Thesis Defence Presentation

8/10/2019 Thesis Defence Presentation

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THE IMPACT OF HUMAN RESOURCEMANAGEMENT ON ORGANIZATIONAL

PERFORMANCE

A Case Study of Private Banks in T.R.N.C

By

Ugonna I. AGUTA

Supervisor

Assoc. Prof. Dr. Hasret BALCIOGLU


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Table of ContentIntroductionLiterature ReviewMethodology

AnalysisRecommendation and ConclusionLimitation

References


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INTRODUCTION

This research tried to gain an insight on humanresource management practices and its outcomes inTurkish Republic of North Cyprus TRNC private sectorbanks and also explores the human resourcemanagement HRM practices on organizationalperformance (private banks in TRNC)

Problem of the Study

The study was focused on HRM practices and itoutcomes as well as the impact of HRM practices onperformance of private sector banks in North Cyprus


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The research objectives are as follow

What are the outcomes of HRM practicesof banks in North Cyprus?

How do HRM practices impact onemployee retention, employee satisfactionand employee commitment?

How do HRM practices impact onperformance of banks in North Cyprus?


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Significance of the Study

This study addresses this margin in the literature inrelation to banking industry in TRNC

The research will attempt to provide solution to, whatare the HRM outcomes of the HRM practices of privatesector banks in TRNC?

How do HRM practices impact employee satisfaction,commitment and retention?


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How do HRM practices impact on performanceof private sector banks in TRNC?

what HRM practices are positively related to HRoutcome? and which of these HRM practices areabsolutely related with bank performance.

The findings of this research will be useful tomanagers to study the success of HR practiceswhich are presently implemented by them.

The outcomes of this research can be used toenhance the performance of private sector banks

in TRNC.


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Literature Review

In order to present the theoretical and methodologicalunderlying principle for this research, this chapterlooks at the literature on

HRM practices and their outcomes.

The effect of HRM practices on organizationalperformance

the link between HRM practices, their outcomes andorganizational performance.


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Human Resource (HR) and Human Resource

Management (HRM)

In these difficult business times, which has beenbrought about by changes in global price

competitiveness, change in technology, changes in thelabor laws, and also the composition of the workforcehas become a challenge to utilize properly bymanagers in other to have a competitive advantage.

I have tried to find out how Human resources help theorganization to attain its strategic plans.


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Literature cont

Human resource management is defined as astrategic and a consistent manner to which anorganization manage its most valued humanassets which are individually and as a group

work together for the attainment of its goal.

HRM is a planned and coordinated approachin which a companys most valued assets are

being managed-these are the people who areworking in the organization, collectively or asindividuals to achieve its set goals. (Armstrong,

(2006: p 3))


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Literature cont

HRM involves developing of a persons abilities

and attitudes in a way that allows the individualto grow and make contributions to the interest ofthe organization (Lee, Wu and Lee, (2010: 21, pp1351-1372)).

The Strategic Human Resource Management(SHRM) involves,

A combination of a bundle of HRM practicesand policies that when put together bring aboutsuperior employee performance.


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Literature cont

HRM practices are aimed at meeting two

set of goals : to improve the performance ofthe workers and also improve the overallorganizational effectiveness. (Storey, (1995: p

16)),The making and carrying out of HRpolicies and practices.It brings about employee competence andthe required behaviors needed by thecompany to meet its strategic aims.


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Literature ContHRM operates through the use of the HRsystem that integrates the following

HR philosophy,HR practices,HR strategies,

HR policies,HR processes, andHR programs

Aspects of IntegrationThe integration of HR policies and practicesfor them to complement one another and toaid the achievement of strategic goal.


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Literature cont

Creation of the awareness of theimportance of HRM to the line managers

To make the workers get in line with the

business in other to make them moreinvolved or show much interest in theorganization.

HUMAN RESOURCES OUTCOMESJob SatisfactionOrganizational Commitment

Motivation


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Job SatisfactionThe innermost sense of fulfillment a person get

and the joy they have knowing fully well that aparticular job is being accomplished

The attitude people show and the feeling theyhave towards their work

A positive and a favorable behavior towards

work

Job satisfaction brings about a sense offulfillment and security to the employee


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Job satisfaction contDue to these facts, the commitment level ofemployee will be increased, absenteeism willreduce and the turnover rate will decrease

Work environment like union membership,size of the workplaces and the effect of stableand parttime jobs add to the job satisfactionof the staff.

