You are on page 1of 64

CATHOLIC UNIVERSITY COLLEGE OF GHANA, FIAPRE

FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION

AN ASSESSMENT OF HUMAN RESOURCE MANAGEMENT PRACTICES


AND ORGANISATIONAL PERFORMANCE: A CASE OF ASUTIFI NORTH
DISTRICT ASSEMBLY.

BY
FELICITY ABABIO

A LONG ESSAY SUBMITTED TO THE FACULTY OF ECONOMICS AND


BUSINESS ADMINISTRATION IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE DEGREE
IN ECONOMICS AND BUSINESS ADMINISTRATION

JUNE 2015

DECLARATION
Students Declaration:
I, Felicity Ababio, hereby declare that, except for reference to other peoples work
which has been duly acknowledged, this research project consists of my own work, and
that no part has been published, nor presented for any degree elsewhere.

Signature:
(Candidate)

Date:..

Felicity Ababio
(Name of Candidate)

Supervisors Declaration:
I, Mr. Mustapha Osman, hereby declare that the preparation of this research project was
in accordance with the guidelines on supervision of dissertation laid down by the
Catholic University College of Ghana, Fiapre.

Signature:
(Supervisor)
Mr. Mustapha Osman
(Name of Supervisor)

Date:.

DEDICATION

This research project is dedicated to my parents.

ACKNOWLEDGEMENT

My warmest gratitude goes to God almighty for a successful project work. I wish to
express my sincere gratitude to Mr. Mustapha Osman of CUCG, Fiapre, my supervisor
for his relentless supervision.

ABSTRACT

This study assessed Human Resource Management (HRM) practices and Organisational
Performance at Asutifi North District Assembly. The study posed the following sub
objectives: to identify the HRM practices in place at Asutifi North District Assembly, to
identify HRM practice problems at Asutifi North District Assembly and to investigate
the impact of HRM practices on Asutifi North District Assembly performance. These
objectives were put forth in order to find the HRM practices in place at Asutifi North
District Assembly and the problems encountered in such HRM practices. And again, the
impact of such practices on the district. This study was descriptive. A survey of 127
staff at post with management being 15 and 112 Staff were given questions to answer on
the HRM practices and the problems encountered courtesy the HRM practices. The staff
were given questions to answer on the impact of HRM practices on the Assemblys
performance. The results of the study indicates that: (i) there is no conducive physical
work environment for staff performance at the Assembly, (ii) there is a fair degree to
which merit is recognized or unsatisfactory performance penalized at the Assembly, (iii)
the mode of promotion in the Assembly is transparent and well-structured and (iv) good
human relations with superior, occupational health and safety, salary, and opportunity
for career development motivate Assembly staff to stay. Transfer of staff is the main
effect of government interference in HR base and capacity at the Assembly which
creates HRM practice problems at Asutifi North District Assembly. And HRM practices
have a positive impact on the Assemblys performance. The study recommends that
more training programmes should be organised by management for staff at least twice a
year to equip them with the requisite knowledge and skills to enable them contribute
their quota to the performance of the Assembly. Constant review of the HRM practices
for Asutifi North District Assembly to move with time should be employed.

TABLE OF CONTENTS
Page
Title Page...i
Declaration........................................................................................................................ii
Dedication........................................................................................................................iii
Acknowledgement............................................................................................................iv
Abstract.............................................................................................................................v
Table of Contents.............................................................................................................vi
List of Tables..................................................................................................................viii
List of Figures..................................................................................................................ix
Abbreviation......................................................................................................................x
CHAPTER ONE: INTRODUCTION
1.1 Background of the study..........................................................................................1
1.2 Problem Statement...................................................................................................3
1.3 Research Objectives.................................................................................................4
1.4 Research Questions..................................................................................................5
1.5 Significance of the Study.........................................................................................5
1.6 Scope and Limitation of the Study..........................................................................5
1.7 Organisation of Chapters.........................................................................................6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction.............................................................................................................8
2.2 Theoretical Framework............................................................................................8
2.2.1 District Assembly Concept in Ghana..............................................................11
2.2.2 The role of Metropolitan/Municipal/District Assemblies...............................12
2.2.3 HR Problems in the District Assemblies.........................................................12
6

2.2.4 Factors that influence HR capabilities at the District Assemblies..................14


2.2.5 HR functions...................................................................................................15
2.2.6 HRM Practices................................................................................................16
2.2.7 Employee Job Performance............................................................................19
2.2.8 HRM Practices and Employee Job Performance............................................19
2.2.9 Organisational Performance............................................................................21
2.2.10 Human Resource Management and Firm Performance................................22
2.3 Empirical Evidence................................................................................................23
CHAPTER THREE: METHODOLOGY
3.1 Introduction...........................................................................................................25
3.2 Study Design..........................................................................................................25
3.3 Study Type.............................................................................................................25
3.4 Study Area.............................................................................................................25
3.5 Study Population................................................................................................27
3.6 Sample/ Sampling Techniques...........................................................................27
3.6.1 Sampling Frame..............................................................................................28
3.6.2 Sample Size.....................................................................................................28
3.7 Data Collection Tools............................................................................................28
3.8 Data Analysis Method............................................................................................29
3.8.1 Study Variable.................................................................................................29
3.9 Ethical Considerations...........................................................................................29
CHAPTER FOUR: DATA PRESENTATION AND DISCUSSIONS
4.1 Introduction...........................................................................................................31
4.2 Presentation of Results..........................................................................................31
4.2.1 Presentation of Results for Management........................................................31
4.2.2 Presentation of Results for Staff.....................................................................36
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings............................................................................................39
5.2 Conclusion.............................................................................................................40
5.3 Recommendations..................................................................................................41
References...................................................................................................................42
7

Appendix........................................................................................................................50

LIST OF TABLES

Table 1: Conduciveness of physical work environment for staff performance...............31


Table 2: Degree to which merit is recognized or unsatisfactory performance penalized32
Table 3: View on the mode of promotion in the Assembly.............................................32
Table 4: Factor(s) that motivate the Assembly staff to stay............................................33
Table 5: Acceptance of posting to other districts particularly deprived areas.................34
Table 6: Effect of government interference in HR base and capacity.............................35
Table 7: Staff reception of training and development programme since inception as a
staff at the Assembly.......................................................................................................36
Table 8: Staff assessment of their job performance in relation to training/development
programmes received from the Assembly.......................................................................37

LIST OF FIGURES

Figure 1: Conduciveness of physical work environment for staff performance.............31


Figure 2: Degree to which merit is recognized or unsatisfactory performance penalized
.........................................................................................................................................32
Figure 3: View on the mode of promotion in the Assembly...........................................33
Figure 4: Factor(s) that motivate the Assembly staff to stay...........................................34
Figure 5: Acceptance of posting to other districts particularly deprived areas...............35
Figure 6: Effect of government interference in HR base and capacity...........................35
Figure 7: Staff reception of training and development programme since inception as a
staff at the Assembly.......................................................................................................36
Figure 8: Staff assessment of their job performance in relation to training/development
programmes received from the Assembly.......................................................................37

ABBREVIATION

CUCG: Catholic University College of Ghana


DAs: District Assemblies
GCGL: Graphic Communications Group Limited
HRD: Human Resource Department
HR: Human Resource
HRM: Human Resource Management
MMDAs: Metropolitan, Municipal and District Assemblies
MLGRD: Ministry Government and Rural Development
PM: Performance Management
RM: Reward Management
R&S: Recruitment and Selection
SET: Social Exchange Theory
SPSS: Statistical Package for Social Science
T&D: Training and Development
US: United States
UK: United Kingdom

