The Research On Organizational Performance Based On High Commitment Human Resource Management

Currently there is a widespread conception of satisfying the customers which has been deeply rooted among people, such as: ‘The customer is king.’, ‘Market and customers’ demands oriented.’, ‘Customers are always right.’ etc. Those guiding principles have been generally accepted by most of the entrepreneurs, especially those private entrepreneurs. However,people’s understanding on ‘customers’ is always refined and limited on ‘External customers’, excluding ‘Internal customers – own employees’. As a matter of fact, ‘Staff, sepecially those talented and skilled ones, are also key capital’ for an enterprise. Mr. Lonbecty Hoginet, previous president of a famous American company, projected a ‘Gloden rule’ which says ‘You would gain extraordinary market returns if you care about your customers and your employees together.’ This saying serves the same philosophy as one recent research by Harvard University which had been proved to be true: For every 3% increase in employee satisfaction, customer satisfaction will increase 5%, and then organizational performance and profits increased 2.5% accordingly.’ It indicates clearly that ‘Customers’ are external customers of an enterprise, ‘Employees’ are internal customers. Only if this enterprise cares both external and internal customers without losing one, can it achieve success finally. Thus it can be seen that the level of its internal employee satisfaction determines and directly affects the profits and organizational performance of this enterprise. Entrepreneurs could achieve the ultimate purpose of satisfying the demands from customers, shareholders, and themselves altogether by raising internal employees’ satisfaction. But how? The key is ‘High commitment human resource management’, a fundamental embodiment of the HR management idea of ‘people-oriented’.This paper is to explore the actual situation of employees’ satisfaction and organizational performance based on ‘High commitment human resource management’ by doing research on a famous American-capital enterprise – Company H. And finally it tries to reveal that ‘High commitment human resource management’ is directly related to organizational performance. Then it provides several suggestions on how to improve employees’ satisfaction, with the purpose of improving the overall organizational performance.