Performance Management 03
Performance Management 03
Performance Management 03
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 1. Ver. III (Jan. 2017), PP 43-53
www.iosrjournals.org
Abstract: This study carries out a critical review of literature on human resource management information
system, government policy and organization performance. The motivation for carrying out this literature review
is presented and the point of contention is the application of human resource management information system,
government policy and organizational performance. The objectives of carrying out this literature review
include; to conceptualize the adoption of human resource management Information systems (HRMIS) and
organization performance, to analyze the evolution of human resource information system (HRMIS) concept, to
identify the theories upon which human resource information system (HRMIS) and organization performance
are anchored upon, to critically review the empirical studies and identify the inherent gaps and to identify the
factors that influences the adoption of HRMIS .The study reviews the origin of adoption of human resource
management Information systems from both academic and management perspective. Factors influencing the
adoption of human resource management systems, theoretical framework of human resource management
systems whereby four theories namely diffusion theory, social capital theory, behavioral theory and resource
based view theory have been discussed. An empirical review was done on thematic issues, methodology, data
collection and data analysis. Various studies have been reviewed and analyzed to identify knowledge gaps.
Conclusions were drawn and recommendations made based on the literature reviewed. A conceptual frame
work alongside measures is proposed for studying human resource management information system,
government policy and organizational performance and methodology for the study is also proposed.
Keywords: Information and Communications Technology (ICT), Information System (IS), World Wide Web
(www), Technology Acceptance Model (TAM), Technology Organizational Environment (TOE), performance
I. Introduction
In the recent past many organizations including private companies, universities, Small and Medium
Enterprises (SMEs), and government departments have utilized the Internet and the World Wide Web (WWW),
as the mainstream tool for communication (Muathe 2010). Firms are now investing heavily in the use of e-
business Information and Communication Technology (lCT) systems together with internal and external
communications in the organization in order enhance their efficiency and effectiveness in terms of service
delivery (Maguire and Koh,2004; Muathe, 2010). This has contributed largely on human resource management
leading to the adoption of IT related systems in the work place.
According to Shani and Tosani (2010) there is a lot evidence in regard to the transformation of HR
functions to most current formats, and this is evident in the popularity of human resource management
information systems (HRMIS) within organizations. HRMIS has a key influence on role of the HR function and
the workplace. In order for HRM cope up with the market competition, they have to embrace the new
technology for them to remain viable. This entails competitiveness which comes about as a result of pressure
from competitors due to the adoption advanced systems of operation (Tung and Rieck, 2005; Muathe 2010).
The competiveness is the source of organization’s power. The break through and innovations have led
to the use of IT systems in the work place. The new inventions pose a challenge to the old-fashioned ways
offering HRM support across all sectors for over 10 years (Bondarouk & Ruel 2009; Chakraborty & Mansor
2013). Further, more the performance of human resource relies on the use of new technologies .HRM
organizations in the recent past strongly rely on the use of HRMIS (Lippert & Michael Swiercz, 2005; Troshani,
Jerram, & Hill, 2011; Chakraborty & Mansor 2013).
People and information are key aspects in the work place and greatly have effect on performance of
businesses and therefore in order to succeed thus there is need for good management of both in order to attain
success (Martinsons, 1994; Teo, Lim, & Fedric, 2007). This therefore calls for the use of the best ways possible
in order to maximize their proficiency. According to Teo et al. (2007) HRMIS can be used to put together these
two resources through system use which is likely propel the businesses to achievement of their goals. Thus there
is need for the adoption of proper HRMIS systems for organizations to achieve success. The application of
DOI: 10.9790/487X-1901034353 www.iosrjournals.org 43 | Page
Towards a Theoretical Model for Human Resource Management Information Systems, Government ..
systems in the work place is a new phenomenon in current times and this is what has sparked my desire to
undertake this study.
According to Maguire and Redman (2006) the development of information systems (IS) is perceived to
be the domain of the technical expert. This is evident particularly when an organization has the wrong systems
in place and if not well managed and this effects the organization negatively. Since technology is not static more
problems are likely to be experienced since complexity increases with time and it can get to a point where it
can become in tolerable thus impacting on the organization heavily.
