International Journal of Engineering and Information Systems (IJEAIS) ISSN: 2000-000X Vol. 1 Issue 9, November – 2017, Pages: 165-178 www.ijeais.org 165 The Impact of Human Resource Management Practices on Organizational Performance Moazzma Mehmood 1 , Muhammad Awais 2 , Muhammad Moiez Afzal 3 , Iram Shahzadi 4 , Usman Khalid 5 Department of Human Resource Management, Gift University, Gujranwala, Pakistan 1 Department of Business Administration, University of the Punjab, Gujranwala, Pakistan 2. 3 & 4 Quaid-e-Azam University, Islamabad, Pakistan 5 Abstract—The purpose of this study is to examine the impact of human resource management practices on organizational performance. A total of 90 employees from public and private universities comprising of both academicians and supporting staff responded to the survey. The survey questionnaire had 49 items covering selected HRM practices and universities performance. The findings suggested that management might be able to increase the level of the commitment in the organization by improving satisfaction with compensation, policies, and work conditions. Companies should involve their employees as they are viewed as an indispensable source of competitive advantage. One way of increasing the job satisfaction at the workplace is expanding the interactions level with employees in staff meetings and rising guided discussions of topics related to these issues. Open communication or information sharing promote fast decision making. It will influence commitment and job satisfaction among employees. If the employees are well aware of the organization environment, their duties, and objectives, they can better perform their tasks, and it helps the organization to enhance their productivity. A highly committed and competent workforce allows companies are succeeding these strategies and gain a competitive advantage as long as these procedures are communicated and the workforce is involved in both the formulation and implementation phases. Keywords—Training, performance appraisal, employee participation, job definition, compensation, employee job satisfaction, organizational performance 1. INTRODUCTION Organizational performance is the overall growth of an organization (Drucker, 2002). Human resource is the most important asset in any organization. It is necessary for the organizations to manage their employees effectively and efficiently. Human resources play a vital role in any organization. It, thus, requires the considerable attention of the management so that employees can work up to their full potential (Ahmad & Schroeder, 2003). Human Resource means individuals or staff or workforce within the boundary of an organization they are responsible for performing the tasks assigned to them and they aim to meet the organization objectives and make the profit. Human resource can provide a sustainable competitive advantage by giving them different practices (Huselid, 1995). A company's success depends upon the people who are working in the organization. Human resource considered more important asset in any organization (Vlachos, Tsamakos, Vrechopoulos, & Avramidis, 2009). In any organization, the employees must be treated as a valuable asset; the organization's mission will be achieved in a better way if their skills would be developed. In the presence of the competitive environment, the success of any organization depends upon the capabilities and the caliber of their Human Resource and their programs and practices (Rehman, 2011). If there are no human resource management practices, then company always face the difficulties and not able to perform in the competitive society. Company current and potential human resources are essential considerations in the development and for the execution of its strategic business plan (Huselid, 1995). Human resources include individuals, staff or workforce within or even outside the boundary of an organization who are responsible for performing the tasks assigned to them. The main aim of an organization's human resource team is to help the organization in achieving its objectives. Human resource helps the organization in making sustainable competitive advantage (Huselid, 1995). Human capital, at times, is irreplaceable (Awan & Sarfraz, 2013). Despite this enormous importance of human capital, organizations don't pay attention to their employees. An organization should consider it's employees’ valuable asset as employees contribution to the organization will help the organization in achieving its vision and mission. The capabilities and skills of human resources help the organization in surviving in the competitive environment (Rehman, 2011). The effectiveness of even highly skilled employees will be less if they are not motivated to perform. However, HRM practices can affect employee motivation by encouraging them to work both harder and smarter (Huselid, 1995). The employee participation encourages the employees it boost the employees in an organization (Syed & Yan, 2012). Likewise, Lew (2009) noted that employees play a strategic role in Corresponding Author’s E-mail: 26awais@gmail.com