Human Resource Management Literature Review

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This part of study literature review includes available research relating to the dimensions identified in introduction. The material incorporated in this chapter is taken from different resources.

1) Author: Guthrie Year: 2001 Source/journal: Academy of Management Journal Findings: Review of the article enabled the following understandings,

This literature focusses on the impact of firm’s industrial relations or strategic human resource management systems in increasing organizational performance. This article states about the High-Involvement Work Practices, Turnover, and Productivity of an organization. High work involvement practices represent a significant investment in human capital.
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This literature is largely conceptual and concludes that human resource management practices can help to create a source of sustained competitive advantage especially when they ae aligned with firm’s competitive strategy. The firm’s potential human resources are the important considerations for the development and execution of its strategic business plan. The belief that individual employee performance has implications for firm-level outcomes has been prevalent among academics and practitioners for many years. Thus, the literature clearly suggests that the behavior of employees within firms has important implications for organizational performance and that human resource management practices can affect individual employee performance through their influence over employee’s skills and motivation and through organizational structures. This study departs from the other resources literature in three ways. First, the level of analysis used to estimate the firm-level impact of HRM practices is the system, and the perspective is strategic rather than functional. This approach is supported by the development and validation of an instrument that reflects the system of High Performance Work Practices adopted by each firm. Second, the analytical focus is comprehensive. The dependent variables include both intermediate employment outcomes and firm-level measures of financial performance. Third, this study also provides one of the first tests of the prediction that the impact of High Performance Work Practices on firm performance is contingent on both the degree of complementarity or internal fit or external fit. This literature, although largely conceptual, concludes that human resource management practices can help to create a source of sustained competitive advantage, especially when they are aligned with a firm's competitive strategy