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Hrm in india

Acknowledgement

We would like to take this opportunity to thank those who were directly or indirectly involved in this project. Thank to Almighty GOD who gave us strength and knowledge to complete our final research project.

Special thanks to our advisor PROF. Who compelled us to go beyond the limits of our capabilities and achieve the task that I have accomplished. Without the care, co-ordination, motivation and above all guidance of our advisor, it was impossible to triumph over the difficult task to complete this research project. We are grateful to her for this perceptiveness and guidance during our final project.

INTRODUCTION

A vital Part and asset of an organization are its employees. In order to optimize the organization's performance, it is necessary to place right person at right job. The act of placing the right person at right job is known as Human Resource. In today's world Human Resource department is becoming a fundamental ingredient of any organization. Right now we a re living in a corporate era, where existence in the business world is possible only by giving your best shot, and to achieve this one have to employ the best people in the organization.

The elder examples of employment of human resource strategies are derived from the Pharo's era, who used to employ labor to build Egypt castles. Modification in those strategies gives birth to HR departments in organizations in recent era. From the last decade, organizations are paying attention towards not only the incorporation of HR department, but also towards development of perfect HR strategies. Human Resource consist of four major activities explained below:

Recruitment deals with making the applicants know about the available vacancy. After recruitment activities, selection processes starts. Retention activities are done in order to keep employees stay in the organization. Last but not the least, restructuring of the organization is taken place with the help of firing or right sizing. In our research project, we are going to analyze the importance of HR department with the help of any one of the human resource strategy in different organizations.

This era is considered as the age of human resources. The globalization is creating significant face up to business in the world and the thought of HRM is to build up the attentive involvement of laypeople in dealings.HRM is doing very significant work to choose, recruit and train the right people at the right time at the right place for right type of work.

In the recent years HRM has become much popular and is widely accepted in every organization. The human resources (employees) of the organization whether they are full, part or contract workers are important. Human Resource Development (HRD) is the process of increasing the knowledge, skills and abilities of the people within an organization. This process enables the organizations to open the new doors of success. Organizations throughout the world are facing serious challenges due to increase in the globalization.

The role of high performing Human Resource (HR) practices has gained a significant importance in the firm's performance. This is especially important since it has been asserted that collectively a firm's employees can provide one of the most important sources of competitive advantage and thus it is important for a firm to carefully choose the human resource management practices which will make the most of this valuable resource. So an employee plays an important role which is considered as the asset of the organization. There are others factors too such as, product quality and customer service. All these elements are heavily dependent upon human resources as education, training and motivation.

It is a general perception that HR department is only responsible for hiring and firing of people, but in true sense it is more than that. The various HR practices such as recruitment & selection, training & development, compensation, performance appraisal are linked directly to the firm's performance and overall level of productivity. All these practices when summed up leads to increased loyalty of the employees, low turnover rate, greater profitability, high quality and service level, hence increasing the overall performance of the firm.

HRM in India:

India is the second largest country in the world with respect to population and it is blessed with immense human resource but unfortunately it has not been utilized properly. In order to enhance our saving and investment there is a need to convert our unproductive and underutilized human resource as a potential accelerator of economic and organizational growth. In India, most of the organizations usually seek for the short term goals for increasing profitability, by giving rise in pay and promotions to their managers, whereas long term goals are overlooked. Ideal approach towards rewarding must result in balanced support in short and long term strategic goals both from organizations and employees point of view.

As far as the organization is concerned for the report we have selected Descon Engineering ltd. as the research object. In this organization we are going to study the HR practices and their impact on the organization. Descon Engineering ltd. is a multi-dimensional engineering, construction and manufacturing company operating in Asia and the Middle East. With over 450 million man-hours of construction work executed in industrial and infrastructure projects, Descon employs over 34000 professionals and other personnel.

Descon Engineering Ltd

HR Introduction:

At DESCON, their belief is that "their people are their greatest asset. They take great pride in acknowledging the contribution each one of them makes". They focus on People Development and for that they ensure:

§ Staff at DESCON with world class Professionals and ensure that the right systems are in place to encourage them to develop to their full potential.

§ Create a collaborative and mutually supportive work environment that encourages people to grow.

§ Build a team of professionals who deliver expertise by participating in business decisions.

§ Develop Performance Management and reward systems underlying our Business strategy.

HR Objectives:

HR Policies:

HR Online:

HR Planning:

HR planning's purpose is to determine what HRM requirements exist for current & future supplies & demands of workers. The organization ensures that they have the right number and kinds of people at the right place; this is task is accomplished by regular recruitment and selection, performance evaluation, Promotions, Regular Training and development programs.

Recruitment:

DESCON employs both formal and informal ways of recruitment. But it is not conducted formally. Departments tell their need to HR department. And then recruitment is done on the requirement by the project. All candidates send their CV's by post; they are then short listed and called. So those candidates then report at the Descon from where they are sent to the Human Resource Department for further interviews. But recently DESCON devised a new way of recruitment i.e. online Applications. They give Ads in leading newspaper and use some other mass media communication channels and then receive applications and CV's online. In this way huge paper work is reduced and recruitment process is improved in terms of efficiency and convenience with the use of technology.

Sources of Recruitment

Internal Methods

DESCON usually prefers “Job Posting” in which employees from within the organization are preferred but if the organization feels that the employee is not competent enough then they go for external methods.

External Methods

DESCON usually prefers advertising through newspapers and their official website for their recruitment purposes. They give an open invitation to everyone to apply, so people who are interested come and if they are capable enough they are hired.

Selection:

In DESCON, selection Criteria is based on numerous factors such as education, health, background and previous experience.

Selection process:

  1. The Application
  2. Written Exams
  3. Performance Exams
  4. Specialized Testing
  5. Panel Interview
  6. The Selection Interview

Training & Development:

For lower and technical staff the organization have a complete training calendar for the year, if organization thinks and feel that an employee requires training to update his knowledge about the field, he just have to report the HR department and he will be listed for the next training program.

On the job Training:

As compared to other competitive organizations the training program of DESCON is quite different. It provides full opportunity to its employee to develop themselves and also train them according to the requirements of their job. In return they will be greatest asset for their organization. The employee is being trained in many ways while they are on job.

Inside India

DESCON provides the best opportunity to their employees to train themselves while on job with in India

External sources

These are formal training opportunities that DESCON offers to employees either internally or externally. A trainer, facilitator and/or subject matter expert are brought into the organization to provide the training session or an employee are be sent to one of these learning opportunities during work time.

Overseas training

This training facility is being provided only to the executive level officers and employees. While this method is applied the staff member who is to be trained is send to some overseas project or office. Mostly the trainee is send to the office of JAPAN.

Performance Appraisal:

The jobs are evaluated on yearly basis under 360o method; the competent employees are rewarded in shape of promotions, bonus, increments and annual holidays and promotion. The results of an appraisal can be used to identify areas for further development of the employee.

When evaluation is made the unsatisfactory performers are given warning. The employee after warning is put under observation, for some period of time and if the employee's performance is still unsatisfied then are demoted or fired.

Relative Standards:

In the second general category of appraisal methods, individuals are compared against other individuals. These methods are called relative standards rather than absolute measuring devices.

Grouped Ranking:

Under this method the evaluator place employees into a particular classification. The basic advantage of this method is that it prevents from inflating their evaluations so everyone looks good or from forcing the evaluation so everyone is rated near the average.

Individual Ranking:

The individual ranking method requires the evaluator merely to list the employees in order from highest to lowest.

Compensation & Benefits:

Promotion:

Promotion is direct shift only to the next level from the current grade, the employee's performance is evaluated and if his performance is above average he is given promotion. DESCON promotes only those candidates who are experienced and eligible for that particular vacancy.

Increments

The company decides at the end of the financial year, according to its financial condition, whether increments should be given or not.

Free transport

DESCON provide free transport to local employee.

Medical facility:

DESCON provide free medical facility to workers depending upon the position/rank of the employee.

House loans:

They give the facility of house loan only to deserving individual. The loan improvement is depending upon the post of the employee.

Overtime payment:

Overtime payment is pay for only those workers who are working more than their working hours mostly overtime payment is given to low level staff.

HRM CHALLENGES

HRM had different approaches and objectives before 2009, but with the advent of the recession, HRM professionals need to look at the challenges not only from a different perspective, but also with fresh and creative ideas. This year, HRM professionals will have to develop ideas that can not only help to sustain the business, but also cuts on costs such as those of employee training etc. When it comes to employees, HRM professionals will have to be very smart in their approach to make sure the top potential of the organization are protected.

Another very important factor will be controlling the headcount of the organization, which means new inductions will have to be kept to a minimum and existing employees will have to be moved around within their lines in the organization.

Every day, many businesses are either declaring bankruptcy or are on the verge of closure due to the inability to provide the base salaries. Many are taking the course of Jobs Cut. As a result, HRM professionals will have to address the issue of cost management as well. The HRM Function has to communicate honestly, openly and positively.

Interestingly, for the talented and smart professionals, this tough and challenging phase of global economic recession will bring an excellent opportunity to learn how to deal with crisis in tough times.

Skilled Human Resources

The key challenge for India is the availability of adequately qualified and skilled human resources in infrastructure sector; According to a World Bank study.

It also includes that there are non-professional managers and insufficiently qualified technical personnel head contracting firms in India. Even though Indian Engineering Council bylaws make it mandatory to employ graduates, but still most contractors fails to do so. And they also lack skills for risk management, marketing, financial control, work organization and quality control.

