About Expert
Key Topics
- Rationale for particular Methodology and relations to research questions
- Research Methodology and Methods
- Data Collection Method:
- Statistical Tools:
- Case Study Method:
- Strengths and weakness of choosing a particular methodology and why other methodologies would not be as useful or appropriate
- Data collection tool methodology and sample size appropriateness determination
- Data Collection Method for Turnover
- Measurement of Turnover
- Measurement of Productivity
- Measurement of Corporate Financial Performance
- HR Practices Measurement
- Ethical Issues in the research and resolution on the problem
- References
HRM’s impact on turnover, corporate financial performance, and productivity
The research will try to evaluate the various links between human resource management and the performance of the firm. It is one of the important topics that are discussed whenever human resource management is talked about. Many national and international level surveys have been done and by the surveys, it is quite evident that these practices have a high economical and statistical impact on the employee outcomes.
The development of human resource management is directly linked to the betterment and execution of the organization’s strategic plans. The entire assignment is conceptual and with the help of various sources justifies that human resource management and its practices work in the favor of the organization and aides in maintaining a competitive advantage over the others.
The impact of a single individual’s work and his/ her performance in the organization has been for long talked about by the analysts and other academicians. Recently, the impact of all the employees collectively in the organization is also taken as something important and crucial in today’s era. If (Barney, 1991) theory is observed closely, then it can be said that if four requirements are met then Human Resource Management can provide an emphatic and sustained advantage for the company over other competitors. These four basic requirements will be talked about in the main section of the assignment.
The things that will be discussed in detail in this research are:
a. Turnover
b. Productivity
c. Financial performance (corporate)
If studies by (Arnold, Feldman, 1982) are evaluated then it can be easily said that various things like job security, established union, good levels of compensation, organizational tenure, smaller but crucial factors like age, education and gender, a job meeting the expectations of the employee and various other factors lead to a change in the company’s turnover. Thus, it can be said the effect of HRM lies mainly on these individual factors concerning the turnovers. Some of the factors like job interventions enrichment and previews of realistic jobs are also to some extent responsible for reducing the turnovers.
The effect of HRM and its several practices on the productivity is more intensive on the productivity of the organization. As per ( Cutcher, 1991), the organizations which practised transformational relations with the labours which promoted cooperation and resolutions of the dispute were the once which had to face lower costs, fewer scrap and very high productive and also had greater return from the labour hours than the organizations practising the same traditional labour management practises and policies. (Weber, 1985) Explained in his report that organizations with modern labor relation policies fewer disciplinary actions and less absenteeism had a direct impact on their productivity and the efficiency of the labors. The quality of living of the labors, good circles, and the labor management teams increases productivity. Even the employee turnovers have a positive effect on the productivity of the firm. In various studies links between incentive systems for compensation and organizations productivity can be found easily (Kruse, 1990).
Links between HRM practice and corporate financial performances have been for long explored various academicians and researchers. Some of these studies include (Cascio, 1991) and (Flamholtz, 1985) have researched and argued on the effect of financial returns that are gained due to the execution of various HRM practices by the firms, and these are substantially large in amount. If the more factual information is looked at, then it can be said that an increase of one standard deviation in the employee’s performance is somewhat equal to 40% salary of each employee.
It is true that most of the word on this particular phenomenon has been conducted in the labs, but then a report by (Becker, 1992) clearly showcases that SD deviation may pretty easily be more than 40 % salary per employee. Many studies showcase the positive and significant impact of intensive recruitment, use of selection procedures that are formal and various profits of the firm between the HRM training practices and the financial performances of the organization (States, 1997).
The development of human resource management is directly linked to the betterment and execution of the organization’s strategic plans. The entire assignment is conceptual and with the help of various sources justifies that human resource management and its practices work in the favor of the organization and aides in maintaining a competitive advantage over the others.
The impact of a single individual’s work and his/ her performance in the organization has been for long talked about by the analysts and other academicians. Recently, the impact of all the employees collectively in the organization is also taken as something important and crucial in today’s era. If (Barney, 1991) theory is observed closely, then it can be said that if four requirements are met then Human Resource Management can provide an emphatic and sustained advantage for the company over other competitors. These four basic requirements will be talked about in the main section of the assignment.
