Case Study On Measuring the impact of HRM On Organizational performance

By Alina Dahal Anish Man Singh Basnet Avisekh Kumar Acharya

Introduction
A number of significant steps have been done to identify the HRM-Performance relationship Eg: impact of HRM on organizational performance or HRM performance linkages models It is found that considering the intervening steps in HRM-performance relationships or variable mediating or moderating the end point variable is important

Introduction
Some influencing factors:
performance in relation to contingent factors such as business strategies performance according to the human & social capital held by organization performance in relation to employees ability, motivation & opportunity to participation

Introduction
Efforts were also spent in preparing check lists HRM-outcomes categorized as employeeskills, behavior and attitudes were usually employed sets of mediating variables

Operational Model & Hypothesis

The proposed model: blending insights from the theories of contingency, resourced-based view & AMO into an overall theory of HRM It also hypothesizes that HRM-policies are influenced by business strategies Organizations set of HRM polices will be effective:
If it is consistent with other business strategies suggesting that business strategies are followed by HRM policies in determining business performance

Operational Model & Hypothesis

Hypothesis:
Business strategies influence HRM policies in determining business performance A relationship exists between HRM policies & HRM outcomes Improvements in HRM outcomes mediate the relationship between HRM policies and organizational performances A positive relationship exists between HRM policies & organizational performance

Methodology
Sample:
Large questionnaire survey in 23 industries in Greece manufacturing sector Sample of 600 organizations was used from greece Sample was obtained by using stratified methodology 20% of appropriate 3000 organization were randomly chosen Questionnaire were developed in English and converter to Greek

Methodology
Measures:
Organizational performance variables HRM policies HRM outcomes Business strategies Controls

Methodology
Statistical Analysis
Methodologies of structural equation model or latent variable and maximum likelihood estimation model were used SMEs effectiveness is with analyzing mediating variables & including latent constructs MLE because tests of departure from normality, skewness and kurtosis for all variables were with in limits

Results
The Estimation path diagram for the proposed HRM- performance link framework is presented in the figure below. The box represents exogenous observed variables and circle represents related latent variables. The number assigned show the significant estimated standardized coefficients

Conclusion
HRM policies & organizational performance is partially mediated through HRM outcomes and HRM policies are moderated by business strategies HRM policies should be developed with respect to business strategies they follow

Conclusion
Quality innovation and cost may constitute in a descending order the important aspects of Business strategies Satisfaction, motivation, competence, cooperation may constitute in a descending order the important aspects of HRM outcomes

Conclusion
Organizational performance depends on HRM outcomes (skills, attitudes & behaviors) Participation, involvement, compentation, incentives, work desing etc may constitute in a decending order the important aspects of HRM strategies