Vol 4 Issue 7 April 2015
ISSN No : 2249-894X
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Review Of Research ISSN : 2249-894X Impact Factor : 3.1402(UIF)
Volume-4 | Issue-7 | April-2015 Available online at www.ror.isrj.org
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON
EMPLOYEES SATISFACTION WITH SPECIAL REFERENCE TO BPO’S
EMPLOYEES AT COIMBATORE DISTRICT, TAMIL NADU.
T. Muthukumar
PhD Research Scholar, PG & Research Department of Commerce, Jamal Mohamed College,
(Autonomous), Tiruchirappalli
Short Profile
T.muthukumar is a Ph.D Research Scholar of PG & Research
Department of Commerce , Jamal Mohamed College in
(Autonomous) in Tiruchirappalli. He has Ph.D. complete.
Co-Author Details :
M. Sirajudeen
Research Supervisor and Assistant Professor of commerce, PG & Research department of Commerce, Jamal Mohamed
College, (Autonomous), Tiruchirappalli .
ABSTRACT:
This study attempts to explore the
i m p a c t o f H R p ra c t i c e s o n
employees’ job satisfaction in the
context of selected bpo companies
in Coimbatore district. The world of
human resource management is
changing more rapidly than we can
i m a g i n e . Re c o g n i z i n g t h e s e
challenges of the organization has
created the need for fundamental
advances in human resource
management. It was found that
factors like recruitment and
selection, training and development, compensation practices,
performance appraisal; career
development management (HR)
practices have significant association with job satisfaction (JS). This paper also suggests certain possible solution to the above said
problem.
KEYWORDS
Human resource practices, employee job satisfaction, bpo’s.
1
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
INTRODUCTION
After 1991 India has accepted the liberation, privatisations and globalization policy. The impact
of this policy changes in Indian agriculture sector, industry sector and service sector. In the modern era,
the economists have announced “human resource” as an advent in the international arena in a
thumping fashion. The human resource is indubitably the most dynamic backbone of any economic
enterprise; “the Resource of all resources” will take a giant leap over all resource components. Business
experts highlight the issues such as global competition, the fast changing information and technology;
composition of workforce etc., the business performance has successfully transited from the slow
growth economy a fast growing one. There was a shift from the tradition bound personnel management
to people oriented service. The conventional personnel management is more bureaucratic whereas the
human resource management attaches more importance to humanism and humanization. New
techniques and styles of managing have been developed. Personal administration, Industrial relations
and labour welfare have become the integral parts of the broad human resource practices. Human
resource professionals must concentrate more on the deliverables of their work and less on just getting
the work done. They must tackle the complex, social, economic legal and ethical issues. An efficient
human resource is a strategic asset.
STATEMENT OF THE PROBLEM
The study is an attempt to examine the HRM practices in BPO industry in Coimbatore, Tamilnadu.
This implies an inquiry as to how the management ensures the availability of the right kind of people in
right quantum at the right place, at the right time, doing the right things for the achievement of the
organizational objectives. This study also examines, whether the present working conditions in the BPO
companies are suitable to attract the most talented people to opt for a career in the industry.
OBJECTIVES
To study human resources management practice of BPO’s and its impact on employees satisfaction
To review the theoretical background of human resources management practice in bpo’s industry
To suggest measures for improving human resource management practices in bpo’s units
METHODOLOGY
This paper is based on both primary and secondary data. Primary data were collected through a
structured questionnaire was collected from employees of BPO’s industry in Coimbatore district.
Convenient sample technique has been used to interview the employees. The target population of this
study was employees in BPO’s Coimbatore.Who were working as a staff in different BPO’s in Coimbatore
district. The questionnaire consists of different questions on three HRM practices such as recruitment
and selection, carrier growth, working conditions. A five points rating scales of questionnaire from
Strongly Agree =(A),Agree = (B), Neutral = (C), Disagree =(D) and strongly disagree = (E). The secondary
data used in the study have been collected from related journals, books, newspaper and internet, etc.
REVIEW OF LITERATURE
Hafiz Kashif Iqbal et al (2013) the study aims to examine the impact of selected human resource
2
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
practices on job satisfaction in manufacturing as well as services sector of Pakistan from Punjab
province. Survey questionnaire was used to gather cross sectional data to summarize Whole Ocean in
one drop. Empirical results from data gathering reveal latest indications formulated hypothesis
approved and has been accepted. Regression analysis showed that supervisor role has strong positive
effect on job satisfaction (49.2% variation in job satisfaction due to the supervisor role which is
significant at .000), participation in decision making the factor which is the optimistic about company
success has lesser positive effect on job satisfaction (11.9% variation in JS is due the PDM) and similarly in
compensation portion performance related bonuses is effective (7.6% variation in JS due to the CP). It is
concluded that mentioned HR practices having an effect on job satisfaction of an organization
employees in Pakistan. Strength of the effectiveness is different and environment of the organization
also effective between the relationships of HR practices and Job satisfaction. Supervisor’s role is most
effective for the Job satisfaction according to this study.
