Basically, the idea is that a particular set of HR practices has the potential to bring about improved performance for all organizations and that certain bundles of HR practices can contribute to improved employee attitudes and behaviors, lower levels of absenteeism and labor turnover, and higher levels of productivity, quality and customer service. These HR bundles, in turn, are seen as generating higher levels of profitability.
HR practices which help organizations achieve competitive advantage in the marketplace.
Same basic HR policies and practices universally enhance business performance in every organization, irrespective of particular product markets, business goals and organizational circumstances. 5