A REVIEW ON HUMAN RESOURCE MANAGEMENT AND PERFORMANCE

An increasing amount of research suggests a link exists between superior efficiency or high commitment human resource management (HRM) practices and different metrics of organizational performance. However, the reason for this connection remains unknown. This article argues that we need to enhance our conceptual and analytical frameworks in three main areas in order to offer a compelling explanation for this relationship. The nature of HRM, particularly the reason for the specie lists of Hrm activities; the nature of organizational effectiveness; and the connection between Organizational culture and performance are the topics covered. A model is provided within which these connections may be investigated. In light of this approach, the current literature on HRM and performance is evaluated in order to identify significant knowledge gaps and assist to concentrate research objectives. The purpose of this article is to identify and answer a number of theoretical and operational problems related to HR systems. In theory, HR systems should influence (1) knowledge of employees, skill sets, and qualities, (2) employee motivation and hard work, and (3) possibilities for employees to contribute by trying to influence.