Abstract
The main aim set out for the study was to examine the influence of effective human resource management practices on employee performance at the Social Security and National Insurance Trust (SSNIT). The study employed qualitative research approach using interviews as its main research instrument for data collection. The sample size for the study was thirty (30) with respondents drawn from various departments such as human resource, operations and general administration. The study found out that, the SSNIT has in place human resource management practices in recognition to key areas like training and development, staff welfare, compensation and benefits, recruitment and selection, and human resource planning. These practices have been effective in developing the skills and abilities of employees as well as aiding in the recruitment of qualified applicants. It also motivates and creates a congenial environment for outmost performances at work. The study again established that human resource management practices at SSNIT influences the performance of individual employees through the acquisition of further skills and knowledge, motivation, provision of employee welfare, compensation and benefit schemes which grant employees the impetus to perform exceptionally at the organizational level. The study further established that, the presence of effective human resource practices has resulted in the improved performance and development of the organization particularly in the areas of customer size, goodwill and partnership, productivity, creativity and innovation.
The study recommends that management takes additional steps to organize regular training programmes for employees. Again, training and development programs should cover all employees with regard to areas of performance.
CHAPTER ONE
BACKGROUND TO THE STUDY
Introduction
The first chapter of this long essay discusses the background to the study, problem statement, the goal and objectives of the research work, research questions, significance of the study, and organization of the research work.
Background to the study
The attainment of organizational goals is predicated on the extent of organizational resources and their effective utilization. One such indispensable organizational resource towards achieving organizational objectives and goals is the human resource. This is because human resource is regarded as the “Achille heels” of organizations amongst the other resources that helps in achieving organizational goals (McDermott 2008, p. 49-66). In an attempt to realize the importance and contribution of the human resource base to organizational performance, various mechanisms, policies, and practices are implemented in areas of recruitment and selection, training and development, reward and compensation management and human resource planning (Walker, 2001). Such policies are regarded as the cornerstone to the effective and efficient performance of employees in organizations (Armstrong, 2008).
Nzuve (2007) indicated that good human resource management practices and policies provide the congenial atmosphere for enhancing employee productivity which relatively translates into the attainment of organizational goals. Studies have shown that, when organizations implement good human resource management policies, they are better positioned to retain their talented
employees whilst attracting the best employees from the pool of labour in the society (Okumbe, 2011; Nyambegera, 2005). Similarly, Smith (2014) and Petrovsky (2009) submitted that the importance of human resource policies requires any organization to implement good human resource management policies. With this, the presence of good human resource management policies in organizations imply that employees are better positioned to undertake various task, both contextual and task performances towards the attainment of broad organizational goals. This is so as employees, through various human resource policies can develop their skills and knowledge whilst developing commitment to duty through practices like welfare schemes in place.
The concept of human resource management (HRM) refers to the set of policies, programs and practices designed to ensure the welfare of employees whilst attaining maximum performance and productivity towards the realization of organizational goals (Delery & Doty, 2004). By this, HRM policies entail specific sets of practices and programs that are designed to attract, develop, motivate and retain employees to ensure effective functioning and survival of the organization. This is particularly the case, as organizations cannot thrive without human resources with its associated policies to aid in the development and achievement of organizational goal.
Evidence on human resource management suggests that, human resource practices at the organizational settings have a positive relationship with employee performance through motivation and compensation, training and development, employee welfare schemes, and staffing (Armstrong, 2009; Marchington & Wilkinson, 2006) and has also the propensity to impact the rate of employee turnover and absenteeism. Again, human resource management practices improve quality of work as well as impact the performance of the employee (Youndt, 2009; Arthur, 2005). This result from the fact that, such practices in various forms create the
necessary environment for employees to learn on the job whilst developing a sense of belongingness.
For instance, studies on HR practices and employee performances indicate that HR practices help employee performance by shaping their behaviors and attitudes (Amos, 2005; Huselid, 2005). This creates organizations that are more intelligent and flexible than their competitors through the use of policies and practices that focus on hiring, developing talented staff and synergizing their contribution within the resource bundle of the organization (Armstrong, 2006). Moreover, good HR practices promote employee commitment and the trustworthiness of management since such policies and practices communicate largely to the individual employee (Amos, 2005).
Following the significant contribution of organizations̛ HR practices to performance and productivity as espoused above, both public and private organizations around the world, have instituted human resources practices, and the Social Security and National Insurance Trust
(Known hereafter as SSNIT) is no exception. The motivation of this research is to investigate how these human resource practices at SSNIT contribute to organizational performance.
Problem statement
For the purpose of attaining efficiency, effectiveness and competitive advantage, organizations implement reforms in relation to human resources. In the case of Ghanaian public and private organizations in particular, most human resource policies and practices have concentrated on areas like training and development, recruitment and selection, human resource planning, reward system, and staff welfare (Wright & McMahan, 2012; Soliman & Spooner, 2010; Armstrong, 2008). The aim of such HR policies is to contribute to the attainment of organizational goals by attracting and maintaining the right caliber of talent, whilst organizing training and development
programs for the continuous advancement of the skill and career of employees (Armstrong, 2009).
As a result, organizations have established human resource management departments to oversee the performance, development and welfare of employees (Cole, 2011; Bratton, 2008). The human resources departments are charged with the responsibility of ensuring the development and implementation of HR related policies and programs for their respective organizations (Bratton, 2008). Generally, such human resource departments are obliged to develop polices for the efficient performance of the individual staff (Soliman & Spooner, 2010).
