In this modern era, high competition among business sectors makes them strive for high performance in order to gain competitive advantage. Every organization has efficiency resources that play certain roles for its performance. As a result, organizations need to manage these resources and one of the most important resources is manpower. Labor is believed to be the “glue” that holds all other resources together and causes them to exhibit efficiency results. (Offstein et al, 2005 cited in Mathis and Jackson, 2008: 5-6) Human resource management has been recognized as an essential resource for innovation, competitive advantage and productivity. In fact, many studies and research suggest that human resource management functions will lead to competitive advantage. (Chen and Hsieh, 2005: 161) It has several policies which are recruitment and selection, reward management, performance evaluation, development and training and employee involvement. Some assume that recruitment and selection are the most important HRM policies for achieving competitive advantage by attracting and selecting the right people. However, others recognize that reward management plays a vital role in motivating employees, leading to increased performance to a competitive advantage. Many view recruitment and selection as essential to a company's strategy to achieve high performance. Hiring the right employee for a position has always been important and the appointment of the candidate is considered to be the most difficult decision that the employer can ever make. (IRS, 1991) Additionally, recruitment and selection are recognized as effective factors in human recruitment...... middle of article......(Mathis and Jackson 2004. P 333) This case reflects Adam's theory of fairness. However, this would cause some problems in the working environment. The fact that certain employees are rewarded rather than others would create disagreements and prevent employees from working among themselves again. (Mathis and Jackson 2004. P 333) This would likely lead to poor performance and the organization's goals would not be achieved. In terms of individual effort and performance, this is recognized in the form of three widely common variable pay packages. These can include piece-rate systems, sales commissions and bonuses. Although these elements are considered a motivator for some managers, it could harm the performance of the organization in general. Indeed, some employees would focus on individual efforts and performances, which could lead to ignoring those of others who are in competition. (Mathis and Jackson 2004. P 333)