Impact of HRM Practices on Organizational Performance - A Study of Indian IT Sector

Abstract

The study intends to investigate the way organizational performance is related with human resource management practices in the Information Technology (IT) sector in Odisha, India with a special focus on performance appraisal, training practices, and recruitment & selection. A number of studies are available exploring this research topic in western countries, but limited researches are found concerning India's HRM landscape. Therefore, this article aims to examine the relationship between HR practices and organizational performance in Indian context. Structural equation modeling is used to elicit the relationship clearly. The findings of this study indicate a positive association between performance appraisal and training practices with organizational performance. These results suggest that effective performance appraisal systems and robust training practices have a beneficial impact on organizational performance in the IT sector in India and more particularly in Odisha. This information can assist organizations in understanding the importance of implementing sound HRM practices to enhance their overall performance and competitiveness in the market. IT industry in India is well-known for its significant impact on the country's economy and high levels of employee engagement. Examining the influence of HRM practices on organizational performance within this specific context can provide valuable insights for both researchers and practitioners.