Abstract
The purpose of this paper is to assess the relationship between Human Resource Management (HRM) practices and organizational performance in Spanish firms from a financial and non-financial perspective (subjective). The empirical study was conducted with a sample of 102 firms in the region of Andalucía (Spain). The results of statistical analysis have shown the fundamental role of establishing HRM practices aimed at seeking the employees’ commitment and its positive influence on organizational performance. Results also showed that the subjective measures for organizational performance better explained this phenomenon of study.
Highlights
In recent years a number of studies related to the association between Human Resource Management (HRM) practices and the level of employees’ commitment and business results have been published
The literature review, previously outlined, provides evidence of whether the two measures will have positive effects on HRM practices. To explore if such relationship exists among the studied companies, in the Spanish firms, we propose the following hypotheses: Hypothesis 1: The financial performance will be found positively conditioned by HRM practices aimed to foster employees’ commitment
The data obtained showed that human resources policies and practices followed by the Spanish firms have positive effects on organizational performance, when they pursue the achievement of employees’ commitment
Summary
In recent years a number of studies related to the association between Human Resource Management (HRM) practices and the level of employees’ commitment and business results have been published. This association has strengthened its role as a source of competitive advantage (Barney & Wright, 1998; Guthrie, 2001; Martin, Romero & Gardey, 2006). Human Resource Management (HRM) practices affect organizational performance through their effect on employee development and behaviors These practices determine the type of employees who are selected, the skills and motivation of the employees, and the opportunities and incentives they have to design new and better ways of doing their jobs (Moideenkutty, AlLamki, & Rama Murthy, 2011). Generating employeescommitment is an important consideration for both large and small organizations. (Shahnawaz & Juyal, 2006)
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