Role of Good HRM on a Positive Financial Success

Role of Good HRM on a Positive Financial Success

Human resources are widely regarded as the most valuable asset an organization possesses. A significant amount of attention must be paid to human resource management to achieve its goals. Successful human resource management contributes to achieving three fundamental objectives of each enterprise: survival, growth, and income increase. It also provides them with a confrontation with competitors in the market, which is extremely cruel. A company’s financial performance comprises two components: financial effectiveness and profit. Profit evaluates the return on the investment and the return on assets, whereas economic efficiency controls the sales revenue and the net profit margin, respectively.

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Role of Good HRM on a Positive Financial Success
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One of the subjects of this paper is an examination of the relationship between various human resource practices and the economic condition of businesses in different industries. Consequently, the purpose of this research paper is to determine the best HR practices based on the financial performance of the companies. The paper’s methodology includes the following steps: descriptive and comparative methods, followed by a questionnaire and an econometric model to test this relationship empirically. All of this is done using the IBM SPSS v.23.0. The research uses current literature and publications in human resource management activities and financial performance.

Nothing is completed in an organization without the participation of its members.


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