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Strategic Human Resource Management Literature Review

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The matching model by Fombrun et al. (1984) asserted that HRM system and the organizational
structure should be managed in a way that is congruent with organizational strategy Beer et al (1984)
defined HRM as that which maximizes organizational integration, employee commitment, flexibility
and quality of work. Personnel management includes tasks that are conventionally more traditional
and routine. Such differences in business philosophies may often reflect on HRM strategies also.
Recently, the strategic role of the HR field and linkages between business and Hr strategy have been
the subject of extensive discussion. It provides a clear overview of the subject, but then, the topic is
vast. Industrial and Labor Relations Review 64(3): 526-557. Many approaches have contributed to
management thinking during different periods and have influenced the development of HRM (Price,
1997). The HR architecture of a firm is comprised of the practices, competencies, systems, and
performance of human resources which is a reflection of the management and development of an
organization's strategic human capital. Becker et al. (2001) included strategic performance
management as an additional competency. As has been indicated in the past literature, high-
performance work systems includes trainings beyond job, member of staff participation, information
sharing, reward mechanism based on groups investigated company linking strategic human resource
management and organizational performance exists. Such organizations thought that remuneration is
the only factor which motivates the employees to deliver the goods. Hence, it has no meaningful role
in strategy formulation or strategy implementation. In India, the ruling UPA coalition front is led by
a lady; Sonia Gandhi whereas Indian parliament (Loksabha) speaker is another lady; Meera Kumar.
The companies must focus on its HR practices to create and sustain competitive advantage. If
properly instituted it could bring cost savings through a certain degree of centralization and better
decision making through corresponding decentralization. The prominence of connecting HRM
policies to managerial strategy was due to the increase of resource-based view. It has large number of
critics as well like Penny (T-Mobiles) who is of the view that consultants and academia are over
projecting its benefits while organizations are following the trend of shared services as a fad. The
hard model of HRM focuses on the crucial importance of the close integration of HR policies,
systems and activities with business strategy on HR systems to achieve the strategic objectives of the
organization. Sabder Mollah Download Free PDF View PDF Evaluating the Importance of Strategic
Human Resources Management in Enterprises Dr. Kamran Yeganegi ( PH.D.) A B S T R A C T
Strategic human resources management is an approach to decision making on the organization's goals
and plans in the form of policies, programs and operations related to employment, recruitment,
training, and improvement and management of performance. The identified practices have been
addressed as high performance work practices for instance innovative work practices such as team,
job rotation, quality circles and TQM (Osterman, 1994) participation and empowerment, incentive
pay, employment security, promotions training, and skill development: using the best practices
approach results in high productivity and profits. Through extensive research and studies on human
resources management, my objective is to become evidence-based HRM. The concept of HRM has
generated a lot of attention from researchers since it first emerged in the 1980's. The International
Journal of Human Resource Management 22(12): 2522-2538. Way, S. A. and Johnson, D. E. (2005)
Theorizing about the Impact of Strategic Human Resource Management. Apart from citations for the
purposes of research, private study, or criticism and review,no part of this publication may be
reproduced, stored or transmitted in any other form without prior written permission by the
publisher. Until recent times, Prathibha Patil was India’s president. “Historically, India has been a
male dominated society. Therefore, we use a set of 20 qualities to characterize each book by its
strengths. All the other organizational resources such as machines, money and materials, need the
supervision from human resources for proper utilization or mobilization. Questions began to emerge
however regarding the nature of human resource management as a discipline with many scholars
and businesses criticizing it for lacking in credible theoretical foundations. One of the primary
purposes of the human resource management is to enable the work force to reach maximum levels of
efficiency. Asia Pacific Journal of Human Resources 45(3): 261-270. Buller, P. F. and McEvoy, G.
