Ways to enhance the employee engagement in branch banking

What is employee engagement?

"Employee engagement" is a concept which comes to the discussion in HRM during last two decades. There are number of definitions & introductions given by many scholars and researchers which are providing better ways of identifying the concept. This is basically about how the engagement of employees in their work roles effect on achieving organizational goals. 

Armstrong, (2014) states that engagement takes place when people are committed to their work and the organization and are motivated to achieve high levels of performance. 

Employee engagement is a positive attitude held by the employee towards the organization and its values (Robinson et al, 2004). 

Employee engagement is harnessing of organization members' selves to their work roles in engagement, people employ and express themselves physically, cognitively, emotionally and mentally during role performance (Khan, 1990). 

Application of the employee engagement in branch banking.

Branches are the front liners of a Bank as they are carrying out the main banking functions to their customers. Engagement of the branch staffs' to their job roles should be in a considerably higher standard in order to perform their tasks to the expected levels. We see number of instances where customers are not satisfied the services that they received from the branch & such scenarios has led the bank to reduce their profits.  

Following factors can influence the engagement levels of the branch staff.

Understanding their commitment in achieving the organizational goals towards their job roles.

All staff including the minor staff should have a clear vicinity of their job roles & its contribution in organizational success. A better understanding & the commitment of the individual contribution of each and every staff member can produce a better customer service.

Alignment of the job roles with the business objectives.

Designing of the job roles should be done in a effective way where the branch staff can perform their duties without a hassle. Further, the given objectives should be achievable towards the relevant job roles. 

How does the employee feel about the organization.

An organization should implement a good working environment for their employees so they can feel job security and the satisfaction. It will help the organization to gain a high levels of efficiency & the productivity from their staff.

Opportunities for development.

Growth of the employees is important when the organization is having long term strategies. Branch staff should have opportunities to develop their carriers with the relevant experiences and the job knowledge  & they will engage in their duties as they need to gain the same up to the expected levels. 

Variety.

This allows the branch staff to perform many different activities. Rather than being restricted to perform limited duties, allowing job rotations will lead the employees to work with a satisfaction & motivation since the invariability can be reduced.

Enhancing the employee engagement.

This is a process which never ends and it rests on the foundation of a meaningful and emotionally enriching work experience (Perrin, 2003). Further he emphasized that, making people happy or paying them more money are playing a less significant role in employee engagement, and the main elements which can drive an organization to gain a better employee engagement are, strong leadership, accountability, autonomy and opportunities for development.

As a self reflection, I would address the employee engagement in branch banking as a two-way process where the branch staff as well as the management need to play their roles accordingly. Management should identify the requirement of relevant changes or improvements & implement them in adequate levels. Branch staff should effectively utilize the provided resources or the implementations & contribute in achieving the objectives in expected levels. 

References

Armstrong, M. (2014). Handbook of human resource management in government, British Library Cataloguing-in-Publication Data. doi: 10.1177/030913258901300105.

Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work, Academy of Management Journal

Kompaso, S. M. and Sridevi, M. S. (2010). ‘Employee Engagement: The Key to Improving Performance’, International Journal of Business and Management, 5(12), pp. 89–96. doi: 10.5539/ijbm.v5n12p89.

Perrin, T. (2003). Working Today: Understanding what drives employee engagement, New York,

Robinson D., Perryman S., and Hayday S. (2004). The Drivers of Employee Engagement Report 408, Institute for Employment Studies, UK

  

The stages of performance management system

Schneier et al, (1987) classified the performance management system into a development, planning, managing, reviewing and rewarding phase.

Source: Drawn according to interpretation-Original source: Schneier, Beatty and Baird, (1987:98)

According to Schneier et al, (1987) Phase 1 of the performance management system includes outlining development plans, setting objectives and getting commitment activities. Assessing against objectives, seeking feedback, coaching and document reviewing are the activities coming under phase 2 with managing and reviewing performance. In the last phase under rewarding performance, includes personal development, results of performance and link to pay activities.

