Influence of Human Resource Practices on reduction of stress among employees

DR.AYUB KHAN DAWOOD, Dean Research, PG and Research Dept. of COMMERCE

THE Quaide Milleth College for Men, Medavakkam, Chennai-600100
K.P.Savitha, Research scholar, University of Madras
The small and medium-sized (SMEs) play an important role in creating output value and
providing new employment opportunities, but there are a lot of problems with human
resources in SMEs, lack of strategic planning on human resources, human resources
policy and Human resource practices etc. Its necessary, therefore, for SMEs to
strengthen the setup of human resource management system. This paper puts
forwardinfluence of human resource practices on reduction of stress among employees
Keywords: SMEs, Human resource practices, Stress Management,
INTRODUCTION:
A robust micro, small and medium enterprises (MSMES) sector is the pillar of broadbased economic growth in any country, and this is particularly true in India. The second
industrial policy of the government laid the foundation of a policy frame work for smallscale industry. MSMES in India contributes 9% to our GDP where in 45 % of the total
manufacturing output and 40 % of Indias total export are from MSMEs. The small and
medium-sized (SMEs) play an important role in creating output value and providing new
employment opportunities, but there are a lot of problems with human resources in
SMEs, lack of strategic planning on human resources, human resources policy and
Human resource practices etc. Its necessary, therefore, for SMEs to strengthen the setup
of human resource management system.This paper puts forwardinfluence of human
resource practices on reduction of stress among employees
DEFINITIONS OF HUMAN RESOURCE MANAGEMENT:
MICHALE ARMSTRONG in a handbook of HRM practice, describe the HRM as the
The strategic and coherent approach to the management of an organization most value
asset- the people working there who individually and collectively contribute to the
achievement of the objective of business.
Human resource can be described as organizational function accountable for obtaining
and maintaining qualified Employee .In todays complex environment fulfilling that
mission is a major contributor to an organization success.-American Management
Association 2000
REVIEW OF LITERATURE:
K. SUNDAR, P. ASHOK KUMAR (2012) examined the fact that sampled units do not
have formal grievance Redressal system. Therefore he argues that it should put in place a
system to handle complaints in a professional way i.e. designating an officer for
grievance Redressal; reporting the grievance; acknowledgement of grievance; setting
time limit for grievance settlement; giving feed back to the complaints attended and
provision for appealing to higher ups in case of unsatisfactory resolution of grievances
Sita C. Amba-Rao Dilip Pendse (1985 )suggests that lack of formal disciplinary
procedure and actions on the part of a large percentage of reporting firms was due to(1)
small firms either do not perceive its need or they deal with it informally, (2) some
common understanding on disciplinary matters is taken for granted by both parties, (3)
firms are not legally bound to have such a procedure, (4) they are non-unionized, or (5)
the business is staffed by members of one family.
1

As regarding HR planning Lixue Cunningham and chrisRowely (2010) observes that

to survive and sustain growth in china dynamic environment a system of HRM Practicealign with other factors including an organizational strategy and taking in to account of
national context, may be a way to increase competitive capabilities of SME.
METHODOLOGY
Methodology followed in this research is based on Indian condition. The data is collected from
467 employees of the small and medium enterprises by interviewing them with questions
covering HRM practice and performance in SMEs inChennai. Format of questionnaire is being
prepared to interview the manager in key Role. In addition, the view of the subordinates and
workers also observed by way of direct interview. Questionnaire comprises of 101 items that was
designed to measure the HRM practices and performance of SMEs in Chennai. These 101 Items
are grouped under elven major factors of Human resource practices of employee. Multiple
regression analysis is used to identify the influence of Human Resource practices on reduction of
stress among SMEs.
OBJECTIVES OF THE STUDY:
To Measure the effectiveness of Human Resource Practices of SMEs on employees stress
Influence of human resource practices on reduction of stress among employees

The application of linear multiple regression analysis clearly reveals the following
TABLEModel Summary
Model
1

R Square
.257(a)
.066
a Predictors: (Constant), HPO, CD, RS, PA, TD, PM, GR, RC, PL

Adjusted R Square
.048

Std. Error of the Estimate

.74336

From the above table it is found R=.257, R 2=.066, adjusted R2 =.048 .This implies that the
Human Resource practices create 6.6% variance over reduction of stress among employees of
SMEs. This leads to the verification of model fit through analysis of variance table
TABLE 5.20ANOVA
Model
1

Regression
Residual

Sum of Squares
17.795

df

251.976

Total

269.770
a Predictors: (Constant), HPO, CD, RS, PA, TD, PM, GR, RC, PL
b Dependent Variable: IHP7

Mean Square
1.977

456

.553

F
3.578

Sig.
.000(a)

465

From the above table it is found F=3.578, p=.000 are statistically significant at 5% level. This
implies that there is relationship between Human Resources practices and reduction of stress
among the employees in SMEs
Uk study of management development found that small firms with a strong orientation towards
growth were the most likely firm to adopt stress management development (Thomson et al 1997;
patton and Marlows 2002)

5.21Coefficients Table
Unstandardized Coefficients
Model
1

B
(Constant)
Training
&Development
Recruitment &
selection
Performance
Appraisal
Remuneration
and
compensation
Participation
Management
Career
Development
Grievance
Redressal
HR Planning
HR Policy

5.962

Std. Error
.389

-.081

.106

-.170

Standardized
Coefficients

Beta

Sig.
15.313

Std. Error
.000

-.048

-.763

.446

.110

-.092

-1.545

.123

.050

.073

.043

.686

.493

.145

.104

.100

1.402

.162

.090

.109

.057

.829

.408

-.148

.086

-.095

-1.720

.086

-.366

.120

-.257

-3.045

.002

.235

.192

.172

1.221

.223

-.173

.159

-.124

-1.084

.279

From the above table it is found that grievance redressal (t=-3.045, Beta=-.257, p=.002) are
statistically significant at 5% level. It is the most important Human Resource Practice. In SMEs
stress is reduced by following the grievance redressal procedures
CONCLUSION:From the above Assessment, the functioning of SMEs showsinfluence of
human resource practices on reduction of stress among employees.In SMEs stress is reduced by
following the grievance Redressalprocedures. Through proper grievance redressal employees
problems can be solved in SMEs, and stress can be reduced.. In small organizationsgrievance
procedures consist of two steps .The supervisor is given the first opportunity to handle grievance.
If the problem is unsolved the second step in which the middle level executives along with a
higher level union officers attempt to tackle the grievance.
REFERENCE:
1. Annual Report 2013-2014
2. Fundamentals of Human Resource management-Alan price
3. MICHALE ARMSTRONG in a handbook of HRM
4. Nazlina Zakaria, Investigating the role of human resource management practices
on The performance of SME: a conceptual framework Journal of global
management January 2011. Volume 3. Number 1
5. Sundar and P. Ashok kumar, Human Resources Management Practices In Small
and Medium Industries An Indian Experience A Journal of Multidisciplinary
Research Vol.1 Issue 9, December 2012
6. Li Xue Cunningham, Managing human resources in SMEs in a transition
economy: evidence from China The International Journal of Human Resource
Management, Vol. 21, No. 12, October 2010, 21202141