High performance work systems, organisational culture and firm effectiveness

The HRM literature emphasises the importance of people in enhancing firm performance or even creating competitive advantage. This study provides further evidence on the link between so-called high performance work systems and firm performance and relates these to organisational culture. In total 175 organisations from different sectors in the Netherlands participated. Senior HR managers were questioned on HRM practices and chief executives on organisational culture. Three different groups of personnel are distinguished in the measures: core employees, managers and specialist professional staff. One high performance work system could be distinguished, consisting of a combination of practices with an emphasis on employee development, strict selection and providing an overarching goal or direction. Results of regression analyses controlling for sector, firm size and age show a significant impact of this system on several performance outcomes (perceived economic outcomes, beyond contract and absenteeism), as well as positive relationships with three organisational culture orientations. Practices that are not part of this combination also show some positive (but limited) links with culture and outcomes.

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