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The impact of human resource management practices on turnover, productivity, and corporate financial performance. (1995)

by John T Delaney , Mark A Huselid
Venue:Academy of Management Journal,
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A resource-based perspective on corporate environmental performance and profitability

by Michael V. Russo, Paul A. Fouts, Neil Fargher, David Levy, John Mahon, Alan Meyer, Peter Mills - Acad. Management J , 1997
"... Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. We tested these hypotheses wit ..."
Abstract - Cited by 312 (3 self) - Add to MetaCart
Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. We tested these hypotheses with an analysis of 243 firms over two years, using independently developed environmental ratings. Results indicate that "it pays to be green " and that this relationship strengthens with industry growth. We conclude by highlighting the study's academic and managerial implications, making special reference to the social issues in management literature. We wish to express our appreciation to the Franklin Research and Development Corporation for allowing us to use their proprietary database and to Roger Chope and Steven Matsunaga for assistance with methodological issues. We also thank Thomas
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...ffects of previously established central tendencies in our models. Total explained variance is at or above levels obtained in other studies estimating return ratios and using control variables (e.g., =-=Huselid, 1995-=-; Ilinitch & Zeithaml, 1995; Tosi & Gomez-Mejia, 1994).TABLE 2 Regression Results, Pooled Data a Variable Model 1 Model 2 Model 3 Constant -2.64 -2.86 -2.99 (2.17) (2.16) (2.14) Firm growth rate 0.31...

The human resource architecture: Toward a theory of human capital allocation and development

by P. Lepak, Scott A. Snell, David P. Lepak, Scott A. Snell - Academy of Management Review , 1999
"... Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at ..."
Abstract - Cited by 250 (7 self) - Add to MetaCart
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at
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...sand human capital, focusing on the extent toswhich a set of practices is used across all em-sployees of a firm as well as the consistency ofsthese practices across firms (see Gerhart &sTrevor, 1996, =-=Huselid, 1995-=-, and Snell & Dean,s1992, for notable exceptions). By ignoring thespossible existence of different employmentspractices for different employee groups within asfirm, much of the strategic HRM literatur...

High Performance Work Systems and Firm Performance: A Synthesis of Research and Managerial Implications

by Brian E Becker, Mark A Huselid, B E Becker, M A. Huselid - Research in Personnel and Human Resource Management , 1998
"... The strategic role of human resource management (HRM), and specifically, the influence of a firm's HRM system on its financial performance, has generated considerable interest within the academic and practitioner communities. This paper reviews the theoretical foundations for a HRM-firm perform ..."
Abstract - Cited by 243 (6 self) - Add to MetaCart
The strategic role of human resource management (HRM), and specifically, the influence of a firm's HRM system on its financial performance, has generated considerable interest within the academic and practitioner communities. This paper reviews the theoretical foundations for a HRM-firm performance relationship and focuses particularly on the potential of a high-performance work system to serve as an inimitable resource supporting the effective implementation of corporate strategy and the attainment of operational goals. Special attention is devoted to the methodological challenges inherent in the prior empirical work that has adopted this systems perspective, and what we can learn from research at different levels of analysis. We next summarize the evolution of our own work on the subject and present new findings that bear on the magnitude of the HRM strategy-firm performance relationship.
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...rmancecontingent incentive compensation systems, management development and training activities linked to the needs of the business, and significant commitment to employee involvement (Arthur, 1994 ; =-=Huselid, 1995-=- ; Ichniowski, Shaw, & Prennushi, 1997 ; Jackson & Schuler, 1995 ; MacDuffie, 1995 ; Milgrom & Roberts, 1995 ; Pfeffer, 1994) . An internally consistent and coherent HRM system that is focused on solv...

