Human Resource Strategy

Human resource (HR) strategy focuses on the influence of HR systems on other outcomes. There are a number of models of HR strategy, three of which are considered in this entry:

• 1.
  The universalist perspective asserts that there is a set of best HR practices, and these practices affect firm performance.
• 2.
  The contingency model suggests that the effectiveness of organizations can be increased if HR practices are aligned with the internal and external characteristics of the organization.
• 3.
  The resource-based model contends that human resources may be viewed as an organizational advantage if it provides a unique pool of talent that is not easily imitated or substitutable.

It is also based on three key assumptions:

• 1.
  Human resources can be a source of competitive advantage.
• 2.
  HR practices have a direct influence on the knowledge, ...