HRM and company performance: the use of measurement and the influence of economic cycles

HRM and company performance: the use of measurement and the influence of economic cycles he debate on human res ource managem en t sugg ests its role is cen tra l to organis ational success (Fombrun et al, 1984; Golden and Ramanujam, 1985; Lengnick-Hall and Lengnick-Hall, 1988; Guest, 1990; Walker, 1992; Patterson et al, 1990). In HRM thinking, human resources are viewed as an asset rather than merely a cost to be minimised. Along with the models of excellence (Peters and Waterman, 1982; Peters and Austin, 1985) and the debate on core competencies (Hamel and Prahalad, 1994), HRM has established a strategically important position. Attention is increasing ly focused therefore on the linkages between HRM and the rest of the business. In particular, the issue of measurement has recently moved to centre stage. This article explores the relationship between HR measures and company performance. Empirical data collected from Finnish companies and public sector organisations are used as a basis for the interrogation of the interrelationships, and also to reveal the de® ciencies of current measures. We argue that the de® ning feature related to the empirical data is the dominance of economic cycles. Our data were collected in the midst of the deepest and longest recession in post-war Finland. The impact of http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Human Resource Management Journal Wiley

HRM and company performance: the use of measurement and the influence of economic cycles

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Publisher
Wiley
Copyright
Copyright © 1998 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0954-5395
eISSN
1748-8583
DOI
10.1111/j.1748-8583.1998.tb00166.x
Publisher site
See Article on Publisher Site

Abstract

he debate on human res ource managem en t sugg ests its role is cen tra l to organis ational success (Fombrun et al, 1984; Golden and Ramanujam, 1985; Lengnick-Hall and Lengnick-Hall, 1988; Guest, 1990; Walker, 1992; Patterson et al, 1990). In HRM thinking, human resources are viewed as an asset rather than merely a cost to be minimised. Along with the models of excellence (Peters and Waterman, 1982; Peters and Austin, 1985) and the debate on core competencies (Hamel and Prahalad, 1994), HRM has established a strategically important position. Attention is increasing ly focused therefore on the linkages between HRM and the rest of the business. In particular, the issue of measurement has recently moved to centre stage. This article explores the relationship between HR measures and company performance. Empirical data collected from Finnish companies and public sector organisations are used as a basis for the interrogation of the interrelationships, and also to reveal the de® ciencies of current measures. We argue that the de® ning feature related to the empirical data is the dominance of economic cycles. Our data were collected in the midst of the deepest and longest recession in post-war Finland. The impact of

Journal

Human Resource Management JournalWiley

Published: Apr 1, 1998

References

  • Organizational fit and acquisition performance: effects of post‐acquisition integration
    Datta, Datta
  • SBU strategy and performance: the moderating effects of the corporate‐SBU relationship
    Golden, Golden
  • Human resource management and the American dream
    Guest, Guest
  • Methodological issues in cross‐sectional and panel estimates of the human resource ‐ firm performance link
    Huselid, Huselid; Becker, Becker
  • Planned patterns of strategic behavior and their relationship to business‐unit performance
    Robinson, Robinson; Pearce, Pearce
  • The relationship of staffing practices to organizational level measures of performance
    Terpstra, Terpstra; Rozell, Rozell
  • Human resource management in Finland
    Vanhala, Vanhala

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