Analyzing the Impact of Human Resource Management on Performance

This report delves into the critical relationship between Human Resource Management (HRM) and organizational performance. It examines how HRM practices, including training programs and incentive structures, influence employee behavior, motivation, and overall business outcomes. The research investigates the impact of HRM on key performance indicators such as quality, productivity, and innovation. Through literature review, survey data, and employee interviews, the study analyzes the correlation between HRM strategies and organizational success. The report explores the effects of various HRM components, assessing their contribution to employee satisfaction, turnover rates, and the achievement of strategic organizational goals. The findings highlight the importance of strategic HRM in fostering a positive work environment and driving business growth in the global market. The conclusion emphasizes the need for organizations to effectively manage their HRM functions to enhance their competitive advantage and achieve sustainable success.

Running Head : MANAGEMENT
MANAGAMENT
University Name
Students Name

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Abstract
Human resource management is extremely popular throughout the past and the current standard
characteristics for larger firms. This research aims in a more in-depth analysis considering the
probable connection for relationship among HRM and performance of organisation. The thesis
resumes the human resource practices have an sequel over the behaviour and attitude of
employees and also over the operational performances like quality, productivity and innovation.
In the light of several literatures this research conducts Earth aura analysis with the help of
survey and interview of the employees of an organisation. Research furthermore discusses the
responses in the light of research hypothesis.

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Table of Contents
Introduction......................................................................................................................................4
Background of the study..............................................................................................................4
Rationale of the research.............................................................................................................4
Research aim and objectives........................................................................................................5
Research questions.......................................................................................................................5
Research hypothesis.....................................................................................................................5
Review of literature.........................................................................................................................5
Human resource management practices......................................................................................5
The incentive practices................................................................................................................6
Training programs.......................................................................................................................7
Organisational performances in strategic human resource management.....................................7
Methodology....................................................................................................................................8
Findings and analysis.......................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Background of the study
One of the major norm for most of the organisation has been a rapidly changing economic
development that has been characterized by globalisation and market de-regulaton together with
demands of the investors, customer and competition related to product market (Cascio, W. F.
(2015). To compete in the market organisations need to improve their performances by
innovating products, reduction of cost and improvement of productivity and quality to speed up
in the market.
Rationale of the research
The research sheds light on how human resource management together with decisions influences
and organisational performances in the simplest way by either improving their efficiency or
contribution towards the growth of the revenue of organisation (Gentry, R. J., & Shen, W.
(2013). Human resource management has undergone a rapid evaluation. It is basically a system,
practices and strategies that impacts the performance of employees in an organisation. The
application of human resource management includes training, acquiring and development
together with compensating employees with health benefits and fairness concerns (Alfes, K.,
Shantz, A. D., Truss, C., & Soane, E. C. (2013). The practices of human resource management
can impact the turnover rate of the employees, there levels of satisfaction towards employment
and their commitment towards the organisation. The organisational performances on the other
hand refers to the monetary profitability, growth and turnover rates of employees (Kehoe, R. R.,
& Wright, P. M. (2013). In the current era many of the organisation have insisted towards the
implementation of different performance increasing human resource management operation for
increasing the efficiency of the organisation to compete in the global marketplace. According to

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the researches it has been claimed that there lies beneficial effect of human resource management
methods over the achievement of an organisation. Some of the major alteration are currently
implementing in the global market (Jerome, N. (2013). The globe has been non conventionally
moving far from the situations where several economy has been related in accessible from one to
another and have been mutually dependent in the global system. This has happened according to
the observation regarding a rapid advancement of the overall scenario that impacted and also
correlated with the practices of human resource management. The study of research aims to
highlight the probable connection or relation among HRM and the performance of an
organisation in the global market.
Research aim and objectives
The objectives of the research study can be described as following.
1. To examine the impact of practices of human resource over the performance of
organisation
2. To examine the effect of training programs by human resource management over the
effectiveness of the performance of employees in organisation
3. To examine the impact of incentive practices over the organisational performance.
Research questions
RQ1 what is the role of human resource management in the performance of an organisation?
RQ2 what is the impact of the training programs by the human resource management towards the
effectiveness of employee performance in organisation?
RQ3 what is the impact of incentive practices what the performance of organisation?

