Running head: Assessment 2 Reviewing the Literature 1

HRMT20024, T1 2020 - Assessment 2

Reviewing the Literature
Assessment 2 Reviewing the Literature

Article 1

Full reference of the article:

Naveed, I. C., Aftab, I., Arif, Z., Tariq, U., & Muhammad, A. R. (2019). Impact of customer-
oriented strategy on financial performance with mediating role of HRM and innovation
capability. Personnel Review, 49(3), 631-643.
doi:http://dx.doi.org.ezproxy.cqu.edu.au/10.1108/PR-02-2018-0056

Objective and research question:

The objective of the article is to highlight the relationship between financial performance and
customer-oriented strategy. Furthermore, the role of supporting human resource management and
innovation capability in contribution towards financial performance and customer-oriented
strategy of the firm has been also highlighted. The research question based on the article is-
‘How customer-oriented strategy impacts the financial performance of firms based on innovation
capability and HRM?’

Method:
A quantitative approach using a questionnaire technique has been utilized for the study where the
data were gathered from the managers of manufacturing firms of Gujranwala, Pakistan. In
addition, structural equation modeling was performed to conduct data analysis. This has assisted
to test the hypothesis for the study while developing deep insights about the study.

Findings and discussion:

The findings of the study highlighted that there exists a significant positive relation between
customer-oriented strategy and financial performance of firms in relation to the impact of
supportive human resource management and innovation capability. As put forwarded by
Nankervis et al. (2019), human resource management and line functions have to be aligned
strategically in order to enhance the quality of output as well as to assess the financial
disadvantages and advantages. Based on such context, the study showed the contribution of
supportive human resource management towards the financial performance of the firm. Other
than that, Nankervis et al. (2019) also stated that the adaptation of effective strategies, roles, and

2|Page
Assessment 2 Reviewing the Literature

practices while assessing the environmental challenges based on innovation can contribute
towards the attainment of organizational goals and objectives.

The study also identified that the role of employees is significant in order to satisfy its customers
in order to gain financial advantages for the firm. Therefore, taking care of employees and
focusing on employee retention is highly essential for firms to satisfy customers as well as
increase profits margin. On the other hand, the study also focused that innovation capability is a
significant factor that offers a competitive edge to firms resulting in higher financial
performance. Based on such note, Nankervis et al. (2019) also suggested that human resources of
a firm must comprehend the trends towards the need for creativity and innovation at the
workplace to gain competitive edge and profits as customers are highly inclined towards
innovation. Hence, it can be stated that the role of human resource management and innovation
is crucial to contribute to higher financial performance and satisfy customer needs.

Conclusion:
The study developed deep insights into the need for human resource management and innovation
capability to enhance financial performance as well as to develop a customer-oriented strategy
for the firm. It has been well established that supportive human resource management plays a
significant role in enhancing innovation capability and strategy exaction for firms resulting in
competitive edge and profits in the business.

How this article will contribute to my Essay 3.

This article offered an in-depth understanding of the role of supportive human resource
management and innovation capability towards customer-oriented strategy and financial
performance of firms. In addition, the study also showed the need and effective use of human
resources for the firms undertaking a customer-oriented approach. Hence, this study is significant
for my essay as it not only focuses on the financial performance of the firm but also towards a
customer-oriented strategy that needs effective human resource strategies and innovation
capabilities.

3|Page
Assessment 2 Reviewing the Literature

Article 2

Full reference of the article:

Ferreira, A. I., Martinez, L. F., Rodrigues, R. I., & Ilhéu, C. (2017). The impact of human
resources practices on consumers’ investment intentions. Employee Relations, 39(4), 475-486.
doi:http://dx.doi.org.ezproxy.cqu.edu.au/10.1108/ER-05-2016-0097

Objective and research question:

The objective of the study is to analyze the influence of human resources practices towards the
investment intentions of customers with regard to the financial sector. Furthermore, the study
also highlighted that whether the HR practices of banks influence the investment decisions of
consumers or the consumers who decide their investment based on profits. The research question
based on the article is- ‘How human resources practices influence the investment intentions of
consumers in the financial sector?’.

Method:
The data were collected from 548 management students and managers based on the quantitative
approach. In addition, two banks with contrasting HR practices were selected and real news
about the practices has been conveyed to the participants. Based on such a technique, their
investment allocations have been analyzed.

Findings and discussion:

Based on the study, the primary findings highlighted that the investment decisions of participants
in the bank were based on profitability compared to the bank’s HR practices. It has been well
stated by Nankervis et al. (2019), the socio-political and economic environment of firms is
changing rapidly that critically challenges the practices of strategic human resource management.
The economic environment forces consumers to focus primarily on profit margin rather than HR
practices. This requires the need for informed HR practices that fulfill the need and change the
perception of consumers. The study also implies that appropriate HR practices can enhance
brand identity as well as increase investor’s and consumer’s trust. Hence, the need for innovative
and creative workforce is highly required aligned with the HR practices.