Developing and planning performance

Planning is a continuous process in performance management and should be executed with great care & it helps to encourage commitment and understanding by linking the employees' work with the organization's goals and objectives (Schneier et al,1987).

Armstrong and Baron, (2004) clarifies the objectives or goals as something to be accomplished by individuals, departments and organizations over a period of time. Further they stated that objectives need to be defined and agreed on. Rogers and Hunter, (1991) claimed that goal setting is the fundamental aspect for an organization.

The development plan can also include long term development initiatives which are usually based on potential and good performance (Nyembezi, 2009). In this phase, supervisors and subordinates are involved in a joint process and set organizational goals as well as specific goals for an individual. 

Managing and reviewing performance

This is the second element of the performance management system. This step clarifies performance management as a process from performance appraisal as an activity(Schneier et al, 1987). According to him, every employee is responsible for managing his or her own work performance. This involves 

- Maintaining positive approach to work.

- Updating and revising initial objectives, performance standards and job competency areas as              conditions change.

- Requesting feedback from a supervisor.

- Providing feedback to supervisor.

- Suggesting career development experiences.

- Employees and supervisors working together, managing the performance management process.

Amrstrong and Baron (2004) found out that performance management is a resource at its finest to ensure effective management by managers. The performance management system should therefore ensure that employees or team managers know and understand what is expected of them. 

It includes the performance reviews in the second phase that can be considered learning events. Individuals might be encouraged to think about how they want to develop and how they want to.

feedback has strong positive effects on the performance of both individuals and groups, specifically through role clarification, improved self-efficacy, the establishment of behavior reward contingencies and increased self-regulatory control processes (Ashford & Cummings, 1983).

According to Armstrong and  13 Baron (2004), the actual performance could also be compared to the desired performance, therefore the outcome is evaluated and a development plan is set based on the weakness. 

Rewarding performance

Schneier et al, (1987) clarified this phase includes three activities; personal development, linking to pay and identifying the results or performance. 

Personnel development has some development principles. First one is personal involvement. All personnel development is basically self-development. Opportunity for development is valuable only if the individual capitalizes on it himself.

Rahdert, (1960) also points out that it is in the interests of staff development. For employees, if their individual skills or knowledge increase, they may create more value and, as a result, they may have a sense of satisfaction with the achievement of their personal goals and the achievement of professional recognition.

Development programs reflect the needs of succession plans and seek to foster leadership skills. In addition, there is a growing interest in pay-for-performance plans for small groups or teams. In this phase, pay-for-performance could be used together as a performance assessment tool. According to the view of Locke, (2004) the pay-for-performance principle involves providing monetary rewards through carefully designed compensation system that base pay on measured performance within the control participants.

  

Financial assessment is a useful tool to stimulate the passion of employees for their work. Rewarding motivates employees' positive emotions, such as satisfaction and commitment. As a result, pay-for-performance effectiveness has a direct impact on high productivity levels and desirable work attitudes.

Reference

Armstrong, M. and Baron, A. (2004). Managing performance: performance management in action. 1st edn. London: Charted Institute of Personal and Development 

Ashford, S. J. and Cummings, L. L. (1983). “Feedback as an individual resource: personnel

strategies of creating information”, Organizational Behavior and Human Performance, Vol. 32

Locke, E. A. (2004). Handbook of Principles of Organizational Behavior. 2nd edn.

Nyembezi, V. (2009). Development of a Performance Management System for the SABC. Nelson Mandela Metropolitan University Business School.

Rahdert, K. G. (1960). A philosophy of personnel development. Business Horizons, 3(4), pp.46-53.

Rogers, R. & Hunter, J. E. 1991. Impact of Management by Objectives on Organizational

Productivity. Journal of Applied Psychology

Schneier, C. E., Beatty, R. W. and Baird, L. S, (1987). Performance Appraisal Sourcebook. Human

Resources Development Press, Amberst.

Zhang Ying, Y. (2012) ‘The Impact of Performance Management System on Employee performance Analysis with WERS 2004’, Thèse de maitrise, pp. 1–57.

