The Relationship Between Employees’ Skills And Organizational Performance

This paper combines employees’ skills with company’s innovation strategy and organizational performance in software industry of Shandong province to study the working mechanism inside. This paper provides some significant suggestions on how to improve company’s organizational performance through innovation of employees’skills in software industry.The paper has reviewed theories of employees’ skills and company’s innovation strategy and organizational performance by relevant literature at first. Based on these theories, this paper provides six hypotheses and establishes a research model. Then analyzed the data from questionnaire survey of 112 software companies in Shandong with the model, reliability and validity of the data has been analyzed by SPSS 17.0. At last, correlation analysis and regression analysis between variables has been done with SPSS 17.0.Results show that companies with radical innovation strategy tend to hire employees with universal skills, companies with gradual innovation strategy tend to hire employees with Special skills. Employees’ special skills have a significant positive correlation with process innovation. In addition, ithe results show that innovation strategy plays a regulatory role between employees’ skills and organization performance.At last, this paper provides theoretical foundation and practical direction to the software companies’ innovation activities. The direction of future research on this topic has been prospected.