Understanding the HRM-Performance Link: A Literature Review on the HRM Strategy Formulation Process

Abstract

Although most studies in strategic human resource management literature have deeply examined the relationship between HRM and performance, extant literature has shown mixed and inconclusive results. In general, researchers have usually focused on how organizations implement their HRM strategies, using the traditional ‘content perspective’. In this sense, SHRM literature has paid less attention to the antecedents of these strategies and the internal dynamic by which HRM systems are defined. Therefore, considering the importance of formulation processes recognized in strategic process research, we propose an integrative model of study focused on the HRM strategy formulation process. From this point of view, we also identify different contingent factors that may impact this strategic process, trying to shed some more light on the complexity of this topic of research. Conclusions and implications of the study will be also discussed.