Theoretical and Empirical Investigation of Impact of Developmental HR Configuration on Human Capital Management

HR configurations facilitate flow of knowledge, which leads to sustainable competitive advantage. HR is always on the front line in developing the knowledge base in the organisation. HR practices are especially important in attracting, retaining and developing the skills and knowledge of employees. Hence the HR practices must be deliberately chosen and used strategically to maintain strong organisational boundaries to promote high levels of organisational and professional identity more specifically it encourages the retention of staff in a highly competitive industry. The study is carried on the basis field survey of Indian IT sector and found that a developmental HR configuration practices which is comprising of comprehensive training practices, promotion from within, developmental performance appraisal process, and skill based pay is positively related to an organisation’s level of human capital.