IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE AND EMPLOYEE RETENTION IN THE IT INDUSTRY: A STUDY IN CHENNAI CITY

Using successful HRM strategies will enable
businesses in the very competitive information technology
industry to improve organizational performance and staff
retent ion. Fast development of the information technology
sector in Chennai, a major center for information technology
in India, has led to an increase in employee turnover and
difficulties in maintaining a competent workforce. This study
intends to investigate, among Chennai's information
technology companies, the effects on organizational
performance and employee retention of human resource
management practices including training and development,
performance assessment, compensation, and employee
engagement amo ng others. The approach used is a mixed mixed-method one combining qualitative and quantitative inquiry.
350 top information technology companies in Chennai
answer a structured questionnaire in order to compile data
on a variety of human resource management stra tegies and
their effects on employee performance and retention. To find
the kind of the link between HRM practices and
organizational performance, the gathered data is subjected
to statistical modeling techniques including regression
analysis and structura l equation modeling (SEM). The
findings reveal that although employee engagement helps the
business to operate generally, employee satisfaction and
retention mostly depend on compensation, performance
evaluation, and training of employees.