Impact of HRM Practices on Employee Engagement and Employee Performance with special reference to Academicians and Work Professionals
Megha Yadav
AVP Corporate Relations
Sunstone Eduversity
Mumbai, Maharastra
Dr. Shailja Bhakar
Professor, Management department
ITM Group of Institution
Gwalior (M.P.)
(Corresponding and Lead Author)
Prof. Yogesh Upadhyay
Professor, Head and Dean
Jiwaji University Gwalior (M.P.)
Abstract
The purpose of this study is to explore the employee performance factors which are highly influenced by HRM practices through different dimensions. Moreover, this study proposes a model in the area of human resource practices to be used for testing and improving the performance of employees in the universities. An integrated model was developed highlighting the relationship between the HRM practice variables (Training, R&D, and Performance Appraisal) and employee performance. 281 responses have been collected from various academicians and work professional working in universities. Partial least square (PLS) – Structural equation modeling (SEM) is implemented using Smart PLS 3.0 to validate the hypothesized relationship by evaluating the responses of employees working in the universities. The findings of this study demonstrate a strong relationship between HRM practices and employee performance in the universities and also can be used by managers and HR professionals for organizing exclusive relevant programs for improving employee's performance based on the dimensions used in this paper. The present study provides an empirical and theoretical explanation of different dimensions associated with HRM Practices and employee performance.
Keywords: HRM Practices, Employee Performance, Higher education Institutions, PLS-SEM
Introduction
Development of the emerging nations like India has been essentially associated with the human resources, where Universities are assumed a significant part to make societies educated and competent. People of the nation create many success stories and education is the achievement mantra to prepare individuals to confront the difficulties of forthcoming future expectations. In this current time of modernization where innovation is challenge for innovation itself, it is vital to fulfill the requirements of our employee to upgrade the performance of Institutes/ Organizations. As of now, progressively more consideration is paid to employees performance issues. The issues of compelling work of any association and the arrangement of undertakings connected with expanding seriousness, benefit, and soundness are connected with faculty's quality and potential. Various unfamiliar and homegrown specialists, researchers, top administrators have grown hypothetically grounded strategies, devices, and models of HRM, which are simultaneously directs in the turn of events and execution of a HRM framework, the selection of structures and techniques for the executives, and proper prioritization (Maikenova & Aldabaeva, 2016). To fill this need, Institutions are pointing on behavior related to work, which is crucial for employees in addition to success of institutes/ organization. HRM Practices are the methodologies through which organization can upgrade the work fulfillment among the employees. This study is conducted to analyze HRM Practices and how these practices affect employee performance in private and public universities.
HRM Practices
These are the practices, crucial for the growth of any institution (Hallberg and Schaufeli, 2006; Paul and Anantharaman, 2003). The core practices of HRM involves recruitment and selection, training, R&D, rewards and recognition, performance appraisal (Tessema and Soeters, 2006; Macey and Schneider, 2008). HRM Practices are the modes of leadership for developing the employees of an institute. This occurs as the mode of improvement in various courses of training for academicians & work professionals and projects connected with inspiration like creating frameworks to help and direct administration in playing out the continuous performance appraisals. HRM practices further improve the quality of engagement of an employee, in turn performance of employee (Harter et al., 2002).
Problem Statement
HRM is a logical and strategic approach for the institutions’ management by emplaning on employees, considered them as crucial resource, who adds to the overall profitability targets exclusively. But with establishment of good HRM practices in public and private institutions quality is missed in every department, academics and non-academics. Many previous studies in those countries which are developing yet like India did not mention unequivocally a connection between HRM practice and employees’ performance. With the great effort of employees why institutions are unable to cope up with quality and innovations. To fill this research gap and to enhance quality work in institutions, this study highlights about the affect of practices relevant to HRM on the performance of employees in Universities with
Reference to academicians and work professionals.
LITERATURE REVIEW
HRM Practices, Employee Performance
Education assumes a relevant portion in abilities and character advancements of group of person and well as progress of any country. Throughout the time spent on education, individuals figure out for their living standard and furthermore progress quickly. The world has become extremely aggressive where advancements and revelations are being made each spending day. Thusly, individuals are likewise expected to come up with the challenges of things to come. Education is remarkable instruments that can acquire changes local area, society and specifically in the further tidying of country (Shami, 1999).
