The Nexus Between Human Resource Management And Organisational Performance

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Introduction The nexus between human resource management and organisational performance represents an issue of strategic importance to organisations. Hence, many HRM practices were regarded as being more important than others in contributing to organisations’ competitive advantage. ( Delery and Doty ,1996 ; Tzafrir, 2006 ). Several HRM practitioners and academics tried to integrate such useful practices into a ‘set’ that can be universally applicable to all organisations. ( MacDuffie 1995 ; Pffefer 1998 ; Wood 1995 ) . However, that last two decades witnessed increasing studies that acknowledged the significance of context and strategy when identifying HRM practices that are vital to success. ( Boxall and Purcell 2011 ; Clinton and Guest…show more content…
Moreover, even those who argue against this universal model, admit the importance of taking lessons from it. (Boxal and Purcell 2011) . The purpose of this essay is not to engage in the broad debate regarding universalistic and contingency approaches of HRM, but to assess empirically; to what extent a universal approach can fit with different strategies and be applied in different contexts. Thus, it will be argued that although strong evidence exists in support of best fit approaches, a best practice approach that improves organisational effectiveness can be applied to a certain level in organisations. This essay attempts firstly, to unpack the complications of universalism in HRM by laying out what best practice or high commitment HRM is, the notion of bundling,links to performance, and best practices’ position compared to other approaches, emphasizing strategic fit and context . Secondly, it presents and evaluates the empirical evidence for and against universalism and examines its effectiveness when used in organisations. Lastly, it concludes with a summary of arguments presented and identifies a point on the scale of universality in HRM in light of evidence stated in the work. What is Best Practice HRM? According to Beardwell et al (2004), the introduction of best practice HRM was a key contribution to strategic human resource management. The advocates of this approach demonstrate that organisations will improve their
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