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Significance of Human Resource Management Practices to Business Strategy


Discuss about the Human Resource Management Impact on the Performance of an Organization.

Human resource management practises are the organizational established policies, procedures and practices that impact the well-being, perception, and performance of employees (Armstrong, 2010). This proposal aims at examining the human resource management practices impacts on the performance of the organization. The significant HRM practices to the successful strategy of a business include recruitment, selection, training and development, reward and employee relations (Katou, 2008). This proposal discusses in details the HRM practices, their significance and contribution to the success of the organization.  According to Ahmad,& Schroeder (2003) an organization whose HRM is useful results to the satisfaction of both employees and customers, increased production and enjoys a good reputation with the society.  Boxall, Purcell (2008) asserts that the key indicator on whether an organization is achieving its objective or not is the organizational performance (OP).  Based on (Delaney and Huselid, 1996) organizational performance deals with the quality and improvement of products or services, the co-existence of employee and employer, attraction and retention of employees and customer contentment. Furthermore, the elements of HRM ensure that the organization thrives in the competitive market due to the valuable qualities of labour capital thus making HRM significant in the success of the business (Noe et al., 2003).

Do the Human Resource Management Practices affect the organizational performance?

Statement of the Problem

This project’s  purpose is to examine whether the hrm practices affect the performance of the organization and to ascertain and discuss the significance of the various elements of the HRM and how they impact the organizational performance.

Significance and Justification of the Study

The importance of the human resource cannot be over emphasized. Some of the reputable organizations have the HRM department wholly singled out to manage and recruit professionals for the business. However, most organizations are yet to appreciate the impact of HRM and the ineffective organizational policies and procedures of most of such organizations can be due to the absence of Human resource management professionals or office. Undeniable evidence based on research shows a close relationship between the HRM practices and the performance of the organization (Kiendi, 2012). The problem is as a result of the neglect by organizations do not value the importance of proper management of the HR policies and thus end up leaving them to the line managers who do not have the HRM expertise to adopt and supervise the HR policies, procedures, programs, and practices.

Organizational Performance as a Key Indicator of Success

The Human Resource Management is a very critical department in any organization. The manner in which the management of the employees and customers is conducted determines the success of the business. This efficient management necessitates skilled workforce. Many companies provide same quality or services, and therefore for customers to become loyal and be retained, organizations must distinguish themselves by gaining competitive advantages through proper management of the HRM practices. With time the organizations that will survive in the market will have to invest in customer satisfaction, and consequently, businesses must begin to work out ways on how to articulate their services or products in a sound, reliable, friendly and innovative manner. Therefore, it is for this reason that this project seeks to examine the HRM impacts on organizational performance by underscoring the importance of specific human resource practices.

Research Questions

  1. How does recruitment and selection positively affect the performance of the organization?
  2. Hoe does training and development positively affect organizational performance?
  3. What are the Positive impacts of performance appraisal on the performance of the organization?
  4. How does compensation positively influence the performance of the organization?
  5. What are the Positive impacts of employment security on organizational performance?

Methodologies and Methods

Research area

Research Method

Applied Methodology


1. Significant relationship between HR practises and organizational performance






Mainly descriptions

2. Positive influence of recruitment and selection on organizational performance





Requires statistics to prove existence of any positive prove

3. Positive influence of training and development on organisational performance





Requires statistics to prove existence of any positive prove

4. Positive influence of performance appraisal on organizational performance





Requires statistics to prove existence of any positive prove

5. Positive influence of compensation on organizational performance





Requires statistics to prove existence of any positive prov

Primary Research

Primary research (Types)

Data collection




Administer forms physically

Fixed time schedule of company

-Obtaining information not observable.

-Large sample

-Easy analysis

- Reduces chance of evaluator bias

-More comfortable than interviews

-Easy tabulation of close-ended questions

Interviews (semi-structured)

One-to-one interview

Lack of openness

In phenomena not directly observable

-Respondent have room for description

Participant Observation recordings

Personal observations

Uneasiness from respondents

Own personal recordings

-collect data on the go


Online survey-monkey

Incomplete and untimely filling of forms

Large sample

Physical unavailability of responden

Ethical Considerations of the Project

General principles of ethical conduct in research are to be taken into account. The essential principle is that the study will be carried out in a way that all respondents are psychologically protected from foreseeable threats and respect one's cultural inclination (Behi & Nolan, 1995). The ethical considerations are as explained below:

Informed Consent

All the participants shall fully be informed about the aims of the study alongside all features of the research that might influence the decision of the respondent to participate (Steane, 2004).Ethical issues in research. Surviving your thesis, 59-70.. All potential risks or discomforts should also be made known. Furthermore, the researcher must ascertain that the participant has understood their right to pull out of the research at any time.


No information shall be withheld from the prospective respondent after briefing even if they are likely to refuse involvement in the research. In case of any doubt then more consultation should be carried out.

