Human resource management practices of Commerce Asia Inc.: A case study of the effects of human resource practices on company performance

• Main Authors: Arollado, Joffre, Dimaculangan, Gelene
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Personnel management; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5209
• Institution: De La Salle University

This study is about the evaluation of the human resource practices of Commerce Asia Inc. and its effect to company performance. The objectives of the study are to describe the different functions of the HR department specifically in the areas or human resource planning, recruitment, training and development, compensation and benefits, performance appraisal and employee security. Another objective would be to be able to evaluate the company's HR practices against standard HR practices. Lastly, to be able to relate the company's HR practices to organizational performance in the field of productivity, profit, growth, turnover rate and employee satisfaction.To be able to achieve the objectives mentioned, the researchers conducted several methods to obtain the necessary information. A focus group discussion was conducted with the department heads to be able to know their views and opinions with the performance of their different HR functions. An employee satisfaction survey was deployed to the employees of the company to know if they are satisfied or not with the different functions of the HR department. The researchers also assessed the company records such as financial statements to know the financial position of the company. Lastly, secondary records are used to be able to evaluate the company's HR practices to the standard HR practices.Based on the researches made, the researchers found out that there is indeed a relationship between HR practices and employee satisfaction. Based on the analysis of the relationship of the two variables, it shows that the areas that got the lowest score in the survey are associated with the HR practices that have problems in it. An example would be a low score in the area about having adequate training in the work place from the employee satisfaction survey. Relating this to what is going on in the company wherein there is no formal training program, it shows that there is indeed a relationship between HR practices and employee satisfaction.As for the effect of HR practices to company performance, the records show that HR practices only has a direct effect on the productivity of the company. As for profitability and growth, HR functions do not have a direct on the figures because other factors should be considered such as managerial decisions and economic environment.To summarize the findings in the study, the different functions of the HR department have an effect to company performance in terms of productivity which is mediated by the variable employee satisfaction. This means that the functions of the HR department can influence the satisfaction of the employees in their work which would affect company productivity. This means that the company should ensure that their HR practices are being done properly to ensure employee satisfaction and would yield to high.