M. (2012) Strategy, Human Resource Management and Performance: Sharpening Line of Sight.
International Journal of Manpower 26(5): 434-449. Chow, I. H., Huang, J. and Liu, S. (2008)
Strategic HRM in China:Configurations and Competitive Advantage. It seeks to enhance
organizational performance, employee needs and societal well being. One of the most important
factors in seeking to quantify wage level within a given firm or organization is the internal factor of
compensation policy. The hard model of HRM focuses on the crucial importance of the close
integration of HR policies, systems and activities with business strategy on HR systems to achieve
the strategic objectives of the organization. Management of diverse workforce is extremely is
difficult compared to the management of single cultural workforce. Industrial and Labor Relations
Review48(2): 197-221. McClean, E. and Collins, C. J. (2011) High-Commitment HR Practices,
Employee Effort, and Firm Performance: Investigating the Effects of HR Practices Across Employee
Groups Within Professional Services Firms. Human Resource Management 50(3): 341-363.
Devolution would also have a positive effect on HR construed image and help to enhance their
effectiveness (Baruch, 1997; Tsui, 1987). Within such a context there are ultimately two basic
approaches that can be engaged with. The conclusion from review shows that variables used in
various studies are business strategy, human resource management system, human resource outcomes
and organizational performance. Further, HRBP model should be adopted to assist line managers in
HR related work. In today’s competitive environment, organizations are increasingly looking forward
to ways and means to achieve and sustain competitive advantage for profitable returns. It is
concerned with the pattern of planned HRD and activities intended to enable an organization to
achieve its goals. The identified practices have been addressed as high performance work practices
for instance innovative work practices such as team, job rotation, quality circles and TQM
(Osterman, 1994) participation and empowerment, incentive pay, employment security, promotions
training, and skill development: using the best practices approach results in high productivity and
profits. This strategy has several distinguishing characteristics; it is diversified, management-driven,
values-focused, commitment-oriented and, as much as possible, tailored to the individual employee.
We use cookies to create the best experience for you. Academy of Management Journal 39(4): 802-
835. Dess, G. G. and Robinson Jr., R. B. (1984) Measuring Organizational Performance in the
Absence of Objective Measures: The Case of the Privately-held Firm and Conglomerate Business
Unit. European Management Journal 28: 25-39. Katou, A. A. (2012) Investigating Reverse Causality
between Human Resource Management Policies and Organizational Performance in Small Firms.
Management Research Review 35(2): 134-156. Kaufman, B. E. and Miller, B. I. (2011) The Firm’s
Choice of HRM Practices: Economics Meets Strategic Human Resource Management. The HR
architecture of a firm is comprised of the practices, competencies, systems, and performance of
human resources which is a reflection of the management and development of an organization's
strategic human capital. Same way, Americans and Europeans shake hands to mark their respect
towards others whereas Chinese people bow their head in front of others to mark their respect. It
provides a clear overview of the subject, but then, the topic is vast. Some tips how to write good
academic major aspects of Norse mythology, study the main. European Journal of Economics,
Finance and Administrative Sciences 24: 157-175. Khan, N. R., Awang, M. and Zulkifli, C. M.
(2013) Enhancing HR Outcomes through Best HR Practices and Organizational Commitment: A
Conceptual Schema for SMEs. PM is seen as non-strategic, reactive, short term and constrained by a
limited definition its role in dealing with unionized and lower level employees (Miller, 1989). In
general, it facilitates the end of research gap. Therefore, women got mainly clerical and secretarial
jobs in the past. The International Journal of Human Resource Management 21(9): 1351-1372.
Lepak, D. P., Liao, H., Chung, Y. and Harden, E. E. (2006) A Conceptual Review of Human
Resource Management Systems in Strategic Human Resource Management Research. Journal of
Chinese Human Resource Management 3(2):136-150. Chang, W. A. and Huang, T. C. (2005)
Relationship between Strategic Human Resource Management and Firm Performance a contingency
Perspective. The exact HR policies containing high performance labour systems has not been
particular, the common theme in S-HRM narrative is to draw attention to the consequence of
operation of preparation in the organizations given to facilitate proper training to the workers,
attractive inputs on behalf of decision making, appropriate reward mechanism. It is the duty of
SHRM to eradicate such misconceptions about the change management principles among the
employees. Strategic HRM is the explicit link HRM has with the strategic management process of
the organization.
