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Human Resource Management and Corporate Performance in the UK

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  • 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.

Suggested Citation

  • David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, June.
    • Handle: RePEc:bla:brjirl:v:41:y:2003:i:2:p:291-314
    DOI: 10.1111/1467-8543.00273
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