HR Practice at Bhoomika Garments

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AMITY UNIVERSITY

GRATER NOIDA, UTTAR PRADESH

NTCC REPORT

TO ANALYZE THE HUMAN RESOURCE MANAGEMENT OF BHOOMIKA


GARMENTS Pvt. Ltd.

SUBMITTED TO: SUBMITTED BY:


Ms. RIYA GHAI DOLLY SINGH
B.COM (H)
5 SEMESTER
th

A42304618011
DECLERATION

Topic of the Report: To Analyze the Human Resource Management of Bhoomika Garments Pvt. Ltd.

 All the work in this report under th particular is done by me and not copied from anywhere else.

 The guidelines and the methods of the report that are to be followed are strictly followed without any
ignorance.

PREPARED BY: DOLLY SINGH

B.COM (HONS.) 5th SEMESTER

2018-2021
CERTIFICATE
This is to certify that Dolly Singh pursuing B.COM (HONS) bearing Enrollment No. A42304618011 from
Amity College of Commerce and Finance (ACCF), Amity University Greater Noida has done the work
under the teaching of Ms. Riya Ghai from 15/04/2020 to 16/04/2020 and has successfully fulfilled the
criteria of submitting the Report.
ACKNOWLEDGEMENT
I would like to present my gratitude towards all those people who have come up in order to help me out with
this task of completing this report on time.

Firstly I would like to thank my college which gave this subject to us so that we can collect different
information on a particular topic. I would like to thank all those people who presented their views on my
topic. I would also like to thank my teacher in charge of this subject Ms. Riya Ghai for her constant follow
ups and friendly support, perfect teachings or guidelines and motivational or encouraging words.

Thanking You.
INDEX

 ABSTRACT

 INTRODUCTION

 OBJECTIVE OF REPORT

 LITERATURE REVIEW
 Human Resource Management concepts
 Perspective and Theories of Human Resource Management
 Human Resource Management of Bhoomika garments Pvt. Ltd.
 Comparison of HR practices of an Export Company and HR Practices of an IT
company
 Linkage Between Human Resource Management and Organization Performance

 METHODOLOGY OF RESEARCH

 CONCLUSION

 BIBLIOGRAPHY
Abstract
This research is all about what is Human Resource Management and to Analyze Human Resource
management of Bhoomika garments Pvt. Ltd. Bhoomika garment is one of the most renowned and reputed
garment manufacture and exporters. The company is located at sector 64 Noida, (Gautam Buddha Nagar,
Uttar Pradesh) India. The company is been into work since 1998. It produces the products related to women
clothing. They are fully experienced and occupied in manufacturing fabricated or woven and knitted female
garments for every age group of women. Bhoomika Garments Pvt. Ltd.

Human Resource practices such as “training and development” and “participation of employees” in making
any decision are the most important element that affects the organizational performance. It came to
knowledge that out of the different factors such as Environment and the style of leadership in the
organization, Job analysis, Organizational behavior and culture, Motivation and opportunity and HRM
practices that affect organizational performance; Human Resource Management acts as the main factor that
has a huge impact on organizational performance. Different methodology used is descriptive and
correlational; research design is explanatory and source of data is secondary source.

Introduction
Human Resource Management:

HRM or Human Resource Management was first started back in end of 18th century. It was made because of
the reaction to the following:-

 Industry conditions were harsh.


 Pressure caused by the extension of franchise.
 Influence made by the trade union and Labour movement.

HRM is a step by step approach to effective management of a company, people working in a company or
organization in a way that it helps to gain advantage in competition in a business. It is made to increase the
performance of employee in service.

A coherent, integrated and strategic approach for the purpose of employment, well-being and development
of the humans or people working in an organization is also stated as Human Resource Management. It is the
action of the functioning in any organization designed in order to enhance the performance of employees
and meet their strategic organizational goals and objectives. It has a strong hypothetic basis which is taken
from the strategies of management, human capital, organizational behavior and employer-employee relation.
Many companies have opted people practice as per HRM. There are several important practices that an
organization should follow some of them are:-

