Human resources (HR) management addresses those policies, practices, and activities concerned with the management of people in organizations. Although it is typically considered at multiple levels of analysis, it provides an important context for the application of work and organizational psychology. Core research questions address the determinants of HR strategy and practices adopted by organizations and how these are linked to outcomes including in particular organizational performance and employee wellbeing. Much research explores this linkage process including how far HR practices are able to ensure employee abilities, motivation, and opportunities to contribute; the distinctive role of human capital; how employees react to these practices; and the steps management can take to ensure their effective implementation. Most research confirms an association between the adoption of a greater number of what are typically termed “high performance” or “high involvement” HR practices and higher organizational performance and employee wellbeing. However, doubts remain about the causal direction of the association. Continuing research challenges include how best to measure HR practices, understanding more about contextual influences, and incorporating more fully the role of employee attitudes and behavior including employee attributions about the motives of management in their use of HR practices.
