What contribution does human resource management brings towards its Literature review

What contribution does human resource management brings towards its employee related performance - Literature review Example Properly designing and measuring performance is one of the basic and decisive steps that HR can do to affect performance. Performance can also be effectively raised by considering the intersections between individual, team, and organisational motivations. Some studies agree that HR can influence performance, primarily through affecting employee attitudes and behaviour (Tsai, Edwards, & Sengupta 2010), but the causal relationship between the two is said to be more complex (Nishii, Lepak, Schneider 2008). Niishi et al. (2008) explore the right interpretation of HR efforts from the individual perspectives of employees, in order for the target attitudinal and behavioral changes to be achieved. This paper seeks to explore how HR affects employee performance. After carefully reviewing literature, findings showed that HR practices can impact individual performance through an effective performance management system and it can raise team and organisational performance through mediating factor s, such as performance management, emotional intelligence building, collaboration, and affecting organisational culture and employee engagement and satisfaction. Performance of the individual, teams, and the whole organisation Human resource management has evolved to strategic HRM, which designates HR manager as strategic allies to managing performance (Zink 2008). In particular, it is engaged in management development, organisational culture, appraisal system, discipline, environmental issue, diversity, culture, and HR policy dimension (Nemiro et al 2008). Though some still assert that HR should only focus on human resource performance, there is growing evidence that HRM can directly affect performance across different levels, by creating different systems that can impact organisational performance (Tsai et al. 2010; Nishii et al. 2008). Sources argue that HR practices can impact individual performance through mediating effects on perceptions of the connection between reward and pe rformance and management skills. Properly designing and measuring performance is one of the basic and critical steps of performance management. HR can create an effective performance management system to impact individual, team, and organisational performance (Chuang & Liao 2010). Tsai, Edwards, and Sengupta (2010) build on and test an alternative view of the association between HR and organisational performance. Their model argues that organisational performance affects employee attitudes and that the performance-attitude relationship is mediated by HRM practices. To test their model, they conducted management interviews and employee surveys for thirty-two small firms in the Midlands of England that come from diverse industries. Findings showed that HRM practices are directly related to two measurements of employees' attitudes: â€Å"perceptions of management skills and the perceived link between reward and performance† (Tsai et al. 2010, p.15). This provides evidence that H RM can impact links between reward and performance. Chuang and Liao (2010) and Zhang and Li (2009), however, specifically argued for the importance of high-performance HR practices, which focus on concern for internal and external customers to achieve better market performance. In improving team performance, the rewards system must rationally inspire team performance measures (Nemiro et al. 2008). An appropriately-designed reward and pay system can motivate individual members to work as a team (Nemiro et al. 2008, p.63). This means that HR performance management efforts and tools must promote collectivity among individual members, so that each member values and respects each other’s impact on the total team performance. Rajagopal and Rajagopal (2008) investigate team performance in the article, â€Å"Team performance and control process in sales organizations.† The researchers observe that the main characteristics of a good team are that they