Human Resource Proposal
Human Resource Proposal
Human Resource Proposal
BY
BEINABAABO AKILEO
17B/BBA/027/UMC
2019
DECLARATION
I BEINABAABO AKILEO declare that the work contained in this research proposal is
my original work and has never been submitted to any other university or institution for the
Signature…………………………………… Date……………………………………………
BEINABAABO AKILEO
APPROVAL
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This research proposal on the relationship between human resource management practices
RESEARCH SUPERVISOR
Signature………………………………………..
Date…………………..…………………………
Dedication
I dedicate this report to my family most especially my guardians. For all the support you have given
me, I pray that the almighty God may bless you forever.
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ACKNOWLEDGEMENT
To my friends and relatives, may the lord bless you for the support. My supervisor and
lecturers may the good lord give you all your heart desires.
Thank you
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LIST OF ABBREVIATIONS
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CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter of the study will cover the background of the study, statement of the problem,
general objective, specific objectives, and research questions, scope of the study specifically
geographical scope, time scope and subject scope, significance of the study and definition of
key terms
One of the main themes in the field of business strategy concerns the competitiveness and
determinants of organizational performance (GHEMAWAT, 2002). Human resources
management (HRM) is concerned with the effective performance of employee to enable them
achieve organizational goals and objectives as well as employee job satisfaction whether
profit inclined or not. It is required that employees behave in certain positive ways in order to
meet pre-determined target work behavior which must be mentioned and constantly accessed
so that it does not degenerate into pit falls in organizational goals and targets. Human
resources management has a direct personal impact on employees, in shaping for example,
the nature of work, pays and careers prospects. The reputation that an organization develops
as a good employer helps to attract and to retain quality employees (David and Andrew,
2004).
The history of Human Resource Management (HRM) begins around the end of the 19th
century, when welfare officers came into being. During the 1920s, jobs with the titles of
‘Labour Manager’ or ‘Employment Manager’ were introduced to the engineering industry
and other industries where there were large factories. The role involved handling absence,
recruitment, dismissal and queries over bonuses. During the 1930s, the economy was
beginning to pick up. Big corporations in these newer sectors saw value in improving
employee benefits as a way of recruiting, retaining and motivating employees. After world
war two, business and other kinds of development have continued to stabilize and this has
continuously seen the development of human resource management in the world from
Europe, to Asia and all other continents of the world (Consensushr, 2015).
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.
Human resource management (HRM), as a key player in the creation and development of a
highly productive workforce, lies in the center of the debate on the competitiveness of
businesses (LEPAK et al., 2006). Ruwan (2007) and Lee and Lee (2007) empirically
evaluated six human resource (HR) practices (realistic job, information, job analysis, work
family balance, career development, compensation and supervisor support) and their likely
impact on the Marketing Executive Turnover. A long the same line, Abang, May-Chiun and
Maw (2009) give two components of human resource (HR) practices namely, training and
information technology have direct impact on organizational performance. In addition, Zaini,
Nilufar and Syed (2009) four HRM practices showed that training and development, team
work, HR planning, and performance appraisal have positive and significant influence on
business performance. Altarawmneh and al-Kilani (2010) examine the impact of human
resource management (HRM).
Burchman (2005) believes that business firms are concerned with performance in the pursuit
of their goals. The performance of the firm as a whole determines its survival. Drunker
(2007), defines performance as the balance between all factors of production that will give
the greatest output for the smallest effort. Performance is a measure of the results achieved.
Performance efficiency is the ratio between effort extended and results achieved.
Performance assumes an actor of some kind but the actor could be an individual person or a
group of people acting in concert. The performance platform is the infrastructure or devices
used in the performance act (Malcom, S. 2005).
A number of factors are indicators of organizational performance and these vary from
organization to organization due to a number of factors at a given time like the location of the
firm, size of the firm, government regulations among others. (Joshua, 2014)
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1.2 Statement of the problem
Over the years, organizational performance is still an issue that has left many scholars
scratching their heads. This is because organizational performance differs from organization
to organization (Armstrong, 2009). A number of factors are indicators of organizational
performance and these vary from organization to organization due to factors at a given time
like the location of the firm, size of the firm, government regulations among others (Joshua
2014). One aspect that cannot easily be imitated by the competitors is human resources
(HRs), and consequently, effective management of these resources can offer competitive
advantage to service organizations (Altinay & Altinay, 2006; Arasli et al., 2006; Lashley,
1998; Schneider, 1994). For the last one decade, researchers have emphasized the effect of
human resource management (HRM) practices on organizational performance (Kotey, 2005;
Mazzarol, 2003; McElwee & Warren, 2000).
