HRM Dissertation

CHAPTER ONE

1.1 Introduction

In today's generation firms has to compete with new ideas, trends and innovations like new products, technologies, globalization, changes of rules and regulation, demographic variability etc and at the same place they have to make sure that the new changes have been updated or implemented in their services/organisations and products (Kane 2000). The result of this ever changing environment in business sector makes it hard for the organisations to retain their core and critical employees. It has been noted that society is more knowledge based in recent times and human resources are proving vital elements in the survival of an organisation or for the fruitful running of businesses. According to Porter, M.V (2001), these days all the employees are running for acquiring the services best talent pool available in the market. The new concept of the Business Management system in the organisations are to retain and motivate skilful employees who can overcome the hurdles of organisation pressure, market downturn, recession or reorganisation etc (Clarke 2001).

It has been noted that in today's era employees’ commitment towards their firms is less as compared to old times when employer used to get employees loyalty in return of job security but now employers cannot promise the job stability and longevity to employees. According to Handy, C. (1995), “the trend of career portfolio seems to be geared up in recent times". Employee loyalty has been decreased whereas job flexibility has been increased due to volatility and divergence in market. The divergence and volatility in job resulted in reduced job tenure and job insecurity among the employees. Instability in job is contributing towards the increasing inequality in social status, family income and economic security in India, UK and other parts of world.

Human resources management (HRM) have been developed by organisations to reflect their faith and values and also it helps in maintaining cordial relationship between management and staffs. HRM also deals with employees problems and needs. Organisation commitments towards employees are shown by implementing HRM practices within the organisation and management trustworthiness (Whitener 2001 &Setton et al. 1996). This support of organisation towards employees result is commitment of employees towards the organisation. Staffs performance and attitudes are proportionate to their view and expectations towards the organisation and it also reflects the treatment they get from the organisation. According to multilevel HR practice model of Ostroff, C. & Bowen, D.E (2000)  human resource actions are directly linked with staffs perceptions and attitudes. New and well defined programs are placed in Human resource practices in organisations to increase the staff retention rate. Plans like flexi leave, flexi working time and child assistance are given to staffs to entice them to remain with the company. In recent time it has been noted that HRM has become more strategic in its aim and operation (Hays & Kearney 2001). HRM is modes which connect staffs to its organisational values, aim and goals but it has been noted that many changes had occurred in the HRM practices in last decades. In considering the future forecast of HRM, it is sensible to scrutinize the improvements and guidelines of HR policies in terms of their significance to the current personnel especially in the area of drawing and retention of staffs. Researchers on retentions have defined retention management as a planned, logical procedure that begins with an assessment of the cause that staffs join an organisation (Davies 2001; Solomon 1999)

1.1.1. The Influence of HR Practices on Retention

Human resource rules and policies that organisation make truly reflect their philosophy and opinion and the connection between management and staffs.Sometimes policies are only meant for solving problems and needs of employees.  As explained by Oakland, S and Oakland, J.S (2001), Human resource practices consist of selection and recruitment, Training/Development, performance measurement practices, wage and reward systems, quality, health and safety, information systems etc. In 90's several researchers and authors like Becker B. &Gerhart B. (1996), Pfeffer, J (1994) had argued that good HR practices is the only way for sustaining in developing market and it also helps in gaining competitive edge over competitors. Human resource practices helps in creating a workforce that will be unique and valuable to gain market advantage and it will be hard for competitors to copy those practices (Pfeffer, 1998). According to Porter & Tripoli (1997), Number of different researches at the organisational level concluded that many of the HR practices influences the outcomes of organisation through influencing staffs performance and attitudes.

In recent times it has been noticed that HRM practices has develop into more tactical in its focus and function. HRM is supposedly being seen as a strategic employee endeavour associated with organisational principles, aim and vision. As a result, there is now biggerfocus on to determining and improvingstaff and organisational working; equal jobopening and positive action proceduresplanned and executed by human resources offices have added vastly to the variety if the workforce; recruitment system have develop into more refined way; member of staff Bremunerations systems have increased ( Oakland and Oakland, 2001).

1.1.2        Strategic System - Retention Management

Researchers have said that retention management starts with finding the reason why an employee agrees to join a particular company. As described by Fitzenz, J. (1990) Retention management depends on following key parameters: company’s culture and arrangement, staffing policies, wages and remuneration policies, staff support systems in organisation and career growth prospects. The retention techniques that can be very effective are career growth opportunities, incentives and rewards programs. As per many studies it has been established that reviewing of advancing HRM tools in training, reimbursement and incentiveinvolvement have shown that these can guide to reduced return and non-attendance, enhancedvalueof work and improvedeconomic outcome to determine the retention parameters among the employee groups within an organisation and then paying attention towards these factors helps an organisation in forming a successful retention tools in their system. There are many key factors like wages, compensation, quality of work, work relationship, award and recognition, working hours, communication etc helps an organisation in retaining their talented and skilful employees.

1.1.3 Aim  and Objectives of the Study

It has been noted that in UK, Indian and other part of world that despite having HRM practices in place many organisations is losing their key staffs. The purpose of this study is to critical analyse and examine the existing HR practices on the retention of main employees in Indian organisations. HR practice and retention relationship will be examined in this study and also fundamentals related to the HR practices, which affects the employee decision to stay with an organisation, will be identified in this. Result extracted from this study may help an organisation to expand its effective HRM retention policies. Retention of an employee is very vital for organisation with respect of its strategic polices. Study may help an organisation in recruiting those individuals who can commit themselves to their organisation and it will also aid in improving the retention percentage of their highly talented and skilled core workforce.

The research objectives are:

·         To evaluate which HRM factors is most influential for employees to make them stay with company?

·         To identify the factors that contribute to staff retention within the chosen organisation

·         To examine the association between HR Practices and preservation.

·         To help in the development of an effective HRM retention policy for organizations. 

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