Human Resource Management Practices: a Comprehensive Review

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Human Resource Management Practices: A Comprehensive Review

HUMAN RESOURCE MANAGEMENT PRACTICES: A COMPREHENSIVE REVIEW
Pankaj Tiwari Shri Chimanbhai Patel Institute of Management & Research Ahmedabad-380051 (India) Karunesh Saxena Faculty of Management Studies, Mohanlal Sukhadia University, Udaipur-313001, India Abstract Human Resource is the most important asset for any organization and it is the source of achieving competitive advantage. Managing human resources is very challenging as compared to managing technology or capital and for its effective management, organization requires effective HRM system. HRM system should be backed up by sound HRM practices. HRM practices refer to organizational activities directed at managing the pool of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals. This paper has been designed to review the existing literature available on HRM Practices. The purpose of this paper is to develop an understanding of HRM Practices and to examine the unique HRM practices implemented by different companies. After reviewing the existing literature on HRM practices, the researchers have found that HRM practices get affected by external and internal factors and directly or indirectly affect other variables such as employee’s attitude, employee employer relations, financial performance, employee productivity etc. and ultimately contribute to overall corporate performance. On the basis of the literature reviewed, a normative framework has been 669 PAKISTAN BUSINESS REVIEW JANUARY 2012

Human Resource Management Practices: A Comprehensive Review

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developed showing how HRM practices leads to overall corporate performance. Keywords: Human resource management, HRM practices, Organisations , Innovative practices, Employees performance. JEL Classification: Z000 I. Introduction

Human resources are the source of achieving competitive advantage because of its capability to convert the other resources (money, machine, methods and material) in to output (product/service). The competitor can imitate other resources like technology and capital but the human resource are unique. According to Khatri (1999), people are one of the most important factors providing flexibility and adaptability to organizations. Rundle (1997) argues that one needs to bear in mind that people (managers), not the firm, are the adaptive mechanism in determining how the firm will respond to the competitive environment. Several scholars have noted that managing people is more difficult than managing technology or capital (Barney, 1991; Lado and Wilson, 1994). However those firms that have learnt how to manage their human resources well would have an edge over others for a long time to come because acquiring and deploying human resources effectively is cumbersome and takes much longer (Wright et al., 1994). The effective management of human resources requires sound Human Resource Management systems. Storey (1995) defines HRM as a distinctive approach to employment management which seeks to obtain competitive advantage PAKISTAN BUSINESS REVIEW JANUARY 2012 670

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Human Resource Management Practices: A Comprehensive Review

through the deployment of a highly committed and skilled workforce, using an array of techniques. HRM can help firms improve organizational behavior in such areas as staff commitment, competency and flexibility, which in turn leads to improved staff performance (Koch and McGrath, 1996). In order to develop a sound HRM system , the organization should have effective Human Resource Management practices.HRM practices refer to organizational activities directed at managing the pool of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals (Schuler & Jackson, 1987; Schuler & MacMillan, 1984; Wright & Snell, 1991). HRM practices may differ from one organization to another and...
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