Impact of the Human Resource Management on the Organizational Performance.

A Study on Marriott
International

Background(500)

Over the last decade significant steps towards identifying the HRM-organisational performance have been
forwarded. It is an important topic in the field of management, industrial relations, and industrial and
organisational psychology. There is a belief that individual and employee performance has effect on firm
outcomes has been prevalent among academics and practitioners for many years. HRM practices
influence employee skill through the acquisition and development of a organizations human capital.
Requirement procedure that provide a large number of highly qualified applicants, twain with a valid and
reliable selection authority, will have major influence over the quality and type of skill new employees
possess. Providing various training experiences, such as basic skills training, on-the-job experience,
coaching, mentoring can further impact employees development.

1.1 Statement of the problem

The future of the organisation depends on how we attract, retain, and develop the skills and capabilities of
the workforce. This hospitality industry has always been driven by the industrious, expertism and the
talent of many others. The challenge is much bigger as we look forward into the 21 st century.

Performance is the number one problem facing business today. It is critical for employers to recognize
what improves the performance, what motivate employees in order to improve productivity and ensure
the success of the organisation. Although, it was approved that HRM is positively related to
organisational performance there is colossal need for further evidence to support the HRM-performance
relationship from different contexts.

Organisation even the established one needs to know the contribution of different factors and the intensity
of their impact on organisational performance that leads towards the development and prosperity. As
Benett(1983) has written importing approach from one institution to another may not work. For example,
the Japanese HRM approach may fail because of cultural attitudes and value are different. There are large
number of employees in public organisation and most of them are unsure about their satisfaction towards
the HRM practices and with the job. And its difficult to get published researches that addressed the effect
of HRM practices on performance of organisation.

1.2 Rationale of the Study

It is becoming more and more difficult to see the world around us in a uni-dimensional way and to use
only one single criteria when judging what we see. Coming to this aspect it is significant that the
managers have to analyze each situation properly and wisely to accomplish multiple goals and objectives
in the best interest of the organisation. Old method has been replaced by modern science and technology.
The development of scientific disciplines such as operations research, management science in

combination with the use of modern technology, are nothing but aids in assisting people in making the
best decision for a given situation.
It is observed that while making dynamic decisions, decisions maker look for some analytical and rational
tools for analyzing and processing the relevant data which may be a set of alternatives based upon certain
set of criterias.
The following areas involves critical decision making process with the multiple criterias such as HR
recruitment and selection, training and development of employess, manpower planning, organisational
change and development, conflict management etc. On all the above issues, the organisation are greatly
involved in decision making process.

1.3 Research Objectives

The main objectives of this research work on The impact of Human Resource Management on the
Organisational performance: Mariott International are:
1. To study the outcomes of Human Resource practices of the organisation.
2. To study the impact of HRM on employees retention, employee satisfaction and employee
commitment.
3. To analyze the impact of Human Resource Management practice on performance of the
organisation.

1.4 Research Question

The study will search for the answer of the following questions.
1. What are the outcomes of HRM practices of the organisation?
2. How do HRM practices impact on employee retention, employee satisfaction and employee
commitment?
3. How do HRM practices impact on performance of the organisation?

Review of Literature
HRM is the process of creating, evaluating and applying guidelines, method and programs relating to the
recruitment, motivating, retaining and managing people in an organisation. HRM includes various
activities such as strategic HRM, human resource planning, human capital management, training and
development, reward management, performance appraisal, employee well-being as well as provision of
employee services. Effective HRM practices directly relate towards the company performance by
contributing to customer satisfaction creating a favorable reputation of the organisation in the market.
There is no universal agreement on the meaning of HRM, many definition have been offered. Armstrong
(1995) as a strategic and coherent approach to the management of organizations most valued assets-the
employees who individually and collectively contribute to the achievement of the objectives of the
business. Storey (1995) considered HRM as a distinctive approach to employment management which