Hussain and Rehman (2013) examined the relationship between the HRM practices
implemented by the organization on employee’s intention to stay and work effectively for the
organization. The result of the study explored that HRM practices viz-a-viz: person-organization fit,
employment security, communication and training and development are contributing strongly in
developing the employees’ intentions to stay with organization. Further, strong positive interrelationships were found between HRM practices and employees’ retention and such practices
enhances employees’ retain ability of organizations.
Lamba and Choudhary (2013) revealed that how HRM practices provide an edge to employee’s
commitment towards an organization goal in the global competitive market. The study concluded that
HRM practices such as training & development, compensation and welfare activities has significant
effect on organizational commitment and are associated with superior organizational performance,
which help in retention of knowledgeable and skilled employees.
Olusegun (2013) conducted a study among universities employees in South West Nigeria to
examine the influence of job satisfaction on turnover intentions. The result of the study found that the
linear combination effect of job satisfaction and turnover intentions was significant. There were
significant relationships between job satisfaction and turnover intention. The study also revealed that
there was no significant difference in the turnover intention of library personnel by their place of work.
N.Shaik Mohamed and G.Pasupathi (2013) indicates that the relationship between HR practices and its
overall dimensions by using mulietiple regression which almost all of the aspects of the factors are
positive value. The least value emphasis that to be improved i.e satisfaction of pay and recruitment and
selection procedure by the hotel employer should be in favour of the employees to improve the
satisfaction level which will lead to perform better to attain growthness of the hotel.
P.M.S.Abdul Gaffoor and K.S.M.D .Akmal (2013) in their study on “Innovative HR practices in
Larsen & Toubro limited” in order to withstand global competition, best HR practices have a continuing
and significant influence on employment and productivity. There is unlimited potential in HR that can be
encouraged, developed and nurtured in a proper environment. It is evident that best HR practices will
certainly help in marching ahead besides giving ample directions for others to emulate. The company in
spite of its diverse nature of operations has blossomed and grown because of its people who give more
than 100 per cent of their time and energy.
Mostafizur Rahmania et al (2013) The study shows that HRM practices are very poor in
pharmaceutical companies in Bangladesh that leads poor satisfaction of employees. The study found
employees are satisfied to recruitment and selection process, and training and development of
pharmaceuticals companies. Employees are dissatisfied about human resource planning. The
pharmaceuticals companies should have the right process to forecast the demand and supply of human
3
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
resources, to estimate the external supply and to match proper demand and supply. Working
environment is always an important variable of employee satisfaction. Congenial working environment
provides additional satisfaction toward work conversely, irritative working environment creates
problem to do the work simply. However, the study shows employees are not satisfied with working
environment. It is recommended that pharmaceuticals companies will ensure proper working
environment for their employees. The most of the pharmaceutical employees have a high dissatisfaction
on compensation policy. It is suggested that the pharmaceutical companies should restructure their
compensation policy to grab and retain valuable human capitals. Performance appraisal evaluates
employees’ job performance both in qualitative and quantitative aspects that cause positive intension
toward work and enhance employees’ productivity. The study shows that employees are poorly satisfied
with the performance appraisal system of the pharmaceuticals companies. The pharmaceutical
companies have to undertake apposite methods of performance appraisal for procedural evaluation
and supervision of employees. The proper industrial relations imply harmonious and peaceful relation
between labour and management. It leads to sound industrial environment, industrial democracy, social
peace, etc. and it causes satisfaction for both parties. The study demonstrates that most of the
employees are not satisfied with the industrial relations. The companies should take necessity actions as
soon as possible for pleasant sounding industrial relations. Therefore, the study suggests that the
pharmaceutical companies should develop proper human resource policy and given emphasis on
proper human resource practices to enhance the satisfaction of their employees and building them
effective human resources.
Masoodul Hassan (2013) Employee satisfaction and loyalty is one of the most important
challenges that banking sector is facing in current competitive market. A lot of studies have been
conducted to determine predictors of employee satisfaction but these studies focused only on
developed countries. Therefore, the main purpose of study is to find the relationship between three HR
practices i.e. compensation, empowerment and appraisal system and employee satisfaction & loyalty in
government owned public sector banks of Pakistan. For this purpose, data has been collected from the
employees of govt. owned public banks. Statistical software SPSS 17 has been used for validity,
reliability, and correlation and regression analysis. Employee compensation is found to be most
important factor for creating satisfaction among employee while employee empowerment is found to
be significant factor for developing employee loyalty. Theoretical and managerial implications along
with limitations for future research have also been discussed.