The general objective of the study is to examine the relationship between human resource
management practices and performance in small scale enterprises in Wakiso district Uganda
among the food and beverage enterprises.
To examine how recruitment and selection practices affect performance in small scale
enterprises in Wakiso district
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To assess the effects of performance appraisal on the performance of small scale enterprises in
Wakiso district
To evaluate the influence of compensation plan on the performance of small-scale enterprises in
Wakiso district
i. How does recruitment and selection practices affect performance in small scale enterprises in
Wakiso district
The research will cover the subject scope, the geographical scope and the time scope.
The study will mainly focus on examining the relationship between human resource
management practices and performance in small scale enterprises in wakiso district Uganda
among the food and beverage enterprises. However, the study will be guided by other three
specific objectives that is: examining how recruitment and selection practices affect
performance in small scale enterprises in wakiso district, assessing the effects of performance
appraisal on performance of small scale enterprises in Wakiso district and finally, evaluating
the influence of compensation plan on performance of small scale enterprises in Wakiso
district
Geographically the study will be carried out in Wakiso district specifically Nansana
Municipality. Nansana is a town in the Central Region of Uganda located in the Wakiso
District and is one of the five municipalities in the district. Wakiso District is a district in the
Central Region of Uganda that partly encircles Kampala, Uganda's capital city. Nansana is
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one of the fastest growing towns in the country with a wide range of small-scale businesses
and this makes it ideal for the research.
The study will cover a period of two months between October 2019 and November 2019 and
the time coverage for secondary data will be dated fifteen years back from the year in which
the research is carried out.
Conceptual Framework
Figure one: conceptual frame work linking human resource practices, intermediate factors and
organizational performance
human
Human resource Organizational
practices (independent performance
variable)
Profitability
Recruiting Sales growth
Training Employee turnover
Renumeration rate
Health and safety Output levels
of employees
Selection
Compensation
promotion Extraneous factors
Labour organisations
Political environment
Economic environment
Legal factors
Technological changes
Source: International Journal of Humanities and Social Science Vol. 2 No. 10 [Special Issue –
May 2012]
The above frame work indicates that the independent variable is human resource practices
that include compensation, promotion, selection and training which determine the
organizational performance. According to the frame work, organizational performance is
indicated through profitability and sales growth level of the organization. Extraneous factors
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are the factors that may have impact on the human resource practices of an organisation and
according to the organizational frame work they include, labour organisations, economic
factors, political environment, legal factors, technological changes, social and religious
affiliations.
The study findings may be used as a basis for further research and investigations in form of
literature review by other scholars and various people from various parts of the country who
may have interest in a similar topic or similar objectives.
Business owners, managers, programmers and other stakeholders may use the research to
improve on the various human resource practices for their organization development in form
of improving organizational performance.
The research will help the researcher to practically understand the dynamics of research as
theoretically learnt in class room. This will; improve the research skills of the researcher and
make him a better researcher in future
Recruitment.
Selection: Selection is the process of evaluating those who have been searched for and
obtained through recruitment with a view to deciding whether they can be employed or not. It
is also the process of choosing the individual or individuals who best meet the job-related
criteria.
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Training: training is the process that involves developing skills and learning concepts, rules
or attitudes in order to increase effectiveness on a particular job. Training can also be the
formal and systematic modification of behavior through learning which occurs as a result of
education, instruction, development and planned experience.
Promotion: Promotion refers to a shift from a level of lesser responsibilities to that of higher
responsibilities, oftentimes with increase in pay.
Health and Safety at Work: Health and safety policies and programs are concerned with
protecting employees and other people affected by what the company produces and does;
against the hazards arising from employment or their links with the company.
Employment: Employment is a relationship between two parties, usually based on a contract
where work is paid for, where one party, which may be a corporation, for profit, not-for-
profit organization, co-operative or other entity is the employer and the other is the employee
Human resource management: Human resource management (HRM or HR) is the strategic
approach to the effective management of people in a company or organization such that they
help their business gain a competitive advantage. It is designed to maximize employee
performance in service of an employer's strategic objectives.
Motivation: Motivation is the act of stimulating someone or oneself to get a desired course
of action
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter shall present reviews of different scholars who conducted studies in relation to
the concept of human resource management, the concept of performance of small scale
enterprises and the impact of human resource management practices and their impact on
organizational performance
2.1 Overview
Human resource management involves developing and administering programs that are
designed to increase the effectiveness of an organization or business. It includes the entire
spectrum of creating, managing, and cultivating the employer-employee relationship (George,
2018). For most organizations, agencies, and businesses, the human resources department is
responsible for: Managing job recruitment, selection, and promotion, Developing and
overseeing employee benefits and wellness programs, Developing, promoting, and enforcing
personnel policies, Promoting employee career development and job training, Providing
orientation programs for new hires , Providing guidance regarding disciplinary actions ,
Serving as a primary contact for work-site injuries or accidents (Richards, 2017). Human
resource management is about Addressing current employee concerns: Unlike company
managers who oversee the day-to-day work of employees, HR departments deal with
employee concerns such as benefits, pay, employee investments, pension plans, and training.
