A Case Study Approach to Exploring the Relationship between Human Resources Management and Firm Performance
Fundación Instituto de Empresa, S.L.
January 24, 2007
IE Working Paper No. WP07-01
Research in the field of Strategic Human Resource Management (SRHM) has been especially wide and fruitful for the last two decades. Most of the work, however, has long been relied on cross-sectional studies and single respondent survey (SRSM) techniques. Models produced so far hence do not discuss the impact of people management practices over individuals and the relations among employee's outcomes and business unit or corporate results. The present paper presents a quantitative case study of a large financial services organization and explores the possible links among HR and individual and business unit levels of performance. Though being highly exploratory, the study raises a set of issues that might challenge some of the SHRM well-established statements such as the assumption of a direct, linear relationship between HR practices and business results, or the use of financial ratios as suitable indicators of the efficiency of people management practices.
Number of Pages in PDF File: 28
Keywords: Strategic HRM, firm performance, case study
JEL Classification: M12, D21
Date posted: July 11, 2007