hrm practices and its impact on marketing executives ... - hrm - venkatesh.pdf · hrm practices and...

SAMZODHANA – “Journal of Management Research” Vol 5 Issue 2, October 2015

www.eecmbajournal.in | 101

HRM Practices and its Impact on Marketing Executives’ Performance

in Tiruchirappalli District

Dr. S. Venkatesh,

Assistant Professor, Department of Management Studies,

JJ college of Engineering and Technology, Tiruchirappalli

Mobile: 91-99446 49039

Abstract: Human resource is a vital resource to any organization like any other material

or economic resources. Unlike other factors human resources have the unique

characteristics that there is no limit for utilization of the ability and skill if they are

offered voluntarily. In other words, among the various factors, human resource is the only

resource that has its own strength emotions, attitude, and feeling and beliefs, etc. Thus

management of this factor is not only an important task but also a difficult task. The

quality of output cannot be made to exceed the quantity of material inputs.

The research design adopted for this study is “Convenience sampling”. The

primary data has been collected by the method of “Direct personal investigation”, using a

structured questionnaire consisting 25 questions. The secondary data is collected from the

profile of the company, text books on stress management, journals, and magazines and

from the related websites. Statistical techniques like Percentage analysis, Chi-square

Analysis of variance have been applied.

The present study faced following constraints while conducting survey. The study

was confined only to executives. Time was a constraint. Sometimes it is difficult to get

back the filled up questionnaires from the respondents.

Keywords: Human resource, Marketing executives, Selection, Training, Motivation,

Promotion



1 Introduction

Human Resource Management ("HRM") is a way of management that links

people-related activities to the strategy of a business or organization. HRM is often

referred to as "strategic HRM". It has several goals:

To meet the needs of the business and management (rather than just serve the

interests of executives);

To link human resource strategies / policies to the business goals and objectives;

To find ways for human resources to "add value" to a business;

To help a business gain the commitment of executives to its values, goals and

objectives.

Human Resource Management consists of numerous activities that enhance

employee performance, including Employee selection, Employee promotion, Training

and development and Employee motivation.

The contributions HRM makes in enhancing employee performance are

1. Employing the skills and abilities of the workforce efficiently

2. Providing effective training to executives.

3. Providing good motivation to executives

4. Increasing to the fullest the employee’s job satisfaction and self-

actualization.

Selection: Selection is the process by which an organization chooses from a list of

applicants the person or persons who best meet the selection criteria for the position

available, considering current environmental conditions. It is the search for an optimal

match between the job and the amount of any particular characteristic that an applicant

may possess. When an employee is satisfied with the selection process of his or her

organization, then the performance of the employee improves.

Promotion: Promotion is advancement of an employee to a better job – better in terms of

greater responsibility, more prestige or status, greater skill and especially increased rate



of pay or salary. Organizations promote executives with a view to achieve the following

purposes.

1. To develop competitive spirit among executives

2. To promote employee’s self development

3. To promote interest in training and development

4. To build loyalty and to boost their performance.

Training: Training and personal development is an important method for a business to

improve the performance of executives. The benefits of training to a Business:

The main benefits to a business of a well-trained workforce are:

Better productivity (and, therefore, lower production / operating costs)

Higher quality, More flexibility - training helps executives develop a variety of skills.

Multi-skilling is only possible if the workforce is well trained

Less supervision - lower supervision and management costs if executives can get on

with their jobs. This might also improve motivation - through greater empowerment

More successful recruitment and employee retention - businesses with a good

reputation for training are likely to find it easier to attract good quality staff - and then

keep them

Help in achieving change - businesses with strong training systems and culture find it

easier to implement change programmes.

Motivation: Buchanan defines motivation as: "Motivation is a decision-making process,

through which the individual chooses the desired outcomes and sets in motion the

behavior appropriate to them".

2 Review of Literature

Carl F. Fey and Ingmar Bjorkman (2001) investigate the relationship between human

resource management and the performance of 101 foreign – owned subsidiaries in

Russia. The study’s results provide support for the assertion that investments in HRM

practices can substantially assist a firm in improving performance. Further, different

HRM practices for managerial and non-managerial executives are found to be

significantly related to firm performance. Only limited support, however, is obtained for



the hypothesized relationship between efforts at aligning HRM practices with firm

strategy and subsidiary performance.

