3rd Definition of SHRM: HR Systems Approach

First definition of SHRM is made by Devanna, Tichy and Fonbrum (1981, 1984). It is Michigan model. 1st definition relates HRM with strategic management. i.e., HRM affects firm-level strategies. Second definition is made by Wright and McMahan (1992). It relates HRM with performance. There exists direct relations between HRM and firm performance. Innovation capability of human resources provides of linear relation between HR and performance. HR make innovations, and it increases firm performance. This is linear relations in American HRM (HR (innovation) → performance). This study makes 3rd definition in SHRM. It relates performance with HR systems. Accordingly, HR applies HR systems in organizations that increases employee’s individual performance. and individual performance has impact on firm performance. In 3rd definition there is relation between HR system and performance through individual performance. Moderator is individual performance.