A study ò factors afecting human resource management in tay a construction company

Thesis for the Degree of MasterA Study of Factors Affecting Human Resource Management in Tay A Construction Company June 2017 Department of Business Administration Graduate School of S

Thesis for the Degree of Master

A Study of Factors Affecting Human Resource Management in Tay

A Construction Company

June 2017

Department of Business Administration

Graduate School of Soongsil University

Do Nam Thanh

Thesis for the Degree of Master

A Study of Factors Affecting Human Resource ManagementinTay A Construction Company

June 2017

Department of Business Administration

Graduate School of Soongsil University

Do Nam Thanh

A Study of Factors Affecting Human Resource ManagementinTay A Construction

Company

A thesis supervisor : Professor Jeongil Choi

Thesis submitted in partial fulfillment of the requirements

for the Degree of Master

June 2017

Department of Business Administration

Graduate School of Soongsil University

Do Nam Thanh Thesis for the Degree of Master

Thesis Committee

June 2017

Graduate School of Soongsil University

To approve the submitted thesis for the

Degree of Master by Do Nam Thanh

many personal instructions which helped me a lot in doing this thesis and provided

me a good basis for the presence of the thesis.‖

―During this work, I collaborated with employees at Tay A Construction Company, who gave me kind support in data collection and contact making I

would like to send my special thanks to employees who helped me a lot in collecting data and information from company’s information system.‖

―I owe my loving thanks to my beloved family, without their encouragement, support and understanding, it would be impossible for me to finish this work

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TABLE OF CONTENTS

ABSTRACT viii

CHAP TER 1 INTRODUCTION 1

1.1 Research background 1

1.2 Problem statement 2

1.3 Research objectives 4

1.4 Significance of research 4

1.5 Scope and limitation of research 4

1.6 Structure of research 5

CHAP TER 2 LITRETURE REVIEW 6

2.1 Overview of Tay A Construction Company (TAC) 6

2.1.1 General information 6

2.1.2 Establishment and development 7

2.1.3 Organizational structure of TAC 8

2.1.4 Economic and technical characteristics 11

2.1.5 Situation and results of production and business activities of TAC 18

2.2 Human resource and human resource management 22

2.2.1 Human resource 22

2.2.2 Human resource management 25

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2.3 Factors affecting human resource management 27

2.3.1 Economic Conditions/Changes 27

2.3.2 Technological Change/Advancements 28

2.3.3 Workforce Demographics 29

2.3.4 Union Action 30

2.3.5 Organisation Size 30

2.3.6 Organisational Structure 31

2.3.7 Business Strategy 31

2.3.8 Organisation Culture 32

2.3.9 Top Management and Line Mangers 32

2.4 Theoretical framework 33

CHAP TER 3 RESEARCH METHODOLOG Y 35

3.1 Research process 36

3.2 Qualitative research 36

3.3 Quantitative research 38

3.3.1 Measurement scale 38

3.3.2 Sampling 42

3.3.3 Sample size 42

3.3.4 Data collection 43

3.3.5 Data analysis 43

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CHAP TER 4 RESEARCH RESULTS 44