According to Bhyuiyan (2014), with the new innovations in the recent past, it is important to embress a
real-time information-based, self-service, and interactive work environment. This is to ensure efficiency and
effectiveness in performance of work. Innovation is not only associated with corporate success but is also
perceived to be extremely important for business survival in the ever changing environment (Goyal & Pitt,
2007). Employees are required to have various of technical and interpersonal skills and workplace expertise that
enables them get used to new technological advancements and to increase performance in organizations
(Fernandez, 2001; Combs et al., 2006). Firms are now purchasing and installing sophisticated e-business
Information and Communication Technology (lCT) systems in the work place to enhance efficiency and
effectiveness in service provision (Maguire & Koh,2004). This therefore creates a challenge for each and every
organization to adopt and embrace the new changes in the environment.
Despite being overtaken by industrial innovation theory in the twentieth century, Miles (2000) noted
that “new technology has evolved from a neglected and marginal status to achieving an overwhelming
recognition in terms of further studies due the growing perception of services”. This is as a result of “non-
innovative activities that are superseded by the view that the new changes can play a major role, resulting in
greater desire in service innovations” (Barras, 1986; Sundbo, 1997; Evangelista, 2000; Miles, 2000; Djellal &
Gallouj, 2001; Tether, 2002; Drejer, 2004). This new paradigm has acknowledged the service sector
contribution especially new processes that complements new technology in business sector specifically from a
customer rather than being the driver or innovation agenda (Hertog, 2000).
Rothwell (1992) analyzed historical developments on the evolution of the innovation process models
and further notes that new models have developed in five generations, ranging from a simple linear model to a
more complicated models. “Technology push and market pull”models are the first and second generation
models with simple linear sequential processes. The third generation simultaneous coupling model recognizes
interactions and feedback loops between different elements, while the fourth generation interactive model
combines the technology push and market pull models and emphasizes the external linkages”. “The fifth
generation network model perceives the innovation process as a multi factor process, which requires a lot of
interaction, networking and knowledge”. Despite the fact that the fifth generation models are more complex,
they borrow a leaf from the same basic processes like the past models (Rothwell, 1992; Trott, 2005).
According to Muathe (2010) traditionally, it is alleged that information have been created utilizing the
systems development life cycle (SDLC which is a common procedure for middle-scale and big-scale software
projects, though the utilization of conventional techniques for IS design have not given us a complete assurance
in terms of information systems implementation success (Laudon & Laudon, 2005). It’s believed that IS
development is being carried out by groups who are inexperienced in the relevant fields of trade and
organizational enhancements and this is important for realization of full benefits (Brooke & Maguire, 1998). IS
development is driven by technical objectives of individuals who are technologically savvy but the interests of
the organizations are not put at heart and this is where the problems start from for organization. In this case, the
systems produced are not customized and so once adopted, they need to adjusted or enhanced to suit the needs
of the end user.
HRMS history can be traced from payroll systems in the late 1950s and continued into the 1960s a time
when the first computerized worker data was used (Bhyuiyan, 2014). The researcher noted that between (1960-
1980) which is termed as the legislative era, there was processing employee information to enhance efficiently.
Further he asserts that by 1980’, HRMS systems entailed a number of feature sets and functional capabilities
whose key function was to attract, retain and ensure proper employee compensation. HR departments were
under pressure to apply new technology that was more affordable and effective in terms of costs during low cost
era (1980-1990). This was the key driver that led to the increase in use of systems in the work place.
Both infrastructure and human resources enhance technological capacity of an organization to put in
place HRMIS (Oliveira & Martins, 2010). Organizations with new information system technology are well
positioned to adopt HRMIS than those that have no strong technology infrastructure and IT professionals’
expertise which may fear adopting of HRMIS. Various authors have perceived technological availability as a
huge component that impact IT reception (Kwon and Zmud, 1987; Oliveira and Martins, 2010). Carter and
Belanger (2004) noted that three key aspects for e-Government adoption include; relative advantage, image and
compatibility”. These factors influence the decision of whether to adopt the latest innovation in any given
organization or not to.
