A Study On Impact of HR Strategies On Employee Performance in Abu Dhabi Distribution Company

International Journal of Social Science & Interdisciplinary Research__________________________________ ISSN 2277- 3630
IJSSIR, Vol.2 (1), January (2013)

Online available at indianresearchjournals.com
154

A STUDY ON IMPACT OF HR STRATEGIES ON EMPLOYEE
PERFORMANCE IN ABU DHABI DISTRIBUTION COMPANY

ANURADHA REDDY

Research Scholar (Kakatiya University),Freelance Report Writer,
Professor, Cornerstone International School for Business Management,
Sharjah, Al Ain, UAE,

ABSTRACT

In any organization HRM has to object on ensuring and achieving return on investments and
this can be maximized by effective utilization of skilled and un-skilled manpower. Here it is also
important to consider the financial risks that should be kept at minimum levels (Coyle-Shapiro
Shore, 2007). It is stated that (Wilkinson and Ackers, 2001) commitment of employees and their
attitude towards the work changes from time to time in the organization. So it is the HRM who
has to look forward for planning and implementing effective HR strategies so as to increase
employee performance. Thus aim of the research is to study the employee perceptions on HR
strategies of ADDC. Objectives of the study include identifying the various HR strategies
implemented by the organization, identifying the organizations human resources systems,
policies and practices, study the impact of these policies and practices on employees and finally
put forward few recommendations based on the analysis of the results. Research results show
that most employees are not been rewarded for their performance and most employees are
unaware of the performance appraisal system, there is a need to revise and focus on promotion
and reward policies and as most employees are not happy with their benefits like compensation.
Thus it is recommended that the more the appraisals and rewards the more will be the employee
commitment. In other words it can be said that ADDC can further boost their employee
performance through revising the current salaries, giving rewards for better performance,
promoting employees who perform their job well.

INTRODUCTION

When people feel great about the place where they workthey provide better customer
service. When the employees of the organization feel great about the place where they are
working their perception towards the organization brings positive aspect and able to achieve the
organizational goals effectively. This research tries to find the best practices in the management
of human resources are the ones which optimize a workforce so that it can not only get work
done, but also ensure a greater level of efficiency, timeliness and quality as it accomplishes
increases productivity overall. The scope of the study is limited to employees perception
towards HR practices and main emphasis is on various HR practices which the company is
following within the organization such as
Employees clarity on HR policies
Employees clarity on roles, responsibilities and expectations
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Competitiveness of compensation structure relative to industry benchmark
Usefulness and accuracy of compensation
Training and Developmental practices
Employees assessment of promotion criteria and process (clarity, fairness)

Significance of the Study

This current study on Employee perceptions towards HR Practices in ADDC tries to bring
awareness in the readers as well as the chosen organization to learn about
Understanding the employees perceptions towards the HR strategies and practices in the
organization
Identify the positive and negative attitudes and their outcomes
Learn to identify attitudes and overcome them with the help of organization
Identifying the reasons for these perceptions
Learn that employee perceptions are vital for organizational development.

Organization of the Study

Abu Dhabi Distribution Company (ADDC) is a public joint stock company which is a wholly
owned subsidiary of Abu Dhabi Water and Electricity Authority (ADWEA). ADDC is
responsible for distributing high quality water and electricity services to all customers in the
emirate of Abu Dhabi, excluding the Al Ain region. The company's core business is the
planning, design, construction, and operation of the Abu Dhabi water and electricity distribution
network. The company is developing maintaining and operating the cost effective water and
electricity distribution systems by offering and providing the best services to consumers through
customer service orientation and utilization of best billing payment alternatives. Abu Dhabi is
positioning itself as a leader in the field of structural reforms and the development of
organizational practices in the water and electricity sectors in the Middle East. In the last few
years we have witnessed significant changes in the organizational methods and supervision of
this sector. Prior to the year 1995, the Department of Water & Electricity was responsible for all
matters related to the sector, including power generation, water desalination, transmission,
distribution and supply operations. The organization was based on a conventional hierarchical
system descending from top to bottom like any other government department composed of
different interrelated sections.
After establishment, ADWEA dissolved and restructured the vertical & horizontal organizational
system of the old WED and implemented a new structure for the water and electricity sector on
the first of January 1999. Projects Directorate manages the execution of highly valued projects
on behalf of Abu Dhabi Distribution Company (ADDC) & Al Ain Distribution Company
(AADC). It also plays an important function in consolidation and of common issues including
standard specifications for water & electricity projects. The Projects Directorate is also revising
the annual balance for the new projects drafted by ADDC & AADC and passing the estimates for
approval. The Directorate supervises the execution of the special and strategic projects for
storage of water for emergencies (www.adwea.ae).