seek to obtain competitive advantage through the deployment of a highly committed and skilled
workforce, using an array of techniques. While others have defined HRM as being concerned with the
need to achieve congruency among the various HRM policies and practices so that they become mutually
supportive, rather than conflicting (Milliman, Von Glinow & Nathan, 1991; Schuler & Jackson, 1987).
Employee create vital sources of competitive advantage for companies (Barney, 1991; P feffer 1994).
Thats why it is important that a firm adopts HRM practices that make best use of its employees. This
trend has led to increased interest in the impact of HRM on organisational performance. Number of
studies have found there is positive relationship between different HRM practice measure and
organisational performance.

Organisational Performance
The actual result of an organisation as measured against its intended goal and objective comprise of
Organisational performance. According to Richard et al. (2009) organizational performance includes three
specific areas of outcomes: (a) financial performance (profits, return on investment, return on assets, etc.);
(b) product market performance (market share, sales, etc.); & finally (c) optimized shareholder return
(economic value added, total shareholder return, etc.).
Relationship between HRM practice and Organisational performance
Organisational performance depends on the performance of its employees. Successful organisations are
realizing that there are number of factors that contribute to performance but human resource is clearly the
most critical (Mello, 2005). Effective HR practices enhance the performance of organization and lead to
higher profits. Datta et al. (2003) found that best use of HR practices reveals a stronger association with
efficiency of firm. Human resource management (HRM) practices have significant association with
accounting profits of organisation (Delery and Doty, 1996). Many studies on HRM as a system revealed
positive relationship with company performance. Youndt, Snell, Dean and Lepak (1996) examined the
impact of HRM strategy on companys performance of 512 manufacturing plants. Their findings revealed
a moderate relationship between plant performance HR systems. Additionally Snell, Wright & Dyer
(2005) declared that firm competitiveness/ efficiency can be enhanced by a high performance work
system, & that it has a positive relationship with organizational effectiveness.
For this research study, following variables were selected and briefly discussed below
General Climate
It is an important variable for HRM practices if it is implemented effectively. The general climate of an
organization not only consists of top management but good personnel policy and positive attitude towards
development.
OCTAPACE culture

A developmental climate is required for the development of human resource characterized by the
occurrence of openness, confrontation, trust, authenticity, proactivity, proactivity, autonomy,
collaboration, and experimenting. Openness and frankness refers to the environment where personnel feel
free to discuss their idea, activities and feeling with one another. Confrontation is solving organisational
problem rather than hiding it for fear of getting hurt. Trust means believing people what they say and
taking at their face value. Autonomy is allowing freedom to let people work with responsibility.
Authenticity is an aptness on part of employees to do what people say. Collaboration is take the
interdependence to be helpful and useful to one another and a teamwork. Experimentation reflects an
environment where the psyche of trying out original ideas with the view to bring creation, innovation and
improvement in the existing system.
Selection Process
Selection process involves series of complicated decision relating to the selection of person, choice of
methods to use, and the choice of relevant information. Selection process is the mutual process whereby
the organisation decides whether to offer job or not and the candidate decide whether to accept the job or
not (Stoner, Freeman and Gilbert, 2000). Selection is the process of choosing from the pool of capable
employees available those jobs in terms of more qualified job and organisational requirements.
Job Definition
The combination of job description and job specification is job definition. It outlines responsibilities,
working condition and expected skills of an individual worker performing that job. (Qureshi. M. Tahir,
2006)
Career Planning
Career planning is the forward looking employment policies of an organisation which consist of the
account of career of individual executive personeel involved in various task, particularly critical task.
(Michael, 1993). The main objective of career planning program is to make each of the years count and to
provide every manager with sophisticated learining experience so that he/she has satisfying and
productive satisfying career. (Strauss and Sayles, 1980)
Employees Participation
Another effective mechanism for all round growth of personeel and organisation is Employees
participation but much has been achieved in this direction.
Performance Appraisal
It is th exercise carried out to evaluate the contribution of all the staff and executives made towards the
all-round growth of the organisation. In the present decade performance appraisal has attracted a lot of
attention HRM professionals. Levin (1986) in his studies identified some use of performance appraisal
like determining of employee salary, employee training wants, feedback, assessment of employee merit
appraisal and suggestion of employees past performance. Thang (2004) in his study concluded that how
well a suitable HRM related decision is made will judge how well personnel will perform their jobs.
Training

