The research in the field of SHRM(strategic human resource management) argues the human capital in the firm can be regarded as one of the sources for competitive advantages of a firm and tries to find out ways to increase motivation and job skills of ...
The research in the field of SHRM(strategic human resource management) argues the human capital in the firm can be regarded as one of the sources for competitive advantages of a firm and tries to find out ways to increase motivation and job skills of employees and to improve the firm performance. Although there are many empirical studies on the association between human resource management practices and firm performance, only a few research focus on the internal process in which this association takes place. This study attempts to find out the moderating role of the effectiveness of human resource management practices in the relationship between high performance work systems and financial performance (return on asset) and non-financial performance (job satisfaction of employees). The results in this study show that there are positive associations between HR practices and financial/non-financial performance of a firm and the level of strength of these associations can be higher when firms effectively administer their HR practices.