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Managing People to Promote Innovation
Author(s) -
Shipton Helen,
Fay Doris,
West Michael,
Patterson Malcolm,
Birdi Kamal
Publication year - 2005
Publication title -
creativity and innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.148
H-Index - 60
eISSN - 1467-8691
pISSN - 0963-1690
DOI - 10.1111/j.1467-8691.2005.00332.x
Subject(s) - remuneration , business , knowledge management , human resource management , production (economics) , performance appraisal , organizational learning , marketing , management , economics , computer science , finance , macroeconomics
There is growing evidence available to suggest that Human Resource Management (HRM) practice is an important predictor of organizational performance. Drawing upon organizational learning perspectives, we argue that HRM systems also have the potential to promote organizational innovation. We present longitudinal data from thirty‐five UK manufacturing organizations to suggest that effective HRM systems – incorporating sophisticated approaches to recruitment and selection, induction, appraisal and training – predict organizational innovation in products and production technology. We further show that organizational innovation is enhanced where there is a supportive learning climate, and inhibited (for innovation in production processes) where there is a link between appraisal and remuneration.