Organizational team-work in the view of five stages of group development

Teamwork in organizations

An effective teamwork provides an opportunity to move together and establish a common ground for the completion of specific objectives of an organization. Some of the critical ingredients of effective teamwork are empathy, appreciation and encouragement. 

Alcorn, (2006) provides a definition of a team which defines a team as "work done by several associates, with each doing a part but all subordinating personal prominence to the efficiency of the whole". In other words, Team is a collective whole of people that work together so that they are more productive.

Most of the today's organizations are moving towards enhancing the group development & building the team work concept. This is enabling such organizations to grab a better market place among their competitors. Individual decision making has taken a back stage and team management approach for problem solving and decision making has come in front as it is more productive for the enterprises. This strategy benefits not only the organization, but also the individual employee, which is why businesses have quickly adopted it.    

Tuckman stages of group development

Tuckman, (1965) developed a four staged theory of team building and called it "Tuckman's stages". According to his research findings, if any team wants to deliver high quality results than these four stages are inevitable for  the team members. In 1977, Tuckman jointly with Mary Ann Jensen , added a fifth stage called "Adjourning". 

He emphasized that these five stages need not always be strictly followed one after the other. During the first two stages it is about social emotional tasks. Stage three and four are more focused on task-oriented activities. 

1. Forming 

This is where a new team has to be organized and is therefore concerned with orientation; what kind of people are in the team and what are their tasks? Team members will share information about their backgrounds and experiences. Further, they'll learn about the objective they will be working on and will understand the roles to be played individually. They'll still look for a team leader for guidance. So it is leader's duty to give a clear picture of the task to be achieved and explain the team members regarding the required individual contribution from each one of them. The team leader should ensure that all of the members are involved in determining team roles and responsibilities and he or she should work with the team to help them establish how they'll work together. 

     2. Storming

In this stage the team members start to work together. They'll compete with each other for status and for acceptance of their ideas. Through this stage they'll learn how to solve problems together, how to function both together and independently & how to settle into roles and responsibilities on the team with the guidance of their leader. Leader should facilitate his team members to ensure that they will learn to listen each other and respect their differences and ides. At this stage, the team leader will start transferring some decision making to the team to allow them to become more independent but remain active in resolving any disputes as quickly as possible. Teams which comprised team members who are professionally immature will face difficulties in going through this stage. 

     3. Norming

Team members are beginning to work more effectively as a team. They will not longer focus on their individual goals, but will develop a way of working together. In this stage the team has agreed on their team rules for working together, how they will share information and resolve the team conflict, and what procedures they'll follow to get the task completed. Team members will trust each other and seek each others assistance. The team leaders responsibility will get little less in this stage as he may not be involved in decision making and solving problems like in previous stages since the team members are working better together and able to take more responsibilities. However, the team leader may involve in to move along if the team gets stuck.

    4. Performing

The team will perform in a very high level as a unit and the energy of the group will benefit the task. All team members will work together towards achieving the goals and the objectives as they know exactly what is expected. As the team members will work more effectively and will not require an oversight like the other stages, the team leader will not involve in decision making, problem solving or any other activity. He'll monitor the progress of the team and celebrate the milestones. Not every team make it to this level of team growth and even in this stage some teams may step back to previous stages due to the changes of the team members.

    5. Adjourning 

This is where the task is coming to an end with a success and team members are moving off to different directions. The team leader should ensure there is time for the team to celebrate the success. Further, this will enable the team members to say good-bye to each other and wish each other luck for their future endeavor.  

     

 

Reference

Maples, M. F. (1988). Group development: Extending Tuckman’s theory. Journal for Specialists in Group Work, 13(1), 17-23.

Mulder, P. (2013). Tuckman stages of group development. Retrieved 01/12/19 from toolshero: https://www.toolshero.com/management/tuckman-stages-of-group-development/

Plowman, N. (2011). The five stages of team development. Bright Hub Project Management. Retrieved from http://www.brighthubpm.com/resource-management/101626-the-five-stages-of-team-development/

Tuckman, B. W. (1965), Developmental sequence in small groups. Psychol. Bull. 63:384-99.

