ilCHAPTER I

INTRODUCTION
Designing and implementing an effective performance management system has always been a
serious issue among human resource (HR) managers. With an increase in competitive pressures,
employers interest in distinguishing employees performance levels and improving poor
performances by using performance appraisals in an efficient manner have become characteristic
of effective organization management (Murphy and Margulies, 2004).
Numerous organizations, whether large or small, public or private, manufacturing or services, use
performance appraisal as a tool to accomplish the goals of human resource management (HRM)
with an aim to developing human capital (Fink and Longenecker, 1998). Performance appraisal
implementation has been emerging as a strategic approach aimed at aligning human resource
activities with organizational objectives and it has also positioned HRM as a key function at the
forefront of corporate strategy. Organizations are seeking to evaluate and develop the
competencies of their employees and setting reward criteria based on results by applying
performance appraisal (Fletcher, 2001).
Most researches investigating the link between HRM and performance tend to select HR practices
from different HRM functions then study their influence on performance (Teseema & Soeters,
2006; Wall &Wood, 2005). Rather than focusing on individual HR practice, scholars of strategic
human resource management (SHRM) have turned their attention during the last decade to a
bundle of mutually reinforcing and synergistic HR practices that facilitate employee
commitment and involvement (McDuffie, 1995). The implication is that HR practices should be
complimentary in nature. These bundles are referred in literature as high involvement (Lawler,
1992), high commitment (Arthur, 1992), and high performance (Huselid, 1995). Turnover is
defined as the individual movement across the membership boundary of an Organization (Price,
2001; Thwala et al., 2012). Interestingly unlike actual turnover, turnover intent is not explicit.
Intentions are a statement about a specific behaviour of interest (Berndt, 1981).
Studies have shown that turnover is one of the most researched phenomena in organizational
behaviour (Price, 2001). The broad range of turnover studies is indicative of the significance and
complexity of the issue. The phenomenon attracts interest due to its psychological dimension, its
organizational significance, and its economic dimension. Thus it is imperative for HRM managers
to understand that there are several factors inherent to counter staff intentions or turnover. One
theory specifies that employees decision to resign is influenced by two factors: their perceived
ease of movement, which refers to the assessment of perceived alternatives or opportunity and
perceived desirability of movement, which is influenced for instance by job satisfaction
(Morrell et al., 2004; Abdullah et al., 2012). This describes how balance is struck both for the
organization and its employees in terms of inducements, such as pay, and contributions, such as
work, which ensures continued organizational efficiency. In general, when inducements are
increased by the company, this will lower the tendency of the worker to leave and vice versa
(Morrell et al., 2004). At the same time, managers should also be aware that of the question
whether the decision to leave could have been prevented by the organization. This is important for
the planning of interventions. It would be realistic to manage this turnover as unavoidable rather
than spend on theorized preventive measures, such as increasing pay. These losses of employees
can also be described as necessary causalities (Morrell et al., 2004).
The impact of Human Resource Mismanagement can have a profound negative effect on the
Organization. The expectancy theory predicts that one levels of motivation depends on the
attractiveness of the rewards sought and the probability of obtaining these rewards (Savinelli,
1990) can hold sway in any current organization managements objective to achieve high
productivity and competitive edge in the market place. Employees desire compensation system
that they perceive as being fair and commensurate with their skills and expectations. Pay therefore
is a major consideration in an organization because it provides employees with a tangible reward
for their services as well as source of recognition and livelihood (Howard, 1993; Thwala et al.,
2012; Abdullah et al., 2012).
To be effective, training and management development programs need to take into account that
employees are adult learners (Forrest & Peterson, 2006). Knowless (1990) theory of adult
learning or Andragogy is based on five ideas: (a) adults need to know why they are learning
something, (b) adults need to be self-directed, (c) adults bring more work-related experiences into
the learning situation, (d) adults enter into a learning experience with a problem-centered
approach to learning, and (e) adults are motivated to learn by both extrinsic and intrinsic
motivators. Having a problem-centered approach means that workers will learn better when they
can see how learning will help them perform tasks or deal with problems that they confront in
their work (Aik & Tway, 2006).
All organizations must manage four resources: money, equipment,information, and people.
Investments in better equipment may speed up production or reduce waste. Information is power;
data about products, prices, and customers are essential to every business. Investments in training
and development of employees can make them more productive or more effective in their jobs,
directly contributing to the bottom line. Burke and Days (1986) meta-analysis of managerial
training effects (across six training content areas, seven training methods, and four types of
training outcomes) showed that managerial training is moderately effective. Collins and Holton
(2004), in their evaluation of 83 studies from 1982 to 2001, including education, government,
