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Human Resource Practices

The article is devoted to the exploration of black box existing between company’s performance and human resource practices. Special attention in the article is paid to examining relationships between a set of network-building HR practices. Further, the article touches the aspects of internal and external social networks of the top teams of managers and executives as well as firm performance in the market. The article shows that the relationships between firm performance in the market and human resource practices are mediated mostly through the social networks of top managers.

The article argues that top management teams also affect sales growth and stock growth of the company. Recent researches in the strategic human resource management shows that it is necessary to rely on the resource-based view of the firm, because it would give an opportunity to explain the role of human resource practices and its affect on company performance in the market. It is necessary to outline that social networks are considered a source of competitive advantage, especially social networks and company performance is affected by using information-processing and “boundary-spanning” literatures.

Further, it is argued that companies are able to maintain the social networks though human resource practices. The article is of great

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significance for human resource management, because it aims at understanding the role of human resources in creating competitive advantage and in company’s performance meaning that the article discusses new alternative approaches to human resource management. This article contributes existing literature with recommendations and conclusions regarding the topic.

The article concludes that strategic human resource management should examine employee-based and other company capabilities, because they may act as links between human resources and company’s performance. The findings presented in the article contribute the idea that social networks play important role for company’s stability and development.

References Collins, Ch. , & Clark, K. (2003). Strategic Human Resource Practices. Academy of Management Journal, 46, 6, 740-751.

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