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Organization Vision & Mission

In view of operations and achievements, ADDC and its subsidiaries anticipate possessing a
leading position in the Gulf competing with pioneers involved in the water, electricity and
sewerage sector worldwide. The company and its subsidiaries clearly indicates that it wants to be
the most successful in all the operations it is carrying by providing quality of demanded services
and products to its beneficiaries.
ADDC produces, transmits and distributes potable water, electricity and sewerage services
reliably, securely, safely and cost-effectively throughout the Emirate of Abu Dhabi
(www.adwea.ae). From the mission statement it is clear that the company is contributing and
enhancing the services through their strategic objectives for the overall organizational levels in
Abu Dhabi.

LITERATURE REVIEW
HR Strategies & Effectiveness

There is a significant change in the role of the Human Resource (HR) department over the past
few years. Development of various strategic approaches has been adopted increasingly as an
integral part of the organization. There is a link developed between HR strategy and business
strategy which helps organizations to achieve their set objectives thus building people
capabilities. Continuous growth in HRM (Human Resources Management) past many years
aimed to recognize knowledge and skill of the employees and technology as well. Business
strategy of any organization needs to focus on HR strategy and this in turn needs to be carefully
linked to the Vision, Mission and overall business strategy of the organization. For any
organization HR values take up major priority as its leads to the success of the business.
According to Boeker.W, (1997) good HR values of the organization creates positive perception
to employees towards the organization and according to Locke K (2001) HR values of the
company includes concern for people, integrity, customer orientation, team work, continuous
improvement and execution excellence. This shows the importance of employee concerns for
which organizations HR has to strive focus on business performance as well as organization
performance.
Thus it can be said that the formulation of new policies and changes to the existing policies are
done in line with the business plan, business model, market trends, best practices of
benchmarked companies, suggestions, employee feedback through communication meetings and
through Employee Satisfaction Surveys (Ladika, 2006)
All these factors will help the employee perception towards the HR practices of the
Organization. It is true that the incorporation of HR policies and strategies with the
organizations strategy not only improves organizational performance but also employee
performance. In every organization employees should know their goals, feel respected and
valued, understand their role, and know how to succeed. When such conditions are created by
employees it leads to organizational success and improves productivity thus reducing the risk
involved. In the process of creating effective HR practices and strategies organization face
challenges but creating such effective strategies enhances the organizational effectiveness and
helps in resolving issues and problems within the organization (Yoon and Theye, 2002).
According to Huseild (1995) there are two types of HR strategies, hard and soft. Soft strategies
include reward and recognition, employee relations, learning and talent development, employee
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relations etc., and hard HR strategies include organizational design, organizational development,
resourcing and talent planning and performance management. For any organizations success it
is very important to implement and plan for these strategies. While integration of both HR and
business strategy includes techniques of performance management such as performance appraisal
system, controlling the set work targets and bringing flexibility in organization. The process of
integration is said to be vital and helpful as well for the organization and further helps in
employees in organizational change and development. Organisational commitment depends on
employee satisfaction. When there is low employee commitment towards organization it is
important for the organization to understand and identify the need to develop employee
commitment which is only possible through effective formulation of HR strategies. It is found
that HR practices of the organization show impact on organization turnover, productivity and
corporate financial performance.
Allen and Meyer (1990) investigated the link between the three attitudinal commitments and HR
strategies which are said as affective commitment, continuance commitment, and normative
commitment. Affective commitment discusses about employee's attitude and attachment towards
the organization and also identifies employee performance. Continuance commitment discusses
about the association of employees whoa are leaving the organization. Normative commitment
discusses the employee feeling of obligation on the employee remaining with the organization.
Further all these components are negative indicator for turnover which clearly indicates the
attitude of employees.