1. HR Planning: the procedure to which an industry comes to know the number of employees working,
whether there is a shortage or excess of employees.
2. Job Analysis: it is the process of listening down and noticing the details of a job and its duties and
skills required.
3. Recruitment: according to the information collected from job analysis, an advertisement is made for
the vacancies of the job. This process is called recruitment.
4. Selection: Large numbers of applications are collected after the advertisement is published among
those applications some candidates are selected by organizing an interview.
5. Training and Development: there is a training program held by most of the organizations for the new
employees for the betterment of their performance. Sometimes training program is even done for the
existing employees for the benefit of improving their skills and utilizing it in different organizational
practices.
6. Performance Management: it is the performance evaluation of the employee after the period of 1
year. On the basis of this evaluation further promotions and appraisals are given.
7. Compensation: compensation is the process of offering facilities and other financial benefits to the
employees for encouraging them and makes them work efficiently.
8. Employee Relation: it is the duty of an HR Manager to create a positive and friendly work
environment.

When all practices mentioned above are managed well the organizational performs at its best. The
companies tend to be more progressive, consumers and employees seems to be highly satisfied and happy,
have high capacity of producing new products, and make up a more compatible renown in the community
when an organization has a good Human Resource Management(HRM) team. A company is not able to
perform in the competitive environment and faces the difficulties if there are no proper human resource
practices. Current human resource and potential of a company are essential concerns in the development of
the organization and for the implementation of its strategy used in business plan. Individuals, staff or
workforce inside or outside the boundary of an organization who are accountable for accomplishing the
tasks allocated to all of them this also is included in Human Resource Management.
The main function for studying human resource management is to help the organization to achieve its target
and goals. Human Resource Management (HRM) helps the organization in making confirmable competitive
advantage. The most important asset of an organization are its employees they are the one who play a vital
role in making an organization successful and expand its growth. Companies at which good HRM practices
are followed are helpful to the customers to be more satisfied and also it helps the production team to make a
new and innovative products which takes the company on another higher level.

Introduction to Bhoomika Garments Pvt. Ltd.

Bhoomika garment is one of the most renowned and reputed garment manufacture and exporters. The
company is located at sector 64 Noida, (Gautam Buddha Nagar, Uttar Pradesh) India. The company is been
into work since 1998. It produces the products related to women clothing. They are fully experienced and
occupied in manufacturing fabricated or woven and knitted female garments for every age group of women.
Bhoomika Garments Pvt. Ltd. Also has another six branches of its factory which are within the area of 2 km
in Noida (Bhoomika Garments).

This company is associated with many brands all around the globe. Bhoomika Garments is appreciated for
its delivery which is always done on time and also for the quality of work done within the given time period.
Bhoomika Garments had a turnover of approximately 37 million in US Dollar during the year 2016 and had
an increase of about 15% in year 2017. Compliance and audit of the company is done on regular intervals.
These audits and compliances are done to meet the standards of the buyers and for the betterment of
employees and environment.

The machinery used by the company is of high technology and gives an output of approximately 8 million
piece of cloth annually. The workforce of the company is 3300 workers who are working over 2000
machine. A time period has been set as per the type or style of those clothes to be made. This time period ia
as follows:-

 For Basic Style delivery is done within 45-60 days of time.


 For decorated and enhanced clothing delivery is done in 70-90 days.
 For knitted products the time period taken is 60-70 days.
 For Decorated and enhanced knits style the time period taken to complete and deliver is 90-100 days.

The most of the customers of Bhoomika garments Pvt. ltd are from Europe. So, after adapting the best
Practices and experience the company has understood the European market and its buyer’s needs wants and
requirement in reference with the styles, designs, and quality. After so many years of practices and
experience Bhoomika Garments has become a favorite garment manufacturing industry for the European
Market.
It’s the policy of Bhoomika Garments to keep the satisfaction of customer on top and make it a priority.
They are always on top to set huge and new standards of fashion which attract even more customers toward
them and this had made it one of the renowned companies in the field of export of Garments.
Objective of the Report
1. To know the actual meaning of Human Resource Management (HRM).
2. To know common HR practices that is mostly used by an organization.
3. To analyze the HR practices that is opted by Bhoomika Garments Pvt. Ltd.
4. To compare the HR practices of an Export Company with HR Practices of an IT company.
5. To find the impact of Human Resource Management on an Organization.

