Human

Resource
Management
END TERM JURY SUBMISSION

CASE STUDY : DYNAMICS IN PRODUCTIVITY WITH THE INTERVENTION OF HUMAN

RESOURCEMANAGEMENT (HRM): AN EXPLORATORY REVIEW ON MANUFACTURING
INDUSTRY

Presented by
Jigyasa Sharma
Somya Gupta
Srishty Dhanuka 20
21
Acknowledgements
The success and final outcome of
this project required a lot of
guidance and assistance from many
people and We are extremely
privileged to have got this all along
the completion of our project. All
that We have done is only due to
such supervision and assistance and
We would not forget to thank them.
We respect and thank Ms. Rajani
Jain mam, for providing us an
opportunity to do this project work
and giving us support and guidance
which made us complete the project
duly. We are extremely thankful to
her for providing such nice support
and guidance, although she had a
busy schedule. We are thankful to
and fortunate enough to get
constant encouragement, support
and guidance from all our batch
mates which helped us in
successfully completing our project
work.
Table of
Contents

Page 4 - Introduction

Page 5 - Methodology

Page 7 - Results

Page 13 - Discussion and conclusion

Page 15 - Learning Outcome

Page 16 - References
noitcudortnI
This case study is about the dynamics in
productivity with the intervention of HRM in the
manufacturing industry.

Productivity dynamics with HRM intervention

have been considered as an important topic,
especially in the manufacturing industry. There
were six key objectives of this study.

In this paper, they mentioned about previous

researches, which have been conducted on this
topic throughout the history of research.

Generally, manufacturing industry is highly

driven by the achievement of goals and
objectives.
One of the most important resources in attaining
an organization's goals and objectives is human
resources.

HRM is a crucial functional area in business

organizations that deals with a variety of
obligations and issues relating to the businesses'
personnel.

HRM is the efficient and effective use of personnel

in order to achieve organizational goals; it is also
about managing people at work, and it is the
human aspect of company administration, with
policies, procedures, rules, and systems
influencing employees.
Methodology
Objective of the study

To determine the effect of

01 HRM on productivity in a
manufacturing industry.

To determine the role of HRM (the main HRM

02 functions) in increasing productivity in the

manufacturing business.

To determine how HRM functions encourage

03 employees in the manufacturing industry in order to

increase productivity.

To determine how organizational elements

04 inspire people in the manufacturing business to

increase productivity.

To find out the significant organizational factors,

05 which motivate the employees in enhancing the

productivity in manufacturing industry
A vision statement, call-to-action or quote from your leaders
are powerful ways to conclude your progress report. Leave your
To determine
audience inspired, how personal
and motivated characteristics
to help your organizationdrive

06
achieve its SDG-aligned
employeesgoals!
in the manufacturing industry to
increase productivity.
 Methodology
Selected Methodology

1. The archival technique was used by the researchers to achieve the study's aims.
2. During the past research history, similar methodological approaches were applied in
the research domains of HRM, motivation, and productivity.
3. To establish a solid theoretical framework for this review, significant theories in the
disciplines of management and HRM, such as

Systems Theory - The interdisciplinary study of systems, which are coherent sets of
interconnected, interdependent pieces that can be natural or man-made, is known as
systems theory. Every system is defined by its structure and purpose, confined by space
and time, impacted by its environment, and expressed by its functioning. If a system
exhibits synergy or emergent behavior, it may be more than the sum of its parts.

Abraham Maslow's Hierarchy of Needs Theory - Maslow's hierarchy of needs is a

theory of motivation which states that five categories of human needs dictate an
individual's behavior. Those needs are physiological needs, safety needs, love and
belonging needs, esteem needs, and self-actualization needs.

Frederick Herzberg's Two Factor Theory - Employee satisfaction, has two dimensions:
"hygiene" and "motivation." Hygiene issues, such as salary and supervision, decrease
employees' dissatisfaction with the work environment. Motivations makes employees
more productive, innovative, and committed as a result of motivators like praise and
achievement.

Douglas McGregor Theory X and Y - Douglas McGregor formulated Theory X and

Theory Y suggesting two aspects of human behaviour at work, or in other words, two
different views of individuals (employees): one of which is negative, called as Theory X
and the other is positive, so called as Theory Y.

The researchers constructed a conceptual framework based on the literature review and
theoretical background, which they may be able to use in practice for future study as the
next step. Furthermore, crucial independent variables, mediating variables, and dependent
variables were operationalized, so that they could be used in practice for the next
immediate stage of the research in real life.
Results
A. . Effect of Human Resource Management (HRM)
Functions on Productivity

Effect of Human Resource Planning (HRP) on Productivity:

01 It was revealed that, HRP is essential for productivity and organizational

effectiveness and efficiency because, it acquires best human resources, focuses
on corporate goal, utilizes human resources, develops human resources, reduces
uncertainty and labour cost, regularizes production, maintains good industrial
relation, keeps records and controls human resources. Investments in HR
planning and in hiring practices are positively associated with labour
productivity.

