Impact of HR Practices on Organizational Effectiveness: A Study With Reference to Engineering Colleges in Chennai, Tamil Nadu

Impact of HR Practices on Organizational Effectiveness: A Study With Reference to Engineering Colleges in Chennai, Tamil Nadu

K. Sreenivasa Murthy (Department of Management, Central University of Tamil Nadu, India) and K. Sai Kumar (Narayana Engineering College, India)
Copyright: © 2021 |Pages: 12
DOI: 10.4018/IJABIM.20210401.oa10
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Abstract

The purpose of this paper is to identify the factors for both HR practices and organizational effectiveness along with what extent HR practices impact organizational effectiveness. The data were randomly collected from faculty working in engineering colleges located in around Chennai. An analysis of the data identified compensation, employee performance evaluation, recruitment and selection and training practices are the important HR factors. Similarly, employee recognition, development and encouragement, organizational policies and procedures, and organizational structure are the factors identified for the organizational effectiveness after analyzing the results generally are in tune with previous studies. Regression analysis was applied to test the impact of HR practices on organizational effectiveness, and it is found that there is a strong relationship between the two. It highlights compensation practices are the crucial element of HR practices and have a significant impact on the organizational effectiveness.
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2. Review Of Literature

Successful HR practices are more than ever before plays a leading role in the performance of organizations. Poor working conditions, improper compensation system, poor management and absence of evaluation system leads to failure in retaining capable personnel which ultimately leads to failure of the organization and is a common situation that appears in many organizations. Some of the previous researchers like Ahmad and Schroeder, (2003), Delaney and Huselid, (1996), Ichniowski et al., (1997), conducted studies on HRM activities with reference to developed countries. The content of their studies mainly focused on how HRM related practices greatly affect the performance of the employees. The literature available on human resources management elaborated the role of HR practices with different set of activities. For example, Pfeffer (1994) identified 16 HRM-related practices, Delery and Doty (1996) identified seven HRM-related practices, and Tessema and Soeters,(2006) identified eight HR practices. It is found that each set of these practices have shown significant impact on the performance across all types of organizations in different countries.

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