Skip to content
Effect of human resource management practices on organizational performance
Home » Blog » Effect of human resource management practices on organizational performance: download PDF

Effect of human resource management practices on organizational performance: download PDF

Human resource management practices have been shown to positively influence organizational performance by improving employee performance, enhancing employee job satisfaction, reducing employee turnover, enhancing employee motivation, and increasing employee commitment.

The following are empirical studies from different parts of the world concerning the impact of human resource management practices on organizational performance.

A study of organizational performance and human resource management

The study explored the impact of human resource management on organizational performance in Indian companies. Specific objectives of the study included establishing the effect of training & development on organizational performance in Indian firms, assessing the effect of performance appraisal on organizational performance in the Indian firms, and evaluating the effect of employee engagement on organizational performance in Indian firms (Gupta, 2025).

The target population included Indian companies operating in the metropolitan regions in the following sectors: healthcare, information technology, education, manufacturing, and service. A sample size of 250 employees from the target firms was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics such as frequency, percentage, mean, and standard deviation were used to analyze the descriptive variables of the study. Regression analysis was used to assess the effect of the predictor variables, including training & development, performance appraisal, and employee engagement, on the outcome variable, that is, organizational performance. The results were presented in tables as deemed appropriate (Gupta, 2025).

The findings of regression standardized coefficients indicated that when all factors are held constant, training & development explained 34% of the variance in organizational performance in the target firms, performance appraisal explained 28% of the variance in organizational performance in the target firms, and employee engagement explained 38% of the variance in organizational performance. This means the human resource management practice with the greatest impact on organizational performance was employee engagement, followed by training & development, and lastly, performance appraisal (Gupta, 2025).

Effect of human resource management practices on organizational performance in Rwanda. A case of International Training and Motivation Africa Limited

The study explored the effect of human resource management practices on organizational performance at International Training & Motivation (ITM) Africa Limited Rwanda. The specific objectives of the study included the following: to establish the effect of human resource planning on organizational performance in ITM Africa Limited and to determine the effect of training & development on organizational performance in ITM Africa Limited. This was a case study research, and thus employees of the firm constituted the respondents for the study (Ishimwe & Narayan, 2024).  

A sample size of 612 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data were analyzed using descriptive statistics such as frequency and percentages. Correlational analysis was used to assess the relationship between variables under study. Regression analysis was used to establish the effect of the independent variables on the dependent variable. The results were presented in tables as deemed fit (Ishimwe & Narayan, 2024).

The findings of the correlational analysis indicated that there was a positive and significant association between the study variables. The results of regression analysis indicated that the independent variables contributed to 73.1% variance in organizational performance. Specifically, human resource planning was shown to contribute 47.5% variance in organizational performance, while training & development contributed 54% variance in organizational performance. This means that training & development had the greatest impact on organizational performance in the target firm (Ishimwe & Narayan, 2024).

Effect of human resources practices on organizational performance: evidence from the telecommunications sector in Tanzania

The study examined the effect of human resource practices on organizational performance in the telecommunications sector in Tanzania. Specifically, the objectives of the study included the following: to determine the effect of compensation & rewards on organizational performance; to establish the effect of training & development on organizational performance; to find out the effect of recruitment & selection on organizational performance; and to evaluate the effect of job design on organizational performance (Ringo & Jiang, 2022).

The target population of the study included employees of Tanzania Telecommunication Corporation. A sample size of 250 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data were analyzed using descriptive statistics such as frequency and percentages. Correlation analysis was used to establish the association between study variables. The results were presented in tables as deemed fit (Ringo & Jiang, 2022).

The results of the study indicated that all the independent variables, including compensation & rewards, training & development, recruitment & selection, and job design, had a positive and significant impact on organizational performance (Ringo & Jiang, 2022).

Effect of human resource management practices on employee performance mediated by employee job satisfaction

The study focused on the effect of human resource management practices on employee performance mediated by employee job satisfaction in pharmaceutical companies in Bangkok, Thailand. The specific objectives of the study included the following: to establish the effect of training & development on job satisfaction; to determine the effect of performance appraisal on job satisfaction; to assess the effect of reward & compensation on job satisfaction; to evaluate the effect of employee empowerment on job satisfaction; to find out the effect of job satisfaction on employee performance; to assess the mediating effect of job satisfaction on the relationship between training & development and employee performance; to examine the mediating effect of job satisfaction on the relationship between performance appraisal and employee performance; to explore the mediating effect of job satisfaction on the relationship between reward & compensation and employee performance; and to explore the mediating effect of job satisfaction on the relationship between employee empowerment and employee performance (Rodjam et al., 2020).

