Impact of HR Practices on Organizational Effectiveness

Abstract

The purpose of this paper is to identify the factors for both HR practices and organizational effectiveness along with what extent HR practices impact organizational effectiveness. The data were randomly collected from faculty working in engineering colleges located in around Chennai. An analysis of the data identified compensation, employee performance evaluation, recruitment and selection and training practices are the important HR factors. Similarly, employee recognition, development and encouragement, organizational policies and procedures, and organizational structure are the factors identified for the organizational effectiveness after analyzing the results generally are in tune with previous studies. Regression analysis was applied to test the impact of HR practices on organizational effectiveness, and it is found that there is a strong relationship between the two. It highlights compensation practices are the crucial element of HR practices and have a significant impact on the organizational effectiveness.