Effect of Recruitment and Selection on Productivity

02 It has been discovered that substantial recruiting efforts boost productivity.

Incentive compensation programmes, thorough recruiting and selection, team
work, employment security, job flexibility, training, and labour management
communication were all investigated . One of the most important policy areas in
HRM is broad recruiting and selection.

Effect of Training on Productivity

03 Trainings for managers, supervisors, and operators have been linked to

increased productivity in the Indian garment manufacturing business. Induction
training has a good relationship with high production. It was discovered that
there is a correlation between the use of training programmes and increased
production. It was identified that four human resource management methods
that have an impact on labour productivity in Japanese manufacturing SMEs.
Training is one of the most important policy areas in HRM.

Effect of Remuneration System on Productivity

04 The incentive plan was discovered to have a favourable impact on productivity.

The establishment of an incentive programme encourages firm employees to
raise production levels, reduce raw material consumption, and so increase
productivity. It was discovered that using a multi-factor incentive scheme
inspired manufacturing company personnel to increase output levels, improve
raw material usage, and so increase productivity. In the Indonesian
manufacturing sector, there was shown to be a positive relation between wages
and productivity in the large-medium size manufacturing business.
Results
A. . Effect of Human Resource Management (HRM)
Functions on Productivity

Effect of System of Appraisals on Productivity

05 The four HRM strategies of employee staffing, training and development,

performance evaluation, and compensation management all have favourable
effects on labour productivity in Japanese manufacturing SMEs . The
performance-based compensation is one of the key HR practises that can help
an organisation maintain a healthy and innovative HR system.

Effect of Promotion and Career Advancement on Productivity

06 Promotions are more common in the United States and Northern Europe than in
Southern Europe and Asia. The data on productivity, is significantly better and
has demonstrated wide ranges of productivity within and within nations, and
HRM appears to reflect these patterns. There is an impact of career development
on employee productivity of executive personnel in the Apparel Industry in Sri
Lanka's western area.

Effect of Disciplinary Management on Productivity

07 It was found that, the effective disciplinary policy County Education Office HR
Department in Turkana County are effective in that the organization has helped
in controlling employee’s
behavior by ensuring there is teamwork and cohesion in the organization.

Effect of Employee Welfare on Productivity

08 It was revealed that, five variables of employee welfare programmes including

occupational health; succession plans; training and development; employee
referral scheme and remuneration policies, have an effect on employee
performance.

Effect of Human Resource Management Information Systems

09
(HRMIS) on Productivity:
Information and communication technology (ICT) was noted as being
particularly crucial, with multiple pieces of research indicating that combining ICT
with the correct fit of HRM practises makes a significant improvement in
productivity. Information Technology (IT), plays a crucial role in increasing
productivity among both professional and production workers.
Results
B. Effect of Organizational Factors on Productivity

Following six (06) significant Organizational Factors have been

identified based on the archival method applied throughout the
study.

Effect of Leadership on Productivity

01 Having a good boss is a significant contributory factor for motivating the

workforce towards higher output in labor intensive manufacturing industry.
Moderate degrees of “bossing” would be a contributory factor to motivate the
workforce. It was found that, the non-cognitive skills such as leadership skills are
also important and seem to have positive relationship to labour productivity
among Thai manufacturers

.Effect of Team Working Behavior on Productivity

02 Working with a good team is a significant contributory factor for motivating the
workforce towards higher output in labor intensive manufacturing industry. Team
development is one of the distinctive HR practice that would support a healthy
and innovative-oriented HR system in an organization..

Effect of Organizational Culture on Productivity

03 Organizational culture represents the collective values, beliefs and principles of

organizational members and is a product of such factors as history, product,
market, technology, strategy, type of employees, management style, and
national culture; culture includes the organization’s vision, values, norms, systems,
symbols, language, assumptions, environment, location, beliefs, and habits.It was
revealed that, culture is a key factor not only in achieving organizational goals,
but in attracting and keeping desirable employees, creating a positive public
image, and building respectful relationships with stakeholders. It was revealed
that, there is a significant impact of Organizational Culture on productivity and
quality management in Diamond Operations Unit
Results
B. Effect of Organizational Factors on Productivity

Effect of Empowerment on Productivity

04 It was identified that, moderate degrees of empowering would be a contributory

factor to motivate the workforce. It was identified that, empowering work
practices are related to greater productivity

. Effect of Work Environment on Productivity

05 Favorable working environment is one of the significant factor effect on

productivity. It was identified that, a favorable working environment, such as
working with a good team, having a good boss, and liking the physical
surroundings in the workplace, is a contributory factor for motivating the
workforce towards higher output.

