HR in Reinventing its Fundamental Practices to Gain Competitive Advantage: A Reflection of Innovative Performance Management Practices of HR in Indian Private Insurance Companies

Abstract

Purpose:The purpose of the study is to understand effectiveness of Innovative Human Resource Practices (IHRPs) in reinventing its fundamental practices to gain organization's competitive advantage through their Employee Performance, Organization Commitment and Firm Performance. Design/Methodology/Approach: Interviews were conducted among 15 HR experts of the Indian Private Insurance sector to determine the major principles and strategies involved in Innovative HR practices within the sector. Further, a survey was conducted among 450 employees to understand the influence of different IHRPs on employee performance, sense of organizational commitment among them and also, the overall firm performance. In order to test the hypotheses, interview data were analysed using Content and Thematic analysis, and the survey data was analysed statistically (Correlation and Regression), using IBM SPSS v21.0 software. Findings:Interview transcripts analysis revealed that there are seven major strategies relevant in the insurance industry, including, talent acquisition, digitalization, performance management, and employees being relevant in a VUCA world, redefining diversity, workspace changes and data analytics. The survey further confirmed that these practices significantly improve Competitive advantage of the organizations through employee performance, organizational commitment and firm performance within the targeted insurance companies, thereby, establishing their importance in the Indian Insurance sector perspective. Practical implications:The findings of this study can be used by managers of private insurance companies in India to change the principles and strategies of existing HR department. Subsequently, they can introduce practices cantered on digitalization, talent acquisition and management, and using data analytics tools to improve employee performance and overall business processes.