Huselid (1995) also examined bundles of human resource practices. The bundle of human resource practices was termed high performance work practices. The definition of high performance work practices used by Huselid (1995) was adopted from Jones and Wright (1992) and included comprehensive employee recruitment and selection procedures, incentive compensation systems, performance management systems, and extensive employee involvement and training, can improve the knowledge, skills, and abilities of a firm’s current and potential employees, increase their motivation, reduce shirking, and enhance retention of quality employees while encouraging nonperformers to leave the firm. Human resource practices may influence employee skills through the
acquisition and development of a firm’s human capital pool. Recruiting can provide a
large pool of applicants and selection practices can influence the quality and type of skills
that new employees possess. Training can also assist in developing human capital. Also,
human resource practices can influence employee motivation by linking performance
with incentives (Huselid, 1995).