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This article synthesizes findings from five case studies conducted in firms known to be leaders in the management of people. We drew three broad conclusions:
1. The foundation of a value-added HR function is a business strategy that relies on people as a source of competitive advantage and a management culture that embraces that belief;
2. A value-added HR function will be characterized by operational excellence, a focus on client service for individual employees and managers, and delivery of these services at the lowest possible cost; and
3. A value-added HR function requires HR managers that understand the human capital implications of business problems and can access or modify the HR system to solve those problems. © 1999 John Wiley & Sons, Inc.
Introduction
The recent emphasis among practitioners and academics on "people" (and people management systems) as a source of competitive advantage has focused increasing interest on the science and practice of Human Resource Management. Indeed, it would appear that the field of HRM is "coming of age" as the end of the millennium approaches. While academic research has made a number of significant contributions to these developments, Steve Kerr of General Electric has argued persuasively that much of the best work is being done by consultants and professionals in the field (Hodgetts, 1996). In fact, one could make a convincing case that the practice of strategic HRM has outpaced the academic work on this topic. Yet, data on how firms actually manage people to provide a source of competitive advantage are scarce, and studies that compare and contrast human capital management systems in leading firms are even more difficult to find. Indeed, while the empirical literature linking better HRM with firm performance has consistently found that more effective HR management is associated with superior financial performance (see Becker & Huselid, 1998, for an overview), what is missing is a clearer understanding of how these processes operate, and subsequently, how firms might actually manage their people to help provide a source of competitive advantage.
In this special issue of Human Resource Management, we attempt to provide some insight into the "state of the practice" through the presentation of five detailed case studies describing the HRM strategies employed by firms known to be leaders...