Executive Summary
Productivity in the workplace is an integral component of any organisation. Management practices are directly linked to the productivity and performance of an organisation. There are many research findings that provide evidence to link productivity and management. However, the studies provide mixed scenarios. The following paper is a case report on the use of Key performance indicators (KPIs), regular communications and meetings as a key performance indicator in enhancing the productivity of ROC Recruitment. ROC Recruitment is the trading name of MacBeattie Recruitment Ltd. The company was founded in 1991 by Debbie MacBeattie.
It offers professional recruitment services (Roc.co.uk 2015). ROC Recruitment boasts of having the best people in the industry. As a result, the company ‘consistently exceeds expectations’ by recruiting high-quality staff for organisations in different sectors (Roc.co.uk 2015). The company has been able to gain a competitive edge by putting in place strategies to build relationships with its customers in order to understand their specific needs (Roc.co.uk 2015). The company specializes in diverse recruitment areas such the banking, finance, office management, administrative and support.
Literature Review
Organisations are established in order to achieve certain objectives. The objectives are achieved by the utilisation of the resources such as human resource, technology and capital. One key resource is the human resource capital. In order to enhance the productivity of staffs, organisations put in place measures that success in the organisation is achieved. According to Birdi et al. (2006), human resource management (HRM) practices provide a significant component of promoting productivity. Park et al. (2003) conducted a cross-sectional study to investigate how skills, behaviors and attitudes of employees influence the productivity of an organisation.
The study involved 52 Japanese companies. The findings affirmed that HRM practices such compensation, communication and empowerment can motivate employees and hence positively influence the performance of an organisation. Similarly, a quasi-longitudinal study carried out by Paul and Anantharaman (2003) established that HRM practices have an indirect influence on the productivity of businesses. They affect operational and financial performance.
Another study was conducted by Birdi et al. (2006) to examine the role of some HRM practices on performance. The HRM practices that were studied included empowerment, learning culture and teamwork. Bird et al. (2006) audited the performance of 308 companies for 22 years. The findings established that there was a positive effect of empowerment on the productivity of the companies. On the other hand, the learning culture affected productivity on a context basis.
For instance, the impact team work on productivity showed mixed results. Despite the positive link between HRM practices and productivity, there are studies that have shown skepticism about the HRM practices and productivity. For example, Patterson, West and Wall (2004) conducted a study to analyse the effect of HRM practices such as empowerment in integrated manufacturing. The findings established that there was no relationship between the HR practice of empowering employees and the productivity in the integrated manufacturing. The findings of the study are contrary to the majority of literature that positively links HRM practices and productivity.
Jahanian et al. (2012) carried a study aimed at determining the HRM practices that contribute most to organisational productivity. The target organisations were banks. The research established that participation, compensation system, training and development of employees positively related to organisational effectiveness (Jahanian et al. 2012). For instance, the study tested communication as a variable, this was found to have a significant effect on the productivity. However, the perception of the employees regarding the various variables tested varied across the bank institutions incorporated in the study.
The above literature provides a clear indication that human resource management is a critical concept in relation to productivity of an organisation. As a result, human resource management practices that motivate employees and engage the employees influence the overall productivity of the organisation. However, it is worth noting that the practices should be carried in the context of the business type and the work environment.
Findings and Analysis
Findings
The core mandate of management in any organisation is to improve the productivity of the employees. However, the management practices that are geared to increase productivity differ. Study on how ROC Recruitment deals with the issue of productivity found that it uses KPIs as the basis for identifying and enhancing the productivity of employees. ROC Recruitment applies KPIs as the basis for evaluating the success and performance of its staff. The main aim of using the indicators is to ensure that the employees strive to meet their targets. In addition, the company applies communication and regular meetings with the staffs in order to motivate them and hence enhance performance.
Analysis
There have been a lot of empirical and qualitative studies that have been carried out to understand the relationship between the performance of organisations and the HRM practices. According to Paul and Anantharaman (2003), the elements of the scorecard are used by human resource managers to determine the success of the workforce. Paul and Anantharaman (2003) posited that the scorecard of employees is applied in designing empowerment and motivational strategies that can be used to enhance productivity. As a result, the KPIs serve as significant benchmark in the business sector. In order to enhance performance, HR practices should be designed to ensure efficiency and consistency in the application. In addition, Jahanian et al. (2012) noted that for organisations to enhance productivity, the HR practices adopted should relate to the work environment.
Communication is a crucial HR practice. Regular and effective communication is used by human resource managers to outline the goals of the organisations and the strategies that are required to achieve the goals. According to Park et al. (2003) communication empowers and motivates employees to work as a team towards the attainment of organisational goals. The integration of communication and regular meetings enhances the participation of employees in the organisational processes. As a result, the employees feel to be part of the business. This is paramount in motivating the employees. The study by Patterson, West and Wall (2004) established that motivated workforce is related to improved productivity. However, the communication and meetings should be based on a functional system that is appropriate for the company needs.
Recommendations
Improving productivity in the workplace is crucial for all organisations. Simple concepts can be applied to enhance productivity. However, the implementation of the concepts may not lead to the desired concepts. In order to enhance productivity, it is necessary to determine the needs of the organisation and the applicability of the concepts. The literature review established that different HR practices have direct or indirect effects on the performance of an organisation. Therefore, ROC Recruitment should ensure that its HR practices are implemented in a manner that motivates the employees.
For example, the KPIs should be integrated with a reward system. This will ensure that the KPIs are not regarded as punishment. Instead, the employees will be motivated to work harder to be rewarded. The regular communication and meeting should also be designed in a participatory manner that will create a sense of belonging to the company. This will ensure that strategies enhance teamwork and hence motivate employees to work together to attain the goals of the company.
References
Birdi, K, Clegg, C, Patterson, M, Robinson, A, Stride, C, Wall, T, & Wood, J 2006, ‘Contemporary manufacturing practices and company performance: a longitudinal study’, Academy of Management Journal, vol. 1, no. 1, pp. 1-14. Web.
Jahanian, A, Nawaz, N, Yamin, R & Nawaz, M 2012, ‘Human Resource Management and Productivity: A Comparative Study among Banks in Bahawalpur Division’, European Journal of Business and Management, vol. 4, no. 8, pp. 253-261. Web.
Park, H, Mitsuhashi, H, Fey, F & Björkman, I 2003, ‘The effect of human resource management practices on Japanese MNC subsidiary performance: a partial mediating model’, International Journal of Human Resource Management, vol. 14, no. 8, pp. 1391-1406. Web.
Patterson, M, West, M &Wall, T 2004, ‘Integrated manufacturing, empowerment and company performance’, Journal of Organisational Behavior, vol. 25, no. 5, pp. 641-665. Web.
Paul, A & Anantharaman, R 2003, ‘Impact of people management practices on organisational performance: analysis of a causal model’, International Journal of Human Resource Management, vol. 14, no. 7, pp.1246-1266. Web.
Roc.co.uk, 2015, About Us-ROC Recruitment. Web.