Human Resource Management Practices And Its Effects On Corporate Financial Performance

Abstract

In the current business world, for attaining a sustainable competitive advantage and enhancing business performance, Human Resource Management (HRM) concentrates more on business operations. Also, the adoption of different HRM strategies for decision-making and giving solutions to problems has been shown by the majority of studies. But, the impact of Human Resource Management Practices (HRMPs) on Corporate Financial Performance (CFP) and its relationship towards the enhancement of productivity has received little attention and remains largely unexplored, despite the increase in the adoption of HRM. Hence, this work concentrates on the impact of HRMPs and their effects on CFP. The study samples are taken from 411 employees, who are working in corporate finance from various metro cities of Mumbai, Bengaluru, Chennai, and Hyderabad in India. Through the convenience sampling technique, the collected sample has been analyzed. The study hypothesis is tested and analyzed by utilizing Structural Equation Modeling (SEM). Lastly, the outcomes exhibited that the HRMPs of selection and recruitment, training, compensation, employee participation, career planning, job definition, and performance appraisal had a significant relationship with CFP. Also, it revealed that the indicators of HR Information System (HRIS), Total Quality Management (TQM), and minimum wastage foster the productivity of an organization and enhance Financial Performance (FP).