The Role of Human Capital Role on Employee Productivity in an Organization - Research Proposal Example

Student name Professor Course Date The Role of Human Capital Role on Employee Productivity in an Organization Chapter 1 1.0 Introduction The connection between the human resource approaches and the worker’s productivity is a concern that has instigated considerable differentiations in the imaginary tale predominantly owing to the existence of a lot of constraint that can affect the outcome generated via the investigation of this predicament in exercise. Furthermore, since inside a company, the accomplices and concerns are numerous it is hard to recognize the responsibility and the importance of every specific organizational component mainly when there is no particular company plan for such an inspection (Armstrong). The procedure of international interconnection of economies, hastened by technological expansion, has increased struggle in today’s trade atmosphere (Addae, Parboteeah and Velinor 568). There is rising acknowledgment that augments in worldwide business, assisted by improvement in technology, exchange of ideas and haulage, started to get the markets of the planet into superior competition (Bernsen, Segers and Tillema 360). As financial globalisation turn out to be more distinct, the capability of companies to contend in the international souk is all linked to the excellence of their human resources efficiency. Many establishments depend on the proficiency of their workforce to acquire economical advantage in global financial system. In this fiscal atmosphere, the preservation of indispensable workforce turns out to be an exceptionally significant approach for human resources executives and organisational managers (Bloom and Reenen). Nowadays, nevertheless, preservation of dynamic workforce is a worldwide confrontation. Administrator and top level establishment continually encountering with the concerns of keeping productive workforce, and there is an abundance of proof that worldwide, withholding of competent workforce has been of significant anxiety to management in the countenance of ever escalating towering rate of employee turnover (Christensen and Zaleznik). There are foremost confrontations in trying to keep and absorb industrious workforce which develop into a progressively more vital facet of putting organisational ability together to guarantee continued competitiveness. These confrontations, in the midst of other things, are fundamentally related with the infrastructural maintenances, compensation packages, management styles and customs inside an establishment (Ilmakunnas and Ilmakunnas). Such confrontations are further obscured by the fact that extremely accomplished workforce incline to alter appointment for enhanced monetary rewards and enhanced working surroundings. Additionally, very accomplished workforces are frequently poached by leading worldwide organisations that can offer them with improved remunerations and other payback (Ramlall 50). This aspect is predominantly important for lots of establishments. Many managers in organizations are well conscious of these confrontations, recognising the necessity to hold gifted, dedicated industrious workforce who will add considerably to the achievement and accomplishment of the establishment; but they might be short of the capital to kick off transformation that will tackle productivity troubles (Christensen and Zaleznik). 1.2 Aim To ascertain the responsibility of human resource practices in shaping employee productivity in an establishment. 1.3 Objectives 1. To establish to what degree human resource management practices and organisational customs in an establishment have an effect on members of staff productivity in organisations. 2. To discover the main confrontations an establishment face relative to employee productivity. 3. To examine the influence of issue such as job contentment on rates of staff return in the establishment. 1.4 Research Questions 1. How do HR practices affect member of staff productivity in an establishment? 2. What other issues influence workforce productivity within the organisation? 3. How do HR practices have an effect on employee dedication and job contentment in an establishment? 1.5 The Significance of the Study This research is the first inclusive investigation of workers productivity issues in establishments, with stress on the role of human resources section. It has equally realistic and theoretical importance: It enhance acquaintance and knowledge of how key productivity variables, which might influence, worker productivity in firms; and it may also be employed to help firms in making stratagem augment productivity rates, job contentment and organisational dedication among workforce. The members of staff productivity challenge and its connection to HRM is a matter that is at present less investigated. This investigation will present new data to test Western hypothesis and postulation instituted in HRM researches concerning employee productivity. This research diverges from other research papers in that it takes on to build up a theoretical framework on employee productivity with reference to the set guidelines. This framework necessitates an investigation of companies both public and private to make sure that all workforces are sufficiently epitomized. The results of this study are projected to improve policy on employees’ employment, assortment