The target population included employees of pharmaceutical companies of Thailand. A sample size of 400 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics such as frequency and percentage. The PLS-SEM method was used to assess the effect of the predictor variables on the dependent variable. The results were presented in tables as deemed fit (Rodjam et al., 2020).

The results revealed that employee empowerment had a positive impact on job satisfaction; performance appraisal had a positive impact on job satisfaction; reward & compensation had a positive impact on job satisfaction; training and development had a positive impact on job satisfaction; employee empowerment had a positive impact on employee performance; performance appraisal had a positive impact on employee performance; reward & compensation had an insignificant effect on employee performance; and training and development had a positive impact on employee performance (Rodjam et al., 2020).

In addition, the findings indicated the following: job satisfaction had no influence on the relationship between employee empowerment and employee performance; job satisfaction positively mediated the relationship between performance appraisal and employee performance; job satisfaction positively mediated the relationship between reward & compensation and employee performance; job satisfaction positively mediated the relationship between training & development in the target pharmaceutical firms (Rodjam et al., 2020).

The effect of human resource management practices on organizational performance: the case of Yekabdi Agro Processing PLC

The study examined the effect of human resource management practices on the organizational performance at Yekabdi Agro Processing PLC in Addis Ababa, Ethiopia. The specific objectives of the study included the following: to establish the effect of training & development on organizational performance in the target firm, to determine the effect of recruitment & selection on organizational performance, to find out the effect of reward and compensation on organizational performance, to find out the effect of performance appraisal on organizational performance, and to assess the effect of employee participation on organizational performance (Alemayehu, 2022).

The target population included employees of Yekabdi Agro Processing PLC in Addis Ababa, Ethiopia. A sample size of 50 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics such as frequency, percentage, mean, and standard deviation were used to analyze descriptive variables of the study. Regression analysis was used to assess the effect of independent variables on the dependent variable. The results were presented in tables as deemed fit (Alemayehu, 2022).

The results of regression standardized coefficients showed that when all factors are maintained at a constant, training & development contributed to 4.2% variance in organizational performance, reward and compensation contributed to 40.1% variance in organizational performance, performance appraisal contributed to 34% variance in organizational performance, and employee participation contributed to 26.8% variance in organizational performance. On the other hand, recruitment & selection had an insignificant influence on organizational performance (Alemayehu, 2022).

The effect of human resource management practices on the quality of service, customer satisfaction, and organizational performance in the Cypriot urban hotel industry

The study examined the effect of human resource management practices on the quality of service, customer satisfaction, and organizational performance in the Cypriot urban hotel industry, Cyprus. The specific objectives of the study were to determine the effect of human resource management practices on quality of service, to evaluate the effect of human resource management practices on organizational performance, to find out the effect of human resource management practices on customer satisfaction, to establish the effect of quality of service on organizational performance, to evaluate the effect of quality of service on customer satisfaction, and to establish the effect of organizational performance on customer satisfaction (Papademetriou et al., 2022).

The target population included hotels operating in Cyprus’s urban areas. A sample size of 228 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics such as frequency and percentages were used to analyze the descriptive variables of the study. Correlational analysis was used to establish the associations among study variables. The findings were presented in tables as required (Papademetriou et al., 2022).

The results of correlational analysis indicated that human resource management practices were strongly correlated with quality of service and organizational performance, as well as customer satisfaction. The findings further indicated that quality of service was strongly correlated with organizational performance as well as customer satisfaction. Organizational performance was also strongly correlated with customer satisfaction (Papademetriou et al., 2022).

The impact of human resources management (HRM) practices on organizational performance in Globacom Nigeria

The study focused on the impact of HRM practice on organizational performance in Globacom, Nigeria. Specifically, the study objectives included the following: to establish the effect of recruitment & selection on organizational performance at Globacom, to evaluate the effect of training & development on organizational performance at Globacom, to find out the effect of performance appraisal & evaluation on organizational performance at Globacom, and to examine the effect of compensation on organizational performance at Globacom (Obiamaka, 2022).