medical, and military organizations, came to a similar conclusion. Even a moderately effective
training program can have a substantial effect. A training program for 65 bank supervisors was
found to cost $50,500, but the utility to the organization was over $34,600 in the first year,
$108,600 by the third year, and more than $148,000 by the fifth year (Mathieu & Leonard, 1987).
Human resources are the source of achieving competitive advantage because of its capability to
convert the other resources (money, machine, methods and material) in to output
(product/service). The competitor can imitate other resources like technology and capital but the
human resource are unique. According to Khatri (1999), people are one of the most important
factors providing flexibility and adaptability to organizations. Rundle (1997) argues that one
needs to bear in mind that people (managers), not the firm, are the adaptive mechanism in
determining how the firm will respond to the competitive environment. Several scholars have
noted that managing people is more difficult than managing technology or capital (Barney, 1991;
Lado and Wilson, 1994). However those firms that have learnt how to manage their human
resources well would have an edge over others for a long time to come because acquiring and
deploying human resources effectively is cumbersome and takes much longer (Wright et al.,
1994).
The effective management of human resources requires sound Human Resource Management
systems. Storey (1995) defines HRM as a distinctive approach to employment management which
seeks to obtain competitive advantage through the deployment of a highly committed and skilled
workforce, using an array of techniques. HRM can help firms improve organizational behavior in
such areas as staff commitment, competency and flexibility, which in turn leads to improved staff
performance (Koch and McGrath, 1996).
Workforce is a heavyweight component of any organization and therefore employees are always
considered as the greatest asset of an organization. Without employees, organizations will not be
able to produce business results, achieve organization goals, or meet its financial objectives. Most
organizations recognize the importance of human resources in realizing the success of their
businesses. A profit-making company may possess the strongest edge, in terms of technology,
depth in funding, market location etc., but without its strong workforce to execute their respective
roles and responsibilities, the company would not be able to progress to meet any of its business
or organizational goals (Mobley, 1982; Taylor, 2002).
Unwanted employee turnover is one of the biggest and most costly business problems companies
may face (Taylor, 2002). Besides losing the costly knowledge base when employee leaves, the
organization will have to re-organize its resources so that business plans and goals will continue
to stay the course. For any team or organization, which is tightly or thinly staffed, losing a
member of the team or member of the staff would cause major agony, increase work pressure,
drop in employee morale and in extreme cases, failure in achieving desired results (Mobley,
1982). To hire or get a replacement employee will normally take some time. Furthermore, the
works that need to be put in before hiring or getting a replacement employees require a great deal
of effort and involve substantial amount of efforts. Besides effort and time, these activities would
also require substantial costs (Mobley, 1982).
In the local context, there is a steady increase in the percentage of turnover. It has been reported
that the voluntary turnover rate in Malaysia has risen from 10.1 percent in 2009 to 13 percent in
2010 (Federation of Malaysian Manufacturers, 2009-2010). According to the Federation of
Malaysian Manufacturers (FMM), the manufacturing industry in the nation has recorded an
average yearly turnover rate of 18.84 per cent for the time period of July 2010 to June 2011. In a
parallel fashion, Hewitt Associates (2007) Total Compensation Management Survey reported
that the average employee turnover rate in Malaysia is 18 percent. FMM report also showed the
average turnover rate is 1.97 percent for non-executive and 1.35 percent for executive level
employees. This trend is worrying because whether leaving is involuntary, such as termination
initiated by the employer, or voluntary, such as resignations, turnover is potentially costly and
may have negative organizational implications. Adverse impacts of turnover to organizations
includes high costs of recruiting, hiring, training and acquiring new employees, productivity loss
during replacement search and retraining, loss of high performers, and disruption of social and
communication structures (Mobley, 1982).
While many argue that each business entity whether small, medium or big has its own unique way
of motivating its employees, job satisfaction of workers can be commonly grouped into five
distinct model categories: need fulfillment, discrepancies, value attainment, equity, and
dispositional/genetic components models (Kinicki & Kreitner 2007). These are explained as: need
fulfillment is based on the satisfaction determined by the extent to which a job, with its specified
characteristics and duties, allows an individual worker to meet his/her personal needs. Second, the
discrepancy model explains that satisfaction is a result of met, or sometimes unmet, expectations.
Third, the value attainment models are based on the belief that satisfaction comes from the
perception that ones job fulfills an individuals work values. Fourth, the equity models assert that
satisfaction is based on the perception of how fairly an individual is treated at work. This is
largely based on how ones own work outcomes, relative to his/her inputs and efforts, compare to
the input/output of others in the work place, and lastly; the dispositional/genetic components
models suggest that individual employee differences are just as important for determining job