Tuckman, B. W., Abry, D. A., Adams, M. P., & Smith, D. R. (2007). Learning and motivation strategies: Your guide to success. Prentice Hall.

Role of Workplace Upward Communication in reducing Employee Silence

According to (Fitz-enz, 1993), Communication in the "best practice" companies is broad-based, continuous and involves multi-directional employee contact. Communications with employees is "a given" and is a formal, focused and on-going responsibility. Communications are not done as an "extra". 

Upward communication includes the transmission of messages from the lower level of the organization to the higher level, namely communication initiated by subordinates with their superiors as stated by Daniels et al, (1997).

Smith et al, (1972) stated that upward communication is a prerequisite for employee involvement in decision-making, problem-solving and policy and procedural development.

Katz and Kahn, (1978) point out that upward communication can provide superiors with information in the following areas: 

1) Performance on the job and job-related problems.

2) Fellow employees and their problems.

3) Subordinate’s perceptions of organizational policies and practises. 

4) Tasks and procedures for accomplishing them.  

Effective upward communication can be promoted by means such as suggestion systems, systematic reporting methods, grievance procedures, opinion or attitude surveys and employee meetings, but the presence of such systems can only be symbolic gestures (Daniels et al, 1997).

Managers and executives admire the advantages of upward communication in many organisations, practical use of upward communication seems to be limited. Gibson and Hodgetts, (1991) suggested that management-based explanations for this lack of satisfaction, particularly since these approaches often do not involve two-way communication.

McCelland, (1988) found a number of "employee-based" explanations for weak upward communication including:

• Fear of reprisal – Employees are afraid to speak their minds.
• Filters – Employees feel their ideas/concerns are modified as they get transmitted upward.
• Time – Managers give the impression that they don’t have the time to listen to employees.

Employee Silence literature also provides evidence that subordinates distort the information they convey to their superiors which means communicating upward in a manner that minimizes negative information (Roberts and O'Reilly, 1974). In other words, managers tend to be more receptive to upward communication when the information is positive.

Once subordinates create the perception that superiors only want to hear good news and promote their own ideas, it should come as no surprise that upward communication with these superiors is extensively filtered (Daniels et al, 1997).

Krivonos, (1976) stated that subordinates tend to tell their superiors what they think the superiors want to hear or only what they want their superiors to hear. Then the information is distorted so that it will please superiors and reflect positively on subordinates. 

Silence is not just about the difficulty of transmitting bad news to the hierarchy (Tesser & Rosen, 1997). It is about the social and relational nature of work.

Reference;

Fitz Enz J. (1997) The 8 Practices of Exceptional Companies . New York, American Management Association.

Gibson, J. W and Hodgetts, R. M. (1991). Organizational Communication – A Managerial Perspective.

Katz, D. and Kahn, R. L. (1978). ‘‘The Social Psychology of Organisations’’, 2nd Edition, New York: Wiley. 

McClelland, V. A. (1988). Upward communication: Is anyone listening? Personnel Journal, 124-130.

Roberts, K. H. and O’Reilly, C. A. (1974). ‘Failures in upward communication in organizations: three possible culprits’. Academy of Management Journal

Rosen, S. and Tesser, A. (1970).'On reluctance to communicate undesirable information: the MUM effect'

Daniels, T. P., Spiker, B. K., and Papa, M. J. (1997). ‘‘Perspectives on Organizational Communication’’. 4th edn. Brown & Benchmark Publishers.

Building a learning organization towards Senge's five disciplines

What is a learning organization?

Learning organization is a term which is in discussion for many years. As the term comes it is used to identify that being a such organization is better. But still it is arguable that how an organization become a learning organization.

According to Senge, (1990) learning organization is an organization that encourages and facilitates learning in order to continuously transform itself to survive and excel in a rapidly changing business environment. He introduced five disciplines to follow to in order to become a learning organization. Further, he emphasized that the characteristics of a learning organization will help managers and employees to meet the challenges by providing them tools to pursue a creative vision, learn and work together effectively, and adapt to change.

