Poor HRM Causing Low Employee Efficiency Commerce Essay

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This research paper is consist on a research, Research is basically related to the "Human resource management and its impact on employees efficiency at Ishtiq steels industry". No doubt the company is doing its working in quite good way. But the present HRM is not effective, which ultimately causing low moral of employees and decreasing their efficiency, Ishtiaq Steel Industry is the largest and one of the oldest Manufacture of the Rolled Steel Section in Pakistan. There is one problem statement that is: Poor HRM causing low employee efficiency, and for research I make two hypothesis. It include four variables independent, dependent, moderating and mediating variables. Data is collected through tools like interview, questionnaire, observation and literature review. And on the basis of this data I make analysis and use SPSS for analysis. During analysis I find that 60% of employees are not satisfied with their recruitment and hiring process, they think this process is not on merit. And according to facts and figures 70% employees says that they are never involved in any training program. And secondly 85% people of our sample says that training is necessary and can enhance their performance. The job design, job analysis and performance evolution is not on standards. 60% answer that if they get promotion it will enhance their efficiency and they deserve to be promoted. I find that 35% people of our sample rate the safety measure as very poor, 30% as poor, 25% as average and only 10% rate is as good. So we can say that their safety rules or policies to work on furnace is very poor, only good HRM department can make it correct or effective. Working conditions, incentives plans and bonuses plan is also unfair (

facts and figures are in detail in report), So finally in answer to current HRM 60% rate it as poor, 20% as average, 15% as good and 5% rate it as very good. So we can say that these percentages is a indicator of poor HRM. Secondly in 90% of employees say there is need of improve HRM and it can enhance the performance of employees. And interpretation is also included which say Ho is true.

Introduction:

Company : Ishtiaq Steel Industry is the largest and one of the oldest Manufacture of the Rolled Steel Section in Pakistan. Initially, the company was involved in the production of the mild steel. It kept introducing different products and added many more categories to its range, which continues till date. Keeping with our vision, in 1989, we introduced locally produced Heavy Sections to the local Steel Industry, for the first time in the history of Pakistan. And this is due to the same determination and the courage to step ahead that today we have the largest Re-rolling capacity in Pakistan. We are manufacturing locally rolled Steel Sections in a wide range of sizes and have become the largest Steel Re-rolling mill in the country, within  a few years. Ishtiaq Steel Industry feels prod of producing the largest variety of:

1) Re-rolled products in maximum sizes

2) Beam of all types (l & H shaped)

3) Angles 

4) Shafts

5) Channels

Research: Research is basically related to the "Human resource management and its impact on employees efficiency at Ishtiq steels industry". No doubt the company is doing its working in quite good way. But the present HRM is not effective, which ultimately causing low moral of employees and decreasing their efficiency, which is not good for organization. The need of research occurs when I make a visit of the company

for my personal work and I observe poor HRM practices their. No doubt there is already may work is done on this aspect of HRM by many authors but this research is truly related to Ishtiaq steels industry and based on facts and figures. In following description I have explain the working causes or factors that are causing low employees efficiency.

Problem statement:

Poor HRM causing low employee efficiency. (A causal study)

Hypothesis:

Ho: If company improves its current HRM then employee efficiency will increase.

H1: If company improves its current HRM then employee efficiency will not increase.

Determining the Measure: Unless the variables in the theoretical frame work are measured in some way, we will not be able to test our hypothesis. So in this research we can define four major variables.

Independent variable: The "Poor HRM practices". So behind this variable there is number of causes or factors like Poor recruitment process, Poor hiring process, Poor job analysis, Job stress, Poor training policies and Poor Safety measures in working area etc.

Dependent variable: Low employees efficiency.

Moderating variable: Un favorable working condition in less motivated environment.

Mediating variable: The time when employees become dissatisfied from their job, which effect their performance.

Data collection

Data collection tools include.

Questionnaire: From employees at ishtiaq steels industry I conducted the questionnaire from which I find many facts & figure and their personal opinion too. This all material helped me in obtaining my results. Sample size is 20 people.

Interview: I also conduct a interview from their production manager Mr. Usman (Bsc.engg.+ Msc+MBA) and also make discussion with their employees about their current HRM.

Observation: I spent a sufficient time at organization and observe their working routine.

Literature review: To know more about the topic I did literature review in which I studied different books and internet sources.

Data analysis

For analysis of data collected, I has made following heads (HRM functions) under which I analyze the HRM practices of ishtiaq steels industry. In following analysis I analyze the current practices at company with standards by supporting it with employees opinion which I get. Sample size is 20.

Recruitment and hiring systems: By doing interview I find that currently at Ishtiaq steels industry, recruitment and hiring does not follow any prescribed way. Mostly empty vacancy is filled on the bases of personal relation not on merit and no proper interview or test system. But for the any upper post, like account officer or engineer, company give ad and only one official of related field take interview and select that candidate, then background investigation of candidate is collected and gives an appointment letter.

But according to literature review for good performance a post should be filled by first giving an add then their should be written test and then more then 1 interviews after that other factors like medical test or Knowledge Tests, Aptitude Tests, Practical Tests, IQ Tests etc and then hiring.

