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Term Paper
Topic: Effect of HRM Planning on Organizational Performance,
Mediating Effect of Employee Commitment
Course Name: Human Resource Planning and Talent Management
Course Code:
Submitted To
Dr. Md. Rabiul Bashar Rubel
Associate Professor
Submitted By
Group Name: Phoenix
Jakaria Islam Roni Nafisa Mehjabin
ID: 2224341019 ID: 2224341020
Abdullah Al Mamun
ID: 2224341024
MBA in HRM
Department of Management Studies
Date of submission: 6th November 2022
Letter of Transmittal
6th November 2022
Associate Professor
Dear Sir,
We are hereby submitting our Term Paper, which is a part of the MBA Program curriculum
and Human Resource Planning and Talent Management course.
This Term Paper is based on, ‘Effect of HRM Planning on Organizational Performance,
Mediating Effect of Employee Commitment.’
To prepare this report we have collected most relevant information to make this term paper
more logical and reliable. We have tried our best to achieve the objectives of the report and
hope that our effort will serve the purpose.
We will be always available for answering any queries on the paper. Any sort of query or any
criticism on this report will be beneficial for us, as it will give us the opportunity to learn
more and enrich our knowledge. We hope you will consider the mistakes that may take place
in the report in the spite of our best effort.
Abdullah Al Mamun
ID: 2224341024
Section: A
MBA in HRM
Department of Management Studies
Bangladesh University of Professionals
Acknowledgement
In the name of Almighty Allah, the most Beneficent, the most merciful. It is indeed a great
pleasure and honor for us to have the opportunity to submit this Term paper. We are highly
grateful to our Associate Professor, Dr. Md. Rabiul Bashar Rubel, Bangladesh University of
Professionals for providing us his full academic inputs guidance and encouragement
throughout this term. Preparing this paper enables us to understand the situation. Without his
constant support, encouragement and guidance we could not have completed this paper as
meticulously and thoroughly. We would also like to pay our gratitude to sir for his care,
guidance and valuable suggestions which helped us to prepare this report.
Name ID Signature
Employees represent the essential assets of any organization. The best organizations oversee
human capital in the most efficient and effective way (Nethmini & Ismail, 2019). Blau (2017)
highlighted the relevance between human resources management (HRM) practices and the
employees’ success at work through enhanced inspiration and commitment. Hence, employee
commitment cannot be overlooked as the degree of employee commitment can decide
employee performance (Ahmad, 2014). This paper aims to explore the significance of Effect
of HRM Planning on Organizational Performance, Mediating Effect of Employee
Commitment. Human resource planning (HRP) allows a business to better maintain and
target the right kind of talent to employ having the right technical and soft skills to optimize
their function within the company. It also allows managers to better train and develop the
skills needed amongst the workforces. The target population is employees in different
organization employees of Bangladesh. The data is collected from 60 employees of different
organization. The data was gathered through a self-administered questionnaire and analyzed
in Google Form.
Table of Contents
Chapter One
Introduction
Increasing the efficiency of a company is a competitive advantage over its competitors that
can be realized through workforce planning. However, HRP policies have not been successful
in achieving their stated goals as organizations still underperform despite HRP practices. This
is because proactive HRP is challenging in organizations as line, hiring or operational
managers get carried away with planning financial, material and other resources and leave
Managers sometimes take risks by bringing on board people who lack the necessary
qualifications, knowledge, talents, skills and abilities without really having a plan to develop
and enhance these human resources for the tasks and duties ahead. Given these realities, to
improve the optimal performance of organizations; the uncertainties associated with HRP
such as turnover, absenteeism, seasonal unemployment, market instability and technological
changes need to be carefully considered when implementing workforce plans. These
uncertainties pose a significant challenge to HRP as a whole and limit managers' ability to
predict staffing needs. Hence it intends to offer workable solutions to these challenges.
