Impact of Human Resource Practices on Job Satisfaction with Special Reference to Delhi Metro Rail Corporation

Transcription

1 Impact of Human Resource Practices on Job Satisfaction with Special Reference to Delhi Metro Rail Corporation * *Research Scholar and ICSSR Doctoral Fellow, Department of Commerce, Aligarh Muslim University, Aligarh (U.P.) ABSTRACT The employee Job Satisfaction represents one of the most complex areas facing today s managers when it comes to managing their employees. It is the most important area which must be given maximum concentration by the organization. Unless and until each and every organization spares no effort to find out the particular problems which affect not only their satisfaction but the entire performance, it will make oodles of disturbance. In this era of highly competitive environment, Service sector is trying hard to win the mind of customers by providing them value added service and quality innovative products to remain competitive in the market. This study aims at exploring the impact of HR practices on job satisfaction in the context of Delhi Metro Rail Corporation. The world of human resource management is changing more rapidly than we can imagine. Recognizing these challenges of the organization has created the need for fundamental advances in human resource management. A total of 60 responses from DMRC was collected and analyzed objectively through questionnaire. It was found that HR practices have significant association with job satisfaction (JS). In addition, human resource planning (HRP), and training and development (TND) were found to have positive impact on job satisfaction (JS). It was also found that TND has the greatest impact on JS. Since, the HRM practices are mostly responsible for the achievements of business strategy and success; this paper has given particular attention to the need of importance of HRM practices in DMRC. Key words: HRM Practices, Job Satisfaction and Delhi Metro Rail Corporation. INTRODUCTION Success in today's competitive market depends less on advantages associated with economies of scale, technology, patents but are more derived from organizational human resources and high involvement of human resource management practices. For an organization to be more effective it should have skillful and innovative employees to work and should also try to retain them. There is not a single HR Practice which a company aspires to retain its employees. There are different HR Practices which a company combines to manage its HR system. A company should always combine Number of Best HR Practices which they should implement for the survival and sustainability of the organization. Best practices" in HR are subjective and transitory. Employees enhance internal capabilities of an organization to deal with current or future challenges to be faced by an organization. Good HR practices also energize people working in the organization. The commitment and motivation built through good HR practices can lead to hard work. The culture so built can help to create a sustainable and lasting capability of the organization to manage itself and not only cope with the external turbulence (Aneet, 2006). Good employees are supposed to have such characteristics as high satisfaction with their jobs, high commitment towards the organization, high motivation to serve the public and strong intentions to work for the organization willingly and devotedly. (Sangmook Kim,2004). There are different HR Practices for the organization to adopt. HR practices contribute to the organization s bottom line, areas such as recruitment, selection, training, development and performance appraisal which should be consistent, integrated and strategically focused. Firms need to build long-term commitment to retain their work force. Rapid changes in technology, globalization and conducted to find the antecedents of employee changing customer s demands for better quality not only satisfaction that lead towards the loyalty have revolutionized the organizations. 4