HRM practices of a college or university can be of incredible assistance in recruiting and handling with the exceptionally gifted and skilled educators. As universities are the institutions that are human capital intensive in nature, HRM practices of an institution can be of good assistance in recruiting and managing the educated and competent teachers. With the assistance of research, new ideas and innovation can be created; which assist us in enhancing education which is higher in HR development.
We need subsidizing, culture of research, practices of HRM (for example preparing, determination, execution evaluation, work definition, remuneration, vocation arranging, and employee interest), useful governmental issues, exceptionally qualified staff, preparing of the related people etc. No satisfactory work has been led on practices of HRM at the grade of college education. Hence, it was basic to survey those practices connected with HRM in the universities. The researchers chose to highlight the practices connected with HRM for recommending remediation procedures to improve college level education. Hashim. M, Sheheryar. S, Kazmi. A, Ullah. M, Kee. D, 2017 mentioned that if HRM Practices are assumed to include in institutions with attractive incentives and packages then employee’s performance may be improved and also proper monitoring and work balancing on employee would be more helpful in enhancing employee’s performance in universities. High motivation towards quality work among employees may create positive results in a university in the further time period and the possibility for those universities which are private can be enhanced accordingly which is positive. It is very crucial for universities to consider those HRM practices which have positive relation to enhance employees’ performance at organizational work domain. Second, more work should be conducted on practices connected with HRM in universities.
Employee Performance
Positive work of a person in higher efficiency and benefit subsequent to applying required exertion during the job time frame thinks about performance of employee (Mathis and Jackson 2009, and Pradhan & Jena, 2017). EP comprises of work proficiency done, the work adequacy done, the work nature, work load, and the promptitude of work. Additionally, inside in universities, a person's mental, physical and conduct endeavors to accomplish decided objectives for institutions’ achievement and consistent development ponder employee performance (Anitha, 2014; Pradhan & Jena, 2017). Employee’s performance can be enhanced through selected measures that contain work related abilities, information, driving job, advancement, approval, preparing and improvement programs in view of abilities, assessment, and prize on their accomplishments (Wassem et al., 2019). An employee performance relies upon the institution's approaches, practices, plan, and elements; such factors brief the employee towards the decided association's objectives (Anitha, 2014). This research work mentioned about employee’s performance that was analyzed through various aspects, i.e., Work task, adaptive execution, and of contextual execution, which are included from the performance of Koopmans et al. (2013), Jena (2017) and Pradhan (2017). Griffin (2000) and Bormann (1997) and mentioned task execution is the piece of person’s work execution individually, and it cites to main specialized exercises performed by a person in an institution or organization. Besides, task execution can be separated based on social perspectives like excellent work, burden of work, work abilities and occupation information. Jena (2017) and Pradhan (2017) communicate the context oriented execution as an expert social conduct of a person to help in the organization. Nonexclusive cases of context oriented execution refer through Griffin (2000) for example, chipping in for undertakings, helping colleagues and shielding associations from outside components. Jena (2017) and Pradhan (2017) and Koopmans et al. (2013) allude that adaptive execution guarantees the capability of a person to adapt really with unsure conditions in work space.
Training to Employee Performance
Training also advancement programs are viewed as an exceptionally compelling component for working on employees’ performance and organization turn of events (Aguinis & Kraiger, 2009; Otoo & Mishra, 2018b). Various researches have been included to analyze the connection between development and training and employees’ performance (Aguinis & Kraiger, 2009; Bell et al., 2017; Hafeez & Akbar, 2015; Hanaysha & Tahir, 2016). It was found that training is a huge instrument to upgrade employees' capacities and abilities. By putting resources into HR, organizations can receive the rewards at the individual and authoritative level as higher usefulness and productivity. Additionally, Training can refresh work related information and abilities to deal with quickly changing business sector requests and arising innovation (Saira et al., 2020). The indictment by Salas et al. (2012) Training and advancement exercises permit
H1: HRM practices (Training) influence on employees’ performance
H1a: No Training influence on enthusiasm
H1b: No Training influence on Preservation
H1c: No Training influence on Emolument
H1d: No Training influence on Opportunity
R&D to Employee Performance
R&D for employees’ quality work happens at various levels of the association and helps people in achieving different objectives. Elnaga and Imran (2013) mentioned that this work helps people in diminishing their nervousness or disappointment experienced in the working environment. People who can't perform at the normal degree of performance might even choose to leave the institution, since they assumed that they are not helpful and become disappointed with their work. Consequently, worker training and advancement fills in as the device that not just upgrades the abilities expected to play out a task, however it additionally gives the necessary resources to help people in feeling more happy with the consequences of their exhibition. Upgraded capabilities lead to better execution and maintenance. Worker training and advancement is an indispensable part of HR arranging exercises, since it expands the profits of people, yet it might likewise draw in better ability to the association (Bapna, Langer, Mehra, Gopal, & Gupta, 2013). Completely, it fosters the thinking capacities and innovativeness of people for better independent direction, client assistance, and grumblings dealing with, and generally speaking self-viability while the association climbs to the next level (Jehanzeb & Bashir, 2013).
