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Introduction
The purpose of this literature review is to shed light on the connection between
and much importantly, organizational ideology. Being a wide-scale topic, there are
warrants achievement of organizational, social, and individual goals (Okoye & Ezejiofor,
with the proper application of cultural, personal, and structural techniques (Koontz,
2010). The second section of this literature review discusses the impacts of HR policies,
significant association between business operations and HRM practices and considers
explain the function, role, and practices of Human Resource Management (HRM)
surrounded by ever-changing uncertain situation has been ongoing for years. Moreover,
these processes are known to lie under the scope of Human Resource Strategies
no generally-acceptable explanation for HRS and what affairs it takes care of in the
definitions. For instance, Wright & McMahan (2011) cited that HRS offers a competitive
threats. Nonetheless, Malheiro, Ribeiro, Jamil, Rascao & Mealha (2018) debated that
HRS practices help the business exploit potential benefits by cutting costs, by
differentiating between product and service sources, etc. However, Wright & McMahan
(2011) stressed that in order to gain an advantage in HRM, a strategic standpoint must
be adopted.
Several researches have been carried out to examine intricate aspects of HRS
practices. For instance, (a) Gabcanova (2012) studied HR accounting and attempted to
give value to HR practices, (b) Boxall & Purcell (2011) studied affairs of HR planning, (c)
Zheng, Yang, & McLean (2010) studied organizational responses that change with
strategic environmental changes, and (d) merging HRM and HRS to gain competitive
advantages (DeCenzo, Robbins, & Verhulst, 2016). Likewise, there were some other
studies that broadly studied the complexity of HRS (Buller & McEvoy, 2012; Vermeeren
et al., 2014). These studies demonstrated that HRS is a process that is multi-
dimensional having several effects. Buller & McEvoy (2012) further noted that while
being beneficial, significant costs related to HRS should be considered. These types of
organizational growth commitment. Moreover, these costs are unsuited with the
policies that might make a firm less viable eventually as disregard to employee
A proper evaluation of benefits and associated costs are hardly ever detailed in
problems and strategic solutions to address competitive dangers. Thus, the question
arises: why is it advantageous to integrate HRM and HRS despite these challenges?
Buller & McEvoy (2012) studied that initially, the integration will help provide broader
solutions for multifaceted organizational challenges. Secondly, the integration will help
setting goals and examining its implementation potential. Thirdly, the integration will
assist businesses to devise strategies that are aligned with the organization's talent
pool. Finally, HRM and HRS integration will prevent the subordination of strategic
concerns to HR preferences and disregard HR as a source that determines the
business’ competence.
As studies conducted on the topics of HRS and HRM are broad and vast, it is
Huselid & Becker (2011) studied that there are two most important aspects in the HRS
dichotomy that is worthy of being given consideration. First, differentiation between the
between the challenges of specific content from the overall elements of the process.
Proper understanding of these affairs can help businesses develop HRM strategies that
can be beneficial are establishing the overall competitive culture within an organization.
basics of this approach with the words of George Elton Mayo, the founding father of
HRM (Bruce, 2013). Mayo explained HRM as an approach that involves management
actions and decision affecting the nature of association involving the organization and
workforce. In this definition, the most important and notable feature is the use of the
word "action". The author was the first to assert that effective implementation of the
HRM approach is the line managers' responsibility. Another definition of the HRM
process found to be interesting was shared by Koontz (2010) stating that actions and
HRM strategy (HRMS). The definition has been deemed important in explaining the
association involving HRM and organizational performance. It is evident that Koontz
(2010) specified the relations between HRM practices and policies with performance-
based strategies in a way that can warrant competitive advantages as both affairs are
As defined by Okoye & Ezejiofor (2013), HRM is the controlling, directing, and
deploying highly capable and committed workforce with the proper application of
cultural, personal, and structural techniques (Koontz, 2010). Even though there is no
consent on the characteristics or definition of HRMS, the above definition has evidently
explained that HRMS is a blend of management practices that are people-oriented and
views workforce, not as a cost but an asset. Moreover, it explains that the primary goal
competitive gain.
