IMPACT OF HR PRACTICES ON ORGANISATIONAL PERFORMANCE: A CRITICAL REVIEW ON EASTERN AND WESTERN LITERATURE PERSPECTIVES

The study aims to review the influences of HR practices on organizational performance in eastern & western countries and also to identify the similarities and contrast between eastern and western literature in this regard. The study found that in eastern countries organisational hierarchy is strictly followed and autocratic leadership style is used, western countries used democratic style and organisational structure is flatter. Western countries give much importance to individual reward & compensation package and personal career management, eastern countries value collective reward and steady progression, promotion and rewards were given on seniority basis. It is also found that different studies in both countries i.e. western and eastern used different HR practices to examine the HRM-Performance linkage. Some practices show positive relationship and other shows no relationship with organisational performance. However, in eastern countries which are included in this study practices like training, performance appraisal, compensation, recruitment, employee participation generally have positive impact on performance. In western countries also HRM practices based on HPWS like selection, team work, employee participation, training, compensation, single status etc shows positive relation with performance.