Similarly, Teo, (2007) conducted a research in Singapore and discovered that only perceived benefits
and compatibility are key determinants of HRMIS acceptance. He further asserts that Relative advantage is
correlated to profits, reserves and power, expenditure cut downs and so on. Perceived benefit can is referred as
expected paybacks (Troshani, Jerram & Hill 2011). Alongside the two determinants, organization fit,
implementation cost, intricacy or ease of use, efficiency were established as important constructs that affect
government institutions (Troshani et al., 2011).
According to Bhyuiyan (2014), there was an increase in demand for HR departments to adopt computer
technology to process employee information more effectively and efficiently. This trend resulted in an
emergence and increase in the number of vendors who could assist HR departments in automating their
programs in terms of both hardware and software. According to Bhyuiyan (2014), companies in the 21st century
are under pressure to reduce the cost of the production and to be more responsive to the customers. The only key
component towards cost reduction is the use of IT-enabled HRM. This enhances the adoption of HRMIS in the
work place.
Changes in the business environment force companies to reorganize themselves and ensure that they
engage in activities that enhance their competitiveness in the market place (Franks, 2000; Goyal, 2007).
Yang et al. (2007) expressed that implementation to be effected in businesses top administration can
decide despite rejection by junior administrators and staff. Business size, working environment and a talented
workforce are vital determinants of effective advancement technology acceptance (Troshani et al., 2011).
Top management support is important since it has an impact on influencing adoption of HRIS.
According to Teo et al. (2007) strategic managers or directors support towards technology adoption in a
business and workers commitment are key requirements which are affected by the management commitment.
Many researches show that management commitment is of key importance on HRMIS implementation (Teo et
al., 2007; Yang et al., 2007; Troshani et al., 2011). Adoption of IT to HR departments is slow and this has led to
deficiency of HRMIS awareness and expertise lead to low rate of HRIS implementation (Teo et al, 2007).
Successful implementation of HRIS demands accessibility to trained workforce in the firm who can enhance its
growth and adoption in the organization. The professionals have a good understanding of the features of HRIS.
According to Ferguson and Reio (2009), CEOs and business managers need to evaluate their human
resource strategies and practices for them to create and retain a viable workforce that; one that will increase the
likelihood of business success. “Similarly, in a meta-analysis examining 92 studies that included 19,319
organizations, Combs, Liu, Hall and Ketchen (2006) found a positive correlation between HPWP ( High
Performance Work Practices) and both operational (e.g. retention and productivity) and financial (e.g.
accounting or marketing returns) performance”. Many research that link organizations’ human resource
management practices and economic viability in for-profit settings, not much has been done to examine the link
between human resource management practices and performance across firms (Fulmer, Gerhart & Scott 2003).
Ferguson and Reio (2009) tried to address this gap in the literature, and focuses on systems approach to
examine how job performance and firm performance are influenced by human resource inputs (e.g. employee
skills, motivation) and processes (e.g. reward processes, performance management) in a broad range of
organizational types (e.g. manufacturing, governmental). This study will further focus on technology as a
moderating variable.
The evolution of adoption human resource management systems concept can be analyzed from two
perspectives namely academic perspective and management perspectives. In recent years some scholars have
suggested the need for a paradigm shift in the manner in which organizations carry out their activities. (Karakas,
2010; Pirson & Turnbull, 2011; Rynes et al., 2012). This therefore means we need to have proper systems in
place to enhance performance. “Numerous models of innovation have attempted to define and understand
innovation as a process and the possible ways in which it can be managed” (Tidd et al., 2005).
Trott (2005), claims that “there are two schools of thought that divide innovation drives and further
notes the market view where market conditions provide environment that enhances or curtails the innovation
potential of a firm, where issue of importance being a firm’s ability to scan their environment and check for
opportunities in the market place”. Trott (2005) also noted that the resource view is where by an organization
own resources are a determinant for their capacity to innovate and shape the markets.
Current studies have researched HRIS reception determinants in Singapore and Australia (Teo et al.,
2007; Troshani et al., 2011). The above researchers concurred on existence of a deficit of studies on adoption
and suggested the call to further find out the depth influence of the factors affecting adoption of the system. This
therefore creates the need for research on adoption in other countries in relation to performance. According to
Troshani et al. (2011) more research required to assess HRIS adoption in private enterprises since there is no as
research those areas. Thus, the researcher aims to do a literature review on the adoption of HRMIS and its
influence on performance.