4|Page
Assessment 2 Reviewing the Literature

On the other hand, the investment decision of in-group managers was highly based on the HR
practices of the bank, irrespective of profit margin from such investment. It also highlights that
the participants when confronted with a situation they feel identified with, show a higher
inclination towards the importance of HR practices for investment compared to profit margin. It
has been well stated by Nankervis et al. (2019), HR planning is highly significant in the
changing economic and political environment in order to meet the need and attain the trust of
consumers. In relation to such context, the study also highlighted that identification of consumers
with the situation is essential which needs the development of HR practices based on consumer
needs and satisfaction specifically in financial sectors.

Conclusion:
The study offered significant insight into the need for appropriate HR practices that highlight
corporate reputation that develops the perception of consumers towards the firm. It has been also
comprehended that the importance of HR practices and corporate social responsibility is high for
influencing the decisions of consumers. This certainly becomes the source of innovation and
competitive advantage of the firm. Hence, the findings and results of the study were highly
conclusive.

How this article will contribute to my Essay 3.

This article offers deep insights into the impact of economic and socio-political factors on the
perceptions of consumers in the financial sector. In addition, the positive relation between profit
and investment decisions highlights the need for appropriate HR practices that can influence the
perception of consumers towards the firm. Hence, this article is significant for the essay.

5|Page
Assessment 2 Reviewing the Literature

Article 3

Full reference of the article:

Graeme Martin & Paul J. Gollan (2012) Corporate governance and strategic human resources
management in the UK financial services sector: the case of the RBS, The International Journal
of Human Resource Management, 23:16, 3295-3314, DOI: 10.1080/09585192.2012.689159

Objective and research question:

The objective of the study is to analyze the relationship of corporate governance and strategic
human resources management towards the financial service sector with regards to the UK. In
addition, the role of leadership and HRM towards the success or failure of firms have been also
highlighted in the study, based on the case study of a financial firm, Royal Bank of Scotland. The
research question based on the article is- ‘How corporate governance is linked with strategic
human resource management based on the UK financial services sector?’.

Method:
A qualitative approach through the use of a case study technique has been done to analyze the
study. As an illustration, the case study of the Royal Bank of Scotland has been analyzed based
on the global financial impact in the financial sector of the UK.

Findings and discussion:

The findings of the study reflected that the changes in corporate governance align with the
changes in the role of HR, ethics, SHRM, and strategy. In addition, the changes in shareholder
value and leadership strategy that were incorporated in RBS after the financial crisis reflected
positive outcomes. Likewise, Nankervis et al. (2019) also suggested that a HR manager must
remain alert during changes in the global environment to make appropriate changes in the HR
practices and strategies. On the other hand, the study also highlighted that before the financial
crisis, the role of HR has been limited at RBS which led to the failure of the bank. This
highlights the fact that effective leadership style and organizational culture based on quality HR
practices can induce appropriate changes leading to sustainability during times of crisis.

6|Page
Assessment 2 Reviewing the Literature

Other than that, Nankervis et al. (2019) stated industrial relations based on effective HR
frameworks and practice can assist to develop strategies that can contribute towards corporate
governance. Based on the study, the need for HR frameworks and practice has been evident as
after the financial crisis the level of employee engagement and employee involvement had been
extensive. In addition, it has been also comprehended that the emergence of the stakeholder
model of corporate governance and HR can assist the financial sector to sustain during the global
financial crisis. Furthermore, it has been also identified that organizational climate and HR
policies positively influence corporate governance within the financial sector.

Conclusion:
It has been analyzed through the study that different parts of the business and segments of the
workforce have to be managed effectively in order to sustain in the business within the financial
sectors. The influence of HR practices is significant towards corporate governance of financial
services organizations.

How this article will contribute to my Essay 3.

The link between HRM and corporate governance in the financial sector has been established in
the article which is essential to comprehend. In addition, the article also highlighted that the need
for following effective HR practices and policies is significant for a financial sector like RBS to
influence corporate governance to sustain the financial crisis. Hence, this article is significant for
the essay.

7|Page
Assessment 2 Reviewing the Literature

Article 4

Full reference of the article:

Damianos Giannakis & Michael J. Harker (2014) Strategic alignment between relationship
marketing and human resource management in financial services organizations, Journal of
Strategic Marketing, 22:5, 396-419, DOI: 10.1080/0965254X.2013.876082

Objective and research question:

The objective of the study is to analyze the reason behind the need and strategic alignment of
relationship marketing-focused financial services with human resource management. In addition,
the study also highlights the influence of human resource management towards organizational
value and relationship marketing performance. The research question based on the article is-
‘How relationship marketing and human resource management are strategically aligned in
financial services organizations?’.

Method:
A case study research methodology has been incorporated for the study that investigates
contemporary phenomenon. The use of five Greek retail bank cases has been utilized to attain the
desired results from the study. Comparative data analysis has been done to fulfilling the
objective of the study among the five retail banks.

