Accordingto Daniel & Metcalf (2001), recruitment is part of the over-all managementfunction of staffing that serves a major role player in ensuring that companystrategies will be implemented. According to Drucker (1992), as he said that”every organization is in competition for its most essential resource:qualified, knowledgeable people” (Drucker 1992). Recruitment is defined as theprocess of discovering, developing, seeking and attracting individuals to fillactual and/or anticipated job vacancies (Sims 2002). It has three generalpurposes: to fulfill job vacancies; to acquire new skills; and to alloworganizational growth. There are several factors which influence recruitingefforts namely: organizational reputation, attractiveness of the job, cost ofrecruiting, recruiting goals and recruiting philosophy (Sims 2002).
Selectionis the partner of recruitment in HR planning. It is a critical process for theorganization because good selection decisions ensure the company of theirfinancial investments in their employees (Dean & Snell, 1993). Recruitment andselection has an important role to play in ensuring worker performance andpositive organizational outcomes.
Accurateemployee selection decisions have never been more important to organizationalsuccess. Organizations need quality staff that can operate in an environment ofincreasing complexity and change. Also, in a business environment whereintellectual capital increasingly represents an organization’s currency oftrade, it is people that create and sustain an organization’s competitiveadvantage.Hiringthe wrong person for the job can be costly. The time and expenses associatedwith long term financial and non-financial and implications of hiring the wrongperson make finding and hiring the right person critical.
Traditionally,organizations focused on identifying and selecting people based on their skillsand experience as it makes sense if one can find person who has the right setof skills and has done a similar job. therefore, this practice of humanresource management has a great affect on organization performance as to putthe right person with right skills at right place if organization put wrongperson then it will face loss. Compensation and rewardand Organizational performance:Accordingto Dessler (2005) defines compensation as all forms of payments or rewardsgiven to employees which arise from their employment. According to Shezad et al. (2008),did a study on impact HRM practices on perceived performance of universityteachers of Pakistan.
It was hypothesized that compensation, promotion andperformance evaluation practices are significantly and positively related toperceived performance of university teachers of Pakistan. Compensation andpromotion practices were found to be significantly correlated with perceivedperformance of university teachers of Pakistan. Performance evaluation practicewas found to be insignificantly correlated with the performance of universityteachers of Pakistan.
According to Milkovich & Newman (1999) “compensationrefers to all forms of financial returns and tangible services and benefitsemployees receive as part of employment relationship. Many researchers revealedthe importance of compensation in motivating employees. According to Bohlander,Snell and Sherman (2001) narrated that compensation benefits have greatimportance in human resource management by providing reward to their employeesagainst their efforts. Compensation benefits are very effective to energize andguide employees in achieving their desired goals. Money can be used to motivateemployees for different reasons.
One can be motivated by providing them basicnecessities of life. High-performance companies understand the importance ofoffering awards and incentives that gives effective and outstanding work. Ithas great importance to motivate and is effective methods of reinforcingcompany expectations and goals. Compensation has great impact on employeeperformance and employee performance has great impact on organizationalperformance.
Training and Development and OrganizationalPerformance:Training and developmentdemonstrates a commitment to keeping employees on the cutting edge of knowledgeand practice. Creativity and innovation also trigger the performance of employeesand facilitated by organizational culture which training and developmentprograms provide. According to Tushman and O’Reilly (2002), stated thatorganizational culture lies at the heart of organizational norms that reflectsthe influence of organizational culture on creativity and innovation. It alsoplays an important role in creating such an environment that enables learningand innovative response to challenges, competitive threats or newopportunities.
Thus, creating and influencing an adaptive culture is one of amanager’s most important jobs and which training and development programs availthe opportunities (Daft, 2010).It is verynecessary for the organization to design the training very carefully. Thedesign of the training should be according to the needs of the employees.
Thoseorganizations which develop a good training design according to the need of theemployees as well as to the organization always get good results. It seems thatTraining design plays a very vital role in the employee aswell as organizational performance. a bad training design is nothing but theloss of time and money. On the job training helps employees to get theknowledge of their job in a better way.
PerformanceAppraisal and Organizational performance:Performanceappraisal takes into account the past performance of the employees and focuseson the improvement of the future performance of the employees. It gives thestaff the opportunity to express their ideas and expectations for the strategicgoals of the company (Mullins, 1999). Employees can find what is expected fromthem and what the consequences of their performance are. Ideally they receive afair and analytical feedback for their performance (Derven, 1990). Performanceappraisal helps to rate the performance of the employees and evaluate theircontribution towards the organizational goals. It helps to align the individualperformances with the organizational goals and also review employees’performances. Besides, enhancing motivation appraisal is about involvement inthe ‘big picture’ – responsibility, encouragement, recognition for effectivedelivery and effort (Malcolm and Jackson, 2002).
Performance Appraisal is amotivation for the employee, who performs well in the present to go on doing soand in the future (Derven, 1990).Performanceevaluation is the part of performance management which concern with performanceof employees. Performance evaluation can be defined as the procedure toevaluate the past and current performance of an employee related to theperformance standards. In other words, Performance appraisal is the procedurethrough which an organization measures the total input of employee to theorganization during a specific period of time. Therefore, put the right person at right place is veryimportant and to retain talented employees with organization it is veryimportant to reward them and also provide platforms to teach them updatedskills as well as provide them feedbackof their performance as to aware them about their performance. As employees areassets of organization and have great role in organization performance. Humanresource practices has great impact on organizational performance.