HR specialists are interested with managing the various disciplines in the work place and to adequately
utilize their importance on employees and customers’ satisfaction (Goyal, 2007).Organizational effectiveness in
terms of its operations is very essential. Decisions made regarding facilities are key to business decisions. The
business initiative on developing facilities management relies entirely on an understanding of the key potential
of facilities have on creating quality work conditions that enhance key activities (Goyal, 2007).
According to Wahab (2011) some of the benefits of HRMIS are as follows; the establishment of social
network among people; enterprises must optimize computer networks to increase development of human
resource management application system, constantly enhancing its application level and accessibility. ;
enterprises should establish good corporate culture and trust mechanism to enhance employees' participation and
initiative to get involved in enterprise social network and High quality employees often target a certain limited
group of people for frequent contact and communication in enterprise social network.
Hendrickson (2003) notes that HRMIS aids firms in their HR practices by improving competence and
success as well as providing self-service HR. “HRIS provides information as a consequence of data processing
and has user interface applications that can be used to disseminate HR information to employees and functional
units managers (Ruel, Magalhaels & Chiemeke, 2011). Zhang and Wang, (2006) noted that the best way to
operate a business in the current times is through the use of relevant Information Technology (IT) in HRM.
Innovation theory has various definitions which differ adversely .Some of the definitions lay emphasis
on technology and others on services making it hard to differentiate what it really is. (Goyal, 2007a). The study
seeks to achieve the following objectives: To conceptualize the adoption of HRMIS and organization
performance, to analyze the evolution of HRMIS concept, to identify the theories upon which HRMIS and
organization performance are anchored upon, to critically review the empirical studies and identify the inherent
gaps. And to identify the factors that influences the adoption of HRIS
The introduction of a HRMIS software in an institution be regarded as a new practice since it enhances
effectiveness in operational performance.
Barney’s (1991) RBV theory of the firm asserts that “the firm’s structure; human capital that is the
skills, judgment, and level intelligence of the employees; and human resource management systems are key
sources of competitive advantage to an organization”. RBV theory is of the view that HRMS can enhance
competitive advantage through competencies of development and motivation of employees, produce unique
social relationships, are deeply rooted in a firm’s way of doing things, and contribute to organizational
knowledge (Barney, 1991).
Eniola and Entebang (2015) in their study on government policy and performance of small and medium
business management noted that resource- based view theory of the firm is of the view that competitive
advantage emanates from the wealth assets owned by an organization that are of key value in comparison to
those of its competitors. Further research has made significant contribution to its development (Barney, 1996,
Grant 2002).
The theory suggests that sustainable exceptional efficiency and competitive advantage of any
organization is due accumulation and utilization of resources, managerial choices, factor market imperfections
and strategic industry factors (Dharanaj and Beamish, 2003). Company heterogeneity despite the external
ecological dynamics are reflected relatively as more significant factors of performance and competitive
positioning of a business enterprise both in the indigenous and global market place (Barney, 2001, Tseng et al,
2007; Lu et al., 2010; Bartai 2014).
According to Muathe (2010) the behavioral adoption theories are composed of the Theory of Reasoned
Action (TRA), the Technology Acceptance Model (TAM), and the Theory of Planned Behaviour (TPB). Muathe
notes that the models are mostly used models in explaining the IT adoption. TRA was originally proposed by
Fishbein and Ajzen (1975) in based on the assumption that individuals output in regard to a particular behavior
is caused by intentional behavioral intent, which in return determined by attitude and the common norms.
Therefore it’s logical to make assumptions that TRA is related to voluntary behavior (Muathe 2010).
TAM was originally proposed by Davis in 1989 and initially the theory was used to predict user
acceptance of computers but has been adversely used in fields of ICT. The author further notes that TAM relates
more to technology in contrast to TRA which is more general. Variable of employee commitment and
management commitment can be derived from the TAM model, to determine attitude towards technology.
These variables are the perceived usefulness of the technology and the inability to actually use the technology
(Davis, 1989).
