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Impact of human resource information systems on human resource practices (Part one)

Updated on July 27, 2014

Introduction

For many years, management and development of human resource in organization has proved to be a very crucial and an important primary factor in achieving improvement in organizational productivity. Human resource in any organization is considered as an important asset. Based on the various reviews and academic works presented by different scholars, it is clear that success of any organization is determined by its fundamental philosophy of investing and valuing employees. These are among the many factors in the human resource department that play a vital role in retention of employees in an organization as well as ensuring high performance of the employees with the existing facilities.

Human resource practices play a key role in ensuring the sustainability of the organization. These are practices, which determines how the whole institution will be run. Ensuring that the human resource practices are the same as the goals and objectives of the organization will have a constructive effect on the performance of the staffs in the institution. This chapter will talk about human resource practices in details and the environment within which these practices are executed.

With the huge increase in the rate of attrition of workforce in different organizations, the human resource management and human resource information systems are essential in ensuring competitive advantage in the market as well as employing quality employees and sustaining them. Without human resources in place, the institutions will face many difficulties. For instance, the main reason as to why organizations face difficulties in retaining core employees is because they only depend on bonuses and salary increment to prevent employees’ turnover. Fundamentally, many institutions are currently apprehending that employees’ preservation is a strategic factor and characterize a competitive advantage.

This chapter will demonstrate the relationship between human resource management department and the human resource information systems within the institutions and how the integration of the two aspects affect human resource practices like performance appraisal, personnel development as well as rewards and compensation. This demonstration will be done in the context of human resource architecture. It will also assess how job satisfaction, human resource management/leadership, employees empowerment, employees commitment, and precisely examine relevant literature to demonstrate various elements of human resource practices that are affected by the incorporation of the information technology into the human resource department.

HRM covers a wide range of events.Some of these areas includes;

incentives and work organizations,such as remuneration systems, system appraisal, career advancement and promotion.

On the other hand, work organizations refers to distribution of decision rights between workers, managers, job design, team working and information provision.

Human Resources Management

Overview

Human resource management is an important asset for any institution as it is a major cause of accomplishing competitive advantage. Human resource management has been classified into several features the most common aspect being strategic human resources management. This subsection of human resource management has become a significant topic for research. As a result, some basic theoretical issues have been accepted. Strategic human resource management has facilitated in the comprehension of the relationship among strategy, human resource management, human capital as well as performance in the organizations.

This concept has played a key role in the management practice and research over the last three decades. An analysis on the topic can add strategic value as it contributes to the organizational success. People are a critical element in the organization’s performance.

In higher learning institutions like universities, human resources are also referred to as intelligent capital. These are the numerous groups of employees who add their collective value of abilities, skills, knowledge, life experiences as well as inspiration for the growth of these institutions.

Human resource management confirms that human talent is used meritoriously and efficiently to achieve organizational objectives and goals. Two major aspects affect human Resource Management worldwide. They include changing workforce globalization and demographics. These forces cuts across the human resource management docket with the inclusion of higher learning institutions. As a result, it is becoming essential that human resources should understand these matters and strategize in order to have a direct contribution on the organizational strategies.

Effective HRM department of any institution should embrace aspects such as new recruitment techniques, compensation and remunerations practices, equal employment opportunity strategies, health, security programs and talent management approaches. Time and research has shown that HRM can make practical differences in terms of productivity, profit and quality of work.

Institutions of higher education universally continue to be the basis of intellectual skills and knowledge. Most universities have business related departments that instil human resource management and administrative skills into students. These students later become successful in managing corporations, small-scale businesses as well as firms. Even though these institutions produce such great achievers, they themselves have difficulties in managing their human resources.

In most organizations, the basic unit in corporations that is responsible for Human Resource Management is the department dealing with the Human Resources. Currently, most human resource divisions have grown into from traditional and partial roles as custodians of personnel information to more complex strategic approaches. Not only does the HR department practice HR management duties, but also other sections of the organizations practice HR activities as well as policies.

