What Relationship between the Functions of HRM and Organisational Performance? Many theorists have introduced the company's human capital ES a source of sustainable competitive advantage to it and the management of human capital ES the ultimate determinant of organisational performance. Why HRM practices are they linked to the success of the company and what is the nature of this relationship? If the conclusions of previous studies are not decided on the existence and nature of this relationship, the question of its measurement remains a subject of much debate (Amor, 2002).
The existence of the relationship "HRM - Organisational Performance"
Let's start by briefly define what we mean by performance of the organisation. It is a multidimensional concept and complex, not limited solely to financial results and the evaluation of which can be done by measuring several organisational outcomes, external and internal. ES part of this paper; we investigate the contribution of HRM which is improving business performance. This objective refers to two things: the performance is a form of success, the company's success. It is therefore a positive action - the purpose of our research is to evaluate the effects of ES on the company's performance, so measure and not to construct or represent performance. So we stand in an approach positiviste4 performance. This certificate shall be defined ES a positive action. Two approaches are commonly cited in the literature, providing explanations about the sources of organisational performance: an economic approach that factors related to good management of internal resources have a very marginal contribution to the performance of the enterprise, This second approach is reinforced in the early 1980s, the theory of internal resources (Resource-Based Theory) that differences in performance between companies in the same industry derived from the exploitation of internal resources rather than an adaptation of the organisation to market and the environment. Researchers strongly stress that they are hardly replicable or transferable assets, because of their specificity, they are woven into social systems (internal and external to the firm) and causation (difficult to establish) they have with the performance and value creation. Reflection on the sources of organisational performance said that HR and how to manage them are closely related to the success of the company. The identification of a relationship between HRM and firm performance calls for reflection on the nature of this relationship. Reflection on the sources of organisational performance said that HR and how to manage them are closely related to the success of the company. The identification of a relationship between HRM and firm performance calls for reflection on the nature of this relationship (Andrews, 2007).
Measuring the contribution of HRM to organisational performance
The idea of measuring human capital is the subject of numerous studies since the 1960s. The main contribution is to involve HR in a company's economic value, arguing that human capital plays an important role in creating value within the company. According to these authors, the quality of HR, internal consistency of HRM practices, the ...