procedures and organisational growth in firms. Confirmation from representative staff on income is restricted; nevertheless, individuals working in these firms in general consent there is a difficulty in keeping productive employees. Chapter 2: Literature Review 2.1 Introduction Human capitals have to be well thought-out as an important managerial benefit. In this perspective, the use of the correct approaches for its advancement can show the way to the progress of the business execution both in the midstream and the lengthy term. Nevertheless, there are as well corporations where human capitals are not well thought-out as having specific significance for the company’s development. In this perspective, maintain that there are companies that “view their human capital as a cost instead as an asset; an aspect that is disposable and maybe eliminated when the expertises seized turn out to be out of date; though when human capitals are considered as a benefit, firms augment human being worth via education and human growth and guarantee unrelenting involvement to the company”. The significance of human capitals for the business accomplishment has in any situation attested both in the literature and the pragmatic investigation performed in all business divisions (Angelo, Erik and Steven 438). 2.2 Workforce Performance Every corporation has been created with a particular set aims to realize. These set aims can be attained by making use of the capital like human beings, machinery, substance and currency. All these possessions are significant but out of these the human power is the most significant. It stages a vital function in carrying out responsibilities for achieving the set objectives. The problem happens that how these possessions are exploited by human capital. Further, the trading atmosphere is varying considerably. The ecological features are unmanageable. These are past the influence of organization of the corporations. One has to fine-tune with the exterior aspects to do the trade in the marketplace. Each ecological aspect such as communal, ethnic, legal, economic, political, technology and rivalry gets altered extremely fast. For efficient functioning, the acquaintance of these aspects is a requirement or else the strategy will backfire. In present-day circumstances, it is hard to forecast concerning whatever thing. It is indeterminate to articulate what will transpire tomorrow. For a second time, requirement for very experienced and committed human resource sensed for those who can offer the most excellent productivity (Bloom and Reenen). At the present time, the marketplaces are as well extremely competitive, and there is slashing gullet antagonism. For each company, it is hard to begin, endure, become stable and outshine in the trade. The organization that acquires the gain over other contestants via their gifted and committed human resource can be responsible for the front in the marketplace. The input of workforce on employment is the mainly vital aspect for growth and superiority in commerce. The working of workforce on dissimilar jobs in adjacent synchronization is essential for victory of the component (Alrawi and Sabry 510). Workforces perform diverse tasks in an establishment based on the type of corporation. They principally carry out everyday tasks such as creation, storage, developing, transport, marketing, acquisition, delivery, advertising of business, economics and book-keeping, human reserve, investigation and public relationships. All these actions are interconnected to attain the objectives. These are to be carried out by the workforce appropriately so they can offer their finest productivity at the responsibility. This will have a huge influence on the complete manufacture, selling, turnover, advancement and marketplace stance of the corporation in the marketplace. A variety of issues such as ability, education, inspiration, commitment, wellbeing, administration guiding principles, fringe payback, pay and packages, marketing, interaction etc. is accountable to give confidence the individuals to work honestly and offer their most excellent productivity. The significance of employees’ working ought to be recognized by the executive, and genuine efforts have to be exerted in that tendency. The administrators of the corporation obtaining timely stepladder in that course will be in a stance to enhance and inspire individuals to do so. Finally, the business might take the pointer in the marketplace and seize the opening obtainable in the marketplace (Armstrong). 2.3 Performance Organization The main aim of human capital administration is to make use of the human capital in a most favourable way so that objectives can be attained very efficiently and resourcefully. For this point overseeing the performance of workforce as a whole is extremely essential. Performance organization has a responsibility to handle this task. Performance organization preserve, build up and inspire the individuals at a job to provide enhanced outcomes. In the competitive circumstances the corporation that provide enhanced outcomes can endure, become stable, develop and do extremely well in the operation (Addae, Parboteeah and Velinor 574). It assists a lot in attaining the aims of human resource management. This comprises actions to make sure that objectives are constantly being convened in an effectual and the well-organized way. It can concentrate on activities of the firm, a branch, procedures to develop an artefact or service, workforce, etc. This method is utilized most frequently in the place of work but affects anywhere people interrelate in any setting. Performance management standards are essential everywhere in the planet as long as human beings interrelate with their surroundings to make required results. Civilizations are diverse, but the laws of conduct are identical globally (Christensen and Zaleznik). 