10

CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Most organisations aim to generate the kind of performance that can bring more
profit. In order to do this, the employees are required to perform well and improve.
From an organizational perspective human resource (HR) encompasses the employees
who offer different skills, abilities and knowledge that may or may not be appropriate to
the needs of the business. In management terms, HR refers to the traits people bring to
the workplace - intelligence, aptitude, commitment, tacit knowledge and skills and the
ability to learn. However, the contribution of this HR to an organizations performance
is typically variable and unpredictable. And this in the view of Bratton and Gold, (2003)
make the HR the most vexatious of the assets to manage. In view of this, Armstrong
(2001) calls for Human Resource Department (HRD) to perform four vital functions
such as training and development (T&D), recruitment and selection (R&S),
performance management (PM) and reward management (RM).
However, no matter how hard the HRD performs, De Cenzo and Robbins (1994)
notes that the fact remains that few, if any, new employees can truly come into an
organization and immediately become fully functioning, 100% performers. It takes a
number of months (depending on the job) before employees get use to their new
working environments. This is when Human Resource Management (HRM) is very
important. Storey (2001) defines HRM as a distinctive approach of employment
management which seeks to achieve competitiveness through the strategic development
of a highly committed and capable workforce, using an integrated array of cultural,

structural and personal techniques. HRM plays an important role in reshaping this
reformation of new employees so that within a short period of time, they too, will be
fully functional and productive.
However, the HRM cannot perform these functions unless through a feasible
strategy. The concept of the HR system as a strategic asset has implications for both the
characteristics and the effects of such a system. Strategic assets are "the set of difficult
to trade and imitate, scarce, appropriable, and specialized resources and capabilities that
bestow the firm's competitive advantage" (Amit & Shoemaker, 1993: 36). In this regard,
when discussing relationship between the human resource management strategy and the
organizational performance, Delaney and Huselid (1996) found that some of the more
progressive human resource management strategies, including careful selection at
appointment, training and incentive compensation, have a positive effect on the
organizational performance. Li (2000) also found that such human resource
management strategies as training, information sharing and participative management
are helpful in promoting the organizational performance.
Furthermore, Huselid (1995) proved by empirical study that a system with an
optimal human resource management strategy (high-performance systems) can increase
the organizational performance no matter what organizational strategic objectives of an
enterprise are. Correspondingly, Delery and Doty (1996) claimed that an optimal human
resource management strategy has a close relation with the organizational performance.
In the past researches related to the human resource management strategy, it has been
proved that human resource management strategy has a significant correlation with the
management performance, productivity, financial performance and market value of an

organization. In other words, the human resource management strategy has a positive
correlation with the organizational performance (Arthur, 1994; Delery and Doty, 1996;
Youndt, 1998; Huang, 2002). Huselid (1995) thought that effective human resource
management strategies, including recruitment and selection, performance evaluation,
incentive compensation, information sharing, attitude assessment, complaint handling
procedure, work design, labour participative management plans, performance rewards,
etc., can promote the organizational performance and relate with the high organizational
performance. Delaney and Huselid (1996) also indicated that innovative human
resource management strategies such as careful selection, training and incentive
compensation have a positive correlation with the organizational performance.
Despite several studies that exposed the positive effects of HRM on an
organizations performance, there are in fact difficulties with how and what to measure
regarding effective HRM practices, level of measurement, and measuring the outcomes
of HRM on organizational performance (Bamberger and Meshoulam 2000;
Kanter1981). The gap that exist in this area of research is that assessment of HRM
practices and organizational performance has not been done at Asutifi North District
Assembly and this study hopes to bring it to light.
1.2 Problem Statement
The problem currently facing Asutifi North District Assembly include
recruitment and selection, employee training and development, and performance
appraisal which is having a drastic effect on the district. Thus inadequate human
resources with requisite skills and competence to perform the various tasks of the
assembly. For instance, the absence or inadequacy of development planners in the
district constitutes a major constraint on the establishment and effective operation of the
3

district planning coordinating units in the districts (Botchie, 2000). In this regard,
Appiah (1996) cited in Thomi and Yankson (2000) observed that the DAs have been
accorded administrative, deliberative, legislative and executive functions. These
functions will however, be meaningless if the DAs lack the staff with the capacity,
managerial know-how, expertise, loyalty and commitment to deliver quality, affordable
and timely services to their constituent populace. This capacity which gives meaning to
effective and vibrant local government system has however been found wanting and
indeed been recognized as a possible weak link of decentralization which hampers
performance of the Assemblies.
It is known that HRM can positively affect organizational performance.
Numerous studies have shown a positive relationship between HRM practices and
organizational performance. However, previous studies in Ghana are quite limited in
investigating this phenomenon particularly at the DAs level.
1.3 Research Objectives
The main research objective was an assessment of HRM practices and
organisational performance in Asutifi North District Assembly. Other objectives the
study posed include:
1
2
3

To identify the HRM practices in place at Asutifi North District Assembly.


To identify HRM practice problems at Asutifi North District Assembly.
To investigate the impact of HRM practices on Asutifi North District Assembly
performance.

1.4 Research Questions


The main research question was, what are the assessment(s) of HRM practices
and organisational performance in Asutifi North District Assembly? Other questions the
study posed include:
1. What are the HRM practices in place at Asutifi North District Assembly?
2. What are the HRM practice problems at Asutifi North District Assembly?
3. What is the impact of HRM practices on Asutifi North District Assembly
performance?
1.5 Significance of the Study
HRM has become a very vital instrument owing to its immense contribution to
organisations today. There is therefore the need to study and evaluate the system on
organisational performance at the Asutifi North District Assembly. As a result of this,
the research will help the Assembly, business or marketing practitioners, policy makers
and stakeholders to know the factors that influence HRM practices to improve their
organisational performance. Again, the research is intended to identify the HRM
practice problems at Asutifi North District Assembly. Besides, the research is expected
to identify the HRM practices in place at Asutifi North District Assembly. Ultimately,
the research is also designed to help become a scholarly document for further studies by
students who might have the opportunity of making further findings on HRM practices
and organisational performance.
1.6 Scope and Limitation of the Study
This study assessed HRM practices and organisational performance in Asutifi
North District Assembly. This implied other District Assemblies were excluded in this
study which also meant the results and findings reported in this study could not be
applied to the other District Assemblies in Ghana but the results and findings were
placed in the relevant context of the Asutifi North District Assembly.
5

In the course of this study, the researcher faced the problem of combining work
with academics. This put a lot of pressure on the researcher who was inexperienced in
the research field. Hence a comprehensive study was not done. The researcher works at
Asutifi North District Assembly and so travelling every week to see the supervisor was
time consuming and caused undue cost on transportation. As it is very difficult to get
official information from public organisations in Ghana, the researcher went through
bureaucratic processes which was in effect time consuming and frustrating. In all these,
the researcher ensured that a valid study was ensured.
1.7 Organisation of Chapters
This study consist of five chapters. Chapter one gives an introduction to the
whole study. The chapter consists of the background of the study, problem statement,
research objectives and questions, significance of the study, scope and limitations of the
study, and organisation of the chapters. Chapter two of the study reviews relevant
literature on HRM practices and organisational performance. Sub-topics considered
include: Introduction, Theoretical Framework, District Assembly Concept in Ghana,
The role of Metropolitan/Municipal/District Assemblies, HR Problems in the District
Assemblies, Factors that influence HR capabilities at the District Assemblies, HR
functions, HRM Practices, Employee Job Performance, HRM Practices and Employee
Job Performance, Organisational Performance, Human Resource Management and Firm
Performance, and Empirical Evidence. Chapter three is about the methodology used in
gathering the relevant data for the study. Sub-topics seen under this chapter are
introduction, profile of study area, study type, study variable, study population, sample
size and sampling technique, research design, data collection tools/instruments, data

analysis method, ethical consideration. Chapter four looks at presentation of results and
discussion. Chapter five looks at conclusions and recommendations.

CHAPTER TWO
7

LITERATURE REVIEW
2.1 Introduction
This chapter reviews relevant literature from text books, journals, articles and
other publications that are relevant to assessment of HRM practices and organisational
performance. It specifically looks at HRM practices, problems of HRM practice, and
the impact of HRM practices on performance.
2.2 Theoretical Framework
The relationship between HRM practices and performance has been studied by
focusing on several models fronted by a number of researchers. Consequently a number
of theories relevant in this relationship need to be explained and applied in the context
of HRM practices and firms performance. Various models linking Human Resource
Management to organizational performance have been formulated by several authors
(Becker et al. 1997: Guest 1997: Appelbaum et al. 2000). Notably these models have
distinct approaches to the study of the link between HRM and performance. These
include: (i) Appelbaum Model - Appelbaum et al. (2000) model has three boxes. The
first box covers high performance work systems and includes ability, motivation and
opportunity to participate. The next box contains effectively discretionally while the last
box reflects the plant performance. (ii) Becker Model - Becker et al. (1997) model
addresses the design of HRM system. The model has seven boxes starting with business
and strategic initiatives and ending with market value. (iii) Guest Model - Guest et al.
(1997) identifies a model that links Human Resource Management and performance.
The model has financial performance as the indicator of performance. This research will
approach performance on two fronts. Such includes financial performance and human
resource effectiveness. This is due to the fact that the field of Human Resource
8

