A lot of the literature covering the link between human resource management
and firm performance is based on the universalistic or “best practices”
perspective that “implies a direct relationship between particular approaches to
human resources and performance". Many researchers have empirically
supported universalistic predictions. First there are those who focus on a single
or several HRM practices and examine their effect on various performance
measures. There are also similar studies examining the effect of bundles, or
systems, of HRM practices on performance. This stream of research implies that
firms should create a high degree of internal consistency among their HR
activities.