2.4 Performance Organization and Performance Evaluation Performance is over and over again defined straightforwardly in productivity term that is necessary for accomplishment of pre-determined objectives. Performance relates to what work is completed, how it is completed and what has been attained. The Oxford English Dictionary corroborates this by incorporating the expression ‘carrying out’ in its delineation of performance: ‘the achievement, implementation, carrying out, acting out of whatever thing well-organized or assumed.’ Elevated performance is the result for optimistic actions, correct use of expertise, talents, capability, potential and proficiencies. Performance organization has to examine how outcomes are accomplished since this information is essential to deliberate what wants to be completed to get better those outcome. The notion of performance has been articulated by (Christensen and Zaleznik) as: performance implies both conducts and outcomes. Conducts are the results of mind and bodily hard work directed to responsibilities, and that can be pragmatic separately from the outcome from the task. This description of performance bring to a close that when overseeing the performance both efforts (conduct) and yield (outcomes) require to be put in consideration (Christensen and Zaleznik). In current tumultuous and extremely competitive industry atmosphere the query of survival and development count a lot. Organization is beneath force to augment the productivity of everybody so that aggressive advantage over contestants can be attained. This is the major aim of performance managing. Performance managing is a procedure for setting up a mutual comprehension concerning what is to be attained and a tactic of controlling individuals that augment the likelihood of accomplishing achievement (Ilmakunnas and Ilmakunnas). It is concerning the daily deeds and conduct persons employed to enhance performance. It cannot be detached from the administration procedures that permeate the corporation. Performance administration is the procedure of generate a work atmosphere or surrounding in which individuals are allowed to carry out to the most excellent of their capabilities. Performance administration is a complete work arrangement that start when a task is distinct as necessary (Ramlall 55). It ends when workforce leaves the corporation. The general aim of performance organization is to guarantee that the corporation and all of its subunits are functioning jointly in a most favourable manner to attain the outcome needed by the company. Performance organization endeavour to utilize outcome of everybody and that of the establishment. Any concentration of performance administration inside the company in all sections eventually influences whole corporation performance administration (Addae, Parboteeah and Velinor 580). Attaining the general aim necessitates a number of ongoing tasks, together with classification and setting up of needed outcome, set up method to evaluate improvement toward those outcomes, putting principles for measuring how well outcomes are attained, following and assessing development toward outcomes, augmenting in progress responses amongst those contributors functioning to attain the outcome, at regular intervals re-examining advancement, strengthening tasks that accomplish outcome and interrogation are also instruments (Alrawi and Sabry 512). Organisation is set up to realize clear aims. Accomplishment of aims or objectives relies upon the functioning of particularized workforce. Therefore, it is fairly essential to appreciate as to what degree workforces have been victorious at their tasks for attainment of their objectives. As a result, performance evaluation forms a significant element of human resource. This calls for the analysis of the theme of performance evaluation. It is the assessment or evaluation of the comparative value to the corporation of employee services on his responsibility (Armstrong). Performance evaluation is an orderly regular and unprejudiced ranking of worker’s merit in issues pertaining to his current position and to his prospective for an improved occupation. Performance evaluation is mostly employed for three reasons: a) As a foundation of incentive distribution like as salary augmentation, upgrade and other incentivises etc. b) It will spot the drawback of workers and will mark the sections where expansion hard works are necessary. It is an instrument for recognition of insufficiencies. c) It can be employed for the assortment and growth plans. This distinguishes suitable players from poor ones. It will assist the administration to carry out tasks concerning assortment, growth, salary, upgrade, punishment, dismissals and retrenchment. It is now and then supposed that performance evaluation is similar to performance administration. However, there are important dissimilarities. Performance evaluation can be delineated as the official and