Human resource management and business performance management

In this article, the authors argue that the approach that offers the best prospect of linking HRM practices and business performance is intellectual capital. The argument is made that intellectual capital, being a resource-based methodology in tune with the nature of the organization that is to be managed, provides a holistic view of the organization and hence will not mis-attribute effects to causes and thereby makes false claims about the effects of human resource management. They also argue that since the intellectual capital perspective is able to show which resources and which resource deployments are most influential in the creation of value and the intellectual capital perspective allows for the linking with rigorous measurement systems, it is eminently suitable for inclusion in modern human resource practices