Without a human resource department and the management, an organization would collapse from within. There are some expectations with regard to Human Resource Management and its relationship to the employees. Some of these expectations include making use of talents, abilities and skills of the workers to attain the objectives of the company. Additionally, another expectation relates to provision of secure and conducive working environment where the workers feel free to contribute to the growth of the organization.

In the recent past, the HRM has become more than just a firing and hiring department. It has turned into a section where people search for answers for their benefit. This further entails employee development as well as training.

Components of human resource management wheels

The figure above represents the main functions of the Human Resource Management.

Modern human resource management is steered by numerous principles. The most important principal is the fact that this aspect of the organization is the most crucial asset of the organization. A business is the same as dead if this resource is not well managed. Another principle guiding this resource is clearly elaborated by Michael Armstrong in his book, which stated that the attainment of the business would be realized if policies and procedures guiding the personnel were closely interconnected. The third principal holds that the HR is responsible for finding, securing, guiding and developing employees whose desires and talents are compatible with the operations of the company. Therefore, Armstrong summarized HRM as a strategic tactic in the acquisition, development, inspiration and management of the companies’ human resource management.

Historical development

Human Resource Management refers to the management of persons and their work in line with the potential achievements of the institutions in which they work. HRM is a fundamental task in any company in which persons are employed. An organization cannot survive without ensuring that it attempts to manage its workforce. Initially, Human resource Management was termed as personnel management until its name was change in the early 1960s.

The roots of Human Resource Management lie deep into the past. Over a hundred years, the Human Resource profession has evolved theatrically. Just the way duties are allocated to different people in the modern organizations, human beings in the ancient communities divided work among themselves. Division of tasks among people has been in practice since the prehistoric period. Family groups were allocated tasks according to the skills they had. For instance, individuals that had the ability to track animals were given that responsibility of hunting and gathering; those that had the capability of finding food plants were given the same duty of finding and collecting food for the families and the community. Some cultures customarily assigned tasks to certain groups. Modern Human Resource Management aims at identifying and developing the best individuals for particular jobs regardless of their class, gender and background.

Roles and tasks for males and females were determined by social customs. As technology and civilization evolved, there was specialization that led to creation of different types of work. Every generation considers that their problems and achievements are greater than those for the past. Human Resource Management in the ancient times was shown through organization in the tasks being done. For instance, large numbers of people were organized to build fortresses, pyramids and irrigation systems. This implies that Human resource does not originate from the modern world but started out in the ancient times. Leadership, organization and power have been matters of debate and study for many years. A 5000-year-old Sumerian text known as The Farmer’s Almanac is considered to show the oldest form of Human Resource Management practice. This is because it contains beneficial tips on how labourers in a farm are supervised. According to the text, farmers are advised to prepare an assortment of goads and whips to keep beasts and men working hard. No interruptions were to be allowed to the extent that planting barley seeds had to be supervised closely due to the untrustworthiness of the labourers.

It is evident that individuals perform their duties within an extensive environmental setting. Adam Smith published ‘An Inquiry into the Nature and Causes of the Wealth of Nations’ in 1776 with the core message of emphasizing the critical nature of dividing labour in order to achieve increased productivity.

In the past ten years, there has been a deep connection between HRM and the studies relating to strategic management. This has further established a link with organizational theories. Judging by the research conducted by other scholars, HRM has refused to act as a single thing. This implies that not only does it cover a vast array of styles but also covers three major fields of knowledge namely, Micro HRM, Strategic HRM and International HRM.

Micro HRM entails covering sub functions of the Human Resource policies and practices. This concept can further be divided into two main categories. The largest category is related to managing small groups and individuals with the inclusion of such areas as selection, recruitment, induction, performance management and remuneration.

