Journal of Strategic Human Resource Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Mou System: Enhancing Employee Performance in Indian Cpse's


Affiliations
1 Director, Institute of Public Enterprise, Hyderabad, India
2 Assistant Professor, Institute of Public Enterprise, Hyderabad, India
     

   Subscribe/Renew Journal


Companies take numerous initiatives to ensure higher performance. The role of HR and HR systems has become indispensable for companies to ensure performance and survive in the competitive world. The role of HR systems of public sector units (PSU) in India is equally important in establishing a performance culture. Government has taken numerous initiatives to ensure a performance culture among the PSU's. The Memorandum of Understanding (MoU) system is an age old process in India which underwent numerous modifications over the years and has ensured greater involvement of people with higher individual and organisational performance. The paper elaborates the concept of MoU system and its implementation approach in Indian Central Public Sector Enterprises (CPSE's). The paper uses secondary data to identify the relation between the MoU, organisational performance, and its employees. The paper provides a new thought on the concept of MoU as an HR process based approach which enhances individual performance. The paper discusses a model for initiating performance based focus in organisations.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Amba-Rao. S. C., Petrick, J. A., Gupta, J. N. D., & Von der Embse, T. J. (2000). Comparative performance appraisal practices and management values among foreign and domestic firms in India. International Journal of Human Resource Management. 11(1), 60 - 89.

  • Armstrong, M. & Baron, A. (1998). Performance Management: The new realities, London: CIPD.

  • Armstrong, M. & Baron A. (2009). Performance Management- A strategic and integrated approach to achieve success, (6th ed.). London: Jaico, CIPD.

  • Armstrong, M., & Baron, A. (2005). Managing Performance: Performance Management in Action, London: Jaico, CIPD.

  • Arthur, J. (1990). Industrial Relations and Business Strategies in American Steel Minimills. Unpublished Ph.D. dissertation, Cornell University.

  • Arthur, J. (1992). The link between business strategy and industrial relations systems in American steel minimills. Industrial and Labor Relations Review, 45(4), 488-506.

  • Arthur, J. (1994). Effects of Human Resource Systems on Manufacturing Performance and Turnover. Academy of Management Journal, 37(4), 670-687.

  • Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, 39(4), 779 – 801.

  • Bordia, P., & Blau, G. (1998). Pay referent comparison and pay level satisfaction in private versus public sector organizations in India. International Journal of Human Resource Management, 9(1), 55-67.

  • Budhwar, P. (2001). Doing Business in India. Thunderbird International Business Review, 43(4), 549-68.

  • Cadic, J. Y. (1979). The program Contract: An attempt to rationalize to the management of public sector, Doctrine (Dec, 20th) Translated from the language service division, World bank.

  • Central Public Sector Enterprises - Performance Linked Incentive Schemes, Employees Stock Option Scheme and Enterprise specifi c implementation models report (n.d.), Retrieved from http://chennaicustoms.gov.in.

  • Dessler, G. (2005). Human Resource Management (10th ed.). Upper Saddle River, NJ: Pearson Education Prentice Hall.

  • DPE MoU guidelines. (2010 - 11) Retrieved from http://dpe.nic.in/important_links/dpe_guidelines

  • DPE survey (2010 - 11) Retrieved from http://dpe.nic.in/important_links/dpe_guidelines

  • Ferris, G. R., Hochwarter, W. A., Buckley, M. R., Harrell-Cook, G., & Frink, D. D. (1999). Human resource management: Some new directions. Journal of Management, 25(3), 385–415.

  • Fisher, C. D., Schoenfeldt, C. F. & Shaw, J. B. (1997).

  • Performance appraisal. Human Resource Management,(3rd ed.), Boston: Houghton Miffl in, 449-502.

  • Huselid, M.A. (1995). The impact of human resource management practices on turnover, productivity and corporate financial performance. Academy of Management Journal, 38(3), 635 - 672.

  • Jones, L. P. (1981). Towards a Performance Evaluation Methodology for Public Enterprise: With special reference to Pakistan. On International symposium Economic Performance of Public Enterprise, Islamabad

  • Jones, L. P. (1985). Public enterprise for whom? Perverse distributional consequences of public operational decisions. Economic Development and Cultural Changes,33(2), 333-47.

  • Jones, L & Trivedi, P. (1983). User Manual for the Computerized Public Enterprise Performance Information System, Seoul Korea: Korean development Institute

  • Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: A competency- based perspective. Academy of Management Review, 19(4), 699–727.

  • Lowery, C., & Petty, M. (1995). Employee Perceptions of the Effectiveness of a Performance-based Pay Program in a Large Utility. Public Personnel Management, 24(1), 475-493.

