THE IMPACT OF HUMAN RESOURCE AND OPERATIONAL MANAGEMENT PRACTICES ON COMPANY PRODUCTIVITY: A LONGITUDINAL STUDY

Within the strategic human resource management (SHRM) perspective, psychology‐based practices, especially empowerment, extensive training, and teamwork, are seen as vital to sustained competitive advantage. Other approaches, such as those of integrated manufacturing and lean production, place greater emphasis on operational initiatives such as total quality management, just‐in‐time, advanced manufacturing technology, and supply‐chain partnering as determinants of organizational performance. We investigated the relative merits of these practices through a study of the productivity of 308 companies over 22 years, during which time they implemented some or all of these 7 practices. Consistent with SHRM theory we found performance benefits from empowerment and extensive training, with the adoption of teamwork serving to enhance both. In contrast, none of the operational practices were directly related to productivity nor did they interact with other practices in ways fully consistent with the notions of integrated manufacturing or lean production.     

ON THE VALIDITY OF SUBJECTIVE MEASURES OF COMPANY PERFORMANCE

Subjective measures of company performance are widely used in research and typically are interpreted as equivalent to objective measures. Yet, the assumption of equivalence is open to challenge. We compared the use of both types of measure in 3 separate samples. Findings were consistent in showing that: (a) subjective and objective measures of company performance were positively associated (convergent validity); (b) those relationships were stronger than those between measures of differing aspects of performance using the same method (discriminant validity); and (c) the relationships of subjective and objective company performance measures with a range of independent variables were equivalent (construct validity).     

EFFECT OF TEMPORARY CONTRACTS ON PERCEIVED WORK CHARACTERISTICS AND JOB STRAIN: A LONGITUDINAL STUDY

This longitudinal study investigates differences in perceived work characteristics and job strain as a function of employment status. The study examines the effects of a change from involuntary temporary to permanent status ( N = 75) compared to staying permanent ( N = 257), as well as comparing temporary contract and permanent contract employees at Time 1 and a second-wave comparison that included new temporary contract employees ( N = 92) and new permanent contract employees ( N = 34). Results suggest that temporary employment status is associated with negative and positive consequences. On the negative side, temporary status reduced perceptions of job security and participative decision making, which had deleterious effects on job strain. On the other hand, temporary employees had fewer strain-inducing role demands (in particular, lower role overload). The net effect was that temporary employees had lower job strain, which analyses suggested was due to indirect effects of the lower role demands.