The things that will be discussed in detail in this research are:
a. Turnover
b. Productivity
c. Financial performance (corporate)
If studies by (Arnold, Feldman, 1982) are evaluated then it can be easily said that various things like job security, established union, good levels of compensation, organizational tenure, smaller but crucial factors like age, education and gender, a job meeting the expectations of the employee and various other factors lead to a change in the company’s turnover. Thus, it can be said the effect of HRM lies mainly on these individual factors concerning the turnovers. Some of the factors like job interventions enrichment and previews of realistic jobs are also to some extent responsible for reducing the turnovers.
The effect of HRM and its several practices on the productivity is more intensive on the productivity of the organization. As per ( Cutcher, 1991), the organizations which practised transformational relations with the labours which promoted cooperation and resolutions of the dispute were the once which had to face lower costs, fewer scrap and very high productive and also had greater return from the labour hours than the organizations practising the same traditional labour management practises and policies. (Weber, 1985) Explained in his report that organizations with modern labor relation policies fewer disciplinary actions and less absenteeism had a direct impact on their productivity and the efficiency of the labors. The quality of living of the labors, good circles, and the labor management teams increases productivity. Even the employee turnovers have a positive effect on the productivity of the firm. In various studies links between incentive systems for compensation and organizations productivity can be found easily (Kruse, 1990).
Links between HRM practice and corporate financial performances have been for long explored various academicians and researchers. Some of these studies include (Cascio, 1991) and (Flamholtz, 1985) have researched and argued on the effect of financial returns that are gained due to the execution of various HRM practices by the firms, and these are substantially large in amount. If the more factual information is looked at, then it can be said that an increase of one standard deviation in the employee’s performance is somewhat equal to 40% salary of each employee.
It is true that most of the word on this particular phenomenon has been conducted in the labs, but then a report by (Becker, 1992) clearly showcases that SD deviation may pretty easily be more than 40 % salary per employee. Many studies showcase the positive and significant impact of intensive recruitment, use of selection procedures that are formal and various profits of the firm between the HRM training practices and the financial performances of the organization (States, 1997).
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Place Your OrderRationale for particular Methodology and relations to research questions
The methodology picked for the research is based on two different type of work: the primary and secondary research. Out of the two methods, secondary research is imperative for the research question that I have been trying to address. From the previous work, it becomes easy to find answers to the current situations and problems. However, the answer might not be 100% apt for the given situation.
My chosen topic is about the impact of human resource management practices on the corporate performance. Using the previous studies it has become easier to find a different perspective to my research questions. For example, one of the research questions is “Filling internal vacancies is helpful as compared to outside hire”. There can be multiple perspectives to this question. One of the research paper points out that it is always beneficial to fill the vacancy from someone working with the company for a long time. It promotes trust among employees as everybody stands a chance if any similar opportunity comes up in future. However, another view states that it is good to hire someone from outside if someone is qualified and has competitive skills as compared to the people working within the organization. It brings the fresh outlook for the company, and things might change for a good rather than following the monotonous process.
In a nutshell, secondary research quantifies the facts about the internal hire vs. external hire. Hence, it is easy to establish a correlation using the secondary method of research. Another methodology adopted for the research is survey research. It is helpful in gathering personal perception data from the public based on their real life experience. This will be helpful in answering the second question about non-structured approach within in an organization and its impact on the employee perception and productivity.
My chosen topic is about the impact of human resource management practices on the corporate performance. Using the previous studies it has become easier to find a different perspective to my research questions. For example, one of the research questions is “Filling internal vacancies is helpful as compared to outside hire”. There can be multiple perspectives to this question. One of the research paper points out that it is always beneficial to fill the vacancy from someone working with the company for a long time. It promotes trust among employees as everybody stands a chance if any similar opportunity comes up in future. However, another view states that it is good to hire someone from outside if someone is qualified and has competitive skills as compared to the people working within the organization. It brings the fresh outlook for the company, and things might change for a good rather than following the monotonous process.
In a nutshell, secondary research quantifies the facts about the internal hire vs. external hire. Hence, it is easy to establish a correlation using the secondary method of research. Another methodology adopted for the research is survey research. It is helpful in gathering personal perception data from the public based on their real life experience. This will be helpful in answering the second question about non-structured approach within in an organization and its impact on the employee perception and productivity.
