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Human Resource Management and Corporate Performance in the UK
Author(s) -
Guest David E.,
Michie Jonathan,
Conway Neil,
Sheehan Maura
Publication year - 2003
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/1467-8543.00273
Subject(s) - productivity , human resource management , business , association (psychology) , performance management , profit (economics) , human resources , performance indicator , demographic economics , turnover , operations management , industrial organization , labour economics , economics , marketing , psychology , management , microeconomics , economic growth , psychotherapist
Abstract The relationship between HRM and performance was explored in 366 UK companies using objective and subjective performance measures and cross‐sectional and longitudinal data. Using objective measures of performance, greater use of HRM is associated with lower labour turnover and higher profit per employee but not higher productivity. After controlling for previous years’ performance, the association ceases to be significant. Using subjective performance estimates, there is a strong association between HRM and both productivity and financial performance. The study therefore confirms the association between HRM and performance but fails to show that HRM causes higher performance.