TO ASSESS THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE OF INDIAN MANUFACTURING COMPANIES.
Keywords:
Abstract
Rapid globalisation and advancements in information technology have resulted in emergence of modern practices of HRM, collectively known as Strategic HRM practices, which are different in approaches of the traditional HRM practices. Strategic HRM practices are deemed to produce higher employee performance scores compared to that of traditional HRM practices. An exhaustive review of the existing literature on the theme of the study indicates that there exist no studies covering the effects of traditional and strategic HRM practices on employee performance. Therefore, the objective of the present study is expected to contribute towards fulfilling this gap. The aim of this study is to ascertain the impact of strategic human resource management practices on employee performance based in manufacturing industries, compared to that of traditional human resource management practices. Data used for this study were collected from primary sources using a questionnaire. This paper analyses the impact of traditional HRM and strategic HRM practices in employee performance in Indian manufacturing organizations, employing statistical tools like descriptive data analysis, correlation and regression analysis. It has been found that public sector organisation mostly followed traditional HRM practices whereas private sector followed strategic HRM practices mostly due to their organisational structures, and established culture. The corresponding results of the analysis indicates that many of the traditional HRM practices resulted in the low employee performance in public sector whereas strategic HRM practices resulted in high employee performance in private sector. It is therefore suggested that manufacturing companies may take the advantage of high employee performance by restructuring and redefining their organizations’ that allow them to follow strategic HRM practices.
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