The nature of the interaction betwe

The nature of the interaction between HRM and performance, and particularly the search for conclusive
evidence of the decisive positive impact of the former on the latter, is for many the whole subject area‟s
„Holy Grail‟. Yet, despite the substantial empirical evidence that has been amassed worldwide in the ten
years since the pioneering studies into this relationship (Arthur, 1994; Guest and Hoque, 1994; Huselid,
1995; Kalleberg and Moody, 1994; MacDuffie, 1995; Snell and Youndt, 1995), a memorable summation
of the state of play in 1997 remains apposite. Researchers in the field still require „a theory about HRM, a
theory about performance, and a theory about how they are linked‟ (Guest, 1997: 263). A review of
progress is therefore timely