contemplations: hard and soft HRM variants (Marchington, 2015). Essentially, the
variants mentioned above are explained as building blocks for the HRM model. Lenka,
Suar, & Mohapatra (2010) studied that soft HRM give attention to workforce training and
theory is highly challenging as both variants are derived from dissimilar assumptions of
managerial strategies and human nature (Armstrong, 2011). Actually, a portion of these
strategies can be traced back from the findings of MacGregor (1960) who used the
findings laid significant attention on how organizational affairs can contribute towards
innovative practices. The author concluded that almost every management control
strategy was derived from human nature; thus, resulting in tight control from managers
under close management. This implies the hard HRM model based on strategic
Despite being a comparatively new process, the variants should not be considered to
have its origins in older perspectives related to HRM which are better explained via HR
policies (HRPO) and are known to influence the overall organizational culture (Boxall,
HR Policies (HRPO)
knowledge have reinforced workforce value significantly (Briscoe, Briscoe, Schuler, &
Claus, 2009; Andreeva & Kianto, 2012). Therefore, HRM assumes an important
studied that a relevant focus is being assumed by businesses to support the alignment
of HRM policies with the varying demographics in the business landscape. The
Moreover, organizations are presently giving more attention to attract, qualify, value,
and retain a pool of talented workforce (Andreeva & Kianto, 2012); thus, transforming
HRM has the potential to adequately manage HR via policies to increase and
sustain competitive advantage over rival companies (van den Brink, Fruytier &
Thunnissen, 2013). Moreover, the author suggested that the workforce is the primary
source of organizational competency. As cited by van den Brink, Fruytier & Thunnissen
that helps in differentiating the business from potential competitors. Likewise, Giauque,
Anderfuhren-Biget & Varone (2013) studied that competency is categorized via three
imitate competency. However, a strategic perspective suggests that HRM policies can
reciprocally reinforce organizational affairs and help in attaining their objectives (Rees &
Smith, 2017). In order to distinguish these impressions, it was argued that HRM
managing practices coherently. Therefore, policies defined in strategies are actions that
several emerging subjects that offer greater insight into the complexity of HRM
structure. Among these findings, the influence of HRM policies on company value was
much stressed. The authors pointed towards the significance of HRM policies and
Searle & Dietz (2012) proposed the needs for future research over HRM policies
while integrating them with other variables such as organizational culture and
order to study the influences of HRM policies over the workforce and the organization.
Hence, a consensus was developed suggesting that proper application of HRM policies
yield superior performances from a particular organization (Den Hartog, Boon, Verburg,
& Croon, 2013). van den Brink, Fruytier & Thunnissen (2013) conducted a study
this is true for all small and medium enterprises (SMEs) as identification and
incorporation of basic HRM policies are essential (Boxall, Ang, & Bartram, 2011).
Janssens & Steyaert (2009) demonstrated that strong HRM policies positively
behaviours and attitudes. In the same way, a strong association was identified between
customer satisfaction and HRM policies by (Den Hartog, Boon, Verburg & Croon
2013).The author pointed out that customer satisfaction is increased with the provision
of products and services that are high in quality. In a nutshell, the findings from these
empirical studies suggest that strong HRM policies that are properly in synchrony with
upon the internal and external trends and behaviours within the industry properly
(Andreeva & Kianto, 2012); thus, suggesting for a need to change in HRM practices (if
HR Practices
Okoye, & Ezejiofor (2013) studied that effective and efficient exploitation of HR to
practices are required to ensure the effectiveness and efficiency of HR are utilized.