Management is against using human resources as vehicle of achieving financial


performance without considering issues that make human resources committed,
satisfied and happy.
Several theories were important in this research. One of this is the human capital
theory. Torrington (2008) explains that human capital signifies the combined
intelligence and experience of staff as a source of competitive advantage that cannot be
imitated by rivals. This theory has implications thus for attracting, engaging, rewarding
and developing people in organizations. The theory has cross cutting significance in
HRM practices. In the context of the current study Human capital theory will be the
umbrella theory to underpin this study. It is useful in the context of financial
cooperatives because HRM practices to be studied in this research must ensure these
organizations attract and retain employees. Investments in Human resources in financial
cooperatives need to be done by the use of training practices.
Additionally, this study was underpinned by the expectancy theory. Armstrong
(2010) discusses this theory. In the expectancy theory, motivation is likely to be when
there is a perceived and usable relationship between performance and outcome, with the
outcome being seen as a means of satisfying needs. In other words a there must be a
link between a certain reward and what has to be done to achieve it. This theory is very
important in the context of this research. The theory is instrumental especially when
financial cooperatives are designing performance based pay. Reason for this is that
management of financial cooperatives needs to design performance based pay so as to
ensure these organizations continue to improve their performance. In the Kenyan
context, financial cooperatives are aiming to offer services that have been a preserve of

banks. To compete favorably with banks, financial cooperatives need not only to offer
competitive rewards but also to go an extra mile to link some categories of rewards to
performance.
To understand performance management practices, the goal theory was adopted
in this study. According to Mullins (2010) the goal theory has implications for
managers. To direct behavior and maintain motivation, performance goals should be
identified and set to direct behavior. To ensure high performance, goals should be set at
a challenging but realistic level. Additionally, to guarantee high performance, feedback
must be given as means of checking goals attainment and a basis for any revision of
goals. Lastly, when goals are set by other people for instance managers, participation of
those tasked with achievement of goals is of paramount importance. The implications
discussed above can be used by financial cooperatives so as to design a performance
management system which is appropriate and also to ensure high performance.
Attraction selection attrition theory was adopted in this research as it explains why
people are attracted to organizations.
In most cases recruitment and selection practices are carried out after initial
attraction of employees to the organization. It must also be stated that attraction is
bidirectional. This is to say that the organization before recruiting and selecting
candidates for positions also gets attracted to a pool of talent with specific attributes that
might be existing outside the organization. The Attraction selection theory is relevant to
this research as it explains attraction, selection and retentions of employees by
organizations. According to Schneider (1987) organizations attract, select, and retain
those people who share their values.

10

2.2.1 District Assembly Concept in Ghana


DA is a local government structure with a population of between 75,000 and
95,000. A District Assembly consists of the District Chief Executive, who is the chief
representative of central government in the district, elected and appointed assembly
members and the Member(s) of Parliament representing constituencies in the district.
Local governance in Ghana has gone through various reforms since the
introduction of native authorities by the colonial government in 1878. In 1988, the
assembly system of local government was introduced, making the assembly the highest
political, executing and administrative authority at the local level and giving the
regions, coordinating, supervising and monitoring responsibilities. District Assemblies
are variously called Metropolitan, Municipal and District Assemblies (MMDAs). Their
demarcation is based on population size. A metropolitan assembly is a local government
unit with a population of 250,000 and above. Municipal assembly has a population of
95,000 and a District assembly has a population of 75,000.
Before February 2008, there were 138 Assemblies in the country made up of
four (4) metropolitan assemblies, ten (10) municipal assemblies and one hundred and
twenty four (124) district assemblies. However, on 29th February, 2008, the President of
the Republic, John Agyekum Kuffuor through an executive instrument created twentyseven (27) new districts and four (4) municipalities. Twenty-seven existing districts and
two municipalities were also upgraded bringing the total number of Metropolitan,
Municipal and District Assemblies (MMDAs) to one hundred and sixty-nine (169).
2.2.2 The role of Metropolitan/Municipal/District Assemblies
Among other things, Metropolitan/Municipal/District Assemblies were created
to perform the following deliberative, legislative and executive roles. These roles are

11

listed under section 10 of the Local Government Act, 1993, Act 462 as follows; (i) Be
responsible for the overall development of the District and shall ensure the preparation
and submission to the government for approval of the developmental plan and budget
for the district. (ii) Formulate programmes and strategies for the effective mobilization
and utilization of human, physical, financial and other resources in the district.
Furthermore, (iii) Promote and support productive activity and social
development in the district and remove any obstacles to initiative and development. (iv)
Initiate programmes for the development of basic infrastructure and provide municipal
works and services in the district. (v) Be responsible for the development, improvement
and management of human settlement and the environment, improvement and
management of human settlements and the environment in the district.
Again, (vi) In co-operation with the appropriate national and local security
agencies, be responsible for the maintenance of security and public safety in the district.
(vii) Ensure ready access to the courts and public tribunals in the district for the
promotion of justice. (viii) Initiate, sponsor or carry out such studies as may be
necessary for the discharge of any of the factions conferred by this law or any other
enactment. ix. Perform such other functions as may be referred to it by the government.
2.2.3 HR Problems in the District Assemblies
The governments ability to achieve its goals and the important functions of the
assemblies as enacted by law depends heavily on the performance, honesty and
motivation of employees at the various departments within the assemblies. Rosenbloom
and Kravchuck (2009) remarks although we think in terms of institutions and
principles, in the final analysis, organizations and government are not charts and words

12

on pieces of paper or monitors; they are made up of people, and it is necessary


somehow to organize the conditions of their employment.
In all the local government structures, especially the decentralized departments
and agencies of the assemblies, well-trained and highly motivated employees is a vital
tool in achieving organizational objectives and goals. This point was noted by President
John Agyekum Kuffuor (MLGRD, 2005) my government will continue to strengthen
the capacity and capability of local government institutions with appropriate
manpower and technical logistic support to facilitate the performance of devolved
functions.
Most of the negative findings on decentralization programmes are attributed to
implementation failures. This situation is mostly as a result of poor quality of staff at the
district levels. In Ghana, this situation is attributed to a host of factors worthy of
mentioning. First, it is the refusal or reluctance of some staff to accept postings to some
districts, particularly the deprived ones, which Ghanaian bureaucrats refer to as bush.
Secondly, frequent change of governments and government interferences which often
result not only in the massive transfer and replacement of staff but also retrenchment in
what is known in political parlance as proceed on leave also affects the human
resource base and capacity of some decentralized departments.
Ayee (2003), notes that there has not been a systematic or holistic approach to
dealing with issues and problems of capacity building initiatives towards local
government. Interventions toward capacity building have been piecemeal, adhoc and
most of the time, retroactive. Capacity building interventions have been mainly
classroom and standardized training for leading personnel. This contrasts with a

13

capacity building approach, which is consistent, functional and holistic. It also involves
team coaching and training for all relevant actors who should ensure proper functioning
of the District Assemblies.
2.2.4 Factors that influence HR capabilities at the District Assemblies
Motivation and satisfaction constitute the physical, psychosocial and economic
factors of work. Thus, the HR capacities at the DAs are influenced by economic,
physical, psychosocial and skill related other factors. If these factors are lacking then
the HR capacities of the DAs are likely to be affected adversely (Wood, 2000; World
Bank, 2005). The physical component of the determinants includes the physical work
environment such as ventilation, tables and chairs for the office, housing for the
workers, and workload (Noe, 2005).
The economic factors may include the level of pay and benefits, options for
career mobility, and degree to which merit is recognized or unsatisfactory performance
penalized. This view has also been supported by Donahue, Selden and Ingraham (2000)
and Steffensen, Tidemand and Ssewankambo (2004). Donahue, Selden and Ingraham
(2000) explain further that effective motivation at the DA level typically rests on the use
of appropriate monetary and nonmonetary rewards and incentives, better performance
appraisal system, and sound mechanisms that facilitate employee feedback. When better
remunerations are available for staff, retention rates become high leading to quality HR
capacities at the DAs (Antwi, Cusworth & Anaolui, 2007).
There are also psychosocial factors that influence employee retention. In every
social set up, like an institution, there are role expectations. It is this role expectation
which helps members to predict the behavior of one another. Thus any disruption to the
system of role expectation may result in disintegration of the entire organization (Antwi
14

& Analoui, 2008). Workers and administrators can be viewed as members of the same
system. In their administrative interaction, when discrepancy arises between what the
staff expect the administrators to do and what he/she actually does, the workers will be
confronted with the issue of finding a basis for predicting the behavior of the
administrator (Schuler & Jackson, 1995; Steffensen et al., 2004).
In his attempt to appreciate the relevance of job satisfaction in organizations,
Mullins (2007) argues that workers who perceive the behavior of an administrator as
being in consonance with their expectations would want to be satisfied with the work
situation. Contrarily, workers whose expectations are not consistent with that of an
administrator would more likely be dissatisfied with their job, hence their capacities to
willingly work towards organizational goal attainment (Noe, 2005). Similarly, job
satisfaction has been found to be a crucial factor in the HR capacities of the DAs.
Where satisfaction is high, workers tend to work hard for the growth of the DAs (Antwi
& Analoui, 2008).
2.2.5 HR functions
HR functions are the key policies, programmes and practices designed in
response to organizational goals and contingencies, and managed to achieve those goals
(Bratton and Gold, 2003). The primary goal of HR functions are acquiring employees
services, developing their skills, motivating them to high levels of performance, and
ensuring that they continue to maintain their commitment to the organization.
Armstrong (2001) notes that HR functions specialize in matters connected with the
management and development of people in organizations. They may be concerned in
any or all of the areas of HRM such as organizational design and development, human
resource planning, recruitment and selection, training and development, employee
15