From questionnaire and discussion I find that 45% employees get job without any interview, 40% with one interview and no any other tests and 15% through more then one interview. So these facts shows that their recruitment and hiring process is not good and not based on justice. And further I find that 60% of employees are not satisfied with their recruitment and hiring process, they think this process is not on merit. So we can say that when a person is not hire on merit then he will not efficient in performance.

Training and Development: There is no proper arrangement for training and development of employees in company, the company is following only one method which is on job training.

And according to facts and figures 70% employees says that they are never involved in any training program. And secondly 85% people of our sample says that training is necessary and can enhance their performance.

But if they make investment on their training and development program by offering different courses, couching classes, Off the job training, Simulations, Role playing and Case studies. So it will enhance the skills of employees and they can perform their duties more efficiently.

Job design & Job Analysis: JD can be defined as the function of arranging tasks duties and responsibilities in to an organizational unit of work for the purpose of accomplishing a certain objective. By interview I find that currently at the ishtiaq steels industry job is design by using Scientific Techniques: This is done by observing past performances. And Job Enlargement: Adding more duties to a job that is related to the current duties of involved. But the factors like job rotation, postings and team working is missing which should be involved in order to get more efficient employees performance and more profits.

By questionnaire results we can see that 50% employees answer that they are doing same duties for more then 5 years, 40% from 3 years and 10% from 1 year. So this means that there is no job rotation which makes their skills and expertise stagnant. Secondly 35% employees says they need job rotation and 65% answer in no. which means they have fear and now they are unable to do any other duty, if the company have HRM department so it can guide them about their benefits and decreasing their fear.

This includes the systematic analysis of the job and the characteristics of the desired job holders. The information collected through a Job Analysis. At company the job analysis is done by just list downing the major tasks and responsibilities and required qualification. Which should be done by job design and job specifications, again showing need of improve HRM.

Performance Evaluation: Through interview and observation I find that company do performance evaluation by comparing his current performance with past performance. In production area they compare production levels of different periods to check or evaluate the performance of employees.

But their should be a regular systematic assessment of an employee's performance. Performance evaluations are an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. Result will be improve efficiency.

Employee Movements: Company is doing employee movement in form of promotions, transfers and lay off. And by facts and figures we can see that 40% people say they are satisfied with company promotion policy but 60% answer that if they get promotion it will enhance their efficiency and they deserve to be promoted.

Welfare Administration: This refers to all the facilities and comforts given to the employee by the employer apart from wages, salaries and incentives. Company give 3 facilities:

Medical facilities, Canteen facilities and Transport facilities. And it is missing gratuity and other facility like this. Result will be improve efficiency.

Health and safety Administration: Company do care about health and safety issues, there is a clinic in organizations with a good doctor for any emergency. And company canteen also provide good healthy food. On the part of the safety issues as labor work on furnace, company has gave the guidelines for safety measures according to the nature of work (melting of iron on high temperature ) but there is no strict implementation and they are not up to standard and also due to poor guideline employees are un aware from their benefits.

During my research I find that 35% people of our sample rate the safety measure as very poor, 30% as poor, 25% as average and only 10% rate is as good. So we can say that their safety rules or policies to work on furnace is very poor, only good HRM department can make it correct or effective. And secondly 85% employees say that improved safety measure can enhance their productivity.

Motivation, Compensation and incentives plan: In answer to question about motivational level, 10% of respondents rate motivational level of employees as high, 60% as average and 30% rate it as low, for incentives and compensation plan 30% rate is as good, 30% as average and 40% rate it as poor. So as we know that it is a biggest duty of HRM to keep employees motivated. So overall we can see that employees are dissatisfied with incentive plan.

Working condition: During visit I observe that employees working conditions are not very effective but it is average because of poor HRM practices, less safety and low morale. When it is asked to employees the 10% rate their working condition very good, 60% as average and 5% as poor, so we can say that their working conditions are average. Only 75% employees are aware of employer business strategy remaining 25% are unaware. Only 15% respondent say that employees are free to do experiments and innovation and remaining 85% feel fear to do innovative work, that if they fail they will be punish. Bonuses: only 25% employees get annually bonuses and remaining 75% only on good performance that is un fare and against HRM practices and cause of low employees morale. So over all we can say that with out an effective HRM the working condition are not so very good.

HRM: So finally in answer to current HRM 60% rate it as poor, 20% as average, 15% as good and 5% rate it as very good. So we can say that these percentages is a indicator of poor HRM. Secondly in 90% of employees say there is need of improve HRM and it can enhance the performance of employees.

Interpretation:

Finally after this detailed discussion in which we discuses the importance of HRM for any organization, and particularly analyzing the facts and figure of present HRM status of Ishtiaq steels industry. We can say that the HRM practices at this company is not very effective and due certain causes, which we find in analysis making it poor HRM and it ultimately effecting the employees efficiency and negatively impacting their performance. After the analysis I find causes that are creating poor HRM like

Poor recruitment process.

Poor hiring process.

Poor job analysis.

One man show.

Poor training policies.

Poor Safety measures in working area.

No incentives schedules and policies.

Group base politics.

Uneducated people creating corrupt environment.

Roles are not clear.

No team working.

No bonuses for staff.

No counseling program like seminars and different courses.

No scheme of gratuity.

So know we can say that poor HRM at ishtiaq steels industry creating low employees efficiency. Hence the hypothesis Ho is true.

Ho: If company improves its current HRM then employee efficiency will increase.

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