impact of Human Resource Management Practices on Employee Performance the case of L&T

Abstract

Due to globalisation, the business environment has witnessed increased competition forcing firms to seek new strategies to gain competitive advantage through improved performance. As such, Human Resource Management (HRM) has become a common practice for organisations seeking to gain sustainable competitive advantages. Accordingly, some of the HRM practices like selection and recruitment, compensation and rewards, as well as training and development has been effectively utilised by firms to increase employee performance. Despite numerous studies being conducted on this research area, few studies have been carried out on employee performance of organisations located in Finland. Most of the studies have centred on organisations from the United States and western part of Europe including United Kingdom, Netherlands, Belgium, and France among others with limited focus being given to the Scandinavian countries like Finland. This research study sought to fill this research gap by exploring the influence of HRM practices on employee performance using L&T in Finland. The study interviewed four managers working at L&T. Findings showed that L&T implements competitive, equitable and fair salaries, bonuses and allowances as compensation as well as credit card and yearly bonuses as rewards to increase employee performance .Additionally, the study established that entry-level training, cross-cultural training, and special training application are used to train and develop employees hence improving employee performance. Further, the research revealed that merit-based system, interview, on-field talent search, language proficiency, and job-specific skills are adopted by the L&T while selecting and recruiting employees to improve their performance. In the end, suitable suggestions are offered to the HRM at L&T.