The Practice of Strategic Human Resource Management in a Developing Country

Abstract

Firms are continuously improving their human resource management (HRM) practices in order to achieve sustainable competitive advantage and increase their profitability. These practices include employee involvement, training, empowerment, compensation and rewards, etc. The purpose of this research is to examine the relationship between human resource practices and firm performance. Using companies in Saudi Arabia, this study tests the proposition that HR practices (including training, job design, employee skills, employee attitudes, employee motivation, etc) has an impact on the performance of the different business units in this group.