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The effects of human resource practices on firm growth

Ilias Vlachos
- 01 Jan 2009 - 
- Vol. 4, Iss: 2, pp 17-34
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TLDR
In this article, the authors surveyed HR managers and recorded their perceptions about the links between HR practices and firm growth, and found that compensation policy was the strongest predictor of sales growth.
Abstract
Although the connection between firm growth and labour is well documented in economics literature, only recently the link between human resources (HR) and firm growth has attracted the interest of researchers. This study aims to assess the extent, if any, to which, specific HR practices may contribute to firm growth. We review a rich literature on the links between firm performance and the following HR practices: (1) job security (2) selective hiring, (3) self-managed teams (4) compensation policy, (5) extensive training, and (6) information sharing. We surveyed HR managers and recorded their perceptions about the links between HR practices and firm growth. Results demonstrated that compensation policy was the strongest predictor of sales growth. Results provide overall support for all HR practices except of job security. Eventually, selecting, training, and rewarding employees as well as giving them the power to decide for the benefit of their firm, contribute significantly to firm growth.

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References
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Book

Statistical Power Analysis for the Behavioral Sciences

TL;DR: The concepts of power analysis are discussed in this paper, where Chi-square Tests for Goodness of Fit and Contingency Tables, t-Test for Means, and Sign Test are used.
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TL;DR: The Japanese companies, masters of manufacturing, have also been leaders in the creation, management, and use of knowledge-especially the tacit and often subjective insights, intuitions, and ideas of employees as discussed by the authors.
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Estimating Nonresponse Bias in Mail Surveys

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Inequity In Social Exchange

TL;DR: The concept of relative deprivation and relative gratification as discussed by the authors are two major concepts relating to the perception of justice and injustice in social exchanges, and both of them can be used to describe the conditions that lead men to feel that their relations with others are just.
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Estimating Nonresponse Bias in Mail Surveys

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