For delivering the MTDF planned infrastructure, the WB study stated that the government needs to take steps to enlarge the available pool of skilled HR at the outset, and concurrently increase the level of skills. And they can reverse the trend of brain drain, or else the most viable option is to increase enrolment of students in higher education and technical and vocations institutes leading to professional, vocational and administrative careers in the construction sector.

To increase the skill sets, training of current employees in the construction sector should be conducted both within India and abroad. Foreign training should be considered for specialized fields.

Within India, WB study pointed out, engineering universities and other professional schools can offer better training programs and if teachers are not available, foreign staff can be recruited.

World Bank Study also describe that it would be safe to say that training is required almost in all fields and at all levels. And In tackling the human resource problem it is critical to focus not just only on the human resources requirements of consultants and contractors but of the client as well.

Furthermore; it suggests that the government with its dual role of a client and policy maker is the most effective agent of change but in order for this to happen, managerial and professional capacity of the client has to be enhanced. And specialized training to appropriate personnel in relevant areas and exposure to international best practices and successful infrastructure experiences in the developed and developing world should be provided.

Literature Review

A literature review is a body of text that aims to review the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work.

Most often associated with academic-oriented literature, such as a thesis, a literature review usually precedes a research proposal and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as future research that may be needed in the area.( http://en.wikipedia.org/wiki/Literature_review)

We examine the impact of human resource practices on the firm performance. The study of literature and variety of articles on HR published by different authors, clearly predicts that HR practices have a predominant effect on the firm's performance. These studies include results from above 500 organizations from all over the world such as America, China, Russia, Japan, and Finland.

Precisely in an organization each department has an input to the success of the organization. In this era of globalization, adaption of up to date technology and having huge funds to run the organization are not the only factors that can ensure the success of organization. Because capital can be generated and technology can be developed but the appropriate, encouraged and motivated human capital is what a firm needs to be a competitive leader. Developing and managing the human resource is now one of the most critical factors that lead to the outstanding performance of the firms. Many a firms and individuals has now recognized that apart from other resources of the organization, managing of the human capital of the organization is hence the most important as it can lead a firm to gain the most sustained competitive advantage.

While we study the importance of human resource practices in organizational effectiveness, it is mandatory to address the challenges faced by human resource management. Certain challenges faced by human resource including globalization are advancement in technology, deregulations, diversity of workforce and work related issues. The high performing HR practices such as recruitment & selection, training & development, performance appraisal, compensation & benefits, and employee relations has gained significant importance as they play integral role in meeting those challenges. Productivity, quality, services and increased customer satisfaction are the critical success factors of organization's performance, having a direct linkage with the human resource practices. Thus human resource practices needs to be implemented and carried out in such a way that it should be the basis of employee's motivation, achievements, abilities and commitment to the work. Hence the focus of our study will be to get an understanding that how HR practices can create a best match with firm's performance and helps to generate a worth-taking competitive advantage for any organization. The articles and Previous research work which we have studied is cited mostly in the summarized form below:

Relationship between HRM and Firm Performance

Employee Relations involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals who arise out of or affect work situations. We explore that the connection of human resource management practices and organization's performance but also tends to make the comparison of this relationship in various countries over the world, to analyze how these practices vary in different organizational culture and norms. Most of the studies are based on the facts and information that are based on single country. But to have a broader view and understanding this study seeks to add to the literature a systematic comparison of HRM and firm's performance in organizations of America, Finland, and Russia, having a diversified culture and workforce. The focal point of the author is to draw the attention towards the fact that in this highly globalized world, where everything is possible, human resource (capital) is the only asset that firm possess, that in future can be direct source of competitive advantage. From the firm's perspective, where human resource (capital) has the potential to produce great benefits and outcomes for the firm, likewise it can be a source of producing high costs as well that needs to controlled, through certain practices. From the past many years there has been a considerable debate over the investment on human resource management practices. For each firm the accomplishment of organizational goals stands out to be a firm's performance and this is not possible without developing better understanding and relationship with employees. According to Wright, McMahan, and McWilliams (1994:298), human resource management is “the pattern of planned human resource deployment and activities intended to enable an organization to achieve its goals”. Numerous human resource practices are present that can aid to achieve high performance, but author has examined the effect of following high performing practices including; performance appraisal, training, internal communication(employee relations), and performance based compensation. Moreover, with the study of high performing practices, the author has selected employee motivation and ability as the mediating variables that affect the firm's performance. Many of the studies have proved that the employees need to have the certain competencies and abilities that can enable them to achieve the desired goals. Furthermore, motivation being the key factor that enhances the employee's ability to work hard. In other word, performance is the sum of motivation and ability (performance=motivation+ ability).

Human Resource Practices are rated as the important lever or tool that can be used to by the firm to increase the ability and motivation of the employees, contributing towards the achievement of firm's goal. In his influential study of the impact of high performance work practices on corporate financial performance, Huselid (1995) factor-analyzed a number of HRM practices and categorized practices into two categories that he called employee skills and employee motivation.

The selected Human Resource practices have a great influence on the employee's ability and motivation. Performance appraisal system enables the employees to get a feedback about their performance and determine the deficiencies and required skills that are beneficial for the company. Most of the performance appraisal systems ascertain targets to be accomplished for individuals, compelling them to work hard and achieve more and add to the success of organizations.

Secondly, positive linear relationship exists between employee training and organizational performance. Training establishes the sense of recognition in the employees and helps to increase the marginal productivity of each employee. Better the employees of the organization are trained more are the chances that they tend to be competent enough to cope with future changes either technological or environmental.

Performance based compensation also promotes the desired behavior to increase the motivation of employees, but two of the issues must be addressed to guarantee the sustainable motivation. First, employees must have expectations that specific behaviors will lead to the attainment of certain desired outcomes, incentives and recognition. Additionally, trust/support that a firm shows towards its employees is likely to be reciprocated by employees resulting in their active engagement in behavior that support the fulfillment of firm objectives.

Previous research has also shown that employees are more motivated when they know what is going on in the firm. Sharing of information on, for example, strategy and company performance conveys to the employees that they are trusted. Further, it is important that employees know what is going on in a firm so that they can use the knowledge that resides in the firm to its fullest potential (Pfeiffer, 1998).

The study of these practice in different countries generated variety of results. In view of this literature, communication is especially important for facilitating employee motivation in Finland, a country known for its egalitarian attitude and not as important in Russia, a country used to authoritarian leadership where employees have little chance for input. The importance of communication in the US is some place in the middle. Training is most important in Russia, a country where many people have been trained in areas other than those they are now working in due to the transition from communism to a market economy and the need for a different distribution of jobs due to the economic transition.

PRODUCTIVITY AND CORPORATE FINANCIAL PERFORMANCE

The impact of human resource practices on the overall firm's performance is analyzed by many authors. MARK A.HUSELID findings are based on the study of more than one thousand firms in which he particularly focused on factors such as intermediate employee outcomes (turnover & productivity) and more importantly short and long term measures of corporate financial performance. One of the significant aspects of this study was which other studies have not yet focused is that the impact of high performance work practices is contingent on both the internal fit, among these practices and external fit, between a firm's system of such practices and its competitive strategy. Apart from the impact on financial performance of firm this study has also highlighted the issues of employee retention and turnover rate that are directly or indirectly affected by these practices. An increasing body of work contains the argument that the use of High Performance Work Practices, including comprehensive employee recruitment and selection procedures, incentive compensation and performance management systems, and extensive employee involvement and training, can improve the knowledge, skills, and abilities of a firm's current and potential employees, increase their motivation, reduce shirking, and enhance retention of quality employees while encouraging nonperformers to leave the firm (Jones & Wright, 1992; U.S. Department of Labor, 1993). Unfortunately, there are not many organizations that use this resource optimally. Most of them abuse, misallocate and misdirect this resource to an incredible degree. All organizations, whether national, multinational or international, have to deal with this resource, which is limited in the environments they operate. Implementation of HRM practices will help the organizations to utilize their human capital to their maximum potential. With people being a company's biggest asset, it has become essential, if not critical for companies to keep their employees satisfied and fulfilled in order to achieve maximum productivity from them. Each of these practices should aid each other, so as to create a cohesive effect on the employee's performance. Large number of talented and skilled employees in the organization does not ensure that they are competitive. Proper formal and in-formal training experiences should be the part of employee's development program. Similarly the training of these skilled employees will not be fruitful and will produce limited results unless until motivation be the part of their work. Appraisal practices linked with the employee performance and internal promotion and rewards can foster motivation among employees. Likewise, information-sharing programs, formal grievance procedures, and profit- and gain-sharing plans help to increase the probability that employee participation efforts will be effective because such programs provide a formal mechanism for employer-employee communication & relations on work-related issues. Conclusively, creating a work environment in which employees are productive is essential for the growth and development of any organization and all this can be accomplished by adaptation and implementation of best human resource practices.

HRM Vision in India

Due to globalization and advance technology the completion level increases much and there should be an advantage effect to compete your competitors and HR is one of that tools that makes organization to grow. As HR is very important for growth and in India we are still trying to generate the vision of HR.

