Review on Strategic Human Resource Management Systems

Abstract

It has been well recognized for its impact on organizational performance for over 30 years that strategic human resource management (SHRM) has been observed. Human resource systems instead of individual HR practices are an important characteristic of strategic human resource management research. Literature reviews on theories of SHRM are the focus of this paper. Using SHRM studies as a framework, we explain the meanings, identify the variables, and explain how they affect SHRM. In order to accomplish a strategic objective, HR systems must influence (1) employee knowledge, skills, and abilities, (2) employee motivation, and (3) opportunities for employee engagement. A review of the literature suggests that organizational performance, organizational strategy, human resource management systems, and human resource outcomes are the variables used in various studies. A link between human resource management and organizational performance is found to be mediated by human resource outcomes. Furthermore, the review suggests actionable steps to improve the conceptual clarity and refinement of HR systems research, focusing both on analyzing systems at different levels of analysis, as well as conceptualizing, HR systems should measure, combine, and analyze practices.