A Study on the Relationship between Human Resource Management Practices and Organizational Performance

The main goal of this study is to investigate the relationship between organizational performance variables and Human Resource Management practices. Workforce planning, training and development, performance appraisal, rewarding, firm-employee relationship, and internal communication are used as human resource management practices. Employee turnover rate, employee productivity, and sales are used as organizational performance variables. The results are collected by survey from 108 companies which are the members of Istanbul Chamber of Industry (ICI). Analyses show that workforce planning has a significant effect on employee productivity and sales, but no significant effect on employee turnover rate. The results also show that employee turnover rate is negatively associated with employee productivity and sales.