2. The nature of the link between HRM and OP
Two broad research streams have emerged during the course of the study concerning
the relationship between HRM and OP. The first stream advocates that HRM practices have a direct effect on organisational performance (e.g. Schuler and Jackson, 1999;Chand and Katou, 2007), whilst the second stream argues that HRM practices only can have an indirect effect on OP (e.g. Wright et al., 2003).