Bundling of Human Resource Management Practices


According to Macduffie (1995), human resource bundles are a combination of human resource practices that are consistent and interconnected. The bundles are expected to create a greater impact on organizational performance. It has been suggested that a bundle of interrelating and consistent practices yield greater results in terms of performance than the individual practices yield (Perry-Smith and Blum, 2000).

Performance may be said to be dependent on the employee’s ability and the motivation to work. Therefore, human resource practices should aim at enhancing both. By bundling the practices, an organization can achieve greater performance (Dyer and Reeves 1994, p. 5). However, several studies have argued that different bundles affect performance differently. Some are thought to produce greater results.

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Bundling of Human Resource Management Practices
Post Your Own Question And Get A Custom Answer
Hire Writer

This paper argues that the bundling of human resource practices may result in improved organizational performance, particularly when they are aligned with the organizational strategy and policies. First, this paper will highlight the effects of bundling in various contexts then provide evidence to show how the results are achieved when HR bundles are linked to the organization’s policies and strategies.

Bundling Of Human Resource Management Practices

Macduffie (1995) argued that maximum firm performance could be achieved when there were mechanisms that enabled individual employees to be assessed regularly. These ideas were similar to those proposed by Gooderham, Parry, and Ringdal (2008). Macduffie performed a study to investigate the effects of bundling of the human resource practices on the productivity and quality of assembly plants.

His argument was based particularly on the importance of human resource bundles on manufacturing performance. From his study, he was able to conclude that human resource bundles contributed to plant productivity and quality. However, he reiterated that these bundles could only be used to achieve greater performance if they were integrated with the manufacturing policies.

Macduffie explained that the bundling of human resource practices was more effective than the use of individual practices. The bundles would help shape the relationships between and among leaders and workers.

According to the author, the bundling of human resource practices is the only way to ensure that innovative human resource practices contributed to the improved economic performance of the organization. Bundling of the practices would enable employees to achieve exemplary knowledge and skills.

Consequently, it would ensure that the employees are motivated enough to use the given skills and knowledge for the good of the organization. However, it would be useless to have highly skilled and motivated employees and not be able to channel that potential towards the improvement of performance.

It is argued that overlapping and interrelated human resource practices should be bundled together to ensure that employees acquire skills in various ways. Examples of such bundles include on-the-job training, job rotations, and problem-solving groups. Several incentives could then be used to ensure motivation. Examples could include both extrinsic and intrinsic rewards. Extrinsic rewards may include monetary rewards.

Intrinsic rewards may be in the form of allowing the employees to participate in decision-making or ensuring that there is good job design. In the production industry, bundling of manufacturing practices and human resource practices could lead to increased performance.

In his study, Macduffie explored the differences between the industries that employed the traditional mass production systems and those that bundled human resource practices (flexible production). He was able to conclude that those that used bundles of human resource practices were able to outperform their counterparts in both quality and productive capacity.

From the results, it is evident that there is a relationship between innovative human resource activities and organizational performance. Shah and Ward (2003) also investigated the effects of bundles of lean manufacturing practices on operational performance.

Their results indicated that the bundles had a significant effect on the operating performance of the plants. Each bundle contributed towards the bettering of the manufacturing performance. However, they noted that factors such as plant size and plant age negatively influenced performance even when lean bundles were applied.

Gooderham, Parry, and Ringdal (2008) addressed the impact of human resource bundles on firm performance. They assessed 15 bundles, which were classified into three groups. These groups included the calculative, intermediary, and collaborative bundles. The calculative model mainly emphasizes that greater performance can be achieved when there are mechanisms to assess individual workers.

In particular, monitored use of training and performance rewards is important. Examples include training and monitoring, group-bonus, performance-related pay, profit sharing, share options, and evaluation of the human resource department. The collaborative approach, on the other hand, emphasizes that employees must be recognized as important stakeholders in the company.

Therefore, the employee is placed at the center of the organization’s interests. It is argued that without this being put in place, the employees would not be motivated and this would only result in distrust and resentment.

Consequently, this would lead to a lack of willingness to take responsibility for the company’s performance. Examples of such bundles include employee involvement, communication to management, communication of finance, communication of strategy, and communication on the organization of work. The intermediary category consists of bundles that may not be readily categorized into either of the two groups above.

Such bundles include career development, downsizing methods, and having wider jobs. From the study, the authors concluded that most of the calculative and intermediary human resource management bundles influenced the firms’ performance. However, collaborative bundles did not. The authors also argued that it was possible that human resource management bundles needed to be aligned with the organization’s strategic goals.

It was also suggested that these practices had to complement each other for the organization to achieve positive outcomes. The authors also suggested that other mediators might significantly influence the relationship between human resource practices and organizational performance.

Therefore, they suggested that human resource personnel were required to have a good understanding of the company’s strategic process to provide more strategically integrated directions. The study done by Stavrou and Brewster (2005) was similar to that of Gooderham, Parry, and Ringdal. They identified 15 human resource management bundles.

Of these bundles, six of them positively influenced organizational performance. However, one of the bundles negatively influenced performance. For example, training positively influenced performance. However, this study disagreed with some of the findings by Gooderham, Parry, and Ringdal.