According to World Bank there are different components used for economy growth such as Human Capital 64% Physical Capital 16% Natural Capital 20%. As mention above we should not consider as the expenditure but should implement and design the effective HR policies as an essential investment. We should pay attention towards HR management and policies to achieve sustained economic growth and social development in the 21st century. Human resources are of great importance for a poor country like India. In 21st century only that firm will survive which understand the complex competition and who have the ability to respond that challenge. If we consider the investment in HRD of different countries then India is very behind. Investment of India is only US $. 10 where as India and Indonesia invest US $. 31 and US $. 54.

But unfortunately many of organization weather national, multinational or international, are not using his resource they have to deal with it in this limited environment. The most essential or important element of today's organization success depend on the customers, quality of your product and on work force of our organization. All these elements are heavily depended upon human resource such as education and training. With the changing competition, consumer demand technology and work force organization are now becoming increasingly aware of HR contribution to the progress and growth of their businesses.

For any organization there are three things that matter one is capital, technology and human resource. Capital helps to generate something, through technology we can develop but appropriately encouraged and motivated human resource is required to boost the organization and the nation through the coming challenges.

Human resources are playing an important role in the transformation of India from an underdeveloped country to a developed nation. Guidance and necessary support is required to increase their capabilities and enhance the productivity. The government has put in special efforts in developing and utilizing human resources.

Many of the organization still believe that there is no use of Human Resource in their organization and on other hand there are many larger organizations that recognize their commitments to have the best practices in HR, but unfortunately fail to deliver its implementation. There is another problem is the education system of India. Education has the opposite reaction we can say disappointed one for the youth in the perspective of future job. This lead to frustration and emigration of trained people is common.

There is a big gap in the training process which is a crucial stage. A bold and imaginative thinking is required for our youth such training facilities, capacities and programs. Basically India's human resource does not understand the global challenges and failed to utilize the technology which can make this country in the line of developed one. The current situation of India will continue to lose competitive ground to foreign nations unless the country switches to a strategy of better educated, better trained employees with global orientation and with more productive forms of work organization.

India HR has a revolutionary thinking approach we just need a person who can convince others that they can deliver strategic results with a positive attitude. And they have to develop a multi-skilled and a multi-functional department that adds value to the organization on the whole.

Now the government of India is taking a step forward to make a group of experienced human resource professionals who make the organization to compete and have competitive advantage by using the human capital strategy.

Competent human resource professionals recognize the requirements of a profession and are willing to invest in maintaining and improving their skills and knowledge while keeping up with rapidly changing times

HUMAN RESOURCE MANAGEMENT IN RUSSIA, CHINA AND FINLAND

The differences in HR practices both formal and informal system used in the organization to shows the HRM staff and managers play an important role in the HRM practices work optimally. This system shows that both managers are accountable for their responsibilities which are important for a lively profitable organization. The central focus is on “WHAT” HR AND “HOW” HR.

As we know the importance of human capital because in 21ST the need of every organization is human capital which can be retained and motivated by the HR practices. As scholar such as Bartlett and ghosal have pointed out a recent Sloan Management Review article “Building competitive advantage HR through people “without human resources management system leadership and most functions of an organization will struggle. The research shows the good result that those companies having the HR practices shows that employees are more competent, better motivated and committed towards the organization success which ultimately raise the organizations performance.

Scholars such as Taylor, beechler and Napier, have argued that organizations which are competing globally sometimes they have a HRM strategy that blends the global standardization with local responsiveness. Furthermore the role of line manager and staff manager is particularly important in the supplementing a formal HRM practices. This article seeks to add value by providing as in depth comparison of Russian, China and Finnish subsidiaries of here Swedish multinational corporations (mnc's)to augment our understanding of “what “of HRM, but also shed new light on ““How” of HRM. By “How” the mean “what” part of HR is done by line manager and “what” part of HR done by HR manager.

The problem faced in the most organization that they maintain a flexible balance between the employee morale and motivation, innovation and creativity among the employees. To achieve the specific targets the organization follow the HR practices which helps in achieving the desired goals and commitments towards the success. Similarly the enhanced feedback system is used to maintain a check and balance between the subordinates as if they perform the any wrong action then they will be accountable for it. Various formal and informal processes are used as dependent on the local context where the organization is operating.

RECIURTMENT AND SELECTION:

Managers in Russia and china subsidiaries felt that hiring is important part on which the organizations must have to follow it. Russia and china have more population than Finland, Russia and china the hiring is highly appreciated because employees which hired are mostly MBA's and gets western training. Both the local and expatriate interviews asserted whenever possible (if the required candidate is found)they prefer the local candidates because understand the local culture, environment and know the language which decreases the problem of expatriates' and being a local person the way he deals with the customer is more profitable. In 1980s and 1990s foreign firms representative offices through they hire employees directly in china-they were hired through the assistance of a state organization. Now this is changed because now the well developed HRM department by the time it is getting the most foremost part other organization.

PERFORMANCE APPRAISAL:

Parents companies influences on the performance appraisal in Russian, China, and Finland. These countries used the most appropriate tools for the appraisals of the employees were largely concerned with employee development activities. Various characteristics such as leadership ability and team work capacity. Employees are monitored on the basis of short term goals which are both individual and company level goal. On the basis of these goals the employees get the incentives which are equivalent to about 10%-20% of yearly salary. The quality of appraisal based on the manager policy of appraisal. The performance appraisal system needs to know the basic concept of appraisal which shows clear direction about it. Now there exist a difference in informal and formal appraisal the feedback system is introduced to alert the employee that someone is here to check you. Feedback increases motivation and spirit in the department. This indicates that contribution to the whole company and their development. Sweden is a country where high quality of life and benefits provided to the people. Now for customer wants quick response and short delivery time are essential.

TRAINING AND DEVELOPMENT:

T&D received much attention and were more formalized in the Russian and Chinese subsidiaries than in the Finnish subsidiaries. The logic behind it is that these people are capable and had more diverse background. In Finland average age is 40 years and they need different kinds of training to gradually develop the management skill, communication. They have high potential and have greater ability to absorb the skills.

There was a system of developing the high potential and this system was very strong meaning very formalized and received much attention. Every employee had a development plan that was kept in the HR department, and progress was strictly monitored by HR staff. There was explicit and implicit pressure on employee to attend the training. At that time employees are not forced to get the particular training especially for the promotion. Standardized trainings are constantly help in the core development of the organization. All these three companies use the on the job training which help in the development of employees. The training needs can be identified by line manager and HRM personal together in all these companies. As one manager said ,”employees can put forward their previewed training needs and supervisor judge whether the employee should take part in the training program according to the needs other employees and department.

COMPANSATION SYSTEM:

The compensation system is similar in Russia China and Finland; they adopt the same way of the compensation awarded to the employees. The employees get the performance based compensation and coordinated from headquarter. However, performance based compensation of some type was an important salary component and also act as a motivating factor. Careers opportunities and personal development are the most important for in job and also consider apart of compensation. Managers supported by strong HR practices where some signs of lack of incentives among the managers to develop their own deficiencies.

EMPLOYEE RELATION:

Managers have a positive or negative view toward employee involvement in decision making. We similarly distinguish between establishments where no council is present in which management supports or does not support worker participation. We pressure the possible role of works councils and contribution in motivating employees. Data indicates that the structure of the workforce, principal-agent problems between owners and managers, collective bargaining, direct employee involvement, human resource management practices, and market strategy and innovativeness all play important roles. Some conflicting in the works may be due to the failure to distinguish among industrial relations participation regimes characterized by cooperative or uncooperative relationships between works councils and management. Surprisingly little research has been done to understand the industrial professional services sector and, in particular, to discover “what “factors lead to new product success or failure.

Whatever your approach, the key to success is to devote the time and resources it takes to develop a policies and practices strategy for your business before the need arises. It's an investment that can pay large dividends in increased productivity and minimized litigation and it's an essential component of your comprehensive people strategy every good performance is appreciated in the form of a pat on the back, bonuses or giving some other compensation for a job well done. Organizations that struggle to keep up with the attrition rate are mostly those that think employees are “just” doing their job. Even if it is the employee's job, completion in an appreciable manner calls for an incentive, and this goes a long way in boosting the staff morale. These incentives can be implemented at the individual as well as the team level and it has been seen that this works wonders in getting the best out of the employees. But it is important to keep in mind that these bonuses should not be given without a reason, unless it is a commitment for annual bonuses or some such thing. Doing so will only reduce the perceived value of the bonuses. There are many different types of people and, not surprisingly, they react differently to the need for policies and practices based on those differences. For example, some people prefer that there be a written policy for everything, while others favour having no policies at all and would leave everything open to interpretation as situations arise. Neither of these extremes contributes to a work environment that is conducive to high productivity levels. When you get to the heart of the matter, performance improvement is really about the process of setting expectations and meeting them. The focus in business is not just about meeting specific goals, but also how you achieve them. And the “how” affects the liabilities you create in the process. Four key elements related to the development and deployment of your policies and practices - roles, rules, consequences and tools.

Roles

People like to have a clear understanding of their role in an organization and the roles of others. Every successful team has well-defined positions for its members. Everyone knows what he or she is to do, how to do it and how their performance can impact those around them. In business, this means you need to have clear reporting structures that spell out who is in charge and how tasks are to be accomplished in the organization.

Rules

Managers and employees need to share a clear understanding of what is and what is not acceptable behavior within the organization. Unfortunately, in today's workplace, an employer can be held liable for the bad behavior of an employee, especially when that bad behavior affects other employees, clients or individuals. Having a clear set of behavioral expectations is critical to establishing that you are not contributing to that bad behavior as an employer. Setting clear and specific behavioral standard in the form of rules establishes a framework for spotting and addressing violations of those standards.

