Human Resource Management Practices and Organizational Performance in the New Normal: A Relational Analysis

Abstract

In various organizations, most HRM practices are ineffective because they are unimplemented in their genuine sense. The dilemma lies in the very fact that HRM practices in every organization are, to a great extent, responsible for its success or failure. Many scholars have focused on organizational performance since it is regarded as one of the most important variables in achieving efficiency and positive outcomes in businesses. The respective study aims to analyze the effects of HRM practices on organizational performance. This research is qualitative; therefore, content analysis (in general) and relational analysis (in specific) were used, and in this regard, 25 pieces of research encompassing the effect of HRM practices on organizational performance were analyzed. The findings revealed a highly positive relationship between an organization's training and development practices with its performance (financial and non-financial). Moreover, this research recommends that organizations focus more on their training and development practices to enhance performance in the short and long run.

Key Terms in this Chapter

Organizational Culture: It refers to the underlying ideas, assumptions, values, and modes of interaction that contribute to an organization's distinctive social and psychological environment.

Organizational Performance: It is defined as an organization's actual output or outcomes in comparison to its expected outputs (or goals and objectives).

Training and Development: It is described as a system utilized by a business to enhance its employees' abilities and performance.

Leadership: It is the act of directing a group of individuals or an organization.

Management: It is the act of interacting with or exerting control over objects or people.

Work Environment: It is the geographical location, social characteristics, and conditions in which individuals execute their job.