Human Resource Management and Performance

Abstract

Human resource management (HRM), or the management of people in organisations, can contribute to achieving organisational goals. These goals are strongly related and partly dependent on challenges. This chapter provides an overview of the potential contribution of HRM to performance. There are three leading guidelines for the discussion presented here. First, why does HRM potentially contribute to performance? The resource-based view, the VRIO framework and the human capital theory provide frameworks for answering the ‘why’ question. The second guideline or question in this chapter was does HRM contribute to performance? The empirical evidence shows the added value of people management. Simply applying ‘best practice’ is not likely to solve major organisational issues. In theory, HRM practices affect employee outcomes such as satisfaction and motivation. The third question of the chapter was very much focused on under which conditions HRM contributes to performance. Contextual notions are important for getting a full understanding of HRM and performance. The internal and external organisational context is significant in the shaping of human resource management in the organisation and the potential added value of HRM to performance.

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