Their work may also include settling conflicts between employees or between employees and
their managers (James, 2016). Human resource management is more so concerned with
acquiring new employees, managing the employee separation process, improving morale
(Lee and Lee, 2014)
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management teams. More specifically, the article found that HR teams focused on things that
don’t add true value to the organization are often deemed reactive, uncreative, and lacking
basic business understanding. On the other hand, HR professionals who want to be
recognized as true business partners must see themselves as business people who specialize
in HR, not as HR people who advise a business.
Human resource management practices vary from organisation to organisation and they are:
Recruitment and Selection, Compensation and Reward Management, Training and
Development, Promotion, Transfer and Staff Separation, Performance Appraisal (Alfred et al,
2016). HR is a product of the human relations movement of the early 20th Century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. It was initially dominated by transactional work, such as
payroll and benefits administration, but due to globalization, company consolidation,
technological advances, and further research, HR as of 2015 focuses on strategic initiatives
like mergers and acquisitions, talent management, succession planning, industrial and labor
relations, and diversity and inclusion (Wikipedia, 2019). In the current global work
environment, most companies focus on lowering employee turnover and on retaining the
talent and knowledge held by their workforce. New hiring not only entails a high cost but
also increases the risk of a new employee not being able to adequately replace the position of
the previous employee. HR departments strive to offer benefits that will appeal to workers,
thus reducing the risk of losing employee commitment and psychological ownership
(Wikipedia, 2019).
The definition assumes that the company has control over all factors and it can adjust to
achieve improved performance. The definition has received heavy criticism for considering a
narrow view of the issue. Rock and David (2015) criticize most studies for defining
organizational performance as a variable dependent. The definitions seek to recognize
variables that result in variation in performance. However, such explanations ignore the fact
that performance advantage, is competitively unstable, performance is surrounded by casual
complexities and using data based on the memory of employees has its limitations as it is
biased and often inaccurate (Bersin, 2013) Since these barriers are well known,
acknowledging them but ignoring their contribution is not a wholesome definition (Schuler,
Farr & Smith, 2013). Inadequate supervision and training, lack of intelligence among
workers, or low standards, though contribute to low performance are not the only
contributing factors. However, the varying definitions of organizational performance agree
that to maximize, and the company has output, it is important to put its employees first.
John (2013) states that an organisation can indicate its performance through profitability.
Brinker (2002), Defined profitability as the difference between the revenue generated and
the costs incurred to produce the same revenue during a given accounting period so to him
corporate firms should aim at increasing sales revenue and reduce costs incurred so that they
achieve the desired levels of profitability.
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Taylor (2008) posits that “recruitment involves actively soliciting applications from potential
employees which is considered a positive activity that requires employers to sell themselves
in the relevant labour markets so as to maximize the pool of well-qualified candidates from
which future employees can be chosen”. According to Etomi (2002), recruitment is
concerned with the process of attracting a sufficient number of individuals with the right
profile in terms of qualifications, experience, skills and other relevant attributes to indicate
their interest in working for the organisation. Recruitment is the process of generating a pool
of qualified applicants for organisational jobs (Mathias & Jackson, 2004).
Cloete (2007) stated that recruitment is all about making sure the qualified people are
available to meet the job needs of the government. Ineffective recruitment prevents any
chance for effective candidate selection because when recruitment falls short, selection must
proceed with a pool of poorly qualified candidates. He further opined that the task of
recruitment is to generate a sufficient pool of applicants to ensure that there are enough
people available with necessary skills and requirements to fill positions. recruitment and
selection
Sangeetha (2010) opined that recruitment process involves the sourcing, advertising and
interviewing of future employees, however the selection process entails the staffing and
training of new employees on the roll of their new job. Organization needs careful time and
consideration to sustain competitive advantage in developing strategy on recruitment and
selection process. Decisions made in the recruitment and selection process or stage will
impact on the company in the future. Bad decisions made in the selection process can create
serious costs for an organization vise versa.
Neeraj (2012) defined selection as the process of picking individuals who have relevant
qualifications to fill jobs in an organization. It is much more than just choosing the best
candidate. “It is an attempt to strike a happy balance between what the applicant can and
wants to do and what the organization requires”. Selecting the right employees is important
for three main reasons: performance, costs and legal obligations (Neeraj, 2012).