2 The impact of human resource management (HRM) practices popularly known as HR practices on organizational performance and employee attitudes has been a leading area of research in the developed world for years (Delaney and Huselid, 996; Huselid, 995; Katou and Budhwar, 2007; Petrescu and Simmons, 2008)). But surprisingly, very limited number of studies have been conducted on HR practices in the context of developing countries in general (Schuler as cited in Budhwar and Debrah, 200, Sing, 2004, Yeganeh and Su, 2008). According to Cranny, Smith and Stone (992) job satisfaction is a combination of cognitive and affective reactions to the differential perceptions of what an employee wants to receive compared to what he or she actually receives. Job satisfaction is a factor that would induce the employee to work in the long term position. Regardless of job satisfaction the organization or firm would confront with the cost of recruitment caused by turnover. For this reason, the organization should pay attention to employees job satisfaction as well. Human Resource Management is the part of the organization that is concerned with the people dimension. HRM can be viewed in one of two ways. First, HRM is a staff, or support, function in the organization. Its role is to provide assistance in HRM matters to line employees, or those directly involved in producing the organization s goods and services. Second, HRM is a function of every manager s job. An effective and competent human resource is strength of organizations in tackling the challenges of competitive environment prevailed in organisations today. The importance of possessing a competitive human resource is mandatory requirement for the success of today s organization as they are operating in a more competitive environment than earlier times. Human resource management is a system and its practices can significantly influence individuals in turn that work effectively for accomplishment of objectives and mission an organization. But in the recent past some new orientation is taking place in the Indian organizations due to the global impact on business activities. In the light of the changing business scenario that has led to many emerging human resource issues. In this context Delhi Metro Rail Corporation (DMRC) in India need no introduction which is successfully adopting and implementing innovative human resource practices for creating competitive advantage. For implementation and subsequent operation of Delhi Metro Rapid Transport System, a company under the name DELHI METRO RAIL CORPORATION (DMRC) was registered on 3 rd May 995 under the Companies Act, 956. DMRC has equal equity participation from GOI and GNCTD. Delhi, capital city of India has set the lead in accessible transportation. The best example is Delhi Metro Rail Corporation (DMRC), a joint venture of Government of India and Government of National Capital Territory of Delhi serving Delhi, Gurgaon and Noida of India. The developments and the initiatives/policies etc. undertaken are keenly followed by the rest of the country. DMRC follows people first policy which believes that human resource is its most important resource & continue to work for its development & realization of its full potentials. They have taken various HR initiatives like knowledge sessions, summer camps online grievance redressal mechanism to bring greater job satisfaction & enhancement of their human resource & organize various special lectures for the employees. But somehow there is a lack of HRM policies and practices among employees of DMRC. Development of any service- oriented industry like DMRC is totally depending on the quality of employees who are serving there. Today s globalised world success mantra is use of proper human resources and without the efficient use of human resource management, we cannot accomplish organizational objectives. It does not matter how perfect the planning organization and modern information and communication technology are. If the people do not want to work, management will not able to earn profit and complete desired task. Therefore, it is essential to manage the employee force efficiently for the overall development of an organization. RESEARCH QUESTIONS Specifically, this study was undertaken to explore the answer to the following research questions (RQ): RQ: Is there any association between HR practices and Job Satisfaction? RQ2: Do HR practices have any impact on Job Satisfaction in Delhi Metro Rail Corporation? 42

