REVIEW OF RELATED LITERATURE
A. Recruitment and Selection Process
According to Qin et al. (2020), the employment market has gone through a data burst
as a result of the increased usage of internet recruitment services. The bridge for matching
the suitable candidate to the right roles, Person-Job Fit, requires recruiters to look for clever
solutions. Existing research on person-job fit often focuses on assessing how well talent
qualifications meet job needs through manual inspection by human resource specialists,
which is susceptible to error due to subjectivity, incompleteness, and inefficiency of human
judgment.
Today, a company's core source of competitive advantages is its talent. Employees’
performance affects the organization's performance. An organization's employees will stand
out from their rivals if they have a special skill. Along with hiring new employees, retaining
talented employees is a big responsibility for HR managers in this cutthroat industry. The
challenge of managing talent is crucial and extremely hard. Acquisition of the right talent
strengthens organizational strategy (Hongal & Kinange, 2020).
As stated by Noronha (2020), individuals comprise organizations; they add value
through tested business processes, such as these important activities, including sales,
innovation, and customer service. As a business seeks to accomplish its objectives, it must
make sure that its hiring procedure is ongoing and integrated for choosing, educating,
fostering, providing for, and appreciating these priceless talented employees. It is highly
advised to get someone on board once the appropriate talent has been located and their
objectives made clear. The management should appoint the appropriate individuals to the
board for a certain set of long-term objectives in order to stay competitive.
According to Jackson & Wilton (2016), There are three key patterns in graduate
labor markets: underemployment, ongoing rise in the number of graduates, and what seems
like endless uncertainty. Graduates need to hone their career management skills and have a
firm belief in their own abilities in order to navigate a highly complicated job terrain.
The limited perspective of talent acquisition considers it to be a function of human
resources unit tasked for finding, obtaining, and employing the top talent needed to meet the
objectives of the firm, yet talent acquisition has emerged as a special activity to hold a
specified role distinct from human resources and has assumed accountability for developing,
assessing, and projecting talent strategically (Alashmawy & Yazdanifard, 2019).
B. Training and Development of Employees
According to Hammond & Churchill (2018), Training focuses on the activities that
employees can do today to prepare them for their current jobs, whereas development focuses
on preparing employees for future roles and responsibilities. It analyzes that training and
development aim to create learning organizations to ensure employees can effectively
perform their jobs, gain a competitive advantage, and seek self-growth through value
addition.
Employee performance is critical in competitive environments, where good
performance leads to success while poor performance may lead to failure. Moreover,
employee performance can be measured in various ways, including satisfaction,
performance/productivity, and employee absenteeism. It is a function that an individual can
successfully perform within the framework of usual constraints and available resources (Zeb
et al., 2018).
As stated by Kareem (2019), employment is rapidly changing, technology and
globalization are influencing practices and experiences, and societies are becoming more
global and multicultural. With the rise of globalization and rapid changes in the business
environment, employability is quickly becoming one of the most important goals for any
organization. Human resource quality is central to organizational effectiveness, and human
resource development practices have the potential to improve employee competencies.
Employee participation helps to mitigate the impact of training on continuous
improvement. However, the higher the adherence to a standard improvement method, the
lower the indirect effect of training via employee involvement on constant improvement. As
a result, training should be provided not only in the common improvement method but also
in the field of continuous improvement (Van Assen, 2021).
According to Hejase (2018), The fact that employees form the foundation of any
organization is essential to note. Employees are the fundamental determinants of how
successful or incompetent an organization will end up being, regardless of how big or small
the organization is. To ensure that the workplace has the right employees who have received
professional training and are qualified to carry out their duties effectively, it is essential to
have an adequately trained workforce. The issue, though, is that organizations are expected
to produce more than they did previously due to how dynamic the economy is. Due to the
stress caused by all of this demand, managers are compelled to put pressure on their staff to
produce higher levels of output and performance. However, workers must receive the
necessary training to have a productive workforce.
C. Compensation and Benefits
In the modern world, it is crucial to consider employees' well-being to make sure
they put their all into attaining the organizational goals. The term "incentives" refers to a
performance-based compensation scheme that links employee compensation to the success
of directly employed employees. An employee's desire to put in a lot of effort is greatly
influenced by compensation and benefits. Employee performance is very important in
contributing to organizational success, as employees will improve their performance to
receive a bonus or promotion as compensation and benefit; hence, facilitates a significant
relationship between pay and benefits and worker performance (Kadir et al., 2019).