relations, employee reward, health and safety, welfare, human resource administration,
fulfillment of statutory requirements, equal opportunity issues and other matters
concerned with employment relationship. The overall role of HR function is to enable
the organization achieve its objectives by taking initiatives and providing guidance and
support on all matters relating to its employees.
This implies variations in the role of HR function in different organizations.
According to Hailey (1998) cited in Armstrong (2001), HR could be regarded as
chameleon function in the sense that diversity of practices suggests that contextual
variables dictate different roles for the function and different practices of people
management.
2.2.6 HRM Practices
Studies show that HRM plays an important role in formulating and
implementing organisational strategy. Myloni et al., (2004) found that also HRM can be
seen as part of the overall strategy of the firm. The increasingly importance of HRM in
strategy has then led the HR managers to be part of the decision makers while
formulating and implementing strategy. Rozhan and Zakaria, (1996) study of Malaysian
firm provides some evidence of HR managers having an involvement in the strategy
formulation process.
Although sets of innovative HR practices have been proposed to enhance
effectiveness in organizations and to retain talented employees (Dessler, 1999), the
configurations of such practices are narrowly focused and these suggestions are often
not theoretically grounded.
The conceptual model of Lawler (1986) may be a good starting point. This
model suggests that four organizational practices may influence work-related attitudes
16

and behaviors, namely, information-sharing, empowerment, competence development


and reward. However, studies have shown that reward is a complex process that may
not be fully understood without taking into account some of its underlying dimensions,
namely the distributive, procedural and non-monetary recognition aspects (Milkovich
and Newman 1998).
Most research suggests that HRM is vital in order for an organisation to achieve
organisational success (Barney, 1991; Jackson and Schuler, 2000; Pfeffer, 1994).
Typically, HRM is considered to be vital in order for an organisation to achieve its
success by enabling the organisation to sustain competitive advantage. Literatures on
strategic HRM even indicate that HRM practices and systems contribute to the creation
of a sustained competitive advantage for the firm (Arthur, 1994; Gerhart and Milkovich,
1992; Huselid, 1995; Macduffie, 1995; Terpstra and Rozall, 1993). As a result, it is
important that a firm adopt HRM practices that make use of its employees. A number of
researchers have found a positive impact of HRM on organisational performance. For
instance, Becker and Gerhart (1996), Becker and Huselid (1999), and Dyer and Reeves
(1995) empirical studies found that firms which align their HRM practices with their
business strategy will achieve superior outcomes. MacDuffie (1995) studies worldwide
auto assembly plants found that some HRM practices are related to productively and
quality of the firm.
Delery and Doty (1996) found significant relationships between HRM practices
and accounting profits among banks. Youndt et al (1996) found that certain
combinations of HRM practices are related to operational performance of
manufacturing firms. Guthrie (2001) surveyed in New Zealand corporations found that

17

HRM practices are related to turnover and profitability of the corporations. More recent
empirical study on HRM practices (Lee and Lee, 2007) uncovered six underlying HRM
practices on business performance, namely training and development, teamwork,
compensation/incentives, HR planning, performance appraisal and employee security
help improve firms business performance including employees productivity, product
quality and firms flexibility. This study reveals that three items of HRM practices
influence business performance: training and development, compensation/incentives,
and HR planning.
However, some other researches also show that certain HRM practices have
significant relationship with operational (employees productivity and firms flexibility)
and quality performance outcomes (Chang and Chen, 2002; Ahmad and Schroeder,
2003; Kuo, 2004). These research evidence shows that effective HRM practices can
have positive impact on business performance. Using data from 197 Taiwanese hightech firms Chang and Chen (2002) conducted a comprehensive study to evaluate the
links between HRM practices and firm performance. This study reveals that HRM
practices including training and development, teamwork, benefits, human resource
planning, and performance appraisal have significant effect on employee productivity.
This study also found benefits and human resource planning have negative relationship
with employee turnover.
To generalize the efficacy of seven HRM practices by Pfeffer (1998) Ahmad and
Schroeders (2003) found the seven HRM practices such as employment security,
selective hiring, use of teams and decentralization, compensation/incentive contingent
on performance; extensive training, status difference and sharing information have

18

significant relationship with operational performance. Kuo (2004) adopted 11 HRM


practices found that employment security, team working and incentive compensation are
regarded as three of the main practices for impacting hospital performance.
2.2.7 Employee Job Performance
Employee Job performance has been a concern for organizations and
researchers. For decades, researchers have been looking for different ways to enhance
Employee Job Performance. Job performance refers to behaviours or actions that are
relevant to the goals of the organization in question (McCloy, Campbell, & Cudeck,
1994). Performance is a multi-dimensional variable in which every job has distinct
performance components (McCloy et al., 1994). Porter and Lawler (1968) argued that
attitudes influence performance. For example, Christen, et al. (2006), Cohrs, et al.
(2006), Rayton (2006), and Zhang and Zheng (2009) found evidence that job
satisfaction an attitudinal variable influences job performance a behavioural
variable. In their empirical study, Lawler and Porter (1967) reported that satisfaction of
higher order needs would be the most closely related to performance. Although the
causal direction between job satisfaction and job performance is still not resolved,
Judge, Thoresen, Bono and Patton (2001) found that the average true correlation
between job satisfaction and job performance was estimated to be 0.30.
2.2.8 HRM Practices and Employee Job Performance
Early studies linked individual HRM practices such as training, selection,
performance appraisal and compensation to firm financial performance (Milkovich,
1992; Huselid, 1995; Guest, 1997). Research has led to the identification of a number of
Human Resource Management practices that contribute to performance across different
organizations (Huselid, 1995). In a literature review, Delery & Doty (1996) identified
19

seven such practices that have been consistently considered HRM practices. They
defined HRM practices as those that are theoretically or empirically related to overall
organizational performance. These practices include internal career opportunities,
formal training systems, results-oriented appraisals, employment security, participation,
job descriptions, and profit sharing.
The relationship between Human Resource practices and work out comes is an
increasingly researched topic in human resource management (e.g. Edgar & Geare,
2005; Truss, Gratton, Hope-Hailey, McGovern & Stiles, 1997). More specifically, HRM
is hypothesized to fulfill employees needs which enhances favorable attitudes, and
subsequently improves performance outcomes (Edgar & Geare, 2005; Kuvaas, 2008;
Meyer & Allen, 1997). This is consistent with social exchange theory (SET) which
argues that HRM practices contribute to positive exchange relationships between
employee and employer especially when the needs of individual workers are
considered to which employees reciprocate with favourable attitudes and behaviour
(Gould-Williams & Davies, 2005).
Luna-Arocas and Camps (2008) found HRM practices such as training,
empowerment, rewards, job enrichment, and job stability to affect turnover intention
through job satisfaction and organizational commitment. Similarly, Saks, and Rotman
(2006) found that while job characteristics such as autonomy and feedback foster work
engagement, a higher level of work engagement subsequently lowers employees
intention to quit.
Previous studies have also shown that implementing HRM practices is an
important means through which favourable outcomes can be fostered. For example, the

20

presence of strong recruitment and selection practices, promotional opportunities,


grievance resolution mechanisms, flexible benefit plans, employee responsibility,
autonomy, and team work were found to relate positively to organizational commitment
while compensation cuts were negatively associated with organizational commitment
(Caldwell, Chatman & OReilly, 1990; Fiorito, Bozeman, Young & Meurs, 2007;
Gould-Williams & Davies, 2005; Heshizer, 1994). In addition, satisfaction with and
perceived adequacy of career development, training opportunities, and performance
appraisal were established as predictors of organizational commitment (Kuvaas, 2008).
2.2.9 Organisational Performance
The Chartered Institute of Personnel and Development suggested that high
performance working could be understood as having the following characteristics:
Achievement of organisational objectives, innovation in quality and customer
satisfaction, customer and continuous improvement focus, viewing the work place as a
source of added value, clear links between training and development and organisational
objectives, support for organisational and individual learning and use of self-managed
work teams. (Stevens and Ashton, 1999 as cited by John Martins, 2010). Organisations
that invest in its employees are more effective, efficient and flexible.
Organisations should endeavour to attain a kind of positive fit between
manpower, work, information and technology, by so doing it will increase employees
skills and abilities, loyalty and motivation and also affect positively firm performance.
Delaney and Huselid (1996) stated that employee participation and empowerment as
well as extensive employee training, and related HRM practices can improve
organisational performance. Active participation of employee in organisational affairs
will positively affect innovation and employee loyalty.
21

