2. HRM and organizational performance
The advent of management practices termed ‘high commitment’, ‘high involvement’
or ‘high performing’ have been closely linked to HRM and are claimed to have
a significant and positive impact on organizational performance (Ramsay et al.,
2000; Wood, 1999). Empirical studies have been conducted to demonstrate some
relationship between HR practices and organizational performance (Huselid, 1995;
MacDuffie, 1995).