Effect of Human Resource Management Practices on Organization Performance

Problem statement
Many organizations try to achieve high performance without success. In situations where the success is realized and maintained, it is very essential to identify the factors that enhance such success in order to establish a competitive advantage. It has been proved that institutions owned by the government are poor in terms of good performance as compared to private institutions. despite the fact that organizational performance is determined by many factors, human resource management practice are the main factors which contribute to best performance of the employees in an organization. Literature review reveals that, there is no uniform effect of HRMP on organizations performance due to the fact that efficiency depends on the organizational context like the skills of the management people. Thus those mandated with running the affairs of the organization and the goals set by the organization. The management practices vary based on the setting of the institutions hence no one practices can suit all the organizations. This implies that organizations ought to their goals hence this is among the researchable areas in this study. This study will therefore try to establish the effect to which individual and the total of the management practices in government organizations affect the performance. Empirical argument that has been relating human resource management practices with performance has not been as a result of local study. Mohamed et al. (2009) argues that most studies have focused on private companies, while very few have focused on government institutions.
The ultimate goal of any organization is to achieve set goals or maximization of wealth for shareholders. However, achieving the goals of an organization depends on the performance of that organization over time (Katou et al. 2007). Performance of an organization is rated by its efficiency in service delivery in terms of meeting the laid down objectives and also how it utilizes its resources to achieve those objectives. Similarly, efficiency is based on how well the employees have been satisfied, discoveries and the quality of the products produced in that particular organization (Guest, 2001; Katou et al. 2007). According to Mutua et al. (2012) different opinions have been raised on the performance indicators to be utilized in studies on human resource management. In some instances financial indicators are used whereas other studies adopt non-financial indicators.
Research in this field should incorporate both financial and non-financial indicators. The non-financial indicators contribute to financial gains. Currently, measures of performance in any organizations are done using the financial performance and productivity especially within the management arena (Guest, 1997). However, this procedure leaves out the role and contribution of employees in attaining organizational performance. It also fails to consider how employees feel about the human resource practices. (Guest, 1999). Government institutions performance study will be based on its mandate and the signed performance contract between the institutions and the government.
General objectives
To determine the effects of management practices on government institutions performance.
Objectives
i. To determine the impacts of recruitment and Selection process on government institutions performance.
ii. To determine the impacts of training and development on government institutions performance.
iii. Establish the effect of compensation on government institutions performance.
iv. To determine the impacts of staff performance appraisal on government institutions performance.
v. to determine the impacts of management practises on employee performance in government institutions .
Justification of the study
This research aims to confirm the impacts of HRMP on employee outcome at government institutions. The literature established a number of factors that affect employee performance. However there is no empirical evidence that such factors can apply across the board. The study will identify HRMP gaps applicable to government institutions that affect performance. Recommendations will be made based on findings in regard to government employees’ perception towards the current HRMP and how to enhance performance. The study will be able to establish the contribution of each HRMP (getting new staff and selection, equipping them with new knowledge and growth, compensation and finally outcome appraisal) which will give an opportunity to management to critically analysis them and come up with strategies to improve on them. The results of the study will equip the managers and other policy makers with the knowledge of effects of HRMP and its applicability.
The research work will provide information to the government on how to implement and come up with best HRMP policies that are locally developed in order to improve on the performance in its institutions. In addition, the research will open avenues for researchers in the field of human resource towards determining gaps for further research. Furthermore, the research will improve and equip the field of human resource in terms of theoretical knowledge in the Human Resource Management. it will also provide so much information on human resource management practices which will help enhance the performance of an organization. Furthermore, it will lay down the foundation for other similar replicative studies with extensions in public institutions.
References
Guest D (2011). Human resource management and performance: Still searching for someAnswers. Human Resource Management Journal 21(1): 3–13.
Guest, D. (1997). The reactive and causes of effective human resources management, A review of research agenda. International Journal of Human Resource Management, 8 (3), 263-275
Guest, D. (1999). Human resource management; the workers verdict: Human Resource Management Journal, 9, 5-25.
KatouA.and Budhwar, P. (2007). The effect of human resource management policies on organizational performance in Greek Manufacturing Firms,International Business Review, 49 (1), 1-35.
Mohammed, A., A., Chuno lo, M., King la, M. (2009) Human resource management practices and organizational performance.Incentive as Moderator.Academic Research Economics Journal, 1,229-237.
Mugenda, O.M and Mugenda, A.G. (2003).Research methods – quantitative and qualitative Approaches. Centre for Technology Studies (ACTS).
Mutua, S.M. Karanja, K. Namusonge, G.S(2012).The role of human resource management practices on performance of financial cooperative. International Journal of Humanities and social sciences, 2(22) Special Issue –Nov 2012.

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