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

Type of Work

Article

Date

1-2010

Journal Title

Industrial Relations

Journal ISSN

0019-8676

Journal Volume

49

Journal Issue

1

First Page

1

Last Page

21

DOI

10.1111/j.1468-232X.2009.00584.x

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.

JEL Classification: L25, M12, M54

Hamilton Areas of Study

Economics

Link to Full Text

Share

COinS