Running Head: DISSERTATION

Dissertation

[Name of the writer]

[Name of the institute]

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TABLE OF CONTENTS
Chapter 1: Introduction........................................................................................................3

1.1 Aim of the study........................................................................................................3

1.2 Background................................................................................................................3

1.3 Research Question.....................................................................................................4

1.4 Research Objective....................................................................................................4

1.5 Rationale of the study................................................................................................5

1.6 Problem Statement.....................................................................................................5

Chapter 2: Literature Review...............................................................................................7

2.1 Practices of HRM......................................................................................................7

2.2 Impact of HRM on employee engagement................................................................7

2.3 Impact of HRM on employee retention.....................................................................9

Chapter 3: Methodology....................................................................................................11

3.1 Research Philosophy................................................................................................11

3.2 Research Method.....................................................................................................11

3.3 Research Approach..................................................................................................12

3.4 Data Collection Method...........................................................................................12

3.5 Inclusion and Exclusion Criteria.............................................................................13

3.6 Data Analysis...........................................................................................................13

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3.7 Ethical Consideration...............................................................................................13

Chapter 4: Research and Findings....................................................................................15

4.1 Practices of HRM....................................................................................................15

4.2 Impact of HRM on employee engagement..............................................................16

4.3 Impact of HRM on employee retention...................................................................18

Chapter 5: Conclusion and Recommendation...................................................................20

References..........................................................................................................................21

Appendix............................................................................................................................26
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Chapter 1: Introduction

1.1 Aim of the study

The aims of the current study are used to analyse the effective practices of HRM. It also

aims to analyse the impact of HRM practices in order to find the employee engagement and

employee retention.

1.2 Background

It is noted that human resource management practices are essential for the development

of all organisations and firms all over the world. It is analysed that the main HRM practices

include recruitment of the employees and selection methods, individual market training,

productivity enhancement, appropriate communication systems, wellness assessment and

strategic planning for companies’ growth (Pandita and Ray, 2018). Human resource management

practices are one of the ways to develop employee management. This is due to the development

of numerous incentive courses and training programs, such as the development of systems to

assist and guide managers in continuous performance appraisal. HRM practices can improve

employee participation and thus productivity of the company in an effective manner. Employee

participation is a strong emotional relationship to work and organisation, and this satisfaction

outweighs employee satisfaction (Papa et al., 2018). Satisfaction enables employees to perform

well and enhance their skills and performance for their employers.

It is noted that dedicated employees in an organisation is essential therefore provide a

competitive advantage to them in contemporary market. It must therefore communicate with

employees on a daily basis for their employee participation (Presbitero, 2017). It is an approach

in the workplace to provide the right environment for the people of the organisation to do their
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best and commit themselves to the values and goals of the organisation and encourage them to

promote the success of the organisation. Employee participation is based on honesty, trust,

bilateral communication and commitment between the organisation and employees. It is a way to

increase business prospects and promote personal and organisational success, happiness and

productivity (Michael, 2019). Employee participation includes team coordination and it also

emphasis on clear goals, empowerment other employees.

By the help of employee engagement and retention companies can reliance on

constructive and regular responses and they also supporting the development of new skills and

acknowledging their success. It was decided that highly motivated employees were twice as

likely to work and retain in the organisation. Many human resource managers evaluate each

employee's performance quarterly or annually to help them identify development areas (Macke,

and Genari, 2019). Companies that clearly understand the impact of employee engagements can

better manage employee productivity. For this reason, accurate employee performance

management helps companies continue to achieve their goals and increase profits.

1.3 Research Question

The following research questions are used to fulfil the aims of the current study:

 What are the practices of human resource management in companies?

 What are the impact of human resource management on employee engagement?

 What are the impact of human resource management on employee retention?

1.4 Research Objective

The following research objectives are used to fulfil the aims of the current study:

 To analyse the practices of human resource management in companies.

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 To observe the impact of human resource management on employee engagement.

 To determine the impact of human resource management on employee retention.

1.5 Rationale of the study

It is important for researcher to understand the importance of human resources

management. It is noted that practices of human resource management have been vastly used in

different companies all over the world. However, human resource management plays a vital role

in organisation’s success. By the help of effective human resource management practices,

companies are able to make better interventions and it provide significant amount of success to

the organisation. In the current study, the researcher elaborated about the impact of practices of

human resource management on the employee performance, their engagement and also provide

information about the retention of the employee. The rationale of the current study, provide

insightful information about the impact of practices in HRM and it helps companies to find the

solution. It is noted that companies are facing challenges such as retaining issue of the staff

member.