Teseema & Soeters (2006) investigates the relationship between promotion practices and

perceived employee performance in financially successful companies like HP (Hewlett –

Packard). However HR outcomes were used as mediating variable. HR practices

including ‘vacancies filled from within’ have been found positively correlated with work

satisfaction and life satisfaction with values 0.24 and 0.15 respectively. Synergetic

system of HR practices lead to higher performance of an organization.

Huselid (1995) used eleven HRM practices in his study which are personnel selection,

performance appraisal, incentive compensation, job design, grievance procedures,

information sharing, attitude assessment, labor management participation, recruitment

efforts, employee training and promotion criteria. This study examines the relationship

between three HR practices, i.e., compensation, promotion and performance evaluation

and perceived employee performance. Above three practices, which have a relative direct

impact on financial earnings and social status of an individual, may be considered the

major determinants of employee’s performance. This is the reason these practices have

been selected for this study.

3 Research Methodology

The research problem is to analyze the effectiveness of HRM practices and its impact” on

marketing executives performance in Tiruchirappalli. Descriptive research design is used

for the study. Non-probability sampling, namely, convenience sampling is used to meet

the specific requirement of a special nature. The sample size of this study is 100. The

various tools used for data analysis are Percentage analysis and Chi-square method

4 Objectives of the Study

Primary Objective:

To analyze the various HRM practices and its impact on marketing executives

performance in Tiruchirappalli

Secondary Objectives:



To know whether the selection and promotion procedures satisfies the marketing

executives.

To analyze the effectiveness of training provided by the organization in enhancing

marketing executives performance.

To identify whether the organization uses motivation as a tool in improving the

performance of marketing executives.

To suggest ways to further improve the HRM practices for increased marketing

executives’ performance.

5 Limitations of the study:

The cost and time constraints was a limiting factor in this research work

The entire population could not be covered due to time factor

Some of the respondents were less interested in answering the questionnaire, as they

felt that is was an interruption to their regular work.

6 Data Analysis and Interpretation

6.1 Respondent Profile

Table 1: Respondent Profile

Respondent Profile Percentage

Age (in years) Below 35 28%

35 – 45 63%

Above 45 9%

Experience (in years) Below 5 23%

5 – 10 55%

Above 10 22%

Qualification I.T.I 27%

Diploma 42%

Degree 23%

Others 8%

Source: Primary data



From the above table, it is clear that 28% of the respondents from the age group below 35

years, 63% of the respondents from the age group of 35 – 45 years and 9% of the

respondents from above 45 years. 55% of the respondents from the experience of 5 to 10

years, 23% of the respondents from the experience below 5 years and 22% of the

respondents from the experience of above 5 years. 42% of the respondents are educated

up to diploma, 27% of the respondents are educated up to I.T.I, and 23% of the

respondents are educated up to degree courses and 8% of the respondents from other

courses.

6.2 Satisfaction Level:

Table 2: Satisfaction Level of the Respondents

Factors Percentage

Selection Process Followed By

the Organization

Strongly agree 41%

Agree 37%

Neutral 17%

Disagree 3%

Strongly disagree 2%

Promotions After Proper

Performance Assessment

Strongly agree 25%

Agree 59%

Neutral 10%

Disagree 3%

Strongly disagree 3%

Source: Primary data

41% of the respondents are strongly agreed with the selection process followed by the

organization satisfied the executives and only 2% of the respondents have strongly

disagreed with the selection process followed by the organization satisfies the executives.

6.3 Chi – Square Analysis

i. Association between Age and merit based Selection Process

Null Hypothesis: (Ho): There is no significant association between the age of the

executives and the merit based selection process for various vacancies.



Alternative Hypothesis: (H1): There is a significance association between the age of the

executives and the merit based selection process for various vacancies.

Table 3: Association Between Age and merit based Selection Process

Age and the merit based

selection process

1 2 3 4 5 Total

Below 35 years 13 12 2 1 0 28

(8.4) (16.8) (1.4) (0.8) (0.6)

35 – 45 years 14 46 1 1 1 63

(18.9) (37.8) (3.2) (1.9) (1.3)

Above 45 years 3 2 2 1 1 9

(2.7) (5.4) (0.5) (0.3) (0.2)

Total 30 60 5 3 2 100

Pearson’s X2 statistic 22.95

DF 8

P 0.0034

Source: Primary Data

Calculated value: 22.95; Degree of freedom = 8; Tabulated value: 21.03. So, the null

hypothesis is rejected and the alternative hypothesis accepted, i.e., there is a significance

association between the age of the executives and the merit based selection process for

various vacancies.

ii. Association between Experience and the Promotions on Regular Basis

Null Hypothesis: (Ho): There is no significance association between experience of the

executives and the promotions are carried on regular basis.

