One of the most important organizational functions is attracting hiring and appraising employees. These
processes are Central to organizational effectiveness. Organizations who view their workforce, not just as
a cost of doing business, but as a valuable asset, that can contribute to overall effectiveness an
organizational strategy will definitely demonstrate a competitive advantage.
More and more organizations are beginning to view their Workforce in this way.
And in the context of hiring HR professionals are in a unique position to make an important contribution
to organizational effectiveness and productivity.
The research on the impact of the selection practices, on organizational performance shows that
selection practices contribute not just to individual performance, but also to overall firm performance
and operating performance.
Authors Combs, Liu, Hall and Ketchen wrote in an article in Personnel Psychology in 2006, that is a metaanalysis which is a study that combines the results from many studies to render a clear picture of true
relationship between a set of variables.
In their meta analysis, they show that HR practices have a statistically significant and managerially affect
on relevant performance as measure through both financial and operating measures of performance.