The practices of Human Resource Management

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In the research of (Quresh, Akbar, Khan, Sheikh, & Hijazi, 2010) it was said that the human resource management practices are considered as the major contributory factor in the financial performance of an organization. In this study the focus was given to the employee selection system, training, performance appraisal and to the compensation system. These variables had a positive effect on the financial performance of the banks in Pakistan. The study emphasized that the management should focus on the above four variables in order to achieve the organizational financial Excellency. (sel, Tr, PA, CS)

The empirical bundles of the HRM practices have a positive relation with the firm's performance. The importance of the HRM variables varies from organization to organization. In the research of (Chen) he took the three variables namely training, selection and performance appraisal. The effects of these variables were measured on the Taiwanese firms and the results showed that these HRM practices bundles are significantly related to the financial and to the non-financial performance of the firms. (sel, tr, pa)

The impact of the organizational high performance work system i.e. strategic human resource management system is both statistically and economically significant to the firm's performance. In this research by (Huselid & Becker, 1995) he put the employee selection and development as the contributing factor for the firm's performance. The results showed positive relation to the firm's market value. The results direction and magnitude were very constent in common to the other litreature. (Tr, Sele)

Firms in the U.S adopt various performance enhancing or the progressive human resource management practices in order to improve the market competitiveness in the global environment. The developing body of the research and design has showed a positive relation between the firm level measures of the HRM systems and the organizational performance. In the research of (Delaney & Huselid, 1996) took training, selection and the compensation as the high performance HRM practices and calculated their impact on the U.S firms which reprsented in a style that the firms adopting and using the HRM practices showed significant growth the firms performance. (tr, sel, comp)

There is a generalized agreement to an approach that the human resource management involves the designing and the implementation of a set of internally consistent policies and practices that ensures the firm's human capital contributes to the attainment of the business goals. In the research of (Huselid & Schuler, 1997) they took the compensation, training, recruitment and the performance appraisal as the technical HRM effectiveness variables and calculated their impact on the U.S firms for the calculation of the corporate financial performance and the results showed that the organizations which have adopted and gained the HRM and its effectiveness have gained substantial amount of financial performance increase. (tr, com, rec, p.a)

High performance work system is a key strategic lever for both as a mean to develop and sustain the core competencies and as a necessary condition for strategy implementation. HPWS includes various key HR inputs which lead to the firm's overall performance. There is a strong model fit between the HPWS and the overall organizational performance. A study of (Huselid & Becker, 1997) took the training of the employees, selection of the employees, compensation system and the performance appraisal as the components of the HR system and then measured its effectiveness and calculated its impact on the shareholders wealth. There was a positive relation between these variables with the financial performance of the firm. (tr, com, rec, p.a)

Human resources of a company is said to be one of the important capital, which is playing an important role in the operations of an organization. More value should be given to the human resources of a company. There are many significant components of the HRM which (Abdullah, Ahsan, & Alam, 20009) identified in their research. They identified the training and development, compensation system and the performance appraisal system as an important part of the HRM system and stated that it has a relationship with the business performance. Their study presented a positive correlation among these variables as the determinants of the business performance in Malaysia. (tr, com, p.a)

HRM is conceptualized in terms of carefully designed combinations of such practices geared toward improving organizational effectiveness and hence better performance outcomes. HRM system includes the HRM activities which positively affect the HRM outcomes which lead towards the performance of the firm. In the study of the HRM system (Boselie, Dietz, & Boon, 2005) included the Recruitment/selection and Training as the HRM activities and presented in their model as the variables affecting the HRM outcomes which lead to the organizational performance. The results were related with the dependent variables. (tr, rec)

In today's business environment firms consistently seek for the newer sources of the competitive advantage, one of the most important is the human resource management. Innovative human resource practices can boost up firm level performance and the national competitiveness. There are several bundles of interrelated, overlapping HR practices which provides the several non-exclusive modes of influencing the performance. The research of (Jayaram, Droge, & Vickery, 1999) included the formal training as the important part of the HR system and said that it will help to improve the performance i.e. the cost performance, quality performance, flexibility performance and the firm's time performance. The results were significant with the variables of the training in relation to the manufacturing performance. (tr)

Human resource management has emerged as an essential factor for sustained competitive advantage. Changing business environment in knowledge economy has made adoption of human resource management imperative for competitive advantage. The recent studies showed a positive relation of HRM practices with the firm's performance. The strategic role of HRM has been very well established in the recent business environment. In the research of (Khan, 2010) the four important components of the HRM system were identified i.e. training, selection, performance appraisal and compensation system. These are the best HRM practices. All of the above four variables had a positive effect on the firm's financial and the non-financial performance. (tr,sel,pa,comp)

In the research of (Sels, Winne, Delmotte, Maes, Faems, & Forrier, 2006) they emphasized on the effective management of human resources, as it is to be a good predictor of small businesses survival. The managerial incompetency especially on the field of HRM is the main cause of failure in the smaller firms. This research was intended to develop and identify the best HRM practices for the small businesses. In their research frame work they took the training, selection and compensation. The research revealed that the HRM intensity was positively related with the performance outcomes i.e. employee voluntary turnover, productivity, personnel cost, liquidity, solvency and the profitability. (tr,selc,com)

There is growing evidence that high performance work practices affect organizational performance. Human resources of an organization are classified as the central ingredient affecting the organizational performance. Taking the Human Resource Management to the Strategic Human Resource Management can only be done by taking into account the key HRM practices (inputs) and apply them into the business environment for the strategic advantage. In the research of (Combs, Liu, Hall, & Ketchen, 2006) they took the training, compensation level, selectivity and the performance appraisal as the individual high performance work practices and calculated their effect on the accounting returns, productivity, retention, multidimensional, growth and the market return. The results showed the organizations which are adopting the HPWP's showed significant growth the different dimensions of the organizational performance. (tr,sel,pa,comp)

Human capital is one of the key sources for the growth of all of the industries. HRM practices create a growth pattern towards the firm's profitability and market share which ultimately enhances the firm's overall performance. It is important for the firms to adopt certain HRM inputs which drive them to the success and for the betterment. In the research of (Riaz & Qazi, 2007) they identified the training, selection, compensations and the performance appraisal as the factors which influence the organizational performance. These practices not only provide the sustained growth but also the competitive edge. (tr,sel,pa,comp)