The extent to which research in the Human Resource sub functions has evolved over the years such as human resource development can justifiably claim to be fields in their own rights. In addition, most of these sub functional fields represents recurrent organizational processes that come about with major costs as well as offering opportunities to rally performance.

Another major field within the Human resource Management docket is the Strategic HRM. Although it has been mentioned earlier on in the text, it is more concerned with logical questions and matters of thoughtful consequences. Strategic Human Resource Management focuses greatly on the overall Human Resource approaches adopted by companies and business units as well as measuring their influences on performance. Much of the ‘big push’ in the identification of the field of Human Resource Management resulted from landmark tasks during the 1980s. In this context, it was stated that both the general managers and HR personnel should be concerned about the department within their organizations.

International Human Resource Management is yet another domain that has led to the evolution and development of the HRM docket. One characteristic of this concept is that it is less engaged with the theoretical bridges, which are considered crucial in the other two domains. It majorly concerns itself with Human Resource Management in firms operational across national boundaries. This is a combination of micro and macro with a strong tradition of work on HR sub functions such as remuneration and selection. These three major subdomains have been developing parallel to each other.

Human Resource Management dealt with the supervision of labour as well as collective bargaining and approaches of workforce domination. During the 1920s, HRM was referred to as personnel management which implied that the study of work and occupation from the employer’s point of view. Its major focus was on the goals of employers, the activities employers used to motivate, attract, retain and improve the labour contribution of employees. The workers are seen as a means to an end.

The term HRM also started as industrial relations in the early 1950s. The meanings of this term remained unchanged up to the early 1960s. By this time, personnel management was under the umbrella of industrial relations. Industrial relations thus covered all aspects of activities that acted as security for efficient collaboration of work force resources. It further covered both systematized and unorganized employment relations.

Whatever was standard terminology during the 1960s is no longer the terminology currently. New meanings have emerged hence threatening the existence of older meaning of terms. For instance, there was the replacement of the terms personnel management and industrial relations by the term human resource management. Human resources and management of human resources have scattered all over in various writings preceding the 1960s. Human resources terminology was originally used in a substitute sense in the ordinary literature during the 1964 where Myers, Malm and Pigors renamed their personnel management text to Management of Human Resources. Within the same year, Wendell French published the first publication of his manuscript ‘The Personnel Management Process: Human Resources Administration’.

The inspiration behind the use of the term Human Resource came from the public lecture, which was given by economist Wight Bakke in 1954 on ‘The Human Resource Function’. In his lecture, Wight defines Human Resource Management function in relation to management of people in corporations. Additionally, the inspiration also came from the research that other scholars such as Frederick Harbison, Myers were conducting in the late 1950s on the role of labour as a factor in economic growth and development. In this context, these scholars used the word human resource in numerous publications. For example, ‘Human Resources for Egyptian Enterprises’ by Ibrahim and Harbison. Between 1960 and 1970s, the terms ‘human resources’ and ‘personnel’ were mostly used interchangeably. However, in the beginning of the early 1980s, the sentiments began to change drastically in favour of the Human Resource term. For instance, in 1989, main professional association for personnel managers altered its name from American Society for Personnel Administration to Society for Human Resource Management. The shift in the use of the term was reflected in the industry where titles of the top management embraced the term Human Resources. The title Vice President for Industrial Relations and Personnel that reigned through the 1960s transformed to Vice President of Human resources. On the same note, most academic institutions during the mid-1990s altered their courses and renamed their majors from personnel to include human resource management. Most of the written textbooks dropped the term personnel as the authors embraced the new term HRM.

Accompanying the alteration of the term was a gradual change in the outlook about both the conceptualization of the field as well as the philosophy behind the term. The new point of view is captured well by Ferris, Dulebohn and Stodd. These academicians stated that the meaning of the term Human Resource Management is diverse from personnel management in several ways as mentioned below;

Whereas Personnel Management refers to human resources as expenses, Human Resource Management refers to an organizational stress on human resources as assets of an organization.