(Elnaga & Imran, 2013). Moreover, worker training and advancement gives the capacities when people move starting with one task then onto the next of an alternate sort. It is crucial in giving top caliber of work at all levels in the association or in organization (What is Human Resource.com, n.d.). According to Mel Kleiman (as referred by Bashir and Jehanzeb, 2013), Worker Training and improvement ought to be used to arrange people and to upgrade their administrative and functional abilities. By giving main proficiencies and construction all through the worker preparing and improvement process, it expands the likelihood for people to actually convey the mission, while supporting others in making a learning society as a feature of the association's essential objectives. Whenever associations give the assets important to play out a task, people become happy with their positions and more useful,
H2: HRM practices (R&D) influence on employee’s performance
H2a: No R&D influence on enthusiasm
H2b: No R&D influence on Preservation
H2c: No R&D influence on Emolument
H2d: No R&D influence on Opportunity
Performance Appraisal to Employee’s Performance
At the other side, Brown and Heywood (2005) mentioned about ‘performance appraisal mention, in part, a very productive process of employees’ scrutiny and is expected to be an administration device to conduct some work on the performance and efficiency of Employees'. Workers' responsibility and usefulness can likewise be improved with the system of performance appraisal (Brown & Benson, 2003)
H3: HRM practices (Performance Appraisal) influence on employee’s performance
H3a: No Performance Appraisal influence on enthusiasm
H3b: No Performance Appraisal influence on Preservation
H3c: No Performance Appraisal influence on Emolument
H3d: No Performance Appraisal influence on Opportunity
As per the above discussion the proposed conceptual model was framed as seen below:
Figure 1: Conceptual Model
Research Methodology
The research work was conducted to assess the affect of HRM practices (Training, R&D, and Performance Appraisal) on performance of employees and to give specific suggestion for further analysis on the concern topic.
This work of research is explanatory in nature, where information gathered from the people who are related to universities. In such manner, the people working in various institutes reached by and by to fill surveys on every factor to comprehend the situation with HRM practices (Training, R & D, Performance Appraisal) and Performance of employee towards their organization or institute. Respondents included academicians and work professionals working for higher education institutes of selected regions, mainly in Indore and Gwalior. The Questionnaire was sent to approximately 300 respondents through the mail and whatsapp by using Google form link. But only 290 questionnaires collected, and 281 were usable questionnaires. For conducting this survey the tool used to analyze those variables which were latent in nature was included from relevant researches and required changes were done as per the study’s context. To measure HRM practices (Training, R&D, and Performance Appraisal) with Performance of employee. The measure used was of Chahar,B. and Hatwal, V. (2018). Items in questionnaire were on the likert scale which was 5 poin measures from SD to SA. For the motive of SEM (Structural Equation Modeling), PLS-SEM was used. This software is basically used for measuring reliability of Cronbach’s Alpha, AVE, Factor loadings, multicollinearity, discriminant validity, and casual connection among dependent and independent variables.