The objectives of this report can be identified as Primary objective and specific objectives:
1. How employee commitment plays mediating role between HRM planning and
employee performance?
2. What are the factors effect of HRM planning on Organizational performance?
1.5 Contribution of the study:
This paper contributes to the existing body knowledge by investigating the role of
technological, organizational factors and their interactions. It provides an improved
understanding of the challenges related to HRM planning. This research sought to provide the
needed information that would guide the management to better align their planning strategies
with their employee performance measurement systems for optimum employee performance.
There are no other known studies that have been carried out in Bangladesh on effect of HR
planning. The study can form the basis for further studies in the area of HR planning.
Chapter Two
Theoretical Framework
Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource
capacity of the organization can be utilized to fulfill these requirements. It, thus, focuses on
the basic economic concept of demand and supply in context to the human resource capacity
of the organization.
It is the HRP process which helps the management of the organization in meeting the future
demand of human resource in the organization with the supply of the appropriate people in
appropriate numbers at the appropriate time and place. Further, it is only after proper analysis
of the HR requirements can the process of recruitment and selection be initiated by the
management. Also, HRP is essential in successfully achieving the strategies and objectives of
organization. In fact, with the element of strategies and long-term objectives of the
organization being widely associated with human resource planning these days, HR Planning
has now become Strategic HR Planning.
Though, HR Planning may sound quite simple a process of managing the numbers in terms of
human resource requirement of the organization, yet the actual activity may involve the HR
manager to face many roadblocks owing to the effect of the current workforce in the
organization, pressure to meet the business objectives and prevailing workforce market
condition. HR Planning, thus, help the organization in many ways as follows:
HR managers are in a stage of anticipating the workforce requirements rather than getting
surprised by the change of events Prevent the business from falling into the trap of shifting
workforce market, a common concern among all industries and sectors
Work proactively as the expansion in the workforce market is not always in conjunction with
the workforce requirement of the organization in terms of professional experience, talent
needs, skills, etc. Organizations in growth phase may face the challenge of meeting the need
for critical set of skills, competencies and talent to meet their strategic objectives so they can
stand well-prepared to meet the HR needs Considering the organizational goals, HR Planning
allows the identification, selection and development of required talent or competency within
the organization.
An HR Planning process simply involves the following four broad steps:
It includes a comprehensive study of the human resource strength of the organization in terms
of numbers, skills, talents, competencies, qualifications, experience, age, tenures,
performance ratings, designations, grades, compensations, benefits, etc. At this stage, the
consultants may conduct extensive interviews with the managers to understand the critical
HR issues they face and workforce capabilities they consider basic or crucial for various
business processes.
Future HR Demand: Analysis of the future workforce requirements of the business is the
second step in HR Planning. All the known HR variables like attrition, lay-offs, foreseeable
vacancies, retirements, promotions, pre-set transfers, etc. are taken into consideration while
determining future HR demand. Further, certain unknown workforce variables like
competitive factors, resignations, abrupt transfers or dismissals are also included in the scope
of analysis.
Demand Forecast: Next step is to match the current supply with the future demand of HR
and create a demand forecast. Here, it is also essential to understand the business strategy and
objectives in the long run so that the workforce demand forecast is such that it is aligned to
the organizational goals.
HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per the demand
forecast created by them. This may include conducting communication programs with
employees, relocation, talent acquisition, recruitment and outsourcing, talent management,
training and coaching, and revision of policies. The plans are, then, implemented taking into
confidence the mangers so as to make the process of execution smooth and efficient.
There are many characteristics of human resource planning, and these could be reckoned as
the identifiable ingredients that may be used to pinpoint human resource planning in
bureaucratic organizations. However, regarding these characteristics, we adopt the views of
Durai (2012:64) as quoted in Vineeth (2019:6) as follows:
1. HRP aims at fulfilling corporate strategies and goals through effective utilization of human
resources. As such, it is effectively aligned with the business strategies of the organization.