regular evaluation and ranking or positioning of persons by their administrators or instant superintendent at, habitually, a yearly assessment meeting. Whereas performance organization is an incessant, wider, more inclusive and ordinary procedure of organization that illuminates shared potential, give emphasis for the responsibility of the administrator who are supposed to work as teachers instead of judging and concentration on the imminent (Christensen and Zaleznik). Performance assessment has been censured by persons since the method is like bureaucratic and highest-downwards in monitoring of human capital administrators. It was frequently backward looking; focussing on what is erroneous, instead of looking ahead to potential growth requirements. Performance evaluation systems continue living in segregation. There was small or no connection among them and the requirements of the conglomerate. Line supervisor has regularly discarded performance evaluation methods as being time overwhelming and inappropriate. Workforce have feel better on the external scenery with which evaluation has been run by executives who have short of the expertises necessary, incline to be prejudiced and are only going via the movement (Angelo, Erik and Steven 440). 2.5 Job Contentment In harmony with this, in order for a company to attain a steady and incessant growth, it is essential that its workforces are contented. More particularly, in agreement with job contentment is an emotional or poignant reply toward a variety of aspects of one's occupation. Job contentment has been a subject of huge concern for researchers and in a wide range of areas, comprising organizational psychology, public management, and organization”. Alternatively, the subsistence of job contentment has been lengthily connected with the degree of compensation of workforce in specific quarter of a particular firm. As a matter of fact, the research demonstrates that paying for execution is a huge matter in modern-day human capital organization; firms have long thought that production and productivity get better when compensation is correlated to execution, and have advanced systems that act on payment by outcomes and inducement plans to uphold this conviction (Christensen and Zaleznik). In a similar framework, it is observed that workforce frequently believe that proceeds partaking and reward contribution are excellent for individual endeavour, corporation expansion and productivity, and place of work environment. Nevertheless, in order for the company to attain the utmost point of expansion, it is essential to plan and utilize the suitable human resource guidelines as specified by every specific company’s requirements. The utilization of ‘fit’ as a norm of assessment of the suitable corporate approach has been comprehensively applied in the system. In this direction, the fundamental hypothesis following "fit" is that the efficiency of any human resource exercise or collection of exercises for impacting company operation rely on the corporation’s stratagem (or on the contrary, the efficiency of any stratagem rely on having the correct human exercises)”. Specifically, the matters that require to be taken into account by a company by putting in place any pertinent human resources stratagem are numerous. Suggestively, investigations attempted to recognize the connection amid the workforce contentment as a consequence of a particular human resource approach (Christensen and Zaleznik). The business accomplishment established that guidelines- creators have to confront to predicaments and discover a number of methods to solve it; they like to attain two aims for work planning, to augment efficiency, accomplishment, to expand the value of working environment, and job contentment for the company since in some circumstances. Improving efficiency will improve employee contentment and development in job contentment will add to efficiency; there is no involuntary and invariant connection amid the two. In both cases, corporate accomplishment is found to be associated with the worker’s performance in a specific firm (Ramlall). From a diverse analysis, research encourages that human resources utmost opening to augment worth might well be to take part in a responsibility, in the advancement, and putting in place business stratagem; human resource can build a reasonable situation for being a significant element of stratagem improvement, as a result of the value of human assets in the capability of the company to undertake its scheme (Addae, Parboteeah and Velinor). Additionally, human resource plan can impact the company’s development in harmony with the process imparted for the individual and expert growth of the company’s workforce in the short and long term. The setting and putting in place of suitable range scheme has to be well thought-out in this instance as completely essential since in the instances of inequity in the place of work, no collaboration would be viewed to exist although such collaboration subsist, it will be challenging (Christensen and Zaleznik). In this context, (Alrawi and Sabry) observe that prior to assortment stratagem are put into practice the firm’s traditional atmosphere administration and assessment techniques have to be check to establish if present employees procedures will maintain or deter variety in the company; then, suitable schemes can be planned to build up and handle variety based