Research Methodology and Methods
Before delving into the current methodology and methods adopted to conduct this research, it would be fruitful to understand the difference between both the terms.
Methodology tells us how research has been done and how we will find out things we want to and the process that will be used to gain the knowledge. It explains the reason for using certain methods in the research.
On the other hand, Methods denote to the tools and techniques that are used in research such as surveys, interviews or observation. It includes the statistical tools that are applied to drill down to the results.
This research paper will be going through two distinct research methods:
1. Primary research
2. Secondary research
Methodology tells us how research has been done and how we will find out things we want to and the process that will be used to gain the knowledge. It explains the reason for using certain methods in the research.
On the other hand, Methods denote to the tools and techniques that are used in research such as surveys, interviews or observation. It includes the statistical tools that are applied to drill down to the results.
This research paper will be going through two distinct research methods:
1. Primary research
2. Secondary research
Secondary research will include consulting all the previous related studies to understand the relationship, and reach necessary conclusions.
The major benefits of doing secondary research are:
- existing information helps form a base
- it will work as a base for further primary research
- the categories and elements will give background about the preferred way of corporations to structure the world.
- existing information helps form a base
- it will work as a base for further primary research
- the categories and elements will give background about the preferred way of corporations to structure the world.
However, this method has certain limitations as we saw in the analysis of a research paper previously. Most of the papers mentioned in the literature review done earlier, lack specificity or does not exactly address the question of concern. Also, most papers were from a different period, so it might be possible that circumstances have changed a lot after that period. The introduction of new generation employees with a different set of cultures might impact the study, that are not taken into consideration in most of the studies, and, therefore, the universality of any of those research studies cannot be approved.
The secondary research done – few during literature review – and upcoming reviews will aid to our paper. However, due to the existing limitations of secondary research, this paper also focuses on the collection of primary data.
Survey Method will gather unique information that is not available from other sources. It will help in getting to standardized measurement as same information will be collected from every respondent. The survey data will act as a complement to existing data from secondary resources.
Survey Design: Our survey design will be cross-sectional. Collection of cross-sectional data was facilitated from a sample that represented substantial population. Therefore, this will give us the fair idea to judge whole business throughout the world.
Survey Model: Our survey method is decided based on seven critical elements. They are population, features of sample, question prepared, question subtopics, response taken from respondents, and cost incurred, and expected time. Adding all these elements will help us choose what is best for our research.
? Population: Our population is very large – targeting all industries as a whole, without discriminating by demographics and industry – and employed in various industries. Therefore, we will use the random sampling technique to choose our sample for data collection.
? Types of Question: Research question that is to be answered through this research will require answers to set of multiple choice questions that will be sent to various candidates.
? Question Topic: All the questions will try to know the answers to the first part of all three questions and factors – through multiple choice questions.
? Response rate: Our research will identify the response rate to any questionnaire of our sample and based on that will try to send only to those number of respondents from where reply can be expected.
? Cost Incurred: Cost incurred in this method will be negligible as we will be sending emails and to our respondents to gather the data. This will save our time and money, and along with that, it will give respondents enough freedom to answer the questionnaire as per their convenience.
? Time: This method will take at least a week as gathering and compilation of data will take some time. It is obvious that all the respondents will not answer within a single day, and some might take even a week to reply.
Survey Model: Our survey method is decided based on seven critical elements. They are population, features of sample, question prepared, question subtopics, response taken from respondents, and cost incurred, and expected time. Adding all these elements will help us choose what is best for our research.
? Population: Our population is very large – targeting all industries as a whole, without discriminating by demographics and industry – and employed in various industries. Therefore, we will use the random sampling technique to choose our sample for data collection.
? Types of Question: Research question that is to be answered through this research will require answers to set of multiple choice questions that will be sent to various candidates.
? Question Topic: All the questions will try to know the answers to the first part of all three questions and factors – through multiple choice questions.
? Response rate: Our research will identify the response rate to any questionnaire of our sample and based on that will try to send only to those number of respondents from where reply can be expected.
