ABSTRACT

The topic of adoption of innovative practices has come into existence as an outcome of progressive developments in management science and practice. Theoretical research argues that it is important to analyse organizations’ work practices as a coherent system. This systems perspective is based on the notion that human resource management (HRM) practices often complement each other, so that the adoption of one HRM practice is only effective when it is adopted in combination with one or more supporting work practices (Ichniowski and Shaw, 1999). Continuing with this line of thought, Colbert (2004) argued that ‘this system is a coherent whole, and that this system is of critical strategic importance – it includes the skills, behaviours, and interactions of employees that have the potential to provide both the foundation for strategy formulation and the means of strategy implementation. The firm’s HRM practices are strategic and are instrumental in developing the strategic capability of its pool of human resources’. The innovative strategic human resource (SHRM) practices are defined within the system of strategic human resource management. Ichniowski and Shaw (1999) had observed that more research is required on the limited adoption of innovative HRM practices. This article tries to understand and explore the adoption of strategic human resource management practices in the Indian context. Adoption of innovative SHRM practices within the framework of SHRM systems occur in highly complex social, political and economic environments (Kossek, 1987). Liberalization, growing competition and changing environments make adoption of innovative practices inevitable prerequisites for growth, success and survival of an organization (Kossek, 1987; Som, 2006b). Analysis of the adoption of innovative SHRM practices in organizations, therefore, requires a better understanding of the environment in which the skills, behaviours and interactions among employees within an organization function. For this article, innovative SHRM practices are defined as:

Any intentional introduction of HRM programme, policy, practice or system designed to influence or adapt employee the skills, behaviors, and interactions of employees and have the potential to provide both the foundation for strategy formulation and the means of strategy implementation that is perceived to be new and creates current capabilities and competencies. (Som, 2006b)