Literature Review
Literature Review is the work done by the other researchers on the topic of HRM. Literature review in
research along with providing knowledge about what study has been done in this particular field it also gives
the information about the strengths and weaknesses that could bring out a meaningful and accurate study.
Under this topic main focus is done mainly on main concepts of HRM, different practices done and the
previous researches.

1. Human Resource Management (HRM) concepts:-

The first researcher to define HRM in 1966; said human resource function can easily be called as the
purpose that is correlated to understanding, increase, maintenance, development of efficiency in the resource
of people and effective employment (Bakke, 1996).

According to the matching model of HRM the organization structure and HR system is used to be made in
such type that it should be coinciding with the strategy made by the organization. It explained that there are
four main processes or functions with Human Resource circle i.e. Selection, appraisal, rewards and
development. The way in which the workers response to HRM practices is the point by which performance
is affected i.e. there is a direct impact which is in direction of the HRM practices that are being done by the
employees.

A relationship is observed among the two aspects i.e. Human Resource Development and Organizational
Performance by Stiles and Kulvisaechana in there research. Recruiting and retaining the perfect employees
is observed to be the portion of forecast of Human Resource by Shih, Chiang & Hsu. A study was done by
Hardre to know the effect of the resourcing and the growth on the attitude of employees which comprises
satisfaction, commitment and motivation. To enhance performance and to unleash the human expertise the
most important key is to follow the steps of organizing training and development programs which leads to
organizational development. Productivity and organizational performance is positively associated with
absolute training methods. Performance Management programs have impact on positive relation within
industrial performance and working people betterment and development.

2. Perspective and Theories of Human Resource Management(HRM):-

Many theories are underpinning HRM practices. The most famous theoretical framework that is applied in
the studies that connects HRM with organization ability to do work is (RBV) Resource Based View
(Barney, 1991) and (AMO) Ability Motivation and Opportunity theory.

Theory that mixes concept from strategic management and performance of organization is based on the
Research. It says that HRM adds value with the help of strategic development of the organization’s valuable,
rare, imperfect to implement and hard to substitute human resource. The Research Based View (Storey,
1995) initiates that advantage in competition does not comes under natural resources, economies of scale or
technology anymore as these factors can easily be emulated. Hence the factors on which the competitive
advantage depends are rare and costly hard to emulate and valuable resources that inhabit with the human
resource of an organization. So, it’s the responsibility or duty of the Human Resource Management Team to
make the organization raise up and work in order to match those criteria.
The other theory is (AMO) Ability, Motivation and Opportunity theory (Appelbaum, 2000) also derives a
formula within itself that is Performance = Motivation + Ability + Opportunity. This gives the base for
making a good HR system which leads to the employee’s interest, quality of the job, required skills and
encouragement. (Appelbaum, 2000), (J.Purcell, 2003), (quansah, 2013) said HRM practices has an impact
on performance of an individual which takes toward to an allover performance of an organization if the
organization is good at encouraging the hard work and efforts of their employees, to also by enhancing their
skills and the way of working by introducing new and different procedures, and giving them opportunity to
perform, different tasks other than their own profession so that they get more experience and exposure.

3. Human Resource Practices

Various HRM practices has been identified during past years by many researchers. As per the
researchers (McEvoy, 2000) one of the most indolent question while doing a research on HRM is that for
representing a universal approach of managing people is there any existence of any single set of
practices or not (Nongmaithem Robindro Singh, 2016). Theories based on the best practices discuss that
universally there exist some of HRM practices whether separate or in a combination that results to
improvement or increase in organizational performance.

Various lists on “best practices” has been made, some of the list are mentioned:

1. SELECTION: The use of selection should be done very carefully so that it is made sure that the best
candidate is selected who contribute to earn profit for organization.

2. TRAINING: Training is a continuous process and this should be known and followed by the
organization while providing a training program.

3. JOB DESIGN: Job design should be there in order to ascertain the flexibility, commitment and
motivation along with this there should be some steps to make sure employees have opportunity,
responsibility and liberty to fully utilize their skills and knowledge
.
4. COMMUNICATION: There should be a proper communication process so that everyone has the
required information at the right time. It should always be a two way process as one way process
results in loss of organization.

5. AWARENESS AMONG EMPLOYEES: Ownership programs to increase the number of employees


are shared by the employees “to make them aware the impact of their actions on the financial status
of the organization”.