Huber, (1991) believed that knowledge acquisition, information distribution, information interpretation and organizational memory are the four constructs which integrally linked to the organizational learning. Further he clarifies that learning need not to be conscious or intentional.   

McGill et al, (1992) defined the learning organization as a company that can respond to new information by altering the very 'programming' by which information is processed and evaluated.

Senge's five disciplines of learning organizations

Researches of Senge, (1990) shows that one-third of 500 companies will disappear within 15 years and the average life time for the biggest companies is approximately 40 years. Moreover, he stressed the importance of becoming an learning organization rather than running the business as a traditional organization and it will direct the organization to the success where the people continually expand their working capacity through expansive patterns of thinking. It includes five main disciplines. 

1. Building a shared vision

This is where the vision of the organization should be created through interaction of the the employees. This is possible when the organization's vision and the individuals' visions are compromised. The employees will begin to complete the tasks because they want to instead of they are told to do so. This will positively effect on the employees relationship with the company and it turns its performance in a learning mechanism. 

      2. Systems thinking

This is a framework for seeing the patterns and the interrelationships of an organization. In other words, this is about the observational process of the entire system of an organization and this allows the managers to understand that every action and the consequence is correlated with another. Rather than focusing on the individual issues, this process enables to see the world as a whole as it grows more and more complex. 

       3. Mental models

This is where the employees must identify the values of the companies and what the business is all about. A correct understanding of this will enable the organization to visualize where to direct and how to develop further. The organizations must be flexible enough to accept the new mental model changes. Those companies which can learn and adapt to new mental models will get more success than the competitors.

       

       4. Team learning

This is the discipline where personal mastery and shared vision are brought together. This teaches the workforce to consider its colleagues as team members instead of rivals. Accordingly this will enable the employees to express their real personality. Further, this is where the working environment should be safe where honest mistakes are forgiven. 

       5. Personal mastery

This occurs when an individual has a clear vision of goal, combined with an accurate perception of reality. The space between the reality and the vision will make the employee to work towards the required activities to realize the vision. Sometimes, the employees might think that they lack the competencies to achieve their goals. Senge's studies shown that how to train the subconscious mind as it can handle more complex problems than the consciousness can. When people believe in their own powerlessness, it will hold them back from realizing their vision. For this reason, we should train the subconscious mind to tackle the stress and problems in reality. 

Applying the five disciplines 

Since all these five disciplines are interlinked, the utilization of these will be challenging to an organization. However, organizations will gain competitive advantages even if they focus more narrowly on one or few disciplines. 

Talking further, if an organization begins to build a Shared vision with its team, its more important to have a conversation with its team members where the Team learning should be implemented. If an organization starts to work on system thinking to identify the common problems, its employees are required to understand the mental models. 

It is not required to an organization to focus on all disciplines at same time, and even it doesn't matter where to start as all five disciplines are inter-linked. 

Reference

Huber, G. P. (1991). Organizational learning: The contributing processes and the literature. Organization science

McGill, M. E., Slocum Jr, J. W. and Lei, D. (1992). Management practices in learning organizations. Organizational dynamics

Senge, P. M. (2014). The fifth discipline fieldbook: Strategies and tools for building a learning organization. Crown Business.

Yadav, S. and Agarwal, V. (2016). Benefits and barriers of learning organization and its five discipline. Journal of Business and Management, 18(12), 18–24. https://doi.org/10.9790/487X-1812011824

Zeeman, A. (2019). Senge’s Five Disciplines of Learning Organizations | ToolsHero. ToolsHero. Retrieved from https://www.toolshero.com/management/five-disciplines-learning-organizations/

Strategic Resourcing

Strategic resourcing is a leading topic of strategic human resource management. It is identified that human resources should be associated with organizations' strategic planning and its overall business goals. In other words, Ensuring total utilization of human resources, where the strategic and operational requirement of the organization are matching with human resources. This involves maintaining the quality number of employees, selecting and promoting people who perfectly fit the organizational culture and match the strategic requirements of the organization. 

