Impact of HRM Practices on Employees’ Efficacy and Engagement

In a rapidly changing competitive environment, human resources (HRs) are one important source of competitive advantage. HR systems can contribute to sustained competitive advantage through facilitating the development of competencies that are firm specific. Strategic human resource management (HRM) is concerned with the creation of a linkage between the overall strategic aims of the business and HR strategy and implementation. This study reports positive statistical relationships between the greater adoption of HR practices and business performance in terms of employee's performance. This study investigated the impact of four HRM practices, namely compensation practices, extensive training, performance evaluation and promotion practices on employee performance in the corporate world. The causal linkage between HR and organisational performance will enable HR managers to design programmes that will bring forth better operational results to attain higher organisational performance.