3 OBJECTIVES OF THE STUDY The main purpose of the study was to identity the impact of HR practices on job satisfaction. In order to materialize this objective, the following specific objectives were considered: To address the association between HR practices and Job Satisfaction. To identify the impact of HR practices on Job Satisfaction in DMRC. To suggest some measures in order to enhance the HR practices of the Delhi Metro Rail Corporation. REVIEW OF LITERATURE K V Rondeau, T H Wagar (200) examines the relationship between HRM practices, workplace climate and perceptions of organizational performance, in a large sample of Canadian nursing homes. Results derived from analysis suggest that nursing homes in our sample which had implemented more 'progressive' HRM practices and which reported a workplace climate that strongly values employee participation, empowerment and accountability tended to be perceived to generally perform better on a number of valued organizational outcomes. Bajpai and Srivastava (2004) studied the satisfaction levels of employees of two public sector and two private sector banks in India. The results indicated that layoff threats, quick turnover, less welfare schemes, and less scope for vertical growth increased job dissatisfaction. In contrast, secure job environment, welfare policies, and job stability increased the degree of job satisfaction. Asta Savaneviciene, Zivile Stankeviciute (20) wrote on the human resource management practices linkage with organizational commitment and job satisfaction which reveals the nature of HRM practices and the content of organizational commitment and job satisfaction. The paper proposes an answer to the question - how HRM practices can influence organizational performance. The approach of impact is based on AMO framework, which discloses the importance of employees abilities, motivation and opportunity to participate. Besides, the paper presents empirical research showing that skill-enhancing, motivation-enhancing and engagement-enhancing HRM practices have positive relations with affective human resource reactions: organizational commitment and job satisfaction. Syed N. and Ya Lin Xiao (202) have shown impacts of high performance Human resource management practices on employee s job satisfaction. The objective of this study was to find relationship between Human Resource Management practices and job satisfaction among employees in telecom sector. The results of the paper offered empirical support for the existence of a positive and statistically significant impact of High performance HRM practices on employee job satisfaction in Pakistan. In this study five High performance human resource management practices were hypothesized to influence the employee job satisfaction in telecommunication companies. The results suggest that High performance HRM practices, namely empowerment, job rotation, employee participation and Merit based promotions & performance based pay are related to job satisfaction except grievance handling procedures. Ruchi Goyal (202) investigate the influence of human resource practices on the employee job satisfaction and organizational commitment of the pharmaceutical companies in India. The world of human resource management is changing more rapidly than we can imagine. Recognizing these challenges of the organization has created the need for fundamental advances in human resource management. This paper also suggests certain possible solution to the above said problem. All of these studies reveal the fact that number of researches have come out of human resources management subject. Moreover not a single research with special reference to Human Resource Management Practices of Delhi Metro Rail Corporation (DMRC) has been under taken to the best of my knowledge. Hence the present study attempts to study and review scientifically the impact of human resources management practices on Job Satisfaction with special reference to Delhi Metro Rail Corporation in the modern era. This present study is going to be conducted with a focus on creating a competitive advantage through the effective utilization of human resource. Hence, a humble attempt has been made for DMRC to concentrate on their HRM Policies and practices in delivering job satisfaction to the Delhi Metro employees. 43

4 HYPOTHESES OF THE STUDY H : HR practices have significant association with Job Satisfaction. H 2 : HR practices have significant impact on Job Satisfaction. H 3 : HR planning positively influences Job Satisfaction. H 4 : Recruitment and Selection positively influences Job Satisfaction. H 5 : Training and Development positively influences Job Satisfaction. H 6 : Performance Appraisal positively influences Job Satisfaction. H 7 : Compensation positively influences Job Satisfaction. H 8 : Industrial Relations positively influence Job Satisfaction. RELATIONSHIP FRAMEWORK MODEL OF VARIABLES For the better conceptual understanding of the underlying link between dependant and independent variables, a model of relationship framework can be formulated and developed based on the findings of literature review. RESEARCH DESIGN AND METHODOLOGY This section is divided into five sub-sections. The first sub-section presents the research design. The second sub-section illustrates the sampling design. In the third, data sources are mentioned. The fourth sub-section declares the selection of measures and the properties of instruments. The fifth sub-section explains the reliability and validity whereas the last sub-section highlights the types of statistical techniques employed to test the hypotheses. Research Design This study is basically an exploratory study. Exploratory studies are a valuable means of finding out what is happening; to seek new insights; to ask questions and to assess phenomena in a new light (Robson, 2002). It can be linked to the activities of the traveller or explorer (Adams and Schvaneveldt, 99). Its great advantage is that it is flexible and adaptable to change (Naipul, 989). Sampling Design A sampling frame of 9 metro stations was prepared on the basis of listed under DMRC official data. Among them, 20 metro stations (22% of the population) were selected randomly and all respondents were selected as per convenience. 44