Consequences

It is important that you clearly state consequences for violations of your behavioral standards, so that employees know what to expect and have fair warning of those expectations. In addition, clear consequences help to ensure that you are not limited in your options for dealing with improper behaviors. To establish these standards and violation consequences, sit down with your management team and think through the over-the-line behaviors that will not be permitted in your organization. It is essential that you know ahead of time what employee actions require an immediate dismissal. Building a great company has a lot to do with how people work together. Policies and practices can improve the way your employees interact, while minimizing the personnel obstacles that often arise in today's workplaces.

Tools

Tools address the question of how you support the supervisors in your company who manage employees. Tools like these are vital not just to help avoid litigation, but also to minimize the time it takes for you to deal with productivity-draining people issues instead of core business matters.

Whatever the approach, the key to success is to devote the time and resources to develop a policies and practices strategy for your organization before the need arises. It is an investment that can pay large dividends in increased productivity and minimized litigation. And it is an essential component of your comprehensive people strategy.This article showed that while focus on HR system is clearly beneficial, both informal and formal system should be used to make hr practices work successfully in different environment.

In a qualitative, open-ended survey, 30 senior executives were interviewed to identify the existing HR practices in sector of India's HR development sector. The designations included HR Heads, Coos, Directors of the companies' Descon and Nespak.

˜When asked to compare the their current workplace to their previous one, for the participants who were on their second job, 19% of the respondents upheld the decision-making process, 5% supported contingency planning in times of budget constraints, 10% supported better resource utilization by the current employer, whereas, the remaining 67% favored all the options including better cost allocation, resource utilization, decision-making process and contingency planning in favor of the existing employer

10% ofthesample respondents believed their day-to-day function to be technical, 62% believed their day-to-day input to be managerial, whereas, 29% believed that their input was both technical and managerial. As HR still exists informally with no real reflection on the balance sheets of the company, it is often left out of focus in local organizations. But is it immature to state that the HR operations are carried out as per the ‘rulebook'.

Every organization wants to make a huge profit, but few organizations know how to EARN a lot of money, there exist a big difference in making and earning. “Maslow or Herzberg that claims most people are not motivated by money to do a good job. Instead, other values drive people to do a good job and be productive, such as self-fulfillment, growth, and so on”.

Basically two common types of benchmarking are used at companies:

  1. Money Motivation
  2. Power Motivation.

These organizations want to make lots of money and they also feel stimulated about exerting supremacy or keeping control of their current company situations. The company know how to motivate its employees they are using the power of money and power of motivation, more employee which shows motivation leads towards the succeeds of the organization, employees shows the commitment towards the wok and they are heartedly devoted towards the work.

One recent multi sector review of research on the relationship between HRM and organizational performance reported that "more than 30 studies carried out in the UK and US since the early 1990s leave no room to doubt that there is a correlation between people management and business performance, that the relationship is positive, and that it is cumulative: the more and the more effective the practices, the better the result"

More evaluation attention needs to be devoted to examining the intermediary steps between the two end points of HR strategy and organizational performance.

He has summarized seven characteristics that he identifies as the core practices that "characterize

Most if not all systems producing profits through people".

These seven characteristics are:

HRM CHALLENGES

HRM had different approaches and objectives before 2009, but with the advent of the recession, HRM professionals need to look at the challenges not only from a different perspective, but also with fresh and creative ideas.

This year, HRM professionals will have to develop ideas that can not only help to sustain the business, but also cuts on costs such as those of employee training etc. When it comes to employees, HRM professionals will have to be very smart in their approach to make sure the top potential of the organization are protected.

Another very important factor will be controlling the headcount of the organization, which means new inductions will have to be kept to a minimum and existing employees will have to be moved around within their lines in the organization.

Every day, many businesses are either declaring bankruptcy or are on the verge of closure due to the inability to provide the base salaries. Many are taking the course of Jobs Cut. As a result, HRM professionals will have to address the issue of cost management as well. The HRM Function has to communicate honestly, openly and positively.

Interestingly, for the talented and smart professionals, this tough and challenging phase of global economic recession will bring an excellent opportunity to learn how to deal with crisis in tough times.

Skilled Human Resources

The key challenge for India is the availability of adequately qualified and skilled human resources in infrastructure sector; According to a World Bank study.

It also includes that there are non-professional managers and insufficiently qualified technical personnel head contracting firms in India. Even though India Engineering Council (PEC) bylaws make it mandatory to employ graduates, but still most contractors fails to do so. And they also lack skills for risk management, marketing, financial control, work organization and quality control.

For delivering the MTDF planned infrastructure, the WB study stated that the government needs to take steps to enlarge the available pool of skilled HR at the outset, and concurrently increase the level of skills. And they can reverse the trend of brain drain, or else the most viable option is to increase enrolment of students in higher education and technical and vocations institutes leading to professional, vocational and administrative careers in the construction sector.

To increase the skill sets, training of current employees in the construction sector should be conducted both within India and abroad. Foreign training should be considered for specialized fields.

Within India, WB study pointed out, engineering universities and other professional schools can offer better training programs and if teachers are not available, foreign staff can be recruited.

World Bank Study also describe that it would be safe to say that training is required almost in all fields and at all levels. And In tackling the human resource problem it is critical to focus not just only on the human resources requirements of consultants and contractors but of the client as well.

Furthermore; it suggests that the government with its dual role of a client and policy maker is the most effective agent of change but in order for this to happen, managerial and professional capacity of the client has to be enhanced. And specialized training to appropriate personnel in relevant areas and exposure to international best practices and successful infrastructure experiences in the developed and developing world should be provided.

CHALLENGES OF HRM IN CORPORATE WORLD

Firstly, it explains what HR can do to cope and deal with recession. The role of HR is that it needs to be proactive, must retain valuable employees. While hard times organizations take harsh decisions like downsizing but downsizing should rather be rightsizing. Moreover, organizations need to be more creative to face the challenges.

The challenges in corporate sector are that there are no longer living under vitality but has started living in realities, to pay heavy costs for workforce living, making a paradigm shift towards reality, A large scale change of the Human Resource systems, Fine tuned to make a shift or ready for changes, Continue to outperform, excel and remain a leader. The perspective of human resources is that Human Resource delivers system processes into Human Resource enabling system and to achieve high levels of mutual commitments.Mutual commitments are according to the three corporate levels which are strategic, functional and workplace.

According to the author the role of HR in recession period has increased as has responsibility to keep people aligned in critical situation. It has to balance the workforce, do fair evaluation of employees and maximizing their inputs.

Moreover, in the recession the major challenges for the human resource management are to be able to help organization to enhance their abilities to learn and collaborate, manage diversity, ambiguity and complexity. Human Resource Management is responsible to manage the human resource of the corporate to maximize the productivity, efficiency at minimal cost and maximize profit. During this global recession, Human Resource Management is facing many challenges and changes in organizational level, workplace and HR department level itself. The challenges can be faced by HR Managers effectively if proper strategies are implemented.

Effectiveness of a corporate HR department

We examine the impact of human resource practices on the firm performance. The study of literature and variety of articles on HR published by different authors, clearly predicts that HR practices have a predominant effect on the firm's performance. These studies include results from above 500 organizations from all over the world such as America, China, Russia, Japan, and Finland.

Precisely in an organization each department has an input to the success of the organization. In this era of globalization, adaption of up to date technology and having huge funds to run the organization are not the only factors that can ensure the success of organization. Because capital can be generated and technology can be developed but the appropriate, encouraged and motivated human capital is what a firm needs to be a competitive leader. Developing and managing the human resource is now one of the most critical factors that lead to the outstanding performance of the firms. Many a firms and individuals has now recognized that apart from other resources of the organization, managing of the human capital of the organization is hence the most important as it can lead a firm to gain the most sustained competitive advantage.

While we study the importance of human resource practices in organizational effectiveness, it is mandatory to address the challenges faced by human resource management. Certain challenges faced by human resource including globalization are advancement in technology, deregulations, diversity of workforce and work related issues. The high performing HR practices such as recruitment & selection, training & development, performance appraisal, compensation & benefits, and employee relations has gained significant importance as they play integral role in meeting those challenges. Productivity, quality, services and increased customer satisfaction are the critical success factors of organization's performance, having a direct linkage with the human resource practices. Thus human resource practices needs to be implemented and carried out in such a way that it should be the basis of employee's motivation, achievements, abilities and commitment to the work. Hence the focus of our study will be to get an understanding that how HR practices can create a best match with firm's performance and helps to generate a worth-taking competitive advantage for any organization.

Data collected in this article from using different methods plus from multi organization with different designation people so that it covers the all mind frames and we get the accurate result. Junior HR practitioners were excluded because they were mainly employed in operational/personnel administrative functions with little or no strategic input to the strategic management process. This was concerned by data collected from four junior corporate-level HR practitioners during the exploratory stage.

The HR Function of the Future

According to the writer Mr. Vincent, In today's turbulent economy, company executives and human resource (HR) practitioners, most especially, are called to move away from their traditional administrative functions and to play a more strategic role in strengthening organizational capabilities. Many forces affect businesses and how they operate today. In the wake of recent terrorist threats and corporate scandals, security and corporate governance concerns also expand the operational requirements of a business. The increasing recognition of “human capital” as an asset with a significant impact on sustained competitive advantage is driving the transformation of many companies' HR function.

