Rita McGrath

Improving Labor Productivity: Human Resource Management Policies Do Matter

Coauthor(s): Marianne Koch.

Despite the consistency with which the theoretical and normative connections between human resource management practices and firm-level performance outcomes are made, empirical studies that link the two are sparse. This paper presents results from a study of 319 business units that addresses this gap. Hypotheses are derived from a resource-based perspective on strategy. Positive and significant effects on labor productivity are found for organizations that utilize more sophisticated human resource planning, recruitment, and selection strategies. These effects are particularly pronounced in the case of capital-intensive organizations.

Source: Strategic Management Journal
Exact Citation:
Koch, Marianne, and Rita McGrath. "Improving Labor Productivity: Human Resource Management Policies Do Matter." Strategic Management Journal 17, no. 5 (May 1996): 335-54.
Volume: 17
Number: 5
Pages: 335-54
Date: 5 1996