Findings and discussion:

The findings of the study indicate that there exist a positive senior management attitude and
strategic orientation towards human resource management and relationship marketing that
certainly plays a significant role in influencing the internal factors. Furthermore, strategic
orientation enhances collaboration between relationship marketing and human resource
management. As stated by Nankervis et al. (2019), human resource development is significant to
align employees at each level which plays a significant factor to enhance organizational
functions including marketing leading to success. It has been well identified in the study that the
financial sector requires effective relationship marketing and its alignment with human resource
management is significant to change consumer’s perception. In addition, Nankervis et al. (2019)

8|Page
Assessment 2 Reviewing the Literature

also stated that ethical considerations have to be incorporated in human resource strategies in
order to gain organization success at each function.

It has been also identified in the study that management attitudes towards employees and framing
strategies significantly influence the creation of appropriate organizational culture in financial
sectors. Likewise, knowledge, skill, and development of human resource is significant to align
relationship marketing and human resource management as it can lead to a successful business in
the financial sector. The study also highlights that the focus towards sales quotas is relatively
high in the financial sector compared to the development of human resources. Similarly,
Nankervis et al. (2019) also highlighted that the development of human resources is essential in
an organization for generating sales and fulfilling organizational goals. The study also
highlighted that effective training is necessary to develop the competence of individuals rather
than just focusing on quantitative factors.

Conclusion:
It has been comprehended through the study that there is a significant link between relationship
marketing and human resource management that needs consideration by management
specifically in financial sectors. In addition, the focus should be more on developing human
resources as it can lead to successful relationship marketing resulting in fulfillment of the
organizational goal.

How this article will contribute to my Essay 3.

As the article highlights the relation between relationship marketing and human resource
management, the understanding of such factors in the financial sector is highly essential. The
need for the development of human resources has been evident in the article which is significant
for the essay. The insights about human resource management and their development are
beneficial as well.

9|Page
Assessment 2 Reviewing the Literature

Article 5

Full reference of the article:

Peters, P., den Dulk, L., & de Ruijter, J. (2010). May I work from home? views of the
employment relationship reflected in line managers' telework attitudes in six financial-sector
organizations. Equality, Diversity and Inclusion: An International Journal, 29(5), 517-531.
doi:http://dx.doi.org.ezproxy.cqu.edu.au/10.1108/02610151011052799

Objective and research question: (75-100 words)

The objective of the study is to analyze the changing views of employment relationship based on
the adoption of telework practice. The general telework attitude formation process of line
managers have been significantly accessed as well as their possible outcomes. In addition, the
employment relationship of line managers based on telework work practice has been also
identified in the study. The research question is- ‘How employment relationship influences
telework attitudes of line managers in financial sector organizations?’.

Method:
The multi-method study comprises two parts among the 65 managers in six organizations of the
financial sector. In addition, the interview approach has been developed for the mangers where
their arguments were accessed based on their support or against the telework practices in their
department. The telework attitude formation process has been also analyzed by this method.

Findings and discussion:

The study revealed that the governance view of an organization significantly dominates the
telework practice at the workplace. It has been also comprehended that the telework formation
process is idiosyncratic. In addition, the conservative attitudes of mangers have been identified
towards home-based telework as they believe that it can benefit a few workers. This certainly
reduces the effectiveness and employee commitment based on a long term basis. On the other
hand, Nankervis et al. (2019) suggested that the need and commitment of employees have to be
aligned with organizational strategies. In relation to such context, the issue of trust towards the
workers has been identified limited by managers which critically impacts the benefits of the
strategic tool, i.e., telework.

10 | P a g e
Assessment 2 Reviewing the Literature

Other than that, the study also put forwards that the human resource management system
requires consistency internally as well as must focus on employment relationship including
commitment and trust. Likewise, Nankervis et al. (2019) also suggested that the system approach
in the design and involvement of employees at each level is significant in order to increase trust
and commitment. In addition, it has been also comprehended that a systematic approach must be
undertaken for HR planning techniques that can assist to gain trust among the managers. The
study depicts that control and coordination must be focused less compared to trust and
commitment as it can certainly strengthen the relationship between employees at each level.
Lastly, it has been also analyzed that the strategic tool home-based telework has to be reinforced
along with human resource management practices by aligning with an effective employment
relationships.

Conclusion:
It can be concluded that home-based telework has significant benefits; however, the perception
of managers towards the practice has to be changed which required effective employment
relationship as well as human resource management practice. In addition, the focus towards trust
and commitment must be provided rather than control and coordination to reap the benefits of
home-based telework.

How this article will contribute to my Essay 3.

This article is significant for the essay as it focuses on a new challenging work practice of home-
based telework which takes significant consideration of appropriate human resource management
practices. Furthermore, the need for employment relationship and trust have been highlighted
evidently within the financial sector that can certainly contribute towards the essay.

11 | P a g e
Assessment 2 Reviewing the Literature

References
Nankervis, A., Baird, M., Coffey, J., & Shields, J. (2019). Human resource management.
Cengage AU.

12 | P a g e