Secondly, Personnel Management implies a group of distinct human resource administrative sub functions and maintenance activities that are passive, reactive and secondary to other significant business roles. On the other hand, Human Resource Management shows a proactive approach, an assimilation of human resource sub functions and an improvement and expansion of the function, position and premeditated importance of HRM inside the organization.

Despite all the emphasis on HRM, industrial Relations has not yet completely lost its wider focus in the academic world. The final implication for the word ‘industrial relations’ is still unclear. The still exists some confusion in the meaning between Human Resource and Industrial Relations.

Just like any literary material, scholars have their own points of view with regard to the historical development of human resource management. According to Haslinda, A. an Associate Professor in the Faculty of economics and management, the history of Human Resource Management is said to have originated from England during the 1800s during the apprenticeship and artisans era. It further established with the emergence of industrial revolution in the late 1800s. In the 1920s, there was a drastic change in technology, rise of unions as well as the development of organizations. These factors resulted to the need for the establishment of personnel departments. With the establishment of these departments, welfare secretaries were appointed.

In his article, Haslinda states that some scholars, some of whom have been mentioned earlier on in the text, stated that HRM came from the term Personnel Management that emerged after the World War in 1945. Personnel practitioners tried to detach themselves from other managerial tasks as they made personnel function into professional management roles. Conventionally, personnel management were given the task of hiring and firing personnel within the organization instead of paying salaries and training new employees. Criticisms emerged, as there were fears of ambiguity conveyed about the role of personnel management. There were complaints regarding the response to varying circumstances and situations. Because of the criticisms and concerns, the term Human Resource Management replaced term Personnel Management.

Figure below shows how names carrying the same meaning as human resource over the years. The figure shows how reactive the profession has been to alterations in the economic as well as social realities of the time. In line with the figure, the boom and the bust economic history for the last twenty years has formed greatly what the human resource was supposed to support.

The HR department and functions went from being challenged with recruitment, compensation strategies and retention during the boom period to challenges in relation to restructuring, downsizing as well as outplacement in times of busts.

The Reactivity of Human Resource in its evolution

Decade
Business Realities
HR name changes
Issues
Pre-1900
Small Business & Guilds
Did not exist
Owenrs owned the HR issues
1900
Industrial revolution
Labour Relations
People of interchangeable parts
1920
Civil Service & WWI
Industrial relations
Workers` rights and more formalized processes
1940
Scientific Management & WW II
Personnel Administration
Efficiency experts and more highly evolved HR processes
1960
Civil Rights & Compliance
Personnel
Legal compliance and reporting; policy police
1980
Human Relations, Service Economy
Human Resource People
Relevance in fact changing world; motivation & human relations theories abound
2000
Modern Organizations
Organizations Effectiveness? Human Capital? Orgnzaitional capability
No new official names but lots of morphing as the transformational parts get defined
2010
Global Economy and E-enabled technology
TBD
Still evolving, focus on talent, capability, consulting and culture.

Throughout the development of human resource as a profession, there has been tension between the roles of a business leader and employee advocate. Human Resource must serve the needs of the business as well as the needs of the employees. At times, handling these two issues is usually difficult.

Even though many models representing modern HR have been developed, the most well accepted and articulated model is ‘The Extended Ulrich Model’, which was developed by David Ulrich in his book Human Resource Champions in 1997. Apparently, the model still works ten years later. This resulted to Ulrich extending the concept in 2005 through his book The HR Value Proposition. The model is elaborated in figure three below.

Four Roles and Sixteen Accountabilities

Day to day operational focus
Day to day operational focus

This model is a two by two model that represents the focus on processes and people on the horizontal axis and day-to-day operational focus and future-strategic focus on the vertical axis. The model is represented in the book, HR Champions. The sixteen accountabilities have been divided into the four roles to facilitate the exploration and differentiation of the transformational parts of the HR as well as the transactional parts.

