Role of HRM Practices in Predicting Organizational Performance- A Study in Indian IT Sector

Rupali Arora; Pratibha

Rupali Arora Professor, University School of Business, Chandigarh University, India
Pratibha Research Scholar, University School of Business, Chandigarh University, India

Keywords: HRM practices, organizational performance, IT sector

Abstract

The main aim of this research paper is to examine the impact of HRM practices on organizational performance in the North Indian IT sector.
The study has used a quantitative approach, with a sample of 400 respondents working in the Indian IT sector. For data analysis, Statistical
Package for Social Sciences and Partial Least Square structural equation modeling was employed. The results of data analysis revealed
that HRM practices have a significant relationship with organizational performance with a beta value of 0.638 and the HRM practices
explain 40 percent variance in organizational performance. The findings state that IT organizations should focus on implementing
fair and effective HRM practices so that the performance of an organization can also improve. The results of the present study imply that
management needs to understand the importance of HRM practices of their organizations in achieving the organizational objectives and
improving the performance outcomes which further also helps in gaining competitive advantage.