HRM, Company Performance and Employee Well-being

Sinikka Vanhala () and Kaija Tuomi ()
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Sinikka Vanhala: Helsinki School of Economics
Kaija Tuomi: Finnish Institute of Occupational Health

management revue. Socio-economic Studies, 2006, vol. 17, issue 3, 241-255

Abstract: This paper is dealing with the relationships between HRM, company performance and employee well-being. The relationship between S/HRM and company performance has received much attention in prior literature, while the employee perspective has been widely neglected in this research tradition. The purpose of this paper is two-fold: first, to identify and evaluate how company performance and employee well-being are related, and, secondly, to evaluate the possibilities of HR policies and practices to impact on company performance and employee well-being. The results indicate that the relationship between company performance and employee well-being is weak and difficult to grasp. And such is the direct link between HRM and employee well-being, which is better explained by typical work-related factors. Instead, HR practices are relatively good predictors of company performance.

Keywords: HR Practices; Longitudinal Desing; Competitive Advantage; Organizational Commitment; Organizational Effecteveness; General Satisfaction; Emotional Exhaustion (search for similar items in EconPapers)
JEL-codes: F23 J53 M10 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (7)

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