Impact Of Human Resource Management On Organizational Performance

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Impact of Human Resource Management practices on Organizational performance has been an extensively researched area. Many papers have been studied and written indicating that bundles of Human Resource practices have significant impact on an organization’s performance, but, here this paper is focusing on the impact of effectively implemented Human Resource Management practices on organizational performance. Human resources are considered to be the source of sustained competitive advantages for organization (Lado A. A. & Wilson, 1994).

1.1. Statement of the problem:
The need of conducting this study is to see the impact of Strategic Human Resource Management effectiveness on the performance of organizations from the IT Sector Lahore.

1.2. Literature
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Assumption to the firm performance is subjective to the set of SHRM practices that the firm has in place and this assumption is supported by the recent empirical evidences (Arthur, 1994; Cutcher-Gershenfeld, 1991; Huselid.1995; Huselid & Becker, 1996; MacDuffie, 1995). On the contrary, the empirical research done earlier, argues that the relationship among SHRM practices and policies and firm performance, made less distinction among practices and policies that reflect the more technical, personnel and traditional perspective and the ones that reflect the adoption of the SHRM perspective. Furthermore, previous research has not considered the types of skills of human resources staffs linked with the effective implementation of these two types of HRM practices and…show more content…
For each set and bundle of Strategic human resource management practices, we describe the practices and make the arguments for their combined effects on organizational performance. Becker and Huselid (2006) observed and explained that the very field of strategic human resource management has been enjoying a notable power in the past two decades. Its theoretical underpinnings are stemmed from the resource-based view of the firm which was introduced by (Barney in 2001, Harvey in 2001 and Wright & McMahan in 1992). Lado and Wilson also proposed that the strategic human resource practices contribute abundantly to achieve the sustained competitive advantage of the firm by enabling the development of knowledge that is embedded in the firm’s culture and history and, by virtue of this context-specificity, is largely inimitable(Birdi, Clegg, Patterson, Robinson, Stride, & Wall, 2008).Organizational behavior perspective proposes that Strategic Human Resource practices are crucial for developing individual knowledge and skills, and employee attitudes and behaviors as well. If effects of these practices are prevalent and consistent in
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