Theorizing HRM and (Firm) Performance Relationship from the Human Nature Perspective

The question of whether or not HRM matters is one that has occupied much of HR academics’ thinking over the last decade. Although hard data on the relationship between HRM and (firm) performance is now available, our understanding of the link to performance (often known as the ‘black box’ problem) has been and remains a mystery. The purpose of this paper is to correct this gap. Taking a human nature perspective, I argue that (firm) performance is a function of the employees’ skills, knowledge and abilities (KSAs), motivation/commitment to organizations, perception of fairness/equity, and managers’ metaphilosophical assumptions about employee behavior .