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Effect of Human Resources Management (HRM) Practices on Firm Performance in India

Kuldeep Singh
Indian Journal of Industrial Relations
Vol. 36, No. 1 (Jul., 2000), pp. 1-23
Stable URL: http://www.jstor.org/stable/27767694
Page Count: 23
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Effect of Human Resources Management (HRM) Practices on Firm Performance in India
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Abstract

The aim of Human Resources (HR) function (management and development) in the organisational context is to ensure the availability of competent, motivated, and learning employees to the organisation to facilitate the achievement of its business objectives. The HR function has been quite successful in performing its role in terms of developing capacity, knowledge, attitude, and skills of the employees. However, in the recent past a shift is taking place in the expected role of both the HR function and manager. This new role is that of an active partner along with other functionaries like production, finance, marketing, etc. Therefore, HR is no more a passive function. This has two implications for the HR managers and practitioners. First, it will require HR function and persons dealing with it to provide more inputs related to human resources at the strategy formulation level. Secondly, it will require HR to demonstrate that investments in human resources contribute to business results. However, there is a paucity of empirical work in our country to support the assertion that investments in HR have impact on firm performance. It is in this context that the present study of 84 Indian organisations was carried out to find answer to the question whether investment in HR contributes to firm performance.

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