on these results. From the similar position of observation, (Christensen and Zaleznik)reinforced that specified that a number of wide-ranging researchers have demonstrated that human resource is an essential driver in a corporation’s financial accomplishment, it is very important for human resource and other managers to recognize the significant aspect and greatest value of appreciating the efficiency of all human resource tasks in building worth for the corporation (Ramlall). To an extra whole assessment of the issue, Christensen was able to discover five fundamentals that are well thought-out as essential in the development of the worker’s efficiency as this development is anticipated to direct to the improvement of the business augmentation. More particularly, Christensen holds that the elements, which are very crucial for efficiency of workers, win a specific company atmosphere (Christensen and Zaleznik). These are: a. The procedural organization of the grouping; b) The societal arrangement of the grouping; c) The person activity inspiration, i.e., the readiness to perform; d).The rewards gained from undertaking the task; and e).The contentment acquired from being recognized as part of the team. The above fundamentals can live in any company and can affect the productivity of its workers both in the long term and in the short run. Chapter 3: Research Methodology 3.1 Introduction This chapter will illustrate the approaches employed to collect and scrutinize data. Most of the information will come from investigations, interviews, and focus groups that will be partly structured. Secondary sources will also be utilized. 3.2 Research Design The researcher will assume an exploratory research design. An explanatory technique will be employed which will involve correlation investigation, to give an explanation the connection amid variables. 3.3 Research Approach This study will employ both quantitative and qualitative approach. Quantitative techniques will be employed obtain numerical data and will utilize statistical scrutiny to land at important inference. Conversely, qualitative method will seek to obtain examination rather than secondary data and idea quantification (Punch). Qualitative approach will permit the researcher to get the information of individuals about a company, in a societal or specialist location (Punch). This method includes diverse kinds of data to aid in better responding to the research queries. It has been recommended that a mixed technique is best in the exploratory study, as the queries being asked have not been answered beforehand. This will add trustworthiness of results as the quantitative data is aided by qualitative data. As Punch (2005) assert, qualitative method assist in deciding opinions, behaviours, and viewpoint of the study subjects while quantitative method assist in comprehension of study environment. 3.4 Study Area The will cover all private and public organisations. This is because the research aims to study the work attitudes of employees. Consequently, the study better epitomizes the opinions of individuals. 3.5Target Population The target populace will be employees, managers, and higher officials. 3.6 Sample Selection and Sample Size Kerlinger (1986) assert that sampling is obtaining any section of target populace as an illustrative of that population or world. Systematic haphazard sampling technique will be employed to pick the questionnaires responses in every organisation. A workforce inventory will be acquired from the human resource section, and employees chosen randomly; after that every second individual will be picked. In the study, a total of 400 employees will be chosen with the aim of obtaining complete of at least 200 questionnaires. 3.7 Data Collection Methods 3.7.1 Primary Data Collection Methods The researcher will collect both primary and secondary data. The primary data will be collected via questionnaires, semi‐structured interviews and focus group discussions. 3.7.2 Questionnaire According to Zikmund (2003), questionnaires are an easy yet effectual study instrument. They are efficient and lessen deformation in data ensuing from any biases that might be presented through the interview procedure. Since the study will aim to determine intensely held individual opinions and values, a number of which might be receptive in nature, the undistinguished nature of the questionnaire permit respondents to articulate their inner viewpoint, opinions, and discernment liberally. 3.7.3 Mode of Questionnaire Development The structure of the questionnaire will be both open‐ended questions, closed questions so as to find out the context of the study by asking general questions. Multiple selection questions will be utilized with Likert scales. This will allow the respondents to indicate the ‘intensity’ of their point of view towards every facet of their task. The Likert scale has a variety of selection from ‘Strongly Agree’ to ’Strongly Disagree’. This will give respondents the capability to make well dissimilarity amid attitudes. The questionnaire will be structured so that general information will be sought first before moving to questions that will probe deeper aspects of job contentment and loyalty. 3.8 Data analysis The data will be coded and analyses with the use of SPSS or Minitab. Presentation will be done using graphs, pie chart e.t.c . Findings and conclusion will be drawn and presented. Read More