There are many objective performance indicator that can be used in measuring
organisational performance as stated by Huselid (1995) and this include return on sales,
productivity by employee, and profit per employee.
2.2.10 Human Resource Management and Firm Performance
Investigations on the link between HRM and organizational performance as
extensively been done in the US and the UK. Several authors point out that research
needs to be conducted in others contexts (Ericksen & Dyer, 2005; Wright et al., 2005).
Research on HR practices and their link to firms performance in most cases do
not address the issue of horizontal integration and vertical alignment. This is centrally to
HRM principle of synergetic relationship among various practices. Indeed there is a
need to have measures of the contribution of synergetic relationship of these practices to
performance of the organization. Additionally their link to overall business strategy and
consequently effect on performance should be addressed.
The relationship between HR practices and performance can be investigated in
various ways. First independent HR practices and their contribution to organizational
performance can be investigated. Importantly, synergetic relationship among the HR
variables and contribution to organizational performance should be explored.
Koca & Uysal (2009) researched on HRM practices and firms performance and
found out that HRM practices have a strong relationship with organizational
performance but weak relationship with market performance. Additionally, Khan (2010)
investigated the effects of HRM practices and found a positive significant relationship
between practices and organizational performance.
Uysal and Koca (2009) found out that recruitment, training and performance
based pay all have a significant positive relationship with organizational performance.
22

Additionally khan (2010) investigated and found asignificant positive relationship


between recruitment and selection, training and development, performance appraisals
and compensation on one hand and organizational performance on the other.
2.3 Empirical Evidence
A study by Abubakar (2013) on assessing the effects of Human Resource
Management (HRM) practices on employee job performance: a study of usmanu
danfodiyo university sokoto with the objective to examine the effects of Human
Resource Management practices on employees job performance in Usmanu Danfodiyo
University, Sokoto found that, some not all the HRM Practices correlates significantly
with employee job performance even though all are related. It was however suggested
that constant review of the HRM practices for organizations to move with time should
be employed.
Boohene (2011) on the effect of Human Resource Management Practices on
Corporate Performance: a study of Graphic Communications Group Limited with the
objective to assess whether GCGLs human resource management practices, particularly
recruitment and selection, performance appraisal, remuneration, and training and
development practices influence its performance. Simple random sampling was used to
select one hundred employees from GCGL. T-tests were carried out to examine the
relationship between the selected HR practices and corporate performance. The results
revealed that, from the perceptions of the respondents, there exists a positive
relationship between effective recruitment and selection practices, effective
performance appraisal practices and GCGLs corporate performance.
Asiedu-Appiah et al. (2010) on the Effect of Human Resource Management
Practices on employee retention in Ghanaian construction industry with the aim of
23

determining the most important human resource management practices, the most
frequent human resource management practices and which human resource
management practices influenced job retention observed that empirical support for the
importance of recruitment and selection, training and development, human relationship,
employee communication health, safety and warfare, recognition and reward,
compensation and incentives and performance appraisal on employee retention in the
construction industry of Ghana. Thirteen human resource management practices were
found to be very important in influencing employee retention within the construction
industry in Ghana. These are good recruitment advertisement, accuracy of person
specification, management encouraging employee counseling, opportunity to participate
in the policies which guide and rule working lives, opportunity for employees to air
their views, appointment of safety officer, provision of first aid, canteen facilities,
management bearing full treatment cost of injuries sustained at the workplace, praise
and appreciation of good work done, fairness of pay, payment of tools allowances, and
job security and competencies based or skill based pay.

CHAPTER THREE
METHODOLOGY

24

3.1 Introduction
This chapter describes how the study was conducted. The chapter also presents
the profile of the study area, study type, study variables, study population, sampling size
and sampling techniques, research design, data collection tools/instruments, data
analysis, and ethical considerations.
3.2 Study Design
Saunders et al. (2007), defines research design as the general plan of how the
research questions would be answered. The research design employed was descriptive
because the study is non-experimental, and the researcher wants to portray an accurate
profile of HRM practices on organisational performance in Asutifi North District
Assembly. The researcher attempted identify the HRM practices in place at Asutifi
North District Assembly, identify HRM practice problems at Asutifi North District
Assembly and investigating the impact of HRM practices on Asutifi North District
Assembly performance. The study was operated within a specific time frame with the
view to recount the actual situation at Asutifi North District at the time of the study.
3.3 Study Type
The type of study was descriptive. In this case, the researcher was able to give
an accurate account of the situation which was the intention of the researcher and this
support the view of Robson, (2002: 59) who states that the objective of descriptive
research is to portray an accurate profile of persons, events or situations.
3.4 Study Area
The Asutifi North District Assembly is one of the twenty-two (22)
Municipal/District Assemblies in the Brong Ahafo Region of Ghana. It was established
by L.I 1485 in 1989. The vision of the Asutifi District Assembly is to become a highly
professional local government body responsible for the provision of municipal services
25

such as education, water, sanitation and health facilities with other development
partners and consolidate agriculture as the lead productive sector while supporting the
development of other economic activities with the core purpose of improving the living
conditions of the people. The Asutifi District Assembly exist to facilitate improvement
in the living standard of the people through the formation and harnessing of resources
for the provision of the needed infrastructure and services.
Asutifi North District is located between latitudes 640 and 715 North and
Longitudes 215 and 245 West. The district capital is Kenyasi, which is about 50km
from Sunyani, the regional capital of Brong Ahafo, through Atronie and Ntotroso. It
shares boundaries with Sunyani Municipal in the North, Tano South District to the
North East, Dormaa Municipal to North West, Asunafo North Municipal and Asunafo
South District in the South West and Ahafo Ano South and North Districts (Ashanti
Region) in the South East. The district has a total land surface area of 900 Sq. km with a
total number of 66 settlements.
The district has 36 Assembly members comprised of 24 elected members and 12
appointed members. There is also one Members of Parliament (MP) and one DCE. The
district has 4 area councils and 1 town council. They are as follows: Town/Area
Councils: Kenyasi No. 1, Gambia, Goamu, Ntotroso; Town Council: Kenyasi No. 2.
The urban settlements are as follows: Kenyasi and Ntotroso. The district population is
estimated at 84,475 in 2000 (National Population and Housing Survey 2000).
The main economic activity of the people in the district is agriculture which
employs about 51% of people. The main language spoken in the district is Twi.

26

3.5 Study Population


The study population in research means the entire group of persons that have the
characteristics that interest the researcher. The target population of the study was all the
employees working in the Asutifi North District Assembly, the district capital of
Kenyasi. This comprised management and staff at post. According to Brenya (2015), the
HR manager at Asutifi North District Assembly, there are 127 staff at post with
management being 15 and 112 Staff.
3.6 Sample/ Sampling Techniques
Kitchenham (2002) defines sampling as the process of selecting units (e.g.,
people, organizations) from a population of interest so that by studying the sample a fair
generalization is made based on the result. In this regard, the total population (127)
comprised two separate samples management and staff, and so the researcher used
purposive and simple random sampling. According to Oliver (2013), purposive/
judgmental/selective/subjective sampling is a form of non-probability sampling in
which decisions concerning the individuals to be included in the sample are taken by the
researcher, based upon a variety of criteria which may include specialist knowledge of
the research issue, or capacity and willingness to participate in the research. The
researcher also employed simple random sampling - a sampling scheme with the
probability that any of the possible subsets of the sample (staff) is equally likely to be
the chosen sample. Simple random sampling was used to avoid bias. However, this was
followed by the availability of a sampling frame.
3.6.1 Sampling Frame
It is a list of all those within a population who can be sampled, and may include
individuals, households or institutions (Carl-Erik et al., 2003). In this regard, the

27

sampling frame for this study was the total population (127) comprising of two separate
samples management and staff of Asutifi North District Assembly.
3.6.2 Sample Size
According to Shapiro (2013), the sample size of a survey most typically refers to
the number of units that were chosen from which data were gathered. In an effort to
determine the sample size, the researcher used Rexroat et al. (1992) formula:
n=

N
2
1+ N ( a )

[Where n=sample size, N=Sample frame (127) and =margin of error (0.07) or 93%
Confidence level]

N
1 + N(a 2 )
n=
n = 78

127
1 + 127(0.0 7 2 )

n=
N= 127

a= 7%

n= 78
1= constant

Out of the 78 sample size (n = 78), the researcher purposively chose 10


management members and the rest 68 formed the staff members making a total of the
78 officials.
3.7 Data Collection Tools
This study used both primary and secondary data sources. The secondary data
was based on information from journals, books, internet, pamphlets and articles that
were of much relevance to HRM practices and organisational performance. Primary
data, on the other hand which formed the core of the data analysis was collected by way
of a questionnaire. A structured questionnaire was used to collect data from the
management of Asutifi North District Assembly on the HRM practices in place at
Asutifi North District Assembly and the HRM practice problems at Asutifi North
28