2. HRP is not a solitary act. Rather, it is a process involving a series of related activities
carried out on a continuous basis.
3. HRP not only meets the short-term HR requirements of an organization, but also
determines its long-term 4strategies and future directions from the HR perspective.
5. It emphasizes both the quantitative (number of personnel) and the qualitative (nature of
personnel) dimensions of human resources at every stage.
Three kinds of employee commitment have been progressed (Meyer & Allen, 1991).
Affective commitment is depicted as a degree to which an individual is rationally joined to
using relationship through the estimation, for instance, steadfastness, love, warmth,
belongingness, love, enchant, and so forth (Jaros, Jermier, Koehler, & Sincich, 1993).
Continuance commitment is portrayed as an aching to remain a person from the affiliation
(Mayer & Schoorman, 1992). Lastly, normative commitment is depicted as a worker’s
commitment to remain with the association, which reflects a tendency to continue with work
(Meyer & Allen, 1991).
Yamao and Sekiguchi (2014) explored the factors influencing employee commitment for
Japanese workers; the outcomes demonstrate that HRM practices that encourage the learning
of English, for example, language training and setting language abilities as a basis for
promotion and recruitment, have an effect on the affective and normative commitment of
workers to their organizations’ globalization.
Moreover, Fesharaki and Sehhat (2017) explored the idea of Islamic management of human
resources and measured its effects on employee’s commitment. The outcomes demonstrate
that remuneration and compensation, training and development, recruitment, and selection
positively affect employee’s commitment. In addition, Dheera and Krishnan (2020)
demonstrated that HRM practices decidedly influenced employee commitment towards their
employment and organization. Besides, Shipton et al. (2016) found that HRM can enhance
employee commitment and, from that point, improve execution. In the interim, Rubel et al.
(2017) look at jobs that developing HRM performs in upgrading employee commitment, the
founding from this relationship shows that the five-dimensional development of HRM jobs is
positively associated with employee commitment. Additionally, Razzaq et al. (2017), Fihla
and Chinyamurindi (2018), and Parajuli and Shrestha (2021) found that HRM practices
tremendously affect employee commitment. Furthermore, Ahmad, Kumar, and Ahmad
(2017) indicated a measurably critical relevance between HRM practices and employee
commitment and uncovered authoritative qualities and zones for development.
This is where corruption comes into play in this analysis. Importantly, Bourguignon (1997)
cited in Ion Elena & Criveanu (2016:181) relays the following main definitions:
Strategic Human Resource Management (SHRM) is defined as the process of aligning and
integrating human resource strategies and the various layers of strategies in an organization
(Othman, 2009). ; Bernardine, 2007; Wattanasupachoke, 2009). The growing importance of
people to organizational performance is consistent with the emergence of Strategic Human
Resource Management (SHRM) as a global research area
(Hartel, Fujimoto, Strybosch, & Fitzpatrick, 2007). HRP ranks first, followed by
Employment, Human Resource Development, Compensation and Benefits, Performance
Evaluation, Occupational Health and Safety, Industrial Relations and Human Resource
Research. According to Boon et al. (2018) One of Strategic HRP's main goals is to empower
employees to help your organization achieve its strategic goals. Kinikci and Williams (2006)
identified HRP as the process of developing a comprehensive strategy for determining an
organization's staffing needs and forecasting future needs. Greer and Plunkett (2007) see this
as an important contribution to the strategic plan. Creation process and therefore consistent.
HRP contributes to the achievement of a number of benefits for an organization. Human
resource management (HRM) planning and strategic management implementation lead to
human capability improvement because there is an important and positive relationship
between HRM planning and organizational performance and human resource planning (work
and organizational performance (Abdallah & Phan, 2007; AlFrijawy, 2019) HRP also helps
to allocate human resources to the organization's activities, control costs, and provide the
basis for other workforce plans and strategies, such as selection, hiring, training, performance
appraisal, and compensation (Daft, 2000).
