The issue of how the human resource management affects organizations performance has always presented in academic world. Many scholars have done a lot of theoretical and field work, trying to prove that the contribution and impact of human resource management on organizational performance. Human resource management provides direction and enhances competitiveness in organization, and becoming a strategic partner in helping companies improves its performance (Ajit Kumar Kar, 2012). However, when it comes to particular issue, evidence suggesting a possible universal consensus are apparently the division of opinions is nowhere in sight.
Human resource management refers to the policies, practices and systems that influence employees’ behavior, attitudes and performance (Robin Kramar et al. 2011). HRM is a multi-faceted concept and built the foundations of organization. It is an organization’s primary source of competition. The HR practices include recruitment, performance management, industrial relationship, job analysis, job design, selection, employee learning and development, pay structure, incentives, and benefits. And the needs of HR include skills, behaviors and culture. (Robin Kramar et al. 2011). The effective HRM make the company obtain and retain necessary talent and improve employees’ engagement, dispose employee crisis and enhancing the competitive positioning of an organization (Julia Christense Hughes, 2008). The relationship between HRM and organization’s performance:
1. Employee satisfaction
Human resource management practices directly affect employee's emotions and satisfaction, thereby affecting the attitudes and behavior of employee, thus affecting the organizational performance (Ahuja, 2012). There are several index could measure employee satisfaction: Employee Assistance Programs, Job Descriptive Index and Job satisfaction. The contents of survey included: paid of work, working partner, working conditions, job security etc. (Australia...
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