Complexities and Controversies in Linking HRM with Organizational Outcomes

Catherine Truss

Journal of Management Studies, 2001, vol. 38, issue 8, 1121-1149

Abstract: Our understanding of the way in which human resource management (HRM) is linked to organizational performance is still limited, despite recent advances that use a quantitative approach to argue for a strong positive relationship between ‘High Performance Work Practices’ and firm financial performance. These studies are limited by their reliance on a single informant in each organization, and their emphasis on financial performance at the expense of a broader range of outcome variables. This paper contributes to the debate by analysing in detail the human resource policies and practices of one case‐study organization over a two‐year time period, using a variety of methodologies and drawing on a broad range of informants across the organization. Instead of devising a list of ‘best practice’ HRM from the literature and testing its impact on performance, we instead invert the question and take a firm that is financially successful and ask what HR policies and practices it uses. We also examine the way in which these policies are enacted. This methodology enables us to show that even successful organizations do not always implement ‘best practice’ HRM, and that there is frequently a discrepancy between intention and practice. Outcomes at the individual and organizational levels are complex and often contradictory; we question the extent to which is it possible or meaningful to attempt to measure the interrelationship between HRM, at the level of the formal system, and organizational performance, without taking into consideration the role played by the informal organization in the process and implementation of HR policies.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (37)

Downloads: (external link)
https://doi.org/10.1111/1467-6486.00275

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jomstd:v:38:y:2001:i:8:p:1121-1149

Ordering information: This journal article can be ordered from
http://www.blackwell ... s.asp?ref=00022-2380

Access Statistics for this article

Journal of Management Studies is currently edited by Timothy Clark, Steven W. Floyd and Mike Wright

More articles in Journal of Management Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().