The Impact of Human Resource Management System on Employees’ Engagement & Organizational Growth

The Impact of Human Resource Management System on Employees’ Engagement & Organizational Growth

Introduction

Presently, there is economic instability globally, which forces an organization to look into a human being as an asset for enhancing the organization by utilizing their abilities, competencies, and knowledge to sustain the competition in the market industry. It is depicted that employees that are committed to their company and engaged in their work provide a critical role in competitive advantage edge due to higher productivity and reduced rate of workers turnover (Bratton & Gold, 2017). However, in any organization, there is a mixed population. Some of the employees are loyal and productive, others just putting in the time, and some being unhappy and spreading their discontent to other workers. Currently, sectors like manufacturing have increased expectations due to the rapid transformation taking place as a result of new technology systems, techniques, standards, and procedures that require the employees of an organization to keep up to the emerging trends (Suan & Nasurdin, 2016).

The majority of employers need employees who are engaged, such that they are proactive, committed to high-quality performance, collaborative, and take responsibility for what they do. However, it has been realized that the level of work engagement in a manufacturing organization is deficient as employees are not placed in their work. Therefore, with the right system of human resource management, there is increased employee engagement and organizational growth. Thus, in this proposal, it is proposed the impact of the human resource management system, specifically focusing on employees’ engagement and organization growth (Sattar et al., 2015).

Statement of the problem

Engagement of employees and organization growth is the prime focus of academic researchers and business organizations, and it forms a significant issue or area of research in a modern business environment. Any organization is entitled to providing an atmosphere that promotes individual employees’ potential, and without having an understanding of this concept, it becomes in vain for managers to come up with strategies that are effective in their organization. Studies show that there has been a lack of active employees’ engagement in most organizations, thereby leading to a loss of sales revenue (Bakker & Albrecht, 2018). Thus, it is essential to have a system that promotes employee engagement and contribute to performance and organizational growth. It is asserted that each organization yearns to gain a competitive market advantage edge, and it is through the commitment of employees that this can be achieved as it measures the vigor of the company and its orientation in line with superior performance. Nowadays, the majority of the organization has put a focus on measuring the engagement of workers rather than improving the engagement, which has become a hindrance to increasing performance or achieving lasting goals. Therefore, by having a human resource management system will help clear the barriers to engagement and promote organization growth (Debroux, 2017).

Literature Review

Work Engagement

It is a concept of business management, and it is defined in diverse ways by scholars. Based on Schaufeli, engagement of work is defined as a state of mind that is positive, work-related, and characterized by dedication, vigor, and absorption. Vigor implies mental resilience at work and a high level of energy possessed by someone even though he or she is faced with difficulties. Absorption referred to as the focus of an individual and that he or she is occupied at work happily (Armstrong & Taylor, 2020).

On the other hand, dedication entails the inspiration, involvement, and enthusiasm attached to the work. Also, work engagement was defined as the intensified connection between work and employees, business, or the individual being worked for or with. Work engagement is asserted as a persistent and positive affective-cognitive state of mind, and it is measured using a nine-item Utrecht work engagement scale (Bratton & Gold, 2017).

Employees that are highly engaged have the tendency of being pleased in terms of their desires and needs that eventually lead to their contentment and retention. Provided the concept of work engagement, its significance by the literature is depicted that more studies are required to be conducted to have a clear understanding of factors that are attributed to it (Chacko & Conway, 2019). Various researches depict a positive relationship between human resource management practices and measures of organizational performance. Human resource management practices were described to relate to organization productivity and worker engagement. Workers who are engaged are energetic and are self-driven towards completing their tasks as well as perceiving themselves as being capable of handling challenges that arise from their work (Siddiqui & Sahar, 2019).

Human Resource Management

The proposal examines the impact of the human resource management system on employees’ engagement and organization growth. An employer has to have or lies with the HRM systems to increase or have a productive workforce. By definition, human resource management entails a system of governance that is unitary and attempting to elicit the involvement and commitment of employees following the organization’s purpose and goal. By definition, human resources is a strategic and logical approach to the organization management that is the most valued asset due to its involvement in managing individuals to achieve their organizational goals and objectives (Mone & London, 2018).

Furthermore, HRM is defined as the science and practice dealing with the nature of employment association and every decision, and issues that are related to the association. Various human resource practice models have been in existence to develop the ability of workers and work engagement, thereby showing that the role played by human resource management is essential to employees’ engagement and growth of an organization. In this proposed study, the HRM dimensions are based on the objectives of the project suggested that revolve around recruitment system, training, compensation plan, gender equality, and job analysis and design (Memon et al., 2018).

