3rd Definition of Strategic Human Resource Management: HR Systems Approach
Uysal, Gurhan (2019). 3rd Definition of SHRM: HR Systems Approach. 6th ASOS Congress, Alaaddin Keykubat University, Turkey, April, 18-20th.
6 Pages Posted: 24 Apr 2019
Date Written: April 18, 2019
In this study, SHRM is related with HR systems. Further, This study relates strategic HR with finance theory, with ROI. ROI makes HRM have impact on financial performance. HRM may affect firm performance through HR investments. Return on Investment (ROI) of HR might be organizational behaviours (OBs). Many studies prove that HRM results with OBs. HRM means investing people. Thus, ROI of HR might be organizational behaviours. Application of HR develops positive organizational behaviours on employees, such as citizenship behaviours, commitment, satisfaction, organizational justice, etc. OBs affect firm performance via human capital’s attitude and behaviours. Human capital is related with job performance, and including knowledge, skills and experience of employees. Human capitals work for critical positions in organizations.
SHRM is relation between HRM and firm objectives. HRM is interested with employee performance. When it is involved with firm objectives, it is defined as SHRM. HRM is related with organizational performance, while Wright and McMahan (1992) related with firm performance. Consequently, HRM may affect organizational performance via OBs. Because practicing HRM in organization results in developing various OBs, such as organizational commitment, justice, citizenship behaviours, engagement, etc.
Therefore, 3rd definition of SHRM includes HR system and ROI. For example, Huselid (1995) explores impact of ROI on financial performance of firm. Thus, ROI might be considered as a factor affecting firm’s financial performance. According to Tüzüner (2018), ROI concept may be applied for financial and nonfinacial results. Employment relations, for example, are nonfinancial indicators.
How does HRM contribute to firm performance? Literature studies discusses that argument. HRM may contribue to firm performance via OBs. Because OBs increase job performance. and job performance and OBs have impact on firm performance. Outcomes of HRM are organizational behaviours. OBs develop effective job performance. Therefore measurement issue of HRM is associated with OBs and job performance.
Keywords: Strategic Human Resource Management, ROI, HR Systems, Firm Performance, Huselid
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