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Do Organisational Climate and Strategic Orientation Moderate the Relationship Between Human Resource Management Practices and Productivity?

Author

Listed:
  • Andrew Neal
  • M Patterson
  • M West

Abstract

Contingency formulations of Human Resource Management (HRM) theory suggest thatthe effectiveness of HRM practices should vary across firms. This study examinedwhether the relationship between HRM practices and productivity in manufacturingcompanies is contingent upon organizational climate and strategic orientation.Information on HRM, organizational structure, and competitive strategy was collected byinterviewing senior managers, whilst organizational climate was assessed via employeesurveys. Although organizational climate and HRM practices were both positivelyassociated with subsequent productivity, the relationship between HRM practices andsubsequent productivity was stronger for firms with a poor climate.

Suggested Citation

  • Andrew Neal & M Patterson & M West, 2004. "Do Organisational Climate and Strategic Orientation Moderate the Relationship Between Human Resource Management Practices and Productivity?," CEP Discussion Papers dp0624, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0624
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    Keywords

    Human Resource Management; organisational structure; organisationalclimate; productivity;

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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