order to successfully market new services and products. As cited by Searle & Dietz
(2012) innovation rate and human capital are interconnected; therefore, contemporary
that eventually transforms overall HR practices (Janssens & Steyaert, 2009). Likewise,
was demonstrated that innovative schemes are greatly dependent upon employee
behaviours (Okoye & Ezejiofor, 2013). It was stated that behaviours are the most crucial
practices are its derivate. Moreover, the findings of Giauque, Anderfuhren-Biget &
Varone (2013) have widened the depth and scope of HRM practices which are known to
innovative business studies. Jiang, Wang & Zhao (2012) studied that there are only a
number of studies that have openly examined the links between HRM practices and
innovation. Moreover, studies discovering the links between HRM practices and
structure (Abstein & Spieth, 2014). It has been noted that little to no attention is being
paid in the organization's to study the working environment, a place where innovation
and learning nurtures. Hence, a wide-range review is required on this issue to enrich
and expand the empirical and theoretical knowledge in this particular area. The
and tolerant of uncertain unforeseen situations and ambiguity (Pilbeam & Corbridge,
2010). Hence, it is essential for businesses to support and encourage employees with
HRM practices to increase innovation and creativity in the business landscape (Jiang,
Wang & Zhao, 2012). Moreover, the author demonstrated that HR latent abilities to
encourage and inspire creativity and innovation as workforce behaviours, skills, and
derivative of opportunity, motivation, and ability (Rajiani, Musa & Hardjono, 2016). From
motivation, and ability. The theory proposes that HRM practices increase the human
performance-based results like increased productivity, high work quality, reduced waste,
high profits, and much importantly, innovation and creativity. Hence, the increment in
HR commitment and motivation via suitable HR practices can introduce innovation and
creativity into the business and help the business prosper and gain traction in the
having a minimalist approach, and the other going an extra mile for organizational
whereas, a committed employee discretionally carries out extra job roles to ensure that
the company grows. Abstein & Spieth (2014) studied that the behaviour of committed
citizenship behaviour (OCB). OCBs cannot be enforced forcefully as they are additional
job roles assumed with workers discretion. Moreover, the absence of OCBs cannot be
penalized too. Some examples associated with OCB are personal initiatives, peer-to-
peer collaboration, and carrying out extra work tasks. Some other instances of OCB are
positive representation of the business, and sharing of idea also fall under OCBs
After the introduction of the OCB concept, studies endeavoured to define the
antecedents of OCBs and its links with performance. For instance, several studies
Ezejiofor, 2013). The studies concluded that OCBs are constructive for organizations,
management, and workforce. DeCenzo, Robbins, & Verhulst, (2016) stressed that
innovation, resource transformations, and adaptability. Zheng, Yang, & McLean, (2010)
manager spend less time on resolving conflicts, hence, giving more space to plan and
Gabcanova (2012) studied that managers are required to identify associations between
of OCB. Likewise, the positive links between performance and OCB should be
explained to employees. Perfect implementation of these aspects can help managers to
precisely examine OCB practices ahead of interventions while devising strategies that
Vermeeren et al., (2014) stressed that the links between performance and OCB
are more conceptual and logical than empirical. Findings of several empirical studies
managers are primarily influenced via OCB as they positively reinforce managerial and
organizational affairs. Hence, employs exhibiting a strong OCB behaviour are more
valued by managers than those who do not. Likewise, management supporting the links
and asset to the business. A study shows that OCB may just be an impression of
performance (Wright & McMahan, 2011). Likewise, several studies have suggested a
Kim & Rhee (2011) cited that there are instances in organizations where
essence, voluntary information sharing practices help business to attract attention and
build a positive reputation. Normally, as employees share information (positive and
negative) externally about the business on social media platforms and conversations, it
is essential for businesses to establish strong links with their employees in order to
encourage them into speaking positively about the company. The indirect information
sharing process lies in the scope of employee advocacy. In simpler terms, Men (2014)
Essentially, advocacy can be viewed as a derivative approach to OCB. These are the
formal job descriptions and are not openly rewarded by businesses for such acts.