Selection is the process of evaluating those who have been searched for and obtained through
recruitment with a view to deciding whether they can be employed or not. “Selection is a
decision-making activity: the psychological calculation of suitability” (Price, 2004). Taylor
(2008) posits that “selection techniques are used to decide which of the applicants is best
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suited to fill the vacancy in question.” Candidates for employment are divided into two
classes – those who will be offered employment and those who will not.” While recruitment
is a positive activity, by contrast selection is viewed as a negative process or activity in so far
as it involves picking out the best of the bunch and turning down the rest (Taylor, 2008).
The word recruitment has become a thing of concern to many organizations in order to get a
rightful candidate that can effectively fill the vacant position in the organizations due to the
increase in competitions (Adeyemi, Dumade and Fadare 2015). Similar to this development is
the contention in National University of Ireland (2006) that the continued growth and
development of an enterprise depends on its ability to recruit and select high quality
personnel at all levels in respective of the cost of such action.
According to Gregory (2004), a sound manpower plan programme logically follows a well
drawn-up recruitment strategy. In fact, the quality of the organizational performance depends
upon the quality of employees which is determined by recruitment policies and practices in
the organization. Casio (2002) stated that recruitment and selection starts with a clear
statement of objectives of the firm based on the types of knowledge, skills, abilities and other
characteristics. For organization to request for application, objectives must be established and
used for the selection process.
Success of the enterprise is directly linked to the performance of those who work for that
enterprise. under-achievement of target can be a result of failures in the workplace , hiring the
wrong people or inability to anticipate fluctuations in hiring needs, it is important that
mindful efforts are put into human resource planning in an organization Djabatey, (2012). It
has also been argued that in order for the enterprise to build and sustain the competitive
advantage, proper staffing is critical (Djabatey, 2012). Thus, according to Ekwoaba etal
(2015) “recruitments and selections have become essential in organizations because
individuals need to be attracted on a timely basis, in sufficient numbers and with appropriate
qualifications”.
“The more effectively organizations recruit and select candidates, the more likely they are to
hire and retain satisfied employees. In addition, the effectiveness of an organization’s
selection system can influence bottom-line business outcomes, such as productivity and
financial performance” (Ekwoaba et al, 2015).
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Ongori, Henry and Temtime (2009) stated in their paper that the recruitment and selection
practices of small and medium enterprises enable them to improve their human resources
practices and organizational efficiency.
However, Stonner, Freeman and Gilbert (2000) stated that the purpose of recruitment is to
provide a group of candidate that is large enough to let managers select the employees they
need. Before recruiting begins, the position's requirements which should relate to the task
must be clearly identified.
Rao (2005) states that “performance appraisal is a method of evaluating the behaviour of
employees in the work spot, normally including both the quantitative and qualitative aspects
of job performance”. Dessler (2008) views performance appraisal as any “procedure that
entails setting work standards, assessing employee’s actual performance relative to those
standards, and providing feedback to the employees with the aim of motivating him/her to
eliminate performance deficiencies or to continue to perform above par”. According to
Fajana (2002), appraisal entails historical review of employees‟ performance; it is a means
for distributing rewards as well as a means for determining training and development needs.
Manoharan, Muralidharan and Deshmukh (2009) posit that performance appraisal (PA) is an
important management tool to assess employees.
The employee performance appraisal is an important career development tool for the manager
and employee. The manager can help guide the employee on the path to corporate
advancement, and the employee gets a clearer understanding of what is expected from her in
her daily job duties. Performance appraisals have a wide variety of effects on employees that
managers must identify and understand (Richards, 2016).
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Performance appraisal is globally recorded to have great impact on organizational
performance in small scale businesses through a number of ways (Alfred et al 2016)
Performance appraisal doesn't benefit only employees. Organizations that use the results of
performance appraisal to identify areas of strength and opportunity can benefit as well.
Performance appraisal can provide an indication of areas of training need as well as direction
for leadership development, performance improvement and succession planning (George,
2016).
The results of performance appraisal can be assessed to identify areas of strong performance
across all employees, by department or by demographics. Standardized performance
assessments allow companies to aggregate, calculate and analyze results to show where
performance is strong. These areas of strength then can serve as benchmarks and
opportunities for sharing of best practices for other areas of the organization (Gregory, 2016).
Evaluating the results of performance appraisals can provide managers, human resources
departments and organizations with an indication of where additional training and
development may be necessary, says Lin Grensing-Pophal, author of "Human Resource
Essentials. In his research, Wilson (2014) results from performance appraisal may indicate
that employees collectively are scoring low on items related to use of technology or customer
service. These may become target areas for the creation and implementation of training
programs designed to boost employee competence and performance. Results also may be
assessed at the individual, department and division levels.
