HRM-performance research: under-theorized and lacking explanatory power

The search for a measurable link between HR practices and organizational performance is currently preoccupying HR professionals, consultants, government and academics. Empirical research on this human resource management-performance (HRM-P) link is, however, marred by a serious problem: it is under-theorized. While some (but by no means all) researchers on the HRM-P link are aware of the problem, none are prepared to face up to the scale of the implications. Without theory, research on the HRM-P link lacks explanatory power. The only ‘solution’ on offer (the assertion that theory will develop via more and/or better empirical work) has been less than successful: empirical research has multiplied with little or no theoretical development. Nor can it. The under-theorization and lack of explanatory power is rooted in the ‘scientific’ perspective that underpins empirical research. The paper draws upon critical realist philosophy to reveal exactly why the ‘scientific’ approach encourages under-theorization and lack of explanatory power and, furthermore, why the ‘solution’ on offer cannot solve the problem. The conclusion notes why the HR community should not avoid philosophical issues.