A study done by Redman and Mathews (1998) also found out HRM practices that are responsible for
increasing organizational performance:

1. Recruitment and selection should be done carefully, for example: there should be zero defect in
recruitment, the best candidates should be selected and the right decision should be taken at the first
time.
2. All the employees should be given training and a regular training and learning programs should be
done.
3. A good remuneration system should be made, foe example: giving bonus or compensation to the
employees who are multitasking and multi skilled.
4. Flexible job design should be made along with a good working team and environment.
5. Employee should have its presence and involvement in the organization and the different functions
done by organizations for employees.
6. Employees those are giving good profit to the organization should be give appraisals for their
performance and along with that they should also be given reward (cash or non-cash) to encourage
employees to work more efficiently.

Various lists of HRM practices have been made over past years, since there was no agreement made that
which among these theories are best as an aspect of HRM. The better way to find out the right practices are
to list down the common practices from the various proposed practices. Based on the importance and
significance these nine practices are selected for HRM.

Some of the important practices of Human Resource are:-

1. “HR Planning”: it is the process of keeping a record on manpower in an organization i.e. number
of employees in an organization currently and what are the more requirement whether people need
to be given break or more employees are need to be employed. HR planning also looks after that
right employee should be placed at the right place and at the right time. This helps the organization
to achieve its set target on time.

2. Job Analysis: to collect or gather and to analyze about the job i.e. the requirement of number of
employees for the job and along with that the conditions in which the job will be performed this
press of taking knowledge is known as job analysis. There are two main topics that are a part of job
analysis that are:-
a.) Job description: it gives the brief information about the job i.e. the position of the job, the place
of job, salary that is to be given, etc. These are the topics that are to be covered under Job
description. All these give the information about the job.
b.) Job Specification: this gives the information about the things needed in candidate for performing
that

3. Recruitment: it is the process after job analysis of attracting a pool of people and listing down the
suitable candidates and selecting the capable candidate for that job. Well-functioning system is not
only the element on which performance improvement depends but it is also affected by successful
strategies made by human resource management that depend on recruitment and maintaining a good
workforce. Sources of recruitment are classified into two parts:-
a.) Internal recruitment: in this recruitment process the company thinks to fill the new vacancies
from their existing employees.
b.) External recruitment: in this process of recruitment the company takes the employees from out
of company by giving advertisements or from agencies etc.

4. Selection: it is the process of taking interview of candidates shortlisted in previous step and
selection the right person that is applicable for that particular position. There are many steps of
selecting a particular candidate. Many interviews are taken, group discussion is done and out of
them the most eligible and deserving candidate is selected. It is commonly said that selection of
employees is done not only for replacing departing employees or to increase the number of
employees in an organization but its aim is to put right employee at right place so that it can make
more production and profit.

5. Training & development: “one of the most important parts of human resource management is
training and development”. “Training is an all-time process i.e. it is a continuous process that should
be adapted by ever company or organization”. Training is given mainly to the new employees that
are selected for the job to give them more knowledge for the work they are going to do. Sometimes
training is also given to already working employees for making them more skilled. This not only
helps the organization to develop but also helps the employees for their future work and there
improved skills make them unique from others.

6. “Performance Appraisal/Management: performance appraisal is a systematic evaluation of


potential and performance by the subordinate or the immediate boss in any organization”. The
process of setting a target and achieving it or reaching that target effectively and efficiently is called
performance management. Through good performance management an organization is having many
befits such as; it leads directly to financial gains (increase in sales, less time in achieving goals etc.),
motivated workforce (high confidence in workers, transparency in goals achievement, etc.)
improved management (helps in audit, simplifies communication, etc.)

7. Compensation: compensation is the reward in form of cash or non-cash befits that are given to the
employees for encouraging them to work more efficiently and for the work they have already done.
Some of the compensation that are given to the employees are: sales commission, overtime wages,
tip income, non-cash benefits such as house on rent etc. Compensation is given on the basis of
different policies, structure, guiding principles and strategies as per made by Human Resource
Management.

8. Employee relation: employee relation or the industrial relation or the relationship between
employer and employee. This is the most effective thing that is present in any organization. If the
industrial relations are not good then it directly effects the production and growth of the
organization. So, it’s very necessary to build a good and friendly working environment in
organization.

