CHAPTER 1: INTRODUCTION AND BACKGROUND TO THE RESEARCH
1.18 Human resource management functions
This part focuses on the application of HRM policies and practices in provincial legislatures, and it is therefore important to include them in the study because these policies and practices are the elements of the study, i.e. organisational resourcing, training and development, compensations and benefits, performance management and employee relations but collectively forming part of HRM policies and practices.
Human resource management functions are critical for organisations that are serious about resolving personnel issues and finding HRM solutions (Chang, Gong, Way and Jia, 2013;
Quansah, 2013, US Office of Personnel Management, 2010). Oladipo and Abdulkadir (2011) state that HR policy and functions are concerned with formal rules and guidelines that organisations put in place with regard to the recruitment, training, assessment and reward of their employees.
1.18.1 Organisational resourcing
The employee resourcing process is an element of human resourcing management, which is one of the core areas of human resource practices, which are recruitment, selection and appointment. It is of importance to note that people are the most important assets in any organisation, and many successful organisations have a well-formulated personnel strategy.
25
Chanda, Bansal and Chanda (2010) state that recruitment and selection refers to the process of attracting employees at the time the organisation need them in expected numbers and with the required competencies, skills and qualifications.
According to Al-Ahmadi (2009), organisational resourcing plays a crucial part in the shaping of the effectiveness and efficiency of the organisation, and improves organisational performance. This can be possible if the organisation is able to look beyond the current situation in terms of sourcing employees, and identify employees with required set of skills, aptitude and experience (Chanda et al., 2010).
Organisational resourcing has become so crucial in organisations because they are able to be competitive in ensuring that they acquire best talent on offer (Davenport, Harris and Shapiro, 2010). The reason is that when an organisation attracts the best talent the organisation is able to have a competitive advantage over its competitors (Al-Ahmadi, 2009).
After the confirmation of the appointment of an employee, the expectations are that an employee will commence learning more about the job and the organisation, and in the process be encouraged to apply for other positions in the organisation (Chanda et al., 2010).
1.18.2 Training and development
Training and development are essential in a number of organisations. Therefore, the existence of the policy on training and development will assist in guiding the organisation to implement structured training and personal development programmes (Karia and Asaari, 2006). Such programmes are vital in a sense that structured training and development programmes equip and train employees on what the organisation requires.
This will encourage employees to perform at their maximum potential. However, it is important to note that training and development programmes should be undertaken based on the needs of both the organisation and employees individually and as a collective (Pool and Pool, 2007).
Training and development, which fully exploit the potential of employees at an individual level, play a pivotal role in the development of an organisation (Zaini, Nilufar and Syed, 2009), but such training should be directed at and be relevant to the needs of the employees and the organisation, allowing employees to assume greater responsibilities as alluded to above.
26
Zaini, Nilufar and Syed (2009) found that employee training assist in the mitigation of employees’ willingness to leave an organisation, particularly in the case of new employees.
Zaini, Nilufar and Syed (2009) moreover, assert that HRM policies and practices have a positive and significant influence on business performance.
1.18.3 Compensations, rewards and benefits
Compensations forms an integral part of the contract entered into between the employee and the employer. The employee has a duty to perform certain tasks and the employer is duty bound to compensate the employee in terms of the agreement or contract entered into between the parties. Compensations, rewards and benefits aid in the retention of employees in the workplace (Allen et al., 2003; Gratton, 2011b; Rose and Gordon, 2010).
Atif, Ijaz-Ur-Rehman, Abdul and Nadeem (2011) posit that compensations and rewards could be the important tools to use in order to trigger employees to increase their efforts to fulfil the organisational goals. In the same vein, Atif et al. (2012) furthermore, asserts that compensations be in line with the performance of the employee, and not on the seniority or length of service in the organisation.
Therefore, it is true that compensations, rewards and benefits have a positive influence on attracting and retaining employees in the organisation (Shoaib, Noor, Tirmizi, Bashir, 2009).
Moreover, compensations, rewards and benefits also improve employee extrinsic motivation.
However, it is evident that not only compensations, rewards and benefits but also a social status and organisational support in the organisation increase extrinsic motivation (Allen et al., 2003; Shoaib et al., 2009).
An organisation can only be successful if it able to retain its employees for longer periods.
This will ensure that such an organisation has a competitive advantage because it offers compensations, rewards and benefits that are market-related (Lockwood and Walton, 2008).
In addition, compensations, rewards and benefits aid with motivating employees to achieve more (Lockwood and Walton, 2008).
1.18.4 Performance management
According to Prasad (2006) performance management is the process of putting in place plans for individual and organisational performance, through employee performance contracting (setting performance standards), providing feedback on performance, discussion on employee individual performance and rewarding best performing employees.
27
In support, Armstrong (2006) affirms that performance management is of course a system organisations use in order to improve individual, teams and organisational performance. In addition, Nayab and Richter (2011) opine that performance management system when applied correctly will boost productivity.
Many organisations incorporate performance management systems in line with their pay models and organisational strategic objectives (Armstrong, 2006). The performance management system addresses those employees who go beyond the call of duty in performing their tasks, and as such receive performance-based compensations and benefits (Pichler, 2012).
The purpose of employee performance management in the organisation is to measure (Chanda et al., 2010; Islam and Siengthai, 2010) and improve employees’ performance, and it is evident that a fair performance management process has a positive effect on employee retention. Chanda, Bansal and Chanda (2010) highlight that performance appraisals are designed to relate pay to performance irrespective of intensity of performance and goal achievement.
1.18.5 Employee relations
The relationship in a working environment comprises of the employer and the employee, and more often than not employees in the workplace are organised, meaning that they belong to one union or to an employee structure recognised by the employer. The recognition agreement regulated the relationship between the employer and employee, facilitated by an organisational employee relations policy.
Wright (2011) attests that the presence of a union in a working environment could be another factor contributing to organisational performance, and the union has a passive role in HRM activities, including recruitment, selection, compensation, promotion, training, collective bargaining and dismissal of employees.
Ngo, Lau and Foley (2008) examined strategic human resource management practices in China to determine the impact of various HRM practices (including employee relations) on the performance of a firm. The study found that HRM practices have a positive impact on employee relations.
28