Vikram Jeet et al (2014) Overall HR practices have positive correlation with job satisfaction.
Evaluated the relationship between HR practices (impact of supervisor role, participation in decision
making & compensation policy) and employee’s job satisfaction among the employees of manufacturing
and service sector of Pakistan. The results of study revealed that supervisor role has strong positive
effect on job satisfaction. The participation in decision making the factor which is the optimistic about
company success has lesser positive effect on job satisfaction.
4
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
RESULT AND DISCUSSION
Table No.1
Demographical background of the respondents
S.No
Demographical
No of respondents
Percentages
N=100
Gender
I
Male
45
45.0
Female
55
55.0
Up to 35 yrs
21
21.0
36 yrs – 40 yrs
30
30.0
41 yrs – 45yrs
15
15.0
46yrs – 50 yrs
12
12.0
50 yrs and above
22
22.0
Age
II
Education Qualification
III
Under graduation
21
21.0
Post-graduation
16
16.0
Engineering
12
12.0
Professional
22
22.0
Others
29
29.0
Operator
32
32.0
Team leader
24
24.0
Admin/Supervisor
14
14.0
Manager
30
30.0
Up to 5 yrs
24
24.0
6 yrs to 8 yrs
29
29.0
9 yrs to 11 yrs
26
26.0
12 yrs and above
21
21.0
Married
48
48.0
Unmarried
52
52.0
Designation
IV
Experience
V
Marital Status
VI
Sources: Primary data
The above table describing the demographical background of the respondents, it shows that the
highest 55% of the respondents belongs to female category and 45% of the respondents were male it is
obvious because BPO sectors attract more female than male due to various reasons. With respect to the
5
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
age of the respondents represents that the highest 51% of the respondents were in the age group
between 35 yrs to 40 yrs. It would clearly depict that this industry attract large number of youngster.
With regards to education qualification the highest 21 % of the respondents has under graduation and
this industry has attracted all sorts of graduates invariably. The highest 32 % of the respondents are
working as an operator. 29% of the respondents have an experience between of 6 yrs to 8 yrs.
Table No 2
Gender wise respondents’ opinion towards various dimensions of HR practices
S.No Gender N
Recruitment
Career
Working
&Selection
Growth
Condition
M
M
SD
SD
M
SD
1
Male
45
1.8222 .38665 1.6667 .47673 1.7333 .44721
2
Female 55
1.7273 .44947 1.1273 .33635 1.5091 .50452
3
Total
100 1.7700 .42295 1.3700 .48524 1.6100 .49021
Sources: Primary data
The above table represents that, gender wise distribution of the respondents towards various
dimension of the HR practices its shows that male respondents has high level of satisfaction towards
recruitment and selection aspects based on mean score that is 1.822 with standard deviation of (±.38)
with respect to career growth male has high level of satisfaction with mean score of 1.666 and standard
deviation of (±.47) and female respondents has lowest satisfaction with this aspects. As far as working
condition concerns male respondents has highest mean value with 1.733 and standard deviation of
(±.44). Female respondents have lowest satisfaction towards all the dimensions.
Table No 3
Gender wise respondents’ opinion towards various dimensions of HR practices
N
S.No Age
Recruitment
Career
Working
&Selection
Growth
Condition
M
M
SD
SD
M
SD
1
Up to 35 yrs
21 1.2500 .50000 1.7500 .50000 1.7500 .50000
2
36 yrs – 40 yrs
30 1.3750 .51755 1.5000 .53452 2.0000 .00000
3
41 yrs – 45yrs
15 1.6818 .47673 1.3182 .47673 1.3636 .49237
4
46yrs – 50 yrs
12 2.0000 .00000 1.0278 .16667 1.0278 .16667
5
50 yrs and above 22 1.7333 .44978 1.7333 .44978 2.0000 .00000
The above table representing age wise respondents satisfaction towards various dimension of
HR practices it shows that, the respondents who were in the age range up to 35 years has level of
satisfaction towards career growth and working condition with the mean score of 1.75 respectively and
standard deviation with ( ±.50) and the respondents who were in the age range between 46 years to 50
6
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
years has high level of satisfaction towards the recruitment and selection process with the standard
deviation of 0 %.
CONCLUSION
There was a shift from the tradition bound personnel management to people oriented service.
The conventional personnel management is more bureaucratic whereas the human resource
management attaches more importance to humanism and humanization. New techniques and styles of
managing have been developed. Personal administration, Industrial relations and labour welfare have
become the integral parts of the broad human resource practices. The results of this study indicates that
male respondents highly satisfied towards all the facets of the HR practices studied that is recruitment
and selection, career growth and working condition however female respondents constitutes more
population that the female hence there should be strategically attention need to provide in this
dimension.
