Theories Of Hrm Practices

1083 Words 5 Pages
However, this Theory of HRM has been highly criticised due to limitations which stem from inconsistencies surrounding empirical research. Examples of these inconsistencies, which are common within empirical research, include researchers using different practices when examining ‘Best Practice’ relationships and examining different outcomes. In trying to define a set of “best practices” that translates well to all organizations, much difficulty has arisen as researchers have not been able to agree upon a set of practices that all organizations can benefit from. Although there are issues with identifying HR “Best Practices”, certain HR practices have been found to translate well among different organizations. Among HR practices that seem to universalistically …show more content…
Beer et al, (1984) propose competence, commitment, congruence and cost effectiveness as an intermediary variables. Becker and Huselid (1998) identified variables such as employee skills, employee motivation, job design and the work structure link to operating performance which in turn influences the profit and the market value.
The approach of using intermediary variables is adopted in many articles (e.g., Fey et al, 2008; Yesmin, 2008). Guest et al, (2000) argued that employee attitudes and behaviour need to be explicitly incorporated into models of HRM and performance and into related empirical studies if we want to improve our understanding of the HRM-Performance
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Indeed, many studies have shown that ability is positively related to performance (e.g., Gottfredson, 1986; Hunter, 1986). Applications of human capital theory focus directly on the knowledge, skills, and abilities of human beings in organizations (Flamholtz & Lacey, 1981; McKelvey, 1983). Wright et al. (1994:315-6) proposed that higher levels of human capital lead to greater capabilities to develop more efficient means of accomplishing tasks and greater capability to respond to environmental changes leading to a sustained competitive advantage. HRM practices are the levers through which human capital can be developed to increase

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