District Assembly. Another set of questionnaire was used to collect data from the staff
on the impact of HRM practices on their performance at Asutifi North District
Assembly. The researchers supervisor pretested the questionnaire to ensure its validity
and reliability to the research objectives and questions before administration. The
questionnaire contained both closed and open ended questions. A sample of the
questionnaire can be found at the appendix of this study.
3.8 Data Analysis Method
Both quantitative and qualitative methods were employed in the data analysis.
For the quantitative aspect, Statistical Package for Social Science (SPSS) and Microsoft
Excel were used. These programmes contained both nominal and ordinal scales. The
results were presented in the form of charts and tables with their corresponding
descriptive statistics. Finding and conclusions were therefore drawn from the study.
3.8.1 Study Variable
A variable is anything that can take on differing or varying values. The values
can differ at various times for the same object or person, or at the same time for
different objects or persons (Sekaran et al., 2010). The variables in this study include
HRM practices, HRM practice problems, and impact of HRM practices.
3.9 Ethical Considerations
Ethics in business research refers to a code of conduct or expected societal norm
of behaviour while conducting research. Ethical conduct applies to the organization and
the members that sponsor the research, the researchers who undertake the research, and
the respondents who provide them with the necessary data. Ethical conduct should also
be reflected in the behaviour of the researchers who conduct the investigation, the
participants who provide the data, the analysts who provide the results, and the entire
research team that presents the interpretation of the results and suggests alternative
29

solutions. Thus, ethical behavior pervades each step of the research process data
collection, data analysis, reporting, and dissemination of information on the Internet, if
such an activity is undertaken (Sekaran et al., 2010).
Before the conduct of the research, the study was approved by the Faculty of
Economics and Business Administration of Catholic University College of Ghana,
Fiapre (CUCG). The researcher created awareness to the respondents that any
information that they provided was not going to be used against them but treated with
all confidentiality to help bring out the HRM practices in place at Asutifi North District
Assembly, HRM practice problems at Asutifi North District Assembly, and the impact
of HRM practices on Asutifi North District Assembly performance. Data collected was
only used for the intended objective of the research and the respondents were made to
understand that there was much confidentiality with matters that needed to be treated as
such. In the case of secondary data, all data used was properly cited.

CHAPTER FOUR

30

DATA PRESENTATION AND DISCUSSION


4.1 Introduction
This section of the study detailed the results analysed from the responses
obtained from the respondents. The data were presented descriptively in the form of
tables and charts and organised according to the objectives of the study.
4.2 Presentation of Results
4.2.1 Presentation of Results for Management
4.2.1.1 HRM practices in place at Asutifi North District Assembly
Table 1: Conduciveness of physical work environment for staff performance
Response
Frequency
Percent
Cumulative Percent
Yes
3
30.0
30.0
No
7
70.0
100.0
Total
10
100.0
Source: Field Survey, 2015

Figure 1: Conduciveness of physical work environment for staff performance

30%
Yes
No

70%

Source: Field Survey, 2015

31

From Table 1 and Figure 1 above, 3 respondents representing 30.0% admitted


that there is conducive physical work environment for staff performance while 7
respondents representing 70.0% were of contrary view.
Table 2: Degree to which merit is recognized or unsatisfactory performance
penalized
Response
Frequency
Percent
Cumulative Percent
Fair
10
100.0
100.0
Total
10
100.0
Source: Field Survey, 2015
Figure 2: Degree to which merit is recognized or unsatisfactory performance
penalized

100%

Source: Field Survey, 2015


From Table 2 and Figure 2 above, all the respondents (10) representing 100.0%
admitted that the degree to which merit is recognized or unsatisfactory performance
penalized is fair.
Table 3: View on the mode of promotion in the Assembly
Response
Frequency
Percent
Cumulative Percent
Transparent
4
40.0
40.0
Well-structured
6
60.0
100.0
Total
10
100.0
Source: Field Survey, 2015
32

Figure 3: View on the mode of promotion in the Assembly

40%

Transparent
Well-structured

60%

Source: Field Survey, 2015


From Table 3 and Figure 3 above, 4 respondents (40.0%) agreed that the mode
of promotion in the Assembly is transparent while 6 respondents (60.0%) agreed the
mode of promotion in the Assembly is well-structured.
Table 4: Factor(s) that motivate the Assembly staff to stay
Response
Frequency
Percent
Good relations with supervisor
Occupational health and safety
Salary, opportunity for career
development,
Good human relations with superior,
Occupational health and safety ,
Salary, and Opportunity for career
development
Salary, and Opportunity for career
development
Good human relations with superior,
Occupational health and safety
Total
Source: Field Survey, 2015
33

1
1
1

10.0
10.0
10.0

Cumulative
Percent
10.0
20.0
30.0

50.0

80.0

10.0

90.0

10.0

100.0

10

100.0

Figure 4: Factor(s) that motivate the Assembly staff to stay


10
10
50
10
10
10

Field Survey, 2015


From Table 4 and Figure 4 above, 1 respondent (10.0%) admitted that good
human relations with superior, occupational health and safety motivate Assembly staff
to stay. Another 1 respondents (10.0%) admitted it is safety, and opportunity for career
development that motivate Assembly staff to stay. However, 5 respondent (50.0%)
agreed it is good human relations with superior, Occupational health and safety, Salary,
and opportunity for career development that motivate Assembly staff to stay.
Furthermore, 1 respondent (10.0%) admitted it is salary, and Opportunity for career
development that motivate Assembly staff to stay. Furthermore, 1 respondent (10.0%)
agreed it is good human relations with superior, occupational health and safety that
motivate Assembly staff to stay.
4.2.1.2 Problems of HRM practice at Asutifi North District Assembly
Table 5: Acceptance of posting to other districts particularly deprived areas
Response
Frequency
Percent
Cumulative Percent
Yes
10
100.0
100.0
34

Total
10
100.0
Field Survey, 2015
Figure 5: Acceptance of posting to other districts particularly deprived areas

100%

Field Survey, 2015


From Table 5 and Figure 5 above, all the respondents (10) representing 100.0%
admitted employees accept posting to other districts particularly deprived areas.

Table 6: Effect of government interference in HR base and capacity


Response
Frequency
Percent
Cumulative Percent
Transfer of staff
10
100.0
100.0
Total
10
100.0
Field Survey, 2015

35

Figure 6: Effect of government interference in HR base and capacity

100%

Field Survey, 2015


From Table 6 and Figure 6 above, all the respondents (10) representing 100.0%
agreed that transfer of staff is the main effect of government interference in HR base
and capacity.
4.2.2 Presentation of Results for Staff
4.2.2.1 Impact of HRM practices on Asutifi North District Assembly performance
Table 7: Staff reception of training and development programme since inception as
a staff at the Assembly
Response
Frequency
Percent
Cumulative Percent
Very much
24
35.3
35.3
Not much
44
64.7
100.0
Total
68
100.0
Field Survey, 2015

36

Figure 7: Staff reception of training and development programme since inception


as a staff at the Assembly

35%
Very much
Not much

65%

Field Survey, 2015


From Table 7 and Figure 7 above, 24 respondents received any form of training and
development programme since their inception as a staff at the Assembly very much
while 44 (64.7%) respondents did not much receive any form of training and
development programme since their inception as a staff at the Assembly.

Table 8: Staff assessment of their job performance in relation to


training/development programmes received from the Assembly
Response
Frequency
Percent
Cumulative Percent
Very high
8
11.8
11.8
High
58
85.3
97.1
Low
2
2.9
100.0
Total
68
100.0
Field Survey, 2015

37

Figure 8: Staff assessment of their job performance in relation to


training/development programmes received from the Assembly
85.3

11.8
2.9

Field Survey, 2015


From Table 8 and Figure 8 above, 8 respondents (11.8%) assess job performance
in relation to training/development programmes received from the Assembly very high
while

58

respondents

(85.3%)

assess

job

performance

in

relation

to

training/development programmes received from the Assembly high. Furthermore, 2


respondents (2.9%) assess job performance in relation to training/development
programmes received from the Assembly low.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
This chapter presents the summary, conclusion and recommendation of the study
based on major findings. These recommendations will enable the Assembly, business or
marketing practitioners, policy makers and stakeholders to know the HRM practices and
its effect on the performance of Asutifi North District Assembly.