satisfaction and success as workplace related factors (Kinicki & Kreitner, 2007).
Job satisfaction is one of the most important and significant variables in organizational behavior
and in work organizations. It is the general attitude of an employee to the job. The higher the job
satisfaction, the more likely workers will hold a positive attitude toward their jobs (Wang & Feng
2003), and are more likely to be committed to the organization. Similarly, workers with higher
level of job satisfaction would display a decreased propensity to search for a job and decreased
propensity to leave the organization (Wright & Bonett 2007). In the same way, employees who
perceive their needs as unmet grow in general dissatisfaction and become increasingly attracted to
competing places of employment (Tziner 2006), and often result in voluntary termination and
organizational turnover (Mathieu & Zajac 1990).
As a result, job satisfaction has been described as a complicated and multi-faceted construct
(Lagace et al., 1993). This is because individuals differ in the way they perceive satisfaction.
Hence, Taber and Alliger (1995), for example, emphasized that to understand overall job
attitudes, researchers must examine the principal tasks and activities in which employees engage.
Nevertheless, the most accepted and common facets of job satisfaction are the satisfactions with
pay, promotion opportunities, coworkers, supervision, and the work itself (Smith et al 1969).
These five job facets typically account for a substantial amount of the variance in overall job
satisfaction (Kinicki et al 2002).
Thus, since turnover appears to be a major issue for many organizations, and indeed a problem of
considerable importance because of the costs associated with hiring and training new personnel;
rewards, particularly intrinsic rewards, such as interesting job and job autonomy, are found to be
the major drivers of job satisfaction for most countries (Westover & Taylor 2010).
While significant changes have marked the business landscape, the retention of the right people is
just as relevant as before. However, nowadays, Studies have identified the lack of appropriated
motivation among engineers have resulted in higher turnover rates than among other type of
workers. Therefore, managements failure in rewarding engineers based on answering their
motivation needs beyond those appealing to non-technical professionals has resulted in higher
turnover rates among the former than the later group (Petroni, 2000).
During the last decade, the personnel/HRM field has shifted from a micro focus on individual
HRM practices to a debate on how HRM as a more holistic management approach may contribute
to the competitive advantage of the organizations. Three different perspectives have been used in
recent researches on the relationship between HRM practices and organizational performance,
organizational retention and organizational strategies. (Bjorkman and Pavlovskaya: 2000) A
number of studies have found that managing turnover is a challenge for organizations, as different
organizations using different approaches to retain employees (American Management
Association, 2001).Employee retention is also likely to be important for firm performance. If the
company is not able to retain its employees, it will not be able to capitalize on human assests
developed within the organization. (Shekshnia, 1994)
Retention is considered as all-around module of an organizations human resource strategies. It
commences with the recruiting of right people and continues with practicing programs to keep
them engaged and committed to the organization (Freyermuth, 2004).
Malaysias education sector has always been centered by government to emphasize higher
education level provided to the citizens. Malaysias Ministry of Higher Education thrives to create
an outstanding higher education environment for establishment of internationally competitive
education institutions in order to nurture knowledgeable, competent and globally competitive
human resource base (Rosdi & Harris, 2010). Economic Planning Unit (2008) revealed that
privatisation of higher education institutions stimulates intense rivalries to match offer for
competent high qualification academicians (Hashim and Mahmood, 2011). In addition, the
emphasis on continuing upgrading institutions through global ranking further forces them to focus
greater concern on employee retention practices (Lew, 2009). In explaining factors contributing to
employee retention, it is essential to consider motivational theories as motivated employees tend
to stay with an organization longer. To illustrate further, an employee will be motivated to carry
out his job if given sufficient guidance through training & development, appraised through
effective performance standard and compensated equally according performance standard.
Through the understanding of various well-known motivational theories such as Maslows Need
Hierarchy and McClellands Need Theory, we can point out the critical factors that have
implication toward retention practices focus on physical and emotional needs, working
environment, supervision, responsibilities, supervision, fairness & equity, employee development
and feedback on performance (Ramlall, 2004).
They enhance internal capabilities of an organization to deal with current or future challenges to
be faced by an organization. Good HR practices also energize people working in the organization.
The commitment and motivation built through good HR practices can lead to hard work. The
culture so built can help to create a sustainable and lasting capability of the organization to
manage itself and not only cope with the external turbulence (Aneet, 2006). Good employees are
supposed to have such characteristics as high satisfaction with their jobs,
high commitment towards the organization, high motivation to serve the public and strong
intentions to work for the organization willingly and devotedly. ( Sangmook Kim,2004).
