Positive Relationship Between Human Resource Management And Organizational Performance

Introduction

The mediating mechanisms that explain the positive relationship between HR and organisational performance have been considered a black box. This is because the factors and processes that account for the link between the two have either not been completely unraveled or readily understood. Boselie, Dietz and Boon (2005) indicated that theoretical support for the relationship between Human Resource Management and organisational performance included the contingent framework by (Schuler & Jackson, 1987), the resource-based view by (Barney, 1991) and the AMO theory by (Appelbaum, Bailey, Berg, & Kalleberg, 2000).

Over the past years, several attempts have been made by Human Resource Professionals to bring these mediating mechanisms to

Organisations’ set of HRM policies will only be effective if it is consistent with other business strategies. Gomes-Mejia & Balkin, 1992, suggested that business strategies are followed by HRM policies in determining business performance (contingency perspective). For instance, if an organisation decides to choose any of Porter’s (1985) generic business strategies which include cost reduction, differentiation and focus as an organisational strategy, the human resource management must put measures in place to support the bigger goal before these strategies can yield positive results. It is therefore right to assert that business strategies influence HRM policies in determining business performance. According to the Resource-based view (Barney, 1991), HRM policies play an important role in building an organisation’s human resources by developing its unique internal resources. Nevertheless, strategic fit and integration are ends that actually lead HR into achieving high

(2004) see Strategy as a game plan which an organisation’s management adopts to stake out market position, attract competent employees, compete successfully, conduct operations and achieve organisational goals. Strategy can therefore be viewed as a means by which a particular goal of an individual or organisation is attained. This implies that for any organisation to achieve its goals there is the need to devise appropriate Strategic plans. Lewis (2008) argued that Strategy is an indispensable tool for an organisation’s success. Strategy also enables an organisation to initiate and implement activities that gives it power over its own destiny (Adegbuyi et al., 2015; Fadeyi et al., 2015; Maduenyi et al., 2015). The overall business strategy of an organisation is a factor which mediates between HR and organisational performance. Long et al. (2012b) defined Strategy as long-term action plans for interacting with the environment in order to achieve long-term goals. It would therefore not be out of place to deem strategy as the means through which a particular objective can be achieved. In 2012 when Beckwith International Leadership Development (BILD) Programme first came to Ghana, their main goal was to impact leadership skills into the youth through sports. The main strategy for realising this goal was to get the Ministry of Education, Ministry of Youth and Sports, Management of the various Universities in Ghana and other stakeholders to buy into the project’s