Job satisfaction is also influenced by theblend of job requirements with other roles

such as family roles


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Organizational CommitmentAbility of an employee to identify with an

organization

Showing a strong desire to continually be apart of the organization

Have a strong belief in and accept the goalsand the values of the organization

Display a readiness to put in a great amountof effort on behalf of the organization


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Organizational commitment cont

Workers will be more creative if allowed to

exhibit and make decisions of their own.

Management should encourage employees tocontribute and help them to attain satisfaction in

their job

Job commitment brings about upright and self

direction, less absenteeism, normal supervisionand a dedicated effort.

Commitment is related to loyalty and intension

to stay


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MotivationA psychological driving force that tends to

compel an action or reinforce it towards an action.It bring about minimization of physical pain,increased pleasure and a basic impulse to optimizewell beingWell motivated workers will give more to theorganizationWorkers who are well motivated are more

productive at workplace.When employees are motivated, they help theorganization to survive.This is the most complex aspect of management


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Human Resource Management Practices

Here are some of the HRM practices used in otherto make an impact in organizational performance.Training and DevelopmentTrainingis the systematic and plannedinstruction activities that are used to promote

learning

Developmentis the unfolding procedureswhich allows employees to move from one level ofunderstanding and capability to an advancedstate whereby a higher level of skills, knowledgeand competences are required.


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Training & dev cont

Training and employee development form the

core components in most formation of HRMTraining increases the efficiency and theeffectiveness of both workers and the employerTraining and development should be related to

the employees area of job description.Organization must only indulge its employeeson training activities which are going to

accomplish organizational objectives, , such asmore effective ways of production, improvementof the quality of products and services, or thereduction in the cost of operation


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Recruitment and SelectionRecruitmentIs the process of attracting

prospective employees and getting them toapply for a job opportunity in theorganization i.e. hiring the right kind of

candidates on the right job.

Selectionis the means where by individualsare picked who have got the adequatequalifications to fill an employmentopportunity in an organization.


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Recruit and select cont

Objectives of a Well Planned RecruitmentProcess

A good recruitment and selection strategy bringsabout an improvement in the organizations

performance.It the upgrades the quality and productivity ofthe organization.Recruitment of prospective employees with

the potentials and capabilities for growth.The ability to recruit candidates withqualifications that will bring about success.

Keeping the turnover rate at a minimum level.


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Recruit and Select cont

The removal of guesswork during the selection

process, and reduction of lost time because ofopen position.Specification of the competences andbehavioral characteristics required of employees.


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CompensationAll manner of pay which is due to the

employee as an outcome of their employment.Creation of strategies and policies to rewardpeople justly and equally.

Well compensated workers will performbetterAll inclusive compensation package isprovided to attract, retain and motivate

employees.It also helps to increase the level ofcommitment of an employee to the

organization.


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Performance EvaluationProvides the organization with all employee

accurate information about their level of jobperformance.Shows the efficiency and effectiveness ofeach member staff.

It is useful to the employees for them to knowtheir strength and weaknesses.To know the gap in knowledge between the

workers, their job functions and technology tocarry these duties outDetermine employee rewards used in HR

planning and recruitment and selection.


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Promotional PracticesA Shift of position from a job position of highersignificance and compensation to a higher one.More responsibility and grade level and animproved compensation package.Leads to higher organizational performance and

commitment of such an employee.A way of rewarding exceptional performanceFilling of vacant positions in the company withemployees who are loyal and well tested.The opportunities to opt career within anorganizationPromoted employees feel more satisfied and

motivated.


