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HR Practices and Firm Performance: What Matters and Who Does It?

Listed author(s):
  • Fabling, Richard

    (Ministry of Economic Development, New Zealand)

  • Grimes, Arthur

    ()

    (Motu Economic & Public Policy Research and University of Waikato)

We examine the impact of human resource practices on firm performance. The analysis uses data from an economy-wide survey to determine whether firms that adopt certain individual HR practices, or that adopt a suite of practices, perform better than their rivals. We find that adoption of a suite of high performance practices (and adoption of specific practices pertaining to staff training and performance pay) impacts positively on firm outcomes. The strength of the relationships differ by firm size and age, having their strongest impact on small and large firms; curiously they do not appear relevant for mid-sized firms. The nature of firms that adopt high performance practices varies strongly according to size, age and sector.

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File URL: http://www.med.govt.nz/about-us/publications/publications-by-topic/occasional-papers/2007/07-02-pdf/view
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Paper provided by Ministry of Economic Development, New Zealand in its series Occasional Papers with number 07/2.

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Length: 32 pages
Date of creation: Jun 2007
Handle: RePEc:ris:nzmedo:2007_002
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  1. Ernst Fehr & Simon Gaechter, "undated". "Fairness and Retaliation: The Economics of Reciprocitys," IEW - Working Papers 040, Institute for Empirical Research in Economics - University of Zurich.
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  10. repec:pri:indrel:dsp01t435gc97f is not listed on IDEAS
  11. Fabling, Richard & Grimes , Arthur, 2006. "Practice Makes Profit: Business Practices and Firm Success," Occasional Papers 06/1, Ministry of Economic Development, New Zealand.
  12. Haltiwanger, John C. & Lane, Julia I. & Spletzer, James R., 2007. "Wages, productivity, and the dynamic interaction of businesses and workers," Labour Economics, Elsevier, vol. 14(3), pages 575-602, June.
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  17. Edward P. Lazear, 1996. "Performance Pay and Productivity," NBER Working Papers 5672, National Bureau of Economic Research, Inc.
  18. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-991, September.
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