How to Compete: the Impact of Workplace Practices and Information Technology on productivity

by S. Black, L. Lynch Abstract, Ra Black, Lisa Lynch - Review of Economics and Statistics , 2001
"... Using data from a unique nationally representative sample of businesses, the Educational Quality of the Workforce National Employers Survey (EQW-NES), matched with the Bureau of the Census ’ Longitudinal Research Database (LRD), we examine the impact of workplace practices, information technology an ..."
Abstract - Cited by 203 (2 self) - Add to MetaCart
Using data from a unique nationally representative sample of businesses, the Educational Quality of the Workforce National Employers Survey (EQW-NES), matched with the Bureau of the Census ’ Longitudinal Research Database (LRD), we examine the impact of workplace practices, information technology and human capital investments on productivity. We estimate an augmented Cobb Douglas production function with both cross section and panel data covering the period of 1987S1993 using both within and GMM estimators. We find that what is associated with higher productivity is not so much whether or not an employer adopts a particular work practice, but rather how that work practice is actually implemented within the establishment. We also find that those unionized establishments that have adopted what have been called new or ‘transformed ’ industrial relations practices that promote joint decisionmaking coupled with incentive based compensation have higher productivity than other similar non-union plants, while those businesses that are unionized but maintain more traditional labor management relations have lower productivity. We also find that the higher the average educational level of production workers or the greater the proportion of non-managerial workers who use computers, the higher is plant productivity.

Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance,’

by Mark A Huselid , Susan E Jackson , Randall S Schuler - Academy of Management Journal, , 1997
"... We evaluated the impact of human resource (HR) managers' capabilities on HR management effectiveness and the latter's impact on corporate financial performance. For 293 U.S. firms, effectiveness was associated with capabilities and attributes of HR staff. We also found relationships betwe ..."
Abstract - Cited by 183 (2 self) - Add to MetaCart
We evaluated the impact of human resource (HR) managers' capabilities on HR management effectiveness and the latter's impact on corporate financial performance. For 293 U.S. firms, effectiveness was associated with capabilities and attributes of HR staff. We also found relationships between HR management effectiveness and productivity, cash flow, and market value. Findings were consistent across market and accounting measures of performance and with corrections for biases. There is broad agreement that a strategic approach to human resource management (HRM) involves designing and implementing a set of internally consistent policies and practices that ensure a firm's human capital (employees' collective knowledge, skills, and abilities) contributes to the achievement of its business objectives Paradoxically, the preliminary empirical research, which established a relationship between HRM policies and practices and firm performance, made little distinction between policies and practices that reflect the more traditional, or technical, personnel perspective and those that reflect the adoption of the strategic human resource management perspective. Moreover, prior work has not considered the types of capabilities of human resources staffs associated with the effective implementation of these two types of HRM policies and practices. In this article, we attempt to improve upon the prior empirical literature on this topic by focusing on the impact of overall HRM quality on firm performance. We first develop the argument that HRM effectiveness, which We are grateful to IBM and Towers-Perrin for their support of this research. 171

The cross-national diversity of corporate governance: dimensions and determinants.

by R Aguilera, G Jackson - Academy of Management Review, , 2003
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Abstract - Cited by 153 (17 self) - Add to MetaCart
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...orporatist associations (Crouch, Finegold, & Sako, 1999). Firms may become free riders in appropriating skills that they have not helped generate, thus leading to a high potential for market failure (=-=Huselid, 1995-=-). Meanwhile, direct state provision may help overcome this dilemma, yet leave a considerable gap between training provided and skills demanded from firms (Boyer, 1988). In the United States, a mix of...

Managing Customer Services, Human Resources Practices, Quit rates and Sales Growth ", The Academy of Management

by Rosemary Batt, Rosemary Batt - Journal , 2002
"... This paper has not undergone formal review or approval of the faculty of the ILR School. It is intended to make results of Center research available to others interested in preliminary form to encourage discussion and suggestions. Page 1Managing Customer Services WP 00-07 This study examines the rel ..."
Abstract - Cited by 142 (5 self) - Add to MetaCart
This paper has not undergone formal review or approval of the faculty of the ILR School. It is intended to make results of Center research available to others interested in preliminary form to encourage discussion and suggestions. Page 1Managing Customer Services WP 00-07 This study examines the relationship between human resource practices, employee quit rates, and organizational performance by drawing on a unique nationally representative sample of 354 customer service and sales establishments in the telecommunications industry. Multivariate analyses show that quit rates are lower and sales growth is higher in establishments that emphasize high skills, employee participation in decision-making and in teams, and HR incentives such as high relative pay and employment security. Quit rates partially mediate the relationship between human resource practices and sales growth. These relationships also are moderated by the customer segment that frontline employees serve.
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...resource management has made considerable progress in documenting a link between organizational performance and human resource (HR) strategies that invest in the human capital of the workforce (e.g., =-=Huselid, 1995-=-; Ichniowski et al., 1996; Becker & Gerhart, 1996). These strategies, often referred to as "high involvement" or "high performance" systems, generally include coherent sets of HR practices that enhanc...

