The purpose of this paper is to propose a costs framework for harm of human resource management (HRM) practices to develop the cost measures for the psychological, social and work‐related health aspects of harm of HRM practices on stakeholders (employees, their family and communities) so as to understand the implications of harm on the stakeholders.
Initially, the cost components of health care are used to theoretically develop a costs framework for harm of HRM practices to measure cost for each of the psychological and the social aspects of harm of HRM practices. Subsequently, employee relative deprivation, spill over and crossover effects of work on family are the theories used to develop the cost measure for the psychological and the social harm of HRM practices. Finally, the direct costs associated with the psychological and the social harm of HRM practices on stakeholders are valuated using published research.
The proposed costs framework of harm of HRM practices is a useful theoretical framework to identify, measure and valuate the cost of psychological and social harm of HRM practices on the stakeholders.
The costs component framework of harm of HRM practices can facilitate the capture of the associated costs of the harm of HRM practices so as to understand organisations' ethics of care for stakeholders.
The theoretical costs framework for harm of HRM practices provides a new technique to measure the cost of psychological and social harm of certain HRM practices imposed on the stakeholders so as to minimise the harm in the future.
