Human resource management systems and firm performance

Purpose – The purpose of this study is to test a model where human resource inputs (e.g. motivation, employee skill) and human resource processes/practices (e.g. training and development; profit sharing) are hypothesized to contribute uniquely and positively to organizational outputs, i.e. job performance and firm performance.Design/methodology/approach – The cross‐sectional study consisted of 350 business professionals (91 percent managers; 9 percent consultants) from a midwestern US professional organization who took a battery of survey measures via the internet.Findings – After statistically controlling for the background variables (organizational type, size and status), the hierarchical regression analyses demonstrated that both the human resource inputs and process/practice variables explained statistically significant variance in each of the nine regression models. The effect size in each model was medium to large.Originality/value – The findings illustrate the considerable utility of researchers an...

[1]  Jack H. Knott,et al.  Are Training Subsidies for Firms Effective? The Michigan Experience , 1993 .

[2]  G. Cumming,et al.  A Primer on the Understanding, Use, and Calculation of Confidence Intervals that are Based on Central and Noncentral Distributions , 2001 .

[3]  T. Lawson,et al.  Measuring the Performance Impact of Human Resource Initiatives , 2001 .

[4]  W. Shadish,et al.  Experimental and Quasi-Experimental Designs for Generalized Causal Inference , 2001 .

[5]  D. Dillman Mail and internet surveys: The tailored design method, 2nd ed. , 2007 .

[6]  Sundar G. Bharadwaj,et al.  Sustainable competitive advantage in service industries: A conceptual model and research , 1993 .

[7]  Zeki Simsek,et al.  A Primer on Internet Organizational Surveys , 2001 .

[8]  Roberto M. Fernandez,et al.  Skill‐Biased Technological Change and Wage Inequality: Evidence from a Plant Retooling1 , 2001, American Journal of Sociology.

[9]  Thomas A. Kochan,et al.  Assessing the Effects of Industrial Relations Systems and Efforts to Improve the Quality of Working Life on Organizational Effectiveness , 1985 .

[10]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[11]  M. Clinton,et al.  An Examination of Basic Skills Education and Its Effect on Performance. , 1999 .

[12]  Long W. Lam,et al.  Human resource orientation and corporate performance , 1998 .

[13]  W. Borman,et al.  Expanding the Criterion Domain to Include Elements of Contextual Performance , 1993 .

[14]  Anita M. McGahan,et al.  What Do We Know About Variance in Accounting Profitability? , 2002, Manag. Sci..

[15]  D. D. Hartog,et al.  High performance work systems, organisational culture and firm effectiveness , 2004 .

[16]  A. Bartel Productivity Gains from the Implementation of Employee Training Programs , 1991 .

[17]  T. Reio,et al.  Employer assessment of work‐related competencies and workplace adaptation , 2006 .

[18]  D. Aaker Managing Assets and Skills: The Key to a Sustainable Competitive Advantage , 1989 .

[19]  David E. Terpstra,et al.  THE RELATIONSHIP OF STAFFING PRACTICES TO ORGANIZATIONAL LEVEL MEASURES OF PERFORMANCE , 2006 .

[20]  S. J. Motowidlo,et al.  Evidence that task performance should be distinguished from contextual performance. , 1994 .

[21]  Clair Brown,et al.  Technical Change, Wages, and Employment in Semiconductor Manufacturing , 2001 .

[22]  J. Barney,et al.  On becoming a strategic partner: The role of human resources in gaining competitive advantage , 1998 .

[23]  B. Tabachnick,et al.  Using Multivariate Statistics , 1983 .

[24]  John E. Delery,et al.  Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions , 1996 .

[25]  W. Borman,et al.  A Theory of Individual Differences in Task and Contextual Performance , 1997 .

[26]  K. Sheehan,et al.  Flaming, Complaining, Abstaining: How Online Users Respond to Privacy Concerns , 1999 .

[27]  R. Jacobs Determining the boundaries of HRDQ and HRD , 2000 .

[28]  I. Fulmer,et al.  ARE THE 100 BEST BETTER? AN EMPIRICAL INVESTIGATION OF THE RELATIONSHIP BETWEEN BEING A “GREAT PLACE TO WORK” AND FIRM PERFORMANCE , 2003 .

[29]  P. Wright,et al.  Theoretical Perspectives for Strategic Human Resource Management , 1992 .

[30]  Jamie L. Callahan,et al.  Affect, Curiosity, and Socialization-Related Learning: A Path Analysis of Antecedents to Job Performance , 2004 .

[31]  Thomas G. Reio,et al.  Field Investigation of the Relationship among Adult Curiosity, Workplace Learning, and Job Performance. [and] Invited Reaction: Relationship among Adult Curiosity, Workplace Learning, and Job Performance. , 2000 .

[32]  Mark A. Huselid The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance , 1995 .

[33]  Geary A. Rummler,et al.  Improving Performance: How to Manage the White Space on the Organization Chart , 1990 .

[34]  Terry C. Blum,et al.  Work-family human resource bundles and perceived organizational performance , 2000 .

[35]  Mark A. Huselid,et al.  The Impact of Human Resource Management Practices on Perceptions of Organizational Performance , 1996 .

[36]  A. Carmeli,et al.  The relationships between intangible organizational elements and organizational performance , 2004 .

[37]  A. Karami,et al.  Strategic human resource management and resource‐based approach: the evidence from the british manufacturing industry , 2004 .

[38]  Steven G. Rogelberg,et al.  Nonresponse to Mailed Surveys , 1998 .

[39]  Augustine A. Lado,et al.  Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective , 1994 .

[40]  Jamie L. Callahan,et al.  Making Subjective Judgments in Quantitative Studies: The Importance of Using Effect Sizes and Confidence Intervals. , 2006 .

[41]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[42]  J. Stevens Applied Multivariate Statistics for the Social Sciences , 1986 .

[43]  Fernando Martín‐Alcázar,et al.  Transforming Human Resource Management Systems to Cope with Diversity , 2012 .

[44]  James G. Combs,et al.  HOW MUCH DO HIGH-PERFORMANCE WORK PRACTICES MATTER? A META-ANALYSIS OF THEIR EFFECTS ON ORGANIZATIONAL PERFORMANCE , 2006 .

[45]  M. Porter Competitive Advantage: Creating and Sustaining Superior Performance , 1985 .