Strategic resourcing is essentially about the integration of business and employee resourcing strategies so that the latter contribute to the achievement of the former (Armstrong, 2014). An organization is ensuring that it achieves competitive advantage by recruiting, developing and retaining more people with relevant capabilities than its competitors. And this considered as the main objective of strategic resourcing. 

Developing a positive psychological contract helps an organization to attract people with more capabilities to achieve its goals through strategic resourcing. Retaining such employees by providing them better opportunities, rewards and conditions of employment than the rivals will increase their engagement and commitment and create mutual trust (Armstrong, 2014).

How strategic HRM influence resourcing

Since, it is 'People' who implement the strategic plan, that is where the strategic HRM approaches resourcing. 

According to Miles and Snow, (1978) following factors will be strongly influenced by the type of business strategies adopted by the organization.

• The numbers of people required to meet business needs.
• The skills and behavior required to support the achievement of business strategies.
• The impact of organizational restructuring as a result of rationalization, decentralization, delayering, acquisitions, mergers, product or market development or the introduction of new technology.
• Plans for changing the culture of the organization in such areas as ability to deliver, performance standards, quality, customer service, team working and flexibility which indicates the need for people with different attitudes, beliefs and personal characteristics.      

Strategic HRM places more emphasis on finding people with attitudes and behavior which are likely to fit what management expects to be appropriate and conducive to success.  The resourcing strategies that emerge from the strategic resourcing exist to provide the people and skills required to support the business strategy, but they should also contribute to the formulation of that strategy (Armstrong, 2014).

The components of strategic employee resourcing

Strategic resourcing includes specific strategies for;

• Workforce planning - A strategy to foresight the need of people and utilizing their skills to acquire the desired results.

•  Developing the organization's employee value proposition and its employer brand - Praising the employees in many ways which would help to persuade them to join or remain with the organization; Employer brand is the image presented by an organization as a good employer.

• Resourcing plans - This includes preparing plans for finding people from within the organization and/or for learning and development programs to help people learn new skills.

• Retention plans - This is to ensure that the people with right set of skills, knowledge, competencies, qualifications and expertise that the organization needs will choose to stay in the organization. 

• Flexibility plans - Increasing flexibility in the use of human resources to cope up with any changing circumstances.

• Talent management - This makes sure that the organization has the talented people to meet present and future business needs. It also involves succession planning.

Strategic resourcing gives an edge to the organization from others. “In a rapidly changing competitive environment, human resources are one important source of competitive advantage. Human resource systems can contribute to sustained competitive advantage through facilitating the development of competencies that are firm specific" (Caliskan, 2010).

Reference

Armstrong, M. (2014). Armstrong's Handbook Of Human Resource Management Practice. 13th edn.

Caliskan, E. N. (2010). Journal of Naval Science and Engineering . The Impact Of Strategic Human Resource Management On Organizational Performance, 6 No.2 , 100-116. 

Miles, R. E. and Snow, C. C. (1978). Organizational Strategy: Structure and process, New York, McGraw-Hill

Why "Psychological contract" is a key characteristic of HRM

What is "Psychological contract" ?

Psychological contract is a term which is somewhat difficult and challenging to define. However, it is generally accepted that it is concerned with an individual's subjective beliefs, shaped by the organisation regarding the terms of an exchange relationship between the individual the individual employee and the organization (Rousseau, 1995). 

A major feature of psychological contract is the concept of mutuality that there is a common and agreed understanding of promises and obligations the respective parties have made to each other about work, pay, loyalty, commitment, flexibility, security and career advancement.

According to Cassar and Briner, (2011) employees' beliefs are understanding and perception of the exchange relationship between what employees give to the organization (Competence, effort and loyalty) and what the organization gives in return (Reward, promotion and satisfactory work environment). This perception is made based on the understanding of the organizational commitment.

Transactional contract and Relational contract are the main dimensions of psychological contract according to Rousseau, (1995). Employees do not become the organizational members really but they are only concerned about the short term material reward and personal benefit under the transactional contract whereas the Relational contract reflects employees' affective involvement and belief in organizations because organizations not only provide necessary material reward in return to employees, but also provide guarantees for employees' work safety, skill training and career development.