1.6 Problem Statement

It is noted that employee engagement and employee retention has been considered as one

of the most emerging issue in the current business. Due to changing economy of the current

world, HR management and practitioners are making changes in their practices in order to

minimise the issue. It is analysed that engaged employees are providing immense amount of

assistance to firm in order to minimise the sudden change in the current economy of the world. It

is found that employee performance relies on the effective practices of the organisation.

Therefore, it is vital for the companies to find the innovative ideas and abilities in order to
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transform the current crisis situation into an effective opportunity. For this reason, the practices

of HRM plays an indispensable role in order to find the impact of employee performance and

employee retention.
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Chapter 2: Literature Review

2.1 Practices of HRM

Activities and policies in human resources have become an important part of the study of

employees relations, organisational and occupational psychology. It is important to understand

the human resource management practices and their relationship with employee participants and

retentions (Dechawatanapaisal, 2018). It is considered that the implementation of HRM involves

a variety of recruitment and selection processes, payroll management, performance management

systems and employee participation and development (Rubel et al., 2018). It also includes

information, skills and abilities of current and future employees. It helps to increase their

motivation, reduced prejudice and increased retention of employees, encouraged the work of the

employees for the betterment of the company. Previous research on this topic has shown a

relationship between positive employee participation and personal and organisational success. It

is articulated in the study of Garg, Dar and Mishra (2018) that a very motivated workforce

creates a competitive advantage for companies and increase their revenue in an effective manner.

Therefore, employee participation is constructive in relation to the overall success of an

organisation. For this reason, HRM practices emphasises on the employee participation and it is

considered a positive work-related mentality (Qasim and Rashidi, 2018). This concept has

suffered many setbacks among scholars and researchers, as early tests have established a positive

relationship between productivity and employee participation.

2.2 Impact of HRM on employee engagement

In recent years, the causes and consequences of employee engagement have become very

important and have attracted the attention of human resources managers and senior management
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of many companies. It is noted that several researchers have begun to focus on this topic to gain

a better understanding. The researchers also analysed two types of employee engagement, that is,

engagement with other employees and engagement in organisation. According to the study of

Mousa and Othman (2020) it is found that both of them are related but the structure is different.

Furthermore, it is noted that the relationship between work and organisational obligations and

their effects is very different and points out that psychological conditions and consequences lead

to organisational work and obligations in different ways. Most human resource managers face

the challenge of attracting employees (Qasim and Rashidi, 2018). It is found from the survey by

an international consulting firm that four out of ten employees worldwide are facing issue of

employee engagement within the organisation (Zaid, Jaaron and Bon, 2018). Moreover, it is

suggested that managers should examine employees’ feelings by questioning their thoughts. For

this reason, they have to improve their work environment. The initiative and activities of each

organisation may vary depending on the size, resources and culture of the organisation.

Employee engagement emphasises the participation and commitment of employees,

especially for the organisation of service providers, as employee engagement depends on aspects

of work such as HRM practices. In another study, they summarised their findings on HRM

practices, but the relationship between employee engagement is still unclear and there is room

for human resource management and research (Saeed et al., 2019). It can also be seen that

different human resource management methods influence the behaviour of employees in

different ways. Therefore, it is important to develop effective human resource management

practices rather than the number of human resources that provides detailed information on

employee engagement (Dechawatanapaisal, 2018). Research has shown that work-related norms

do not necessarily reduce employee engagement, as other organizational measures such as

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perceived organisational support can offset the impact of bad work-related factors on employees.

Human resource management practices are examined by forming the views, behaviours and

attitudes of employees (Barrena-Martinez et al., 2019). In today's rapidly changing economic

environment, employee engagement has become one of management’s priorities. The existence

of senior employees is important for the growth, prosperity and survival of all institutions.

