HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

Abstract

Purpose

The purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.

Design/methodology/approach

The paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.

Findings

The paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.

Originality/value

The paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

Citation

Bandyopadhyay, C. and Srivastava, K.B.L. (2021), "HR signals in the context of HRM-firm performance relationship: development of a conceptual framework", International Journal of Productivity and Performance Management, Vol. 70 No. 2, pp. 376-390. https://doi.org/10.1108/IJPPM-03-2019-0141