The Importance Of HRM Practices

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Not all organisations have sole objective of achieving competitive advantage and RBV approach can be introspective without much consideration of socio-political and economical environment (McKenna and Beech, 2008). As this suggests that each corporate environment and requisite strategy are “unique, complex and dynamic” therefore, HRM practices and their implementation in organisation will also be “unique, complex and dynamic” (Buller and McEvoy, 2012, p.53). Individual HRM practices that are not aligned, horizontal integration fit do not outperform the other approaches (Paauwe and Boselie, 2006). Gerhart’s (2004) displays a critical analysis of “those who claim that form of internal fit – alignment of practices with each other – out performs the lack of this type of fit” (Paauwe and Boselie, 2006, p.69). However, Boxall and Purcell (2003) clarify that both elements have similar intention but with different implementation approach towards it. Beer et al (1984) Harvard model of HRM addresses balance between HRM best fit and…show more content…
Whereas, SME family businesses investing on HRM practices such as training and development depends on the level of performance of the organisation, even though they recognise the value of its importance (Reid and Adams, 2001). This indicates that level of performance and affordability of the organisation can also be integral factors to determine the implementation of HRM practices within a business. There is a vast amount of literature that revolves around the positive effects of high commitment HRM practices on organisational performance, but far little evidence to evaluate and substantiate the effects on individual workers (Williams, 2004). Boselie, Dietz and Boon (2005, p.81) argues that due to “sheer variety of methods used for measuring” the linkage between HRM and performance, various different studies makes it difficult to compare

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