THE ROLE OF STRATEGIC REFERENCE POINTS IN EXPLAINING THE NATURE AND CONSEQUENCES OF HUMAN-RESOURCE STRATEGY

We examine how managers use strategic reference points (SRPs) or bench marks to guide their strategic decision making with regard to human re source (HR) issues and how these benchmarks can affect the performance -based consequences of such decisions, After describing the reference points that are relevant to the HR system we develop propositions rega rding the likely configuration of such reference points and their impa ct on the nature of HR policies and practices. We also explain hour th e management of SRP fit and consensus can reduce the likelihood that H R policies end practices will have a negative effect on a firm's perfo rmance. Organizationwide implications are discussed.