A Critique Evaluation of The Relationship Between Human Resource Practice and Firm Performance: An Empirical Assessment of Firms in Malaysia

With the development of Economy around Malaysia develop fast, Malaysia found that many countries categorized as new power. In order to improve the economy in Malaysia like these countries, a research came out to analyze HRM in Malaysia( Osman et al.,2011). Osman et al.’s research aim to examine HR practices among firms in Malaysia by provide HRM history and current HR practices in Malaysia ,examine the trend of HRM practices among Malaysia firms and try to find out the relationship between HRM practices and firm performance in Malaysia. However, although the research is effective to help finding out the link between business and HRM, there are some limitations in this research. These limitation are identified in the definition of HRM, research design, result and result discussion. This paper will identify these limitations and analyze the disadvantages using in this research, then evaluate the limitations.
The first limitation in this research is the definition of the HRM. As the research mentioned in the history of Malaysia and current HR practices in Malaysia, the author outlined the time when Malaysia organizations began to use human resource practices, how many HR practices were find, about 11,585,000 people were employed in 2009 and Malaysia suffered a 3% deficit in 2009 because of the world economic crisis( Osman et al.,2011). However, the definition of HRM are not clear, three parts of HRM were included in 2009 which are training and development, performance appraisal management and career planning and development. But no definition was included in current HR practices in Malaysia, it is not clear about HRM, what are the HRM about and how to use HRM and what the consequence after use HRM were not identified in this