Effect of Human Resource Management on Organizational Performance

This report analyzes the impact of Human Resource Management (HRM) on organizational performance, based on an article focusing on the relationship between HRM practices and business outcomes. The study examines the correlation between HRM and key performance indicators, including employee turnover, financial performance, and market performance. The analysis utilizes hierarchical regression analysis to determine the influence of various factors on organizational performance. The report highlights that specific HRM practices, such as commitment HRM, positively impact production levels and reduce turnover rates. However, the report also notes that some studies indicate a negative correlation between financial performance and training. The report concludes by emphasizing the importance of tailoring HRM strategies to organizational needs and the critical role of compensation in employee retention and performance, recommending the integration of traditional personnel functions like job design, recruitment, and training.

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EFFECT OF HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL
PERFOMANCE
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The study was based on the article titled “the effect on organizational performance by human
resource management” and summarizes the impact of human resource management on the performance of
an organization
According to the findings of the article, there is a positive correlation between the organizational
performance and the human resource management. The type of the result however is dependent on the
type of the human resource management undertaken. The adoption of commitment HRM could result into
increase in the production level, lower employee turnover and low failure rates of the manufacturing firm.
However, studies of other empirical research indicated that there exists a negative correlation between
financial performance and training in an organization. Furthermore, the contingency perspective indicated
that the performance of human resource is affected by the organizational strategies.
A questionnaire was developed to establish the relationship among market performance,
employee output performances, financial performance, and organizational performance. Through the use
of hierarchical regression analysis, the general results indicated that, of the three enterprise features
variables, one had minimal influence on organizational performance. However, the HRM practices
indicated a positive match among the four variables in the performance of an organization. In short, there
existed a highly positive influence of organizational performance by the HRM
The article therefore recommended that distinctions in human resource should be adopted
depending on the strategies implemented as well as the development stage of the organization and the
compensation of human resource should be at the forefront as it determines both employee turnover and
performance. It also recommends the consideration of traditional personnel function among which
included the job design, recruitment, and training.