Clarity
Employees perform their job duties to the best of their abilities throughout the year based on
guidance from management (Armstrong, 2001). Part of a performance appraisal is when a
manager and employee review the job description and compare the employee's performance
with expectations. This gives the employee a feeling of clarity and understanding that will
help him better perform his job duties (Tiko, 2015).
Take Responsibility
To prepare for the annual review, a manager should keep notes of all of the employee's
accomplishments and challenges throughout the year. When these are presented to the
employee during the appraisal, it gives the employee the opportunity to benefit from her
accomplishments and accept responsibility for the performance challenges. By claiming
ownership of performance issues, the employee makes the process of career development a
more personal commitment (Armstrong, 2001).
Teamwork
During a performance appraisal, a manager needs to take time to show the employee how his
performance affects the productivity of the entire organization. When employees understand
how their performance affects the ability of others to do their jobs, it helps put his own job
duties into an overall company context. It helps improve the notion of teamwork among the
staff, and can also encourage cooperation to achieve corporate goals. ( Alfred et al, 2016).
Performance appraisal was introduced by Lord and Taylor (1914). As a result, many
companies were influenced by Frederick Taylor’s “Scientific Management” efforts of the
early twentieth century. It is therefore believed that the continued success of each
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organization depends on its performance appraisals. Employee performance appraisal is one
of the most commonly used management tools. Performance appraisals have far reaching
consequences on people. If evaluators in any way discriminate against employees, these
individuals can suffer devastating and potentially debilitating consequences. Given the
possibility that adverse judgments can be made about an individual’s performance, it is
possible that performance appraisals might not be fair. Evaluators might allow their biases,
prejudices and stereotypical attitudes to negatively influence the outcome (Henrietta, 2012).
Staff remuneration or “pay affects the way people work in terms of how much and how well”
(Yoder & Staudohar, 1982). Most conflicts at work could be explained by poor pay and other
pay- related issues. The outcome of pay dissatisfaction may include lower job performance,
increase grievance, incessant absenteeism as well as labour turnover. On the other hand,
excessive compensation costs can reduce an organization’s competitiveness and its ability to
provide jobs (Pattanayak, 2010). Sound compensation policy should create a balance between
satisfaction and competitiveness. Pay is a contractual phenomenon, as the payment of salaries
and wages is an indication of a relationship and transaction between the employees and
employers. It is a consideration which is extended to employees for services rendered. Staff
remuneration otherwise called compensation refers to the totality of both the financial and
non-financial rewards that an employee receives in return for his/her labour or services to an
employer or organisation. It includes the basic pay, incentives and numerous financial and
non-financial benefits (Banjoko, 2006).
When properly conducted, performance appraisals have several key roles in the organization.
They have used administratively to base decisions like transfers, promotions; demotions,
termination, and rewards (DeNisi & Pritchard, 2006). They are also used to identify the need
for training for the human resource and the areas that require further development and
training. Directors also use them to form a basis for constructing a system for rewards and
bonuses, provide feedback on performance for the employees, and improve supervision since
the supervisor is aware of the subordinate's performance. Since promotion or bonuses are
awarded using the outcomes of the appraisal, it guarantees fairness and reduces grievances
among employees (Simmons & Iles, 2001). Managers and directors can also use it to evaluate
the effectiveness of early stage processes like recruitment, selection, and induction in the
organization (DeNisi & Pritchard, 2006). Finally, the appraisals also serve as a tool for
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motivation as targets achieved are an indicator of the efficiency of an employee. It, therefore,
motivates employees to perform better and improve their appraisal index.
In spite of the size and nature of an organization, the activity it undertakes, and the
environment in which it operates, its success depends on its employees‟ decisions and their
behavior. To evaluate performance of employees in organization is one of the major purposes
of employing human resource practices (Mustapha, 2013). In the competitive environment of
modern era, organizations are persistently improving performance of their employees by
improving HR practices. Performance of any organization largely depends on the
performance of its employees (Armstrong, 2001). Successful organizations are increasingly
realizing that there are a number of factors that contribute to performance but human resource
is clearly the most critical (Mello, 2005). Caliskan (2010) acknowledged that HR practices
are one main source of competitive advantage. In the last two decades, focusing on HR
practices has been an imperative and decisive area for organizational performance, effective
HR practices improve the performance of organization and lead to higher profits (Mello
2005). Datta et al, (2003) found that best use of HR practices reveals a stronger association
with efficiency of firm.
Research has shown that the people in organisations are an important variable when it comes
to trying to stay ahead of the competition and that Human Resource Management (HRM) can
play a decisive role in organisational performance (Boselie & Dietz, 2003; Boselie, Dietz, &
Boon, 2005).