Definitions

Many definitions of human resource management have been suggested by intellectuals from a simple short definition to a lengthy complex definition. Based on the way different scholars were brought, there have been alterations in the meanings of the term human resource management. This is despite the fact that the term carries the same meaning across all definitions. Concisely, human resource management refers to the process of managing human talents to attain the objectives of an organization. Managing human talents entails the process of selection, recruitment, industrial and labour relations as well as management of employee’s safety and health in firms.

According to the business dictionary, human resource management refers to the process of hiring and developing workers so that they are transformed into more useful members of the organization. Additionally, the term includes activities such as planning personnel requirements, conducting job analysis, recruiting qualified people for the tasks within the organization, orientation and training, providing incentives and benefits, managing the payment schedule such as wages and salaries. This definition further provides additional components of Human Resource Management as evaluation of performance, communicating with workers at all levels of the organization and resolving disputes.

Some of the main qualities of human resource management include extensive knowledge of the operating industry, efficient negotiation skills as well as leadership roles.

According to USLEGAL.COM, human resource management is a function that helps the organizations in attaining set goals by maintaining and obtaining effective as well as efficient employees. Additionally, human resource management is considered a term used in describing formal systems created for the management of people in an organization. The responsibilities of a human resource personnel, falls into three areas namely employee compensation and benefits, and designing work.

Fundamentally, the purpose of the human resource management is to increase the productivity of the organization by enhancing the efficiency of its employees. As Edward Gubman puts it in the journal of business strategy, the core mission of human resources will continuously be to develop, acquire and retain talent. In the recent years, recognition of the criticality of human resource department of the organization has increased dramatically. This is contrary to the fact that it was classified in the lower stages of the organizations’ hierarchy. This recognition of the HR department by organizations has extended to the smaller organizations since employing the right persons and training them well will ensure the long-term existence of the small businesses.

Peter Drucker used the word human resource management in the early 1950s in Northern America. During that time, it had no special meaning as it simply acted as label for the term personnel management. However, by 1980s, the term acquired the meaning as a completely different philosophy and style to the management of individuals at work with an emphasis on workers’ commitment, performance and rewards based on sole or team contribution. This was contrary to the traditional aspects of the meaning of the term personnel management.

HRM was characterized by the fact that it encouraged the devolution of many aspects of people management from specialists to line managers. Even though most individuals see human resource management as a pretentious labelling of the term personnel management, management theorists consider it crucial in the survival and success of firms in the twenty first century. The ideology behind their stand lies in the fact people’s skills; creativity and knowledge are the key resource for both economic and organizational success in what Peter called it ‘the knowledge-based economy’.

Pakistan Business review defines human resource as the source of achieving competitive advantage due to its capability to transform other resources such as machine, money, material and methods in order to produce output. Khatri considers people to the most crucial in an organization as they provide flexibility and malleability to organizations. Human resource is adaptive in determining how firms respond to competitive environment and firms. Even though people are the best resource in any organization, managing them is more difficult than managing capital and technology. Institutions that manage their human resource well have an upper hand in ensuring huge profits within their operations.

The school of business, economics and law in the University of Gothenburg defines human resource management as an organizational function that concerns itself with recruiting, developing, managing and encouraging individuals by providing both practical and specialized support for employees’ engagement. HRM is also a unique approach that relates to the management of employees and its ability to realize competitive advantage through the tactical distribution of most experienced and talented employees. The employees in this context are not seen as costs but assets to be developed.

According to the internationalization of human resource management by Randall S. Schuler, human resource management is considered the basis of comparative HRM, Strategic HRM and International HRM. Human resource being a vital function within an organization engages every individual within the institution. It involves all management resolutions and actions that disturb the nature of the relationship between the employees and the organization.