4.1 Factors and attributes to analyze human resource management at Tay A Construction Company 44

4.2 Respondent’s profile 47

4.2.1 Age 47

4.2.2 Gender 48

4.2.3 Qualification 49

4.2.4 Seniority 50

4.3 Data testing 51

4.3.1 Exploratory factor analysis (EFA) for factors 51

4.3.2 Reliability testing for attributes 55

4.4 Analyzing actual situation of human resource management at TAC 60

4.4.1 Economic conditions/changes 60

4.4.2 Technological change/advancements 62

4.4.3 Workforce demographics 66

4.4.4 Union action 69

4.4.5 Organization size 72

4.4.6 Organizational structure 74

4.4.7 Business strategy 75

4.4.8 Organization culture 79

4.4.9 Top management and line managers 81

4.4.10 General assessment on human resource management 82

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4.5 Regression analysis 84

CHAP TER 5 CONCLUSION AND DISCUSSION 90

5.1 Conclusion 90

5.2 Discussions and implications of the thesis 90

5.3 Limitations and recommendations of the thesis 92

REFERENCES 93

APPENDICES 100

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LIST OF TABLES

[Table 2-1] Capital structure of TAC over 3 years of 2014-2016 11

[Table 2-2] Business results of TAC through 3 years of 2014-2016 18

[Table 3-1] Measurement Scale 39

[Table 4-1] Factors and attributes to analyze human resource management at Tay A Construction Company 44

[Table 4-2] Respondent’s profile by age 47

[Table 4-3] Respondent’s profile by gender 48

[Table 4-4] Respondent’s profile by qualification 49

[Table 4-5] Respondent’s profile by seniority 50

[Table 4-6] KMO and Bartlett's Test for independent variables 51

[Table 4-7] Communalities of EFA analysis 52

[Table 4-8] KMO and Bartlett's Test for dependent variable 54

[Table 4-9] Factor loading of dependent variable 54

[Table 4-10] Cronbach’s alpha summary (1st time) 55

[Table 4-11] Cronbach’s alpha summary (2nd time) 57

[Table 4-12] Reliability test of factor ―Human resource management‖ 59

[Table 4-13] Economic conditions/changes’ impact on HRM at TAC 60

[Table 4-14] Technological change/advancements’ impact on HRM at TAC 62

[Table 4-15] Workforce demographics’ impact on HRM at TAC 66

[Table 4-16] Union action’s impact on HRM at TAC 69

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[Table 4-17] Organization size’s impact on HRM at TAC 72

[Table 4-18] Organizational structure’s impact on HRM at TAC 74

[Table 4-19] Business strategy’s impact on HRM at TAC 76

[Table 4-20] Organization culture’s impact on HRM at TAC 79

[Table 4-21] Top management and line managers’ impact on HRM at TAC 82

[Table 4-22] General assessment on human resource management at TAC 83

[Table 4-23] Model summary 85

[Table 4-24] ANOVA results 86

[Table 4-25] Regression coefficient 87

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LIST OF FIGURES

[Figure 2-1] TAC Organizational Structure 10 [Figure 2-2] Production and profit after-tax of TAC from 2014-2016 20

[Figure 2-3] Ratio of output and profit after tax of the current year compared

to the previous year 21 [Figure 2-4] Theoretical framework 34 [Figure 3-1] Research process 36

―Human resources management play an important role in development of an organization HR managers devise hiring strategies for bringing in the right kind of people in their organization They prepare their Job Descriptions which is best suited for the role in the company After hiring they also plan for the employee’s

induction with a well laid out training and development plans for them HR is responsible for keeping people feel motivated for their work First comes the task

of defining an individual’s role Thereby an effective feedback mechanism from

time to time helps the employees to improve their skills This helps in alignment of

the organizational objectives with their own personal goals An effective PMS helps in recognition and rewarding people's performance Performance of an individual is dependent on the work atmosphere or culture that prevails in an organization Creating a good conducive working environment is expected from

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the HR department A safe and clean work culture helps in bringing the best of an employee and creates a higher job satisfaction.‖

The purposes of this thesis are to find out the factors affecting HRM activities,

to assess the current situation of HRM at Tay A Construction Company, and to give out solutions to improve HRM activities at Tay A Construction Company The survey was undertaken to study the factors affecting human resource management

at TAC The investigation examined the factors with data being collected from

employees working at TAC The questionnaires were distr ibuted to all employees working at TAC at 19 Nguyen Chi Thanh – Hanoi in the end of December 2016 as

a sample for this research with a total of 104 sets of questionnaires sent, and 100 sets received back were gathered and used in analysis The data were analyzed by