Planned program designed to enhance performance and to bring about vital changes in knowledge, skills
and social behavior of an personnel for performing a particular job. Development and Training is a very
prominent feature of Human Resource Management (Vlachos, 2008)

Compensation
Compensation is recognized as the merit of the workers and it is broadly linked with th objectives of the
organisation. (Huselid, 1995). It refers to all payment or all monetary compensation to reward the workforce.
2

Research Methodology(1500)

In this chapter the research methodology used in the study is described. The geographical place where the
research was conducted, the research design, Research philosophy, Research approach, method
implemented, data collection procedure and the population and sample are described. The instrument used
to collect the data, including methods implemented to maintain reliability and validity of the data are
described.

2.1 Research Philosophy

Research philosophy relates to the development of knowledge and contains important assumptions about
the way in which people view the world. Research philosophy need not to be better than another. Instead,
research philosophy we adopt should depend on the research question we seek to answer. There are four
different philosophies; positivism, realism, pragmatism and interpretivism. In pragmatism philosophy the
researcher can apply both quantitative and qualitative methods. If we adopt a positivistic philosophy we
will work with an observable social reality and product of such work can be law-like generalization. In
philosophy of realism, the method chosen must have some connection to the subject which means either
quantitative or qualitative method.
This research will adopt interpretivistic research philosophy. This philosophy is appropriate in the field of
HRM. The result of this research cannot be generalized because the actors included in this research have
different characteristics and each of the circumstance is unique. We conduct investigations by using
quantitative research method.

2.2 Research approach

There are two main research approaches: deduction and induction. The deductive research approach
includes the development of an idea, or hypothesis from existing theory which can then be tested through
the collection of data. There are five process in deductive approach:
1.
2.
3.
4.
5.

Deducting a hypothesis from theory

Expressing how the variables are to be measured.
Testing the hypothesis
Examining the outcome
Modifying the theory if necessary.

Inductive approach begins rather opposite. Inductive approach is frequently link to interpretism and
qualitative studies. Firstly data is collected from participants and analyzed. The next step is to develop a
theory as a result of the analysis.
This study used certain research so that the above objectives will be properly addressed to and thereby
generates an appropriate proposition and identify major aspects that contribute towards the satisfaction
with the prevalent HR practices of the sample study organizations.
2.3 Research Design
The logic or master plan of a research that cast light on how the study is to be conducted is known as
Research design. It is similar to architectural outline. According to Mouton (1996, p. 175) the research
design serves to plan, structure and execute the research to maximize the validity of the finding.
We intends to apply descriptive research design in the study of the impact of the HRM on organisational
performances of the organisation. Various research about the impact of HRM on organisational
performance has been carried out by many researchers in the past and we are not trying to explore new
ideas from this research work rather we aimed at testing the relevant theories and the literature that will
assists for better explaining about about the research contents throughout the research work. There are
three ways to do explanatory research project namely,
a) Observational: method of viewing and recording the participants
b) Case study: defined as a detailed study of an individual or group of individual
c) Survey: defined as a concise interview with an individual about an specific topic

2.4 Research Methods

All question may be approached either quantitatively or qualitatively. It depends on our chief goal. Out of
two different research method, this research work used quantitative research method and with the
selection of quantitative method we conducted survey for the collection of the primary data and
information in the research study. Survey technique is used instead of conduction interviews for the data
collection which help in collection wide range of information.