According to Bratton and Gold, 1991, HRM is that section of the management practice that concentrates in the management of people within the organizations. In their presentation, they state that HRM stresses on the importance of employees in achieving sustainable competitive advantage. Furthermore, human resource practices require to be integrated with corporate strategies to meet the objectives of the organization and efficiency.

Noon, 1992, asks whether human resource management is a map, a theory or a model. This is because there has been many controversies in coming up with a standard meaning of the term human resource management. Furthermore, these scholars state that since it is meant to inspire, explaining it would result to its destruction.

Nonetheless, human resource management is a distinct approach to employment supervision, which aims at achieving competitive advantage via the strategic placement of highly committed workforce using an combined selection of cultural and personnel techniques.

Below highlights the key elements that variously describe the definition of the term human resource management.

1. Beliefs

Human resource gives competitive edge

Aim is to ensure employee commitment and not compliance only

Employees should be carefully selected and nurtured

2. Strategic qualities

Due to the above factors, HR decisions are strategically crucial

Top management should be involved a great deal

HR policies should be incorporated in to the business strategy

3. Crucial role of managers

Since HR practices are important to the main activities of the companies, they should be left to specialists alone

Line managers should be involved both as deliverers and drivers of Human resource policies

Much attention should be paid to the management of managers.

4. Key levers

It is critical to manage culture than to manage systems and procedures

There should be an integrated action on communication, training, reward, selection and development

There should also restructuring and redesigning of jobs to allow devolved empowerment and responsibility.

The first element concerns itself with assumptions and beliefs. The most important of this is the fact that the human resource that makes the difference. Human capability and commitment determines whether an organization will be successful among the many existing organizations. Human resource should be nurtured as valuable assets and not incidental costs. Another belief relates to commitment. Much attention should be given to commitment rather than compliance with the regulations and the rules from employees.

The second element emphasizes on strategy. The fact that human resource management relies greatly on strategic importance requires maximum attention of the senior management. This fact stems from the belief on competitive advantage.

The third and fourth elements also play a key role in human resource management just like the first two elements.

According to Huselid, 1995 in a study involving 900 different organizations suggested that human resource practices could be categorized into two groups: those HR practices that enhance employees’ skills and those that enhance motivation of the employees. Some of the skills enhancing human, resource practice include employee selection and training practices and they are highly associated with financial performance and turnover. On the other hand, motivation-enhancing HR practices include compensation, performance appraisal and are usually associated with measures of productivity. The common subject is to use a system of management practices that gives employees skills, motivation, information, and attitude thus resulting to a workforce that is a source of competitive advantage.

In the 1970s, there was an assumption that incentive pay would continuously drop in importance. This ideology was due to the fact that traditional unskilful jobs with piece rate enticements were reducing and white collar jobs with stable remunerations and promotion-based enticements were increasing.

Many researches on human resource management practices have been carried out from time to time. These researchers have found different practices going by different names. Scholars more often than not refer to certain sets of human resource practices as best practice or high performance practices. Theories on best human resource practices suggest that internationally, several human resources practices are linked to improved performance of the organizations. Research shows that those workers who are well paid and well inspired generate high productivity gains hence lowering the cost per unit.

Of the several attempts to determine the best human resource practices, several practices were identified, all falling under the two categories mentioned above.

There are several human resource management key factors that determine effective performance of employees in any organization. These include recruitment strategies, employees` pay and benefits philosophy, training and employees` career development system, employees` support programs, organization structure and culture among other factors. To effectively retain high-quality employees in organization, these factors should be managed harmoniously. Major factors to consider includes employment security, extensive training, sharing information, selective hiring, self-coordinated and managed teams, decrease in status difference, evaluation and supervision and high compensation based on organizational performance.

Employment security

Organizations should ensure security of their employees. Employees who are ever worried about losing their jobs would not concentrate in their work places hence their productivity level will reduce. In literature, employment security usually refers to protection against unjustified dismissals. According to most commonly used definitions, employment security refers to workers having protection against arbitrary dismissal from their employment. Employment security is considered one of the key elements in ensuring great performance in an organization. In addition to employment security, job satisfaction plays a great role in ensuring that there is high productivity and high quality output.

