The paper “ The Way People Are Managed Is Vital for the Performance of Any Organization” is a breathtaking example of a literature review on human resources. HR management has been changing in the recent past and this has called for further research in this realm. Research studies on this field ought to focus on establishing the effects of human resource practices on employee commitment (Zaitouni et al. , 2011: 108). Many scholars have argued in support of the proposition that human resource policies and practices have a considerable effect on the performance of an organization.
Information from their scholarly works has argued that progressive human resource management practices and policies have a positive impact on organizational performance (U. S. Department of Labor et al, 1993:3). Whitener (2001) being one of the scholars, for example, argued that human resource practices have an effect on the relationship between perceived organizational support and commitment, and his arguments were based on research conducted on credit unions. However, it is quite crucial to note that not all human resource practices will have the same effect when used. Godard (2009) found out that various human resource practices have dissimilar effects and these implications vary with the environment.
It is for this reason that the proposition that ‘ The way people are managed is vital for the performance of any organization’ emerged. It is also worth noting that not all scholars support the ideology of human resource practices having a direct relationship with organizational performance in the same dimension. For example, Mohamad (2009) disagrees with the idea that all human resource practices having the same impact on organizational performance.
He argues that different human resource practices would give the best results due to the direct relationship existing between them and organizational performance. Training and information technology have a direct correlation to organizational performance but the relationship is indirect. In essence, they moderate the relationship between human resource practices and organizational performance (Mohamad, 2009: 236). The overall turnover of an organization does not entirely depend on the number of employees it has but also on how it is managed. Researching this ideology helps in the achievement of a good understanding of how best human resource managers can manage their employees. Perhaps, the best way to initiate this discussion is by first defining crucial terms; human resource practices and policies, and organizational performance.
Godard (2010) defines human resource practices as ‘ the way in which worker, as resource inputs to this process are managed’ . Human resource practices circle around activities such as training, appraisal, and selection. In simple terms, human resource practices are those management activities aimed at improving organizational performance. Human resource policies are predefined guidelines forming a good foundation for effective management. Organizational performance, on the other hand, refers to end result of an organization in terms of economic output.
These three terms are interrelated in some way, with one factor being dependent on the other. Smith, (2007) argues that a human resource system that is inclusive of both human resource policies and practices has proved to have substantial effects on the attitudes and behaviors of employees particularly on the side of turnover. However, little has been done on the side of attitudes and therefore, it is limited in terms of empirical and theoretical evidence.