HRM is assumed to affect knowledge, skills, abilities (Schuler & Jackson, 2005), attitudes
and behaviour of employees (Guest, 2006), and may therefore affect the performance of an
organisation (Den Hartog, Boselie, & Paauwe, 2004). The alignment of HRM with the
organisation strategy (strategic fit) and the alignment of the various HRM practices, such as
career opportunities, training and appraisal, within the organisation (internal fit) are assumed
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to be important factors in explaining the link between HRM and organisational performance.
When HRM within an organisation is well aligned, the employees know what is expected of
them, may therefore act similarly and have uniform expectations about work and behaviour
(Baron & Kreps, 2005).
Employees can cooperate with their co-workers as well as with their supervisors (Koster,
2005). Cooperation with co-workers can take the form of helping out, or thinking up
solutions for a problem a co-worker has. when there is good internal and strategic fit,
employees in an organisation will cooperate more, regardless of whether the fit is job- or
organisational-focussed (Kreps 2006).
Baron and Kreps (2006) emphasise the importance of a consistent HRM and give a number
of reasons. Consistent HRM practices are necessary for the awareness and appreciation of
the employee. Consistency is beneficial because it helps the individual to understand what is
expected of her. The same argument can be found in the theoretical work of Bowen and
Ostroff (2004; Ostroff & Bowen, 2000). Employees develop expectations concerning how
they will be treated in the future. When HRM practices are inconsistent, this will negatively
affect the learning process.
Moreover, consistent HRM affects the social forces in an organisation. If the activities of the
organisation are consistent, it is easier to mould individual expectations. In turn, employees
will adapt their behaviour. Furthermore, there is the influence of consistent HRM on
recruitment and selection. Consistent hiring policies can better ensure that employees are
working at the right place, which is where they will perform best. Furthermore, in order to
work cost efficiently, it is important that employees clearly understand the contents of the
positions they are being hired for. Moreover, if employees do what matches their skills best,
it is likely that they will enjoy their work, which may positively affect turnover (Lambert,
Lynne Hogan, & Barton, 2007).
Employees compare their rewards with the rewards of relevant others (Bloom & Michel,
2002). Unequal reward may cause competitive and undesired behaviour. Equal and fair
treatment will consequently remove an important cause of envy and competition among co-
workers. So when the practices are better aligned, co-workers will be more inclined to
cooperate than when practices are not well aligned. HRM policies are assumed to affect the
knowledge, skills, abilities, attitudes, and behavior of employees (Guest, 2004) and may
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therefore also affect the performance of the organisation (Den Hartog, Boselie, & Paauwe,
2004).
Previous research has already given some insights into the effects of HRM. An example is
Horgan (2003), who studied HRM systems and their effect on the performance of employees
and found that performance was indeed affected by various HRM measures.
2.5 Conclusion
Businesses continue to grow in all parts of the world as many new business ideas are being
generated by various investors. This is a result of the rapid improvement in technology and
other aspects of production. However, despite the rapid rise in technology and development
of new machines, human beings still remain the most important part of any business venture
in the world. Human beings are needed to do almost all the operations of the organisations
including running the machines
Human resource management has evolved over the years and organisations have continued to
take up the various human resource management practices into their daily operations. The
growth of various human resource policies has greatly impacted on the performance of
organisations in small scale enterprises. However, it has to be noted that organisation
performance is the key main area of concentration for all managers.
The purpose of this study is to examine the relationship between human resource
management practices and performance in small scale enterprises in wakiso district among
the foods and beverage enterprises mainly concentrating on Nansana municipality.
The above theory discussed shows the views of other scholars in line with the objectives of
the study and some of the studies were conducted in Uganda while most of the studies were
conducted in other various parts of the world including east Africa and Africa in general.
Therefore, there is a need to examine the relationship between human resource practices and
performance of small scale enterprises in Uganda.
The research will answer the various objectives of the study and find conclusions and
recommendations basing on the findings from the field
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CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter will cover the research design, study population, study area, study variables,
instruments of data collection, data processing, administration of instruments, sources of data
and data analysis, validity of the study and ethical considerations.
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population groups at a single point I time. Cross sectional design is a type of observational
study design in which the investigator measures the outcome and the exposures in the study
participants at the same time (Sage, 2018)
The study population will cover the business owners and employees in municipality of
Nansana. The study population will cover people aged 18 years of age and above. The
National Population and Housing Census (NPHC) 2014, indicated that Nansana municipality
has a total population of 186 employees (www.nansana.go.ug, 2019).
Sample size: A sample size of 70 respondents will be selected from the field by the
researcher. This sample size will be the representative of the entire Nansana municipality
Random sampling will be employed in this study to sample the respondents. This is because
the method eliminates researchers bias and therefore ensures objective (James, 2014).