  • Mankidy, J. (1995). Changing Perspectives a Workers Participation in India with Particular Reference to Banking Industry. British Journal of Industrial Relations, 33(3), 443-58

  • Marchant, T. (1999). Strategies for improving individual performance and job satisfaction at meadowvale Health. Journal Of Management Practice, 2(3), 63-70

  • Mehdi, I. (1984). Performance Evaluation of Public Enterprise in Pakistan: Experiment in Social Accounting Systems. The Pakistan Development Review, 23(2-3), 179-203

  • Milkovich, G., & Wigdor, A. (1991). Pay for Performance, National Academy Press, Washington. DC.

  • Munene, J.C., Nansubuga, F., Kamuhanda, R., Matovu, V., Bakwega, A. & Machunsky, M. (2003). A Process Centred Three-factor Framework for Analysing, Predicting and Prescribing Organisational Climates in NNGo in Africa, Makerere University, Kampala.

  • Nagarkatti, K. N. (1968). Assessment of merit in Indian public service. Indian Administrative and Management Review, 1(1), 40-57.

  • Nawab, S. I. (1985). The Evaluation of Public Enterprise: The Pakistan Signaling System, Public Enterprise, 5(2).

  • Organization for Economic Co-operation and Development. (2005). Performance-related Pay Policies across 12 OECD Countries: Brief Overview, OECD Report. Retrieved from http://www/oecd.org.

  • Public enterprise survey (1988 - 89). Retrieved from http://dpe.nic.in/pesurvey/pe_survery_forms

  • Purcell, J., Kinnie, N., Hutchinson, S. (2003). Understanding the people and performance link: Unlocking the black box. London: CIPD.

  • Ramamurty, R. (1986). Observation of the South Korean System for Performance Evaluation of Public Enterprises. Working paper number, 86-83, Boston, Massachusetts: Northeastern University.

  • Roberts, J., McNulty, T., & Stiles, P. (2005). Beyond agency conceptions of the work of the non-executive director: creating accountability in the boardroom. British Journal of Management, 16(1), 5-26.

  • Sharma. R. D. (1992). Management Training in India: Its Nature and Extent. International Journal of Manpower. 13(2), 41-54.

  • Shaw, S., & Atkinson, C. (2006). (Eds) Human Resource Management in an International Context by Rosemary Lucas, Ben Lupton and Hamish Mathieson. Published by the CIPD.

  • Tayeb, M. (1987). Contingency theory and culture: a study of matched English and the Indian manufacturing fi rms. Organization Studies, 8(3), 241-261.

  • Trivedi, P. (1990). Memorandum of Understanding- An Approach to Improving Public Enterprise Performance, New Delhi: International Management Publishers.

  • Trivedi, P. (1995). Improving government performance: What gets measured, gets done. Economic and Political Weekly, 29(35), 109-114.

  • Walton, R. E. (1985). Toward a strategy of eliciting employee commitment based on policies of mutuality. In R. E. Walton & P. R. Lawrence (Eds.). Human resource management: Trends and Challenges, Boston: Harvard Business School Press.

  • Williams, R. (2002). Managing Employee Performance: Design and Implementation in Organizations, London: Thomson Learning.

  • Wright, P. M., McMahan, G. C., & McWilliams, A. (1994). Human resources and sustained competitive advantage: A resource-based perspective. International Journal of Human Resource Management, 5(2), 301 –326.

  • Venkataratnam, C. S. (1995). Economic liberalization and the transformation of industrial relations policies in India. In Verma, A., Kochan. T. A. & Lansbury, D. R., (eds) Employment Relations in the Growing Asian Economies. London: Routledge.


Abstract Views: 647

PDF Views: 2




  • Mou System: Enhancing Employee Performance in Indian Cpse's

Abstract Views: 647  |  PDF Views: 2

Authors

R K Mishra
Director, Institute of Public Enterprise, Hyderabad, India
Shulagna Sarkar
Assistant Professor, Institute of Public Enterprise, Hyderabad, India

Abstract


Companies take numerous initiatives to ensure higher performance. The role of HR and HR systems has become indispensable for companies to ensure performance and survive in the competitive world. The role of HR systems of public sector units (PSU) in India is equally important in establishing a performance culture. Government has taken numerous initiatives to ensure a performance culture among the PSU's. The Memorandum of Understanding (MoU) system is an age old process in India which underwent numerous modifications over the years and has ensured greater involvement of people with higher individual and organisational performance. The paper elaborates the concept of MoU system and its implementation approach in Indian Central Public Sector Enterprises (CPSE's). The paper uses secondary data to identify the relation between the MoU, organisational performance, and its employees. The paper provides a new thought on the concept of MoU as an HR process based approach which enhances individual performance. The paper discusses a model for initiating performance based focus in organisations.

References