SPSS software The theoretical framework including factors is adopted to examine their impact on HRM activities at TAC The findings of this research are useful to help TAC to improve its current HRM practice by concentrating on the factors affecting HRM.‖

intodesirable output in terms of product and service According to Khatri (1999), human recourse are one of the most important factors that provide flexibility and adaptability to the organizations.‖

―Several researchers have found that employee management is more problematic than managing technology or capital (Lado and Wilson, 1994; Barney, 1991) The competitor can imitate capitals like technology and capital but the human resource skills are unique Rundle (1997) suggest that its Human resource

of the organization, not the firm, is the adaptive device in defining how the

organization will adapt to the competitive environment.‖

―The effective management of human resource requires sound Human Resource Management systems In order to build up an effective HRM system, the group should develop effective Human Resource Management activities Human

resource management refers to practices that influence employees’ abilities, motivation and performance (Noe et al., 2008) Human resource management enables organizations to achieve expected organizational performance and competitiveness by achieving desired employee performance (Armstrong, 2007)

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Successful human resource management differentiates successful organizations from unsuccessful organizations (Marchington and Wilkinson, 2005) It is obvious that applied practices in human resource management affect the ability of any

organization to achieve expected performance and competitiveness through achieving desired employee performance.‖

―Any organization seeking to achieve excellent performance results and sustained competitiveness should compare its performance and competitiveness

best organizations to apply best HR practices in human resource management Any practices that are practiced to enhance skill, competencies, satisfaction, commitment and performance of human resource and build culture within the organisation for achieving organisation objectives and goals can be stated as HR

practice HR practices can generate satisfaction, motivation, increased knowledge and commitment of a firm's employees, resulting in a source of competitive advantage for the firm Top managements have started believing that human improvements are the best ways to improve organisational efficiency in the ever

increasing competitive and cost effective environment of present business operations of organisations Companies would build profits by putting people first (Pfeffer, 1998).‖

1.2 Problem statement

―TayAConstruction Company (TAC) is a company established on 6/7/1973 It

is the leading corporation in the field of bridge and road construction of Vietnam

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Its head office is at No 19 Nguyen Chi Thanh, Hanoi After rather long time of operation and development, Tay A has a strong workforce including many employees with highly qualified expertise and much experience According to the

leaders of TAC, the key success of TAC is human factor If TAC holds firmly human resource, it will have a half of success That means, ―there is human strength, cobble-stone can be rice‖ This leads to the question of well implementing human resource management at TAC.‖

―In fact, issues of human resource management at TAC are seriously concerned

by management In fact, the company has to face up with low working morale from its employees, reflected in employee turnover and unenthusiasm in working As estimated, 3 team leaders and 11 staffs in the company stopped working in 2016, as

stated in the company’s report, because they did not feel satisfied with the company’s HRM policies The other remaining ones are not really devoted to their work They come to workplace late and go to home very early; they do not want to participate in activities organized by the company; or they are ready to quit if they

can seek for another job which is nearer or with higher salary, etc Low working morale badly affectsHRM of the company According to Mr PhungHong Quan, a staff working at TAC, people there do not agree with some of the company’s HRD policies and they are not enthusiastic on their work at all At the meeting held on

February 24, 2017 at the Head Office of TAC, the Human Resource Committee of the company seriously gave notice of employees quitting at TAC and stated that HRMactivities there were not done well Therefore, TAC now is surely in a crisis

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of human resource management, which adversely reduces business performance of

the company This is the reason why the researcher decided to choose the topic: “A

STUDY OF FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT

IN TAY A CONSTRUCTION COMPANY” for his master thesis.‖

1.3 Research objectives

The objectives of the research include the followings:

