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HRM practice and firm performance

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HRM practice and firm performance
Resume: Human Resource Management Practice and Firm Performance
By : Syndicate 2

Human resource management Practices (HRMP) to have positive influence and give impacting on organizational performance through a “high road” approach which has become a key element in HR literature. High road approach means that some HRMP are universalistic, appropriate and advantageous for all firms. According to universalistic perspective, there is a simple direct relationship between HRMP and organizational performance. Therefore, organizations from different sectors through different time periods should use HRMP. Unfortunately, researchers who assert the universality of certain HRMP are fail to agree what constitutes those practices. The multiplicity of what constitutes universalistic HRMP represents a challenge to organizational scholars.

There are three main respects in order to contribute to HR literature based on universalistic perspective discussion: First, investigates any difference in the relationship between HRMPs and organizational performance across time, stable or not. Second, uses the same instruments for measuring HRMP at different points in time, thereby extending the power of our results while limiting our ability to influence them. Third, Find out whether the positive correlation between HRMP and performance found in the US also appears in other countries.

A increased significance of human resources as part of an organization’s tangible and intangible resources having the potential for continuous organizational success because of decreasing in the magnitude of traditional sources of competitive success. New paradigm of HR views management as the primary actor in the employment relationship and relates to HRMP as good things”. There is consensus agree that HRM practices would directly influence organizational performance, independent of other external and internal organizational factors, even though some research also found that there is no direct

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