Reliability and Convergent Validity
Source: Author’s Calculations
Data Analysis
Analysis of Model Assessment
EFA was conducted to construct the factors related to employee’s performance in universities which influenced by HRM practices of an institution. The Raw scored of 22 items were subjected to factor analysis to define the employees’ performance factors which influence training, R&D, and Performance Appraisal. After conducting this test through SPSS software, naming, Factor 1 is Enthusiasm, Factor 2 is Preservation, Factor 3 is Emolument, and Factor 4 is Opportunity. The value of KMO for the sample is greater than 0.5, which assumed as good and the result mentioning the value that is 0.837, which shows that the sample we have taken for analyzing factors is adequate. The value of Chi-Square is also significant at P=0.000
This is assumption that if the KMO value is beyond 0.6 and if the Bartlett’s sphericity’s test is acceptable and significant, then further study can be conducted. Four factors were highlighted because their eigen values are greater than1.When four factors were highlighted, then 67.711 (%) of the difference would be explained. After that, CFA was used to analyze the relation between HRM practices and Employees’ Performance. This model consist three variables which are independent i.e., Training, R&D, and Performance appraisal and four dependent variables i.e., Enthusiasm, Preservation, Emolument, and Opportunity. Table I mentioning the loadings of factors, Cronbach’s Alpha (CA), (CR) Composite Reliability, and Average Variance Extracted (AVE). All the factors loadings showing above value as per its set threshold and supporting constructs’ convergent validity, the Cronbach’s alpha is above 0.7, which is good for all the constructs. (AVE) Average Variance Extracted and Composite reliability’s value is also beyond the value of 0.5 and 0.6 sequentially for the concern constructs. To determine Discriminant validity criteria of Fornell & Lacker and HTMT was done (Fornell and Lacker 1981and Hair et.al 2010 ;). F-L criterion involves √ of Average variance extract with the latent variables connection. Latent Construct values’ have to mention the own indicator’s variance higher comparatively to some other indicator. Table II highlights (Fornell and Lacker) F & L criterion measure for every indicator and it mentions about (Latent) intert construct which has value of correlation2 higher comparatively some other indicator. Table III shows about the results of Heterotrait Monotrait (HTMT) measure values. HTMT is another criteria of Fornell and Lacker. HTMT is advised by Henseler et.al (2015) as Fornell and Lacker criterion does not highlight discriminant validity. HTMT value mentioned in Table III which metnions the measure of construct of internal connection.
Each value in the table is lesser than .9, which is acceptable. (Fornell and Lacker) F&L and HTMT criterion, it can be measured that the connections we may presume about the connections in the middle of the construct are in satisfactory criteria and there is no collinearity issue.
Stuctural Model Assessment SMA (Relationships Indirectly and Directly)
The VIF values of variables which are latent should be analyzed prior to test hypothesis. The value of VIF considered excellent when it is less than 3.33 (Diamantopoulos et al., 2008) advise that the issues of multicollinearity are not involved in this study. The value of inner VIF in various latent constructs is 2.201 for training, 1.765 for R&D, and 2.063 for Performance Appraisal. The study thus mentions there were no collinearity related issues (Hair et al., 2017).
Table II: Fornell- Lacker Criteria
|
|
Emolument |
Enthusiasm |
Opportunity |
Performance Appraisal |
Preservation |
R&D |
Training |
|
Emolument |
0.858 |
|
|
|
|
|
|
|
Enthusiasm |
0.567 |
0.768 |
|
|
|
|
|
|
Opportunity |
0.463 |
0.561 |
0.757 |
|
|
|
|
|
Performance Appraisal |
0.434 |
0.589 |
0.467 |
0.769 |
|
|
|
|
Preservation |
0.724 |
0.610 |
0.488 |
0.600 |
0.790 |
|
|
|
R&D |
0.213 |
0.418 |
0.222 |
0.587 |
0.419 |
0.771 |
|
|
Training |
0.387 |
0.731 |
0.565 |
0.688 |
0.596 |
0.621 |
0.708 |
Source: Author’s Calculations
Table3: HTMT matrix
|
|
Emolument |
Enthusiasm |
Opportunity |
Performance Appraisal |
Preservation |
R&D |
Training |
|
Emolument |
|
|
|
|
|
|
|
|
Enthusiasm |
0.673 |
|
|
|
|
|
|
|
Opportunity |
0.617 |
0.752 |
|||||
|
Performance Appraisal |
0.502 |
0.694 |
0.687 |
||||
|
Preservation |
0.847 |
0.658 |
0.662 |
0.707 |
|||
|
R&D |
0.280 |
0.482 |
0.513 |
0.751 |
0.553 |
||
|
Training |
0.444 |
0.807 |
0.813 |
0.843 |
0.625 |
0.776 |
Source: Author’s Calculations
Below figure II the model which is structural in the research works. The model defined the hypothesis of the study about indirect and direct connections between the related variables. The model analyzed R2 (Determination coefficient, Q2 (redundancy of cross validation), F2 (effect size). The model was analyzed connections which was direct connections among the independent variables (training, R&D, and Performance Appraisal) and Dependent Variables (Enthusiasm, Preservation, Emolument, and Opportunity).
