Abstract:
Strategic human resource management (SHRM) focuses on three major issues. Firstly, the integration of or fit between human resource practices and the strategy of the business. Secondly, the examination of the relationship of bundles of human resource practices rather than individual and isolated practices. This study focuses on the debates in the literature on how human resource practices influence human resource characteristics, and in turn how these characteristics affect organizational performance. This paper discusses the major theoretical background of SHRM, proposes a parsimonious and testable research framework and argues the rationale of the framework.