Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Effects of Human Resource Management Systems on Economic Performance: An International Comparison of U.S. and Japanese Plants

Contents:

Author Info

  • Casey Ichniowski

    (Columbia University, Business School, 713 Uris Hall, 3022 Broadway, New York, New York 10027)

  • Kathryn Shaw

    (Carnegie Mellon University, Graduate School of Industrial Administration, Room 250, Pittsburgh, Pennsylvania 15213)

Abstract

This study uses personally collected data from 41 steel production lines to assess the effects of Japanese and U.S. human resource management (HRM) practices on worker productivity. The Japanese production lines employ a common system of HRM practices including: problem-solving teams, extensive orientation, training throughout employees' careers, extensive information sharing, rotation across jobs, employment security, and profit sharing. A majority of U.S. plants now have one or two features of this system of HRM practices, but only a minority have a comprehensive system of innovative work practices that parallels the full system of practices found among the Japanese manufacturers. We find that the Japanese lines are significantly more productive than the U.S. lines. However, U.S. manufacturers that have adopted a full system of innovative HRM practices patterned after the Japanese system achieve levels of productivity and quality equal to the performance of the Japanese manufacturers. This study's evidence helps reconcile conflicting views about the effectiveness of adopting Japanese-style worker involvement schemes in the United States. United States manufacturers that have adopted a definition of employee participation that extends only to problem-solving teams or information sharing do not see large improvements in productivity. However, U.S. manufacturers that adopt a broader definition of participation that mimics the full Japanese HRM system see substantial performance gains.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1287/mnsc.45.5.704
Download Restriction: no

Bibliographic Info

Article provided by INFORMS in its journal Management Science.

Volume (Year): 45 (1999)
Issue (Month): 5 (May)
Pages: 704-721

as in new window
Handle: RePEc:inm:ormnsc:v:45:y:1999:i:5:p:704-721

Contact details of provider:
Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
Phone: +1-443-757-3500
Fax: 443-757-3515
Email:
Web page: http://www.informs.org/
More information through EDIRC

Related research

Keywords: human resource management; productivity; Japan;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Gupta, Vishal, . "Development of a Causal Framework linking High Perofrmance HRM Practices, Positive Psychological Capital, Creative Behaviours," IIMA Working Papers WP2013-03-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
  2. David J. Cooper & Matthias Sutter, 2011. "Role selection and team performance," Working Papers 2011-14, Faculty of Economics and Statistics, University of Innsbruck.
  3. Boselie, J.P.P.E.F. & Paauwe, J. & Jansen, P., 2000. "Human Resource Management and Performance," ERIM Report Series Research in Management ERS-2000-46-ORG, 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 University Rotterdam.
  4. Oswald, Andrew J. & Proto, Eugenio & Sgroi, Daniel, 2008. "Happiness and Productivity," The Warwick Economics Research Paper Series (TWERPS) 882, University of Warwick, Department of Economics.
  5. William Collier & Francis Green & Young-Bae Kim & John Peirson, 2008. "Education, Training and Economic Performance: Evidence from Establishment Survival Data," Studies in Economics 0822, Department of Economics, University of Kent.
  6. repec:cge:warwcg:107 is not listed on IDEAS
  7. David Cooper & John Lightle, 2013. "The gift of advice: communication in a bilateral gift exchange game," Experimental Economics, Springer, vol. 16(4), pages 443-477, December.
  8. Boselie, J.P.P.E.F. & Hesselink, M. & Paauwe, J. & van der Wiele, A., 2001. "Employee Perception on Commitment Oriented Work Systems," ERIM Report Series Research in Management ERS-2001-02-ORG, 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 University Rotterdam.
  9. Boselie, J.P.P.E.F. & Paauwe, J. & Richardson, R., 2002. "Human Resource management, Institutionalisation and Organisational Performance," ERIM Report Series Research in Management ERS-2002-41-ORG, 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 University Rotterdam.
  10. Nakamura, Tsuyoshi & Ohashi, Hiroshi, 2012. "Intra-plant diffusion of new technology: Role of productivity in the study of steel refining furnaces," Research Policy, Elsevier, vol. 41(4), pages 770-779.
  11. Boswell, Wendy R. & Bingham, John B. & Colvin, Alexander J.S., 2006. "Aligning employees through "line of sight"," Business Horizons, Elsevier, vol. 49(6), pages 499-509.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:45:y:1999:i:5:p:704-721. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.