How Does Employee Involvement Stack Up? The Effects of Human Resource Management Policies on Performance in a Retail Firm

21 Pages Posted: 15 Dec 2009

See all articles by Derek C. Jones

Derek C. Jones

Hamilton College - Economics Department

Panu Kalmi

Aalto University - Department of Economics

Antti Kauhanen

ETLA, Research Institute of the Finnish Economy

Abstract

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.

Suggested Citation

Jones, Derek C. and Kalmi, Panu and Kauhanen, Antti, How Does Employee Involvement Stack Up? The Effects of Human Resource Management Policies on Performance in a Retail Firm. Industrial Relations: A Journal of Economy and Society, Vol. 49, Issue 1, pp. 1-21, January 2010. Available at SSRN: https://ssrn.com/abstract=1521256 or http://dx.doi.org/10.1111/j.1468-232X.2009.00584.x

Derek C. Jones (Contact Author)

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4381 (Phone)
315-859-4477 (Fax)

Panu Kalmi

Aalto University - Department of Economics ( email )

PO Box 1210
FI-00101 Helsinki
Finland

Antti Kauhanen

ETLA, Research Institute of the Finnish Economy ( email )

Arkadiankatu 21B
Helsinki, 00100
Finland

HOME PAGE: http://staff.etla.fi/kauhanen/

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