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In an era of rapid globalization, environmental change, and intense competition for providing innovative products and services, performance has become a standard frame for enterprises all over the world. As competing in an effective manner has become a priority, firms are required to improve their performance. Today, one of the major organizational goals is performance. Owing to the goal, various research efforts in the field of human resource management have been inclined at guiding the understanding of the linkage between HRM and performance. Much of the empirical studies on the enhanced value of HRM provide evidence for significance of HRM in high performance label. However, Wall and Wood (2005) challenge the assumption for linkage between HRM practices and improved performance level of the organization stating that the linkage should be treated with caution. The objective of the paper is to critically analyse the statement of Wall and Wood (2005) through analysis of the role of HR department and HR practices and discussion on the linkage between organizational performance and HRM practices. The analysis is aimed to understand whether a linkage between the two is always direct or not. This article does not include the study of specific organizational settings that are unique to every organization, such as organizational culture, policies and values.