A Study On The Effect Of HRM On Organizational Performance And Its Mechanism

With the approach of new economic era, human resource has become an important resource in enterprise’s strategy, and become a strong backing for the competitiveness of enterprises. In modern enterprise management, human resources have become the core investing element of the enterprise, which is not only the driving force to enhance the competitiveness of enterprises, but also plays an important role in the organizational performance. Just because of this, human resource management(HRM) has become one of the most important duties of modern enterprise management. The related research of enterprise human resources management and organizational performance not only contributes to the realization of the overall business strategy, but also is helpful to mining the path to make both complement each other mutually. Because of this, the influence that HRM made on the enterprise performance has become a hot issue of common concern of modern enterprise management theorists and practitioners.The source and the subsequent strength of the core competitiveness of enterprises are from the enterprise human resources management efficiency. However, the questions that how HRM affects the performance management, how to reflect the relationship between the two, and how to measure the effect of a series of specific problems are still inconclusive. Based on the theoretical framework of enterprise human resource management, taking the theory of organizational behavior, and management as a guide, this paper elaborates the intermediate variables that HRM practices on firm performance.Firstly, this paper constructs a theoretical model(ie, HR value chain model) of the value creating process of HRM in organizational operation, referring to Porter’s value chain model. This model explains the process of how each of the modules of HRM can create value during the organizational management procedure. Secondly, this paper reviews the literatures in HRM and organizational performance, and also selects employee satisfaction and organizational commitment as the two mediators in this study. Thirdly, this paper constructs several hypotheses. Then we generate a questionnaire to conduct an empirical study, using the basic statistical method to study the enterprise human resources management impact on enterprise performance management process and mechanism. The results of this paper show that, HR practice can significantly promote employee satisfaction, and then increase their organizational commitment, and lastly improve organizational performance. Last but not least, this paper discusses the results and their meaning on the managerial practice, as well as discussing the weakness and some advices on future researches.