Because more is expected of people today, HR practitioners must be more than an administrative arm of an organization and be increasingly involved in enabling growth, productivity, and profitability. HR practitioners are compelled to assume business and consulting roles, aside from transactional functions such as compensation and benefits administration or routinary recruitment. Further, HR practitioners need to reach out to a more diverse and young workforce with a continually changing value system that affects their work ethic. Employees' need for work-life balance has become more pronounced, challenging HR and management to find appropriate motivators for today's employees. This increases the pressure on the HR function to create an environment in which employees continue to flourish and propel companies toward the achievement of their objectives.

In order for the HR function to move from the backroom to the boardroom, HR issues must be addressed, and the role of line managers must evolve into that which accommodates an increasing involvement in developing solutions to address the concerns of their people. Together, the strategic importance of HR issues and the changing role of line management will be the two key forces of change operating on HR.

Strategic HR issues include:

or be shared at all levels, from senior management down to junior management?

Manner by which HR can help the organization compete in the market place - What efficiencies can be achieved in the HR Department in its processes, policies, and procedures? • Technology requirements - What systems will HR need to support its changing and growing requirements?

The HR function of the future: new roles and a changing focus

Given all the issues confronting today's HR function, HR practitioners are being called to assume roles beyond the traditional HR administrative functions. Dave Ulrich3 has outlined five key roles HR has to play in order to help organizations meet their strategic objectives:

Manager of processing, compliance, and reporting - HR must align its strategic and tactical plans with those of the corporation, comply with laws, create policies, and execute administrative processes, all in a cost-effective manner. Several of the roles may help HR respond to the evolving profile of today's workforce. As change agent, employee champion, and advocate of employee development, HR departments in some organizations have instituted improvements in the workplace, such as upgraded or flexible employee benefits, wellness programs, and the like. Attaining the HR function of the future- HR management is no longer confined to the social sciences, and requires skills and knowledge in other disciplines such as marketing and communication, management of information systems, operations, economics, and finance. Some organizations may even invest in training programs that can further the business acumen of their existing HR practitioners. As such, HR practitioners will be more comfortable in the role of strategic partner, equipped to be in boardrooms, and perceived as an increasingly important ally by senior management and line managers. The structure of HR departments in some organizations has already begun to evolve. Instead of being divided according to specialized functions such as compensation and benefits, training, recruitment, and the like, some HR departments have restructured themselves to service “accounts” or business units, requiring HR generalists who are knowledgeable in all functions of HR as “account managers.” This structure enables more HR practitioners to veer away from being highly transaction-based to more solutions-focused. Technology is also an important factor in attaining the HR function of the future. By leveraging technology, HR can reduce some of its more routinary tasks and processes and create more time for focusing on strategic HR concerns. An integrated Human Resource Information System (HRIS) can also serve as a tool for gathering information that will be used to carry out a number of HR functions such as performance appraisals, employee counseling, and recruitment. In some companies, HR has begun to act as an internal consultant. Other companies may also opt to get external consultants to perform HR functions in lieu of the traditional HR department.

Conclusion- Ultimately, HR practitioners must begin to move from backroom to boardroom. With the heightened need for knowledge workers, HR is being propelled to the forefront of business strategy. Much is being asked of HR practitioners today — versatility in business functions, propensity for innovation, diagnostic insight, and a broadened knowledge of business processes. But all these may be worth HR's efforts if practitioners can say that their broadened competencies have enabled their companies to improve performance and deliver excellent service to their customers.

Research Methodology

RESEARCH METHODOLOGY:

As far as the nature of our topic is concerned, it focuses towards the HR department of a specific organization helps us to spot and enlighten the problems in the performance of that organization in terms of HR practices. For our research thesis, we have selected DESCON ltd. as that topic of study for HR practices. On the basis of our selected organization, we design our research as “Feasibility Report”. In this we have to explore the HR practices at DESCON ltd. which we have selected for study in order to make a case study. The reason for selecting this company is that it is one of the biggest organizations operating in Asia. Secondly it exists in a developing market where concept of HR is under developing stage, so the practices of HR and critical analysis for the activities can be undertaken in a productive manner.

This research is conducted in order to analyze the effectiveness of the HR strategies at Descon Engineering ltd. it is aimed to find out the effectiveness of Human Resource Practices at DESCON Engineering Pvt Ltd and to identify the various HR practices performed in the organizations.

HR Introduction:

At DESCON, their belief is that "their people are their greatest asset. They take great pride in acknowledging the contribution each one of them makes". They focus on People Development and for that they ensure:

§ Staff at DESCON with world class Professionals and ensure that the right systems are in place to encourage them to develop to their full potential.

§ Create a collaborative and mutually supportive work environment that encourages people to grow.

§ Build a team of professionals who deliver expertise by participating in business decisions.

§ Develop Performance Management and reward systems underlying our Business strategy.

SIGNIFICANCE OF THE STUDY:

This study will not only helps us to explore the knowledge about the Human resource departments and strategies, but also make us enable to discover that how our educational knowledge is applied in practical terms in any organization. In addition to that we shall come to know about the working of the human resource departments of Descon Engineering ltd. Eventually study enabled us to determine the effectiveness & importance of HRM practices in organization's overall performance.

OBJECTIVES:

For our research study, following objectives have been defined:

To Critically analyze the HR department activities of Descon Enginerring Ltd. and their impact on employees performance.

RESEARCH DESIGN:

We are going to design our research on the following basis:

RESEARCH QUESTION:

On the basis of our initial study of literature and articles regarding recruitment activities in an organization, the brainstorming gives birth to following research question in order to get explored:

Does the expected employee's performance is directly related to the undertaking of Successful HR activities?

This research was conducted to find out the practices performed in the DESCON ENGINEERING LTD that are related to:

  1. Recruitment & Selection
  2. Compensation & Benefits
  3. Performance Appraisal
  4. Training & Development
  5. Employees Relations

This further helped us in determining which organization better performed in these practices and which practice is most effective in achieving organizational objectives.

So main question is that how Human Resource Department Creates a difference in the performance of the firm or simply what is the effectiveness of the Human Resource department in the organization. As our research goes forward, we shall be able to go through the following blue print

Population:

This is the study of DESCON, so the population includes the entire staff of this firms.

Target Population:

Our target population includes the selective sample from Technical, Engineering, Finance and Human Resource department as well.

Sample Size:

In view of our large target population of the organization, samples will be as such that it adequately represents the target population of 10-12 from each department.

Data Collection Tools

Data for this research will be collected using number of sources and techniques. The whole process of data collection will include the following:

Interviews:

Interviews will be conducted with the top management about their policies andvision of the Human Resource practices and level of their satisfaction with respect to employees and practices.

Structured Questioners:

Close ended questioners will be developed in which questions relevant to the study will be included for data collection. The questionnaire comprising of 22 questions will be filled in manually by all the employees of both organizations while keeping in view that they are being provided with enough time to answer all the questions.

Article Reviews:

Different articles written by various authors will also be reviewed in order to acquire the data that supports our problem statement.

Data Analysis:

The findings from the structured & unstructured interviews, structured questioners, and article review will be documented. For analyzing the data gathered, no complicated calculations will be used infect Microsoft Excel will be used for the interpretation of the data.

Limitations:

This comparative study is limited to the employees of DESCON Pvt Limited & NESPAK in Lahore.

Ethical Issues:

While conducting this research top management and all the participants will be made aware of the purpose and scope of the project. Furthermore, respondents will be assured about the confidentiality of data, no misuse of it as it will only be used for academic purposes.

QUESTIONNAIRE

Following is the questionnaire prepared by us in order to collect the data for analysis

Effectiveness of HRM Policies in Employee Performance

We are conducting research for our final project and are purely for academic purpose. Confidentiality of the information will be maintained. We assure you that these answers will not affect your work at organization. So you are requested to give the most genuine answer of your opinion to uphold the truth.

NAME____________________ Age_______

Designation__________­_____ _ Organization______________

Department_______________

Which of the following methods organization is using for hiring?

a. Outsourcing

b. Direct hiring

c. Internal promotions

d. Others______

Recruitment is purely merit based?

a. Yes

b. No

People selected are most suitable for the job?

a. Yes

b. No

Does the organization encourage referrals?

a. Yes

b. No

Which of the benefits you are enjoying at this organization?

a. Medical/health

b. Residence allowance/loan

c. Personal loan

d. Travel

e. All of the above

f. Specify__________________________________

Are you given incentives or rewards for bringing forward new suggestions?

a. Yes

b. No

My salary package is equitable for me?

a. Yes

b. No

Does your organization offers you pension or retirement savings plan or profit sharing plan?

a. Yes

b. No

Does the organization conduct the practice of performance appraisal?

a. Yes

b. No

Which method of performance appraisal is adopted by the organization?

a. 360 degree evaluation

b. Individual ranking

c. Relative standards

d. Grouped ranking

Have you ever been rewarded as a result of performance appraisal?

a. Yes

b. No

Does performance appraisal motivate you to do work?

a. Yes

b. No

Promotions are purely based on performance appraisal?

a. Yes

b. No

Does the organization provide training to you?

a. Yes

b. No

Does the organization perform training need analysis?

a. Yes

b. No

What sort of training do you normally receive?

a. Technical

b. Personal development

c. Managerial & communications skill

d. other_____

Do you think training is beneficial for your promotion?

a. Yes

b. No

Are you satisfied with the level of training provided?

a. Yes

b. No

What is the level of you relationship with other employees?

a. Excellent

b. Good

c. Average

I am respected and valued by my colleagues at job place?

a. Yes

b. No

Does the organization assist you in dealing with your personal problems?

a. Yes

b. No

Does the organizations provides formal or informal orientation program for new employees?

a. Yes

b. No

Data Collection

Data collection is the next step in the research designing after defining the methodology and the identification of target samples. This means a researcher have to collect data after sampling in the research. In this stage researcher/investigator knows what will be studied and who to approach to collect the require information. Technique enabled the researcher to collect information to test theory or hypothesis is call data collection. Data collection depends upon the nature of research.