According to Pedersen and Nysveen (2003), Anckar et al. (2003), and Venkatesh, Moris and Davis,
(2003) criticized the model by observing that dividing user believes in regard to technology adoption into two
classes tends to overlook other factors like age, sex, experience, and voluntariness that are which are of key
importance in ICT adoption. In addition, Muathe further notes that Manueli, Latu and Koh, (2007) criticizes
TAM is perceived to be less comprehensive in comparison to the diffusion approach which looks at isuues like
time as a key factor of the theory. TAM was also criticized for not considering the effects of personal control
factors on behavior, external factors from the environmental like suppliers, customers and competitors (Manueli
et al., 2007)
The TPB model came into place to support TRA where to cater for instances where individuals control
their behaviour (Ajzen, 1991; Muathe 2010). The model ties to look at factors "behavioural control" to establish
possible behavior where individuals are controlled. Successful performance of behaviour does not rely solely
on favorable intention but on proper level of behavioral control (Muathe 2010). According to Muathe (2010)
TRB and TPB models have not been fully accepted for failing to suggest behavioural attitude and subjective
norms and to some extent behavioural control. Battacherjee (2000) asserts that the TAM model can be
integrated into TPB with perceived usefulness and user friendliness as key causes of behavioural attitude
towards IT adoption. Subjective norms can be assessed by external and interpersonal influence and that the two
constitute components of behavior.
To counter the argument, Vankatesh, Moris and Davis, (2003) tried to put together the various models
of IT acceptance by merging elements of the following eight prominent models: TRA; TAM; motivational
model; TPB; combined TAM-TPB; Model of PC utilization; innovation diffusion theory and social cognitive
theory to form Unified Theory of Acceptance and Use of Technology (UTAUT). According to Muathe (2010)
the model was validated and it was found out to be reliable especially when used to assess user acceptance in
studies involving business organizations and corporations.
Social systems theory was developed by Ludwig (1956) in order to support the theoretical foundation
of Human Resource Management (HRM). Social capital theory explores its impact of HRMIS on enterprise
social capital, thus impelling academic and partition world to pay close attention to HRMIS function of
developing enterprise social capital. It tries to look at the Effect the knowledge creation, technology innovation
and operation performance of enterprises.
According to Midiwo (2015) the social systems model can sensibly be viewed as a specialization of
systems thinking; on the other hand as an objective yield of systems science and systems software development,
with an accentuation on generalization that it is valuable over a wide scope of systems. Midiwo noted that the
SERVQUAL model measures seven service quality dimensions, that is, service quality, system quality,
information quality, user involvement, usefulness, user self-sufficiency, user satisfaction to be more ideal in
assessing the influence of HRIS on performance. Midiwo noted that this can also be assessed by its indicators,
which takes the performance methodology with the first five elements being service provider performance.
Midiwo used the constructs of serviperf like service quality, information quality to measure and draw
conclusions on the performance of employees in public universities in Kenya.
, singular effect and hierarchical effect
Information Systems Success Model was developed by De Lone and McLean (1992) though they did
not empirically test it. The model looked at six viewpoints: system quality, data quality, use behavior, client
satisfaction Use; Individual effect and business effect. According to Midiwo (2015) system quality refers to “the
features of the technological tool in addition to the processing power of the tool, the dynamism provided by the
system, and the quantity of data or resources it can gather.
De Lone and McLean (2003) suggest in their model that “an IS was first developed, bearing containing
many characteristics, which are viewed to show high level of performance. The author further noted “the users
and managers experience these features by using the system and are either satisfied or dissatisfied with the
system or its information products for instance products of HRIS‘e-staffing, e-training, e-payroll and e-
performance management on the expected performance”. The use of the system and its components is important
HRMIS has collective impact result on the organizational performance (Midiwo, 2015). De Lone and McLean
re-established their model by putting together all key aspects i.e. organizational and individual as one
generalized aspect which is advantageous to the organization.
software and the corporate network to automate paper-based personnel-related processes that require a
manager’s approval, record-keeping or input, and processes that support the manager’s job. Shani and Tosani
(2010) outline examples of routine transactions that can be done through the MSS as authorizing pay increases,
managing work schedules, approving vacation time, and travel expenses, as well as enabling employee access to
information. “MSS and ESS create a trend of delegation of responsibilities and activities that were once
considered to be the domain of HR professionals and administrative, directly to employees and managers
(Lengnick-Hall and Moritz, 2003 Shani & Tosani 2010).