* Finding out the factors affecting HRM activities

* Assessing the current situation of HRM at Tay A Construction Company

* Giving out solutions to improve HRM activities at Tay A Construction Company

1.4 Significance of research

―The researchhelpsTay A Construction Company and its HR mangers to understand the factors that impact the HRM practices while formulating its policies for HR This research can used as a reference document for future studies and create favorable conditions for researchers in linking and connecting relationships

ofaffecting factors with their HRM activities.‖

1.5 Scope and limitation of research

―This study was conducted at Tay A Construction Company, No 19 Nguyen Chi Thanh, Hanoi Only few major environmental factors are studied in the

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research Further investigation can be done on more environmental factor and with large sample There should be more future works to define clearly the related association among HRM and its factors in details.‖

―All findings come from ideas and comments of respondents, and they may depend on potential bias and prejudice of such people involved Also out of 104 sample size 100 employees responses properly, the response rate is 96.15%.‖

1.6 Structure of research

The thesis is divided into five main chapters as follows

Chapter 1: Introduction

Chapter 2: Literature review

Chapter 3: Research methodology

Chapter 4: Research results

Chapter 5: Conclusion and Discussion

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CHAP TER 2LITRETURE REVIEW

2.1 Overview of Tay A Construction Company (TAC)

2.1.1 General information

Tay A has full transaction name of TAY A CONSTRUCTION INVESTMENT CONSULTANCY JOINT STOCK COMPANY (TAC) Its head office is at 19 Nguyen Chi Thanh - Dong Da – Hanoi, and chartered capital up to 2017:

300,000,000,000 VND (in words: three hundred billion Vietnam dong) Tay A Construction Company is an enterprise established on July 6, 1973, a leading bridge construction company in Vietnam On May 7, 2014, the company changed

to a joint stock model

The company’s business lines include construction of domestic and foreign traffic works, production of building materials, prefabricated concrete components, processing of steel beams, steel structures and other mechanical products, construction of office, civil and industrial things, airport road construction,

construction of industrial park, construction of seaports and river ports, investment consultancy for transportation, industry and civil construction, investment in construction of traffic works in the form of BT, BOT, etc

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2.1.2 Establishment and development

Tay A Construction Company specializes in manufacturing and supplying services and solutions in the field of construction; construction of road works,

bridges, architecture, airports, ports Major customers of the company are the ministries, agencies in charge of management, localities invested by the state, domestic and foreign companies which have great financial ability

After 42 years of operation, the company has built hundreds of large bridges,

thousands of civil works, traffic works, ports, airports, etc such as Kienbridge, Song Gianh bridge, Phu Dong bridge, VinhTuy bridge, Hoang Long bridge, Railway bridge, Pa Uon bridge, Sai Gon - Trung Luong Expressway, Phap Van - CauGie Expressway, Hanoi - Thai Nguyen - National Highway 3 Expressway All

of the above projects, despite any complicated terrain and geological conditions, have been implemented safely and safely To ensure the progress, quality, fine art, appreciate employers, consultants Achieving this achievement is a continuous process of accumulation so that the company has a professional, updated constantly

approached and mastered team of state-of-the-art modern construction technologies

A wide range of modern technologies and special equipment have made Tay A brand such as large diameter piles on land and water surface, cable-stayed bridges, cantilever bridges, transporting and assembling super beam, super-weight concrete

girder components, fabrication and installation of steel structures, soft ground processing, etc More importantly, all projects are always implemented with the

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best technical solutions to minimize the impact on the environment, bringing high efficiency to the community and society

Along with affirming the brand name of a leading unit in infrastructure

construction, Tay A has effectively demonstrated its role as an employer through such projects as: BOT Project for Yen Lenh Bridge, BOT Project for Road 188, etc Currently, the company has just started the investment project: Yen Lenh – VuvVong, etc At the same time, to invest in projects that bring high efficiency to

expand the scale

On May 7, 2014, Tay A Construction Company successfully held the first General Meeting of Shareholders and officially moved to operate under TAC joint stock model and increase charter capital from 103 billion to 300 billion dongs Tay

