The Impact of HR Activities on Organizational Performance

Abstract

Human resource management is a factor in increasing the competitiveness of the company and the national economy as a whole, an essential factor of economic and social progress. Furthermore, human resource management contributes decisively to the harmonization of individuals' interests with the enterprises' objectives, to the harmonious interweaving of economic reasons with social reasons, both within enterprises and at the scale of the entire sector and the national economy. The paper studies and evaluates the impact of various human resource management activities on organizational performance, which is determined by the efficiency and effectiveness of human resources. Following the application of structural equation modeling to identify relationships, we concluded a significant influence of HR activities on organizational performance. Working relationships and conditions are the most critical activity that significantly impacts organizational performance.