Do organizational climate and competitive strategy moderate the relationship between human resource management and productivity?

Andrew Neal*, Michael A. West, Malcolm Patterson

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

This study examined whether the effectiveness of human resource management (HRM) practices is contingent on organizational climate and competitive strategy. The concepts of internal and external fit suggest that the positive relationship between HRM and subsequent productivity will be stronger for firms with a positive organizational climate and for firms using differentiation strategies. Resource allocation theories of motivation, on the other hand, predict that the relationship between HRM and productivity will be stronger for firms with a poor climate because employees working in these firms should have the greatest amount of spare capacity. The results supported the resource allocation argument. © 2005 Southern Management Association. All rights reserved.

Original languageEnglish
Pages (from-to)492-512
Number of pages21
JournalJournal of Management
Volume31
Issue number4
DOIs
Publication statusPublished - Aug 2005

Keywords

  • competitive strategy
  • employee motivation
  • human resource management
  • organizational climate
  • employee productivity

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