Particularly, it suggested that communication on finance and communication on the organization had positive effects on organizational performance.

They argued that sharing information on important issues in the organization helped to ensure trust. For this reason, the employees could feel that they had been entrusted with great responsibility and that they were significant. Therefore, they would feel the need to put in great efforts to improve the performance of the organization.

Research has shown that human resource bundles have effects on the performance of organizations (Ahmad and Schroeder, 2003). However, there is evidence to suggest that the bundles should be aligned with the organization’s policies to ensure maximum output. Many organizations strive to develop highly skilled employees with conceptual knowledge but do little to motivate them to contribute both mentally and physically.

There is no point in having highly skilled individuals who are not willing to put the organization’s interest at heart. Research indicates that employees would be able to use their efforts towards problem-solving initiatives if their interests were aligned with those of their organizations. Their motivation comes with the knowledge that the organization would also reciprocate by investing in them.

Therefore, an ideal situation is whereby the human resource policies ensure job security and ensure compensation of the employees based on performance. The policies should also aim at reducing the status barriers between the employees and managers.

Dyer and Reeves (1994, p. 14) also appreciate the fact that maximum output in terms of performance is achieved when the human resource practices are linked with the organization’s strategies and other elements of organizational contexts. However, he argued that little research had been done to ascertain the position.


Human resource practices are meant to improve the performance of the organization (Delaney and Huselid, 1996). Bundling of human resource practices is a concept that has been employed in virtually every type of organization and business. This has ensured that the practices contribute to the enhancement of the employees’ ability to perform and their motivation to work to enhance performance.

Therefore, the organization put in place measures to ensure that the employees acquire the required skills (Lepak, Liao, Chung, and Harden, 2006). This may be done through off-the-job training, careful selection, on-the-job training, and various other ways.

Motivation, on the other hand, is enhanced through monetary or nonmonetary rewards. For the bundles to work efficiently, it is necessary to align them with the organization strategy. This would ensure that the employees are motivated enough to be responsible for the organization’s performance.


Ahmad, S & Schroeder, R 2003, ‘The impact of human resource management practices on operational performance: Recognizing country and industry differences’, Journal of Operations Management, vol. 21, no. 1, pp. 19-43.

Delaney, J & Huselid, M 1996, ‘The impact of human resource management practices on perceptions of organizational performance’, Academy of Management Journal, vol. 39, no. 4, pp. 949-969.

Dyer, L & Reeves, T 1994, Human resource strategies and firm performance: What do we know and where do we need to go, Ithaca, Cornell University.

Gooderham, P, Parry, E & Ringdal, K 2008, ’The impact of bundles of strategic human resource management practices on the performance of European Firms’, The international Journal of Human Resource Management, vol. 19, no. 11, pp. 2041-2056.

Lepak, D, Liao, H, Chung, Y & Harden, E 2006, ‘A conceptual review of human resource management systems in strategic human resource management research’, Personnel and Human Resources Management, vol. 25, no. 1, pp. 217-271.

Macduffie, J 1995, ‘Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry’, Industrial and Labor Relations Review, vol. 48, no. 2, pp. 197-221.

Perry-Smith, J & Blum, T 2000, ‘Work-Family human resource bundles and perceived organizational performance’, Academy of management Journal, vol. 43, no. 6, pp. 1107-1117.

Shah, R & Ward, P 2003, ‘Lean manufacturing: Context, practice bundles, and performance’, Journal of Opereration Management, vol. 21, no. 1, pp. 129-149.

Stavrou, E & Brewster, C 2005, ‘The configurational approach to linking strategic human resource management bundles with business performance: Myth or reality’, Management Revue, vol. 16, no. 2, pp. 186-201.

Calculate the price of your paper
Pages (550 words)
Approximate price: -

Why Hire a Professional Essay Writer from MyHomeworkGeeks

Quality Urgent Essays

Domyhomeworkk online platform provides the best essay writing service ever received elsewhere, thanks to our professional essay writers. Experience gained in the 10+ years of being in the assignment writing industry is also an added advantage.

Professional and Experienced Academic Writers

A lot is done to maintain us as the best essay writing service provider. Besides owning a degree from a recognized university, a writer must pass the rigorous tests we take them through before they are considered eligible to offer urgent essay help on our website.

Affordable Urgent Assignment Help

Who said a reliable website should not be cheap also? While it is human nature to associate prices with quality, that does not always work. At domyhomeworkk.com, we guarantee you cheap and urgent essay help without compromising the quality.

24/7 Available Urgent Essay Writing Service

Whether it is a ‘write my essay for me cheap’ or ‘edit my essay’ order you want to request, always feel free to reach us at any time of the day. Our experts work in shifts to ensure that you access urgent essay writing services at any time of the day.

Plagiarism Free Essays Online

The punitive measures that come with plagiarized content are so harsh, and we understand that. We consequently ensure to write each client’s papers from scratch no matter how urgent the essay is. To acknowledge borrowed content, our quick writer references and cites the work.

Wow Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

So much stress and so little time? Take care of yourself: let us help you with your tasks. We offer all kinds of writing services.


Custom Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Have a homework question? Get help from verified tutors now!