Currently HR professionals’ can use can apply HRIS benefits to enterprises though computing training
investment returns, gross revenue, and human-value added (Targowski & Deshpande, 2001; Sani & Trosani
(2010). When the calculations are done and they show a positive HR’s contribution this can be viewed as an
indicator of executive management and this is relevant for achievement of organizational goals (Sani & Trosani
(2010). Empirical studies on human resource information systems have used both qualitative and quantitative
methods though others use both. The approach chosen determines the philosophical foundation system on
relevant to a particular study. Most of the studies on human resource information system reviewed have not
indicated the philosophical foundation upon which the research was based.
Dobson (2002), notes that methodologies that have been adopted are those dominated by the kind of
social theorists. He further suggests that IS studies need to focus on philosophical approaches to epistemology
and ontology and he notes that further Bhaskar’s critical realism is a key approach since it views philosophy as
operating at the same level as methodological issues. He further states that assessment of information systems is
partially determined by political biases and values concerning organization hierarchies, workers’ rights and so
forth (Dobson, 2002).
According to Reio and Furguson (2009) in their research regarding the relationship between human
resource practices and firm performance has been enhanced, there is an increased use of HR systems that lead to
attainment of organizations objectives. The study by Charkraborty and Mansor (2013) utilized secondary source
of data on the determinants of HRIS implementation which have been categorized into three groups which are
business factors, technology context aspects and environmental aspects.
According to Kiarie et al., (2006) and Muathe (2010) they noted that “factors such as the duration of
computer experience and top management participation, enjoyment, and voluntariness had significant influence
on computer use”. According to Ochara, et al., (2008) noted that lT infrastructure and Government had role to
play in influencing lT adoption despite this study ignored other determinants influencing lT adoption like
individual factors, and organization factors. This study plans to research further on these factors.
Lawson and Hepp (2001) carried out a “time-series quasi-experimental study to measure the effect of
human resource practices in relationship to competitive advantage in the banking industry and studied variables
such as employee satisfaction, customer results, and business performance”. Lawson and Hepp came to a
conclusion that human resource practices have a positive and key role on employee commitment, return on
expenses (ROE), return on assets (ROA), and on the bank’s efficiency ratio (ER).
According to Chakraborty and Mansor (2013) noted that qualitative and quantitate types of research
can be employed in innovation studies, though qualitative methods were extensively evident; see for example,
(Carter & Belanger, 2004; Florkowski & Olivas- arry & Olivas- et al., 2004; Teo et al., 2007; Troshani et al.,
2011; Yang, Lee, & Lee, 2007) and these investigations were carried out mostly in Western countries and Asian
Countries apart from those two of Teo et al. (2007) and Yang et al. (2007). Many studies have been done on the
advent of new technology and most have embraced diffusion of innovation theory that was developed by Rogers
in 1995 (Carter & Belanger, 2004; Florkowski & Olivas- arry & Olivas- et al., 2004; Teo et al., 2007).
There was deficiency of an adequate sampling frame therefore respondents were sampled using
multiple sampling techniques. In the context of Pakistan, other researchers noted the inadequacy of a research
culture in the banking sector (Amani Moazzam Baig Mirza & Nasira Jabeen, 2011) and further noted that any
research is perceived to be a “waste of time even by the management” (Nailah Ayub & Karen Jehn, 2010). In
line with the overall culture of sifaarish1 in Pakistan (Islam, 2004), the researcher depended on relied on
networking with those in power to identify the organizations that have adopted HRIS and then negotiated
physical access to the organization.
Lawson and Hepp (2001) carried out a time-series quasi-experimental study to measure the effect of
human resource practices in relationship to competitive advantage in the banking industry and studied variables
such as employee satisfaction, customer results, and business performance. Furguson and Reio (2009) carried
out a cross-sectional research comprising of 350 corporate experts (91 % executives; 9 % specialists) from a
Midwestern US professional firm who acquired a battery of survey procedures through the world-wide web.
Study by Chakrabortya and Mansor (2013), data was obtained from the secondary sources and was
analyzed. Trcek (2006) carried out a study was aimed to establish the determinants of HRIS implementation
therefore expecting to help out businesses to implement HRMIS precisely and successfully”. Trcek used
approach is based on systems dynamics and was done in two phases the first phase utilized two basic qualitative
models were developed, while in the second phase the quantitative models were applied. The study by Muathe
(2010) used cross-sectional descriptive survey design and the data was collected using semi structured
questionnaire and interview schedule.
