Discuss about the HR Outcomes Influencing Organisation and Employee Performance.
The mutual gains model by David Guest emphasizes that Human Resource Management should benefit both individuals and organizations. Most HR models have put their focus on performance improvement without considering the concerns of employees. This affects performance of overall business across various organizations (Guest 2017, p.22). Employees whose concerns are not met cannot perform at their maximum.
According to Katour & Budhwar (2017, p.43), most researchers have been concentrating on the skills, attitudes and behavior of employees. Hr practice does not necessarily lead to organizational performance. However, they influence the workforce by enhancing skills, attitude and behavior which are the outcomes leading to perfomance. This whole process is referred to as mediation and is exhibited through the mediation model or general causal model.
Attitude is a human resource outcome characterized by workforce motivation, commitment and satisfaction. A motivated workforce has a positive attitude and this greatly influences the performance of the business. Employees, who are motivated, love their work and are willing to put in extra hours to make sure that the business succeeds. Employees who have a great attitude are also committed to the organization and this reduces the turnover rate for an organization. A business, which does not have a high staff turnover rate, focuses on its core business and this enhances performance. Staff satisfaction leads to positive relationships in the workplace (Katour & Budhwar 2016, p. 7). Due to this, teamwork is enhanced and the business is able to perform well due to concerted team efforts.
Behaviour is a human resource outcome characterized by staff presence, staff retention and organizational citizenship behavior. The practices of an organization will lead to positive behavior by employees hence ensuring their presence whenever they are needed by the company. This means that whenever a new strategy is being implemented by the business, employees are supportive and always present hence enabling strategic objectives to be met by the business. Staff retention leads to a stable organization and this enhances business performance because the employees understand the organization well and do whatever they can to ensure success of business. Organizational citizenship behavior means employees are loyal to the organization (Katour & Budhwar 2017, p. 44). They do their part in ensuring that the business performs.
Skill is a human resource outcomes are characterized by staff competence, staff innovation and staff knowledge. Employees, who are competent, enable business perfomance as tasks are done correctly and the number of errors is generally reduced. Skilled workers are innovative as they come up with more creative ways, which enable a business to have efficient and effective processes (Katour & Budhwar 2016, p.7). Skill also means that employees are knowledgeable hence they are able to give great customer service which leads to retention and business growth.
To benefit both the individual and organization, three dimensions of mutuality have also been outlined. The first is capability matching, where an organization’s requirements for a competent workforce and individual need for positivity in the work environment is balanced. The second is a commitment match that balances an organization’s need for its staff to demonstrate commitment against staff need for job security and fair treatment. Thirdly, there is a contribution match where the individual and organization feel that their needs are met (Guest 2017, p. 44).This leads to positive exchange and ensures that there are mutual gains.
Overall, organizations should focus on HR practices that will lead to the outcomes of attitude, skills and behavior, which will then lead to business perfomance. Organizations should change their attitude of focusing only employee performance and failing to look at the underlying factors that lead to this performance. Adopting the mediation model is therefore a positive step for any organization that wants to enhance its perfomance.
Guest, D., 2016. ‘Promoting well-being needs a different approach to human resource management’, in Baczor, L. (ed.) in moving the employee well-being agenda forward, London: CIPD, pp. 6-7.
Guest, D.E., 2017. Human resource management and employee well?being: towards a new analytic framework. Human Resource Management Journal, 27(1), pp.22-38.
Katou, A. and Budhwar, P., 2017. ‘HRM and Firm Performance’, in Crawshaw, J, Budhwar, P. and Davis, A. (eds.) in Human Resource Management, Strategic and International Perspectives. 2ndedn. London: Sage, pp. 34-57