The importance of an organization's human resources has become increasingly apparent as firms respond to a growing demand quality, decreased turnaround time and lower cost, all part of our globalized and highly technological market place. Research has...
The importance of an organization's human resources has become increasingly apparent as firms respond to a growing demand quality, decreased turnaround time and lower cost, all part of our globalized and highly technological market place. Research has traditionally focused on the effects of separate HR practices on individual-level outcomes. However, it has become apparent that research aimed at individual components of an HR system is not sufficient to identify optimal practice. Research efforts have begun to focus on a strategic systems approach, one focusing on organizational outcomes which examine the fit of all HR components, not only with each other, but with the organization's strategy, technology, and/or work design practice. Recent studies have begun to suggest an economically significant link between a firm's choice of HR systems and firm performance.
The limitations of this research suggest that our assessment be interpreted cautiously.
Measures of HRM practice that can be constructed from the panel data set are incomplete. For instance, training, as an independent variable, was constructed by four questions regarding weather there are formal job training programs for employees at different levels.
The findings help to explain why some firms outperform others using the same strategy.