As far as our research is concerned it consist of three techniques for the data collection

  1. Literature Review
  2. Interviews
  3. Questionnaire

Following is the data which we are able to collect through following techniques.

Knowledge and Findings from Literature Review

Literature Review in the form of article's summary has been described before. But for the real analysis of data a grand summary of all the articles has been presented here which defines that how much knowledge about the HR we are able to adopt after studying those articles. The grand summary and cutting from the articles for citation is given below.

A literature review is a body of text that aims to review the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work.

Most often associated with academic-oriented literature, such as a thesis, a literature review usually precedes a research proposal and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as future research that may be needed in the area.( http://en.wikipedia.org/wiki/Literature_review)

We examine the impact of human resource practices on the firm performance. The study of literature and variety of articles on HR published by different authors, clearly predicts that HR practices have a predominant effect on the firm's performance. These studies include results from above 500 organizations from all over the world such as America, China, Russia, Japan, and Finland.

Precisely in an organization each department has an input to the success of the organization. In this era of globalization, adaption of up to date technology and having huge funds to run the organization are not the only factors that can ensure the success of organization. Because capital can be generated and technology can be developed but the appropriate, encouraged and motivated human capital is what a firm needs to be a competitive leader. Developing and managing the human resource is now one of the most critical factors that lead to the outstanding performance of the firms. Many a firms and individuals has now recognized that apart from other resources of the organization, managing of the human capital of the organization is hence the most important as it can lead a firm to gain the most sustained competitive advantage.

While we study the importance of human resource practices in organizational effectiveness, it is mandatory to address the challenges faced by human resource management. Certain challenges faced by human resource including globalization are advancement in technology, deregulations, diversity of workforce and work related issues. The high performing HR practices such as recruitment & selection, training & development, performance appraisal, compensation & benefits, and employee relations has gained significant importance as they play integral role in meeting those challenges. Productivity, quality, services and increased customer satisfaction are the critical success factors of organization's performance, having a direct linkage with the human resource practices. Thus human resource practices needs to be implemented and carried out in such a way that it should be the basis of employee's motivation, achievements, abilities and commitment to the work. Employee Relations involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals who arise out of or affect work situations. We explore that the connection of human resource management practices and organization's performance but also tends to make the comparison of this relationship in various countries over the world, to analyze how these practices vary in different organizational culture and norms. Most of the studies are based on the facts and information that are based on single country. But to have a broader view and understanding this study seeks to add to the literature a systematic comparison of HRM and firm's performance in organizations of America, Finland, and Russia, having a diversified culture and workforce. The focal point of the author is to draw the attention towards the fact that in this highly globalized world, where everything is possible, human resource (capital) is the only asset that firm possess, that in future can be direct source of competitive advantage. From the firm's perspective, where human resource (capital) has the potential to produce great benefits and outcomes for the firm, likewise it can be a source of producing high costs as well that needs to controlled, through certain practices. From the past many years there has been a considerable debate over the investment on human resource management practices. For each firm the accomplishment of organizational goals stands out to be a firm's performance and this is not possible without developing better understanding and relationship with employees. According to Wright, McMahan, and McWilliams (1994:298) Human Resource Practices are rated as the important lever or tool that can be used to by the firm to increase the ability and motivation of the employees, contributing towards the achievement of firm's goal. In his influential study of the impact of high performance work practices on corporate financial performance, Huselid(1995) The selected Human Resource practices have a great influence on the employee's ability and motivation. Performance appraisal system enables the employees to get a feedback about their performance and determine the deficiencies and required skills that are beneficial for the company. Most of the performance appraisal systems ascertain targets to be accomplished for individuals, compelling them to work hard and achieve more and add to the success of organizations.

Performance based compensation also promotes the desired behavior to increase the motivation of employees, but two of the issues must be addressed to guarantee the sustainable motivation. First, employees must have expectations that specific behaviors will lead to the attainment of certain desired outcomes, incentives and recognition. Additionally, trust/support that a firm shows towards its employees is likely to be reciprocated by employees resulting in their active engagement in behavior that support the fulfillment of firm objectives. Further, it is important that employees know what is going on in a firm so that they can use the knowledge that resides in the firm to its fullest potential (Pfeiffer, 1998).

The impact of human resource practices on the overall firm's performance is analyzed by many authors. MARK A.HUSELID findings are based on the study of more than one thousand firms in which he particularly focused on factors such as intermediate employee outcomes (turnover & productivity) and more importantly short and long term measures of corporate financial performance. One of the significant aspects of this study was which other studies have not yet focused is that the impact of high performance work practices is contingent on both the internal fit, among these practices and external fit, between a firm's system of such practices and its competitive strategy. Apart from the impact on financial performance of firm this study has also highlighted the issues of employee retention and turnover rate that are directly or indirectly affected by these practices. An increasing body of work contains the argument that the use of High Performance Work Practices, including comprehensive employee recruitment and selection procedures, incentive compensation and performance management systems, and extensive employee involvement and training, can improve the knowledge, skills, and abilities of a firm's current and potential employees, increase their motivation, reduce shirking, and enhance retention of quality employees while encouraging nonperformers to leave the firm (Jones & Wright, 1992; U.S. Department of Labor, 1993). Implementation of HRM practices will help the organizations to utilize their human capital to their maximum potential. With people being a company's biggest asset, it has become essential, if not critical for companies to keep their employees satisfied and fulfilled in order to achieve maximum productivity from them. Each of these practices should aid each other, so as to create a cohesive effect on the employee's performance. Large number of talented and skilled employees in the organization does not ensure that they are competitive. Proper formal and in-formal training experiences should be the part of employee's development program.

Likewise, information-sharing programs, formal grievance procedures, and profit- and gain-sharing plans help to increase the probability that employee participation efforts will be effective because such programs provide a formal mechanism for employer-employee communication & relations on work-related issues. Conclusively, creating a work environment in which employees are productive is essential for the growth and development of any organization and all this can be accomplished by adaptation and implementation of best human resource practices.

According to World Bank there are different components used for economy growth such as Human Capital 64% Physical Capital 16% Natural Capital 20%. As mention above we should not consider as the expenditure but should implement and design the effective HR policies as an essential investment. We should pay attention towards HR management and policies to achieve sustained economic growth and social development in the 21st century. Human resources are of great importance for a poor country like India. In 21st century only that firm will survive which understand the complex competition and who have the ability to respond that challenge. If we consider the investment in HRD of different countries then India is very behind. Investment of India is only US $. 10 where as India and Indonesia invest US $. 31 and US $. 54.

But unfortunately many of organization weather national, multinational or international, are not using his resource they have to deal with it in this limited environment. The most essential or important element of today's organization success depend on the customers, quality of your product and on work force of our organization. All these elements are heavily depended upon human resource such as education and training. With the changing competition, consumer demand technology and work force organization are now becoming increasingly aware of HR contribution to the progress and growth of their businesses.

For any organization there are three things that matter one is capital, technology and human resource. Capital helps to generate something, through technology we can develop but appropriately encouraged and motivated human resource is required to boost the organization and the nation through the coming challenges.

There is a big gap in the training process which is a crucial stage. A bold and imaginative thinking is required for our youth such training facilities, capacities and programs. Basically India's human resource does not understand the global challenges and failed to utilize the technology which can make this country in the line of developed one. The current situation of India will continue to lose competitive ground to foreign nations unless the country switches to a strategy of better educated, better trained employees with global orientation and with more productive forms of work organization.

India HR has a revolutionary thinking approach we just need a person who can convince others that they can deliver strategic results with a positive attitude. And they have to develop a multi-skilled and a multi-functional department that adds value to the organization on the whole.

Now the government of India is taking a step forward to make a group of experienced human resource professionals who make the organization to compete and have competitive advantage by using the human capital strategy.

Competent human resource professionals recognize the requirements of a profession and are willing to invest in maintaining and improving their skills and knowledge while keeping up with rapidly changing times The central focus is on “WHAT” HR AND “HOW” HR.

As we know the importance of human capital because in 21ST the need of every organization is human capital which can be retained and motivated by the HR practices. As scholar such as Bartlett and ghosal have pointed out a recent Sloan Management Review article “Building competitive advantage HR through people “without human resources management system leadership and most functions of an organization will struggle. The research shows the good result that those companies having the HR practices shows that employees are more competent, better motivated and committed towards the organization success which ultimately raise the organizations performance.

Scholars such as Taylor, beechler and Napier, have argued that organizations which are competing globally sometimes they have a HRM strategy that blends the global standardization with local responsiveness. Furthermore the role of line manager and staff manager is particularly important in the supplementing a formal HRM practices. This article seeks to add value by providing as in depth comparison of Russian, China and Finnish subsidiaries of here Swedish multinational corporations (mnc's) to augment our understanding of “what “of HRM, but also shed new light on ““How” of HRM. By “How” the mean “what” part of HR is done by line manager and “what” part of HR done by HR manager.

