Human Resource Management and Corporate Performance in the UK

24 Pages Posted: 30 Oct 2003

See all articles by David Guest

David Guest

King's College London - The Management Centre

Jonathan Michie

University of London, Birkbeck College

Neil Conway

University of London - Birkbeck College

Maura Sheehan

University of Texas at Dallas - Naveen Jindal School of Management

Abstract

The relationship between HRM and performance was explored in 366 UK companies using objective and subjective performance measures and cross-sectional and longitudinal data. Using objective measures of performance, greater use of HRM is associated with lower labour turnover and higher profit per employee but not higher productivity. After controlling for previous years' performance, the association ceases to be significant. Using subjective performance estimates, there is a strong association between HRM and both productivity and financial performance. The study therefore confirms the association between HRM and performance but fails to show that HRM causes higher performance.

Suggested Citation

Guest, David and Michie, Jonathan and Conway, Neil and Sheehan, Maura, Human Resource Management and Corporate Performance in the UK. Available at SSRN: https://ssrn.com/abstract=418370

David Guest (Contact Author)

King's College London - The Management Centre ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom

Jonathan Michie

University of London, Birkbeck College ( email )

Department of Management
London WC1E 7HX
United Kingdom

Neil Conway

University of London - Birkbeck College ( email )

School of Management and Organizational Psychology
Malet Street
London WC1E 7HX
United Kingdom

Maura Sheehan

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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