Human Resource is the most important asset for any organization and it is the resource of achieving competitive advantage. Managing human resources is very challenging as compared to managing technology or capital and for its effective management, organization requires effective HRM system. HRM system should be backed up by strong HRM practices. HRM practices refer to organizational activities directed at managing the group of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals. The purpose of this study is to explore contribution of Human Resource Management (HRM) practices including selection, training, career planning, compensation, performance appraisal, job definition and employee participation on perceived employee performance. This research describe why human resource management (HRM) decisions are likely to have an important and unique influence on organizational performance. This research forum will help advance research on the link between HRM and organizational performance. Unresolved questions is trying to identify in need of future study and make several suggestions intended to help researchers studying these questions build a more cumulative body of knowledge that will have key implications for body theory and practice. This study comprehensively evaluated the links between systems of High Performance Work Practices and firm performance. Results based on a national sample of firms indicate that these practices have an economically and statistically significant impact on employee performance. Support for predictions that the impact of High Performance Work Practices on firm performance is in part contingent on their interrelationships and links with competitive strategy was limited.