? Cost Incurred: Cost incurred in this method will be negligible as we will be sending emails and to our respondents to gather the data. This will save our time and money, and along with that, it will give respondents enough freedom to answer the questionnaire as per their convenience.
? Time: This method will take at least a week as gathering and compilation of data will take some time. It is obvious that all the respondents will not answer within a single day, and some might take even a week to reply.
Data Collection Method:
There are various methods to collect data in Survey Design Methodology. We chose two of them – Mail and The Web – and discarded the rest –Personal Interview and Telephone – because of certain limitations.
Reason we choose to distribute question paper through mails and put an online survey through internet because:
? These methods are low on cost
? No extra team effort is required to handle the data collection and can be done by even few team member
? Helps get access to even those populations that can’t be accessed through otherwise, even to international populations
? Gives freedom to consult others while answering the questions.
? Reduces time implementing the methodology
? Web surveys can help formulate complex skip patterns in programming
However these two methods have certain limitation that should not be ignored:
? Good sample is always required for the survey purpose
? Incentives are required to make respondents fill the questionnaire
? Data collection period slows down
? While representative samples get difficult to focus on web surveys, however as our research sample is broad, this limitation will not be a constraint
Reasons why we ignored telephone and personal interview options for data collection:
Interview:
- Cost incurred in conducting specific interview will be costly
- Data collection period will be lengthy
- Have to select proper unbiased expert interviewers
Telephonic interview:
- Those respondents can be left whose telephone numbers are not available or those who do not sport telephone connections.
- Constraints as per lengthy questionnaires are concerned
Reason we choose to distribute question paper through mails and put an online survey through internet because:
? These methods are low on cost
? No extra team effort is required to handle the data collection and can be done by even few team member
? Helps get access to even those populations that can’t be accessed through otherwise, even to international populations
? Gives freedom to consult others while answering the questions.
? Reduces time implementing the methodology
? Web surveys can help formulate complex skip patterns in programming
However these two methods have certain limitation that should not be ignored:
? Good sample is always required for the survey purpose
? Incentives are required to make respondents fill the questionnaire
? Data collection period slows down
? While representative samples get difficult to focus on web surveys, however as our research sample is broad, this limitation will not be a constraint
Reasons why we ignored telephone and personal interview options for data collection:
Interview:
- Cost incurred in conducting specific interview will be costly
- Data collection period will be lengthy
- Have to select proper unbiased expert interviewers
Telephonic interview:
- Those respondents can be left whose telephone numbers are not available or those who do not sport telephone connections.
- Constraints as per lengthy questionnaires are concerned
A questionnaire has been given at the end of the report, taken from a research company (Qualtrics) prepared by Scott Smith.
Statistical Tools:
We will be using correlation and regression to come up with the required correlation between different factors. Also, data summary will help us understand the data in the light of collected questionnaire. For the purpose of regression and correlation, MS Excel will be used. Also, to get a better understanding, data analysis pack ‘r’ will also be used.
Alternative Methods:
Alternative Methods:
There were various other research methodologies that didn’t consider for the purpose of research. They are mentioned below with the suitable reasons on why we did not find it fit.
Case Study Method:
This method could have been used for our research. Analyzing
case studies would be cost effective but following limitations hold us back:
- The wider population cannot necessarily fit into the collected data of a case.
This reduces the relevancy of the study.
- Lack of scientific case studies will not help us reach some concrete conclusions
- Most of the case studies are done on specific industry or person and therefore,
there will be difficulty in getting unbiased collected data.
- Through case studies, a reliable cause and effect can be determined.
case studies would be cost effective but following limitations hold us back:
- The wider population cannot necessarily fit into the collected data of a case.
This reduces the relevancy of the study.
- Lack of scientific case studies will not help us reach some concrete conclusions
- Most of the case studies are done on specific industry or person and therefore,
there will be difficulty in getting unbiased collected data.
- Through case studies, a reliable cause and effect can be determined.
Observation Method:
Instead of using ears and voice, eyes could be brought to play through this method, and might have helped us. However, below limitations could not be ignored:
- Observer’s bias can come into play
- Past problems, opinions, and attitude cannot be studied
- a conjunctive occurrence of event and observer’s presence is rare
This concludes our selection of research methodology and selection of one method over another.
