UNDERSTANDING HRM- PERFORMANCE RELATIONSHIP: MODERATING ROLE OF HRM SYSTEM STRENGTH

Abstract

In the last three decades or so, a considerable body of research has been dedicated to investigate the linkage between human resource practices and organizational performance. Though empirical research proposes that the relationship between human resource management (HRM) and organizational performance is positive (e.g., Boselie et al., 2005; Combs et al, 2006), but studies show that this relationship is weak (Paauwe, 2009), and the explicit methods are not clearly mention through which HRM impacts organizational performance (Buller & McEvoy, 2012). All of this happen because the empirical research varies regarding definitions, measures related to HR practices and performance, levels of analysis, and theoretical foundations (Guest, 2011; Paauwe, 2009)