A continues to insist on quality as both a goal and motivation for survival and development TAC Tay A is committed to continually producing and supplying products with the best quality The company will constantly strive, innovate and innovate to become the number 1 trust of customers, firmly integrating into the

region and the world

2.1.3 Organizational structure of TAC

The organizational structure of TAC's executive management is composed of:

Board of Directors, Board of Supervisors, General Director, Deputy General Director, Chief Accountant and supporting apparatus

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General Assembly of Shareholders: the highest authority of the Company,

has the duty to pass reports to the Board of Directors about the situation of business operations, decisions on production and business alternatives and investments, change the Company's Charter

The Board of Directors: has the full power on behalf of the Company to

make decisions on any matter relating to the purposes and interests of the Company except for matters falling within the competence of the General Assembly of Shareholders;

Board of Supervisors: the organization on behalf of shareholders to control all business, management and operation of the Company;

Divisions, departments: each department, division has its own duties and

functions, heads of departments are responsible for implementation and implementation

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Source: Office-TAC (2017)

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2.1.4 Economic and technical characteristics

[Table 2-1] Capital structure of TAC over 3 years of 2014-2016

(Source: Finance and Accounting Department, TAC 2017)

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As mentioned in the above table, TAC's equity increases steadily over the years from 2014 to 2016 The company's financial position is relatively good, the loan capital decreases gradually over the years, the working capital gradually increases

year by year This will help TAC increase its ability to balance revenue and expenditure to serve production and business tasks for the next year

Technology

Along with the integration of the country and t he development trend of the

construction industry traffic, TAC has invested in modern equipment and trained engineers to acquire new technologies TAC equipment is divided into nearly 30 types produced in Europe, Japan, US, Korea, China, etc so it has modern technical features and has adapted to the requirements of construction technology Advanced,

modern technology in the field of construction of bridges and roads is developing today

Over the past years, with the current equipment and personnel capacity , TAC has affirmed its high competitiveness in the market by always winning big

domestic traffic projects, with an average output of 2,000 billion VND/year, meet the progress, quality, the employers The prestige of the company is constantly being confirmed and developed

Technological features are the strengths of TAC, including:

More than 30 lines of foundation, pavement including ironing, shoveling,

leveling, shifting, vibrating roller can be used to build large excavations in all terrain, meeting the standards of ASSHTO

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More than 10 asphalt spreading lines include: mixing plants, wheel loaders,

mopeds, sprayers, sprinklers, lighters, etc These lines can be built independently of productivity of construction of 1000 tons/shift

5 large stone production lines with the combination of equipment: stone

drilling machine, stone screening machine of France, Germany, Russia These lines can be exploited centrally, can move maneuver with the output of 800-4,000 m3/shift with rock types

10 lines of hard bridge construction with pile drilling technology can drill

80m deep, drilling diameter Dmax = 2000mm in all terrain, on land as well as in water There are equipment for production of fresh concrete with a capacity of 60 -

80 tons per hour, with equipment for casting of beam L = 30 - 38m and especially floating equipment for bridge construction, it is possible to construct a bridge over the river with high static and aperture beam

In addition to the service facilities and technology of direct construction, TAC also has a team of design consultants with state-of-the-art equipment and advanced facilities such as electronic stations, etc can measure distances on all terrains with high accuracy, for survey and planning design as well as technical design to ensure

quality; mobile laboratories in the field with modern equipment to ensure the condition of the inspection and acceptance of products

2.1.4.3 Product characteristics

Over ten years of innovation in Vietnam, TAC has built thousands of kilometers of roads, many bridges, architecture, airports, ports, etc with

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construction value of hundreds of millions of dollars The works are of different quality and purpose to serve production, improve living conditions in material as well as spirit, create more and more facilities for human TAC is a strong economic

unit operating in the construction and industrial sectors TAC's products are construction works associated with traffic works such as bridges, roads, etc

