Monthly Archives: February 2013

Human resource management connection to business performance

Human resource management connection to performance (HRM-P) has focus in explaining, measuring and managing the HRM link to organization success. HRM-P approach seeks explanation why chosen HRM practice improves performance, and if so, to what extent. There is strong empirical evidence and theoretical basis for believing that emphasizing of systematic HRM will improve employee involvement and enhance organizational performance and productivity.

The HRM-P phenomenon in practice could go like this: workers experience developmental needs because they feel that their working contribution gets somewhat wasted. HR-development process will help working team to implement optimal improvements which improve the human competencies and the quality of working life. These improvements will reduce the other working time (PAFF), thus increasing the share of effective working time. However abovementioned will increase the absolute effective working time only if HRD process is being done effective enough to contribute excess of effective working time. Increasing effective working time makes it possible to produce more revenue with the same HR costs, leading to improved productivity. The phenomenon is logical and sensible and seems to explain the empirically grounded findings.