The target population included staff at Globacom Nigeria, Victoria Island, Lagos. A sample size of 119 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics such as frequency, percentage, mean, and standard deviation were used to analyze descriptive variables of the study. Regression analysis was used to assess the effect of the independent variables on the dependent variable. The results were presented in tables as deemed appropriate (Obiamaka, 2022).

According to the results of regression standardized coefficients, performance appraisal & evaluation contributed to 48.6% variance in organizational performance, while compensation contributed to 36.5% variance in organizational performance at Globacom. Meanwhile, recruitment & selection as well as training & development both had an insignificant impact on organizational performance at Globacom (Obiamaka, 2022).

The impact of human resource management practice on organizational performance

The study investigated the impact of human resource management practices on organizational performance in government institutions in the Kurdistan region, Iraq. Specifically, the study objectives included the following: to find out the effect of incentives on organizational performance, to establish the effect of employee training on organizational performance, to find out the effect of selective hiring on organizational performance, to examine the effect of job security on organizational performance, and to assess the effect of decentralization on organizational performance (Anwar & Abdullah, 2021).

The target population included employees working in the Ministry of Regional Municipalities and Water Resources in the Kurdistan region, Iraq. A sample size of 240 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency, percentage, mean, and standard deviations. Regression analysis was used to assess the effect of the predictor variables on the outcome variable. The results were presented in tables as deemed fit (Anwar & Abdullah, 2021).

The results of correlational analysis indicated that there was a positive association between the independent variables, including employee incentives, employee training, selective hiring, job security, decentralization & self-managed teams, and the dependent variable, that is, organizational performance. The results of regression standardized coefficients indicated that when all factors are kept constant, employee incentives contributed to 9.9% variance in organizational performance, employee training contributed to 2.8% variance in organizational performance, and job security contributed to 7.3% variance in organizational performance, while decentralization & self-managed teams contributed to 40.1% variance in organizational performance. This means that the human resource management practice with the greatest impact on organizational performance was decentralization & self-managed teams. The effect of the other human resource management practices on organizational performance was minimal to say the least (Anwar & Abdullah, 2021).

The effect of human resource management practices on improving the performance and innovative behavior of the state civil apparatus

The study examined the effect of human resource management practices on the performance and innovative behavior of the state civil apparatus. Specifically, the objectives of the study included the following: to establish the effect of high-commitment human resource practices on employee performance; to assess the effect of high-commitment human resource practices on affective commitment; to find out the effect of high-commitment human resource management practices on public service motivation; to evaluate the effect of high-commitment human resource practices on innovative behavior; to evaluate the effect of affective commitment on employee performance; to determine the effect of affective commitment on innovative behavior; to assess the effect of public service motivation on affective commitment; to investigate the effect of public service motivation on employee performance; and to find out the effect of public service motivation on innovative behavior (Susanti & Syahlani, 2021).

The target population included staff working at the State Civil Apparatus (ASN) in Indonesia. A sample size of 215 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics were analyzed using descriptive variables such as frequency, percentage, mean, and standard deviation. PLS-SEM was used to assess the effect of the predictor variables on the dependent variable. The results were presented in tables as required (Susanti & Syahlani, 2021).

The results of PSL-SEM analysis indicated the following: High-commitment human resource management practices had a positive and significant impact on employee performance; high-commitment human resource management practices had a positive and significant impact on affective commitment; high-commitment human resource management practices had a positive and significant impact on public service motivation; high-commitment human resource management practices had an insignificant impact on innovative behavior; affective commitment had an insignificant impact on employee performance; affective commitment had an insignificant impact on innovative behavior; public service motivation had a positive and significant impact on affective commitment; public service motivation had a positive and significant impact on employee performance; public service motivation had a positive and significant impact on innovative behavior (Susanti & Syahlani, 2021).

The impact of some selected HRM practices on organizational performance in Silte Zone primary hospitals

The study investigated the impact of some HRM practices on organizational performance in Silte Zone primary hospitals in Nigeria. The specific objectives of the study included the following: to determine the effect of recruitment & selection practice on the performance of primary hospitals in the Silte zone; to find out the effect of compensation practice on the performance of primary hospitals in the Silte zone; to establish the effect of training & development practice on the performance of primary hospitals in the Silte zone; to evaluate the effect of performance appraisal practice on the performance of primary hospitals in the Silte zone; and finally, to assess the effect of motivation practice on the performance of primary hospitals in the Silte zone (Abera & Manamno, 2021).