.Effect of Team Working Behavior on Productivity

06 It was found that, the non-cognitive skills such as communication is also

important and seem to have positive relationship to labour productivity among
Thai manufacturers
Results
C. Mediating Effect of Motivation on the Relationships
Relationship between HRM Functions and Organizational Productivity,
Relationship between organizational Factors and Organizational Productivity

Motivation is an internal drive to satisfy an unsatisfied need and to achieve a certain goal. It
was revealed that motivation is the strength and course of behaviour. It determines how hard be
the individuals’ efforts and for how long are they maintained. When explored, each employee has
different needs and desires, which means the motivation factors are different from one employee
to another. The effects of employee motivation in different countries were -

1 Bangladesh

Implementation of the motivational theories successfully over the

workers level in a leading apparel manufacturer in Bangladesh,
number of resulting benefits returns were obtained from the
motivated employees, such as
the reduction of the rejection rate from 30 % to 5 %
meeting the on-time delivery

2 Sri Lanka

It was investigated that, there is a positive relationship between

employee motivation and employee productivity of executive
employees

3 Nigeria

It was identified that, there is a significant relationship between

incentive system and employee motivation.
 Results
Some factors that lead to employee motivation are identified as follows -

Salary and compensation, fringe benefits, training and development, performance appraisal
systems, as well as promotion and career advancement, have a significant effect on employee
motivation and employee retention among the talented cadres in an organization.

Monetary benefits such as year-end bonus, emergency subsidies, pensions, holidays and
leaves have a positive impact on motivation.

As well as, it was identified that, different organizational factors such as feedback, co-workers,
task design, supervision and rewards significantly effect on employee motivation.

1
D. Mediating Effect of Personal Factors
HRM has a positive impact on productivity, through employee skills, attitudes, and behaviour.

In addition, it was revealed that the labour productivity of a firm tends to increase if workers
develop different skills. It was found that a higher degree of skills, favourable working environment
and Research and Development are important inputs to a labour-intensive manufacturing
process, which is positively associated with productivity. Employee involvement in terms of
delegation of responsibility and systems of collecting proposals from employees have a positive
impact on productivity. It was suggested that labour productivity can be improved by imparting
knowledge and skills to the workforce by arranging training programmes with experts both from
India and abroad.

3
DISCUSSION AND
CONCLUSION
To enhance Organizational productivity

01 Effective launch of the HRM functions such as HR, recruitment and

selection, training, remuneration system, a system of appraisals,
promotion and career advancement, disciplinary management,
employee welfare and HRMIS by the HR managers.

With the careful handling and effective usage of the organizational

factors such as leadership, team working behaviour, organizational
culture, empowerment, work environment and communication
system.

Personal factors affecting Organizational productivity

02 There is a significant effect of personal factors such as attitudes,

skills, knowledge, behaviour, responsibility and interest.

Factors such as perception of behaviour, interest and needs

significantly affect on employee motivation.

Findings of the archival method

03
Five key variables were identified. Moreover, key dimensions were
identified for each and every key variables as well. They are listed in
the following table.
This field of research will be a base for future research on dynamics in productivity with the intervention of
HRM with respect to the service industry as well.
Learning Outcome

We learned that employee motivation is a strong tool in furthering

the productivity of an organisation. An employee productivity can
be affected by many personal factors such as attitudes, skills,
knowledge, behavior, responsibility, perception of behavior and
interest.

Different HR functions such as recruitment and selection, training,

remuneration system, system of appraisals, promotion and career
advancement, disciplinary management and employee welfare
can significantly enhance the productivity if effectively launched.

We learnt about the effect of Human Resource Management

Information Systems (HRMIS) on Productivity and how employee
welfare can boost productivity and employee satisfaction.

We learnt about the four HRM strategies of employee staffing,

training and development, performance evaluation, and
compensation management all have positive benefits on labour
productivity. One of the essential HR practises that can help an
organisation maintain a healthy and innovative HR system is
performance-based remuneration..
References

1 https://www.managementstudyguide.com/theory-x-y-
motivation.htm#:~:text=In%201960%2C%20Douglas%20McGregor%20formulated,so
%20called%20as%20Theory%20Y.

2 https://www.aafp.org/fpm/1999/1000/p26.html#:~:text=Frederick%20Herzberg%2
0theorized%20that%20employee,more%20productive%2C%20creative%20and%20c
ommitted.

3 https://smallbusiness.chron.com/relationship-between-systems-theory-
employee-relations-
22465.html#:~:text=Systems%20theory%20states%20that%20organizational,and%2
0interdependence%20between%20different%20subsystems.&text=Departments%2
C%20work%20groups%2C%20business%20units,component%20systems%20of%20th
e%20organizations.