Analyzing HR Outcomes: Organization and Employee Performance Impact

This essay delves into the critical relationship between Human Resource (HR) outcomes and their impact on both organizational and employee performance. It emphasizes the importance of the mutual gains model, highlighting how effective HR practices should benefit both individuals and the organization, moving beyond a singular focus on performance improvement. The essay explores key HR outcomes, including attitude, behavior, and skills, and how they mediate organizational performance. Attitude is characterized by motivation, commitment, and satisfaction; behavior by presence, retention, and organizational citizenship; and skills by competence, innovation, and knowledge. The essay also discusses the dimensions of mutuality, including capability, commitment, and contribution matching. The core argument is that organizations should prioritize HR practices that cultivate positive attitudes, enhance skills, and promote desirable behaviors to drive overall business performance. By adopting the mediation model, organizations can create a more supportive and productive environment for their employees, leading to improved business outcomes.

HR Outcomes 1
HR OUTCOMES INFLUENCING ORGANISATION AND EMPLOYEE PERFORMANCE
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HR Outcomes 2
HR Outcomes Influencing Organisation and Employee Performance
The mutual gains model by David Guest emphasizes that Human Resource Management
should benefit both individuals and organizations. Most HR models have put their focus on
performance improvement without considering the concerns of employees. This affects
performance of overall business across various organizations (Guest 2017, p.22). Employees
whose concerns are not met cannot perform at their maximum.
According to Katour & Budhwar (2017, p.43), most researchers have been concentrating
on the skills, attitudes and behavior of employees. Hr practice does not necessarily lead to
organizational performance. However, they influence the workforce by enhancing skills,
attitude and behavior which are the outcomes leading to perfomance. This whole process is
referred to as mediation and is exhibited through the mediation model or general causal model.
Attitude is a human resource outcome characterized by workforce motivation,
commitment and satisfaction. A motivated workforce has a positive attitude and this greatly
influences the performance of the business. Employees, who are motivated, love their work
and are willing to put in extra hours to make sure that the business succeeds. Employees who
have a great attitude are also committed to the organization and this reduces the turnover rate
for an organization. A business, which does not have a high staff turnover rate, focuses on its
core business and this enhances performance. Staff satisfaction leads to positive relationships
in the workplace (Katour & Budhwar 2016, p. 7). Due to this, teamwork is enhanced and the
business is able to perform well due to concerted team efforts.
Behaviour is a human resource outcome characterized by staff presence, staff retention
and organizational citizenship behavior. The practices of an organization will lead to positive
behavior by employees hence ensuring their presence whenever they are needed by the
company. This means that whenever a new strategy is being implemented by the business,
employees are supportive and always present hence enabling strategic objectives to be met by
the business. Staff retention leads to a stable organization and this enhances business
performance because the employees understand the organization well and do whatever they
can to ensure success of business. Organizational citizenship behavior means employees are
loyal to the organization (Katour & Budhwar 2017, p. 44). They do their part in ensuring that the
business performs.
Skill is a human resource outcomes are characterized by staff competence, staff
innovation and staff knowledge. Employees, who are competent, enable business perfomance
as tasks are done correctly and the number of errors is generally reduced. Skilled workers are
innovative as they come up with more creative ways, which enable a business to have efficient
and effective processes (Katour & Budhwar 2016, p.7). Skill also means that employees are

HR Outcomes 3
knowledgeable hence they are able to give great customer service which leads to retention and
business growth.
To benefit both the individual and organization, three dimensions of mutuality have also
been outlined. The first is capability matching, where an organization’s requirements for a
competent workforce and individual need for positivity in the work environment is balanced.
The second is a commitment match that balances an organization’s need for its staff to
demonstrate commitment against staff need for job security and fair treatment. Thirdly, there
is a contribution match where the individual and organization feel that their needs are met
(Guest 2017, p. 44).This leads to positive exchange and ensures that there are mutual gains.
Overall, organizations should focus on HR practices that will lead to the outcomes of
attitude, skills and behavior, which will then lead to business perfomance. Organizations should
change their attitude of focusing only employee performance and failing to look at the
underlying factors that lead to this performance. Adopting the mediation model is therefore a
positive step for any organization that wants to enhance its perfomance.

HR Outcomes 4
Bibliography
Guest, D., 2016. ‘Promoting well-being needs a different approach to human resource
management’, in Baczor, L. (ed.) in moving the employee well-being agenda forward, London:
CIPD, pp. 6-7.
Guest, D.E., 2017. Human resource management and employee well‐being: towards a new
analytic framework. Human Resource Management Journal, 27(1), pp.22-38.
Katou, A. and Budhwar, P., 2017. ‘HRM and Firm Performance’, in Crawshaw, J, Budhwar, P. and
Davis, A. (eds.) in Human Resource Management, Strategic and International Perspectives.
2ndedn. London: Sage, pp. 34-57