Figure II and Table IV shows the details of SM (structural modeling). The result analyze about the direct relation among Training, R&D, Performance Appraisal, Enthusiasm, Preservation, Emolument, and Opportunity. The direct relation between Performance appraisal and Emolument, Performance Appraisal and Enthusiasm, Performance Appraisal and Opportunity, Performance Appraisal and Preservation is at significant level of P=0.000. R&D and Opportunity is at level of P=0.01 which is significant but R&D and enthusiasm, R&D and Emolument, R&D and Preservation is not at level of P=0.00 which is not significant, Training and enthusiasm, Training and Preservation, Training and Emolument, Training and Opportunity is at level of P=0.00 which is significant. Thus the hypothesis (H1a, H1b, H1c, H1d, H2d, H3a, H3b, H3c, H3d) have direct relation in the middle of constructs which are at level of P=0.00 which is also significant.
Figure 2: Results of Conceptual Model
Table 4: Structural Model Results
Source: Author’s Calculation
PLS SEM creates R2 value for this model. The criteria of R2 are meant suitable when it comes “in the range of” 0 to 1 and the R2 above 0.67 is assumed as a great anticipating power (Chin, 2010). The model for this research work is mentioning the R2 value 0.555 for Enthusiasm, which shows 55.5% of the construct and for Preservation the R2 value is 0.424 that means 42.4% of the construct and .213 of the Emolument, which shows 21.3% of the construct and .372 of the Opportunity, which shows 37.2% of the construct. On the other side the value of Q2 greater than 0 for a specific variable which is latent shows the anticipating relation of the path model for a particular construct which is dependent (Hair et al. 2016). The value of Q2 for this model have to show greater than 0 value, the findings suggest high effect as the Q2 value of Enthusiasm is 0.309, for Preservation is 0.249, for Emolument is 0.139, and for Opportunity is 0.202. Finally, SRMR is a calculation of a proportion of estimated model fit. As shown, model is absolutely fit at the time of SRMR is below .08 (Hu & Bentler, 1998). The SRMR value for this model is 0.078 and NFI is 0.776, chi2 value is 4715.801. Therefore, in the study results are greatly satisfactory and supportable.
Findings, Discussion, and Conclusion
In the situation of Covid 19 pandemic, every employee’s performance affected in his organization. A need to prepare employee as per to cope up with the situation. Because employee is the very important part of every organization, so this is crucial to manage good quality of an organization and it’s totally depends on employee’s performance. HRM practices are one the approach that can be very motivational and observational for employee performance. This study included three HRM practices, Training, R&D, and Performance Appraisal and how these practices affecting the performance of employees in universities. Result showing H1a,b,c,d, H2d, and H3a,b,c,d positively supported that means these are the variables which are affecting employee performance. An organization need to give training, should focus on Research and development, and their PA (performance appraisal) for their employees to maintain quality in the institutions.
Limitations and Scope for future
Certainly some limitations are involved in this research work that should be tended to while investigating these discoveries. While the sample size was generally little and the information was just gathered from Gwalior and Indore region only. So, the findings could not be summed up to the general population with the measures. Simultaneously, due to less time, no personal interviews were conducted to gather more understandable results on employee performance.
This study recommends involving analysis which is qualitative in nature that can provide deep insight about the employee performance for maintaining quality in universities. The study suggests to organization that they should provide proper motivational training time to time, proper performance appraisal should be provided to them and also should force to them for improving R&D part to cope up with the organization.
Present study involved training, R&D, and PA (Performance Appraisal) as variables for showing the effectiveness on employees’ performance, on the opposite side Institutions need to focus on modern approaches and technology for improving Employee performance towards their work.
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