IMPACT OF HRM ON EMPLOYEES FINANCIAL PERFORMANCE

One of the primary goals of Human Resource Management (HRM) is to increase organizational performance. Nonetheless, few studies have specifically discussed the multidimensional complexity of success and related HR activities with different outcomes. This study therefore adds three outcome dimensions to the literature by referring to HR practice: financial, organizational and employee (HR) outcomes. HR is used to describe the people working for a company or agency as well as the group responsible for handling services relevant to the workers. The word "human capital" was first coined in the 1960s, when attention started to be drawn to the importance of industrial relations. HR plays a critical role in helping businesses cope with a rapidly evolving market climate and a higher demand in the 21st century for high-quality workers. Human resource management is a fairly new way of managing people at any organization. For several of the major corporations the idea of social capitalism dealing with staff members has been adopted. Widespread unemployment during the 1930s Great Depression is widely held responsible for curtailment in the planned cooperative climate. Industry-wide deals could push up labor costs to the point that companies were vulnerable to foreign markets in the increasing international competition. They will also examine how HR strategies affect these aspects of performance, concentrating on the mediating role of work satisfaction. Keyword: Human Resource Management, Organizational Performance, Financial, Organizational and Employee (HR) Outcomes. Introduction An organization's most valuable resource is its PEOPLE or Human Resource this is an undeniable and mostly accepted fact worldwide. Around the same time much of the company's corporate mission statements and financial reports also show the same message. People are the most valuable resource for business within a company. Today's new area of Human Resource Management (HRM) is gaining a lot of attention due to its possible effect on the sustainability and success of an enterprise. Today there is a growing perception that if companies want to succeed and thrive in today's talent-based global economy, they need to obtain, develop and implement expertise and strategies in managing human resources world-class. (Under Darwish, 2013). In the last 50 years , higher management has come to the conclusion that people are the key differentiators of every company, not goods, markets, money, buildings or machinery. Every organisation's assets require human intervention to produce their value. Higher management, industrialists and academics, being aware of this realization, have been in a state of constant quest for methods to increase the degree of employee commitment and activities relevant to his / her job, which eventually boost organizational efficiency. (Shaukat et al., 2015) As per (Dessler, 2013). Theoretical Background Over several years, there has been proliferation among scholars and practitioners in the assumption that individual employee success has consequences over firm-level results. Nonetheless, interest in this field has recently increased, as academics have begun to argue that collectively workers of a company can also have a unique source of competitive advantage that its rivals find difficult to duplicate. For example, Wright and McMahan (1992), building on the company's resource-based theory of Barney (1991), argued that human resources can be a source of sustainable competitive advantage while meeting four basic criteria. What is Human Resource? HR is used to portray both the individuals who perform for a corporation or organization and the department responsible for managing employee-related resources. The term "human resources" was first coined in the 1960s when the value of labor relations began to attract attention and notions such as motivation, organizational behavior and evaluations of selection began to take form. Understanding the Human Resource Department (HRD) An HR department presence is an integral component of any company, irrespective of the size of the organization. An HR department is charged with optimizing the efficiency of workers and defending the JOURNAL OF CRITICAL REVIEWS ISSN2394-5125 VOL 7, ISSUE 01 , 202