However, convenient Sampling will also be used during the selection of respondents from the
study area as the researcher will first select one respondent who will help the researcher in
getting in touch with another respondent until the total number of the respondents in the same
category is obtained.
The main sources of data for the study will be primary and secondary data
Primary data is firsthand information collected directly from the field by the researcher using
various research tools (Tiko 2017). Primary data will be collected from the field using a
questionnaire and an interview guide.
22
Secondary data is data collected from other sources mainly from already published data by
other scholars (Tiko 2017). The researcher will collect secondary data from sources like
newspapers, government reports, internet websites, and previous research reports among
other printed information by various scholars
The researcher will collect both qualitative and quantitative data using questionnaires and
research interview guides. Quantitative data will be collected using structured questionnaire.
Qualitative data will be collected by the use of interview guide.
3.6.1 Questionnaires
3.6.2 Interviewing
During the research, the researcher will design and use formal interview to collect the various
required information from the respondents. the researcher will use interviews mainly because
they offer a chance to explore topics in depth and allow interaction between the researcher
and the respondents. the interviews give a chance to properly explain to the respondents the
various questions and their meaning. The researcher will design an interview guide which he
will follow when asking questions from the various respondents. The answers given by the
various respondents will be noted down by the researcher for data analysis and presentation
of results.
The validity will be established by the supervisor. Validity of an instrument is the” extent to
which the items in the instrument measure what they are set out to measure (Tiko 2017)
23
The researcher will determine the reliability of the instrument using a pretest procedure of
the instrument before using the instrument to carry out the research. This testing will help the
researcher to identify and correct the errors in the research instruments.
The researcher will acquire an introductory letter from the university which he will present to
the various authorities in Wakiso district specifically Nansana municipality. The researcher
will introduce himself to the various respondents using the same introductory letter and his
identification cards. The researcher will fully explain the purpose of the research to the
various respondents and after getting their consent, the researcher will go on with his work.
The researcher will then go on and collect all the information which he will later edit and
create a report. During data collection, field editing of data will be done each day by the
researcher.
Data analysis includes editing, coding computer data entry and verification of the accuracy of
the data entered into the computer. Qualitative data will be reviewed and analyzed using
content analysis where by key statements will be used to backup numerical data analyzed.
Data analysis will be carried out using Microsoft excel software in the form of frequency
distribution tables, graphs and pie chart.
The researcher will seek permission from the various authorities in wakiso district
specifically Nansana Municipality to carry out the research. These authorities include the
chair persons and councilors among others.
The researcher will obtain permission from the university through acquiring an introductory
letter from the university. The researcher will obtain an introductory letter from the
University for use in the field to introduce himself to the respondents
The researcher will print and pretest questionnaires to use in the field of research. This will
help to identify and correct the various errors on the questionnaires and the interview guides.
24
The researcher will keep the findings of the research with care and only use them for
academic purposes. On top of this, the researcher will also assure the respondents that their
information will be handled confidentially and only used for academic purposes.
The researcher will always consult with the supervisor for guidance on various aspects of the
research.
The researcher will face a challenge of communication mainly with respondents who only
speak their native language. This will make it hard to collect information from such
respondents.
The research will require funds to run the various operations of the researcher like transport
costs and paper work. However, this will be a limitation because the researcher is still a
student and not employed hence it will be challenging for him to find the necessary funds to
run the research.
The researcher anticipates that some respondents will deliberately refuse to give information
while some will give the wrong information. This will delay the research and make it hard to
collect data as required
REFERENCES
Baird, L., & Meshoulam, I. (2015). Managing Two Fits of Strategic Human Resource
Management. Academy of Management Review, 13(1), 116-128.
th
Armstrong, M. (2009). Armstong's Handbook of Human Resource Management Practice 11
Edition: Kogan Page: London.
25
Banjoko, S.A. (2006). Human resources management: An expository approach. Lagos:
Punmark Nigeria Ltd.
Dessler, G. (2008). Human Resource Management (11th ed). New Delhi: Prentice-Hall of
India Private Ltd.
Etomi, E. (2002). “The Changing Face of Recruitment and Selection”. Human Resource
Management, Journal of the Institute of Personnel Management of Nigeria.Vol.11,
N0.1, pp.26-33.
th
Ivancevich, J.M., (2004). Human resources management (9 ed). New York: McGraw-Hill
Irwin.
Mamoria, C. B; Gankar, S.V & Pareek, U. (2007).Personnel Management: Text & Cases.
(27th ed.). Mumbai-India: Himalaya Publishing House.
Mathias, R.L & Jackson, J.H. (2004).Human Resource Management. (10th ed). Cincinnati,
Ohio: South-Western Publishing.
