Human Resource Management (HRM) has mature extremely popular over the past decades, and it's currently a standard characteristic for nearly all larger firms and plenty of smaller ones. one in every of the explanations for this quality is that the assumption that HRM could be a supply for competitive advantage and can influence the organisational results and performance in a positive direction. The thesis takes a more in-depth consider the probable relationship between HRM and performance. the most plan behind the time unit M-performance presumption is that HR practices have an effect on the employees’ attitudes and behavior, that any affects the operational performance, like productivity, quality and innovation, that successively have a positive on impact on the monetary and market performance. an oversized quantity of empirical proof support such a positive relationship between HRM and organisational performance. However, there also are critics commenting on the analysis field’s method limitations. thanks to these method limitations the empirical proof for a positive link is weakened. These limitations include: range of respondents and their role within the organisation, analysis style, analysis execution and interpretation, and a scarcity of attention to influencing variables and also the risk of a reversed relationship.