Identification of Best Practice HRMs in NTPC With the help of Statistical Tools

Abstract

The “common Sense of Belief” is that the way people are managed has positive correlation with People performance (Truss, 2001: 1124) and also people can provide a strong source of Competitive advantage to the organisation (Barney, 1995). Also top Management of organisations and Researchers in the field of Human Resources are keen to understand the relationship between Human Resources Management and Organisation performance for quite some time. This understanding provides inputs to Human Resource strategy of organisations to orient their action plans in the required direction to bring in performance oriented culture in the organisation. Organisations design HR policies and develop practices in order to motivate the employees for higher levels of performance, commitment and involvement. Though many practitioners name Human Resource practices those are creating positive impact on organisational performance differently, Boxall and Purcell (2003) suggest that they can be regarded as constituting a loosely defined model of „best practice‟. Johnson (2000) details, “best practice or high performance work practices are described as HR methods and systems that have universal, additive, and positive effects on organizational performance”. Delaney and Huselid (1996) outline that, HRM best practices are designed to enhance the overall performance of employees within the organisation, ultimately resulting in increased organisational performance. One such study was done to provide input to Management about the impact of Human Resources practices/Policies on organisational performance in NTPC by defining “Best Practice HRM” as the HR Practice that is significantly impacting positively more than 5 HR Results with the premise that HR results influence other outcomes of organisation such as Economical and societal results also. For this purpose 26 Practices/Policies of HR of NTPC have been considered and their influence on each of the 13 HR results is checked. Following HR Practices are found as “Best Practice HRM” in NTPC. • Pay Structure. • Job Security. • Township Facilities. • Safety. • Recreation Facilities