The Impact of HRM Practices on Organizational Performance Evidence from Public University in Sri Lanka

The purpose of this paper is to study the impact of human resource management (HRM) practices on organizational performance. A total of 200 employees from a public university comprising of both academicians and non-academicians responded to the survey. The survey questionnaire had 33 items covering selected demographic factors, HRM practices and university performance. The study has found that HRM practices: recruitment and selection, training, performance appraisal, compensation and employee participation have a significant relationship with university performance. Training and performance appraisal gave highest contribution towards university performance. If the university aims to upgrade university performance, it should emphasize more on these HRM practices. Most studies have focused impact on HRM practices in manufacturing sector and this study targeted service sector, especially higher education sector. It also has attempted to add knowledge on the impact of HRM practices on university performance in Sri Lanka combining both the academicians and non-academic staff.