- Observer’s bias can come into play
- Past problems, opinions, and attitude cannot be studied
- a conjunctive occurrence of event and observer’s presence is rare
This concludes our selection of research methodology and selection of one method over another.
Strengths and weakness of choosing a particular methodology and why other methodologies would not be as useful or appropriate
Chosen methodologies have their limitations. First of all, the secondary research methodology is based on studying the research papers from the previous years. The authors adopted different methodologies to analyze the results, but the corporate have changed manifolds from the past. Hence, the results and analysis might not apply to the current study.
Apart from the secondary research, there are a few limitations associated with the survey design and data collection methodology. The first problem is with the anonymity of the behavior of the chosen sample set. For example, one of the research questions is about filling the vacancies from the people working within the company. Hence, people on the top level management will differ in perspective as compared to the people who are trying to move up the ladder within the company. Hence, the survey questions might get extreme views depending on the chosen subset.
On the other hand, if I talk about the relevance of the current methodologies to my research, I find both the methods to be useful. Quantitative information can only be collected by interacting with the people from different positions and companies working in the HR unit. It will be easy to quantify the results. However, I have to ensure that I take views from varied positions and people working with a company. It will give a broader perspective to the research question rather than limiting it to a few set of answers. Secondly, the secondary research is very important because there have been numerous studies from the area of HR based on productivity, corporate performance, etc. All the previous studies are limited to a certain area, but insightful information is provided about the human resource management practices. It is hard to substitute this methodology because there is no other method that can summarize the qualitative results better than secondary study.
Data collection tool methodology and sample size appropriateness determination
Qualitative data is collected from the previous studies based on the human resource management concepts and related topics. The previous year studies will help in establishing and refining the hypothesis. Quantitative data will be collected using surveys. A survey model will be designed and followed to collect data for the given research question. E-mailing and conducting online survey is one way to execute the data collection methodology. The first set of respondents will come from my company as it is the research that I am conducting to improve the HR practices within my company. I will pick people from different division and based on their positions; I will send across survey questions. For example, if I need an answer to the question that how can qualified people can contribute to the organization success, and then a manager leading a team is a better option than the newly joined fresher. It is because someone working at a higher position is more informed about the work of the people and their productivity. For employees working low down the hierarchy, I will ask questions intended to collect information about the internal filling of a vacancy. It is highly probable that people working on the lower end of the chain might be biased in their views. Hence the inputs from the higher management are a must. Moreover, someone who is an external recruit will be able to counter the argument and response provided by the employees internal to the company.
Data Collection Method for Turnover
The data related to turnover will be collected from the respective HR department of the various organizations during data collection phase. The past ten years data will be collected which is likely to give the trend in the turnover the organizations combined.
Measurement of Turnover
The turnover rate of the organizations will be measured using three metrics. They are: resignation rate of the employees per year, stability rate (the employee will be stated stable if one stays in the organization for at least one year), and the third is the survival rate of the employees which considers the previous two rates to reach the stated conclusion. These methods will be applied on the data collected as mentioned earlier.
Measurement of Productivity
The current method the paper will use to measure the productivity of the organization will be in terms of the total input and the output. The input will be calculated as the total of all the resources that has been brought in the organization to reach certain output. These calculations will in the monetary terms. The paper will conduct comparisons from the past ten years of the same company in terms of productivity to gauge the trend in the productivity. This trend will be compared with the changes in the HR practices of the organization and the way various practices and changes in the policy has impacted the productivity. Similar will be done for the turnover within the selected organizations.
Measurement of Corporate Financial Performance
Corporate Financial Performance of the organization will be conducted through various ratio analyses. The paper will use below mentioned ratio analysis to conduct the performance analyses. The paper will do the same analysis for the past ten years of the company and then the trend will be studied in comparison to the HR practices.
HR Practices Measurement
The paper will be using the logical steps to analyze the trend and impact of the HR Practices on the three variables mentioned above. The measurement of the above three variables will help in preparing a trend graph of the past ten years. Then, the researcher will then the defined the movement of the graph between three areas, that are high, medium and low. The high trend of any variable in any year of an organization will be identified. Then the organization will be consulted to understand whether any changes were brought in the HR Practices in that year or month. The similar activity will be conducted throughout the selected organizations to understand whether any deviation in HR Practices impacts these three variables. Moreover, all the HR Practices will be identified as having two orientations, one is towards the organization and other is towards the employees. For instance, increase in salary will be identified as employee oriented changes and implementation of rules that presses employees to work for long hours will be identified as company oriented.