Podsakoff, Whiting, Podsakoff & Blume (2009) demonstrated that both OCBs
satisfaction. Certainly, organizations are proposed to foster advocacy and OCB as it can
be beneficial for the business. Podsakoff, Whiting, Podsakoff & Blume (2009) cited that
the most perfect approach is active communication and support to the workforce. As
promote the business by sharing positive information with external audiences. Studying
the links between OCB and employee advocacy, Men (2014) stressed upon a strong
relationship between the organization and employee which can help in promoting the
business effectively.
organization. In this frame of reference, Men (2014) stated that employee advocacy can
Blume (2009), similarly like OCBs. Employee advocacy can be viewed as a derivative of
advocacy involves external information sharing practices that promote and defends
businesses in the wake of criticisms (Men, 2014). While studying the behaviour of
advancements have assisted people being equipped with social media platforms
influence the reputation of the business. Even though OCBs normally transpire in
workplaces, they are expected to stretch its reach beyond office premise.
that restricts or bind them to stay with the organization for good. Studies suggest that
2013).
In return, there are several notable and desirable outcomes derived via
information flow, information adequacy, and interaction support are the three basic
elements that encourage organizational commitment internally (Rhee & Moon, 2009).
extent and quality that is relatable to the business and employee concerns (McMillan
employees are empowered and contribute towards organizational aims; thus, increasing
commitment (ter Hoeven & Verhoeven, 2013). Basically, information flow is the sharing
of ideas and opinions. Free sharing of opinions and ideas establishes the perception of
information flow helps employees understand the value of their commitment towards the
information is shared with employees to carry out their routine tasks and determine
employment terms (Rhee & Moon, 2009). Therefore, information adequacy makes the
commitment and satisfaction while lowering the turnover rate. Basically, information
adequacy is the content that determines job responsibilities and organizational goals
Interaction support is the support level determined by one party and delivered by
another (Rhee & Moon, 2009). For instance, a supervisor determining job
social transactions between employee and supervisors are likely expected to increase
the level of commitment within the business is interactions between both parties are
strong and robust (ter Hoeven & Verhoeven, 2013; Jian & Dalisay, 2017). Basically,
exhibit huge levels of commitment with their work and loyalty towards the business (Jian
& Dalisay, 2017). In this context, employee commitment and loyalty are the derivatives
of employee and representatives’ contribution towards the interactive support which
However, Kim and Rhee (2011) argue that organizational commitment is based upon
the workforce psychological state which determines whether to stay with the
organization.
Similarly, job satisfaction can be explained as the degree to which the workforce
is satisfied with the job and the different responsibilities that come with it. In social work
and healthcare sector, females are observed to be less satisfied than males
demonstrated that satisfaction in terms of work, work culture, and earnings increase job
work will exhibit job satisfaction. Alternatively, job satisfaction was defined by Kim &
Rhee (2011) as the state that cognitively or effectively evaluates job experiences.
Simply, job satisfaction can be viewed as the positive feelings an individual shows about
a particular job.
There are several factors relatable to job satisfaction. Rajiani, Musa, & Hardjono
(2016) explain that job satisfaction is related to components such as autonomy, skill
variety, feedback, and task identity and significance. Searle & Dietz (2012)
Therefore, fairness in rewards and appraisals are known to significantly reinforce the
ideation of job satisfaction will increase commitment. In his research, Zheng, Yang, &
McLean (2010) studied the impact of cultural norms upon organizational commitment.
The study explained that globalization has transformed the business landscape,
Similarly, Wright & McMahan (2011) studied the influences of service efforts,
empowerment practices, and turnover ratio in a service sector industry. The author
found that job satisfaction primarily affects the overall culture of the business. Hence, it
is important to establish strong relations between employer and employees. In the same
study, Zheng, Yang, & McLean (2010) demonstrated that job satisfaction revolves
around the axis of organizational commitment and work environment. In the same way,
Rajiani, Musa, & Hardjono (2016) studied the positive association between
organizational commitment and job satisfaction. The study explained that job
culture, and supervision. Kim and Rhee (2011) found job satisfaction to be derived from
justice.
HRM model has remained a bone of contention for scholars and researchers since its
introduction. HRM has the ability to bring competitive advantage into business affairs
and operations. Moreover, it can help businesses increase production and efficiency.
Likewise, it can help business to establish strong relations with the workforce that can
managers and supervisors to devise and determine strategies that can be beneficial for
business growth. HRM models have the potential to increase organizational efficiency
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