Noe, R.A., Hollenbeck, J.R., Gerhart, B., and Wright, P.M. (2000). Human Resource
Management: Chicago, IL: Irwin.
Pattanayak, B. (2010). Human Resource Management (3rd ed). New-Delhi: PHI Learning
Private Ltd.
26
Purcell, J., Kinnie, N., Hutechison, S., Rayton, B., & Snort, J. (2003). Understanding the
people and performance link: Unhooking the black box. London: Chartered institute
of personnel and development.
Rao, V.S.P (2005). Human Resource Management: Text and Cases. (2nd ed.). New Delhi:
Excel Books.
Taylor (2008) : The International J*ournal of Human Resource Management, Vol. 19, No. 7,
July 2008, 1278–1297, http://www.informaworld.com
Tessema, M. and Soeters, J. (2005) „Practices and Challenges of Converting Former Fighters into
Civil Servants: The Case of Eritrea‟, Public Administration and Development.
The Service Industries Journal Vol. 28, No. 7, September 2008, 919 – 937
Wright, P.M. Gardner, T., Moyniham, L.M., & Allen, M. (2005). Weihrich, H. & Koontz., H.
th
(2001). Management: A global perspective (10 ed). New Delhi: Tata McGraw-Hill.
APPENDICE 1
THE BUDGET
Lunch 100,000
Breakfast 50,000
Total 402,500
APPENDICE 2
WORK PLAN
4 Research October
28
APPENDICE 3
RESEARCH QUESTIONNAIRE
Dear respondent
small scale enterprises a case study of Nansana Municipality in Wakiso district. The purpose
of this questionnaire is to extract information in line with the above-mentioned topic. You are
kindly requested to fill the questionnaire with the required relevant information. Please be
assured that information collected will be handled with integrity and confidentiality and the
information you provide will only be used for statistical and academic purpose. Thank you
Male female
Marital status
29
Age of the respondent (please tick where appropriate)
a) 18 years to 29 years
b) 30 years to 39 years
c) 40 years to 49 years
d) 50 years to 59 years
e) 60 years and above
KEY 1
A- AGREE
DA- DISAGREE
What are the effects of recruitment and selection on performance of small scale enterprises?
5 4 3 2 1
SA A NS DA
SD
30
A sound man power plan program logically follows a
well-drawn up recruitment strategy
5 4 3 2 1
A SA NS DA
SD
31
Performance appraisal is major tool in leadership
development and succession planning.
5 4 3 2 1
A SA NS DA SD
32
termination of contracts among others
1. Yes
2. No (underline your answer)
Please give a reason or reasons for your answer in the space provided below
1…………………………………………………………………………………………………
…………………………………………………………………………………………………
2…………………………………………………………………………………………………
…………………………………………………………………………………………………
3…………………………………………………………………………………………………
…………………………………………………………………………………………………
4…………………………………………………………………………………………………
…………………………………………………………………………………………………
5…………………………………………………………………………………………………
…………………………………………………………………………………………………
Thank you
33
APPENDIX 4:
INTERVIEW GUIDE
I am BEINABAABO AKILEO a student of Business Administration at Metropolitan
small scale enterprises a case of Nansana Municipality in Wakiso district. You are kindly
requested to answer with the required relevant information. Please be assured that
information collected will be handled with integrity and confidentiality and the researcher
will be glad to share with you the results of the research should you wish to. Thank you for
your assistance
34
What do you think is the influence of compensation plan on performance of small
scale enterprises?
6. Relationship between human resource practices and organizational performance
Is there a relationship between human resource practices and performance of
small scale organisations?
Please give reasons to support your answer
35
APPENDICEIV
Krejcie and Morgan, 1970 Sample table
Required sample size, Given A= Finite population, where N= population size and
n=sample size.
N-n N-n N-n N-n N-n
10-10 100-80 280-162 800-260 2800-388
15-14 110-86 290-165 850-265 3000-341
20-19 120-92 300-169 900-269 3500-346
25-24 130-97 320-175 950-274 4000-351
30-28 140-103 340-181 1000-278 4500-354
35-32 150-108 360-186 1100-285 5000-357
40-36 160-113 380-191 1200-291 6000-361
45-40 170-118 400-196 1300-297 7000-364
50-44 180-123 420-201 1400-302 8000-367
55-48 190-127 440-205 1500-306 9000-368
60-52 200-132 460-210 1600-310 10000-370
65-56 210-136 480-241 1700-313 15000-375
70-59 220-140 500-217 1800-317 20000-377
75-63 230-144 550-226 1900-320 30000-379
80-66 240-148 600-234 2000-322 40000-380
85-70 250-152 650-242 2200-327 50000-381
90-73 260-155 700-248 2400-331 75000-382
95-76 270-159 750-254 2600-335 100000-384
36