Impact Of Human Resource Management On Productivity

REVIEW OF HUMAN RESOURCE MANAGEMENT AND LABOR PRODUCTIVITY ABSTRACT

As in the developing curiosity in which human resource systems contribute to organizational effectiveness, but limited research attention has been paid to the contextual conditions that moderate the effect of these practices. In this study, we examined how industry characteristics affect the relative importance and the value of high-performance work systems. Findings indicate that the influence of these human resources systems on productivity is impacted by industry capital potency, growth, and differentiation. This paper carries out the interaction effects of business strategies such as human resource management, counseling, performance management, employment security and

Although the labor economics literature indicates that capital-intensive industries are generally associated with increased employee skill levels and higher wages, there are a number of reasons to believe that high-performance work systems will be more beneficial to firms in low-capital-intensity industries. As strategy researchers have noted capital intensity often creates strategic rigidity because fixed costs are high and deviations tend to be expensive. Firms in high-capital-intensity industries tend to focus on leveraging their investments, resulting in a greater concern for cost and efficiency considerations. Although directed primarily at the impact of organizational leadership on firm performance,the consistent argument in this body of work is that human resource effects decrease in industries with high capital intensity. Similar arguments can be found in the SHRM literature.The capital intensive industries, there are “greater constraints placed upon employee performance by the degree of task structure or the degree of automation of the production technology” . In simple terms, the human element becomes more integral to the production process as capital intensity decreases.As such, a system of HR practices used broadly to endow all employees in a workforce with greater skill and commitment should offer Neither conceptual/prescriptive nor empirical work yields a precise definition of a high-performance work system, but these systems include practices such as rigorous selection procedures, internal merit-based promotions, grievance procedures, cross-functional and cross-trained teams, high levels of training, information sharing, participatory