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2. Literature review
3. Conceptual Model
5. Factor Analysis
6. Data Analysis & Results
7. Discussion8. Conclusion9. References
AN EMPERICAL STUDY OF THE IMPACT OF HUMAN RESOURCE PRACTISES ON ORGANIZATIONAL PERFORMANCE
The research investigated the effect of different human resource practices such as staffing, training, participation, performance appraisal, compensation, and caring on organizational performance on a manufacturer company. Data were collected from 100 respondents based on structured questionnaire. Results indicated significant relationship of staffing, training, performance appraisal, compensation or rewards, and employee caring with organizational performance. The study found weak relationship of employee involvement & participation with organizational performance. The research suggests that implementing these human resource practices may increase manufacturing firm’s organizational performance radically.
Keywords: Staffing, training, performance appraisals, compensation, organizational performance.
Researchers in the field of strategic human resource management (HRM) have increasingly relied on the resource-based view of the firm to explain the role of human resource practices in firm performance (Wright, Dunford, & Snell, 2001). Indeed, theoretical research on HRM has suggested that systems of HR practices may lead to higher firm performance and be sources of sustained competitive advantage because these systems of practices are often unique, causally ambiguous, and difficult to imitate (Lado & Wilson, 1994). Huselid’s (1995) Ground breaking study demonstrated that a set of HR practices he referred to as High Performance Work Systems (HPWS) were related to turnover, accounting profits, and a firm Market value. The purpose of this study is to provide a more rigorous examination of the causal order in the HR practice – organizational performance relationship. Certainly, the existing research suggests a positive relationship between HR and performance. Other studies have gathered contemporaneous HR practice and performance data. HR practices include conducting job analysis, planning labor needs and recruiting job candidates, selecting job candidates, orienting and training new employees, managing wages and salaries, providing incentives and benefits, appraising performance, communicating, training and developing managers, building employee commitment. These HR functions have a great impact on organizational performance.
2. Literature review:
Organizational performance is usually indicated by indices such as: Effectiveness: if the organization meets its objectives (Dyer & Reeves, 1995; Ostroff & Schmitt, 1993; Rogers & Wright, 1998); Efficiency: if the organization uses the fewest possible resources to meet its objectives (Dyer & Reeves, 1995; Ostroff & Schmitt, 1993; Rogers & Wright, 1998); Development: if the organization is developing in its capacity to meet future opportunities and challenges (Phillips, 1996); Satisfaction: of all participants; stakeholders, employees, and customers (Delaney & Huselid, 1996; Kalleberg & Moody, 1994); Innovation: for products and processes (Guest, 2001); Quality: Percentage of products of high quality (Delaney & Huselid, 1996; Kalleberg & Moody, 1994; MacDuffie, 1995; Richardson & Thompson, 1999). The following variables (HR practises) are discussed to relate with organizational performance:
Staffing is determining what people we should hire; recruiting prospective; employees selecting employees; training and developing employees; setting performance standards; evaluating performance counseling employees; compensating employees (Dessler 2004). Some researchers have suggested that human...
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