Impact of University's Optimal Human Resource Management Practices on Organizational Performance

Abstract

This study explored the construction of the university optimal human resource management practices (OHRMP) and the impact of OHRM on organizational performance. A sample of 700 staff from 7 universities in China was used for data analysis by structural equation modeling. The result indicated that (i) OHRMP were composed of staff recruitment and allocation, motivation mechanism, participation, and performance management, and (ii) organizational performance was composed of staff satisfaction, teaching and research performance, society satisfaction, and financial performance. Further, the result also showed that (i) staff recruitment and allocation have significantly a positive impact on staff satisfaction and society satisfaction, and (ii) motivation mechanism has significantly a positive impact on teaching and research performance and financial performance, and (iii) participation has significantly a positive impact on society satisfaction; organizational performance management has significantly a positive impact on staff satisfaction. Implications for management theory and practice are discussed.