The target population included primary hospitals in the Silte zone. A sample size of 453 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics such as frequency, percentage, mean, and standard deviation. Regression analysis was employed to establish the effect of independent variables on the dependent variable. The results were presented in tables as required (Abera & Manamno, 2021).

Overall, the results of regression analysis indicated that the human resource management practices explained 72.1% of the variance in organizational performance. The results of regression standardized coefficients indicated that when all factors are held constant, recruitment & selection practice contributed to 4.2% variance in organizational performance, compensation practice contributed to 14.2% variance in organizational performance, training & development practice contributed to 39.4% variance in organizational performance, performance appraisal practice contributed to 31% variance in organizational performance, and motivation practice contributed to 18% variance in organizational performance (Abera & Manamno, 2021).

The impact of human resource management practices on organizational performance: a case study of manufacturing enterprises in Kosovo

The study explored the impact of human resource management practices on organizational performance in manufacturing enterprises in Kosovo. Specifically, the objectives of the study included the following: to determine the effect of recruitment & selection on organizational performance; to find out the effect of training & development on organizational performance; to establish the effect of flexible reward on organizational performance; to assess the effect of employee involvement on organizational performance; and to evaluate the effect of work condition on organizational performance (Jashari & Kutllovci, 2020).

The target population included registered manufacturing enterprises operating in Kosovo. A sample size of 161 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics including frequency, percentage, mean, and standard deviation were used to analyze descriptive variables of the study. Spearman correlation analysis was used to assess the relationship between the variables being investigated. The findings were presented in tables as required (Jashari & Kutllovci, 2020).

The results of Spearman correlation analysis indicated the following: recruitment & selection had a positive and significant relationship with enterprise performance; training & development had a positive and significant relationship with enterprise performance; flexible rewards had a positive and significant relationship with enterprise performance; employee participation had a positive and significant relationship with enterprise performance; and work conditions had a positive and significant relationship with enterprise performance (Jashari & Kutllovci, 2020).

Impact of human resources management on organizational performance: a case study

The study explored the impact of human resource management on organizational performance: a case study of Nestlé Plc., Nigeria. Specifically, the objectives of the study included the following: to establish the effect of human resource development on employee effectiveness, to find out the effect of human resource development on operational efficiency, and to evaluate the effect of human resource development on quality service delivery (Udokwu et al., 2023).

The target population included staff of Nestlé Plc in Abuja, Nigeria. A sample size of 92 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics were used to analyze descriptive variables of the study. Regression analysis was used to determine the effect of the independent variables on the dependent variable. The results were presented in tables as required (Udokwu et al., 2023).

The results of regression analysis indicated that human resource development influenced 1.7% variance in employee effectiveness of Nestle, 65.3% variance in operational efficiency of Nestle, and 76.3% variance in quality service delivery of Nestle (Udokwu et al., 2023).

The impact of human resource management practice on organizational performance

The study focused on the impact of human resource management practices on organizational performance in the Ministry of Regional Municipalities and Water Resources in the Kurdistan region of Iraq. The specific objectives of the study were as follows: to establish the effect of incentives on organizational performance in the target ministry; to assess the effect of employee training on organizational performance in the target ministry; to determine the effect of selective hiring on organizational performance in the target ministry; to examine the effect of job security on organizational performance in the target ministry; and to evaluate the effect of decentralization on organizational performance in the target ministry (Auma, 2018).

The target population included employees working in the Ministry of Regional Municipalities and Water Resources in the Kurdistan region of Iraq. A sample size of 240 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive variables such as frequency, percentage, mean, and standard deviation. Multiple regression analysis was employed to assess the effect of the independent variables on the dependent variable. The results were presented in tables as required (Auma, 2018).

The findings of regression standardized coefficients indicated that when all factors are held constant, employee incentives contributed to 9.9% variance in organizational performance, employee training contributed to 2.8% variance in organizational performance, and job security contributed to 7.3% variance in organizational performance, while decentralization & self-managed teams contributed to 40.1% variance in organizational performance. This means that the human resource management practice with the greatest impact on organizational performance was decentralization & self-managed teams. Selective hiring had a positive but insignificant impact on organizational performance. On the other hand, employee incentives, employee training, and job security all had a negative and insignificant impact on organizational performance (Auma, 2018).

