The Impact of Human Resource Management Practices on Firm Performance (Applied Study from Universalistic and Contingency Perspectives)

(Mohammed Khair Salim Abu Zeid and Mohamed Mahmoud Miqdadi)

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Abstract

This study examines the effects of human resources management (HRM) practices on firm performance from the universalistic perspective and the alignment between business strategy and HRM practices. The sample of this study comprises 185 industrial companies working in King Abdullah II industrial city located in Jordan. Data were analyzed by using Factor analysis, Simple and Multiple regression and Path analysis. The main results of this study were: HRM practices applied at low and average levels, in addition, there is an impact of HRM practices on firm performance. Finally, the results reveal the effect of alignment between business strategy and HRM practices on firm performance. The study recommends that independent managerial unit responsible for HRM should be included in the organizational structure. The unit should be empowered for effective HRM. Key Words: Firm performance, HRM.
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