Knowledge Exchange and Combination: The Role of Human Resource Practices in the Performance of High-Technology Firms

by Christopher J Collins, Christopher J. Collins, Ken G. Smith - Academy of Management Journal , 2006
"... In this study, we developed and tested a theory of how human resource practices affect the organizational social climate conditions that facilitate knowledge exchange and combination and resultant f i rm performance. A field study of 136 technology companies showed that commitment-based human resour ..."
Abstract - Cited by 84 (2 self) - Add to MetaCart
In this study, we developed and tested a theory of how human resource practices affect the organizational social climate conditions that facilitate knowledge exchange and combination and resultant f i rm performance. A field study of 136 technology companies showed that commitment-based human resource practices were positively related to the organizational social climates of trust, cooperation, and shared codes and language. In turn, these measures of a firm's social climate were related to the firm's capability to exchange and combine knowledge, a relationship that predicted f irm revenue from new products and services and f irm sales growth. There is a widely held belief that an organization's survival and success are at least partially dependent on the effort, behaviors, and interactions of employees as they carry out the mission and strategy of the f irm (Wright & McMahan, 1992). Strategic human resource scholars have argued that companies can effectively influence the interactions, behaviors, and motivation of employees through different human resource (HR) practices (Huselid, 1995; Wright, Dunford, & Snell, 2001). In this regard, two HR practice alternatives have emerged in the literature: transaction-based HR practices, which emphasize individual short-term exchange relationships,
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...candidates who are a f i t to the company (Delery & Doty,s1996; Tsui et al., 1997); organization- or team-based compensation designed to increasesknowledge sharing and commitment to the organization (=-=Delaney & Huselid, 1996-=-; Delery & Doty,s1996); and training and performance appraisal that enable employee growth and developmentsand build firm-specific knowledge (Arthur, 1992; Youndt et al., 1996). By demonstrating highs...

Desegregating HRM: A Review and Synthesis of Micro and Macro Human Resource Management Research

by Patrick M. Wright, Wendy R. Boswell - Journal of Management , 2002
"... Since the early 1980s the field of HRM has seen the independent evolution of two indepen-dent subfields (strategic and functional), which we believe is dysfunctional to the field as a whole. We propose a typology of HRM research based on two dimensions: level of analysis (individual/group or organiz ..."
Abstract - Cited by 82 (5 self) - Add to MetaCart
Since the early 1980s the field of HRM has seen the independent evolution of two indepen-dent subfields (strategic and functional), which we believe is dysfunctional to the field as a whole. We propose a typology of HRM research based on two dimensions: level of analysis (individual/group or organization) and number of practices (single or multiple). We use this framework to review the recent research in each of the four subareas. We argue that while significant progress has been made within each area, the potential for greater gains exists by looking across each area. Toward this end we suggest some future research directions based on a more integrative view of HRM. We believe that both areas can contribute significantly to each other resulting in a more profound impact on the field of HRM than each can contribute independently. © 2002 Elsevier Science Inc. All rights reserved. Yearly Reviews of Human Resource Management (HRM) appearing in Journal of Management have consistently attempted to balance the reviewing of micro, tradi-tional, functional aspects of the field and more macro, or strategic aspects of HRM. Mahoney and Deckop’s (1986) review began this dichotomization, identifying a number of trends within the field, such as a move from personnel administration to HRM and a move from human resource planning to strategy. Three years later, Fisher (1989) further distin-guished between the macro and micro wings of HRM. She noted the distinction between the concerns of top HR executives such as tying HR to strategy and dealing with strategic
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...the other hand, some recent research has focused on sets of HR practices. These research studies treat multiple HR practices as a system, whether referred to as a high performance work system (HPWS) (=-=Huselid, 1995-=-) or as an HR practice configuration (e.g., Delery & Doty, 1996; Lepak & Snell, 1999). This approach tends to assume that individual practices can complement, substitute for, or even conflict with oth...

Work-family human resource bundles and perceived organizational performance

by E. Perry-smith, Terry C. Blum, Jill E. Perry-smith, Terry C. Blum - Academy of Management Journal , 2000
"... JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JS ..."
Abstract - Cited by 79 (0 self) - Add to MetaCart
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
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