Mariappanadar, S. (2014). The model of negative externality for sustainable HRM. I. Ehnert, W. Harry, K. J. Zink. Sustainability and Human Resource Management 181-204. Germany: Springer. Retrieved from https://doi.org/10.1007/978-3-642-37524-8_8
Although human resource management (HRM) literature has provided abundant insight into strategies used to improve employee effectiveness for company performance, relatively limited research exists on the harm or negative externality that those HRM practices can have on employees and the community. This article explores the negative externality of HRM practices that is imposed by organizations on employees, their families and communities. A conceptual model of negative externality for Sustainable HRM is proposed to provide a framework for HRM practitioners and researchers to understand the resulting harm of some HRM practices on employees, their families and communities. To highlight the practical implications of the model, downsizing, a widely used business turnaround strategy to improve business efficiency, is analyzed for its negative externality. Subsequently, the role of Sustainable HRM practices which can minimize such harm is examined. Practical and empirical implications of the negative externality of HRM practices are explored.
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