CHAPTER ONE
1.1 Introduction
In today's generation firms has
to compete with new ideas, trends and innovations like new products,
technologies, globalisation, 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 employee’s 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 bigger focus
on to determining and improving staff and organisational working; equal job opening
and positive action procedures planned 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 remunerations systems have
increased ( Oakland and Oakland, 2001). There have been lots of changes in HRM
policies in last ten-twenty years and many reforms have been introduced in
this. In considering the future scenario of HR practices, it is sensible to
study the expansions and trends of HR strategies with respect of their
significance to the current personnel especially in the field of holding and
retention of staffs.
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