Human Resources are the most important asset for any business enterprise and it's far the best resource of achieving competitive advantage Managing human resources is very challenging as compared to managing technology or capital and for its effective management, organization requires effective HRM system HRM practices refer to organizational activities directed at handling the organization of human resources and ensuring that the sources are hired toward the success of organizational goals. The purpose of this study is to explore contribution of Human Resource Management (HRM) practices including selection, training, career planning, compensation, performance appraisal, job definition and employee participation on perceived employee performance. This research describes why human resource management (HRM) decisions are likely to have an important and unique influence on organizational performance.