Studies show that there is a relationship between the communication of employees and the engagement of workers. The organization employs both downward and upward communication using appropriate communication channels they have. As a result where employees are involved in making a decision or their opinion heard increases their level of engagement with work thus increasing productivity and promoting growth (Suan & Nasurdin, 2016). Also, it is depicted that excellent communication of employees results in their realization and understanding of roles and responsibilities they have for assigned work, which contributes to the success of the organization. Thus, it is clear that workers’ engagement starts with their understanding of every happening in the organization, and it is an HRM system that ensures they are well informed regarding any changes that will impact them (Budhwa & Mellahi, 2018).

On the other hand, employees’ development is related to work engagement. Development and training is a tool of human resource management that improves or achieves new skills through focusing on knowledge improvement, attitude, and abilities of individuals. It is depicted that training prepares workers for new jobs, while development is vital for future tasks (Armstrong & Taylor, 2020). Therefore, increasing the ability of an employee improves their present and future performance. By definition, training is a process by which people transform their skills, attitude, knowledge, and behaviors.

Furthermore, research shows that rewarding and recognizing employees in an organization promotes their work engagement and results in organizational growth. Recognizing and rewarding employees has remained one of the most controversial areas in HRM as it forms part of employees’ attraction, retention, motivation, and compensation. Employees’ recognition serves as a way of their understanding of how best they are performing, and the reward has to be communicated to all employees (Chacko & Conway, 2019).

Proposed Objectives

The proposed project is developed around the following five objectives as a guide to spearhead the process and achieve better outcomes.

1. To implement enterprise recruitment planning system.
2. To promote employees’ training and development.

• To understand how the HRM system influences the compensation of employees, which impacts their retention and productivity in an organization?

1. To implement a mechanism for promoting gender equality in the organization.
2. To implement job analysis and design

Target Population

The data for the proposed project will be collected from Saudi Arabian companies that deal in manufacturing, production or engineering, administration or management, and service. The data will be collected through both print and online surveys. The data on psychological states (such as role breadth self-efficacy, felt responsibility for change, trust in management, and proactive behavior) will be collected from group members. In contrast, data on human resource practices, creative processes, and innovation of groups will be gathered from the leaders of the group (Budhwa & Mellahi, 2018).

The proposed target population will be divided into groups and assigned a group leader who will spearhead the process of the project. The population group recruitment and selection will follow the right procedures and preserve research ethics to ensure data collected is quality and credible. The management of every company will be requested to provide support for the proposed project and be made aware to understand the importance of participating in the implementation of the (Siddiqui & Sahar, 2019). Also, the group leaders will be requested to encourage their members to participate in surveys actively. Data will be excluded from the sample if neither the group leader nor the group members respond or fewer than two group members respond in the research study. Thus, the final example will be established, and the response rate expressed as a percentage of the total respondent. The analysis of employees’ engagement will involve both male and female employees within those organizations with consideration of their level of education (Bratton & Gold, 2017).

The project will use stratified random sampling as a sampling method. The method is proposed to constitute three elements, which are motivation, ability, and enhancement of opportunity by human resource practices. Practices of human resources will be evaluated by group leaders and HRM systems described as applied in the organization. The social resource management system will include flexibility-oriented HRM systems, human capital–enhancing HRM systems, HRM systems for knowledge-intensive teamwork, and high-performance work systems for occupational safety (Bakker & Albrecht, 2018). The HRM systems impact differently with some dealing with rewards, appraisal, communications, performance, decision making, and employees’ role in the organization.

Moreover, evaluation of job rotation practices will be encouraged to ascertain if it allows employees to assume different roles that improve their adaptive skills through exposure to diverse tasks. By giving a focus on HRM systems, the unitary HRM index will be used based on the whole set of human resource practices. The index is extensively used in strategic HRM research, which suggests that the influence of HR practices is best understood by investigating the system of HR practices as a whole rather than examining HR practices individually (Chacko & Conway, 2019).

Data Collection Approach

The proposed project will use both qualitative and quantitative methods to collect data from different respondents and sources.  In order to achieve the aim of the study, interviews will be conducted with relevant departments of different Saudi Arabian companies (Budhwa & Mellahi, 2018). The proposed data collection methods include observation, interviews, sampling, and questionnaires. The sources for data will be selected basically from those that explain human resource management, worker engagement, and organization growth. Those sources that do not provide information about the specified area of study will be ignored or not used. Proper criteria will be followed to ensure the credibility of information being provided and human rights observed as the population will entail human beings (Suan & Nasurdin, 2016).

