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The romance of human resource management and business performance, and the case for big science

University of Sheffield, Institute of Work Psychology and ESRC Centre for Organization and Innovation, t.d.wall{at}sheffield.ac.uk

Stephen J. Wood

Institute of Work Psychology, School of Management, and ESRC Centre for Innovation and Organisation, University of Sheffield, s.j.wood{at}sheffield.ac.uk

It is often assumed that research over the last decade has established an effect of human resource management (HRM) practices on organizational performance. Our critical assessment of existing studies finds that, although collectively they have opened up a promising line of inquiry, their methodological limitations make such a conclusion premature. We argue that future progress depends on using stronger research methods and design that, in turn, will require large-scale long-term research at a level of magnitude that probably can only be achieved through partnerships between research, practitioner and government communities. We conclude that progress so far justifies investment in such big science.

Key Words: company performance • high performance work organization • high performance work systems • human resource management • organizational performance

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