2.3 Impact of HRM on employee retention

Human resource management recognise that competitive employees can improve

innovation, creativity and productivity in a competitive talent market and reduce recruitment and

retention costs (Alzyoud, 2018). Experiential research on the impact of employee retention on

productivity revealed that the majority of employees believed that employee retention is

important for the overall performance of an organisation. It is found that employee retention is

considered as one of the main and important focus of HRM practices and it has a significant

effect on organisational growth. In most organisations, managers recognise the need to retain

their experience employees (Keegan, Ringhofer and Huemann, 2018). The link between

commitment and employee retention requires a lot of effort from organisation and HRM plays a

vital role in it. They found a strong relationship between employee engagement and employee

retention and their impact on companies’ progress. It is found that that employee retention and

satisfaction are related to significant business success therefore it is important to many

organisations. Personal attitudes, intentions and behaviours are important decisions for employee

retention. Employee retention has proven to improve job quality, growth and productivity (Singh

et al., 2020). HRM practices need better interventions in order to increase their employee

retention and therefore they have to adopt workplace-related approach that creates the best

possible conditions for them. Research on employee retention has become very important in
 11

companies and researchers have examined the differences in their HRM practices in order to

increase employee retention (Alzyoud, 2018). Employee retention is important because they can

have a direct impact on all relevant staff, especially researchers and management professionals.

Therefore, it is strongly recommended to develop HRM practices and strategies according to

employee retention and in order to make a better workplace (Katou, 2017).

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Chapter 3: Methodology

3.1 Research Philosophy

Research philosophy is considered one of the most important and reliable aspects of the

methodology chapter. It should be noted that the researcher's philosophy requires adequate

guidance and adequate measures to achieve the objectives and aims of current research. With the

help of research philosophy, researcher can efficiently gather relevant data and information.

There are four research philosophies, but interpretivism philosophy is the best choice for current

research (Alharahsheh and Pius, 2020). It should be noted that interpretivism philosophy is

needed to support secondary data and information and also surveys and questionnaires.

3.2 Research Method

Researchers generally rely on research methods to gather high-quality data and achieve

research goals in an effective manner. It is noted that research methods can be used in ongoing

research to analyse data and information efficiently. There are three different types of research

methods such as quantitative, qualitative and mixed method. It should be noted that quantitative

research methods are based solely on numerical values and focus on surveys and various

questionnaires. On the other hand, qualitative research methods are based on non-numerical

values and therefore secondary data can be used in this kind of research (Rutberg and Bouikidis,

2018). However, in the current study, researchers have used mixed method in order to collect

data and information. Therefore, the researchers conducted surveys and questionnaires and used

previously published articles and reviews to add background information for the current study.
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3.3 Research Approach

It is noted that the research approach is very important for the researcher to search well

and gather relevant information. Therefore, researchers emphasise the use of appropriate

research approach to develop effective strategies and procedures to provide answers to research

questions. It is analysed that there are two types of research approaches such as inductive and

deductive approach (Ditlmann and Kopf-Beck, 2019). In the current study, researchers used the

induction approach, which is best suited for questionnaires and surveys and also for secondary

data and information.

3.4 Data Collection Method

Different researchers use different data collection methods in their researches. It is very

important for them to use effective data collection methods based on the nature of research.

However, in the current study, researchers have used surveys and questionnaire in order to gather

primary data and information (Chen et al., 2020). On the other hand, researchers have also

extracted data and information from previously published articles, reviews, and papers. It should

be noted that the researchers used various databases such as “Google Scholar”, “Emerald” and

“Academia” to gather relevant information to achieve the goals and objectives of this study.

However, search terms are required to effectively support information. The current study has

used following search terms are used to collect verifying data, such as “Human Resource

Management”, “Practices of Human Resource Management” “Employee Retention”, and

“Employee Engagement”.
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3.5 Inclusion and Exclusion Criteria

It should be noted that inclusion and exclusion criteria are important for the current

research to gather relevant data, with the exception of irrelevant information. In this study,

researchers used all studies published after 2012. It should also be noted that only articles and

journals have been collected in English (Patino and Ferreira, 2018). It is because in order to deal

with translation issues, all non-English articles and papers have been excluded from the current

search. On the other hand, it is important that researchers exclude all irrelevant sources such as

Wikipedia and unpublished articles.

3.6 Data Analysis

Researchers are used to analyse data for a successful data analysis and are therefore

considered an important part of the methodology section. It is important to understand that

different data analysis can be used to analyse the information and data. However, in this study,

the researchers are using content analysis to analyse data collected from surveys and

questionnaires and to effectively interpret information with reliable resources such as secondary

data (Graneheim, Lindgren and Lundman, 2017). Therefore, content analysis is appropriate

because it is flexible and requires less time for data analysis.

