Impact Of Hrm Practices On Organizational Performance

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The main purpose of the article is to identify the impact of Human Resource Management (HRM) practices on organizational performance. To understand how, the following specific objectives are considered:
i. Review of strategic HRM and its benefits to the organization. ii. Provision of key insights with regard to the implementation of HRM practices on employee's performance, ability and behavior. iii. Identify package of HRM practices that contribute to better performance. iv. Relationship between HRM practices and organizational performance.
v. Measures that may lead to the improvement of performance.

The article’s domain is to explain how the way an organization manages its HR has a significant relationship with organizational
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One of the reasons for this popularity is the assumption that HRM is a source for competitive advantage and will influence the organisational results and performance in a positive direction. In an environment where HR is an important source of competitive advantage, it is also the one that contributes to sustained competitive advantage through facilitating the development of competencies that are firm specific. Strategic Human Resource Management (SHRM) concerns with the creation of a linkage between the overall strategic aims of business and the HR strategy and implementation. The article takes a closer look at the presumed relationship between HRM and business performance. The main idea behind HRM-performance presumption is that HR practices affect employees’ attitudes and behaviour, which further affects the operational performance, such as productivity, quality and innovation, which in turn have a positive effect on an organization’s overall market for its products and subsequently its financial results. The causal linkage between HR and organizational performance will enable HR managers to design programmes that will bring forth better operational outcomes to attain higher organizational performance. Through specific examples from academic research regarding the impact of SHRM practices on organizational performance, the conclusion is that the way an organization manages its HR has a significant relationship with the organization’s performance. This article reviews the theoretical foundations for a HRM-firm performance relationship and focuses particularly on the potential of a High-Performance Work Systems (HPWS) to serve as an inimitable resource supporting the effective implementation of corporate strategy and the attainment of operational

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