5 Data Sources and Instrumentation The study was compiled with the help of primary data and secondary data. Primary data was collected by means of the questionnaire. A total of 60 employees responded through the questionnaire. Moreover, the desk study covered various published and unpublished materials on the subject. The questionnaire was administered to employees of Delhi Metro Rail Corporation in Delhi. A five points rating scales of questionnaire from strongly disagree () to strongly agree (5) were adopted to measure the variables of HR Practices on Job Satisfaction of DMRC. Reliability and Validity Before applying statistical tools, testing of the reliability of the scale is very much important as it shows the extent to which a scale produces consistent result if measurements were made repeatedly. This is done by determining the association in between scores obtained from different administrations of the scales. If the association is high, the scale yields consistent results, thus it is reliable. Cronbach s alpha is the most widely used method. It may be mentioned that its value varies from 0 to but the satisfactory value is required to be more than 0.6 for the scale to be reliable (Malhotra, 2000; Cronbach, 95). In the present study, we, therefore, used Cronbach s alpha scale as a measure of reliability. Table. Reliability value of the Scale Scale No. of Items Cronbach s Alpha (α). HR Planning Recruitment & Selection 3. Training & Development Performance Appraisal Compensation Industrial Relations Job Satisfaction - Source: Survey data From the Table-, it is seen that the reliability value was estimated to be α= between the scale. If we compare our reliability value with the standard value alpha of 0.6 advocated by Cronbach (95), Nunnally & Bernstein (994); and Bagozzi & Yi s (988) we find that the scales used by us are highly reliable for data analysis. Validation procedures involved initial consultation of the questionnaires. The experts also judged the face and content validity of the questionnaires as adequate. Hence, researcher satisfied the content and construct validity. DATA ANALYSIS AND FINDINGS In the present study, we analysed our data by enter wise method in a multiple regression analysis. In this context, a multiple regression was performed, by making use of all the discrete variables (i.e., dependent and independent variables) available in the dataset. The estimation process was based on Ordinary Least Squares (OLS) [i.e.,y= a + bx]. For this purpose, we consider the following model specifications, by taking as dependent variable i.e., job satisfaction (JS) by making HR practices as independent variables: JS = ß O +ß (HRP) +ß 2 (RNS) +ß 3 (TND) +ß 4 (PA) +ß 5 (COM) +ß 6 (IR)+e... Model () 45

6 where: ß 0, ß, ß 2, ß 3, ß 4, ß 5 and ß 6 are the regression co-efficient; JS: JobSatisfaction; HRP: HumanResourcePlanning; RNS: RecruitmentandSelection; TND: TrainingandDevelopment; PA: PerformanceAppraisal; COM: Compensation; IR: IndustrialRelations; E: error term. To test how well the model- fit the data and findings, correlation (r), R, R 2 (Coefficient of determination), variance, analysis of variance (ANOVA) and the t statistic were used. Correlation analysis was performed to find out the pair wise relationship between variables: HRP, RNS, TND, PA, COM, IR and JS. Hence, the results are summarised in Table-2. Table 2. Correlations Matrix for HR Practices and JS Variables HRP RNS TND PA COM IR JS HRP RNS 0.585** TND 0.627** 0.422** PA 0.772** 0.8** 0.637** COM 0.728** 0.542** 0.699** 0.75** IR 0.356** 0.598** 0.33** 0.644** 0.533** JS 0.626** 0.493** 0.623** 0.65** 0.594** 0.439** Source: Survey data; **Correlation is significant at the 0.0 level (2-tailed) Table-2 shows that the factors HRP, RNS, TND, PA, COM, and OIR are independently positively correlated with JS and also highly significant at % levels. Therefore, Hypothesis of the present study was accepted. Here it is obvious that the maximum correlation (r =0.626) is existed between HRP and JS, followed by the association (r =0.623) between TND and JS; PA and JS(r= 0.65); and COM and JS (r =0.594). It should be necessary to give the highest emphasis on HRP for superb job satisfaction of employees. Training and development is also crucial for wonderful job satisfaction of employees. Although there has no so influential link (r =0.493) between RNS and JS; and IR and JS (r=0.439). These were also essential for job satisfaction. HR practices are pair-wise positively correlated with one to another and also statistically significant at P-value Among the six HR practices, the relationship (r =0.8) between RNS and PA is the highest, followed by the link (r =0.772) between HRP and PA. 46

