Strategic Human Resources Management

Abstract

A primary premise of the investment perspective of this text is that investments in human resources can provide a sustainable source of competitive advantage and can raise the likelihood of successful implementation of the firm's strategy. Because of these benefits, investments in human capital have the potential to yield attractive rates of return for the firm's stockholders. The process of investing in human resources extends beyond merely hiring and maintaining good people, while those are the essentials. Investments in human resources can take numerous forms. They can be rather basic, like in the instance of training personnel in order to boost their production. Investments in human resources can take several forms, such as, for example, a strategy of attractive compensation that helps boost the productivity of strong employees and promotes the retention of highly talented staff. Other examples might include investing in improving selection techniques, such as acquiring more valuable selection exams, or increasing the number of job openings publicized. In recent years, HR managers have been particularly interested in empirical evidence on the relationship between various resource management methods and business performance measurements. Senior executives' demands for convincing evidence that their HR departments are improving corporate performance have in many cases fueled this interest. This section will evaluate the influence of individual HR practices and systems of such practices by analyzing some of the studies on this topic. Most of the research papers in this area are empirical, and we employ statistical approaches to compensate for other elements that may affect organizational work. In certain non-empirical publications, reports have been made of conclusions from several observations and are also included in the debates.