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The Effect of Human Resource Management Practices on Farm Profitability: An Initial Assessment

Author

Listed:
  • Jeffrey Hyde

    (The Pennsylvania State University)

  • Lisa Holden

    (The Pennsylvania State University)

  • Richard Stup

    (Ag Choice Farm Credit)

Abstract

Sound human resource management practices such as performance bonuses, performance reviews and feedback, and standard operating procedures allow farm managers to improve the human capital, and profitability, on the farm. To date, no research of the impact of HRM practices on farm profitability has been published. This article provides a theoretical justification for analyzing the impacts of HRM practices on firm profitability. This model assumes that HRM practices are labor-augmenting technologies, causing existing labor to be more efficient in production. Empirical results provide little support for a positive relationship between HRM practices and farm profitability, although additional research is suggested.

Suggested Citation

  • Jeffrey Hyde & Lisa Holden & Richard Stup, 2008. "The Effect of Human Resource Management Practices on Farm Profitability: An Initial Assessment," Economics Bulletin, AccessEcon, vol. 17(12), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-08q00013
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    References listed on IDEAS

    as
    1. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), pages 1-15, October.
    2. Haden, Kimberly L. & Johnson, Larry A., 1989. "Factors Which Contribute To The Financial Performance Of Selected Tennessee Dairies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-8, July.
    3. Kauffman, Jonas B. III & Tauer, Loren W., 1986. "Successful Dairy Farm Management Strategies Indentified By Stochastic Dominance Analyses Of Farm Records," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(2), pages 1-10, October.
    4. Emanuel Melichar, 1979. "Capital Gains versus Current Income in the Farming Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1085-1092.
    5. Carin W. Rougoor & Ger Trip & Ruud B.M. Huirnc & Jan A. Renkema, 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(3), pages 261-272, May.
    6. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(2), pages 233-247, October.
    7. Haden, Kimberly L. & Johnson, Larry A., 1989. "Factors Which Contribute to the Financial Performance of Selected Tennessee Dairies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(1), pages 105-112, July.
    8. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B. M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, Blackwell, vol. 18(3), pages 261-272, May.
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    Cited by:

    1. Syed Waqar Ahmed & Danish Ahmed Siddiqui, 2020. "Human Resource Management, Total Quality Management and Competitive Advantages: Evidence from Pakistani Banking Industry," Human Resource Research, Macrothink Institute, vol. 4(1), pages 1-45, December.

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    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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