The effect of human resource management practices on an organization’s performance

The study focused on the effect of human resource management practices on an organization’s performance in the banking sector in Pakistan. The specific objectives of the study included the following: to determine the effect of staffing practices on organizational performance, to evaluate the effect of incentives on organizational performance, and to find out the effect of training programs on organizational performance (Saeed et al., 2013).

The target population included employees of banks in Sahiwal, Pakistan. A sample size of 150 respondents was selected to participate in the study. Descriptive statistics such as frequency, percentage, mean, and standard deviation. Pearson correlation was used to determine the associations between study variables. Regression analysis was used to assess the effect of independent variables on the dependent variables. The results were presented using tables (Saeed et al., 2013).

The findings of correlational analysis indicated that the human resource management practices have a positive association with each other and with organizational performance. The results of regression standardized coefficients indicated that when all factors are kept constant, staffing practices explained 39.3% of the variance in organizational performance, incentive practices explained 32.3% of the variance in organizational performance, and training programs explained 27.2% of the variance in organizational performance (Saeed et al., 2013).

Citations

Abera, A. and Manamno, G. (2021). The impact of some selected HRM practices on organizational performance in Silte Zone hospitals. International Journal of Recent Research in Interdisciplinary Sciences, 8(3), 1-12.

Alemayehu, M. (2022). The effect of human resource management practices on organizational performance: the case of Yekabdi Agro Processing PLC. Unpublished Master’s Thesis submitted to the School of Graduate Studies, St. Mary’s University, Addis Ababa, Ethiopia.

Anwar, G. and Abdullah, N.N. (2021). The impact of human resource management practice on organizational performance. International Journal of Engineering, Business and Management, 5(1).

Auma, C. (2018). The impact of human resource management practice on organizational performance. Paper presented during the International Conference on Emerging Trends in Social Science, Management, and Commerce held on 29-30th September 2018.

Gupta, S. (2025). A study of organizational performance and human resource management. International Journal for Multidisciplinary Research, 7(3).

Ishimwe, F. and Narayan, S.S. (2024). Effect of human resource management practices on organizational performance in Rwanda. A case of International Training and Motivation Africa Limited. Journal of Research Innovation and Implications in Education, 1(1), 203-212

Jashari, A. and Kutllovci, E. (2020). The impact of human resource management practices on organizational performance: a case study of manufacturing enterprises in Kosovo. Verslas: Teorija ir praktika/Business: Theory and Practice, 21(1), 222-229.

Obiamaka, O.S. (2022). The impact of human resources management (HRM) practices on organizational performance in Globacom Nigeria. Research Journal of Management Practice, 2(5).

Papademetriou, C., Sofia, D., Anastasiadou, Konteos, G. (2022). The effect of human resource management practices on the quality of service, customer satisfaction, and organizational performance in the Cypriot urban hotel industry.

Ringo, G. and Jiang, X. (2022). Effect of human resources practices on organizational performance: evidence from the telecommunications sector in Tanzania. International Journal of Economics, Commerce, and Management, 10(4).

Rodjam, C., Thanasrisuebwong, A., Suphuan, T., and Charoenboon, P. (2020). Effect of human resource management practices on employee performance mediated by employee job satisfaction. Sys Rev Pharm, 11(3), 37-47.

Saeed, R., Lodhi, R.N., Iqbal, A., Sandhu, M.A., Munir, M., and Yaseen, S. (2013). The effect of human resource management practices on an organization’s performance. Middle East Journal of Scientific Research 16(11), 1548-1556.

Susanti, E. and Syahlani, D.H. (2021). The effect of human resource management practices on improving the performance and innovative behavior of the state civil apparatus. Advances in Economics, Business, and Management Research, 210.

Udokwu, S.T.C., Oshioste, E.E., Okoye, C.C., Nwankwo, T.C., Azubuike, N.U., and Uzougbo, N.S. (2023). Impact of human resources management on organizational performance: a case study. Corporate Sustainable Management Journal, 1(2), 91-102.

admin

Leave a Reply