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Research hypothesis
H0 human resource management has an impact over the performance of an organisation
H1 human resource management does not have an impact over the performance of an
organisation.
Review of literature
Human resource management practices
Choosing the correct employee within the correct time also within the correct place is very much
impoortant for the survival and success of an organisation. The research highlights how
organisations choose the personal on the basis of their competitive advantages. The human
resource management concept it is basically used within the current decade . On the previous
time, it was known as the management of personnel (Noe, R. A., Hollenbeck, J. R., Gerhart, B.,
& Wright, P. M. (2017). The research studies clarifies the variation among the management of
personnel and human resource management by declaring they focus upon resource management
of an organisation. The study further more uses specific human resource management methods
that includes development, training and sharing of information together with observing of
research that affects the entire system of human resource management methods and the output of
an organisation.
According to the research study by Hamid M, Maheen S, Cheem A, Yaseen R (2017), the overall
objective of an organisation is towards the excelling of the organizational performance. The
target of the research is to investigate the presentation of an organisation of 200 + employees of
Mobilink franchise situated in Sargodha City. Towards the analysis of the data in the study the
descriptive statistics where used. SPSS software is used for the analysis of the data (Ahammad,

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M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). The research study by the author shows
the highest level of compensation management, employee development practices and
organisational citizen behaviour as where leading to higher level of performance of organisation.
This further more indicated that organisational citizenship behaviour is positively connected with
the performance of organisation (Delaney, J. T., & Huselid, M. A. (1996). The research study
concludes that there lies a significant relation among the independent and dependent variables
hence the null hypothesis was rejected. The weakness of the article lies on the fact that there lies
some areas that needed more development in the future that includes the study regarding
manufacturing firms where the employee structure and the organisational performance differ
from the mainstream business organisation.
The performance of incentives
The capacity of incentives has widened in the current era considerable. According to the research
study the authors have conducted research that , a strong impact lies over the incentive
management over the risk taking that overall enhances the performance of an organisation
(Paillé, P., Chen, Y., Boiral, O., & Jin, J. (2014). The effect of incentive over the behaviour of
the employees has also been well explained in the research. According to the authors, incentives
might also be in monetary word forms or some other types of compensation together with
additional benefits like bonuses and rewards to the employees.one of the major strength of the
research study is that it have explains that employee performance can be improved through
various of incentive plans by human resource management which are further more demonstrated
by innovative work (Bailey, T, Berg, P and Sandy, C (2001). Incentives are usually used to
motivate employees and employee performances for increasing the productivity and enhance the
profitability of the organisation in the global market. According to the study, motivation is one of

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the important factor that highlights the human resource management and the performance of an
organisation. Studies illustrates that human attitude is examined by social acceptance and
economic gains.
Training programs
Training programs has an important role over the output where both the manager and the worker
shares the benefits from the training programs (Messersmith, J. G., & Wales, W. J. (2013).
Research studies examine that generalisation of training towards output of organisation exposed
that on job training programs does not actually improve the performance of organisation where is
off the job training programs improve the profitability.one of the major challenges that the
human resource management faces is the training programs of the employees (Morgeson, F. P.,
Aguinis, H., Waldman, D. A., & Siegel, D. S. (2013). According to the study human resource
management program of training which are beneficial for success and growth of an
organisational strategy which help the organisation for competing with all the alteration in the
upcoming future.
Organisational performances in strategic human resource management
According to the research study the pattern of plant human resource deployments and actions
intense to enable the organisation to achieve towards goals. There lies considerable evidences
and attempts for testing strategic human resource management propositions and their
contribution to the financial performance of an organisation (Rogg, K L, Schmidt, D L, Shull C
and Schmitt, N (2001). The authors of the study propose 4 of the possible categories of
measurement for the organisational performance and efficiency.
1. Human resource outcomes that includes job satisfaction, rate of turnovers and
absenteeism.

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2. Accounting of finances outcomes that includes profitability and ROA
3. Outcomes of organisation that includes quality, productivity and services
4. Outcomes of capital market that includes growth, stock prices and returns.
According to the results of the research studies the human resource strategies tends to directly
affect the outcomes of human resource following financial, organisational and outcomes of
capital market.
Methodology
For analysis and development of a study in details, research philosophy is important. The current
research study has used positivism research for investigating the issues and the challenges in a
logical and critical manner.
Among the analytical, explanatory and exploratory research designs, this research study has used
descriptive or analytical research design to gain a varied and detailed Idea regarding the existing
concepts and theories of study.
this particular study depends on the collection of primary data from the employees of the
organisation in United States and also from secondary sources that is peer reviewed journals and
news articles (Birasnav, M. (2014). The primary data has mostly been collected by the means of
various sources like interview and survey with the help of questionnaires.
The sampling technique that has been used for this research include both probability and
nonprobability sampling techniques. Around 12 employees of an eminent organisation of United
States has been asked to participate in the survey which includes three managers of organisation
for presenting their point of view regarding the importance of human resource management
practice.