An analysis of prior research works on HRM has identified some immediate effects of HRM
practices, known as HRM outcomes. The HR outcomes are, in turn, expected to explain some
of the variance in firm performance (Becker et l., 1997; Guest, 1997). Such HRM outcomes
include knowledge, skill and abilities or competence (Beer et al., 1985; Schuler, 1989;
Barney, 1991; Pfeffer, 1994; Lado and Wilson, 1994 Becker et al., 1997; Lengnick-Hall and
Lengnick-Hall,1999; Sandberg, 2000), teamwork (Beaumont, 1993), cost effectiveness (Beer
et al., 1985), motivation (Pfeffer, 1994; Schuster, 1998), organizational commitment (Beer et
al., 1985; Putti et al., 1989; Beaumont, 1993; Ulrich, 1997; Storey, 1997; Yeung and Berman,
1997), behaviour (Schuler, 1989; Jackson et al., 1989; Morrison, 1996; Rucci et al., 1998),
flexibility (Beaumont, 1993; Pfeffer, 1994; Storey, 1997)and customer orientation (Storey,
1997).
Dessler (1994) categorizes HRM systems according to five activities: selection, training,
compensation, labour relations and employee security. A human resource system increases
organizational performance, develops and maximizes an organizations abilities (Huselid,
1995; Becker & Gerhart, 1996), and contributes to continue competitive advantage of the
organization (Lado & Wilson, 1994). Thus, a good HRM system consists of a coherent set of
practices that enhance employee skills and abilities, provide information, empowerment and
participation in decision-making, and motivation (Pfeffer, 1998; Applebaum et al., 2000).
It is accepted that HRM activities may affect organizational performance either directly or
indirectly through HRM outcomes. Petra & Juan (2004) proposed a model based on their
main hypothesis that human resources constitute a source of competitive advantage. This
model also considers that know how to establish a HR system that incorporates HR policies
and practices in order to create and maintain the strategic human capital could have a
sustainable competitive advantage. Competition Source: Prez, P. D. S. and Falcn, J.M.G
(2006),
Numerous studies have already acknowledged that employees trust is a critical variable
influencing the performance, effectiveness, and efficiency of the organisation(Dirks and Ferrin,
2002; Kramer and Tyler, 1996; Lewicki et al., 1998; Mayer and Davis,1999; Mayer et al., 1995;
Whitney, 1994). Much of the research literature focuses onways of fostering and enhancing trust
among employees (Dolan and Garcia, 2002;Gambetta, 1988; McKnight et al., 1998), suggesting
that organisations view trust as adesirable attribute. Support for this perspective is shown by
studies linking trust witha variety of work behaviours, including organisational citizenship
(Konovsky and Pugh, 1994), employees performance (Mayer and Davis, 1999), intention to
turnover (Albrecht and Travaglione, 2003), problem-solving (Zand, 1972), level of openness
within a top management team (Siobhan, 1993), support for authorities (Brockner et al., 1997),
satisfaction (Gould-Williams, 2003), and organisational commitment (Cook and Wall, 1980).
Some have argued that the traditional psychological contract in which full-time permanent
workers gave their loyalty to an organisation in exchange for job security is dead (OReilly,
1994). In its place, a new contract is emerging in which employers still expect loyalty, hard work
and value added to the organisation. In exchange, organisations offer extrinsic rewards such as
pay that reflects employee contributions and experiences and training that will give them
employability security as well as intrinsic rewards in the form of a generally pleasant working
atmosphere. The later is often referred to in the literature as the core of the psychological contract
(Rousseau and Aquino, 1993). Broken psychological contracts can cause organisations problems
such as loss of trust, anger and litigation. Human resources departments are therefore expected to
develop policies and strategies that reinforce the transition to a new psychological contract,
especially during times of layoffs, heavier work loads and major changes in work processes
(Ghoshal et al., 1999; Rousseau and Wade-Benzoni, 1995).
The discovery of oil in commercial quantities in Ghanahas brought in its wake the need to
properly manage the human resources in the extractive industry in order to improve performance
as well as retain core human resources. Human beings are the basic resources operating in the
mining industry, thus the survival of the industry depends to a large extend on its ability to
develop and retain its human resource base (Landford et al, 1995). The need for human resource
managers to keep up with effective management of employees in the mining industry cannot be
overemphasized. It is thus incumbent on the industry to manage, develop and maintain the
workforce in order to meet the new demand. indicates that few managers grasp the full extent to
which employee turnover affects their bottom line. Hard costs such as recruiting, interviewing and
training come to mind quickly and are easy to quantify. However there are other cost that are
more difficult to quantify, but can have a huge impact on an organizations bottom line (Teh,
2008). Pfeffer, (1994) argued that human capital has long been held to be a critical resource in
most firms. Companies are now trying to add value to their human resources and human resource
(HR) department has been set up to manage their human capital. Stavrou-Costea, (2005) also
argues that the effective human resource management can be the main factor for the success of a
firm. Most of the companies believe that without efficient HRM programmes and activities
companies would not achieve and survive. Consequently most of the organizations, domestic
companies and multinational companies/corporations (MNCs) all over the world nowadays tend
to focus more on HRM and also treat HRM as a key to success. A Harvard University study
reports that 80% of turnover can be blamed on mistakes made during employee selection and