During the interview, it is proposed that the interviews will be presented with open questions with interviewers taking notes of the responses given. The interview will aim at getting enough information about cases regarding the impact of the human resource management system on engagement and organizational growth. The questions will be designed in such a way that they address all benefits and problems facing the existing system in different companies. The interviews will be conducted face to face to get more relevant information about the study and also know to become familiar with the work environment under review (Suan & Nasurdin, 2016).

Observation will be used as a method of collecting data whereby the population will be observed and their characters, interactions, as well as general performance or operation in the organization, analyzed. Also, determination of the impact of human resource management in a company will be done through observation of employees’ daily duties, their work experience, and the company’s annual income as well as monthly expenditures. Also, questionnaires will be used to collect data. The questionnaire will comprise of questions where the respondent will be required to fill appropriately based on the level of agreement as per the scale given from strongly disagree to agree strongly. The questionnaire will help to evaluate employees’ level of satisfaction with their job and what makes them motivated to perform in the company (Debroux, 2017).

Data Analysis

Data analysis will be done based on demographic profiles, descriptive statistics, and reliability analysis. A demographic profile will be analyzed based on the company population comprising of males and females at the age of 18 years and above.  The data will be tabulated based on gender, age, and work experience, the position of respondent, and evaluated as variable, frequencies, and expressed as a percentage. In descriptive statistics, the analysis of collected data will be done by showing it as mean, median, standard deviation, range, maximum, minimum, and sum. The statistical variable will include organization performance, behavior, employees’ development, and management (Mone & London, 2018).

Range, variance, and standard deviation will help in describing the spread of statistical data, while the value of the mean will represent the satisfaction of respondents concerning HRM systems. The excel sheet will be used to help in generating and evaluating descriptive statistics. Excel is considered as an analysis tool that is simple to apply and gives accurate results when the correct information is entered. Reliability analysis will involve inherent values tabulated, such as compensation management, employee development, and organizational citizenship behavior as the independent variables. The scale used for the study of data will be reliable with excellent and reliable internal consistency of measure (Memon et al., 2018).

Potential Scope of the Project

It is no doubt that human resources are the essential resources in every organization that seeks to engage workers and promote growth. However, it is also regarded as the most straightforward and most challenging department in an organization to manage. The goals and objectives of human resource management revolve right from the needs of human resources evaluations to managerial and retention of employees (Bakker & Albrecht, 2018). To this effect, human resource management is accountable for the effective design and implementation of various standards, programs, and procedures.  It is about developing and managing creativity, knowledge, skills, talent, aptitude, and using such developments optimally. Human resource management is not limited to managing and optimal exploitation of human intellect, but it focuses on managing the physical and emotional capital of workers.  Considering the intricacies involved, the scope of HRM is widening every day. It covers but is not limited to human resource planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, and legal procedures (Sattar et al., 2015).

Project Implementation Plan

The activities of the proposed project are indicated in the Gantt chart, including the expected start date, duration of phases for the project that is essential, the total length of the project, and the end date. The main aspects of the project will include approval and signing of consent letter, literature review, data collection, data analysis, documentation, submission of the final report.

Reference

Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Bakker, A. B., & Albrecht, S. (2018). Work engagement: current trends. Career Development International.

Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.

Budhwar, P., & Mellahi, K. (2018). HRM in the Middle East. In Handbook of Research on Comparative Human Resource Management. Edward Elgar Publishing.

Chacko, S., & Conway, N. (2019). Employee experiences of HRM through daily effective events and their effects on perceived event‐signalled HRM system strength, expectancy perceptions, and daily work engagement. Human Resource Management Journal, 29(3), 433-450.

Debroux, P. (2017). Human Resource Management in Japan: Changes and Uncertainties-A New Human Resource Management System Fitting to the Global Economy: Changes and Uncertainties-A New Human Resource Management System Fitting to the Global Economy. Routledge.

Memon, K. R., Ghani, B., & Kazi, A. A. (2018). Restructuring the Relationship between Performance Management and Employee Engagement. Pakistan Business Review, 20(1).

Mone, E. M., & London, M. (2018). Employee engagement through effective performance management: A practical guide for managers. Routledge.

Sattar, T., Ahmad, K., & Hassan, S. M. (2015). Role of human resource practices in employee performance and job satisfaction with mediating effect of employee engagement. Pakistan Economic and Social Review, 81-96.

Siddiqui, D. A., & Sahar, N. (2019). The Impact of Training & Development and Communication on Employee Engagement–A Study of Banking Sector. Sahar, N. and Siddiqui, DA (2019). The Impact of Training & Development and Communication on Employee Engagement–A Study of Banking Sector. Business Management and Strategy, 10(1), 23-40.

Suan, C. L., & Nasurdin, A. M. (2016). Supervisor support and work engagement of hotel employees in Malaysia. Gender in Management: An International Journal.