Impact of human resource management practices on productivity

This paper examines the relationship between Human Resource Management practices and firms’ performance. Recently, the study of the relationship between HRM practices and firms’ performance has shifted from studying individual practices and their influence on organizational performance to studying the entire HRM system and its influence on organizational performance. Different models and theories in HRM literature exist that tries to explain this relationship. Measures of performance as the dependent variable vary as identified by different authors. They fall generally into two categories, that is financial and non financial measures. Divergent opinion exists as what constitutes HRM practices as linked with performance in various studies. Contribution of synergetic relationship among HRM practices to organizational performance, need to be explored and measures generated. Finally the paper develops a conceptual framework that links Human Resource Management practices and firms performance.