The Relationship Between Hrm Practices And Organisational Performance

Decent Essays

There is now a growing importance shown to the role that employees play in an organisation, as people, if managed well, can be a vital asset in helping to achieve organisational goals. People form the majority part and are essentially one of the key resources that aids the organisation in achieving its success. Inarguably, organisations would never be able to operate, yet alone flourish, without human resource. It is therefore imperative for organisations to put in place a comprehensive system that will exploit the knowledge, skills and abilities of employees to their benefit. This system is widely regarded as the Human Resource Management (HRM) system. Boxall and Purcell (2003) suggests that a comprehensive and synergised HRM system plays an important role in providing sustainable competitive advantage for an organisation by enhancing organisational performance. Indeed, many literature reviews and past research done investigating the relationship between HRM practices and organisational performance show that firms who utilise HRM practices do generate a higher level of performance. More so, some studies indicate that there are specific HRM practices that are evidently more efficient than others, giving name to be ‘best practices’. This brings about the notion of the Universalist theoretical perspective, which identifies a set of HRM policies and practices that is universally associated with improved performance for all types of organisations and all types of employees

Get Access