Ethical Issues in the research and resolution on the problem
There can be one major ethical issue that comes from secondary research. It is not possible to establish that researcher was not biased while conducting a study. It might be a case that researcher only collected the data that supports their notion or ideas. Hence, it provides an incorrect picture to the readers. It is possible to avoid the ethical issue by diligent study. As a researcher, it is my first responsibility not to include data in the research without verifying the validity of the research. Hence, referring multiple studies for one component of corporate performance is a must. It will give a multiple perspective to the problem and an unbiased and balanced output can be provided.
References
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Bartel, A. P. 1994. Productivity gains from the implementation of employee training programs. Industrial Relations, 33 411-425.
Berman, W. C. 1991. Job behavior, performance, and effectiveness. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology (2d ed.), vol.2: 271-326. Palo Alto, CA: Consulting Psychologists Press.
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Dobre, Ovidiu-Iliuta. "Employee Motivation And Organizational Performance".Review of Applied Socio- Economic Research 5.1/2013 (2013): 53. Print.
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Barney, J. 1991. Firm resources and sustained competitive advantage, Journal Of Management, 17 : 99-120
Baysinger, B. D., & Mobley, W. H. 1983, Employee turnover: Individual and organizational analysis. In K. M. Rowland & G. R. Ferris (Eds.), Research in personnel and human resource management, vol 1: 269-319. Greenwich, CT JAI Press.
Boohene, R. (2011) International business research. Available at: http://www.markhuselid.com/pdfs/articles/1995_AMJ_HPWS_Paper.pdf (Accessed: 11 October 2015).
Brown, C., Medoff, J. 1978. Trade unions in the production process. Journal of Political Economy, 86: 355-378.
Bartel, A. P. 1994. Productivity gains from the implementation of employee training programs. Industrial Relations, 33 411-425.
Berman, W. C. 1991. Job behavior, performance, and effectiveness. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology (2d ed.), vol.2: 271-326. Palo Alto, CA: Consulting Psychologists Press.
Byham, William, and Paul Bernthal. "The Case For Internal Promotions".Development Dimensions International (2000): 1-2. Print.
Cascio (1986) ‘a meta analysis and review with implications for research, acadmy of management review, 11, pp. 55–77.
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Cutcher-Gershenfeld, J. 1991. The impact on economic performance of a transformation in industrial relations. Industrial and Labor Relations Review, 44: 241-260.
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Guzzo, R. A., Jette, R. D., & Katzell, R. A. 1985. The effect of psychologically based intervention programs in worker productivity: A meta analysis. Personnel Psychology, 38: 275-291.
Holzer, H. J. 1987. Hiring procedures in the firm: Their economic determinants and outcomes. In M. M. Kleiner, R. N. Block, M. Roomkin, & S. W. Salsburg (Eds.), Human resources and the performance of the firm: Washington, DC: BNA Press.
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Wright, P.M., McMahan, G.C., 1992, theoretical perspective for strategic human resource management. Journal of Management, 18(2): 295-392
Russell, J. S., Terborg, J. R., & Powers, M. L. 1985. Organizational performances and organizational level training and support. Personnel Psychology, 38: 849-863
Scott Smith, Ph.D. "Employee Satisfaction Survey Questions: 3 Sample Templates You Can Use Today - Qualtrics". Qualtrics. N.p., 2013. Web. 20 Dec. 2015.
States, U. (1997) Addressing the FDA’s performance, efficiency, and use of resources: hearings of the Committee on Labour and Human Resources, United States Senate, One Hundred Fifth
Terpstra, D. E., & Rozell, E. J. 1993. The relationship of staffing practices to organizational level measures of performance. Personnel Psychology, 46: 27-48.
Wright, P.M., McMahan, G.C., 1992, theoretical perspective for strategic human resource management. Journal of Management, 18(2): 295-392
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