HR Strategies for Modern Organizations

Role of HR and strategies formulated by them are vital for modern organizations. According to
Bratton and Gold (2007) major focus of HR while creating HR strategies should be on
Create a culture at corporate level to improve the individual performance
Rewarding employees will increase employee commitment towards organization and this
will directly help in reaching organizational goals and objectives
Developing skills and positive attitudes in employees will help the employees to perform
their job more efficiently
Making available all the necessary resources to the employees to perform their job well
In any organization HR value propositions are vital for consideration. According to Dave Ulrich
(2005) there are four major categories of HR Value proposition
Flow of people It includes promotions, transfers, outplacements, training and
development.
Flow of performance Management This includes measuring job performance,
appraisals, rewards and regular follow ups.
Flow of information Organizations should keep in touch with the important external
realities, manage internal communication and perfectly and/ or properly design
information technology infrastructure.
Flow of work This includes organization structure, work process design and other
physical arrangements. Thus, it can be said that it is conceptual work force which drives
the responsibilities of HR effectively

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Training & Development

HR strategies and practice play an important role in developing good organizational structure
which therefore results in better organizational and employee performance. Organizations must
plan and implement effective training goals and should look for the final achievements. It is
important for human resource management to find the most effective ways to train and employ
their employees. HR practices such as training, mentoring, coaching and designing and
developing people should be effectively planned before implementing them and prior to
implementation HRM needs to focus on the effectiveness of training in all means and forecast
the challenges that could rise during training. The overall goals of training should focus on
Restructuring organization and work
Enable learning in employees
Improving decision making skills in employees
Improve employee behavioral and attitude towards work and organization
Improve employee job satisfaction and commitment towards organization
Facilitating employee personal development (Bratton and Gold, 2007).
Bratton and Gold (2007), state that training employees includes certain aspects such as attitude
and behavior, ethics and morality, leadership and determination finally skills and knowledge that
are essential aspects to be considered while implementing HR strategies. Considering attitudes it
is related to personal or individual thinking and emotional maturity, belief, self confidence etc.
are some of the challenging issues faced by the management during training and development.
Retention, Delivery, Cost, Measurement, Performance are some of the challenges faced by HR
during training that needs to be handled by HR professionals. According to Davenport (2006),
there are many internet supported softwares and it is an easy task to implement such strategies.

Employee Perceptions on Work Situations

HR practices such as training, developmental practices, reward system, promotions, pay etc
shows a major impact on the employee attitudes in an organization. Designing effective
structures of compensations, rewards, appraisal systems, performance identification etc. helps the
HR to identify and judge the employee commitment on the organization (Saari and Judge, 2004).
Therefore designing and implementing effective HR strategies and practices will help the
management to improve its performance and also changes employee attitudes towards
organizational HR strategies (Gomez-Mejia, Balkin and Cardy, 2007)
Next organizational culture plays a vital role on changing employee attitudes at work. According
to Saari and Judge (2004) employees with different cultural backgrounds work in an organization
and in such case the culture plays a vital role in employee attitudes. One of the reasons were
found to be globalization and the different challenges the HR is facing currently. Considering
Hosfetde cultural dimensions such as masculinity - femininity, individualism collectivism,
uncertainty avoidance and power distance, each nation has varying impact of these dimensions
that needs to be considered while designing HR practices especially there is a need to focus on
improving and maintaining positive organizational culture. Understanding these dimensions
helps the organization to clearly understand the employee attitudes towards organization (Saari
and Judge, 2004). Further the researcher in their study reported that country and culture plays as
a strong predator in identifying employee perceptions towards the job they are handling.
159

Therefore culture also plays a vital role in changing attitudes employee attitudes towards HR
strategies.

