HRM's Impact: Analyzing Best Practices and Organizational Performance

This essay analyzes the relationship between Human Resource Management (HRM) practices and organizational performance, addressing the debate around the direct causality between high-commitment HRM and improved performance. It examines the influence of HR best practices on organizational outcomes, including employee motivation and engagement, and provides examples such as Amazon, highlighting how leadership approaches and technological innovations can impact HRM strategies. The essay discusses the challenges in establishing a linear relationship and the role of contextual factors. The essay draws on research to support the analysis and extends the discussion into relevant areas, offering a comprehensive overview of HRM's impact on organizational success. The essay explores the complexities and contradictions in the linkage between HRM practices and organizational performance.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
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Organizational performance and the application of the best practices are often referred to as the two
factors that are correlated. According to Mehmood et al. (2017), the active engagement of the employees in
an organizational process results to improvement in the overall performance of the organizations. However,
Otoo (2019)observed that no study or actual organization could derivate the linkage between the HR best
practices and the organizational performances. Therefore, the discussion will take the initiative of analyzing
the likeness of HR best practices in influencing the organizational performance.
Logically, the application of the HR best practices in the organizational operations indicted the
motivation among the employees which empowered the active engagement of the same in the different
processes. Sabiu, Mei and Joarder (2016) stated that practices like incentivizing the employees and
providing the same with a positive workplace environment allows an organization in increasing the
efficiency of the business operations. In this relation, the absence of incentivizing and negative workforce
culture has affected the capability of Amazon in retaini8ng the employees. However, Chieng, Arokiasamy
and Kassim (2019) stated that most organizations without efficient application of the HR best practices have
improved their operational efficiency through substituting the human workforce with machines. In this
connection, it has been observed that even though Amazon did not encounter any challenges even through it
did not consider implementing sufficient amount of HR best practices in the processes and failed to retain the
commitment of the employees.
The key aspects of change in the organizational operations are based on the active engagement of the
employees. Most of the researches have taken the initiative of proving the positive correlation between the
elements organizational performance and HR best practice or motivation of the employees. In the context of
technological innovation and automation of the different manual processes, the development in the
organizations is not restricted by the involvement of the employees. In certain aspects, the organizations still
take the initiative of retaining the skilled workforce with the purpose of backing and controlling the overall
existing processes. Again, in most cases, the organizations take the initiative of prioritizing high end HRM
practices towards resource efficacy with the purpose of improving the rate of organizational performance.

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The key aspects of change in the organizational operations are reliant on the eff9iciency of the business
operations as per the needs of the venture. However, in the case of Amazon, Jeff Bezos prioritized
technological innovation more than that of making investment on the HR best practices while reflecting a
healthy growth in the productivity of the organization. The contradictions in the concept are specifically
based on the approach of leadership and the corporate objectives.
Therefore, from the above discussion it might be stated that most organizations consider the linkage
between HR committed practices and the increasing organizational performance. The rationality of the HR
best practices are reliant towards empowering motivation among the employees and encouraging active
engagement among the same. However, the induction of specific changes in the leadership approach has
significantly modified the HR management approach in the organizations, which is specifically observed in
the case of Amazon.

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References
Chieng, H.P., Arokiasamy, L. and Kassim, K.A.A., 2019. Human Resource Management Practices and Their
Impact on Construction Organizational Performance. Global Business and Management Research, 11(1),
pp.392-406.
Mehmood, M., Awais, M., Afzal, M.M., Shahzadi, I. and Khalid, U., 2017. The Impact of Human Resource
Management Practices on Organizational Performance,“. International Journal of Engineering and
Information Systems, 1(9).
Otoo, F.N.K., 2019. Human resource management (HRM) practices and organizational
performance. Employee Relations: The International Journal.
Sabiu, M.S., Mei, T.S. and Joarder, M.H.R., 2016. Moderating role of ethical climates on HRM practices and
organizational performance: A proposed conceptual model. Mediterranean Journal of Social Sciences, 7(1),
p.291.