Here are some of the most popular types of contemporary office furniture. This is because of the
autocratic management styles in Apple Company. Industrial and Labor Relations Review48(2): 197-
221. McClean, E. and Collins, C. J. (2011) High-Commitment HR Practices, Employee Effort, and
Firm Performance: Investigating the Effects of HR Practices Across Employee Groups Within
Professional Services Firms. Human Resource Management 50(3): 341-363. It is people in work
organizations who sets overall strategies and goals, design work systems, produce goods and
services, monitor quality, allocate financial resources and market the product and services” (p.8).
Even though an organization has many internal and external resources, none of them has the ability
to act independently except the human resources. This is open source HR software with a stable and
flexible interface, WaypointHR is one. On the other hand, China and India are countries in which
manpower cost is extremely low. Strategic Human Resource Management is the management of
employees. In human capital the contextual factors such as market conditions, union, business
strategies and technology are important. Takeuchi, R., Lepak,D. P., Wang, H. and Takeuchi, K.
(2007) An Empirical Examination of the Mechanisms Mediating Between High-Performance Work
Systems and the Performance of Japanese Organizations. Many HRM practices might be the result
of a social construction process and cannot be explained through the strategic decision making
process. The model has emphasized three aspects: the integration or fit of HR policies with business
strategy; the integration or complementarily and consistency of mutually; employment policies aimed
at generating employees commitment, flexibility and quality; and the internalization of the
importance of HR on the part of line managers. Personnel Review 30(2): 132-151. Huselid, M. A.
(1995) The Impact of Human Resource Management Practices on Turnover, Productivity, and
Corporate Financial Performance. Journal of Management 15(1): 89-99. Selden, S., Schimmoeller, L.
and Thompson, R. (2013) The Influence of High Performance Work Systems on Voluntary Turnover
of New Hires in US State Governments. Journal of Management 32(6): 898-925. Boxall, P. and
Macky, K. (2007) High-Performance Work Systems and Organisational Performance: Bridging
Theory and Practice. The non-strategic theories of HRM are resource dependence and institutional
theories. In view of the complexities of the contemporary business and competitive environment this
process of experimentation is likely to continue for a while till universally accepted models and
practices are evolved. This volume is heavy with the mythology of ancient Greece and Rome. The
paper considers the role of human resource in global competitiveness. It should not be forgotten that
America is a country in which manpower cost is extremely high. Employee Relations 34(2): 138-158
Khan, M. A. (2010) Effects of Human Resource Management Practices on Organizational
Performance - An Empirical Study of Oil and Gas Industry in Pakistan. We use cookies to create the
best experience for you. The right employee at the right place at the right time will always bring
benefits to the organization. The conclusion from review shows that variables used in various studies
are business strategy, human resource management system, human resource outcomes and
organizational performance. Employee Attrition Rate, MBA HR, Final Project Report. Therefore,
women got mainly clerical and secretarial jobs in the past. The way of doing business in the past and
present are entirely different. You can download the paper by clicking the button above. Contingency
models: These are the models that suggest the need to manage strategically in a contingent fashion.
He has written several books on human resource management. To have a strategic input and act as a
business partner, HR should have enough knowledge of strategy, markets and economy (Ulrich,
1998).
The HRM system must be attuned to the demands of business strategy. The sphere of influence has
gained a lot of awareness in the new past as due thought should be given to the people because one
aspects in executive plan since it does not only assist in implementing the strategy it may provide as
a sustainable competitive benefit for union. They are often made of materials such as metal, wood,
and glass, and can be customized with features such as keyboard trays and drawers. Contemporary
office furniture is also affordable, comfortable, and flexible, making it ideal for any office space.
Let us write or edit the literature review on your topic. The present study tries to review the
numerous presented literatures and explore effort proceeding models of S-HRM and policies. After
three days, your trial will expire automatically. Whenever the company is initiated management
mostly focuses on designing and implementing strong infrastructure in their company that enables
them to smooth down the business flow. In other words, all the organizational resources can be
mobilized properly only under the control of human resources. Journal of Applied Psychology 92(4):
1069-1083. Teo, S. T. T., Clerc, M. L. and Galang, M. C. (2011) Human Capital Enhancing HRM
Systems and Frontline Employees in Australian Manufacturing SMEs. Armstrong (2000) came up
with a model for developing HR strategic process. Human Resource Management Review 22: 43-
56. Chan, S. C. H. and Mak, W. (2012) High Performance Human Resource Practices and
Organizational Performance The Mediating Role of Occupational Safety and Health. Thus the
advantage achieved through HRM practices is likely to be more sustainable than that achieved by
other means. Personnel management includes tasks that are conventionally more traditional and
routine. Indians on the other hand, hold their hands together in a particular manner and say
“Namasthe” to mark their respect towards others. Guest (1987) has termed the Harvard model as an
implicit theory. The American Economic Review 87(3): 291-313. Katou, A. A. and Budhwar, P. S.
