A study on human resource practices of automobile firms in chennai

Abstract

Human resource of the organisation is the source of achieving competitive newlineadvantage because of its competency to convert the other resources (money, machine, newlinemethods and material) into output (product/service). They are one of the most important newlinefactors providing flexibility and adaptability to organisation (Khatri, 1999). Further, newlineRundle (1997) said that one needs to bear in mind that people (managers), not the firm, is newlinethe adaptive mechanism in determining how the firm will respond to the competitive newlineenvironment. newlineThe competitors can imitate other resources like technology, capital, raw material newlinebut it is quite impossible to imitate the human resources. All these factors made them a newlineunique resource and necessitate their effective management. Impact of human resource newlinemanagement practices on employee performance has been a widely researched area for newlineyears. Several Scholars have noted that managing people is more difficult than managing newlinetechnology or capital (Barney, 1991; Lado and Wilson, 1994). However, those firms that newlinehave learnt how to manage their human resources well would have an edge over others newlinefor a long time to come because acquiring and deploying human resources effectively is newlinecumbersome and takes much longer time (Wright et al.,2003). newlineIn today s competitive business environment, only the best managed and the most newlineefficient organisations can survive. Many different types of compensation and benefits newlinehave been used to attract, retain, and motivate employees and achieve organisational newlinegoals (Rynes and Gerhart, 2000; Barber and Bretz, 2000). Due to this reason, the research newlineon the relationship between Human Resource Management (HRM) and various newlineorganisational outcomes has augmented in the past several decades; thus, researchers newlinehave started to examine why and how organisations achieve their goals through the use of newlinehuman resource (HR) practices (Kaifeng, Lepak, Hu, and Baer, 2012