A recent Accenture survey revealed that although business executives firmly believe that people are their most important asset, most executives are at a loss to prove that investments in people lead to improved business results.
Response bias is an even greater concern in longitudinal research. HR practices shape employee attributes through perceptions of what the organisation is like psychological climate and mutual expectations about the exchange between employee and employers psychological contracts at the individual level.
Thus the inter-level premise proposes that attitudes, behaviours and Human Capital collectively influence organisational effectiveness through organisational climate and normative contracts at the organisational level. For example, companies that are under-performing at the time of adopting new work practices may report a downwards-biased effect size because of their pre-existing financial climate.
However, improving some methodological features and the expense of sample size is counter-productive because it increases the chance of falsely accepting the null hypothesis as it will be more difficult to detect the interaction effects of combining practices with a smaller sample.
Based on a review of the vast research conducted in this areas, Ostroff and Bowen predict which HR practices should have a direct impact on different employee attributes; such as knowledge and skills Human Capitalattitudes satisfaction, organisational identification and commitment, motivation as well as workforce flexibility and control and monitoring.
Intra-industry studies are useful because they reduce error that arises from confounding organisational and worker variable by reducing the variance in these variables.
Prior to the more recent emphasis on and pleas for strategic integration, organizational recruitment, selection, training, and development remained relatively unchanged, having evolved into a relatively standardized approach frequently labeled as "traditional" Storey, Firstly, Human Resources that are intended to enhance employee flexibility and that have a monitoring and control function effect organisational performance directly by improving operational efficiency.
For this reason, the most recent literature is reviewed here to see if we can more decisively and confidently reach conclusions about the HR-organisational performance relationship.
Robbins was used to gain familiarity with the topics that fall under the domain of Human Resources.
Accordingly, there is now greater recognition in the strategic planning literature of the need to consider implementation feasibility during the strategy formulation stage itself Tichy, Configural Approach The configural approach postulates that HR practices should be considered as systems and those systems that are comprised of internally consistent, coherent and well-integrated practices produce synergies that lead to better financial results Arther,MacDuffie,Huselid,Pfeffer,cited in Valle et al.