Since they help with employee retention, compensation and benefits are essential
elements of human resource management. These incentives encourage employees to work
harder and accomplish more. It enables the company to pay staff based on performance and
encourages them to succeed in everything they do. Workers are more likely to show up for
work when they are paid fairly. Their morale remains high, and their levels of job
satisfaction increase. Employees that are motivated to come to work every day and give
their best work are more likely to have strong morale. Because a proper compensation and
benefits package will enhance employee engagement and retention, turnover will also go
down, saving the company money on hiring new staff.
Although employees are generally satisfied with benefits, the EBRI/Greenwald &
Associates Health and Workplace Benefits Survey also examines how valuable benefits are
concerning wages. In a trade-off scenario, employees were asked to choose between either
keeping their health benefits as they are now, opting for fewer health benefits and more
salary, or more health benefits and less salary. Fifty-eight percent indicate satisfaction with
the salary/ health benefits balance they receive right now, while 18 percent would rather
have more health benefits and lower wages. Another 24 percent would prefer fewer health
benefits and higher wages, perhaps reflecting the entrance of younger workers into the
workforce. Employees continue to indicate that benefits play a key role in whether to remain
at a job or choose a new one. In a sense, as satisfaction with benefits increases, so does
overall job satisfaction (Greenwald & Fronstin, 2019).
Furthermore, a relevant literature from American Supply Association entitled “2020
Cross-Industry Compensation & Benefits Survey” indicates that losing an employee can cost
employers between 30% to 40% of an hourly employee’s earnings, 150% for salaried
employees, and as high as 400% for high-level positions/top performers. This was backed
up by Kadir et al. (2019) indicating that, to recruit the new employee, the organization will
have to spend money on sending the new employee for training. Therefore, by paying
workers fairly—compensation and benefits—companies may minimize employee turnover
and keep good people on staff. And as to why it is important to ask the question, “How does
a firm ensure its compensation levels are remaining competitive?” This offers to assess the
competitiveness of a firm’s compensation levels and benefit offerings in attracting and
retaining employees.
D. Performance Appraisal and Career Management
According to Keegan & Den Hartog (2018), line managers may occasionally choose
to overlook some of the information gathered, which might cause evaluators to have an
unfavorable opinion of the process's fairness. Project managers, on the other hand, are
frequently able to watch a performance and create a rich picture of how a project worker
performs on a project, especially if the worker plays a key position in that project.
After the management team's performance appraisal system was optimized,
predictions of the company's profit in the following five years and the market share of the
two types of cars it mostly sells were made based on how the business has worked during
the previous five years. The outcomes demonstrate that, following the management staff's
performance appraisal system's improvement, the management team's enthusiasm has
increased, and the firm's vitality and market competition have improved (Peng, 2022).
Learning and development (L&D) is a critical component of strategic personnel
management because it helps organizations preserve their competitive advantages in today's
fast-paced business environments. L&D plans customized training for employees to help
them advance their knowledge and abilities (Wang et al., 2022).
According to Cappelli & Conyon (2017), perhaps more crucially, we discover proof
that employers reward advances in performance and the way in which they pay attention to
various performance levels. These elements support the idea that performance reviews serve
more purposes than simply resolving subjective issues with earlier performance. Instead,
they are an adaptation to the special, open-ended nature of work relationships, where
advancements in performance count and bosses have power over rewards that could be
utilized to surprise employees.
E. Managing Labor Relations
Pătrău (2019) contends that an organization's activity efficiency is primarily
determined by its leadership ability to maintain a constant social discourse within its
management as this serve as a positive means to incorporate employees' interests and
aspirations into the organization's overall ambitions. Likewise, employee engagement is
justified and economically encouraged since it contributes to discovering solutions for
increased output and productivity, cost reduction, and avoiding damage or losses caused by
social disputes. This economic coordination generated from employees' engagement in
social discourse is supplemented by the organization's social obligation to fulfilling external
clients’ expectations and to addressing the emergent demands of its own personnel.
Aside from that, Corts et al. (2022) explored the practical ramifications of
recognizing the established link between human resource practices (HRPs) and union
presence, in addition to its implications for social agents, union representatives, and
organizational leaders. First, regardless of size or industry, HRPs are crucial to any
organization. Concerning this, in any case when the size of the organization makes it
impossible to create their own human resource department, managers might seek advice
from outside experts. Second, businesses should foster a culture of cooperation with
representatives because when they are on the same page, employee well-being increases,
and labor relations are strengthened.
Wang and Tu (2018) proposed that harmonious labor relations are built on trust
between employers and employees and that when that trust is violated, labor disputes occur.
Their findings indicate that a breach of trust between the employer and the employees will
result in labor disputes. Non-managers and managers, on the other hand, had distinct
perceptions of trust violations and labor disputes. In order to create harmonious labor
relations, businesses should comprehend this dynamic and apply it to their HR practices.
