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Human resource orientation and corporate performance
Author(s) -
Lam Long W.,
White Louis P.
Publication year - 1998
Publication title -
human resource development quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.756
H-Index - 65
eISSN - 1532-1096
pISSN - 1044-8004
DOI - 10.1002/hrdq.3920090406
Subject(s) - human resources , business , orientation (vector space) , human resource management , psychology , knowledge management , management , computer science , economics , geometry , mathematics
HRD has been seen as an issue that is critical for U.S. corporations so that they can remain competitive. Yet little has been known about the strategic role of HRD and how it may influence corporate performance. In this study, we have argued that HRD plays an immensely strategic role when combined with effective recruitment and compensation policies. These three activities together contribute to the company's human resource (HR) orientation and create sustainable competitive advantages for organizations. Data from fourteen manufacturing industries supported the proposition that companies with a strong HR orientation performed significantly better than firms with a weaker HR orientation. Suggestions were offered with respect to the strategic and developmental role of HR management.