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How Does Employee Involvement Stack Up? The Effects of Human Resource Management Policies on Performance in a Retail Firm
Author(s) -
JONES DEREK C.,
KALMI PANU,
KAUHANEN ANTTI
Publication year - 2010
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.1468-232x.2009.00584.x
Subject(s) - productivity , business , human resource management , production (economics) , panel data , industrial organization , work (physics) , core (optical fiber) , human resources , resource (disambiguation) , knowledge management , value (mathematics) , marketing , computer science , microeconomics , economics , management , econometrics , mechanical engineering , telecommunications , computer network , engineering , macroeconomics , machine learning
The impact of innovative human resource management (HRM) practices on performance is investigated using panel data for all units of a retail firm. Our rich data include measures of the operating environment, important dimensions of core inputs, and information on HRM environments, and output is measured as value added. We estimate augmented production functions, including both establishment and manager fixed effects. When employees have opportunities to participate, and receive appropriate information and feedback from their supervisors, productivity is enhanced. Thus, even in settings where employees do simple tasks and are relatively low‐skilled, participatory work environments can enhance business performance.