Many arguments have emerged among theorists and empirical researchers on whether

strategic human resource management should always be positively related to

organizational performance. According to universalistic theorists, there is a universal set

of human resource management best practices that enhance firm performance and facilitate

employee psychological factors to rigorously involve in the job which consequently

facilitate organizational performance (Lau & Ngo, 2004). On the other hand, contingency

scholars hold different views and argue that the assumptions underlying the human

resource management strategy-performance link are applicable only under high external fit

conditions, termed the “best fit” school (Bamberger & Meshoulam, 2000; Boxall & Purcell,

2008).

Interestingly, Delery and Doty (1996) proposed the notion of the configurational

perspective which focuses on how unique patterns or configurations of multiple

independent variables are related to the dependent variable, by aiming to identify deal type

categories of not only the organizations but also the human resource strategy. In most firms

today, employees’ skills and commitment create a competitive advantage for the

organization. It is therefore important that organizations truly leverage on the workforce as

a competitive weapon to develop competitive advantage. Although most of the studies

suggested that strategic human resource management practices enhance performance, such

a one-way line of causation is unjustified (Edwards & Rees, 2006). The usual key critique

of strategic human resource management and organizational performance is that sound

theoretical development that explains how such human resource practices operate is absent

(Becker et al., 2001). In an effort to address such theoretical developments in this area,

researchers have proposed further studies to consider intermediate linkages between

strategic human resource management and institutional performance (Chuang & Liao,

2010). Accordingly, a better understanding of the strategic human resource management

role in creating and sustaining organizational performance and competitive advantage

should be achieved through further theoretical development and empirical evidence.

Becker and Huselid (1998) provided one of the most detailed models of the relationship

between human resource practices and firm performance offered to date. In essence, this

model suggests that business strategies drive the design of the human resource system. The

human resource system directly impacts employee commitment, skills and motivation and

the structure and design of work. These factors influence employee behavior, which

translates into improved operating performance. This drives profits and growth, resulting

in higher market value.

2.21.2 Meta-analysis Summary

At this juncture, the research would highlight that to keep abreast of trends and

developments in work performance system in strategic human resource management and

its association with institutional performance for analytical purposes, it is crucial to look at

some empirical studies that have been conducted in the area.

Therefore, to conduct the reviews, this section is divided into two sub-sections. First,

the research methodologies employed in the empirical studies are critically analyzed. That

is the extent to which these studies adhered to acceptable methodologies is discussed.

Secondly, the studies which touched specifically on the concept of work performance
system in strategic human resource management (such as staffing, training, involvement,

performance appraisal, compensation and caring) and its effect on institutional

performance will be discussed. The summary of these studies is presented in Table 2.1.

Thus, the descriptive meta-analysis encompassed sampling technique, instrument validity,

estimate of reliability, statistical technique, data collection procedures and so on. The

analysis was summarized in tabular form with eight categories under which items for

review were listed. These categories included the following

1) the author or authors’ names

2) year of publication

3) the focus or objectives of the studies

4) the setting (countries from which the subjects were drawn).

5) Sampling procedure (random, non-random, and no information on sample selection)

and data collection procedure. The last category examines (a) the instrument, (b) validity

of the instrument used to collect data and (c) reliability estimates of the instruments.

2.21.3 Objectives of the Selected Studies on Work Performance Systems

For the purpose of the present study, about 45 empirical studies that had been used to

study work performance system in strategic human resource management and its related

constructs such as staffing, training, involvement, caring, compensation, performance

appraisal, concern for employees and customers, customer knowledge and service

performance and helping behavior have been critically reviewed to highlight their
fulfillment of the empirical study procedures. This meta-analysis revealed that even though

all the studies reported related to various work performance systems and related constructs,

their objectives could be categorized into the following general areas:

a) Importance of work performance system in the institutional performance

b) Effect of work performance system on employees and their morale

c) Direct and indirect effects of work performance system on institutional performance

d) Importance of mediator variables such as employee’s satisfaction

e) Transformation of organization from traditional human resource management to

employee-oriented strategic human resource management