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Top1. Introduction
Human resource management (HRM) practices and theories are explicitly established to attain better organizational and financial performances. HRM practices are mainly employee-centric and provide a different set of functions to enhance employee satisfaction, attitude, motivation, and productivity which lead to employee-level organizational outcomes (Marescaux, De Winne, & Sels, 2012). Advanced human resource practices play a significant role in the success of the firm. According to Bello-Pintado (2015), human resource systems are based on a variety of HRM practices that are aligned to accomplish organizational goals. Further, it is added that these practices work in concert rather than in isolation so employees should be exposed to the set of different HRM practices simultaneously to investigate the impact of the organizational outcomes. Pfeffer & Viega (1999) provide significant examples to suggest seven definite human resource management practices; targeted selection, workplace teams and decentralization, employee training, employment security, high pay contingent, reduction of status differentials; and business information sharing with employees – this collectively leads towards greater profits, higher revenues, better market value and rate of organizational survival. Jiang, Lepak, Hu, & Baer, (2012) pointed toward the distribution and categorization of HRM systems based on the sound measure. The purpose of this classification is to aim to enhance employees’ abilities (AB), motivation (MOT), and opportunity (OPP) – the AMO (Ability-Motivation-Opportunity) framework and AMO enhancing HRM practices – as a legitimate way of elaborating HRM practices construct.
AMO framework is a model of strategic HR which articulates the mechanism that HRM practices are a combination of three categories (McClean & Collins, 2018). The framework represents that specific HR practices are to enhance the knowledge, skills, and abilities (KSA) of the employee, to motivate through intrinsic rewards, compensation, and performance management, and to provide opportunities to express their talents in work (Boselie, Dietz, & Boon, 2005). Numerous researches contributed to the positive association of HRM practices of enhancing abilities, motivation, and opportunity with organizational outcomes, job satisfaction, and organizational performance (Vermeeren et al., 2014) growth and development (Žibert & Starc, 2018), and financial performance (Guest & Conway, 2011). Using the AMO framework, the study aims to deeply understand the relation of different HRM practices with each other by categorizing each into conventional HRM practices and their effect on worker-centric organizational outcomes. This study fostered the establishment of the concept of how A-M-O systems work to enhance employee-level organizational outcomes i.e., employee satisfaction, cooperative behavior, and work unit performance. Ability enhancing practices include adopting the best recruitment and selection process and to implement best training and development programs for human capital development and growth (McClean & Collins, 2018). Motivation enhancing practices are established to enhance the employee motivation through better compensation, rewards, job security, and high-performance management systems (Jiang et al., 2012). Opportunity enhancing practices to ensure that employees use their skills and capabilities to achieve optimum organizational targets. These practices allow reinforcing employee autonomy in decision making and how their work should be done. Combination of these practices increase the employee level organizational outcomes and reduce turnover and absenteeism in employees.