Question

What are the theories that are related to the link between organisational performance and hrm

Answer 1

Theory of reasoned action aims to establish the relationship between human actions with attitudes and behaviors. This is the only theory which simultaneously connects both the performances and behaviors of the individuals. Thus, it is appropriate for any organization to adopt the theory of reasoned action in order to link both the organizational performance and human resource management sector effectively.

The primary purpose of the theory is to understand the voluntary behavior of any individual by examining the underlying basic motivation to perform any action. Human resource department also works with the employee’s behavioral attribution and connects them with their performances. The basic aim of HRM is to understand the behavioral aspect of the employees and convert them into action.

According to the theory, the intention to perform is the ultimate aspect of behavior to optimize organizational performances. Organizational performance is also dependent on its employees and hence, motivational aspect of them is the most important part in this regard. This theory also contributes normative components to understand whether an employee is actually performing according to his behavior or not.

The key components of the theory are behavior, attitudes, intension, and subjective norms. All of these factors are associated with optimizing the organizational performances by joining with the human resource. Hence, it can be concluded that the theory of reasoned action is the best one to link between organizational performance and human resource management.