, the author has concluded that training on
communication skill and technological skill is sufficient enough for providing good services to
the customers.
Article 4
Martin, G., and Gollan, P. (2012) Corporate governance and strategic human resources
management (SHRM) in the UK financial services sector: the case of the Royal Bank of
Scotland. International Journal of Human Resource Management, 23 (16). pp. 3295-3314.
ISSN 0958-5192
This particular article has presented a clear vista on how human resource management
should focus on corporate governance ethics especially in the financial sector. It has been
observed that due to the lack of data security finance departments have faced immense
challenges in maintaining a clear database about the profitability of business. This very specific
study has focused to make in-depth overview on how the human resource managers have to
implement specific corporate government ethics in the financial sector (Martin and Gollan,
2012). The author has opined that organizations should follow data protection act within the
finance department effectively. Data protection act implies that employees would have to
protect data about the business profitability so that it is not leaked out in front of an unauthorized
person. Large numbers of organizations are there which do not use password protected devices
within the department. As a result, people tend to manipulate data as per their issue. This

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particular problem has raised a major issue on the overall success of business. Finance
department is unable to maintain confidentiality of data and information.
However, the author in this very specific article has suggested that business organizations
especially financial sectors should implement data security code. Human resource managers
would have to focus on maintaining encrypted files. As a result, unauthorized persons would not
be able to access the devices. On the other hand, it has been observed that financial sectors
always prefer to hire outside employees for high designation as per their experience and previous
record. As a result, the employees already associated with the business process in financial sector
do not get enough scope of getting promotion to grab high position. Consequently, the rate of
employee turnover is increasing day by day. In this kind of situation, business organizations are
facing immense challenges and difficulties in maintaining business sustainability. The author in
this specific article has highlighted that human resource managers should take effective
initiatives in reducing the rate of employee turnover from financial sector. The HR managers
would have to show their liberal attitudes towards internal employees for maintaining ethics and
values of corporate governance.
In order to gather appropriate data and information about the importance of implementing
corporate governance ethics within financial sector effective qualitative analysis collection
procedure is followed. The author has chosen the case as it represents the impact of GFC on the
UK banking sector as well as the most spectacular corporate failure happened in the British
economic history. Semi-structured interview session is conducted by involving the supervisors
of UK banking sector. By maintaining an in-depth interpersonal communication the author has
collected necessary data and information on how banking sectors of UK are facing challenges in
running their business successfully due to the lack of corporate governance ethics. The author in

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this article has categorically mentioned that human resource managers should change their
recruitment policy to get back the glory of financial sectors. The author has observed that the rate
of employee turnover is increasing day by day. In this kind of situation, business organizations
are facing immense challenges and difficulties in maintaining business sustainability (Reiche et
al., 2016). However, finance sectors should be more conscious of maintaining their business
values and ethics. Maintaining effective communication with the employees, implementing
cultural diversity at the workplace, making participative decision making by involving the
employees are some of the most effective ways for human resource managers to motivate
employees towards reaching the business goal.
Analysis of the Articles
The theme of the study represents the idea regarding the role of human resource
management that driving the workforce towards the organisational success. The previous
researches provide the clear evidence of the effective human resource practices that develops the
high standard quality of the organisational performance by engaging the employees. It is notable
that the employees often require both the monetary and non-monetary benefits to derive
motivation and improve their performance efficiency (Albrecht et al., 2015). The human
resource management ensures such requirements by developing a motivational working
atmosphere. The articles chosen for this study represent the theme by developing the ideas of the
diverse functionalities undertaken by the human resource management for enhancing the
performance level of the employees. The diverse techniques used in different articles develop the
clear understanding regarding the considerable benefits that the employees seek for the
betterment of their performance level.