RESEARCH DESIGN AND METHODOLOGY

Research design and methodology discusses research methods used for the analysis and
interpretation that helps to understand the various aspects of study related to the HR issues like
training and development, promotion policy, performance appraisal system, selection process
working atmosphere, safety measures, promotion policy, welfare measures, retirement benefits
etc., implement ting in ADDC Company.

Reasons for Research

Research on employees perception towards new technology in the work place are more strongly
affected by organizational rather than technical factors as common thought, labour unions,
contrary to popular belief, view technological change positively, and can be a contributing factor
to the facilitation of change within the firm.
Relationship is a basic need in any organization especially there should be a good understanding
between employees and management, because it is the place where both the parties understand
each other. Thus the overall purpose of this study is to understand and identify perception of
employees towards human resource strategies. ADDC being a large company needs to plan and
implement effective human resource strategies so as to empower its employees for more
productive work outcomes.

Sampling

With respect to data collection this research has developed a sample survey questionnaire that
consists 20 questions of which 5 questions are related to personal information of the employees
in the company and 15 questions are related to HR strategies. The first part of the questionnaire
is related to personal information such as gender, nationality, age group, education and monthly
salary and second part contains 15 questions focusing on employee perception towards the HR
strategies. Five level options are given in the questionnaire for giving the information to indicate
(i) Strongly agree, (ii) Agree, (iii) Neutral, (iv) Dis-agree and (v) Strongly disagree. A sample
group of 42 employees have been selected from various designations, genders, races, and
experiences. Based on the above mentioned criterion, questionnaire has been circulated to all the
staff of ADDC employees.

Data Collection

The data required for the study was collected through both primary and secondary sources.
Primary data was collected through a questionnaire with a sample size of 50, of which 42
respondents responded to the survey. These respondents were selected on random basis and
questionnaire was distributed in the organization. Secondary data was collected through published
sources such as books, periodicals, industry association reports; past literature was reviewed, in
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view of the raised aims and objectives. This gave a clear understanding on the employee attitudes
towards human resource strategies, and the various issues related to this percentage method is used
to analyze the responses. Based on percentage of responses to different options interpretation is
done.

Analysis & Interpretation of Data

Analysis and interpretation of data was based on the results of the survey questionnaire.
Questionnaires filled by the employees were collected and the results were analyzed based on the
rating priorities (1-5). Survey responses were entered into SPSS program and frequency of
response and cumulative percentages were drawn out based on which analysis of the results was
written. The information which has been given by the respondents is clearly shown below.

As shown in the table, Most of employees are male. The main reason of high percentage for male
compare it with percentage of Female is the survey questionnaire was distributed in Baniyas
branch (Al Ain). In this branch, most of employees are male because this branch is responsible to
carry out most of field work for ADDC in Baniyas Area while there is a small section for
customer service where there are few female working.

Most of employees are from UAE and Asians countries. As ADDC is one of Abu Dhabi
Emirates Company which Abu Dhabi government is most important shareholder, so it is working
to hire as much as possible of qualified Emirati people. However, because ADDC has changed
from Water and Electricity Directorate to be a company in 1999, so it is also looking to gain high
revenue by the end of each year so it hires Asians because of their high quality of work with low
salary

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Most of employees aged between 21 to 30 & from 41 to 50. Most of Emirati employee age's are
between 21 to 30 because most of them are fresh graduated and post graduated employees.
However, the other group are aged between 41 to 50 because ADDC hires experience people for
effective performance.

Most ADDC employee are post graduates because the main work of ADDC is technical work
"Engineering". However, there are some employees with lower education level because they are
assisting the engineers, such us technicians, electricians and drivers.

Most employee are getting more than 8000 Dhs as ADDC hires experienced employees and also
to encourage them, the company pays them high salary.