Since the human resource department is entrusted with the responsibility of hiring and firing the employees, it should use these powers well. Employees should always be given an opportunity to defend themselves in case there are claims that they have violated the terms of employment. Threats of firing should be avoided since this brings tension among the employees hence reducing the productivity of the same workers in their lines of duty. If this entire factor is considered, there would be no friction between the employees and the human resource department.

When organization staffs predict that there is job security in an organization, they usually tend to maximize the utilization rate of their skills and competencies in contributing to organization production. Job security translates to job satisfaction, thus leading to high retention rates of staffs in an organization. In other words, most employees who are satisfied with the kind of job their do in an organization tend to show more commitment on organization activities.

When employees` job security is higher, their intention to stay in the organization also increases. Therefore, human resource managers are always more concerned with the job security when making human resource practices decisions since it contribute significantly towards satisfaction of their employees, thus altering their retention rates in the organization. It is clear that job insecurity is linked with negative results such as decrease in job satisfaction, increase in quitting intentions, decrease in trust, and low organization commitment. Therefore, to stop job insecurity in an organization, the authority should promote the well-being of the employees at workplace. Additionally, organizations should assess and determine alternatives that help in dealing with job insecurities.

Extensive training

This refers to a process where employees obtain the capabilities to do their jobs. This is a crucial step in ensuring the growth of an organization. Training is directly proportional to employee performance. Training ensures that employees reach their full potential hence ensuring high levels of productivity. A poorly trained workforce will perform dismally.

Extensive training ensures that the employees are up to date with the environment within their specific work places. The human resource department should equip their employees with the necessary skills that are up to date to ensure that there is efficiency in the tasks carried out within those industries. This will help especially when new procedures in carrying out certain task are needed for a project to be completed in time. Extensive training should be done annually and should be on a rotational basis in the sense that the training goes from one department to the next.

Some other benefits of extensive training includes, familiarizing new employees with the organizational mission, rules and working conditions to ensure high performance from them. Existing employees are trained to ensure that they are more knowledgeable. Training ensures that there is a reduction in accidents, improved morale of the employees. These factors will result in improved productivity.

It has been revealed that many organizations are using training and career development opportunities to increase employees` marketability. Conventionally, it is known that if an organization makes its employees marketable, they will leave when their first opportunity comes. Nevertheless, currently, organizations are realizing that the more employees become trained, the more they are likely to stay in the organization. Undeniably, when training ends, the turnover is likely to start.

Training acts as a symbol of workers` commitment. Numerous organizations have acknowledged that offering training and development opportunities to the employees is a significant step towards attracting and retaining the best employee in the organization, thus high performance and productivity. This has increasingly become a significant part of human resource management.

Information sharing

Information sharing refers to spreading information to the employees regarding a certain aspect affecting the operations of the organization. This can also be termed as communication. In case of a problem, the employees will be able to attend to it as soon as the information on that particular issue has been shared. This will ensure effective operation of the workforce hence increased productivity.

The main reason as to why employees seek to share information is to learn. Employees who are more enthusiastic about learning consider it very important since they would not be able to explain some well aspects well enough to their peers unless they understand the concept fully. If employees are inspired to share the acquired information, there will be a high performance in their duties since they will be able to teach their peers how to tackle some tasks.

The human resource department should therefore share information with the personnel in charge of various departments so that they can share with their subordinates whom they are closer to.

Selective hiring

This refers to selecting individuals with specific qualities and credentials. The HR department should hire individuals who have the necessary skills in doing the tasks that are within the operations of the organization. The department cannot hire an individual who does not have the necessary skills for carrying out the duties of the organization. In this case, selection should be open. In advertising for vacancies, specific qualifications should be highlighted. Being open in selecting the right workforce will motivate the workforce to work harder if employed.