hiring process. The study believes that selecting the right employee is an important moral
obligation. Psychological testing has been found to be one of the most valid and cost-effective
strategies for identifying the most suitable job candidates (Schmidt and Hunter, 1998). Within the
UK and other countries, reports abound of industry concerns over the turnover and wastage of
competent employees (Ford, 1997). Such concerns have been fuelled by years of falling
enrolments to mining and construction degree courses which have taken their toll on the supply of
future employees (Barrick, 2000). Thus, reducing staff turnover and retaining key employees have
become core strategic imperatives for most organizations (Rethinking Construction, 2000).
Retaining key employees relies upon an employment culture in which employees work for and
develop the organization in a spirit of cooperation and involvement. However, the new levels of
expectation on employees may place considerable strain on the employment relationship. For
example, recent evidence suggests that mining professionals experience extreme occupational
stress (Sutherland and Davidson, 1993). This drives some employees out of the industry
altogether and those who remain have found themselves having to cope with severe tensions in
their work- life balance (Lingard and Sublet, 2002).
The global turmoil has witnessed the growing importance of Human Resources Management
(HRM) in both business and public life. The turbulent business climate brought in the wake of
liberalization, globalization, changing technologies, growth in knowledge and advances in
information technology is offering managers a complex and challenging situation (Davis, 1995).
The HRM has emerged and evolved as one of the most important areas of organizational science
and practice. It has not been developed in isolation, but rather in the context of industrial change
and economic development. The uniqueness of the Human Resources (HR) approach requires a
totally different type of attention from managers. The HR has characteristics that provide the
greatest challenge as well as opportunity. A companys HR is fragile with delicate relationships,
along with unpredictable contributions, and permanency is uncertain (Guest, 1991). Wright,
Smart, and McMahan, (1995) mention that the crucial inputs, among others, to an organization
are its human resources. People bring to their jobs diversity of skills, needs, goals, and
expectations. They are socialized into the organization through their hiring to begin with, and
their continuous functioning in the organization. According to Bulla and Scott (1994), we need to
ensure that the human resource requirements of an organization are identifi ed and plans are made
for satisfying those requirements. Guest, Conway, Briner and Dickman (1996) are of the opinion
that the interface between the individual and the organization is critical to full utilization of
human resources. The individual and the organization establish a psychological contract.
Individual members expect to make contributions to the organization and receive certain rewards
in return. The organization provides certain rewards and expects in return certain contributions
from the individual. It is at this interface between the individual and the organization that issues
such as HR planning, work analysis, career development, leadership, job motivation, the
appraisal-reward process, and the organizational culture become important. The patterns of work
relationships at work refl ect the HRM philosophy. The practices and philosophy of HRM are
perpetuated by managers who are encouraged to follow the role model of their seniors. In the
process of organization socialization they internalize the values and attitudes of their leaders. The
entire process is thus institutionalized (Snell, Youndt, and Wright, 1996). In general, HRM has
been described as: broad and strategic; involving all managerial personnel; regarding employees
as the single most important organizational asset; being proactive in its responsibilities; and
having the objective of enhancing organizational performance and meeting employee needs
(Poole, 1990).
According to Sari (2009), the purpose of organizing training programs for employees is to teach
the employees about the company specifics, educate them general rules, to provide them technical
knowledge which is considered important to complete the job task effectively and to eradicate the
probable imperfections at work. The topic of employee training in organizations is instigated from
the thought of human resource development (Juang et al., 2007). According to Sari (2009), the
training programs are conducted to make the outcomes of employees better and to help the
employees in keeping their health safe. The function of a regular training program is to enhance
the skills, knowledge and performance of employees along with securing their physical and
mental fitness. To make sure the better usage of human resources and to operate the organization
in a better way, training programs can be used to enhance the working capacities and personal
abilities of employees and results of training program can be increased if its syllabus is prepared
and designed properly (Juang et al., 2007). Chew (2004) has suggested in the findings of his
research that larger employers, organizations having systems of high performance, having fast
technical development and production growth and having large capital can train their employees
more than other organizations. Consistent with this view, Chew (2004) has also indicated that the
establishments which give more benefits and implement inventive work practices conduct more
training programs for their employees with respect to other organizations. The concept of team is
defined as the social systems of two or more people that are embedded in organizations, whose
members perceive themselves as such and are perceived as members by others and who
collaborate on a common task (Hoegl, 2005).

