HR practices and firm performance. Literature review

Abstract

This paper examining the important elements of human resource management (HRM) practices. This is done through detail review on relevant HRM theories and previous empirical studies. It is found that several practices such as training, recruitment, job design, employee compensation and performance appraisal exercise are important practices that relates to firms performance. The purpose of this essay is to review, analyze and discus about the existing literature regarding the relationships of Human Resources Practices and Firm performance. For that, some empirical studies have been analyzed, but, before the review of these studies, this essay will provide a theoretical framework that will lead to a better understanding of these practices and its effects on firm performance. After analyzing these studies and the methodology used to obtain the results, managerial conclusions will be made in order to determine which the effects are of develop a set of Human Resource practices on a business performance.