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Research MethodologyThe research was carried out through a

quantitative survey method.Primary data was gotten by the use of astructured questionnaire.. The form of these questions may be opened or

closed ended (Kothari, (2004: p 101)).The respondents were approached beforehand toseek their willingness to participate in the

research.The research covers two private commercialbanks in TRNC. This was influenced by the reasonin which the survey was conducted and the budget

that was made for it. (SPSS, (2008: p 5))


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The sample includes all managerial and non-managerial staff from all the departments and

branches of the two selected banks.In other words purposive sampling was used todetermine who the respondents were. (SPSS,(2008: p 5))To determine the sample size, a list of the eligiblerespondents was gotten from the various HRdepartments of the banks. (Khan,(2010:24, pp 157-

158)).A total number of 335 questionnaires weredistributed (Credit West bank 213 and Turkish bank122) a total number of 214 was valid.


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The questionnaire was developed through amethod adopted from SPSS survey tips.

Only closed ended questions were asked.21 questions were adopted from my literaturereview for the purpose of this studyA five point Likert scale was used.

The last option being a neutral one to giverespondents with divided opinion the room to alsohave a say rather than skip such question (SPSS,

(2008: p 17)).The questionnaire was organized into foursections.


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Section A was on demography, B was onperception of HR Practices such as (staffing,

performance appraisal, training, social benefit andcompensation),Section 3 and 4 respectively where on HRoutcome (job satisfaction and organizationalcommitment).The questionnaire was developed in English andtranslated to Turkish by a lecturer in the language

school of Cyprus International University.


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Presentation and Analysis of DataData was analyzed with the use of SPSS

Frequency was used in the analysis ofdemographic data.The Sample includes 214 respondents who areworking in two commercial banks in differentdepartments and branches in TRNC


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Figure 1 Marital Status

n=214 Source July, 2013 by Researcher



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Figure 2. Gender distribution



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Figure 3 Designation



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Figure 4 Number of years put in



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Figure 5 Age of Respondents



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Figure 6 Qualification of Respondents



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The rest of the data was analyzed using simple linearregression and was also used in the generation of

hypothesis from data gotten from the respondents.The formula for regression is as follows

Y= a + bx

where

Y= unknown dependent variable

x= known independent variable

a= y intercept

b= slope of the line


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b > 0 Positive relationship between the two variables,meaning we can use independent variable (x) topredict the dependent variable (y) for significantcorrelation.

b < 0 Negative relationship between the variables, nullhypothesis would be accepted no significantrelationship

b = 0 no prediction prevail, the value of variable (x)would be the same with variable (y).

The regression analysis was performed using SPSSpackage with confidence interval level of 95% toarrival at a meaningful conclusion and the results areexplained below:


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Table 7

Descriptive Statistics for Regression to Determine Significant

Correlation Between Variable (x) Number of Years Put in and (y) My

Work Conditions are Good

Mean Std. Deviation N

Number of Years Put in 3.07 1.111 214

My Work Conditions are Good 2.00 1.066 214



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Table 8

Model Summary for Regression to Determine Significant Correlation

Between Variable (x) Number of Years Put in and (y) My Work Conditionsare Good

Model R R

Square

Adjusted

R Square

Std. Error

of the

Estimate

Change Statistics

R Square

Change

F

Change

df1 df2 Sig. F

Change

1 .135a .018 .014 1.104 .018 3.921 1 212 .049



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Model 95.0% Confidence Interval for B

UnstandardizedCoefficients

Std. Error

1 (Constant) 3.346 .161

My Work Conditions AreGood

-.140 .071

Table 9Coefficient Summary to Determine the Significant Correlation Between

Variable (x) Number of Years Put in and (y) My Work Conditions are Good


The result of table 7, 8 and 9 revealed that the nullhypothesis is accepted because the value of b (slope ofthe line) is negative, there is no significant correlationbetween the number of years put in and my work

conditions are good


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Conclusion and RecommendationsThe research found out that an ample of

practices were used by banks in TRNC.supervision and leadership in the banks shouldbe more cordial.The adoption of HPWS is positively related toemployee satisfaction, commitment, retentionand organizational performance ingeneral.(Henderson, (2010: p 27))

Bad HR practices defiantly leads to an increaseturnover and absenteeism.Bridge the gap in literature in relations toprivate sector banking in TRNC


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The study will help bank managers to knowwhich HR practices to adopt and also let them

know what HR practice bring about HRoutcome

Limitations

Due to limited information granted to me I wasunable to get data relating to bank performance

Language and transportation barriers.

Which HRM practices are positively affectingthe HRM outcome.

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