In addition, the concept of selection demonstrates how people and jobs are matched based on their qualification, knowledge, ability and skills. Because of the complexity of work, some organizations use different criteria in selection procedures in order to capture job applicants with high capabilities to execute their work. It has being revealed that employees gravitate to their jobs with complexity levels to commensurate with their ability. However, selection should improve the fit between job applicants and work related aspects, such as organization fit and personality fit.

The concept of organizational fit identifies convergent values and goals that occur between organization and individual as a significant element to effective commitment. Organization fit can be defined as “an individual`s willingness to cooperate in an organization as cohesion and proposed that its immediate cause is the disposition necessary to sticking together”. Following this definition, selection should therefore consider improving fit between the organization culture and an applicant`s values.

The procedure in selecting the personnel involves three stages, which include, planning, implementing and evaluation.

The figure below elaborates further in the criteria of hiring employees.

Compensation is a key human resource factor that determines attraction and high retention rates of employees in an organization. Most organization often offers remuneration packages that are superior to market for critical talent. These include;

  • Bonuses,
  • Stock options, and
  • Special remuneration premiums.

It is believed that most companies with the best employees’ value remuneration packages of their employee, and this has ensured a high competitive advantage. A good strategy that is currently been utilized by numerous organization is the innovative compensation which focuses on attracting and retaining employees, regardless of their pay.

Wages have demonstrated significant influence on recruitment and retention rates of employees, but this study recognizes that pay alone cannot be enough to influence retention rates of workers in an organization. In practice, pay or remuneration is treated as just a single factor and in many occasions measured with little precision. An organization should not only communicate and emphasize its overall compensation package to all its employees, but also other vital elements of employment, such as providing support life style balance initiatives and flexible work engagements. These are non-monetary values commonly referred to as intrinsic rewards and have significant influence in compensation satisfaction and retention rates of employees in an organization.

Studies have revealed that employees would remain in an organization so long as they are well rewarded. Most of them are rewarded based on the quality performance. Research has revealed that employees will tend to remain in the organization if they feel that their performance contributions, efforts, and capabilities are acknowledged and valued. Therefore, organizations should make good use of reward systems to effectively differentiate the rewards of their top performing employees, thus leading to an increase in return on investment (ROI) on their human resource investments.

Depending on the effort put in covering tasks, employees should be compensated differently. Employees that are more aggressive should be rewarded more for their effort. It is within the mandate of the human resource management through the responsible personnel in evaluating different levels of jobs in order to come up with appropriate rewards in form of increased pay and incentive packages.

Self-coordinated and managed teams through enhanced personal relations

Relationship between the employees and their bosses needs to be nurtured to avoid disputes and conflicts. This will reduce chances of unproductive behaviour arising. The human resource department is well placed as it handles the hiring and conduct of the employees. A well-coordinated workforce will ensure high productivity hence increased profits.

Status difference

This refers to the leadership role within the organization. Due to shared sense of purpose between the employers and employees, there should be uncontrolled and unsupervised mechanism of coordination. This is because every individual knows what is expected of him or her. In this context, there should be a balance between minimizing improbability and coping with uncertainty that creates stability and flexibility. When uncertainty is minimized, there would be high standardization, high levels of automation.

Evaluation and supervision

Organizational practices play a key role not only in employees’ promotion and advancement but also on their commitment to the organization. In most companies, promotion to a higher pay grade is a basic human resource need for consistent employment as an extension agent. Research has shown that commitment and retention rates of employees are strongly determined by the results of early career evaluations. According to research, employees receiving bad feedback are always less committed and are more likely to leave an organization. On contrary, those that receive positive feedback are always commitment to their job and more willing to remain working in the organization. It is the duty of the human resource department to ensure that its personnel are working efficiently through frequent evaluation and supervision so as to attain the goals of the organization.

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