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Most employees "agree" that ADDC is following effective recruitment policies. Company
follows several tests in the process of recruitment such as Personality test, Performance test,
Intelligence test and projective test, to make sure that the company hires only the best people
from the market.

Most employees agree that company provides appropriate training and it is a fact that ADDC is
providing several training courses to its employees during the year. Some of these trainings are
in house training. Some of the trainings are organized by special consultants coming from other
countries around the world. From some departments, ADDC is sending selected employees to
have training aborad such as in Germany, England and USA.

As per ADDC HR, each employee should have training as per his job title and job responsibility
to make sure that the training programs are conducted as needed. In addition, ADWEA Academy
is supporting ADDC in organizing the training courses for ADDC employees.
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ADDC has HSEQ Health, Safety, Environment and Quality department which is focusing on
distributed Healthy, Safety and high quality of work with care about Environment. In addition, in
case of any accident, the department investigates and reports incidences and analyzes about the
accident to learn more on the reasons of the accident and shares it with all employees to make
sure that such accidents does not occur again.

It is effective because as per study the number of accidents is decreasing. However, the company
has started a project for connecting all electricity and water pumping stations to connect them
with control center in order to minimize number of operations which includes most dangerous
work.

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Most employees agree. It is identified that after investigation and analysis report, HSEQ
department gives compensation for effected employees and punish the employee who were the
cause of accident especially if the accident takes place because of employee carelessness. In case
of any emergency work, company gives over time as compensation.

Most of employees are happy with their supervisors because most of ADDC supervisors are
caring and helpful with their employee because ADDC HR has an open door policy. Employees
have right to complain against his supervisor in case of any problem between them. At the same
time if the employee complains several times against his supervisor, the HR will transfer both of
them to committee to finalize the issue.

Most of them agreed, because ADDC provides all facilities and tools to help employee to carry
out their work such as new cars (every 4 years the company change old cars and buy new cars),
new offices (every 4 years the company changes the furniture and PC's) and keep update the PC
latest software and solve PC problems by INZAJAT company (an out sourcing company for
ADDC).

165

Most of them agreed, because there are several ways for communication with direct supervisor
via email, mobile and directly "face to face". However, in ADDC portal, the ADDC top
management has displayed their office telephone numbers and their email to let any employee
communicate directly to them.

In each department and section the supervisors are working to keep their staff to work as a team
because there are annual meeting among top management with lower levels of management to
share the annual plan of the company so the supervisors will work to reach the goal for these
plans and they have to work in teams so as to reach goals.

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In order to provide Electricity and Water service all department should work as a team because
without team work the company will never be able to provide its service effectively. However,
the HR department keeps announcing the Mission and Vision of the company so everyone in the
company knows what they have to do to reach the mission and vision.

Most respondents were neural, because this survey mostly covered UAE employees (local). Most
of them are getting their promotion but not on time because in order to get a promotion in
ADDC, it has to get approved from their direct supervisor department manager division
manager director of their directorate HR manager. Sometimes HR manager reject
promotion!. However, some people disagreed because since long time they didnt get their
promotion because HR manager is always rejecting because they already been paid high salary!

Most respondents agreed because ADDC is following Graphic Rating Scale method which
shows employee strengths and weak points based on their performance. However, some dont
agree with this type because they want to move to newest form of appraisal.

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Most respondents disagreed because the salary for retired employees is based on their basic
salary when they were on duty, so they are not satisfied with retirement policy because ADDC
employees basic salary is very low compared with other company, for example some local
engineers are paid 40,000 Dhs per month.

Most respondents were neural while some agreed. respondents were " Neural" because of
promotion, some people ,who join the company before 1999, are qualified with very good
experience but still in low grades while new employee , who join asfter 1998 they are getting
grades as per their experience.

OBSERVATIONS, CONCLUSIONS AND RECOMMENDATIONS

This chapter includes various observations from the analysis part and based on the observations
conclusions have been given for the overall study related to employees perception towards the
HR practices in ADDC. Based on the analysis of results certain recommendations and
suggestions are put forward here.