Armstrong (2006) described HRP as a sequence of actions that attempts to estimate the
demand for labor and assess the size, type, and sources of supply needed to meet the
estimated demand; considering the task, responsibilities and/or duties to be performed. This is
related to Cole's (2002) contention that workforce planning involves identifying the
organization's staffing needs and designing resources to ensure that there is sufficient labor
supply to meet the organization's needs. Experience, knowledge and skills required.
Furthermore, Huselid (1995) defines HRP as the analysis of the needs of the human element
under variable conditions and the elaboration of strategic actions essential to satisfy those
needs. From a lower rung to a higher rung on the Company's ladder of achievement; having
careful consideration of: (a) the job description
(taking into account the job content and required competencies), (b) the job description
(which establishes the minimum training required to perform a specific job), (c) the job
design (job enrichment, job expansion, reorganization or restructuring, job rotation, flextime,
homework, job sharing, shorter workweek, etc.) and (d) job analysis (know the right
qualifications, experience and knowledge required for each job). Category, training and
development needs, compensation and benefit needs, employee and labor relations activities,
and necessary legal considerations)."
Various investigations have analyzed the relevance between HRM practices and employee
commitment (Yamao & Sekiguchi, 2014; Aladwan, Bhanugopan, & D’Netto, 2015; Shipton,
Sanders, Atkinson, & Frenkel, 2016; Fesharaki & Sehhat, 2017; Razzaq, Aslam, Bagh, &
Saddique, 2017; Rubel, Rimi, & Walters, 2017; Fihla & Chinyamurindi, 2018; Pham,
Tuckova, & Phan, 2019; Dheera & Krishnan, 2020; Nor, Mohamed, Mohamed, & Hassan,
2020; Parajuli & Shrestha, 2021). Yamao and Sekiguchi (2014) explored the factors
influencing employee commitment for Japanese workers; the outcomes demonstrate that
HRM practices that encourage the learning of English, for example, language training and
setting language abilities as a basis for promotion and recruitment, have an effect on the
affective and normative commitment of workers to their organizations’ globalization.
Moreover, Fesharaki and Sehhat (2017) explored the idea of Islamic management of human
resources and measured its effects on employee’s commitment. The outcomes demonstrate
that remuneration and compensation, training and development, recruitment, and selection
positively affect employee’s commitment. In addition, Dheera and Krishnan (2020)
demonstrated that HRM practices decidedly influenced employee commitment towards their
employment and organization.
Chapter Four
Methodology
This chapter covers the issues which are needed to design the information retrieval of the
study. This section presents the main research method and is further sub-divided into the
design of the overall study, sources of data; both primary and secondary data, the population
of the study, data collection instruments, the procedure for data collection, methods of data
analysis, and criteria used to ensure the credibility of the findings.
Quantitative method was used to conduct this survey. In this study, the target population was
the Public and Private Companies in Dhaka city and also outside of Dhaka City like Jamuna
Television, Pran- RFL Group, IPDC, Naturub Accessories- Bangladesh, Pride, NRBC Bank,
Syngenta Bangladesh, Rupayan Group, Dutch Bangla Bank ltd, NESCO and Acme
Laboratories Ltd. Questionnaires were distributed among 60 employees. Among them only
60 employees were filled up the survey question.
Random sampling method was used. Random sampling is a sampling approach in which each
sample has an equal probability of being chosen. A random sample is designed to be
representative of the total population. This ensures that the population is accurately
represented, and that sampling bias is avoided.
60 employees filled out the survey and helped to complete the research.