38

5.1 Summary of Findings


This study was conducted to assess Human Resource Management practices and
organisational performance: a case of Asutifi North District Assembly; identify the
HRM practices in place at Asutifi North District Assembly, identify HRM practice
problems at Asutifi North District Assembly, and investigate the impact of HRM
practices on Asutifi North District Assembly performance. The study was therefore
based on three core variables thus; HRM practices, HRM practice problems, and impact
of HRM practices.
In identifying the HRM practices in place at Asutifi North District Assembly,
this study has brought to the fore that there is no conducive physical work environment
for staff performance at the Assembly and this view represent 7 respondents out of a
total of 10 respondents representing 70.0%. Furthermore, there is a fair degree to which
merit is recognized or unsatisfactory performance penalized at the Assembly. This view
represents all the respondents (10) representing 100.0%. Moreover, the mode of
promotion in the Assembly is transparent and well-structured. 4 respondents (40.0%)
agreed that the mode of promotion in the Assembly is transparent while 6 respondents
(60.0%) agreed the mode of promotion in the Assembly is well-structured [See Table(s)
1, 2, 3 and Figure(s) 1, 2, 3]. Nonetheless, good human relations with superior,
occupational health and safety, salary, and opportunity for career development motivate
Assembly staff to stay [See Table 4 and Figure 4].
In an effort to find out the HRM practice problems at Asutifi North District
Assembly, this study has brought to light that transfer of staff is the main effect of
government interference in HR base and capacity at the Assembly. All the respondents
(10) representing 100.0% agreed that transfer of staff is the main effect of government
39

interference in HR base and capacity [See Table 5 and Figure 5]. This finding support
the study by Ayee (2003) who observed that frequent change of governments and
government interferences which often result not only in the massive transfer and
replacement of staff but also retrenchment in what is known in political parlance as
proceed on leave also affects the human resource base and capacity of some
decentralized departments.
In investigating the impact of HRM practices on Asutifi North District Assembly
performance, this study has made it known that HRM practices have a positive impact
on the Assemblys performance. Out of 68 staffs sampled at the Assembly, 66 of them
(97.1%) saw the impact of HRM practices on Asutifi North District Assembly
performance as high and very high [See Table 8 and Figure 8]. This finding support a
study by Boohene (2011) who observed that there exists a positive relationship between
HRM practices on Corporate Performance.
5.2 Conclusion
This study concludes that: (i) there is no conducive physical work environment
for staff performance at the Assembly, (ii) there is a fair degree to which merit is
recognized or unsatisfactory performance penalized at the Assembly, (iii) the mode of
promotion in the Assembly is transparent and well-structured and (iv) good human
relations with superior, occupational health and safety, salary, and opportunity for
career development motivate Assembly staff to stay. Transfer of staff is the main effect
of government interference in HR base and capacity at the Assembly which creates
HRM practice problems at Asutifi North District Assembly. And HRM practices have a
positive impact on the Assemblys performance.

40

5.3 Recommendations
This study has looked into HRM practices and organisational performance in
Asutifi North District Assembly. On the basis of the results of this study, the researcher
has proposed these interventions:

More training programmes should be organised by management for staff at least


twice a year to equip them with the requisite knowledge and skills to enable

them contribute their quota to the performance of the Assembly.


Management should create conducive physical work environment for staff

performance at the Assembly.


Government interference in the Assembly regarding transfer of staff should be
minimized to reduce the HRM practice problems at Asutifi North District

Assembly.
More incentives should be available for staff to motivate them perform to their

maximum.
Constant review of the HRM practices for Asutifi North District Assembly to
move with time should be employed.

References
Abubakar T. (2013). Assessing the effects of Human Resource Management (HRM)
practices on employee job performance: a study of usmanu danfodiyo university
sokoto. Journal of Business Studies Quarterly, Vol. 5 No. 2.
Ahmad S, Schroeder RG (2003). The impact of human resource management practices
on operational performance: recognizing country and industry differences, J.
Operat. Manag.; 21:19-43.

41

Amit, R., & Shoemaker, J. H. 1993. Strategic assets and organizational rents. Strategic
Management Journal, 14: 33-46.
Antwi, K. B., & Analoui, F. (2008). Challenges in building the capacity of human
resource development in decentralized local governments: Evidence from
Ghana. Management Research News, 31(7), 504-517. Retrieved from
http://dx.doi.org/10.1108/01409170810876071
Appelbaum, S.H &Mackenzie, L. (1996). Compensation in the year 2000: Pay for
performance? Health Manpower Management, 22(3), 3139.
Armstrong, M. (2010). A handbook of Human Resource Management practice, (11th
ed.). London: Kogan page.
Armstong, M., (2001). A handbook of Human Resource Management Practice. Kogan
Press Limited, London.
Arthur, J. B. 1994. Effects of human resource systems on manufacturing performance
and turn-over. Academy of Management Journal, 37: 670-687.
Asiedu-Appiah et al. (2010). The Effect of Human Resource Management Practices on
employee retention in Ghanaian construction industry. International Research
Journal of Arts and Social Sciences. Vol. 2(2) pp. 30-48,
Ayee, J.R.A., (2003). Towards Effective and Accountable Local Government in Ghana.
Ghana Centre for Democratic Development (CDD), Accra.
Bamberger, P., & Meshoulam, I. (2000). Human Resource Strategy. Sage Publications,
Inc. Thousand Oaks, CA.

42

Becker, B.E., Huselid, M.A., Pickus, P.S. & Spratt, M.F. (1997). HR as a source of
shareholder

value:

research

and

recommendations.

Human

Resource

Management, 36, 39-47.


Becker B, Gerhart B (1996). The impact of human resource management on
organizational performance: Progress and prospects. Acad. Manag. J., 39:779801.
Becker B, Huselid M (1999). An interview with Mike Losey, Tony Rucci, and Dave
Ulrich: three experts respond to HRMJs special issue on HR strategy in five
leading firms, Human Res. Manag.; 38(4):353-65.
Boohene R. (2011). The effect of Human Resource Management Practices on Corporate
Performance: a study of Graphic Communications Group Limited. International
Business Research Vol. 4 No.1.
Bratton, J. and Gold, J., (2003). Human Resource Management: Theory and Practice.
Palgrave Macmillan, New York.
Carl-Erik Srndal; Bengt Swensson; Jan Wretman (2003). Model assisted survey
sampling. Springer. pp. 912. ISBN 978-0-387-40620-6.
Caldwell, D.F., Chatman, J.A. & OReilly, C.A. (1990). Building organizational
commitment: A multi firm study. Journal of Occupational Psychology, 63, 245261.
Chang PL, Chen WL (2002). The effect of human resource practices on firm
performance: empirical evidence from high-tech firms in Taiwan. Int. J. Manag.;
19(4):622.

43

Christen, M., Iyer, G., & Soberman, D. (2006). Job satisfaction, job performance, and
effort: A re-examination using agency theory. Journal of Marketing, 70(1), 137150.
Cohrs, J. C., Abele, A. E., & Dette, D. E. (2006).Integrating situational and dispositional
determinants of job satisfaction: Findings from three samples o f professionals.
The Journal of Psychology, 140(4), 363-395.
Delaney JT, Huselid MA (1996). The impact of human resource management practices
on perceptions of organizational performance, Acad. Manage. J., 39(4): 949-969.
Delery JE, Doty DH (1996). Modes of Theorizing in Strategic Human Resources
Management: Tests of Universalistic, Contingency, and Configurational
Performance Prediction. Acad. Manage. J., 39: 802- 835.
Dessler G (1999). How to Earn Your Employees Commitment. Academy of
Management Executive, 13(2):58-66.
Dyer L, Reeves T (1995). HR strategies and firm performance: what do we know and
where do we need to go? Int. J. Human Res. Manag.; 6(3):656-670.
Edgar, F. & Geare, A.(2005). HRM practice and employee attitudes: Different measures
different results. Personnel Review, 34(5), 534-549.
Fiorito, J., Bozeman, D.P., Young, A. & Meurs, J.A.(2007). Organizational commitment,
human resource practices, and organizational characteristics. Journal of
Managerial Issues, 19(2), 186-207.
Ghana Local Government Information Digest (2005). Volume 16, No. 1. Public
Relations Unit (MLGRD), Accra.

44

Guest, D.E. (1997). Human resource management and performance: a review and
research agenda. The International Journal of Human Resource Management, 8,
263-276.
Guthrie J (2001). High-involvement work practices, turnover and productivity: evidence
from New Zealand. Acad. Manag. J., 44:180-192.
Heshizer, B. (1994). The impact of flexible benefit plans on job satisfaction,
organizational commitment and turnover intentions. Benefits Quarterly, 4, 8490.
Huang JQ (2002). Research on relationship between the compatible type and
organizational performance of human resources management within the system:
Full-width theory perspective. Sun Yat-sen Manage. Rev., 8(3): 511-536.
Huselid, M. A. (1995). The Impact of Human Resource Management Practices on
Turnover, Productivity, and Corporate Financial Performance, Academy of
Management Journal, 38, 635-70.
Kuo HP (2004). The relationship between Human Resource Management practices,
employee commitment, and operational performance in the healthcare
institutions, National Cheng Kung University, Taiwan, Taiwan.
Kuvaas, B. (2008). An exploration of how the employee-organization relationship
affects the linkage between perception of developmental human resource
practices and employee outcomes. Journal of Management Studies, 45(1), 1-25.
Lawler EE (1986). High-Involvement Management: Participative Strategies for
Improving Organizational Performance. San Francisco: Jossey Bass.

45

Lawler, E.E. III & Porter, L.W. (1967). The Effect of Performance on Job Satisfaction,
Industrial Relations. 20-28.
Khan, M.A (2010). Effects of Human Resource practices on organizational
performance. An empirical study of Oil and Gas industry in Pakistani. European
Journal of Economics Finance and Administrative Sciences, 24, 158-175.
Lee, Feng-Hui, and Lee, Fzai-Z (2007). The relationships between HRM practices,
Leadership style, competitive strategy and business performance in Taiwanese
steel industry, Proceedings of the 13 th Asia Pacific Management Conference,
Melbourne, Australia, 2007:953-971.
Li C. (2000). Human Resource Management-12 Lessons. Taipei: Bookzone.
MacDuffie J (1995), Human resource bundles and manufacturing performance, Industr.
Relat. Labour Rev.; 48:197- 221.
Martin, J. (2010).Key Concept in Human Resources Management. 1st ed. London:
SAGE Publications Ltd.