9. Employee voice (involvement and participation): for the help of organization a direct
participation of staff should be there. Direct participation or involvement of the employee helps an
organization to fulfill its goals and accomplish its objective by sharing their own ideas, experience
and by putting efforts for solving problems, in decision making and other organizational functions.
This involvement and participation of employees in organization is called employee voice.
Researches have shown companies who know about their employees are stronger than as compared
to those who don’t know about their employees. So it is an important practice to be opted.

4. Human Resource Management of Bhoomika Garments Pvt. Ltd.

As Bhoomika Garments is an Export company so the workforce of the company consists more of labours
than staff. This means the people working in a Export House are mostly having low income so the entire
HRM practices are to made according to the labour of the company.

The HR Manager of Bhoomika Garments is Mr. Rajeev Kumar under whom I did my training and learned
how they work and deal with his employees in different situations. The process by which they hire new
people for different posts and also how they reduce their excess employees.
They plan there man force and the target to be achieved according to the number of order of garments they
are getting or the size of order. The work is done when only when they get an order otherwise they have to
give break to their employees for some time.

As soon as they get an order they plan their strategy accordingly. They give an order for the required raw
material and then see the number of workers they are having and the required number of workers if they
need more workers they put a banner outside the company and the workers are appointed on the basis of
daily wage system for a particular time period. All the workers appointed on daily wage basis have to give
an ID proof of them and so that when there is some issue then they have all valid records of their employees.
An ID card is made and given to the employees which shows the card number of the employee which is
different of all the employees and the required information like Name, Address and ID Proof Number.

The working period is from 9am to 5.30 pm including a lunch break of one hour. The workers working
beyond 5.30 are given overtime according to the numbers or hours that they work for. 65 rupees are given
for every one hour extra work. Workers are allowed to take advance from the company when they have any
emergency and then that advance is cut from the salary of the worker after a given time period in
installments. Also the salary of the workers are sent to their bank account on time and if there is some
problem with someone’s salary then that problem is taken care of and the immediate action is taken. The
workers or staffs are also given Rewards when they do something good for the company in order to
appreciate their work and encourage them to do more of such work.

Training programs for the fresher’s or interns is also given. There are many trainees which are coming from
different states for them PG is arranged and all the required things are given. Also the trainees or inters are
given opportunity to do the work properly and show how good they are in their field.

All the compliance and audit are done on regular basis and all the documents and system are shown. A date
is given to the company between which the auditor has to come and within those dates the management
takes care that all the points are kept in front of the auditor and all the documents are up to mark. Almost all
the audit and compliance are completed properly and on time without any issue. Even the auditor is given
full respect and everyone is corporative with the auditor doing its work.

The HR manager has maintained good relations with the employees and also workers listen to him.
Whenever there is some fight between the workers or there is some difference between the workers or
supervisor then they only listen to their HR manager. When there is some personal problem with any worker
and they want some advance from the company and the person giving advance refuses to give they go to HR
and tell their problem and the HR helps them in every possible way. Therefore, it shows that the employer
employee relation is very strong is give a plus point to the company.

5. Comparison between Human Resource Management of an Export Company and IT Company

1. HR Department of an IT company is divided for different role i.e. there is a different team for doing
recruitment, different team for salary work and different team for resolving the problems whereas in
an export company there is only one department which looks after all the points whether its
recruiting process, salary making or problem solving.
2. In an IT company the main man force is of educated sector whereas in an export company main man
force is of labour class. So both of them have different recruitment process. IT company has a
different department for recruiting there employees so either they go for campus selection or they
give advertisements at different online websites like Linked In or Naukri.com etc. whereas
recruitment in an Export company is classified into two parts i.e. for labour class and the staff. They
give their requirement to some consultancy firms and they give them the required labour.

3. All the works or problems in an IT company is done or solved through mail. Personal interaction is
not done until or unless there is some important work whereas in an Export company the main work
is done by meeting personally. There are very less things that are done on mail.
6. Linkage between Human Resource Management and Organizational Performance

Many people who have done research have given a lot of time and have done many researches over the past
time for finding out or to establish the relation among human resource practice n organizational
performance. From the researches done and their results it has been made very clear the “Human Resource
Management” practice are main components that effects organizational performance of an organization
(Quansah, 2013). The research done by Huselid, 1995 in which he mentioned about the “relationship among
Human Resource practices and the market value and profitability and found out that the HR is related to the
gross rate of return on assets (profitability) and the ratio of a firms market value to its book value” (Tobin’s
Q).