The problem faced in the most organization that they maintain a flexible balance between the employee morale and motivation, innovation and creativity among the employees. To achieve the specific targets the organization follow the HR practices which helps in achieving the desired goals and commitments towards the success. Similarly the enhanced feedback system is used to maintain a check and balance between the subordinates as if they perform the any wrong action then they will be accountable for it. Various formal and informal processes are used as dependent on the local context where the organization is operating. . In 1980s and 1990s foreign firms representative offices through they hire employees directly in china-they were hired through the assistance of a state organization. Now this is changed because now the well developed HRM department by the time it is getting the most foremost part other organization.

Various characteristics such as leadership ability and team work capacity. Employees are monitored on the basis of short term goals which are both individual and company level goal. On the basis of these goals the employees get the incentives which are equivalent to about 10%-20% of yearly salary. The quality of appraisal based on the manager policy of appraisal. The performance appraisal system needs to know the basic concept of appraisal which shows clear direction about it. Now there exist a difference in informal and formal appraisal the feedback system is introduced to alert the employee that someone is here to check you. Feedback increases motivation and spirit in the department. This indicates that contribution to the whole company and their development. Sweden is a country where high quality of life and benefits provided to the people. There was a system of developing the high potential and this system was very strong meaning very formalized and received much attention. Every employee had a development plan that was kept in the HR department, and progress was strictly monitored by HR staff. There was explicit and implicit pressure on employee to attend the training. At that time employees are not forced to get the particular training especially for the promotion. Standardized trainings are constantly help in the core development of the organization. All these three companies use the on the job training which help in the development of employees. The training needs can be identified by line manager and HRM personal together in all these companies. As one manager said ,”employees can put forward their previewed training needs and supervisor judge whether the employee should take part in the training program according to the needs other employees and department. Performance based compensation of some type was an important salary component and also act as a motivating factor. Careers opportunities and personal development are the most important for in job and also consider apart of compensation. Managers supported by strong HR practices where some signs of lack of incentives among the managers to develop their own deficiencies. Managers have a positive or negative view toward employee involvement in decision making. We similarly distinguish between establishments where no council is present in which management supports or does not support worker participation. We pressure the possible role of works councils and contribution in motivating employees. Data indicates that the structure of the workforce, principal-agent problems between owners and managers, collective bargaining, direct employee involvement, human resource management practices, and market strategy and innovativeness all play important roles. Some conflicting in the works may be due to the failure to distinguish among industrial relations participation regimes characterized by cooperative or uncooperative relationships between works councils and management. Surprisingly little research has been done to understand the industrial professional services sector and, in particular, to discover “what “factors lead to new product success or failure. Even if it is the employee's job, completion in an appreciable manner calls for an incentive, and this goes a long way in boosting the staff morale. These incentives can be implemented at the individual as well as the team level and it has been seen that this works wonders in getting the best out of the employees. But it is important to keep in mind that these bonuses should not be given without a reason, unless it is a commitment for annual bonuses or some such thing. Doing so will only reduce the perceived value of the bonuses. There are many different types of people and, not surprisingly, they react differently to the need for policies and practices based on those differences. For example, some people prefer that there be a written policy for everything, while others favour having no policies at all and would leave everything open to interpretation as situations arise. Neither of these extremes contributes to a work environment that is conducive to high productivity levels. When you get to the heart of the matter, performance improvement is really about the process of setting expectations and meeting them. The focus in business is not just about meeting specific goals, but also how you achieve them. And the “how” affects the liabilities you create in the process. Four key elements related to the development and deployment of your policies and practices - roles, rules, consequences and tools. Every successful team has well-defined positions for its members. Everyone knows what he or she is to do, how to do it and how their performance can impact those around them. In business, this means you need to have clear reporting structures that spell out who is in charge and how tasks are to be accomplished in the organization. It is important that you clearly state consequences for violations of your behavioral standards, so that employees know what to expect and have fair warning of those expectations. In addition, clear consequences help to ensure that you are not limited in your options for dealing with improper behaviors. To establish these standards and violation consequences, sit down with your management team and think through the over-the-line behaviors that will not be permitted in your organization. It is essential that you know ahead of time what employee actions require an immediate dismissal. Building a great company has a lot to do with how people work together. Policies and practices can improve the way your employees interact, while minimizing the personnel obstacles that often arise in today's workplaces. Whatever the approach, the key to success is to devote the time and resources to develop a policies and practices strategy for your organization before the need arises. It is an investment that can pay large dividends in increased productivity and minimized litigation. And it is an essential component of your comprehensive people strategy.This article showed that while focus on HR system is clearly beneficial, both informal and formal system should be used to make hr practices work successfully in different environment.

Every organization wants to make a huge profit, but few organizations know how to EARN a lot of money, there exist a big difference in making and earning. “Maslow or Herzberg that claims most people are not motivated by money to do a good job. Instead, other values drive people to do a good job and be productive, such as self-fulfillment, growth, and so on”.

Basically two common types of benchmarking are used at companies:

iii. Money Motivation

iv. Power Motivation.

These organizations want to make lots of money and they also feel stimulated about exerting supremacy or keeping control of their current company situations. The company know how to motivate its employees they are using the power of money and power of motivation, more employee which shows motivation leads towards the succeeds of the organization, employees shows the commitment towards the wok and they are heartedly devoted towards the work.

Another very important factor will be controlling the headcount of the organization, which means new inductions will have to be kept to a minimum and existing employees will have to be moved around within their lines in the organization.

Every day, many businesses are either declaring bankruptcy or are on the verge of closure due to the inability to provide the base salaries. Many are taking the course of Jobs Cut. As a result, HRM professionals will have to address the issue of cost management as well. The HRM Function has to communicate honestly, openly and positively.

The challenges in corporate sector are that there are no longer living under vitality but has started living in realities, to pay heavy costs for workforce living, making a paradigm shift towards reality, A large scale change of the Human Resource systems, Fine tuned to make a shift or ready for changes, Continue to outperform, excel and remain a leader. The perspective of human resources is that Human Resource delivers system processes into Human Resource enabling system and to achieve high levels of mutual commitments.Mutual commitments are according to the three corporate levels which are strategic, functional and workplace.

According to the author the role of HR in recession period has increased as has responsibility to keep people aligned in critical situation. It has to balance the workforce, do fair evaluation of employees and maximizing their inputs.

According to the writer Mr. Vincent, In today's turbulent economy, company executives and human resource (HR) practitioners, most especially, are called to move away from their traditional administrative functions and to play a more strategic role in strengthening organizational capabilities. Many forces affect businesses and how they operate today. In the wake of recent terrorist threats and corporate scandals, security and corporate governance concerns also expand the operational requirements of a business. The increasing recognition of “human capital” as an asset with a significant impact on sustained competitive advantage is driving the transformation of many companies' HR function.

In order for the HR function to move from the backroom to the boardroom, HR issues must be addressed, and the role of line managers must evolve into that which accommodates an increasing involvement in developing solutions to address the concerns of their people. Together, the strategic importance of HR issues and the changing role of line management will be the two key forces of change operating on HR.

Strategic HR issues include:

or be shared at all levels, from senior management down to junior management?

Manner by which HR can help the organization compete in the market place - What efficiencies can be achieved in the HR Department in its processes, policies, and procedures? • Technology requirements - What systems will HR need to support its changing and growing requirements?

The HR function of the future: new roles and a changing focus

Given all the issues confronting today's HR function, HR practitioners are being called to assume roles beyond the traditional HR administrative functions. Dave Ulrich3 has outlined five key roles HR has to play in order to help organizations meet their strategic objectives:

Manager of processing, compliance, and reporting - HR must align its strategic and tactical plans with those of the corporation, comply with laws, create policies, and execute administrative processes, all in a cost-effective manner. Several of the roles may help HR respond to the evolving profile of today's workforce. As change agent, employee champion, and advocate of employee development, HR departments in some organizations have instituted improvements in the workplace, such as upgraded or flexible employee benefits, wellness programs, and the like. Attaining the HR function of the future- HR management is no longer confined to the social sciences, and requires skills and knowledge in other disciplines such as marketing and communication, management of information systems, operations, economics, and finance. Some organizations may even invest in training programs that can further the business acumen of their existing HR practitioners. As such, HR practitioners will be more comfortable in the role of strategic partner, equipped to be in boardrooms, and perceived as an increasingly important ally by senior management and line managers. The structure of HR departments in some organizations has already begun to evolve. Instead of being divided according to specialized functions such as compensation and benefits, training, recruitment, and the like, some HR departments have restructured themselves to service “accounts” or business units, requiring HR generalists who are knowledgeable in all functions of HR as “account managers.” This structure enables more HR practitioners to veer away from being highly transaction-based to more solutions-focused. Technology is also an important factor in attaining the HR function of the future. By leveraging technology, HR can reduce some of its more routinary tasks and processes and create more time for focusing on strategic HR concerns. An integrated Human Resource Information System (HRIS) can also serve as a tool for gathering information that will be used to carry out a number of HR functions such as performance appraisals, employee counseling, and recruitment. In some companies, HR has begun to act as an internal consultant. Other companies may also opt to get external consultants to perform HR functions in lieu of the traditional HR department.