2.5 Data Collection

The process of gathering and measuring information on a systematic fashion that helps to answer stated
research question, test hypothesis and analyze outcomes is known as data collection. Data collection is a
vital aspect of any type of research study. Inaccurately collected data can affect the result of a study and
ultimately lead to a wrong result.
The objective of the research is study the impact of HRM on organisational performance so we conduct
both primary and secondary collection method to make the research finding that can help in answer th
purposed research question in the study.
Primary Data Collection

Primary data is collected through sample process. In this research we intend to analyze the impact of
HRM practice on the employee retention, satisfaction and commitment of the Mariott International so we
conducted the survey among (.) employees of the Mariott International who will be respondents of the
research study. Here conducting survey seem much more effective compare to interview method as it
enable the wide range of interview which helped in understanding the Human Resource Management
impact on employee retention, commitment and satisfaction through the employees perspectives. Hence,
primary data in this research was collected by conducting survey.
Secondary Data Collection
Secondary data is collected by someone other than the user. Secondary data was collected by reviewing
similar literature and the pre-existing theories that are applicable to be used in this research study.
Journals, Research Paper, articles and other publication about the impact of HRM on organisational
performance are used as the source of secondary data.

2.6 Population and Sampling

Population and sampling is one of the most important methodology in research study.
A population is a collection of events which we want to make a inferences. Therefore it is not always
possible and convenient to examine every member of an entire population. For example, it is impractical
to count the bruises on all the apples picked at an orchard.
Sample is a part of the population. It consists of one or more observation from the population. For
example, to count the bruises on a set of apples taken from that population. This subset is called sample.
We took the sample of () respondents in this research who will be from the employees group of the
Mariott International company where we conducted simple random sampling as this technique is
unbiased.

Data Analysis

The process of systematically applying statistical and logical tool to describe, illustrate and evaluate data
is known as data analysis.
In order to get on the extent to which managers and subordinate are apprehensive with the mentioned
objectives of this study, the respondents were provided with the well-structured questionnaire consists of (
) statements pertaining to HRM practices. The questionnaire is the five point scale which varies from 1
to 5 as: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4= Agree and 5= Strongly Agree. To get specific
idea about HRM practices in the hospitality industry it is important to calculate the descriptive statistics
from the data collected from the respondents. Tabel (1) consists of descriptive statistical information of
managers and subordinates of all statements. Table (1) also depicts that the perception of managers in the
Mariott International towards various components of HRM. The table depicts the perception of
subordinates of Mariott International towards the various components of HRM.

Ethics, Validity and Reliability

Simply, validity is the extent to which a test measures what it is supposed to measure. The question of
validity is raised in the context of three points, the form of the test, the purpose of the test and the
population for whom it is intended. This Research work intends to measure the impact of HRM practices
on organisation performance of the hospitality industry where we used both primary and secondary data.
To validate the secondary data collected primarily focused on operational definition of different variables
used in the Research and measures employed to collect those data. Data collection strategy and response
rate of the study is also high.
Similarly, different views and opinions regarding the collection of primary data for this research are
meticulously collected in order to add more reliability and validity to the work.
In addition to validity and reliability, various ethical issues relating to the Research is also equally
important. Different ethical issues that are followed in this research are presented below:
-

Participants agree to take part in a study and all the participants knew what the aim of the study is
Protected the identity of participants by not revealing names and other details
Participants are not deceived about the aim of the research.
During the survey no unnecessary distress and embarrassment to the participants is caused.

Project Planning
While preparing research study, careful planning of project assists for completing the research
work systematically. The research is aimed to be carried out in () weeks in the well-organized
manner.
5.1 Gantt Chart

Weeks 1
Task performed
Finalization of topic
Introduction
Review of Literature
Literature review due
Collection
of
information
Analysis
of
information
Conclusion
and
Recommendation
Reporting
and
Submission
Correction
of

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12

13

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Final
Business
Research thesis Due