A comparable study conducted by Chulanova (2019) states that the fundamental
principle of modern employer-employee relationships is the establishment of a harmonious,
trustworthy alliance. The agreement procedures, which presuppose consultations and
negotiations between social partners and the development of a system of contractual
agreements and agreements at diverse levels of social and labor relations, are paramount in
this regard. In addition, this fosters circumstances for the democratization of worker-
employer interactions in the social and labor sectors, infusing them with new content. It is
vital to create levers and methods for implementing social guarantees and labor pay,
adhering to labor regulations, improving working conditions, and protecting workers in the
workplace.
In relation to the former studies, Newman et al. (2019) discovered that unions have a
favorable impact on organizational trust when there is a cooperative work environment. As a
result, union labor may strengthen the quality of labor relations.
On a daily basis, as elaborated by Ramlall & Melton (2019), corporations require a
department to deal with contemporary issues and disputes between management and labor.
Concerning this, mechanisms for dealing with labor disputes against management were
necessitated by labor relations. Consequently, HR's function grew in importance as labor
contracts became more complex and intricate. On that note, HR continues to engage in
grievance panels and processes, but management requires HR to assist in labor contract
negotiations.
Furthermore, Butler and Tregaskis (2018) mentioned that union and organization
collaborations help in strengthening the latter’s ability to deal with and overcome various
challenging transition scenarios by leveraging the power of the collective voice.
Meanwhile, Kiselyova (2020) argues about the idiosyncrasies of introducing a labor
compliance system as a set of mechanisms for guaranteeing employers' and other labor law
subjects' compliance with current labor laws and other labor regulations. Mainly, the
purpose of labor compliance is to avoid abuses of labor rights. With that, it is emphasized
how promptly companies, enterprises, and institutions should establish a compliance control
department, which would oversee the matter at all levels and open an opportunity for a
compliance specialist position, who would be responsible to act in line with the said
compliance program. This would not, however, only make it easier for organizations and
businesses to operate, but it will also considerably improve the quality of labor legislation.
In light of this, it is considered that the issue of adopting labor compliance at businesses and
institutions is highly pertinent.
F. Safety, Health, and Security
Safety in the workplace is everyone’s duty inside a company. HR professionals and
managers have a significant role in defining standards, ensuring compliance with safety and
health rules, and tracking workplace incidents. Also, HR professionals and managers should
be thoroughly aware of these regulations and ensure that they are adhered to in the
workplace, regardless of the business. These standards are typically incorporated into the
strategic HRM plan of any firm and are more important for industrial companies (M
Libraries, 2022).
Health and safety are the most important considerations for ensuring the well-being
of employees in all businesses. This is of the utmost importance for an organization, as
personnel is susceptible to accidents and injuries. In addition to health, tracking and tracing
of people and assets, and workforce safety, reactive and proactive catastrophe management
is essential. (Kesavan et al, 2022). Management should make employee health and safety
practices a top priority since they protect lives, boost productivity, and decrease costs. These
health and safety initiatives should emphasize employee participation, ongoing monitoring,
and a wellness component overall. Workplace safety necessitates that safe working
circumstances not expose employees to a significant risk of becoming unfit for work.
Therefore, occupational health and safety aim to provide the conditions, skills, and
behaviors that enable the worker and their organization to carry out their duties effectively
and in a manner that prevents them from being harmed. Safe working environments
influence worker habits, which in turn affects productivity. This suggests that employees
working in a secure environment are likely to operate in a manner that does not endanger
them (Jonathan, 2018).
Safety in the workplace is everyone’s responsibility inside an organization. HR
managers and employees have a crucial role in creating standards, verifying compliance
with health and safety regulations, and recording workplace events. Additionally, HR
professionals and managers should comprehensively understand these standards and
guarantee that they are followed in the workplace, regardless of the industry. Typically,
these standards are incorporated into the strategic HRM plan of any organization, and
industrial companies place a greater emphasis on them. Disability management, proactive
health and wellness initiatives, preventative measures, and a sound onboarding and training
program create bottom-line results. Health and safety plans assist firms in achieving goals
and objectives by preventing lost-time injuries and boosting productivity. Health and safety
can be part of a company’s overall success plan and a talent retention tool. Employee health,
safety, and wellness management affect fairness views (Miller, 2022).
The Occupational Health and Safety Management framework is unquestionably one
of the most essential aspects of workforce management in commercial construction
companies. It ensures workers’ trust and confidence in the safety and health parameters on
the job site. The Occupational Health and Safety Management structure and Policy should
be linked to the safety and health risks associated with construction-related work. The
Occupational Health and Safety Management system should also ensure that unavoidable
threats do not compromise the health and safety of those who work outside the house.
Lastly, effective safety management provides a safe environment, workplace, and safety-
conscious employees (Singh et al., 2020).
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