This implies that if proper or appropriate HR practices, policies or strategies are made and brought in use
then it leaves a very important effect or impact on organizational performance. Adjustment of HRM policies
with other business strategies is the base for the effectiveness of HRM policies and it is important it realize
this. The research done by Hyde et al (2008) on impact of HRM practices on Organizational Performance
shows the positive relationship between the following.

The following ways of outcomes were recorded by “Dyer and Reeves (1995) for performance of HRM”:-

 Financial outcomes : sales market, profit


 Related HR outcomes: attitude and behaviour impact on “employees- satisfaction, commitment”
etc.
 Organizational outcomes : efficiency productivity, quality

As stated by Armstrong and various “human resource management researchers” is for authorize that
organizational performance is highly improved with the help of Human Resource Management practices.
HRM practices that also lead to labor productivity are paying greater attention to give liberty in the
workplace and to employees, working in teams, motivating workers, increased productivity, pay schemes
(M Cully, 2003)compensation, “cross functional teams, quality circles and integration of functions” (RD
Banker, 1996).In the survey done in studies to know “the relationship between HR practices and
organizational performance at plant level”, the researcher (MacDuffie, 1995) came to know that the HRM
practices that he compared were actually concerned with the “productivity and quality” on a basis of auto
assembly lines on the other hand (M Youndt, 1996) found out that the manpower capital that enhances HR
practices were concerned to organizational performance with the demo of manufacturing plants.

The recent survey or research done by (Soomro R. B, 2011) results stating that HRM practices are directly
related with organizational performance i.e. it shows a positive relation between both. Also the study done
by (Nayaab, 2011) stated that HRM practices such as training and development and participation of
employees in making any decision are the most important element that affects the organizational
performance.

Methodology of the study:-


There are some specific steps or procedures or techniques that are used for identifying, selecting, analyzing
and processing data and information on a particular topic. The research methodology gives the knowledge
about the collection of data. Design of the research, procedure of data collection, source from which data is
collected is the points that are to be discussed under this topic.

 RESEARCH DESIDN: the methodology and procedures employed to conduct a study is called
research design. It tells the type of study, methods to collect data and statistical analysis plan.
 The research design of this study is explanatory because it gives information about impact of HRM
practices on organizational performance.

 The other research design to be used is descriptive as it gives a full knowledge on a particular case and
research.

 Another methodology used is correlational as it tells the relationship between two variables one is HRM
practices and other is organizational performance.

 SOURCE OF DATA: there are mainly two ways of source of “data collection i.e. ‘primary source’
of data collection and ‘secondary source’ of data collection”.
“Primary data” is the original data that is taken and analyzed by the researchers of that field.
Primary data is collected from the response from the people with the help of either a questionnaire,
observation, semi structured interview.

Secondary data source is the data that has been collected from the researches which have taken
place earlier. The type of data collection by using the information different researchers is not case
specific instead is related to studied problem.
The source opted for this study is Secondary source as well as Primary source which means
collection of data and information is done from the researches done in past by many different
researchers and also there is addition of the data that is observed and researched by me.

Conclusion:-
In this research we came across an overview and a discussion about Human Resource Management in an
organization. It came to knowledge that out of the different factors such as Environment and the style of
leadership in the organization, Job analysis, Organizational behavior and culture, Motivation and
opportunity and HRM practices that affect organizational performance; Human Resource Management is the
“factor that has a high impact on organizational performance”. Through this study we came across different
Human Resource Management Practices that should be followed for encouraging the workers and increasing
the organizational performance. It tells about the history of HRM practices given by different researchers
and its evolution from past to modern HRM practices and policies. It gave us the positive and “direct
relationship between Human Resource Management Practices and organizational performance”.

Also in this report there is a summary about my experience while doing an internship at Bhoomika
Garments Pvt. Ltd. which is at Sector 64 Noida under the field of Management and supervision of Mr.
Rajeev Kumar the Hr. Manager of Bhoomika Garments. It was a good exposure and experience working in
corporate world.

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