Human Resource Management: A Rationale behind Organisations’ Value Chain

Abstract

Human resource management is one of the most important support activities of organisations‟ value chain, which is a series of activities the organisation performs in order to sustain in the competitive environment. The human resource management comprises of various human resource practices, viz., performance appraisal system, potential appraisal system, counselling and feedback system, career development system, promotion policy, and training and development system. The survey has been conducted over the fifty retail stores and their customers in the limited locality of the Jammu City selected on the basis of convenience sampling method. The paper studies the provision of human resource practices for the employees in these stores. Further, the performance of these retail stores has been measured on the basis of customer satisfaction and customer retention. Thus, the satisfaction level of employees and its impact on customer satisfaction level and the customer retention have been studied. The results indicate that the organisations with good human resource practices have satisfied employees resulting in satisfied customers and customer retention also.