The Relationship Between The HRM Effectiveness And The Organizational Performance

In the age of knowledge economy, because of the changing environment, the corporations have to consistently advance the value of human assets in their own organization for maintaining their competitiveness. To achieve this goal, the Human Resource (HR) Dept. plays a decisive role in the aspects of selection, training, employment, and retaining of human resource in the organization.. Nowadays, the roles of human resource transform from the administrative roles to the strategic roles. Furthermore, there are more and more companies rely on their intangible asset to add value. Besides, companies can also improve organizational performance through effective HRM activities. The purpose of this research is to examine the relationship between HRM effectiveness and organizational performance.Moreover, the study also examines the interaction effect between HRM effectiveness and Strategic HR role on organizational performance.Total 528 questionnaires were sent to the best one thousand companies in Taiwan and 117 valid questionnaires were returned. The results indicate that HRM effectiveness is positively associated with organizational performance, and strategic HR role is positively associated with HRM effectiveness. Furthermore, the interaction effect between HRM effectiveness and Strategic HR role is positively associated with organizational performance.According to the results of the research:(1) HRM effectiveness and the interaction effect between HRM effectiveness and Strategic HR role are positively associated with organizational performance.(2) Organizations can enhance their HRM effectiveness and focus on the strategic HR roles to get the better organizational performance.