Based on the social exchange theory and resource-based view, this study aims to examine the relationship between hard human resource management (HRM) practices (job description, performance appraisal, downsizing and outsourcing, and work hours and intensification) and organizational performance, as well as between soft HRM practices (training and development, employee involvement and participation, communication and work–life balance) and organizational performance.
A questionnaire survey was conducted among 338 human resource (HR) managers of different information technology companies in India. The sample was selected based on a stratified random sampling method. Hierarchical component modeling was conducted for hard HRM practices, soft HRM practices and organizational performance. Partial least squares structural equation modeling was used to evaluate the model and hypotheses of the study.
The findings indicate that training and development, employee involvement and participation, communication and Work–life balance positively influence organizational performance, demonstrating a significant effect. Moreover, job description, downsizing and outsourcing and work hours and intensification significantly influence organizational performance. Among soft HRM practices, communication exhibits the strongest relationship, highlighting its critical role. While downsizing and outsourcing emerge as the most impactful among hard HRM practices. In contrast, performance appraisal within hard HRM practices does not show significant impact on organizational performance.
This study uniquely integrates hard and soft HRM practices within a single framework, offering a comprehensive view of their impact on organizational performance. It advances HRM theory within knowledge-intensive sector and offers fresh perspectives for HR practitioners aiming to strategically optimize their workforce.