7 Further, a multiple regression analysis was performed to identify the predictors of JS as conceptualized in the model. An enter-wise variable selection was used in the regression analysis and table-3 and table-4 show the summary measure and ANOVA of the model. Table 3. Predictors of JS - model summary Predictors:(Constant), HRP; RNS; TND; PA; COM, and IR Table 4. ANOVA Model 47 Sum of Squares df Mean Square F Sig. Regression (a) Residual Total Predictors: (Constant), HRP; RNS; TND; PA; COM, and IR Dependent Variable: JS The HR practices (HRP; RNS; TND; PA; COM and IR) in the above model revealed the ability to predict JS (R 2 = 0.58). In this model value of R 2 denotes that 5.8 percent of the observed variability in JS can be explained by the HR practices namely HRP; RNS; TND; PA; COM and IR. The remaining 48.2 percent is not explained which means that the rest 48.2 percent of the variation of JS is related to other variables which are not depicted in the model. This variance is highly significant as indicated by the F value (F=9.497 and P = 0.000) [For details please see table-4]. An examination of the model summary presented by the table-3 in conjunction with ANOVA, presented by the table-3, indicates that the model explains the most possible combination of predictor variables that could contribute to the relationship with the dependent variable. Table 5. Coefficients for Predictors of JS Models Model R R 2 Adjusted R (a) Unstandardized Coefficients ß Std.Effor Beta Standardized Coefficients t Sig Constant HRP RNS TND PA COM IR Source: Survey data The table-5 shows that HRP and TND are positively influencing on JS. For HRP, the value of t is.892(p=0.064, df=53), for TND, the value of t is (p= 0.07, df=53). Thus, we accept Hypothesis 3 and

8 5. But for RNS, PA, COM and IR which fall in the area of rejection. Thus, we do not accept the Hypothesis 4, 6, 7 and 8. Hence, it can be concluded that HRP and TND have significant impact on JS. Therefore, hypothesis-2 is also partially accepted. CONCLUSIONS OF THE STUDY From the correlation matrix, the highest positive value of correlation between HRP and JS clarifies that the authorities of selected industrial enterprises are required to focus on HRP for getting fabulous employees job satisfaction followed by TND; PA; and COM. It is also found that HRP and TND have significant impact on JS. The present study only collected perceptual data. The study did not collect data regarding size of the firms, the volume of the production, and the turnovers. IMPLICATIONS OF THE STUDY Although the present study was confined to identify the impact of HR practises on job satisfaction, it may be appropriate to state briefly the policy implications for the study. In this context, the following policy actions may be considered worthwhile. Organizations should go for thorough HR planning. Organizations should maintain healthy industrial relations based on mutual trust and confidence of the employers and employees. Organizations should develop good working condition. This facilitates employees to do their work effectively. Organizations should induce employees to perform well. This can be achieved by providing reward, motivations, and other benefits etc. Employees should be trained to adopt new technology and or develop their career. Organizations should provide unbiased promotion. That is promotion should be provided based on the qualification of employees and /or experience. Organizations should implement equal employment opportunities. That is employees should not discriminate against female, and minority or old worker. Organization should design working procedure including hours work, over time payment and hour s payment. Proper working environment should be designed. In that the organization should provide adequate facilities employees to do their works such as appropriate equipment, work breaks, and work sharing. Organization should design good grievance procedure, disciplinary procedure and separation procedure etc. LIMITATIONS OF THE STUDY The study did not cover all the HR practices of the surveyed metro stations of Delhi Metro Rail Corporation. Small sample size was one of the major limitations of the present study. DIRECTIONS FOR FUTURE RESEARCHES In order to validate the findings of this study, comparative study is another interesting approach that can be done by future researchers. Additionally, the research model of this study can be retested in other business organizations, so that it can be generalized to other economic sectors. 48

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