The purpose of this research is to find out whether HRM implementations actualized by businesses affect organizational performance. HRM is a strategic approach towards finding human resource that is the key source of the organization for gaining and increasing performance. In this research the relationship between HRM and performance of an organization has been analyzed in relation with HRM functions, i.e. labour force planning, recruitment and placement, in-service training performance assessing, and charging, awarding. HRM is implementation of plans, programs and strategies revealed in line with the purposes and objectives of an organization to find the human resource needed. The more concordance of HRM with the organization and the best implementations in HRM are applied the more the organizational performance indicators. HRM contributes for organizational success combining human and information source. Effective HRM implementations provide competitive advantage as well. The article states that strategic, well-planned HRM has been observed to positively affect organizational performance, as HRM practices affect extremely important organizational outputs for organizational performance such as financial performance, labor turnover and productivity. The article also states the increase in in-service training programs contributes significantly to the achievement of organizational goals and increasing labor productivity in organizations with low productivity.