Significantly, these days careful management of this important resource calls for a strategic
focus on Human Resource Management (HRM) in the organization. Previous research
on HRM widely accepted that employees create an important source of competitive
advantage for firms (Barney, 1991; Pfeffer 1994). As a result, it is important that a firm
adopt HRM practices that make best use of its employees. This trend has led to increased
interest in the impact of HRM on organizational performance, and a number of studies
have found a positive relationship between so-called “high-performance work practices”
(Huselid, 1995) and different measures of company performance. Furthermore, there is
some empirical support for the hypothesis that firms, which align their HRM practices
with their business strategy, will achieve superior outcomes (Bae & Lawler, 1999).