(2010) Causal relationship between HRM policies and organisational performance: Evidence from
the Greek manufacturing sector. Some employees like their jobs whereas others dislike their jobs.
Though the previous determinants have sought to understand how a firm will factor salaries for its
employees based upon the dynamics of the hiring process, the fact of the matter that the overall
profitability of the multinational will also have a profound effect on the level of salaries that can be
passed along to the shareholders at the very lowest levels of the firm (Marler, 2012). The concept and
practice of HRM and SHRM have evolved out of the area of personnel administration (Mahoney
and Deckop, 1986). Modern employees are particular about the reputation of the organization they
are working for. It should be noted that Pepsi like big companies have currently women CEO’s.
Currently, plenty of American companies offshored their business to China like cheap labor oriented
countries as a strategy to reduce the prices of their product and to increase their competitive power.
Jim walker (1980), with his classic book on Human resource planning, was the first writer to suggest
considering the corporate business strategy while developing and executing HR plans. This paper is
focused on the systematic review of literature on theories of SHRM. Contingency models: These are
the models that suggest the need to manage strategically in a contingent fashion. There has been an
increased tendency amongst organizations to adopt a standard HR Model comprising a Corporate
Centre, Shared Services, Business Partner and Center of Expertise (SHRM Book, Chapter-6):-. HRM
is seen as long term practice aimed at the maximum utilization of HR. Strategic management of
human resources is substantial in the current business age. The companies must focus on its HR
practices to create and sustain competitive advantage.
One can understand this as a simple function of asking whether or not the jobs that are being offered
will require a high level of education or prior experience or whether they can easily be filled by any
number of individuals (Winkler et al, 2013). It was found that despite the high levels of excitement, it
does not seem to come across as a novel concept in managing strategy since the strategic role of
human resources and their management has long been conceived and extensively discussed in the
strategic management literature. Employees coming out from an organization definitely can provide
vital information about the business policies and strategies of his previous organization to his new
employer. Strategic Human Resource Management is different from traditional HR management. For
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Page You are on page 1 of 7 Search inside document. It is the hope of this author that be analyzing
these key determinants, the reader will be able to draw a further level of inference upon the key
dynamics that define the means by which any large multinational firm must engage upon the issues
of wage setting and salary concerns with international partners. The concept and practice of HRM
and SHRM have evolved out of the area of personnel administration (Mahoney and Deckop, 1986).
Moreover, scientific business management principles are getting more popularity in the organizational
world at present. Unlocking the Cloud's True Potential: Why Multitenancy Is The Key. Human
capital theory: Organization can use HRM in a variety of ways to increase their human capital.