The information that shall be obtained from the respondents shall be private and confidential unless otherwise a consensus is reached prior. The participants must be guaranteed that it is their right to have the information they have provided treated with confidentiality and if anonymity is not possible then the staff must be notified before consenting to participate

Participant protection

Participants should be safeguarded against physical or mental harm by the researcher. The participants shall not be exposed to greater risks than those they experience in their day to day life. Additionally, the participants should be asked whether any risky part of the research procedure for instance, any pre-existing medical condition so that appropriate preventive measures are taken

The Importance of Skilled Workforce for Successful Human Resource Management

Honesty and integrity

The data collected shall be treated with high level of honesty and integrity by reporting the exact method used, exact data collected. The data shall not be unreasonably extrapolated or construed in anyway with an intention of misleading. The researcher shall also adhere to any agreements with the place of research.

The expected results of the analysis of the collected data on the impacts of HRM on the performance of the organization include:

Recruitment and selection practises

Recruitment and selection is a procedure through which organizations acquire labour force which is significant to the performance of the company. It is expected from the research that employees of Huruma University who possess the required skills, information and attitude will increase the business’ performance because of being committed and encouraged. Therefore, the organizations that have a thorough process of recruitment and selection are more likely to have employees that perform and thus the general performance of the organization will increase as well (Ferris, Berkson & Harris, 2002).

Compensation and rewards

According to Danish & Usman (2010) the more satisfied the employees are through compensation and rewards the more they are likely to be devoted to assignments. Employees that are paid based on performance produces a ripple effect whereby the other colleagues are challenged as well to work hard. Such a ripple effect results in the general increase in the performance of the institution.

According to Aguinis & Kraiger  (2009). The objective of training and development is to increase the value of the workers alongside their output. The HR department is expected to put in place strategies and relevant training programs to equip the employees of Huruma University with the latest and competitive knowledge to increase organizational performance. In order to identify employee needs as well, formal performance appraisals should be conducted or discussions held with the employees.  Thus well informed employees enable the organization to compete favourably in the market and hence improved performance.

Employment security

The human resource department policy on employment security creates emotional and financial satisfaction of employees which makes them to concentrate fully on the current job thus improving their general performance which further positively affects the output of the company (Boselie,  Hesselink & Wiele, 2002). Furthermore, the assurance to the employees of employment security to employees of value ensures that company is equipped with experienced labour force which substantially determine the firms output.

Performance appraisal

Articulating Services and Products in a Sound, Reliable, Friendly, and Innovative Manner

A formal performance appraisal system which is appreciated by employees serves as a benchmark for improvement. The feedback provided back to employees acts as a checklist for development and is used for identifying training needs and job promotion which places the qualified employee in the right job position thus ensuring performance (Cleveland, Murphy, & Williams, 1989).


The general phases of quantitative research include planning and execution (Younus, 2014) and they phases have limitations as well (Simon 2011).

Poor representation of the target population

When the target population is poorly represented, it may affect the accuracy of the expected outcome and the aim of the research. The subject representation may be affected when the respondents are not well distributed leading to a false proposition.

Unavailability of resources for collecting data

Such a type of research requires a large sample size for the achievement of the desired outcomes. Resources will pose a challenge in such a case thus limiting the proposition of the expected outcomes. The institution may also lack the necessary finances to conduct such research (Science, 2001).

The study will require a lot of time to organize, lead and execute (Morgan 1980). Since the research is quantitative meaning, it will need the proper representation which entails seeking permission, meeting the employees and administering questionnaires, data collection, and analysis.

Uncontrollable environment

Based on the kind of research it will be difficult to control the school environment where the participants will be providing answers during the survey (Baxter 2008). The environment will, therefore, determine the kind of answer given at specific times.

The research on the human resource management impact on the performance of Huruma University is an essential one. Indeed there is a reason why organizations reserve a whole department for the HRM. The human resource has a relationship with the performance of the organization because it is responsible for the quality workers through the process of recruitment and selection and other human resource practices. Depending on the priority that the management places on human resource department will determine the output. The data collection methods used in this research is very efficient, and the respondents will find it easy to understand and respond. The secondary source of data also assisted in gaining knowledge on the link between hr. Practices and the organizational performance. The research process also requires that ethical guidelines are strictly followed to adhere to rules of data collection from people such as confidentiality. Based on the significance of the study, more funds should be allocated for an in-depth study on this research to get a standard proposition. I believe that many organizations will benefit from this research to check on their performance.

Research Area


The study has shown that HRM practice impacts the performance of the Huruma University. According to the study, the organizational performance can be accredited to HRM functions such as recruitment and selection, training and development, performance appraisal and employee compensation. This research agrees with Khan (2010), and Huselid (1995). The objective of the research was to determine the impacts of the human resource management functions on the organizational performance. The five human resource functions were found to be significant for the organization to realize its maximum potential and to attain an advantage of competition over other businesses. Therefore organizations should start to adopt the HRM thinking and prioritize the HR function (Brockbank 1999).

The greatest assets of a company are the labor forces which are employees who are skilled, knowledgeable and able. The organization then makes maximum use of such an asset to improve performance. Therefore effective recruitment and selection ensure that only performance based employees are employed, and training and development continue to enhance such skills and abilities for the benefit of both the individual and the company. Therefore for an effective HRM Huruma University should develop and implement effective human resource management practice programs to advance the capabilities of the employees


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