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HRM, Company Performance and Employee Well-being

Author

Listed:
  • Sinikka Vanhala

    (Helsinki School of Economics)

  • Kaija Tuomi

    (Finnish Institute of Occupational Health)

Abstract

This paper is dealing with the relationships between HRM, company performance and employee well-being. The relationship between S/HRM and company performance has received much attention in prior literature, while the employee perspective has been widely neglected in this research tradition. The purpose of this paper is two-fold: first, to identify and evaluate how company performance and employee well-being are related, and, secondly, to evaluate the possibilities of HR policies and practices to impact on company performance and employee well-being. The results indicate that the relationship between company performance and employee well-being is weak and difficult to grasp. And such is the direct link between HRM and employee well-being, which is better explained by typical work-related factors. Instead, HR practices are relatively good predictors of company performance.

Suggested Citation

  • Sinikka Vanhala & Kaija Tuomi, 2006. "HRM, Company Performance and Employee Well-being," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 17(3), pages 241-255.
    • Handle: RePEc:rai:mamere:1861-9908_mrev_2006_03_vanhala
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    File URL: http://www.hampp-verlag.de/hampp_e-journals_mrev.htm#306
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    Citations

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    Cited by:

    1. P. Sivapragasam & R. P. Raya, 2018. "HRM and Employee Engagement Link: Mediating Role of Employee Well-being," Global Business Review, International Management Institute, vol. 19(1), pages 147-161, February.
    2. Urtzi Uribetxebarria & Alaine Garmendia & Unai Elorza, 2021. "Does employee participation matter? An empirical study on the effects of participation on well-being and organizational performance," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(4), pages 1397-1425, December.
    3. Karoline Bax, 2022. "Do diverse and inclusive workplaces benefit investors? An Empirical Analysis on Europe and the United States," Papers 2208.10435, arXiv.org, revised Nov 2022.
    4. Laura Peutere & Antti Saloniemi & Simo Aho & Jouko Nätti & Tapio Nummi, 2018. "High-involvement management practices, job control, and employee well-being in the public and private sectors. Evidence from Finland," Transfer: European Review of Labour and Research, , vol. 24(4), pages 467-486, November.
    5. Petri Böckerman & Pekka Ilmakunnas, 2012. "The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data," ILR Review, Cornell University, ILR School, vol. 65(2), pages 244-262, April.
    6. Jyoti, Jeevan & Rani, Asha, 2019. "Role of burnout and mentoring between high performance work system and intention to leave: Moderated mediation model," Journal of Business Research, Elsevier, vol. 98(C), pages 166-176.

    More about this item

    Keywords

    HR Practices; Longitudinal Desing; Competitive Advantage; Organizational Commitment; Organizational Effecteveness; General Satisfaction; Emotional Exhaustion;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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