Organizational Performance Case Study

788 Words4 Pages
The main purpose of the article is to identify the impact of HRM practices on organizational performance. To understand how, the following specific objectives are considered:
i. Review of strategic HRM and its benefits. 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 a firm manages its HR has a significant relationship with organizational performance. The causal linkage between the two
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Performance Management
HR/line managers should work collaboratively to ensure consistent approach to performance management e.g. how to conduct fair and unbiased staff appraisals, as inconsistencies could negatively impact employee job satisfaction. iv. Conflict Resolution
Workplace conflict happens whenever employees exhibit different cultures, personalities and work styles. A good working relationship between HR/line management facilitates easier handling of investigations(reconciliation) on these differences.

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The reason for this is the belief that it is a source for competitive advantage and has the ability to influence organizational performance in a positive way. In an environment where HRM is a critical source of competitive advantage, it can also contribute to sustained competitive advantage by assisting the development of competencies, unique to a particular organization. Strategic HRM involves in the formation of a presumed link between overall strategic aims of an organization and greater adoption of its HRM strategy and implementation. The main proposition behind this presumption is that HRM practices affect employees’ attitudes and behaviour, which influence the operational performance, such as improving quality, productivity and innovation. Put these together, will create a positive impact on the organization’s overall efficiency and thus, its bottom line. The causal linkage between HRM and organizational performance will help HR managers to design various training and development programmes linked to the needs of the business that will bring forth better operational results. Through examples from many academic researches, the inference is that the way an organization manages its HR has a convincing connection with the organization’s performance. The underlying basis for HRM-firm performance relationship focuses particularly on the
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