The development of sustainable HRM contributed to the increasing interest in practices encompassing the sustainable management of human resources (sustainable HRM, SHRM) and results of these practices. The paper introduces a new perspective upon the contribution of SHRM to creating value.
OBJECTIVE:
The objective of the present paper is to develop a conceptual framework linking the idea of SHRM with organizational value, and to determine the strength of an HRM system.
METHODS:
Methods applied in the study include the analysis and synthesis of scientific literature and a critical discussion considering provided references. The issue is discussed on the basis of a considerable number of theories, including the knowledge-based theory, stakeholder theory, and AMO framework.
RESULTS:
The results of the present study indicate that sustainable human resource management plays a significant and positive role in achieving organizational outcomes. It was shown that SHRM practices influence three levels of outcomes: (1) the organization (e.g. quality, efficiency, flexibility, innovation, profits), (2) society (e.g. stakeholder satisfaction, employment growth, social inclusion) and (3) the individual (e.g. good work-life balance, engagement, employability). Moreover, via the strength of the HRM system, it exerts an additional impact upon employees and external stakeholders.
CONCLUSIONS:
The managerial implications are for the corporate leaders to recognize the critical role of SHRM practices in implementing sustainable development and achieving economic, social and environmental benefits. For the academics, this paper is a wake-up call to extend research to investigate unexplored relationships between SHRM and performance/value.
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