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Hrm-Practices (Systems) And Performance

In assessing HR-practices it is important to distinguish among their effect on both individual performance and firm performance (Boxall and Purcell, 2003). The micro HRM field or traditional personnel management is concerned with the relationship between HR practices and individual performance within the context of a given organization (Boxall and Purcell, 2003). This field doesn’t directly link HR-practices to firm performance because there is no involvement of business strategy.
Individual performance, according to the ‘AMO’ theory, is some function of the individual’s abilities, motivation and their opportunity to succeed in a specific context (Boxall and Purcell, 2003).

Across the human population several levels of ability can be distinguished. The ability of an employee is a combination of both intelligence and educational and life experience (Boxall and Purcell, 2003). When given opportunities and sufficient motivation, people can use their abilities to transform input into output which is relevant for the company. Two important HR-practices, recruitment and selection, are important in discovering abilities of individuals.
Recruitment strategy is the way in which an organization tries to attract a group of people with the right abilities. Selection is about assessing strengths and weaknesses of applicants and choosing among them (Boxall and Purcell, 2003).
Recruitment and selection is important for a firm because they have to attract and nurture people with the kind of abilities that will make the firm productive in its chosen sector (Boxall and Purcell, 2003). There are many ways for an organization to recruit their possible employees. An organization has to promote itself in a kind of way that they attract the right employees. The link between HR-practice and business strategy is apparent because firms in different sectors need different abilities which can be found through good recruitment and selection practices. For example, these practices...