3.7 Ethical Consideration

For current research to be reliable and trustworthy, researchers need ethical

consideration. Researchers must effectively apply ethical principles and avoid legal issues in

order to use them in future research. It is important for researcher to follow the ethical guidelines

and make confidentiality of the participants in the current survey and questionnaires. Therefore,

researchers must be informed about the consent before the surveys and questionnaires can take
 15

place (Cammaerts, 2020). In addition, researchers must respect previously published scholars

and researchers and provide appropriate in-text citation for the work in order to make it authentic

and reliable.
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Chapter 4: Research and Findings

4.1 Practices of HRM

It is noted that there are several factors which can influence employee engagement and

retention. From work culture, organisational communication and leadership style to trust and

respect, leadership and company reputation are vital HRM practices. Employees and human

resource managers communicate with each other and each plays an important role in ensuring the

success of the employee engagement and retention (Veth et al., 2019). It is noted that in order to

develop professionalism, human resources must take a leading role in the development,

measurement and evaluation of policies and practices in the workplace to attract and retain

talented employees with the skills and abilities necessary for growth and sustainable

development. It is analysed that people leave the company instead of a manager, and it is

important for the manager to be actively involved in management staff. It is no secret that

engagement and retention is the primary goal of an organization (Gope, Elia,and Passiante,

2018). Therefore, it is analysed that skilled labour can support growth with many benefits,

including higher productivity and profits, lower incomes and happier customers. Therefore,

HRM practices such as Learning and Development (L&D) can make a big difference in the

organisation and it can make significant progress in supporting the participation of older

employees and the growth of companies. It provides employees with basic training opportunities

and development can only contribute to the development of qualified employees.

On the other hand, the current research has shown that learning and development are key

to integration and most of the participants in the survey are in favour of increasing and

development opportunities. According to CIPD (2017) survey, most of the employees said that

opportunities for learning and development helped them feel more connected at work. Therefore,
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investment in employee training and development shows that employees are valued. When

people consider themselves valued, they are less likely to leave the organisation (Bos-Nehles,

Renkema, and Janssen, 2017). According to LinkedIn's internship report from 2018, 94% of

employees said that if a company invests in professional development, it will get more profit and

increases its productivity. When a company invests in the growth of employees, they can see that

they can achieve their personal growth goals in the organisation and then their commitment to

the company and its goals increases (Korauš, Kaščáková, and Felcan, 2020). In order for an

organisation to grow and achieve the goals of organisational change in a row, a strong leadership

team must be ready to take on important roles. Learning and development ensures that new and

existing leaders have the knowledge and skills to lead others and provide coaches with learning

and development opportunities. Leadership development teaches people to behave in an

appropriate manner (Ahmad et al., 2019). In addition, the program provides management with

the tools to prepare teams for change and helps all employees feel confident and positive about

the change.

4.2 Impact of HRM on employee engagement

When people come together as a team, there is guarantee that they will share information

and resources or continue to work towards the team’s goals. However, development plans and

learning improve the team’s ability to work effectively (Heilmann, Forsten-Astikainen, and

Kultalahti, 2020). These initiatives teach people how to communicate, resolve conflicts and help

each other and contribute more to the development of the organisation. In addition, as team

relationships become more positive, employees become more motivated by the help of HRM

practices and it increases employees’ engagement. In the SHRM report, 77% of employees’

survey mentioned peer relationships as an important factor. By having the knowledge and skills
 18

to become a productive member of the team, individuals can better support the success of the

organisation as a whole (Rodriguez and Stewart, 2017).

Learning and development opportunities provide employees with the experience and

skills necessary to support the agency’s goals. By improving engagement and leadership,

learning and development programs can ensure that people can support the future development

of an organisation. Employee satisfaction and engagement survey measures eight different

dimensions of employee experience, including employee engagement with available training,

development and resources (Manzoor et al., 2019). From the point of view of the best employer,

investing in employee training and development is a significant risk. Employers with high

employee engagement understand the value of investing in education and training. The results

include greater productivity, greater efficiency and broader innovation. The adaptation not only

involves the training of new employees but also contributes to their adaptation to the corporate

culture. It is noted that detailed guidance should also be provided on how to access the processes,

procedures and equipment required by employees to perform their duties and access benefit

information (Malik and Lenka, 2019). It is also helpful to educate about new plans and

developments in industry so that employees are aware and understand it in an effective manner.