According to Midiwo (2015) in her study was informed by positivist philosophy and argues that allows
that the researcher to make various assumptions. According to Midiwo (2015) “Positivism belongs to
epistemology which can be specified as the philosophy of knowing, whereas methodology is an approach of
knowing”. Positivism philosophy is of the opinion that only factual knowledge acquired through observation
including measurement is trustworthy. Midiwo further argues that in positivism studies the researcher’s role is
data and interpretation through objective approach and the findings are observable and quantifiable.
According to Ibrahim and Muritala (2015) the effect of government policy on firms can be clarified
from either the political or technical point of view. Ibrahim and Muritala argue that politically government
policies rely on its political record, philosophy, traditions and the kind of government operations by that nation
thus “a Policy in a communist state will vary from that in a democratic state or dominion. Ibrahim and Muritala
further note that policies in a politically stable country will not be the same as that from an unstable country.
The author further note that, for a politically stable government they can take sustained business-
friendly decisions that can strengthen local business and this can be strengthened by a strong opposition. Though
where we have unstable political systems where opposition boycotts parliament and engage in street
demonstrations, businesses are bound to suffer. According to Ibrahim and Muritala (2015) from the technical
perspective, some of the policies that can impact on business directly or indirectly are as follows taxation,
subsidies, interest rates, and exchange rates.
Ibrahim and Muritala (2015) bank Lending rates and the financial policy of a government have a great
impact on its economy. If interest rate high, investment goes down since businessmen would not borrow at high
rates. The government is required to create rules which will form a basis for businesses to be “able to compete
against each other though these rules will change from time to time”. Taxation policy is a key government area
that affects organization performance. For example high tax rate on imported products will discourage
importation but on the other hand enhancing local produce.
According to Eniola and Entebang (2015) the provision of good government policy is a key component
for growth for economies. Eniola and Entebang notes that “performance is constrained by internal factors and
external factors, such as the carrying capacity of the environment, government policy or competition”.
According to Eniola and Entebang noted that the Government can come up with policies that can either enhance
or derail the growth of revolutionary technologies, products, and solutions. Eliona and Entebang further noted
that the Government can prevent “firm performance when it introduces policy which can restrict the autonomy,
as well as the entrepreneurial liberty”.
According to Eliona and Entebang (2015) the results of by (Adejugbe 2013; Nguyen, Alam, Perry, and
Prajogo 2009; Sobri Minai and Lucky 2011) indicate deficiency of “durable, economic process in these
countries prevents the growth of economies, thus the Government should play a key role in creating those
conditions”. There is a clear emphasize that “government policies cause an impression on” organizations
exploitation, organizations close association so as to come up with a combined force that can stop resources
utilization (Harvie Narjoko & Oum., 2010; Okpara, 2011; Eliona & Entebang 2015). According to Eliona and
Entebang (2015) character and span of Government policies have an impact on enterprises.
According to Dessler and Al Ariss (2012); Bartai (2014) urgued that human resource management is
concerned by the “procedures and practices” that entail the human resource issues in the work place. According
to Bartai urgued that recent advancements in technology have made it imperative to make real-time information
based, self - service and interactive work environment .According to Bartai HRIS is believed to be as a
“systematic arrangement of HR practices that enable organizations to attain their goals and be able to align
themselves to the business strategy in place”. This means that HRIS has enhanced and improved organizational
performance (Chowdhury, Yunus, Bhuiyan & Kabir, 2013; Bartai 2014).
According to Usman, Khan, Ikhlaq & Mujtaba (2012); Bartai (2014), the emergence of information
technology in the field of human resource has revolutionized the workplace immensely. Organizational
performance is the ultimate achievement of an organization and entails measures, like the existence of targets to
be attained, has time duration within which to attain the targets and the realization of efficiency and
effectiveness (Gibson et al., 2010). According to Eliona and Entebang (2015) character and span of Government
policies have an impact “on an organization's performance”. According to Ibrahim and Muritala (2015) the
government is required to create rules which will form a basis for businesses to be able to compete against each
other though these rules are bound to change from time to time.
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