Organizational commitment

Meyer and Allen, (1991) emphasized that organizational commitment illustrates the psychological status between employees and organizations. Organizational commitment implies employee determination of whether to stay not to stay in the organization and it contains three dimensions.

Figure 1. Three-component model of organizational commitment adapted from Human Resources Management Review by Meyer and Allen, (1991)

Accordingly, this defines the organizational commitment as the employees' psychological perception of the relationship between individuals and organizations and it reflects employees' psychological status of being loyal to the organization (Meyer and Allen, 1991). Further, Organizational commitment is employees sense of identification, loyalty, involvement and willingness in organizations based on their affection to organizations, individual benefits and sense of responsibility (Yamaguchi, 2013).

Effects of psychological contract on organizational commitment

The difference between the organizational commitment and the psychological contract is that, the content of organizational commitment is unidirectional which only reflects employee emotion to organization. But, the psychological contract involves a bidirectional relationship which indicates employees' belief to taking responsibilities as well as the organization is taking responsibilities too. In this employees will compare and modify the extent of both sides fulfilling the contract, in order to reach the balanced state ultimately (Cassar and Briner, 2011).

Organizational commitment is actually a result of psychological contract (Rousseau, 1995). Psychological contract has an important effect on employees as it is guaranteeing to provide high level of reward, pay for performance, promotion and development. Accordingly it will hugely affect on employees' love for the organization and decision about whether they will stay in the organization. As per the analyzing done by Luo and Yu, (2013) regarding the effect of psychological contract on organizational commitment, transactional contract has a significant negative effect on organizational commitment whereas relational contract has positive influence.

It is debatable when these facts are applying towards the work satisfaction. Since the work satisfaction changes more readily and since it is considerably unstable, it can be identified as a antecedent of organizational commitment. Yamaguchi, (2013) has shown that employees' (Mainly knowledge workers') high level of organizational commitment is mainly contributed by a high level of work satisfaction.

Figure 2. Effect of knowledge worker's psychological contract on organizational commitment and work satisfaction adapted from Psychological Contract, Organizational Commitment and Work Satisfaction by Jianwu et al, (2014). 

Reference

Cassar, V. and Briner, R. B. (2011). The Relationship between Psychological Contract Breach and Organizational Commitment: Exchange Imbalance as a Moderator of the Mediating Role of Violation. Journal of Vocational Behavior, 78, 283-289. <http://dx.doi.org/10.1016/j.jvb.2010.09.007>

Luo, J. and Yu, M. F. (2013) A Study of Knowledge Staffs’ Loyalty Based on the Psychological Contract. Journal of Xi’an Shiyou University (Social Science Edition), 1, 50-54.

Meyer, J. P. and Allen, N. J. (1991). A Three-Component Conceptualization of Organizational Commitment. Human Resources Management Review, 1, 61-89. <http://dx.doi.org/10.1016/1053-4822(91)90011-Z> 

Rousseau, D. M. (1995). Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. Sage, Newbury Park, CA.

Yamaguchi, I. (2013). A Japan-US Cross-Cultural Study of Relationships among Team Autonomy,  Organizational Social Capital, Job Satisfaction, and Organizational Commitment. International          Journal of Intercultural Relations, 37, 58-71. <http://dx.doi.org/10.1016/j.ijintrel.2012.04.016>

Wisdom IT Services India Pvt. Ltd 2018, Psychological contract in HRM - HR Management, viewed 29 October 2019, <https://www.wisdomjobs.com/e-university/hr-management-tutorial-69/the-psychological-contract-9056.html>

Zhou, J. et al. (2014) ‘Psychological Contract, Organizational Commitment and Work Satisfaction: Survey of Researchers in Chinese State-Owned Engineering Research Institutions’, Open Journal of Social Sciences, 02(09), pp. 217–225. doi: 10.4236/jss.2014.29037.

The importance of the human resource management towards the organisational success

Where the concept "HRM" begun

When considering the origin of the Human Resource Management it is identifiable that the word 'Welfare' which came in during the end of 19th century where women involved in the protection of women & girls which created as a reaction mainly to the inflexibility of industrial conditions. 