Alternative Hypothesis: (H1): There is a significance association between the

experience of the executives and the promotions are carried on regular basis.

Table 4: Association between Experience and the Promotions on Regular Basis



Experience and the

Promotions are carried on

regular basis

1 2 3 4 5 Total

Below 5 years 9 12 1 1 0 23

(5.3) (13.6) (2.8) (0.7) (0.7)

5 – 10 years 13 29 8 2 3 55

(12.7) (32.5) (6.6) (1.7) (1.7)

Above 10 years 1 18 3 0 0 22

(5.1) (13.0) (2.6) (0.7) (0.7)

Total 23 59 12 3 3 100

Pearson’s X2 statistic 13.16

DF 8

P 0.1066

Source: (Primary Data)

Calculated value: 13.16; Degree of freedom = 8; Tabulated value: 21.03. Therefore, we

accept the null hypothesis and reject the alternative hypothesis, i.e., there is no

significance association between the experience of the executives and the promotions are

carried on regular basis.

7 Findings of the Study

63% of the executives are from the age group of 35 – 45 years.

55% of the executives have the experience of 5 – 10 years.

42% of the executives have finished their diploma course.

41% of the executives are strongly agreed with the selection process followed by

the organization is satisfactory.

59% of the executives are strongly agreed with the promotions are provided only

after proper performance assessment.

46% of the executives are agreed with the benefits provided by the organization

are highly satisfactory.



34% of the executives are strongly agreed with the motivation which makes the

executives to perform well.

There is a significance association between the age of the executives and the merit

based selection process for various vacancies.

There is no significance association between the experience of the executives and

the promotions are carried on regular basis.

There is a significance association between the experience of the executives and

effectiveness of training to increase the competence level of the new and

experienced executives.

There is no significance association between the age of the executives and the

executives’ need based training.

8 Suggestions

The company has to provide the selection process in an effective manner, because

some of the executives are not satisfied with this process. So the higher authority

has to get the feed back from the executives regarding the selection process, and

then they should conduct the selection process accordingly.

The company has to provide the promotion on regular basis. Some of the

executives are not satisfied with this process.

The promotion should be provided to the executives on the basis of their

experience also

The company has to conduct the training programme after analyzing the

executives needs

The company has to provide other allowances like compensation, grievance,

pension etc.,

9 Conclusions

The purpose of the selection is to make a good organization by selecting efficient

executives and the training will make the executives to get more knowledge & skills.

The employee training is the process; there by people learn the skills, knowledge,

attitude, and behaviors needed in order to perform their job effectively. “HRM Practices



and Its Impact on Marketing Executives in Tiruchirappalli” demonstrates the various

HRM practices and gives the solution to the company.

From this study it is suggested that the company has to conduct the training

programme after analyzing the executive’s needs. They have to provide promotion on a

regular basis after considering their experience. The company has to concentrate on all

the HR activities like selection & promotion, training, motivation etc., and the company

can also implement other HR practices like compensation, grievance, pension, etc.

References

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Personnel Management, Vol.2, pp.333-342.

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3. Armstrong, M. (2006), A Handbook of Human Resource Management Practice,

10th edition, London

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Cliffs, NJ.

6. Dessler, G. (1999), ‘How to Earn Your Employees’ Commitment’, Academy of

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7. Huselid, M. (1995), ‘The Impact of Human Resource Management Practices on

Turnover, Productivity, and Corporate Financial Performance’, Academy of

Management Journal, Vol.38, No.3, pp.635-672.

8. Huselid, M.A. & Becker, B.E. (1994), ‘The strategic impact of human resources:

Results from a panel study’, Working paper, Rutgers University, New Brunswick,

NJ.

9. Huselid, M.A., Jackson, S.E., & Schuler, R.S. (1997), ‘Technical and Strategic

Human Resource Management Effectiveness as Determinants of Firm

Performance’, Academy of Management Journal, Vol.40, pp.171-188.

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