The HRM is a growing concept. It has tremendous relevance to service sector like hospital. Human input is the single largest input that goes in the hospital industry. The level of efficiency/production of this input gets reflected in the quality of service offered by hospitals to its Patients, as also in its ultimate growth, productivity and profitability. Hence, the hospitals today lay great stress on HRM functions. There are certain implications of the present study for the HR practitioners and the management of these hospitals. First of all, new techniques in employee selection are helping management find the right people to work in today's challenging hospital environment. Secondly, just finding good people is not enough. With technology and Patient demands changing continuously, management must continue to train and develop its people through the new ways to keep a competitive edge. The findings of the study indicate that employee productivity can be enhanced by the use of Innovative HRM Practices. These findings have important lessons for hospitals as well as the other organisations by way of the seriousness of their efforts towards HR system renewal. By empirically testing whether different innovative HRM practices are associated with higher employee productivity, the present study adds to academic knowledge by providing empirical evidence pointing towards the significance of continuous renewal of HRM practices. Moreover, the present study provides an understanding of the nature of innovative HRM practices, whereas a gap exists in the earlier researches where these practices were not analyzed properly, especially in any service organization like hospitals. In the Indian context, evidence for a relationship between good HR practices and employee attitudes and organizational effectiveness was largely anecdotal, coming from industry case presentations. By promoting new HR practices, any organization provides the signal that its human resources are worthy of the firm's investment, attention and time.

Index Terms- HRM Practices, Employees, Job Satisfaction, Hospitals