Luna-Arocas, R. & Camps, J. (2008). A model of high performance work practices and
turnover Intentions. Personnel Review, 37(1), 26-46.
McCloy, R. A.,Campbell, J. P., & Cudeck, R. (1994). A confirmatory test of a model of
performance determinants. Journal of Applied Psychology, 79(4), 493-505.
Meyer, J. P. & Allen, N. J. (1997).Commitment in the workplace: Theory, research, and
application. Thousand Oaks (C.A.): Sage Publications.
Milkovich GT, Newman JM (1998). Compensation, Boston, Irwin.

46

Mullins, L.J. (2010). Management and organizational behavior, (9th ed.). Harlow:
Pearsons education Limited.
Myloni B, Harzing A-WK, Mirza H (2004). Host country specific factors and the
transfer of human resource management practices in multinational companies.
Int. J. Manpower, 25(6):518 534.
Noe, R. A. (2005). Employee training and development (3rd ed.). New York: McGrawHill.
Oliver

J.

(2013).

Sage

Research

Methods.

Retrieved

from

http://srmo.sagepub.com/view/encyclopedia-of-survey-researchmethods/n507.xml
Pfeffer J (1994) Competitive advantage through people; Unleashing the power of the
workforce, Boston, Harvard Business Press.
Porter, L. W., & Lawler, E. E. (1968): Managerial attitudes and performance.
Homewood, Ill.: R.D. Irwin
Rayton, B. A. (2006).Examining the interconnection of job satisfaction and
organizational commitment: An application of the bivariate probit model. The
International Journal of Human Resource Management, 17(1), 139-154.
Rozhan O, Zakaria I (1996). Strategic HRM: a comparison between selected
manufacturing and service firms. Research and Practice in Human Resource
Management, 4(1):43 66.
Saks, A. M. & Rotman, J. L. (2006). Antecedents and Consequences of Employee
Engagement. Journal of Managerial Psychology, 21(7), 600-619.
Saunders, Philip L. Adrian T., (2007) Research Methods for Business Students (4th Ed.)

47

Sekaran et al., (2010). Research Methods for Business (5th ed.).


Schneider, B. (1987). The people make the place. Personnel Psychology, 40, 437-453.
Schuler SR, Jackson ES (2000). Managing Human Resources: A Partnership
Perspective, South-Western College Publishing, and Cincinnati, OH.
Shapiro

Gary

M.

(2013).

Sage

Research

Methods.

Retrieved

from

http://srmo.sagepub.com/view/encyclopedia-of-survey-researchmethods/n507.xml
Steffensen, J., Tidemand, P., & Ssewankambo, E. (2004). A comparative analysis of
decentralization in Kenya, Tanzania and Uganda. Country Report Uganda,
August 2004, World Bank.
Storey, J., (2001). Human Resource Management Today: An Assessment. Thompson
Learning, London.
Terpstra DE, Rozell EJ (1993). The relationship of staffing practices for organizational
level measures of performance, Personnel Psychology 46:27-48
Thomi, W. and Yankon P.W.K., (2000). A decade of Decentralization in Ghana:
Retrospect and Prospects. EPAD Research Project & Ministry of Local
Government and Rural Development. Accra.
Torrington, D., Hall, L. & Taylor, S. (2008). Human Resource Management, (7th ed.).
Harlow: Prentice Hall.
Truss, C., Gratton, L., Hope-Hailey, V., McGovern, P. & Stiles, P. (1997). Soft and hard
models of Human Resource Management: A reappraisal. Journal of
Management Studies, 34(1), 53-73

48

Uysal, G., & Koca, G. (2009). HR and firms performance at companies in Turkey. A
corrective analysis. Journal of Modern Accounting and editing, 5(1), 45-48.
Wood, S. N. (2000). Building the human resources capacity of district Assemblies.
Koforidua: MLGRD.
Youndt MA (1996). Human resource management systems, intellectual capital and
organizational performance. Unpublished doctoral dissertation, Pennsylvania
State University.
Zhang, Z., (1999). Developing an instrument for measuring TQM implementation in a
Chinese context, SOM Research Report, 99A48, University of Groningen,
Groningen

Appendix
Catholic University
College of Ghana
(CUCG)
Consent Form
AN ASSESSMENT OF HUMAN RESOURCE MANAGEMENT
PRACTICES AND ORGANISATIONAL PERFORMANCE: A CASE OF
ASUTIFI NORTH DISTRICT ASSEMBLY.

I, Felicity Ababio, final year student of CUCG, Fiapre. I am conducting


a research on the topic: An assessment of HRM Practices and Organisational
49

Performance: A case of Asutifi North District Assembly.


1

I confirm that I have read and understood the information


sheet for the above study and have had the opportunity to
ask questions

I understand that my participation is voluntary and that I am


free to redraw at any time without giving a reason.

I agree to take part in the study


Please tick box
Yes
No

I agree to the interview being audio recorded.

I agree to the use of anonymised quotes in publications.

Participant Name:. Date: Signature:.


Felicity Ababio (researcher)

Date: Signature:..

Questionnaire for Management


Dear Respondent,
I am a final year student of the Catholic University College of Ghana, Fiapre
undertaking a study on the topic; an assessment of HRM Practices and Organisational
Performance: A case of Asutifi North District Assembly. You have been selected to
assist in this study. I hope you will be objective in answering the questions and by so
doing you will be helping in achieving the objective of this study. This information is
being collected solely for academic research purposes. The information you provide
will be treated as strictly confidential.
Thank you for your participation.
50

Name of Respondent

Status ..

Location

Age

Gender: Male [ ] Female [ ]

Educational background:

JHS [ ]

Tertiary [ ]

SHS [ ]

Rank of Respondent................................................

Department..................................

Years of service..........................
Tick () for the appropriate answer in the brackets and fill the blanks where appropriate.
PART I: HRM practices in place at Asutifi North District Assembly
1. Are personnel needs conducted regularly at the Assembly?
Yes [ ]

No [ ]

2. If yes, are personnel given accommodation upon posting?


Yes [ ]

No [ ]

3. Is the physical work environment conducive for staff performance?


Yes [ ]
No [ ]
4. Please explain with respect to your answer in question (3)?
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
5. Is the level of pay and benefits satisfactory?
Yes [ ]

No [ ]

6. What is the degree to which merit is recognized or unsatisfactory performance


penalized?
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
7. What is your view on the mode of promotion in the Assembly?
51

Transparent [ ]

Well-structured [ ] Not transparent [ ]

[ ] Others, please specify.


8. What factor(s) would motivate the Assembly staff to stay?
Good human relations with superior [ ]

Occupational health and safety [ ]

Salary [ ] Opportunity for career development [ ]


[ ] Others, please specify.

PART II: Problems of HRM practice at Asutifi North District Assembly


1. Do employees accept posting to other districts particularly deprived areas?
Yes [ ]
No [ ]
2. What influences your answer in question (9) above?

3. Which of the following is an effect of government interference in HR base and


capacity?
Retrenchment [ ]

Transfer of staff [ ]

Replacement of staff [ ]

[ ] Others, please specify

THANK YOU

52

Questionnaire for Staff


Dear Respondent,
I am a final year student of the Catholic University College of Ghana, Fiapre
undertaking a study on the topic; an assessment of HRM Practices and Organisational
Performance: A case of Asutifi North District Assembly. You have been selected to
assist in this study. I hope you will be objective in answering the questions and by so
doing you will be helping in achieving the objective of this study. This information is
being collected solely for academic research purposes. The information you provide
will be treated as strictly confidential.
Thank you for your participation.

Name of Respondent

Status ..

Location

Age

Gender: Male [ ] Female [ ]

Educational background:

JHS [ ]

Tertiary [ ]

SHS [ ]

Rank of Respondent................................................

53

Department..................................

Years of service..........................

PART III: Impact of HRM practices on Asutifi North District Assembly


performance
1. Have you received any form of training and development programme since your
inception as a staff at the Assembly?
Very much [ ]
Not much [ ]

Not at all [ ]

2. If yes, how many times do you receive training/development programmes in a


year?
Once [ ]

Twice [ ]

Not at all [ ]

[ ] Others, please specify..

3. Please indicate the type of training/development programme received?

4. Did you have adequate guidance and encouragement from trainer(s) during the
training?
Very much [ ]

Not much [ ]

Not at all [ ]

5. How do you assess your job performance in relation to training/development


programmes received?
Very high [ ]
High [ ]
Low [ ]
6. In your own way, how do you think the Assemblies performance can be
improved?

THANK YOU

54