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Findings and analysis
Most of the employees and the respondents agreed
Most of the participants of survey agreed over the positive effect of HRM trainings

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The organization needs to take steps over the dissatisfaction of the employees towards their pay
scale
Most agreed how incentives are the tool for motivation at work

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Most respondents agreed how appraisals improve organizational performances
Majority likes their organization for employment

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Positive response from respondents
Mixed response highlighting organization to take strategic actions

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Mixed response explaining that the organization needs to work on it.
Conclusion
Does the extend research study concludes and recommends that human resource management
systems has considerable economic potential and impact over the organisational performance.
There appears to be some of the best practices in the strategic human resource system
management towards the growth and profitability of an organisation. It is thus important for the
firm to evaluate effectively regarding the outsourcing decisions of the accountability of human
resource. The formation of the strategic capacity for the human resource management, the
function together with the traditional disciplines of human resource are within the crossroads.
The human resource management functional managers must take advantage of the opportunity
and help organisation to grow in the global market. The leadership of the strategic human
resource management role in the organisation is shown within the race for the intellectual
leadership and partnership of the emerging area. The purpose of the current study has been to

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empirically examine the impact of human resource management over the performance of the
company. The results of the survey showed that the effect of employee development and the
behaviour of organisational citizenship and important factor to increase the productivity of the
employees which in the longer run will enhance and influence the organisational effectiveness to
cope up in the international market and earn revenue. However there are some of the areas that
requires more development and there is the need to conduct for the research that includes more
variables that is the financial performance of the company and other challenges faced by the
employees in the organisation which disrupts organisational performance overall.

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References
Ahammad, M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). Knowledge transfer and cross-
border acquisition performance: The impact of cultural distance and employee
retention. International business review, 25(1), 66-75.
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. The international journal of human resource management, 24(2), 330-
351.
Bailey, T, Berg, P and Sandy, C (2001) The effect of high performance work practices on
employee earnings in the steel, apparel and medical electronics and imaging industries,
Industrial and Labor Relations Review, 54 (2A), pp 525–43
Birasnav, M. (2014). Knowledge management and organizational performance in the service
industry: The role of transformational leadership beyond the effects of transactional
leadership. Journal of business research, 67(8), 1622-1629.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices
on perceptions of organizational performance. Academy of Management journal, 39(4),
949-969.
Gentry, R. J., & Shen, W. (2013). The impacts of performance relative to analyst forecasts and
analyst coverage on firm R&D intensity. Strategic Management Journal, 34(1), 121-130.

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Hamid M, Maheen S, Cheem A, Yaseen R (2017) Impact of Human Resource Management on
Organizational Performance. J Account Mark 6: 213. doi:10.4172/2168-9601.1000213
Jerome, N. (2013). Application of the Maslow’s hierarchy of need theory; impacts and
implications on organizational culture, human resource and employee’s
performance. International Journal of Business and Management Invention, 2(3), 39-45.
Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management, 39(2), 366-391.
Messersmith, J. G., & Wales, W. J. (2013). Entrepreneurial orientation and performance in
young firms: The role of human resource management. International Small Business
Journal, 31(2), 115-136.
Morgeson, F. P., Aguinis, H., Waldman, D. A., & Siegel, D. S. (2013). Extending corporate
social responsibility research to the human resource management and organizational
behavior domains: A look to the future. Personnel Psychology, 66(4), 805-824.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Paillé, P., Chen, Y., Boiral, O., & Jin, J. (2014). The impact of human resource management on
environmental performance: An employee-level study. Journal of Business
Ethics, 121(3), 451-466.

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Rogg, K L, Schmidt, D L, Shull C and Schmitt, N (2001) Human resource practices,
organizational climate, and customer satisfaction, Journal of Management, 27 (4), pp
431–49

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Questionnaire
1. Our organization places the right person in the right job.
2. Does training provided by HRM helps to work?
3. The pay we receive is competitive compared to that of employees doing similar work in
other organizations.
4. Incentives are good and helps to motivate to work
5. Performance appraisal in our organization aims at improving employee performance and
strengthening our job skills.
6. Our organization is a recommendable place to work.
7. Our organization does not ignore complaints from its employees.
8. Most of my co-employees would perform their duty sincerely even if supervisor is not
around.
9. We are assigned challenging jobs to charge our enthusiasm and develop our skills - Is this
acceptable?