HRM-Performance Perspectives: An overview of Theoratical Challenges and Prospects

Abstract

The research on human resource management (HRM) and performance claims a significant positive relationship;However, some researchers doubt this relationship. This paper evaluates the literature on HRM-performance relationship and concludes that there exists significant theoratical challenges. The review of available literature pertaining to HRM practices reflects that there is a long list of HRM practices but researchers have no consensus on common practices. The review of high performance work system (HPWS) help us to conclude that inspite of heavy research work on bundling of HPWS; consensus could not be arrived at some common structure. similarly, we provide an overview of existing HRM-performance perspectives and concludes that some perspective provide good theoratical and practical base for HRM-performance linkages. However, there exist deficiency in literature concerning the alternative perspective (Boselie et al.,2005). This paper further reviews the concept of black box and concludes that there exist theoratical gaps and misconceptions in HRM-performance relationship. We also provide an insight of performance and conclude that majority of researchers have focused on share holder appraoch, while stake holder appraoch is largely disregarded. Finally, this paper reviews organization justice( OJ ) as an alternative option and concludes that majority of HRM practices are covered in OJ, and its four existing dimensions. OJ has a great scope to provide vast space to cover HRM practices not only in a greater number but it also gives a sense of ' fairness/ justice' and substantiates the value and importance of HRM practices.