REFERENCES
1)Satheeskumar, L. (2009) A study of human resource management practices in private sugar mills in
Tamil Nadu. PhD thesis.
2)Hafiz Kashif Iqbal,Prof. Dr. Muhammad Ehsan Malik and Muhammad Mudasar Ghafoor (2013), Impact
of HR Practices on Job Satisfaction: An Empirical Evidence from corporate sector of Punjab- Pakistan,
Interdisciplinary Journal Of Contemporary Research In Business, June 2013 Vol 5, No 2
3)Hussain, T., and Rehman, S. S., (2013): “Do Human Resource Management Practices Inspire
Employees’ Retention?”, Research Journal of Applied Sciences, Engineering and Technology 6(19), pp
3625-3633.
4)Lamba, S., and Choudhary, N., (2013): “Impact of HRM Practices on Organizational Commitment of
Employees”, International Journal of Advancements in Research & Technology, Volume 2, Issue4, pp
407-423.
5)Olusegun, S.O., (2013): "Influence of Job Satisfaction on Turnover Intentions of Library Personnel in
Selected Universities in South West Nigeria", Library Philosophy and Practice (e-journal). Paper 914.
6)N. Shaik Mohamed and G.Pasupathi (2013) “Human resource management practise in hotel industry
in Tiruchirappalli city” Contemporary issues and challenges of Indian business global scenario.PP 27-31
7)P.M.S.Abdul Gaffoor and K.S.M.D .Akmal (2013) “Innovative HR practices in Larsen & Toubro limited”
Contemporary issues and challenges of Indian business global scenario.PP38-47
8)Mostafizur Rahman, Rafia Akhter, Solaiman Chowdhury, Saiful Islamc,Md. Reiazul (2013), HRM
Practices and its Impact on Employee Satisfaction: A Case of Pharmaceutical Companies in Bangladesh,
Vol.2 No.3, 2013 ISSN: 2147-4478.
9)Masoodul Hassan, Saad Hassan, Muhammad Farooq Ahmed Khan and Asghar Iqbal (2013), Impact of
HR Practices on Employe Satisfaction and Employee Loyalty: An Empirical Study of Government Owned
Public Sector Banks of Pakistan, Middle-East Journal of Scientific Research 16(1):01.08,
2013,DOI:5829/idosi.mejsr.2013.16.01.11638
___________________________________________________________________________
1.A study of human resource management practices in private sugar mills in Tamil Nadu by
Satheeskumar, L, Bharathidasan University, 2009
7
A STUDY ON HUMAN RESOURCE PRACTICES AND ITS IMPACT ON EMPLOYEES SATISFACTION WITH...
2.Hafiz Kashif Iqbal,Prof. Dr. Muhammad Ehsan Malik and Muhammad Mudasar Ghafoor (2013), Impact
of HR Practices on Job Satisfaction: An Empirical Evidence from corporate sector of Punjab- Pakistan,
Interdisciplinary Journal Of Contemporary Research In Business, June 2013
vol 5, no 2
3.Hussain, T., and Rehman, S. S., (2013): “Do Human Resource Management Practices Inspire
Employees’ Retention?”, Research Journal of Applied Sciences, Engineering and Technology 6(19), pp
3625-3633.
4.Lamba, S., and Choudhary, N., (2013): “Impact of HRM Practices on Organizational Commitment of
Employees”, International Journal of Advancements in Research & Technology, Volume 2, Issue4, pp
407-423.
5.Olusegun, S.O., (2013): "Influence of Job Satisfaction on Turnover Intentions of Library Personnel in
Selected Universities in South West Nigeria", Library Philosophy and Practice (e-journal). Paper 914.
6.N. Shaik Mohamed and G.Pasupathi (2013) “Human resource management practise in hotel industry
in Tiruchirappalli city” Contemporary issues and challenges of Indian business global scenario.PP 27-31
7.P.M.S.Abdul Gaffoor and K.S.M.D .Akmal (2013) “Innovative HR practices in Larsen & Toubro limited”
Contemporary issues and challenges of Indian business global scenario.PP38-47
8.Mostafizur Rahman, Rafia Akhter, Solaiman Chowdhury, Saiful Islamc,Md. Reiazul (2013), HRM
Practices and its Impact on Employee Satisfaction: A Case of Pharmaceutical Companies in Bangladesh,
Vol.2 No.3, 2013 ISSN: 2147-4478.
9.Masoodul Hassan, Saad Hassan, Muhammad Farooq Ahmed Khan and Asghar Iqbal (2013), Impact of
HR Practices on Employe Satisfaction and Employee Loyalty: An Empirical Study of Government Owned
Public Sector Banks of Pakistan, Middle-East Journal of Scientific Research 16 (1): 01-08, 2013, DOI:
.5829/idosi.mejsr.2013.16.01.11638
8
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