For transportation projects, as they are public service projects, they are usually only economically viable from a socio-economic perspective, and are rarely

effective if viewed purely from the perspective of the public finance Also, these projects are not attractive to businesses because businesses that aim primarily at maximizing profits As a result, these works are often invested by the state to serve both production and service purposes Therefore, the ability to repay the state is

due to the transportation fees collected in all areas As well as the increase in revenues from value added tax as well as corporate income tax, where the increase

in taxes is due to road construction projects

The construction of the company is a special product is fixed; single;

manufacture to order; large scale, long product formation time; mostly outdoors or

in the ground In addition, they are directly influenced by local conditions and are highly individualistic in their use The product is made up of the cooperation of many units and related to the landscape, environment, construction meaning, socio-

economic and national security and defense, so the production and business of the company is difficult and also affects the exploitation of the use of production

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equipment, great contradictions always arise Due to the long time, the cost is great,

so small errors can cause big losses and have to be repaired for many years

Characteristics of market, customers

*Market

Many years ago, from a construction company faced many difficulties, especially as a consequence of the low bidding projects, the competition of domestic and foreign enterprises, and the budget For construction work traffic

tight, storm construction materials prices have made the financial situation of the company very serious However, thanks to good corporate culture associated with promoting its strength as a leading bridge construction company in Vietnam, TAC

is now one of the few construction companies in the transportation sector to get out

of the hole and make a profit

From 2014 onwards, TAC won the contract and executed many projects in all three regions of the country In the coming time, TAC will identify the following objectives: acquisition of new technology in tunnel and airport construction in area

where TAC is weak compared to other competitors and at the same time taking advantage of leading enterprises On bridge construction technology to consolidate the northern market and develop the southern market to capture and gain the right

to construct and invest in projects in these most dynamic regions of the country In

addition, the Company continues to maintain its partnership with Japan's transportation construction companies and expand to other international enterprises, step by step to penetrate the construction market in ASEAN and the world

Satisfying quality requirements of customers is the success of TAC As such, TAC builds long-term, sustainable long-term customer relationships with the satisfaction and value that TAC can share with its customers Towards common goals of mutual benefit, mutual development, TAC and customers contribute to the

growth of society In order to become a regular and reliable partner of customers, every member of the company understands this quality policy and seeks all of their activities that contribute to present and future values of TAC

Company culture

TAC's mission is expressed in four aspects:

For customers: TAC is the pioneer in providing the best bridge, port and airport solutions for the industry, in line with customer needs

For shareholders: TAC is committed to the efficient business and

profitability that shareholders expect

For colleagues: TAC provides a challenging and rewarding work environment Always encourage innovation and promote creativity

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For the community: TAC is always concerned with environmental protection,

respect for cultural values, support and community development

The business philosophy of TAC is to use the resources of capital, material and human resources to achieve the safety, quality, progress and achieve the highest business results to make customers satisfied and enhance TAC brand in domestic and foreign markets Safety - Quality - Progress - Effectiveness is always the slogan TAC is aiming to implement on all of its construction sites

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2.1.5 Situation and results of production and business activities of TAC

[Table 2-2] Business results of TAC through 3 years of 2014-2016

(Source: Financeand Accounting Department, TAC 2017)

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From the table as mentioned above, it is able to see that labor productivity in the period 2014-2015 has been reduced, but in 2015-2016, it has not reached the level of 2014 due to limited budget resources and limited access to ODA Towards

the end, the construction market is fierce competition resulting in fewer new constructions being started However, the average income per employee for 2014-

2016, the ratio of return on sales and the contribution to TAC budget has increased over the years Although the business situation is difficult but TAC is still

operating relatively effectively Working capital is increasing but the turnover of working capital decreases over the years, which shows that the use of capital at TAC is not good To overcome this by 2017, TAC plans to invest in new machinery and equipment and search for partnerships for investment in BOT

projects (building, operation, transfer) based on investment by the Ministry of Transport

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[Figure 2-2] Production and profit after-tax of TAC from 2014-2016