OBJECTIVES OF THE STUDY
To focus on the dimensions of HRM practices.
To examine the relationship between compensation and employee intention to stay.
To examine weak points of HRM practices which effects employees satisfaction.

LIMITATIONS OF STUDY
The study is carried out only in Amritsar only so the scope of the study was limited.
Due to time constraints only 30 Respondents have been covered.
The study was conducted for a relatively short period which was too limited for preparing a
detailed report.















CHAPTER II

REVIEW OF LITERATURE

Literature review shows the overall scenario of the employee as well as its evidence in the world.
The reviewed research articles, thesis or dissertations, etc. were received from friends, national
and international libraries, journals, publications of banking industry and websites. A review of
those studies will be important in order to develop an approach that can be employed in this
study.
Why do employees leave organizations?
There may be various reasons for leaving organizations. McCann (2004) finds out some reasons
of leaving organization, which are: basic financial needs not met lack of competitive salary, poor
benefits, poor communication, negative work environment, lack of recognition, unfair treatment,
lack of challenging job, lack of job security and life conflicts.
Is there relation between job satisfaction and employee retention?
Job satisfaction is a set of favorable or unfavorable feeling and emotions with which employees
view their work (Newstrom, 2009, p. 204). It is pleasurable feelings that result from the
perception that a job fulfills or allows for the fulfillment of its holders important job values
(Cascio, 2007, p. 680). Job satisfaction is an attitude rather than a behavior, its an outcome that
concerns many managers because satisfied employees are more likely to show up for work and
stay with an organization (Robbins and Coulter, 2006, p.343).
Job satisfaction is a general attitude toward an individual current job and organization that
encompasses the feeling, beliefs, and thoughts about the job (Bitsch and Hogberg, 2004, p. 2).
Herzbergs Motivational factors and hygiene factors promote job satisfaction. Lack of self-
fulfillment, receive little recognition on the job, or experience continual conflicts with a
supervisor or peer etc. lower the employee satisfaction and raise rates of employee turnover
(Newstrom, 2007). Hom and Griffeth (1995) state satisfied employees have lower level of
turnover while dissatisfied employees have higher levels of turnover. Nadeem Malik conducted a
research on Job Satisfaction Factors of Faculty Members at University of Balochistan and reveals:
Demographic factors such as age, academic rank, and degree no significant impact on job
satisfaction.
Work Itself was the most motivating aspect.
Working condition was the least motivating aspect.
Job motivators and hygiene characteristics were moderately or substantially related to overall job
satisfaction.
The factors work itself and advancement explained the variability among faculty members
overall job satisfaction.

Higher job satisfaction reduces the rates of employee turnover. Thus job satisfaction and
employee turnover have inverse relationship.
Howard and et al. (2007) conducted a research and they identify the following reasons for
employee turnover: Lack of growth opportunities, better career opportunity elsewhere,
insufficient compensation, did not find work interesting, insufficient rewards/ recognition, did not
feel efforts where appreciated, job was not what was expected, poor fit with the organizational
culture, external factors, job left too little time for personal life, skills/abilities not a good match
for the job, felt unfairly treated/discriminated against, job changed focus or scope overtime, poor
relationship with the manager, the economy changed, making a move people, and poor
relationship with co-workers Human resource management (HRM) is considered a critical
organizational resource that helps an organization sustain its effectiveness. It is one important area
that influences a number of employees' attitudes and behavior such as intent to leave, levels of job
satisfaction, and organizational commitment (Lee & Heard, 2000). Pfeffer (1998) suggested that
soft or high commitment human resource management practices are those that generate trust in
employees and these practices include giving employees empowerment and involvement in
decision making; extensive communication about functioning and performance of the employees
service; designing training for skills and personal development of employees; selective hiring;
team-working where idea are pooled and creative solutions are encouraged; rewards system that
commensurate with effort; reduction of status between the management and staff and all workers
are valued regardless of their role. According to Macky & Boxall (2007), the scientific literature
assumes a causal link flowing from HRM practices to organizational performance via the
responses of employees. Organizations that do not pay equitably compared to others may lose
their employees because of the non-competitive compensation package (Adams, 1965).
According to Lawler (2005), society has entered a new era in the relationship between
organizations and their employees. In this new era, people are the primary source for acompanys
competitive advantage and organizational prosperity and survival depends on how employees are
treated. The human aspect of HRM is concerned with the relationship between employer and
employee and it associated with the human relations movement and the concept of high
commitment work practices developed by (Walton, 1985). The best Human Resource practices
areas are recruitment and selection, socialization, job design, training,
communication/participation, career development, performance management, employee reward
and job security (Huselid, 1995). It is plausible that when employees judge the organization to be
fair and supportive in their treatment particularly with regards to the availability and frequency of
promotional opportunities, adequacy of pay and good supervision, positive feelings of well being
will be created, which is likely to stimulate that to reciprocate by increasing their loyalty to the
organization and reducing turnover (Nasurdin et. al., 2001). The motivation and opportunity
focused bundles of Human Resource practices positively related to affective commitment and
negatively related to turnover (Gardner et. al., 2007). Wayne et. al. (1997) suggested that HRM
practices that signaled the organization's intentions to invest in employees (such as developmental
experiences and training) produced higher levels of affective organizational commitment. HR
practices such as pay, benefits and training are negatively related to turnover because they
motivate employees and "lock" them to their jobs (Lazear, 1986; Madrian, 1994; Gruber &
Madrian, 1994). Shaw et al. (1998) indicate that involuntary turnover is affected by staffing
practices (recruitment and selection process) and employee monitoring (performance appraisal).
DeCenzo and Robbins (1996) opine that employee training has become increasingly important as
job have become more sophisticated and influenced by technological changes. Bernardin and
Russel (1993) opine that over the years, training has become increasingly popular as HR tool for
improving employee and managerial performance in organization. Buck and Watsons (2002)
indicated nine important HRM practices such as decentralization, Compensation, Participation,
training, development, employment security, social interactions, management style,
communications, and performance appraisal.







