The impact of human resource management on organisational performance: Theory and research

This article by Jean-Marie Hiltrop, considers some of the models which have studied the link between HRM and organisational performance. As yet, there is little real evidence, but it is growing and indicates that corporate HRM policies and practices - including ‘best’ practices - are associated with high (financial) performance, and can encourage employee behaviour and attitudes towards strengthening the competitive strategy of an organisation. But such ‘best’ practices can vary widely and even contradict each other. Questions are raised in the article about these ‘best’ practices.The first part of the article looks at the relevant theoretical models, and the second part reviews the findings of recent empirical studies which have evaluated the effects of distinctive HR practices on organisational outcomes.