Research in Personnel and Human Resources Management 16: 53-101. Becker, B. E. and Huselid,
M. A. (2006) Strategic Human Resources Management: Where Do We Go From Here. Moving HR
to a more critical role would also increase expectations for its contribution (Baill, 1999). I believe
strategic human resources management is an excellent area. Majority of the international companies
have diverse workforce. In short, SHRM was successful in removing many of the traditions, myths
and illusions associated with the organizational world. SHRM should convince the employees that
the intended change management principles are mutually beneficial. Ichniowski, C., Shaw, K. and
Prennushi, G. (1997) The Effects of Human Resource Management Practices on Productivity: A
Study of Steel Finishing Lines. It is easy to manage a single cultural workforce; but it is difficult to
manage a multicultural workforce because of its contrasting needs. It provides a clear overview of
the subject, but then, the topic is vast. It focuses on the whole HR strategies adopted by big dealing
units and companies; It is a attention to facilitate integrates long-established organizational culture
performance within a firm's overall tactical planning with implementation. The Academy of
Management Executive 1(3): 207-219. Schuler, R.S. and Jackson, S. E. (1989) Determinants of
Human Resource Management Priorities and Implications for Industrial Relations. Strategic fit
model: Walker (1992) argues that in HRM terms, strategic fit means on the one hand developing HR
strategies that are integrated with and support the business strategy (Vertical integration or fit) and
on other, the use of an integrated approach to the development of HR practices such as resourcing
and rewarding, employee development and employee relations so that they can complement one
another (Horizontal integration or fit). Greek Mythology Other Research Paper Topics for a Greek
mythology essay. High involvement management model: This approach involves treating employees
as partners in the enterprises whose interests are respected and whose interests are respected and
whose voice matter in decision- making. Communication channels; including verbal and nonverbal,
are different in Asia and in America or Europe. It used to give more importance to the norms,
cultures and established practices (Bach, 2009). Cybernetic model: It is s system theory and varies in
its treatment of HRM practices. It is increasingly being realized now by organizations that as the
world moves towards borderless economics, and as business become global, one of the most
important aspects of a successful business is to understand and manage its human resources
strategically and completely. Resource based framework is a useful way of identifying and analyzing
sources of HR advantage in firms but today many are of the view that the resource-based view fails
to account for the particular nature of either individuals or human resource management fully and
therefore that this approach may not constitute the most appropriate framework for advancing theory
in the field of HRM.
Business strategies were formulated by the top management and HR had no role in such things.
Although it is not the express intent of this paper to discuss whether or not unionization is a net
good or a net bad for the employee, the system, and ethical behavior in the labour market, it should
be noted that the existence of unions necessarily decreases the amount of money that the employer is
initially willing to engage for the salaries. Literature Review for Human Resource Management
System 1. The foundation of strategic human resource management is based on the organisational
objectives. Those were also the views promoted by Craft in its approaches to HR. After three days,
your trial will expire automatically. In light of this contestable notion, this paper aimed to review
previous and current human resources management and strategic management literature in order to
ascertain the extent to which we can agree or disagree with these propositions. Contemporary office
furniture is also affordable, comfortable, and flexible, making it ideal for any office space. Journal
of Management 18(2): 295-320. Wright, P. M., Gardner, T. M. and Moynihan, L. M. (2003) The
Impact of HR Practices on the Performance of Business Units. The paper 'The Strategic Role of the
human resource management ' presents management in organizations that have gained increased
attention from academics and practitioners, especially during the last decade where the nature of
HRM has been enlarged with strategic initiatives. Some of the important decisions for assigning
functions of Center of Expertise are:-. Boddy (2008) defines Human Resource Management (HRM)
as “the effective use of human resources in order to enhance organizational performance” (p.354).
Because of globalization, majority of the prominent companies are currently operating cross
culturally. Just as within Great Britain, certain regions will command higher salaries due to higher
standards of living and higher levels of affluence. HR policies are part of the system and capital
investment and not the cost only. The descriptive theories are represented by the two best-known
models presented by Beer et al (1984) from Harvard University and Kochan et al. (1986) from MIT
in a comprehensive way. Journal of International Business Studies 40: 690-712. Guthrie, J. P., Flood,
P. C., Liu, W. and MacCurtain, S. (2009) High Performance Work Systems in Ireland: Human
Resource and Organizational Outcomes. European Journal of Economics, Finance and
Administrative Sciences 24: 157-175. Khan, N. R., Awang, M. and Zulkifli, C. M. (2013) Enhancing
HR Outcomes through Best HR Practices and Organizational Commitment: A Conceptual Schema
for SMEs. This paper first contributed to the general and human resources, particularly the trends
and problems of surveys conducted in the human resource area. However, within a decade,
significant changes in the nature of four personnel roles suggested by Storey started emerging. The
Academy of Management Executive 1(3): 207-219. Schuler, R.S. and Jackson, S. E. (1989)
Determinants of Human Resource Management Priorities and Implications for Industrial Relations.