CHAPTER III

RESEARCH METHODOLOGY

Research Methodology is a process of gathering, recording, analyzing, and interpreting the data.
This chapter deals about research methodology used in this study.
Data collection method
In this section, there would be illustration on what methods will be used in collecting the data
which helps in further solving the research problems.
Primary data
The data is collected through the primary source. Questionnaire method is used to collect data
through the questionnaires. The relevant questions were asked from respondents to answer them
according to their personal situation. Questionnaires have the comparing advantage such as: it is
easy to analyze, familiar to most of the people, it can reduce biasness and less intrusive than face
to face surveys.











CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

1) Age group


Analysis: It is analyzed from the collected data that 26 respondents belongs to the 20-25yrs age
group and 4 respondents belongs to 26-30yrs age group.

20-25yrs, 26
26-30yrs, 4
2) Gender


Analysis: It is analyzed from the collected data that 21 respondents belongs to the male group
and 9 respondents belongs to female group.

males, 21
females, 9
3) Qualification


Analysis: It is analyzed from the collected data that 30 respondents belongs to graduation
group.




graduation,
30
4) Income


Analysis: It is analyzed from the collected data that 27 respondents belongs to 2 lacs to 4
lacs income group and 3 respondents belongs to 4 lacs to 6 lacs group.

2 lacs to 4
lacs, 27
4 lacs to 6
lacs, 3

5) Your organization places the right person at the right job?





Analysis: It is analyzed from the collected data that 20 respondents are strongly agreed, 7
respondents are agreed and 3 respondents are neutral to the above question.






SA, 20
A, 7
N, 3
6) Adequate and relevant information about the organization and job is provided to the candidate at
the time of recruitment?





Analysis: It is analyzed from the collected data that 4 respondents are strongly agreed, 22
respondents are agreed, 2 respondents are neutral, 1 respondent is disagree and 1 is strongly
disagree to the above question.



SA, 4
A, 22
N, 2
D, 1
SD, 1
7) Selection of a candidate in organization is strictly based on his/her merit?





Analysis: It is analyzed from the collected data that 8 respondents are strongly agreed, 11
respondents are agreed, 8 respondents are neutral, 2 respondents are disagree and 1 is strongly
disagree to the above question.


SA, 8
A, 11
N, 8
D, 2
SD, 1
8) Training in organization includes social skills, problem solving skills and broader knowledge of
the organization and business?




Analysis: It is analyzed from the collected data that 14 respondents are strongly agreed, 8
respondents are agreed, 6 respondents are neutral and 2 respondents are strongly disagree to the
above question.

SA, 14
A, 8
N, 6
SD, 2
9) The contents of the training programs organized are always relevant to the changing needs of job
and business environment?


Analysis: It is analyzed from the collected data that 9 respondents are strongly agreed, 11
respondents are agreed, 8 respondents are neutral and 2 respondents are disagree to the above
question.


SA, 9
A, 11
N, 8
D, 2
10) Pay increments offered by organization are satisfactory?


Analysis: It is analyzed from the collected data that 7 respondents are strongly agreed, 11
respondents are agreed, 8 respondents are neutral and 3 are disagree and 1 respondent is disagree
to the above question.



SA, 7
A, 11
N, 8
D, 3
SD, 1
11) You are being paid adequately for the work you do?


Analysis: It is analyzed from the collected data that 9 respondents are strongly agreed, 6
respondents are agreed, 12 respondents are neutral and 1 is disagreed and 2 respondents are
strongly disagreed to the above question.


SA, 9
A, 6
N, 12
D, 1
SD, 2
12) The pay you receive is competitive compared to that of employees doing similar work in other
organizations?


Analysis: It is analyzed from the collected data that 4 respondents are strongly agreed, 10
respondents are agreed, 9 respondents are neutral, 3 respondents are disagreed and 4 respondents
are strongly disagreed to the above question


SA, 4
A, 10
N, 9
D, 3
SD, 4
13) Rewards and incentives in organization are strictly linked to employees performance.?




Analysis: It is analyzed from the collected data that 9 respondents are strongly agreed, 10
respondents are agreed, 7 respondents are neutral and 4 are disagreed to the above question.



SA, 9
A, 10
N, 7
D, 4

14) In your organization good performers get promoted first.


Analysis: It is analyzed from the collected data that 15 respondents are strongly agreed, 4
respondents are agreed, 3 respondents are neutral,4 respondents are disagree and 4 respondents
are strongly disagreed to the above question.


SA, 15
A, 4
N, 3
D, 4
SD, 4

15) Supervisors of your organization encourage employees to discuss their problems with them?


Analysis: It is analyzed from the collected data that 7 respondents are strongly agreed, 5
respondents are agreed, 3 respondents are neutral, 9 respondents are disagreed and 6 respondents
are strongly disagreed to the above question.

SA, 7
A, 5
N, 3
D, 9
SD, 6
16) You are asked by your supervisors to participate in decision making?


Analysis: It is analyzed from the collected data that 14 respondents are strongly agreed, 4
respondents are agreed, 4 respondents are neutral, 2 respondents are disagreed and 6 respondents
are strongly disagreed to the above question.