In 1920, this was taken over by 'Labor Management' simultaneously with the introduction of 'Labor manager' or ' Employment manager' job titles in to the engineering industry. The Australian psychologist, Elton Mayo who we can consider as the father of Human resource management did many experiments in measuring the relationship between the productivity & the work environment. Around 1945, this had broadly defined as 'Personnel management' as the experiences derived from the world wars had shown that the output could be impacted by the employment policies.

In mid 80s the US term 'Human Resource Management' arrived with the view of that the employees are assets or resources.

Since the early past Human Resource Management has number of definitions which given by many authors. 

• "Human resource management can be defined as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations" (Boxall and Purcell, 2003).

• "HRM comprises a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work" (Guest, 1987).     

• "Human resource management (HRM) is a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations" (Armstrong, 2014).

• "Strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving sustainable competitive advantage" (Bratton and Gold, 2003).   

How important the human resource management to an organisation

Human resource management has become one of the most essential factors of today's businesses. Accordingly, the Human resources management department of an organization has to play a vital role in each and every aspect of supplying the required human resources towards achieving organisation's goals. 

"The organisations consider the Human resource management department as playing a major role in staffing, training & helping to manage people so that people & the organisation are performing at maximum capability in a highly fulfilling manner" (McNamara, 1998). "When it comes to the global businesses HRM is increasingly considered a contemporary development to reshape employment relationships as a tool that may have effectively replaced other management traditions like personnel management" (Marchington & Wilkinson, 2002).

All kind of organisations including private, non-governmental & public establishments run their operations by setting different goals according to the organisation's type. However, all these types of organisations are having a similar aim of providing a quality service with the common ground called human resource. No matter how strong the other resources are, profitability of success will be low if the human resources do not involve in an effective manner. 

Opinions of the employees about the organisation's strategies is another important fact which helps to identify their satisfaction of the work. In this case, "the performance of the employees depends on their satisfaction of the work" (Uyargil et al, 2010). Facilitating fair remuneration schemes, better working environment, social & legal rights, opportunities to communicate with the colleagues & the managers will lead the employees to work with increased motivation & it will direct the organisation to a more productivity.   

"An organization needs to adopt specific HR policies and practices for different strategies. Thus, to be effective, an organization’s HR policies must be consistent with other aspects of the organization. By having appropriate HR policies and practices in place, organizations can elicit employee behaviors that are consistent with an organization’s strategy" (Rose & Kumar, 2006).

Having an effective human resource management will automatically direct the employees to contribute effectively & productively to accomplish the  organisation's goals and objectives. Employees are considered as the most important value & that is the reason why human resources management is a key factor for success of today's businesses. 

Reference

Alakoc, Z., 2014. Human Resource Management and Its Importance for Today’s Organizations. International Journal of Education and Social Science, 1(2).

Armstrong, M. (2014) Armstrong's Handbook Of Human Resource Management Practice. 13th edn.

Boxall, P. and Purcell, J. (2003). Strategy and human resource management: management, work and organisations. Hampshire, Palgrave MacMillan.

Burma, Z. A. (2014). ‘Human Resource Management and Its Importance for Today’s Organizations’, International Journal of Education and Social Science, 1(2), pp. 85–94.

Guest, D. E. (1987). Human resource management and industrial relations [1]. Journal of management Studies.

John, B. and Jeffrey, G. (2003). Human Resource Management: Theory and Practice. 3rd edn London: Palgrave Macmillan

Marchington, M. and Wilkinson, A. (2002). People Management and Development. London: CIPD

McNamara, C. (1999). Human Resources Management. Retrieved Oct 21,2019, Available at: http://www.mapnp.org/library/hr_mgmnt/hr_mgmnt.htm/

Rose, R. C. and Kumar, N. (2006). The influence of organizational and human resource management strategies on performance. Performance Improvement, Vol. 45(4), 18-24.

The History of Human Resource Management (HRM) (2015) Consensus HR. Available at: http://consensushr.com/the-history-of-human-resource-management-hrm/