THE DILEMMA OF INVESTING ON HUMAN RESOURCES: A RISKY INITIATIVE?

Abu Hena Mohammad Manzurul Arefin, Md Altab Hossin, Md Sajjad Hosain, Md Aktaruzzaman

Abstract


The only resource of an organization that has life and can be motivated is its employees. Like any other resources, this area also requires investment that involves risk. This paper aims at emphasizing the necessity of investing on human capital as well as the risks involved in such investment from firms’ perspective. The bases of this descriptive paper are the previous literatures only. The authors hope that this investigative paper and the suggestions made based on experts’ view will be helpful to the academicians for further research and the top level decision makers specially the HR departments to take investment decisions on their employees more wisely and with utmost care.

 

Article visualizations:

Hit counter

DOI

Keywords


human resources, investment, dilemma, risk, competitive advantage, firm

Full Text:

PDF

References


Amabile, T. M. (1996). Creativity in Context. Westview: Boulder Co.

Allen, D. G., Shore, L. M. & Griffeth, R. W. (2003). The role of perceived organizational support and supportive human resource practices in the turnover process. Journal of Management, 29, 99-118.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 19, 99-120.

Bartel, A. P. (1994). Productivity gains from the implementation of employee training programs. Industrial Relations, 33, 411-425.

Bhattacharya, M. & Wright, P. M. (2000). Recognizing risks in human capital investments: A real options approach to strategic human resource management. Center for Advanced Human Resource Studies, Cornell University ILR School, Working paper series, 1-20.

Beugelsdijk. (2008). Strategic human resource practices and product innovation. Organization Studies, 29, 821-847.

Choi, J. N. (2010). The effects of human resource development investment and learning practices on innovative performance of organizations. California Digital Library. Retrieved from https://escholarship.org/uc/item/6cw286pv

Collins, C. J. & Smith, K. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high technology firms. The Academy of Management Journal, 49, 544-560.

Colbert, B. A. (2004). The complex resource based view: Implications for theory and practice in strategic human resource management. Academy of Management Review, 29, 341-358.

Delaney, J. T. & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal, 39, 949-969.

Gachuru, Z. & Kwasira, J. (2016). Assessment of use of competency based pay system in enhancing employee productivity in state corporations in Nakuru Town, Kenya. Journal of Investment and Management, 5(6), 122-129.

Hosain, M. S. (2016). Impact of best HRM practices on retaining the best employees: A study on selected Bangladeshi firms. Asian Journal of Social Sciences and Management Studies, 3(2), 108-114.

Hosain, M. S. (2015). Adoption of proper HRM practices: A technique for retaining employees and increasing firm performance? Scholar Journal of Business and Social Science, 1(1), 1-14.

Hosain, M. S. (2014). The influence of financial and non-financial rewards; and employee empowerment on task motivation and firm performance of Bangladeshi front line employees: A critical approach. European Journal of Business and Management, 6(7), 156-168.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity and corporate financial performance. Academy of Management Journal, 38, 635-672.

Kang, S. C., Shad, M. & Scott, S. (2007). Relational archetypes organizational learning, value creation: Extending the human resource architecture. Academy of Management Review, 32, 236-256.

Koch, M. J., Rita, G., & McGrath. (1996). Improving labor productivity: Human resource management policies do matter. Strategic Management Journal, 17, 335-354.

Lau, C. M. & Ngo, H. Y. (2004). The HR system, organizational culture and product innovation. International Business Review, 13, 685-703.

Laursen K. & Foss, N. (2003). New human resource management practices complementarities and the impact on innovation performance. Cambridge Journal of Economics, 27, 243-263.

Laursen, K. & Mahnke, V. (2001). Knowledge strategies, firm types and complementarily in human resource practices. Journal of Management and Governance, 5, 1-27.

Marchington, M. & Grugulis, I. (2000). Best practice human resource management: Perfect opportunity or dangerous illusion. International Journal of Human Resource Management, 11, 1104-1124.

Mello, J. A. (2014). Strategic Management of Human Resources (Third edition). Canada: Cengage Learning

Miller, K. & Bromiley, P. (1990). Strategic risk and corporate performance: An analysis of alternative risk measures. Academy of Management Journal, 33, 759-779.

Nonaka, I. & Takeuchi, H. (1995). The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation. UK: Oxford University Press.

Pfeffer, J. (1998). The Human Equation: Building Profits by Putting People First. Boston. MA: Harvard Business School Press.

Shalley, C., Zhou, J. & Oldham, G. (2004). The effects of personal and contextual characteristics on creativity: Where should we go from here? Journal of Management, 30, 933-958.

Shipton, H., Fay, D., West, M., Patterson, M., & Birdi, K. (2005). Managing people to promote innovation. Creativity and Innovation Management, 14, 118-128.

Shore, L. M. & Wayne, S. J. (1993). Commitment and employee behavior, Comparison of affective commitment, continuance commitment with organizational support. Journal of Applied Psychology, 78, 774-780.

Subramony, M., Krause, N., Norton, J. & Burns, G. (2008). The relationship between human resource investments and organizational performance: A firm level examination of equilibrium theory. Journal of Applied Psychology, 93, 778-788.

Souitaris, V. (2002). Firm-specific competencies determining technological innovation: A survey in Greece. R & D Management, 32, 61-77.

Valle, R., Martin, F., Romero, P. M. & Dolan, S. L. (2000). Business strategy work processes and human resource training: Are they congruent? Journal of Organizational Behavior, 21, 283-297.

Wright, P. M. & Boswell, W. R. (2002). Desegregating HRM: A review and synthesis of micro and macro human resource management research. Journal of Management, 28, 247-276.

Wright, P. M. & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18, 295-320.




DOI: http://dx.doi.org/10.46827/ejhrms.v0i0.372

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 European Journal of Human Resource Management Studies

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal Of Human Resource Management Studies (ISSN 2601-1972) is a registered trademark. All rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.