INERVIEW ANALYSIS

Role of HR Department

The conduction of the interview with the senior top management of Human Resource department in DESCON has made us to analyze that its HR Department has now emerged as a separate division and is now involved in planning and implementation organization strategies. As per the information provided by the hr officer, each of the employee have to go through some particle training otherwise he will not be eligible for promotion. Descon is now focusing to add more values in HR practices to get most output from their employees.

Descon Human Resource department perform all functions perfectly right now but nobody is perfect at anytime. According to HR executive they are implementing best HR practices and they don't follow the old paper printed policies. In Descon's view HR is not a science which is same for all organization, its an art which is changed organization to organization, so put out your paint brush and start what u have in your mind.

Importance of HRD

Human Resource Development at Descon believes in continuous improvement and is taking the standards of service to the utmost levels of excellence. HRD is working as a team under the flagship of Head Human Resource Development. It supports local as well as overseas offices in the following functions:

HR department for long term growth

In Descon's point of view they need employees that can carry their project in the best way they can so in order to do so they need best skilled employees who have the ability to perform with full commitment. With the growing competition they need to sustain in the market and human capital is the most important factor to do so. Hence for Descon HR department is the best tool that can help them to achieve their objectives.

According to HR officer, top management of Descon has realized the need of HR earlier; organization cannot grow only with the working capital and advance technology. They need to have a proper skilled working force that enables them to sustain in the market.

Appropriate selection

Main preference of Descon management is to hire the personals that are addicted to become best fit to the job position. However hiring a person and giving them training to enhance their skills and abilities is also acceptable. Descon believes that no one is perfect in this world and the person hired need to be constantly trained to meet the future needs and projects. So as per Descon, they hired a person who can be polished with training.

Training importance

In Descon's view, like other practices training is another integral part of employee's career development. Training ensures that the employee's skills are polished over time and they are ready to cope with the changing need of environment. Training was given to the employees in a normal routine but with the emergence of need for planned HR, management has now made training essential for the personals seeking furthers promotion. They need to have prerequisites credit hours in their eligibility bank.

Orientation Program

Descon have properly designed their orientation program. A new employee entered organization, he is provided with all the necessary information about the culture and norms of the organization that helps them to understand the job contents. Old employee helps new entry in their work. Employees are given informal as well as formal information about their responsibilities and duties.

INTERPRETIVE ANALYSIS

This study enables us to confirm that the way in which human resources are managed influences a company's performance. Generally speaking, our findings support the hypothesis that by using high-performance HRM systems, organizations can improve their chances of reaching objectives as long as they do not lose sight of other aspects, mainly of a technological nature, the explanatory capacity of which is considerable. For achieving affective performance factors such as motivation, ability, commitment, achievements etc should be addressed accordingly.

On the basis of collected data and its analysis, we determined the effect of selected human resource practices on key factors of employee performance and organizational performance and conclude the following:

Ø Strategies adopted by the human resource department of any organization for recruiting, directly affect the turnover of the employees, their trust on the respective policies, and their commitment towards performing the specified tasks.

Ø Initiating practices for filling the vacancies from within the organization, rather than going for external source, positively increases the employee's motivation to work harder and strive for better position and status in the organization.

Ø Selection of the appropriate individuals those are suitable and competent for the position, increases the likelihood of successful achievement of organization's objective, decreases the time and cost of training new employees, hence controlling the turnover rate.

Ø Accommodating and awarding the employees to the best compensation & benefits during their course of employment and afterward, leads to enhanced dedication and commitment towards the work.

Ø Carrying out transparent performance appraisal, help to identify successful performers and bridge the deficiencies of those not meeting the standards.

Ø Rewarding the employees after appraisals, in recognition of their achievement not only increase their motivation level but also engenders their ability to repeat those performances overtime.

Ø Providing appropriate and timely training to the employees help nourish and polish their skills, making them a source of sustained competitive advantage.

Ø Linking the training programs with their employee's promotion, create need for achievement in them, with better overall performance.

Ø Instigating efforts to develop effective communication and relation between peers helps to achieve integration in performance.

QUESTIONNAIRE ANALYSIS

Following are the questions and there responses received at the Descon Engineering Ltd. After sending the questionnaire in the number and graphical form.

Which of the following methods organization is using for hiring?

a. Outsourcing

b. Direct hiring

c. Internal promotions

d. Others______

According to the employees, most frequent method used for filling the vacancies is direct hiring. Internal promotions are also part of hiring strategy. No such outsourced vendors are hired for doing so.

Recruitment is purely merit based?

a. Yes

b. No

Majority of the employees gave the feedback that hiring is not purely done on merit basis rather on references. In view of some employees it has been done on merit.

People selected are most suitable for the job?

a. Yes

b. No

As hiring is done mostly on merit basis so in employee's point of view staff hired is suitable for the job. But still there are a few who believes that people selected are not adequate match for the job or position.

Does the organization encourage referrals?

a. Yes

b. No

72.5% of the employees population communicated that referrals does not play a major role for the hiring of new employees rather few of them disagree to this perspective

Which of the benefits you are enjoying at this organization?

a. Medical/health

b. Residence allowance/loan

c. Personal loan

d. Travel

e. All of the above

f. Specify__________________________________

Descon is providing all the benefits that can retain employees and becomes a motivational factor for them so they can perform better and in effective way.

Are you given incentives or rewards for bringing forward new suggestions?

a. Yes

b. No

77.5% of the employees are neither encouraged for bringing forward any suggestion nor rewarded infect they are not provided the opportunity to be the part of decision making. While in some employees perspective they have been rewarded for doing so

My salary package is equitable for me?

a. Yes

b. No

Large numbers of employees working 82.5% of them are satisfied with the salary packages they are given in return of their services. Still few of them are not satisfied

Does your organization offers you pension or retirement savings plan or profit sharing plan?

a. Yes

b. No

As per employee feedback, 67.5% of them are not provided with after service pension or retirement plans. Small proportions of employees are entitled to this facility.

Does the organization conduct the practice of performance appraisal?

a. Yes

b. No

Almost every employee agrees that organization continuously evaluates the past performance of its employees through performance appraisal system.

Which method of performance appraisal is adopted by the organization?

a. 360 degree evaluation

b. Individual ranking

c. Relative standards

d. Grouped ranking

The most adopted method by the organization, as per employees upon which they are evaluated is by evaluated them on 360 degree on their performance. Other methods are also considered but under certain conditions.

Have you ever been rewarded as a result of performance appraisal?

a. Yes

b. No

To motivate the employee's organization reward their employees on the basis of their respective performance, instead few of them have not been rewarded yet.

Does performance appraisal motivate you to do work?

a. Yes

b. No

As per the survey there is a positive impact of performance appraisal practice on the working of 95% of the employees. This newly introduced system has created a sense of confidence and trust in the employees towards the organization

Promotions are purely based on performance appraisal?

a. Yes

b. No

Relatively few of the employees believe that the promotions are purely based on performance but again most employees disagree with this statement according to them biasness is involved.

Does the organization provide training to you?

c. Yes

d. No

90% employees agree that organization provide training facility to them that help them to understand the culture, duties and responsibilities of their job.

Does the organization perform training need analysis?

a. Yes

b. No

85 percent of the employees agrees that organization does perform training need analysis that help them to find the weaken areas.

What sort of training do you normally receive?

e. Technical

f. Personal development

g. Managerial & communications skill

h. other_____

i. All

Employees are trained according to their specific department and duties but mostly emphasis is made on technical skills.

Do you think training is beneficial for your promotion?

c. Yes

d. No

According to the survey 92.5% percent believe that training provides them better understanding of their job and hence is beneficial for their promotion.

Are you satisfied with the level of training provided?

c. Yes

d. No

Training being the essential part of the job so 87.5% of employees are satisfied with the level of training provided to them from the organization side.

What is the level of you relationship with other employees?

a. Excellent

b. Good

c. Average

70% of the employees enjoy excellent peer to peer relationship while rest of 30 percent has an average relationship.

I am respected and valued by my colleagues at job place?

a. Yes

b. No

A part from their relationship within the organization 100% of employee agree that they are valued and respected by their colleagues

Does the organization assist you in dealing with your personal problems?

c. Yes

d. No

Organization has no such plans to deal with the personal problems, responded by the 70 percent of the employees where as remaining 30% of the employees still being accommodated.

Does the organizations provides formal or informal orientation program for new employees?

c. Yes

d. No

Most of the employees are provided formal and informal orientation by the organization but 20% disagree with 80% of employees.

Conclusion and Analysis

Conclusion related to the organizations used in our research, Descon is that the firm is using Human resource Practice. Its HR practices are performed better that's why it have competitive edge over the other engineering firms.Based on Descon HR system their Recruitment & Selection is mostly from the direct hiring that enables them to find the best persons suitable for their job with the required qualification. This practice is not seen in the other firms in the competition in normal practice. Descon Performance appraisal system enables them to evaluate their employee's performance and ultimately right and deserving person is getting promotions which is motivational factor for the employees and hence improve organization performance and increase loyalty in employees. To get the right performance level from the employee they need to be trained. That's why Descon is facilitating their employees. To get the maximum level of output they are trained after the training need analysis and employees gets the clear objectives of their job hence their ability improves. Moreover Descon provides incentives and benefits to their employees that is valuable for them and ultimately becomes the motivational factor for their employees and they get the maximum feedback regarding work. All of the above discussion makes us leads to the conclusion that perfectly up bringing of the conduction of HR activities motivates the employees to perform better. This motivation leads the employee's performance to boost up. Hence it is concluded that employee's performance is directly related to successful completion of the HR activity undertaking.


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