HRM practices such as cross-training can be effective for companies and enable employees to

develop and discover new skills. Therefore, having improved induction process to do a good job

is another key factor in the workplace. It is important to consider what resources employees need

to use for each job in the organisation to achieve maximum results and then provide those

resources (Bibi, Ahmad and Majid, 2018).

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4.3 Impact of HRM on employee retention

Various studies have shown that induction process has a direct effect on employee

turnover and retention. It is noted that more than 25% of new hires decide to stay or retire within

the first week of work (Masoud and Tariq, 2020). Therefore, according to the current survey,

improved induction process is very important for the organisation and it should be a priority for

company to offer a successful initial training program. Induction process is the first training

program that engage employees in after joining an organisation (Uddin, 2018). The induction

process gave companies all the information they need to get to work and increase employee

engagement and retention. If an employee is well trained in the induction process, he can easily

adapt to a new job and succeed quickly. This can save the organisation a lot of money and time.

People have high hopes for joining a company and at the same time they have many questions

about the organisation (Devyania et al., 2020).

All of these questions need to be answered during induction process. Ineffective

induction process confuses new hires and therefore, it can result in the failure of employee

retention. If employees are not properly trained, they can become frustrated and helpless. On the

other hand, successful induction process has greatly increased engagement and reduced staff

turnover (Lauzon, 2020). When employees adapt and participate in the work culture of the

organisation, it helps to improve the performance of employees quickly. Overall, this has

significantly increased the association’s efficiency. Quality induction process greets the

employee warmly and tries to explain all their queries about the organisation and the situation.

Therefore, it is important for them to ensures that new hires are happy with the firm. The HRM

practices such as induction process can make employees welcome, respected and valued and this

is very encouraging for new hires (Easa and El Orra, 2020). A comprehensive on-board plan can
 20

help new hires get all the information they need about the company and explain what the firm

expects. Induction process helps new hires establish good relationships with the organisation and

it can increase their engagement. According to the current survey it is found that companies that

do not get the right induction process can lose new hires faster as compared to other countries.

Therefore, approximately 25% of new hires decided to quit a new company in the first week and

in the third month this can be increased to 47% (Masoud and Tariq, 2020). Basic training enables

new hires to maximise their work efficiency as quickly as possible. Many companies have found

that the cost of not getting training is greater than the cost of training. Therefore, the risk of

making a decision not to train new employees in the company is even greater.
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Chapter 5: Conclusion and Recommendation

In today's dynamic business environment, the level of uncertainty is increasing

exponentially. Human resource management practices have proven to be an important part of

employee engagement, performance and their retention. It is concluded that HRM practices and

their relationship to employee engagement, performance and retention helps organisations to

compete and serve society and stakeholders. It is also concluded that HRM practices such as

procurement, payroll management, learning and development, performance management, well-

being, job opportunities have a significant impact on employee engagement and retention.

Therefore, HRM are encouraged to find the right combination of these methods to mobilise their

employees effectively and increase productivity. The current study is based on a cross-

examination by using surveys and questions to collect data and makes it possible to draw a

causal relationship from the results of the study. Although it provides information to HRM

practices and related to employee participation, it highlights the combination of many HRM

practices to better predict employee engagement and retention. Employee performance also

depends on the extent to which human resource management methods are applied. As a result,

future research may lead to various aspects of HRM. In addition, current research covers aspects

such as the acquisition of HRM practices, training and development, payroll management, social

security, employment opportunities, performance management. The impact of other forms of

HRM such as teamwork, staffing, improved security and work-life balance on employee

participation and performance for further research. It is recommended that researchers should

look at the role of external factors that influence the organisation, such as modern technology

and practices, in improving employee engagement and retention.

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Appendix

According to CIPD (2017) annual report; The median rate of labour turnover has

increased again since our last survey and sits at 16.5% More than four-fifths of organisations had

challenges retaining one or more category of staff in 2016, and this represents an increase from

previous years; however, just two-fifths of organisations undertook specific initiatives to

improve staff retention in 2016. The most popular step taken to improve staff retention was

through increasing learning and development opportunities (57%). This is followed by an

improved induction process (56%) and improved benefits (50%). Retention difficulties Retention

difficulties are on the rise: More than four-fifths of organisations had challenges retaining one or

more category of staff in 2016, and this represents an increase from previous years (2016: 84%;

2014: 77%; 2012: 78%; 2011: 66%; 2010: 58%; 2009: 55%; 2008: 69%).

Table: Median labour turnover rates, by reason for leaving (CIPD,2017)

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