According to Bratton (N.d.), “Strategic human resource management is the process of linking the
human resource function with the strategic objectives of the organization in order to improve
performance”(p.37). The ability to stay competitive determines the success and failures of modern
organizations. It would spare HR for more strategic work and be helpful to align HR policies with
the business strategy. Due to immense competition amongst the rival firms, increasing number of
organization is focusing on growing in house expertise to deal with challenges of competitive
environment. If a manager of an Asian enterprise wants to initiate a SHRM system, he should make
it absolutely include the following four points: (1) Create an efficient way of communication. (2)
Launch an education campaign to help the employees to deal with international business. From the
reception area to the individual workstations, the right furniture can set the tone for a productive and
successful work environment. It left to the HRM to design systems and or programmes for execution
of the strategic plan. Put a flag on it. A busy developer's guide to feature toggles. Academy of
Management Journal 38(3): 635-672. Huselid, M. A., Jackson, S. E. and Schuler, R. S. (1997)
Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm
Performance. There is no universal model for SHRM, organizations have been modifying their
structures and practices aimed at achieving optimal performance levels. SHRM helps organizations to
formulate strategies suitable for the changing principles in the organizational world.
This strategy has several distinguishing characteristics; it is diversified, management-driven, values-
focused, commitment-oriented and, as much as possible, tailored to the individual employee. If a
manager of an Asian enterprise wants to initiate a SHRM system, he should make it absolutely
include the following four points: (1) Create an efficient way of communication. (2) Launch an
education campaign to help the employees to deal with international business. For instance, it may
offer decent advice in some areas while being repetitive or unremarkable in others. This led to a
prescriptive model by Ulrich giving a US perspective through Human Resource Champions-1997. It
is the duty of SHRM to find way to tackle all these problems. Moreover, Apple managers often say
that the company is particular about employability rather than employment security. The paper 'The
Strategic Role of the human resource management ' presents management in organizations that have
gained increased attention from academics and practitioners, especially during the last decade where
the nature of HRM has been enlarged with strategic initiatives. He has written several books on
human resource management. The paper considers the role of human resource in global
competitiveness. As a simple function of understanding what a national average entails, i.e. the
median between the high and the low, the HRM should seek to dispel such figures in lieu of
determining more specific and actionable intelligence with regards to the level of remuneration that is
realized within a given geographic region. In general the term SHRM is concerned with systematic
link of people with performance of the firm. Management or executive positions were reserved
primarily for the male candidates. Majority of the international companies have diverse workforce.
We use cookies to create the best experience for you. High involvement management model: This
approach involves treating employees as partners in the enterprises whose interests are respected and
whose interests are respected and whose voice matter in decision- making. The hard model of HRM
focuses on the crucial importance of the close integration of HR policies, systems and activities with
business strategy on HR systems to achieve the strategic objectives of the organization. In other
words, business philosophies of Yahoo and Google are entirely different. Strategic human resource
management is getting popularity in the modern business world because of its vital role in increasing
the competitive power of an organization. Whereas many firms will only seek to maximize profit be
developing overseas assets as a function of defraying labor costs, there are those firms and
organizations in business that seek to integrate a compensation strategy that revolves around equal
pay for equal work. Public Personnel Management 41(2): 257-279. Klaas, B. S., Semadeni, M.,
Klimchak, M. and Ward, A. (2012) High-Performance Work System Implementatian in Small and
Medium Enterprises: A Knowledge-Creation Perspective. Some employees like their jobs whereas
others dislike their jobs. International Journal of Human Resource Management 14(8): 1391-1406.
Pfeffer, J. (1998) Seven Practices of Successful Organizations. This review looks at several theories
of management and leadership developm. Contemporary bookcases and credenzas are designed with
stylish lines and a variety of colors and finishes. Indian Journal of Commerce and Management
Studies 4(1): 24-32. Kim, S. (2012) The Impact of Human Resource Management on State
Government IT Employee Turnover Intentions. Drucker (1997) gave an assessment of PM under
descriptive-behavioral model. Guest (1987) has termed the Harvard model as an implicit theory.
HRM is a people oriented concept with emphasis on the maximization of individuals' skills and
motivation. Sustainable business practices, commitment to environment, and corporate social
responsibility are some of the factors which increase the reputation of an organization at present.
Same way, Americans and Europeans shake hands to mark their respect towards others whereas
Chinese people bow their head in front of others to mark their respect.

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