ABSTRACT - University of the Philippines Diliman（抽象u2014u2014菲律宾Diliman大学）.pdfVIP

“THE INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON FIRM PERFORMANCE: AN EXPLORATORY STUDY OF PHILIPPINE BANKS” Aliza D. Racelis PhD Candidate College of Business Administration University of the Philippines Quezon City, Philippines aliza.racelis@up.edu.ph ABSTRACT Human resource management (HRM) is the effective management of people at work. Since a firm’s human resources are an important potential source of sustained competitive advantage, managing them well helps create unique competencies that differentiate products and services and, in turn, drive competitiveness (Ivancevich, 2003; Cappelli and Crocker-Hefter, 1996). This link, in principle, facilitates successful corporate performance. An increasing body of work contains the argument that there exists a positive relationship between so-called “high performance work practices” and different measures of company performance (Fey and Björkman, 2001). Such “high performance work practices” include comprehensive employee recruitment and selection procedures, incentive compensation and performance management systems, and extensive employee involvement and training. A number of studies have found a positive relationship between HRM practices and policies, and different measures of company performance (Fey and Björkman, 2001). For example, a significant positive relationship was found between organizations’ use of human resource staffing practices and both annual profit and profit growth among a cross-section of industries (Terpstra and Rozell, 1993).