For analyzing the study, we collected data from two sources. These are:
a. Primary Data:
For conducting the primary research and collecting primary data, a structured questionnaire
was designed comprising the relevant to the research study. The questionnaire included
demographics data and other questions related to the topic. The target respondents were
employees from different organizations like the Executive- HR, junior officer, Manager,
Head of HR, Head of HR Operations, Deputy Manager, Officer- HR, Assistant Manager of
renowned Private and Public organization of Bangladesh. The primary data was collected
through a structured interview questionnaire. The respondents were asked to give their
opinion according to the question.
b. Secondary Data:
Secondary data was also collected from websites of different organization. Various books and
articles also helped to complete this research paper. Other resources include books, articles,
journals, newspapers, and various websites related to the topic. All these sources helped and
painted a crucial outline of the extent of research being done.
4.6 Instrument
The questionnaire was prepared with the help of different research paper related to this topic.
In this questionnaire, there are two variables Dependent and Independent. Independent
variable is HRM planning and dependent Variables are organizational performance and
employee commitment. For HRM planning there are some measurement scales-
4. Performance Appraisal.
2. Continuous Commitment.
3. Normative Commitment.
For data analysis, we used various graphical figures, horizontal bar chart, vertical bar chart,
pie chart is formed from the response and the results of the survey questionnaire given to
different organization’s employees. Descriptive statistics were used to explain the
demographic features of the respondents in the study.
Chapter Seven
Recommendations
The first Human Resource planning is employment security. There is both a formal contract
between the employee and the employer. Employment security enables employees to go
home after work and provide for themselves and their families. This concept of security is
essential and underpins almost everything HR does.
The second HR best planning is selective hiring. This enables an organization to bring in
employees who add value. A key to building a competitive advantage. In today’s digital
world, there are a lot of different recruitment tools we can use to make the right selection.
More and more companies vigorously keep track of their recruitment metrics to see how well
they are doing in this regard.
We all know that teamwork is crucial in achieving goals. High-performance teams are crucial
for any company when it comes to achieving success. Creating and nurturing high-
performance teams is one of HR’s key responsibilities.
This HR planning states that companies should invest heavily in training time and budget for
its employees. After recruiting the best people, you need to ensure that they remain the
frontrunners in the field. This has become even more relevant today as the rate at which
technology is developing is growing exponentially.
Firstly, open communication about strategy, financials, and operations creates a culture in
which people feel they are trusted. It truly involves employees in the business. Secondly, if
you want your people to share their ideas, they need to have an informed understanding of
what’s going on in the business.
Conclusion
This study was done to evaluate the effect of human resource management planning on
organizational performance and mediating effect of employee commitment over all in
Bangladesh perspective. According to this study there is a positive relationship between the
human resource management planning and the organization performance. Examples of these
driving factors include recruitment and selection, training and development, performance
appraisal also some other factors under organization performance which are efficiency of the
work and creativity and innovation etc. Foe employee commitment, affective, continuous
normative factors are in there. These factors enable the organization performance also
employee commitment the HRM planning in its operations and reap the benefits of its use,
while barriers include Recruitment, Retention and Motivation, Managing with Limited
Resources and Budget, Training, Development and Compensation
The study also found that there is an indirect positive effect to the human resource
management planning through the employee commitment with a percentage higher than the
direct impact. At the end the researcher recommends that all policy makers of human
resource management should pay more concern on planning also policies and practices
related to the employees which results into developing the organization performance, also
HRM planning inside the Bangladesh perspective should concentrate on emotional aspects of
the employees which in turn result into a higher positive influence on their performance
compared with the direct impact on organization performances.
Ahmad, B. I., Kumar, B. S., & Ahmad, B. J. (2017). HRM practices and employee
commitment. ZENITH International Journal of Business Economics & Management
Research, 7(10), 89–96. Retrieved from http://www.indianjournals.com/ijor.aspx?
target=ijor:zijbemr&volume=7&issue=10&article=010
Al Damoe, F. M., Hamid, K., & Sharif, M. (2017). The mediating effect of organizational
climate on the relationship between HRM practices and HR outcomes in the Libyan public
sector. Journal of Management Development, 36(5), 1–25. https://doi.org/10.1108/JMD-04-
2015-0055