Before looking at how HRM affects performance it’s important to note what organisational performance is. Organizational Performance" is a broad construct which captures what agencies do, produce, and accomplish for the various constituencies with which they interact. There are six dimensions in which for measuring organisational performance these are
Productivity
Employee satisfaction
Client satisfaction
Client impact
Service quality
Resource acquisition and domain maintenance
Organisations will always strive to achieve the best structure and performance possible. In order to maximise the effectiveness of this a good use of HRM will be required. The way HRM is best used to improve organisational performance is by implementing a good strategy.
The strategy in relation to HRM can be split into two terms strategy as a plan and strategy as a system of management.
Strategy as a plan is when an organisation uses there strategy as a way of interacting with the competitive environment. It’s derived from the term “military strategy” and what it means is that an organisation will use this as their corporate
References: Books Pfeffer (1994) Competitive Advantage through people: unleashing the power of the workforce, Boston havard business school press Guest D (1997) “Human resource management and performance: a review and research agenda” Ulrich, Dave. Delivering Results: A New Mandate for Human Resource Professionals. Harvard Business School Press, 1998. Websites http://www.jstor.org/pss/256741 accessed 14/8/2010 www.workandsociety.com accessed 14/8/2010