Human Resource Management : The Globalization And The Free Markets

1448 Words Oct 29th, 2014 6 Pages
1-1 Introduction
The new challenges related to the Globalisation and the free markets have led to a great deal of interest regarding the impact of HRM on the organizational performance. Accordingly, this has led to a remarkable increase in terms of the number of studies conducted in this area. These conducted studies are meant to examine the potential contribution that good HR policy can achieve to improve the performance, as scholars and key figures in this wide area of research have repeatedly called for a better understanding of how HR practices are related to the firms performance, e.g. (Becker & Huselid, 1998; Delery & Shaw, 2001; Batt, 2002; Gong et al, 2009).
Human Resource Management’s (HRM) organizational systems are considered to be the source of sustaining the competitive advantage; this means employees start to represent and to be considered as an important source of competitive advantage (Barney, 1991; Pfeffer, 1994). According to Fey et al. (2008), the choice of HRM’s practices is very significant since firm’s HR have the ability to create high benefits but also it represent the highest cost for the organization which can be controlled.
There are a variety of reasons, which had a big role in highlighting the importance of HRM as an important source of competitive advantage for organizations, notably the emergence of resource-based view, the evolution of the concept of competencies, the emergence of the importance of knowledge, the emergence of the concepts of…
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