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Human Resource Management and Corporate Performance in the UK

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Author Info
David E. Guest
Jonathan Michie
Neil Conway
Maura Sheehan
Abstract

The relationship between HRM and performance was explored in 366 UK companies using objective and subjective performance measures and cross-sectional and longitudinal data. Using objective measures of performance, greater use of HRM is associated with lower labour turnover and higher profit per employee but not higher productivity. After controlling for previous years' performance, the association ceases to be significant. Using subjective performance estimates, there is a strong association between HRM and both productivity and financial performance. The study therefore confirms the association between HRM and performance but fails to show that HRM causes higher performance. Copyright Blackwell Publishing Ltd/London School of Economics 2003..

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1467-8543.00273
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Publisher Info
Article provided by Blackwell Publishers Ltd/London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 41 (2003)
Issue (Month): 2 (06)
Pages: 291-314
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:brjirl:v:41:y:2003:i:2:p:291-314

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  1. Hartog, D.N. den & Boselie, J.P.E.F. & Paauwe, J., 2004. "Performance Management: A model and research agenda," Research Paper ERS-2004-068-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  2. Pedro S. Martins, 2008. "Worker Churning and Firms’ Wage Policies," Working Papers 13, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. [Downloadable!]
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  3. Wei Chi & Richard B. Freeman & Morris M. Kleiner, 2007. "Adoption and Termination of Employee Involvement Programs," NBER Working Papers 12878, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Cristina Simon & Pilar Rojo, 2007. "Beyond ´revenue per head´?: human capital metrics, firm performance and the teaching of HRM in..," Working Papers Economia wp07-05, Instituto de Empresa, Area of Economic Environment. [Downloadable!]
  5. Chris Doucouliagos & Patrice Laroche, 2007. "Unions and Profitability: A Meta-Analysis," Economics Series 2007_01, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  6. John S. Heywood & W.S. Siebert & Xiangdong Wei, 2005. "High Performance Workplaces and Family Friendly Practices: Promises Made and Promises Kept," IZA Discussion Papers 1812, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Cristina Simon, 2007. "A case study approach to exploring the relationship between HR management and firm performance," Working Papers Economia wp07-01, Instituto de Empresa, Area of Economic Environment. [Downloadable!]
  8. Almudena Cañibano & David Marsden, 2009. "Participation in Organisations: Economic Approaches," CEP Discussion Papers dp0945, Centre for Economic Performance, LSE. [Downloadable!]
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