168

Observations

First considering the personal characteristics of the respondents it is observed that
From the analysis it is observed that majority of the employees belong to the age group of
31-40 years.
Majority of the employees belong to UAE. It is observed that more number of
respondents have completed post graduation, and majority of the employees earned their
monthly salary of more than 8000 pm.
Next considering the employee perception towards various HR strategies it is observed that:
Company is following effective recruitment policies by conducting several tests to make
sure that it is hiring capable employees fit as per the job profile.
Company is providing several training courses which include in-house training and
training from consultants coming from different countries and it is observed that the
company is sending its employees to other places for training. It is seen that majority of
the employees are satisfied with their companys training sessions.
Majority of the employees are neutral with their companys promotion policy. Some of
the employees disagree with the policy and they feel that efficient employees are not
getting benefited with the promotion policy.
Most employees expressed a neutral opinion on the salary they are been paid. Most
employees were accepting the pay which is paid for them. They are neither satisfied nor
dissatisfied with their pay structure.
Most employees expressed that they are happy with their supervisor and their relations
are good in the organization.
Most employees are happy with the communication systems they had with the
management and the supervisors. So it can be said that communication systems in the
company good and effective.
Most employees expressed that organization is implementing effective safety measures
and policies. Organization is taking effective measures to prevent hazard to their
employees.
Most employees were satisfied with the performance appraisal system.
Employees were happy and satisfied with the organizational culture and environment.
Retirement plans and benefits are found to be satisfied. Further some employees felt that
the organization could offer better benefits than currently used

Conclusion

Thus in conclusion it can be said that ADDC is effective in identifying the training needs through
performance appraisal system and further fresh recruitments are done based on the job needs.
Appraisal system is found to be qualitative and but ADDC has to initiate discussion with the
employees to better identify the needs so that the training needs and other aspects could be more
specifically identified. Further identifying the right practices for performance appraisals is also
vital for organizations that foster the organizational success. The more the appraisals and rewards
the more will be the employee commitment. In other words it can be said that ADDC can further
boost their employee performance through revising the current salaries, giving rewards on better
performance, promoting employees who perform their job well etc.
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To conclude, this research has expanded the existing research development in several aspects.
Through the application of multilevel research design, it has enabled researcher to conduct
previous similar studies but in a more logical and comprehensive manner, i.e., the mechanism of
how high-commitment HRM practices influences employees affective commitment. Such result
can assist the practitioners within the organization to acknowledge that through the
implementation of high-commitment HRM practices, this will enhance positive perceptions on
the employees side which could further extended to their favorable attitudes and behaviors.
Therefore, this research provides deep insights of the various human resource strategies of
ADDC and its employees perception towards these strategies.

Recommendations

Based on the analysis and interpretation of data and the observations drawn the following
recommendations and suggestions are put forward for ADDC so that the company can improve
their HR strategies and practices
Most employees are not been rewarded for their performance and most employees are
unaware of the performance appraisal system and for this ADDC has to conduct sessions
on improving performance and how employees could get rewards and promotions on
their better performance.
There is a need to revise and focus on promotion and reward policies
Even though most employees are been paid more than 8000 dhs per month, the pay scale
of the employees should also be revised as most employees are not satisfied with their
current salaries
As most employees are not happy with their benefits like compensation this aspect needs
to be revised and focused.
Further team work and its importance should be explained to employees and should be
encouraged for team work
Finally the retirement policies and benefits should be revised

LIMITATIONS OF THE STUDY

The research conducted has certain limitations. These arise due to the method of sampling used,
the method of data collation used and the source of the data apart from many other things.
Respondents are limited to 42 employees, few employees were not interested in answering all the
questions in the questionnaire, few were not interested in participating in the survey, some
employees took the view of others while answering the questions, so there could be a bias in the
results and finally the sample was very few so the results could change further when compared to
a large sample.

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International Journal of Social Science & Interdisciplinary Research__________________________________ ISSN 2277- 3630

IJSSIR, Vol.2 (1), January (2013)

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