SA, 14
A, 4
N, 4
D, 2
SD, 6
17) Your organization duly supports its employees facing any problem?


Analysis: It is analyzed from the collected data that 3 respondents are strongly agreed, 5
respondents are agreed, 12 respondents are neutral, 4 respondents are disagreed and 6 respondents
are strongly disagree to the above question.

SA, 3
A, 5
N, 12
D, 4
SD, 6
18) Each employee is treated with genuine respect.


Analysis: It is analyzed from the collected data that 11 respondents are strongly agreed, 2
respondents are agreed, 12 respondents are neutral, 1 respondent is disagreed and 4 respondents
are strongly disagreed to the above question


SA, 11
A, 2
N, 12
D, 1
SD, 4
19) In future will you be very happy to spend rest of your career with this organization?


Analysis: It is analyzed from the collected data that 6 respondents are strongly agreed, 2
respondents are agreed, 4 respondents are neutral, 5 respondents are disagreed and 13 respondents
are strongly disagreed to the above question.





SA, 6
A, 2
N, 4
D, 5
SD, 13
CHAPTER V

FINDINGS

1. Objective of my study is to focus on dimensions of HRM practices which almost fulfilled
study reveals that most of the dimensions are fulfilled and respondents are satisfied with it.
2. To fulfill second objective that is to examine the relationship between compensation and
employee intension to stay it is analyzed that most of employees are satisfied with their
working conditions as they are receiving incentives and fair wages of their services.
3. Third objective is to examine weak points which lead to employees satisfaction it is analyzed
that Your organization duly supports its employees facing any problem most of respondents
answered neutral it is cleared that organization do less efforts to improve the performance of
weak employees only encourage good performer by giving them incentives and other rewards.




















CHAPTER VI

SUGGESTIONS

1. Company should encourage the morale of other employees also so that they can also improve
their performance in greed of more rewards.
2. Company should provide incentives to all employees according to their work so that this lead to
job satisfaction they feel like home in organization and turnover ratio can be reduced.
3. As most of employees are satisfied by the policies of the organization they should try to
maintain the trust and level of satisfaction by following all the provisions of law.























CHAPTER VII

CONCLUSION

Objective of my study is to focus on dimensions of HRM practices which almost fulfilled
study reveals that most of the dimensions are fulfilled and respondents are satisfied with it. To
fulfill second objective that is to examine the relationship between compensation and
employee intension to stay it is analyzed that most of employees are satisfied with their
working conditions as they are receiving incentives and fair wages of their service. Third
objective is to examine weak points which lead to employees satisfaction it is analyzed that
Organization duly supports its employees facing any problem most of respondents answered
neutral it is cleared that organization do less efforts to improve the performance of weak
employees only encourage good performer by giving them incentives and other rewards.
Company should encourage the morale of other employees also so that they can also improve
their performance in greed of more rewards. Company should provide incentives to all
employees according to their work so that this lead to job satisfaction they feel like home in
organization and turnover ratio can be reduced. As most of employees are satisfied by the
policies of the organization they should try to maintain the trust and level of satisfaction by
following all the provisions of law.














BIBLIOGRAPHY

Websites
http://faculty.ksu.edu.sa/72395/studentsite/Documents/performance%20appraisal%20(2).pdf.
www.sas.org.sg
http://onlinelibrary.wiley.com
http://ideas.repec.org/p/dgr/eureri/2002191.html
http://www.fastcompany.com
http://swoba.hhs.se/hastba/papers/hastba2000_006.pdf
http://wwws.academicjournals.org.
www.holah.karoo.net/reliabilityandvalidity.htm.
http://www.bookboon.com
http://informingscience.org/proceedings/IS2002Proceedings/papers/acton
http://hsepubl.lib.hse.fi/FI/ethesis/pdf/12601/hse_ethesis_12601.pdf
http://www.academicjournals.org/ajbm/PDF/pdf2011/28Oct/Lai.pdf
http://www.aptastandards.com/portals/0/Bus_Published/APTA-BTSBO-RP-003-
009_recuiting_bus_ops.pdf
http:/www.interesjournals.org/IRJASS
http://www.marquette.edu/ombuds/documents/Make_The_Most_of_Your_PerformanceAppraisal.
pdf.
http://www.macrothink.org/journal/index.php/jmr/article/view/342/253
www.ijcrb.webs.com

Journals
International research journal of arts and social sciences vol.2(2)
Applied H.R.M. research,2003,volume 8, number2
Interdisciplinary journal of contemporary research in business vol.4, number 2







CONTENTS





CHAPTER NO.

TITLE

PAGE NO.

I

INTRODUCTION


II

REVIEW OF LITERARTURE


III

RESEARCH METHODOLOGY


IV

DATA ANALYSIS AND INTERPRETATION


V

FINDINGS


VI

SUGGESTIONS


VII

CONCLUSION


VIII

BIBLIOGRAPHY


IX

ANNEXURE