Role of Hr Practices In Affecting the Performance of the Companies

Exploring the impact of HR practices on company performance

Abstract

Business people arenow increasingly realizing that those having strong intangible asset base candominate the sky. A national survey of chief executives in the U.K. was conductedand it was found that company reputation, product reputation and employeeknow-how, were the most important intangibles contributing to overall success.Reputation is usually built through the use of superior competencies over theyears, but can be damaged easily. Management should make sure that everyemployee is disposed to be both promoter and a custodian of the reputation oforganization which employs him. Today, firms compete less on the basis ofproducts and markets and more on competencies, relationships and new ideas.Barney’s seminal work on ‘Resource Based View’ of firms, the concept of ‘corecompetencies’ propounded by Hamel and Prahlad and the ‘Knowledge Based Theory’of firm given by Grant provides a strong theoretical base for strategic importanceof human resources.