The Impact of Human Resource Management Practices

Individual employee performance has implications for company level outcomes. Also employees can provide a unique source of competitive advantage. Four basic requirements have to be met for a competitive advantage. First, employees must add value to the company’s production process. Second, the skills the company seeks must be rare. Third, the combined human capital investments a company’s employees represent cannot be easily imitated. Last, a company’s human resources must not be subject to replacement by technological advances. This helps me as an administrator because employees are the one variable that is ever changing. Situations and or variables that cannot be controlled can have an adverse effect on the competitive advantage.
The author explains that five factors for determining the impact of management practices. The first is evidence of complementarity. Turnover and productivity work hand in hand the less turnover a company has the more productive. The second is internal fit as moderation. This is the interaction between the degree of human resources policy consistency and each of the scales measuring high performance work practices and also the relationship between the employee skills and organizational structures. The results were positive between skills and structures but the results between policy and work practices were insignificant. This helps me administrator because the research show that what is