(Source: Sales Department - TAC 2017)

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[Figure 2-3] Ratio of output and profit after tax of the current year compared to the

previous year

Source: Sales Department - TAC (2017)

From the tables above we realize that the output value of Tay A Construction Company from 2014 to 2016 next year is lower than the previous year but the profit after tax next year increased compared to last year with high amplitude That said, despite the increasingly competitive construction market, fewer new projects

won the bid, but TAC has done well to manage its costs to ensure business efficiency Measures such as contracting internal costs, reducing unnecessary payrolls, cash flow from projects serving the project, thereby speeding up the flow

of capital, reducing the capital costs incurred to ensure working capital flows for

ongoing projects and newly awarded projects

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2.2 Human resource and human resource management

2.2.1 Human resource

2.2.1.1 Definition of human resource

―According to Business Dictionary, human resource is the sourcelaying inexpertise, abilities and motivation of people As a result, it can be regarded as the scarcest and most crucial productive source that creates the strongest and most sustainable competitive advantage for an organization.‖

―According to William R Tracey, in The Human Resources Glossary, Human

Resources include staff who work in an organization, they are different from financial and material sources of such organization A Human Resource is a person

or employee within the organization.‖

―According to Wikipedia, human resources are the people who build up the labor forceof an organization, business sector, or economy In some cases, the term

"Human capital" has the same meaning with "human resources", despite the fact that human capital typically is used in a more narrow context (i.e., the expertise the individuals have and economic growth) Likewise, other terms sometimes used include "manpower", "talent", "labour", "personnel", or simply "people".‖

Therefore, according to the researcher, human resource is used to refer to employee working at the company and using his skills and knowledge to contribute

to the development of that company

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2.2.1.2 Importance of human resource

―Human resources is important to organizations in many specific areas, ranging from strategic planning to company image HR practitioners in a small business

who have well-rounded expertise provide a number of services to employees The areas in which HR maintains control can enhance employees’ perception of HR

throughout the workforce when they believe HR considers employees to be its internal customers and renders services with that in mind.‖

―HR improves the company's bottom line with its knowledge of how human capital affects organizational success Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business

demand.‖

―HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same ind ustry

or companies competing for employees with similar skills They conduct extensive

wage and salary surveys to maintain compensation costs in line with the organization's current financial status and projected revenue.‖

―Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement workers They are important to the organization

because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organization's budget and consistent with economic conditions They also are familiar with employee benefits most likely to

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attract and retain workers This can reduce the company’s costs associated with

turnover, attrition and hiring replacement workers.‖

―Employers have an obligation to provide safe working conditions Workplace safety and risk management specialists from the HR area manage compliance with U.S Occupational Safety and Health Administration regulations through maintaining accurate work logs and records, and developing programs that reduce the number of workplace injuries and fatalities Workplace safety specialists also

engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.‖

―HR employee relations specialists minimize the organization's exposure and liability related to allegations of unfair employment practices They identify,

investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal and state anti-discrimination and harassment laws.‖

―HR training and development specialists coordinate new employee orientation,

an essential step in forging a strong employer-employee relationship The training and development area of HR also provides training that supports the company's fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles.‖

―Employee relations specialists in HR help the organization achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship They administer employee

―HR professionals work closely with hiring managers to effect good hiring decisions, according to the organization's workforce needs They provide guidance

to managers who aren't familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.‖

―HR workers ensure that the organization complies with federal state employment laws They complete paperwork necessary for documenting that the company's employees are eligible to work in the U.S They also monitor compliance with applicable laws for organizations that receive federal or state government contracts, through maintaining applicant flow logs, written affirmative

action plans and disparate impact analyses.‖

2.2.2 Human resource management

―The researcher shared the same view with that of George Elton Mayo, that Human Resource Management is the process of recruitment and selecting employee, providing orientation and induction, training and development, assessment of employee (performance of appraisal), providing compensation and